Business
January 7, 2018 - In the realization of the construction project for the nautical-tourist center Porto Montenegro in Tivat, since its inception in the summer of 2007 until the end of September 2018, Adriatic Marinas invested a total of 551 million euros, the Montenegrin Government claims.
06 January 2019 - On Friday, January 4, Aleksandar Kapisoda, a German of Montenegrin origin, presented the new digital currency – perper, at the Consulate General in Frankfurt.
Kapisoda, an Internet communications engineer and digital technology scientist at a German pharmaceutical company, decided to "resurrect the currency of the Kingdom of Montenegro in a form appropriate for the 21st century" and to deliver his intellectual property as a gift to Montenegro, as reported by the news agency “Pobjeda”.
This project was dedicated to the anniversary of the Christmas rebellion, according to the Diaspora Cooperation Council.
The project by Kapisoda – perper digital currency, is equivalent to bitcoin, or online payment solution or method.
"The main wish of Aleksandar Kapisoda is to use the cryptocurrency perper for those transactions of the diaspora which fund humanitarian and social projects that would benefit the people of Montenegro. However, if the currency gets accepted by a larger number of users, he agrees that the currency can be used for business transactions such as direct investments in the economy of Montenegro," they stressed from the Council.
With this project, Kapisoda has given his support on the path of digitisation to the people of Montenegro, which paves the way for business in the digital world, say the representatives of the Council.
General Consul Karadžic is pleased that the first Montenegrin cryptocurrency saw the light of day on the anniversary of the Christmas Insurrection.
Source: Investitor
The creation of a domestic cigarette brand would be significant for the further development of the tobacco industry in Montenegro, said the Executive Director of the New Tobacco Combine Podgorica (NDK), Savka Darmanović. She spoke about the plans of the company for 2019, among which is the increased production and purchase of tobacco from individual producers, as well as the launch of new capacities and the opening of 90 jobs.
"Since the end of September, we have produced six cigarette brands. We continue with the introduction of new brands, and we are working on the further expansion of the assortment. All three production lines, one for producing king size cigarettes, another super slim and third for the production of a cigarette filter, are operating in the installed capacity. Production is carried out concerning the standards of the profession, established norms and fulfilling the regulatory obligations that the new management has set as a priority task. Precise records and cost monitoring, planning, performance measurement and production efficiency with the implementation of new software solutions are integrated into the modern system of work organization and quality management," says Darmanović.
As far as employment is concerned, she added that 56 domestic workers work in NDK, of which 80 percent are in the production department.
"Equipment at the factory is modern, new and therefore demanding to handle. Due to this, BMJ industries occasionally engages their workforce in the process of installing production lines, commissioning, testing and production, as well as training of domestic workers for operating the systems. The success of employees in production is continuous on production lines, but also in the organization of production in all phases," she said.
Darmanović said that the number of employees in this year will increase, because it is planned to build another facility for the primary production.
"Thus, by building the second phase and putting into operation the primary production hall, this number will be around 90. In this plant, tobacco will be purchased, processed and prepared for the secondary production. Currently, the purchased tobacco is sent for processing outside Montenegro. Activation of the planned plant will also create conditions for the processing of tobacco producers from the region, which will enable an increase in production and lower costs, and thus increase revenues to the company. The production process will be rounded up in financial and technological terms," she announced.
According to her, depending on the business plans and the situation on the tobacco market, it is possible to introduce and shift work for additional production, which would also employ the new workforce.
"Due to the free business zone of NDK, the benefits to investors are also numerous, especially for those oriented to exports. It is extremely important that, on the example of such investments, with significant effects of transfer of technologies and knowledge and with direct additional employment, we include domestic companies, small and medium enterprises as subcontractors. By realizing their services and products, they additionally increase their capacities and placements by improving the overall business and contributing to the development of the economy as a whole," said Darmanović.
According to the data of the competent service, out of 45 local producers, NDK bought 39,000 kilograms of tobacco worth 75,000 euros.
"The basic plans of NDK have so far been focused on the European and the Middle East markets, of course, not limiting exclusively to the mentioned destinations. Considering the quality cigarettes of 20 brands and recognizing them as such, the distribution and market positioning have been facilitated from the very beginning. In addition to exports and employment, it would be good to create a home-grown brand of cigarettes, which is very important for the further development of the tobacco industry in Montenegro. We are also planning to intensify the efforts of services and management at the beginning of this year aimed at increasing the production and purchase of tobacco from individual producers. Management intends to continuously create and improve working conditions, educate employees and provide opportunities for further advancement and improvement, "said Darmanović.
Text by Vikend novine, on January 5th 2018, read more at CdM
The construction of the main bus station at Šištat in Igalo should begin this year.
The construction of a new bus station and various locations where it should be built has been discussed for more than ten years - projects and tenders were made and then cancelled.
"We finally left the deadlock. For years, this project has not been realized due to the search for its location and thus precious time was lost. Now geo-mechanical works have been done; the preliminary design has been completed by arch. Eng. Veljko Radulović and now it is submitted for the approval of the state chief architect. After receiving the approval, the design and final announcement of the tender for the selection of contractors would be done," said the president of the municipality, Stevan Katic.
In the capital budget for this year, the allocation of million euros is planned for this purpose, which will not be enough, therefore the remaining budget will be provided for the 2020 budget.
"We remain at the idea of working the first phase independently, because it is a cost-effective project, while the next phase will go through a public-private partnership. It is planned that the road by which the approach to the bus station will be done continues towards the settlement Bare, which will contribute to the development of this part of Igalo. We have already issued several building permits to the company "Vildor", which builds 27 buildings and a hotel in that area.
"By building the bus station, Herceg Novi, i.e. Igalo gets a new resource, not just that facility, but a new road, parking spaces, underground garages, shopping mall and accommodation facilities," said Katić.
Previously, DPS councilors assessed that the location for the construction of the Bus Station at Šištat in Igalo is unfavorable because it is near the health institution Institut Dr Simo Milošević.
The present main bus station was built almost seven decades ago and has the lowest-E category. At the beginning of December last year, the company “D Station” purchased the object for 360k euros from “Vektra Boka”.
We remind that eight years ago the Municipality of Herceg Novi had announced a tender for the construction of the Bus Station, which was submitted by three contractors - two from Herceg Novi and one from Croatia. It was planned to build the station as a private-public partnership. At that time, a preliminary design was made, and the investment was estimated at 7.5 million euros.
Text by Slavica Kosic, on January 4th 2018, read more at Vijesti
January 6, 2019 - Last year, Tivat Airport finished with a turnover of 1.245.999 passengers, which is 10.3% better than in 2017, which was a record year in the operation of this airport. Executive Director of Tivat Airport, Rade Marić, told “Vijesti” that last year in Tivat, a total of 623,543 passengers arrived, while 622,456 people left it. A total of 6,616 aircraft landed and a total of 13,631 take-off and landing operations were carried out on the airstrip of the aircraft, that is, on the runway along Tivat bay. The number of operations completed in 2018 is 7.3 percent higher than a year earlier.
Tivat Airport has been intensively preparing for the upcoming summer tourist and IATA flying season starting on March 31st, which will be characterized by an additional increase in the number of airlines that operate with this airport, as well as the opening of several new destinations that will fly from Tivat. The particularity of the upcoming season is that at Tivat airport next to the regular companies that fly in the season, several new national airline companies will appear that will open their lines for Tivat. Thus, from April 13th, German Lufthansa will fly twice a week to Tivat, on Saturdays from Munich, and on Sundays from Frankfurt. Seasonal flights from London to Tivat have also been announced by the British national airline British Airways.
Text by Sinisa Lukovic, on January 4th 2018, read more at Vijesti
05 January 2019 - Dynamic economic growth is Montenegrin reality in this and the forthcoming years as well. Opening new jobs remain the government’s first economic priority. The Government of Montenegro has been analyzing different scenarios for increasing minimum incomes, vice-president for the economic policy and agriculture minister, Milutin Simović stated.
“Our economy increased by 4.7% in 2017 and 4.8% in the first half of 2018. The growth rate in the 3rd quarter rose to 5% thus positioning Montenegro in the 3rd place compared to the region and the European Union (EU). These results confirmed assessments of the relevant international organizations, such as the IMF, World Bank and credit agencies, which claimed that Montenegro had achieved positive results thanks to the government’s efforts in the process of fiscal harmonization. Fiscal consolidation represented a huge challenge to us, as we did not want to give up on development. It was tough but, we did it,” said Simović.
Such results, he added, have been achieved thanks to a wise and responsible state and economic policy, which was led especially after Montenegro restored its independence, and also based on the achievements in the Euro Atlantic and European integrations.
As for maintaining the economic growth, Simović said there would be many challenges but nothing that Government of Montenegro cannot deal with.
According to him, opening new jobs represents the first priority of the government’s economic policy.
“We have been implementing numerous systematic actions to reach this goal. The number of recruited people in Montenegro has been continuously increasing. In 2018, there were over 25,000 employees more than in 2011, and around 11,000 more when compared to 2016. We expect this trend to continue in 2019. New job opportunities are expected in those sectors in which we invested the most – agriculture and construction, and in all those areas directly or indirectly connected with tourism (in hotels and restaurants, trade, transport and manufacturing output)," concluded Simović.
Recently, the Statistical Office of Montenegro published a report on the unemployment rate, which states that the number of unemployed people in Montenegro reduced by 9.901 persons in 2018.
According to the same data, the unemployment rate was reduced from 22,13% that existed earlier to 17,87%.
“At the same time, survey unemployment rate, according to the Statistical Office of Montenegro (MONSTAT), amounted 14,1 % in the III quarter of 2018, whereas in the III quarter of 2017, it amounted 14,8%. A very encouraging fact is that more than a third of newly employed persons are younger than 30,” said the representatives of the Government.
The lowest unemployment rate is in Kolašin (5,93%), and the highest one is in Plužine (61,28%).
Source: Cafe del Montenegro
03 January 2019 - The most common barriers that businessmen point out are grey economy and unfair competition, non-liquidity or recovery of debts, numerous and high taxes, fees at the local level, high contributions on wages, high capital prices and difficult access to loans, barriers in legal regulation, problems of insufficient flexibility of labor market, lack of professional staff and frequent amendments of regulations, said president of the Chamber of Commerce, Vlastimir Golubović.
“In order to overcome those barriers, we need to provide greater flexibility of labor market, and enable the employer more space to cancel the contract of employment in case the employee fails to justify the reasons for his employment, reduce labor costs, primarily contributions thereof. That will provide higher employment, reduce the grey economy and create new jobs. It will also increase minimum wage and consequently, reduce the unfair competition and increase the budget revenues,” says Golubović.
He thinks 2018 was a successful business year. Montenegrin economy recorded high growth rates.
“The highest contribution to growth was made sectors by tourism and construction. Hence, construction activity, enhanced by investment projects, increased by 31,5%. All parameters in the tourism sector recorded an increase,” explains Golubović.
According to him, exchange of goods with abroad increased too, due to increase in import and export. However, coverage rate of imports by exports is still very high.
“High import dependence of our economy is the consequence of narrow production base and high correlation between the import of goods and tourism. We should also add important infrastructure and investment projects related to the construction of new tourism capacities which are important import generators. The increase of services revenue reflects in the reduction of foreign trade deficit. Also, FDI is another economic growth generator,” said Golubović.
He pointed out that Montenegro was constantly working on improving the business environment.
“Business conditions are relatively favorable, and a great number of investors who are willing to invest in our state confirm it. However, the most recent World Bank report shows that we have to work on improving that environment more and with greater speed. That does not mean Montenegro regressed in that sense; it just means that other economies made faster progress in this segment. But, that is a signal that we still need improvement. First and foremost, in obtaining electricity connection, setting up business through the introduction of online company registration, real estate registration, payment of taxes, and many other areas. Business community requires further implementation of reforms and activities that will contribute to the additional improvement of the regulatory framework for investments and development of entrepreneurship,” said Golubović.
Although there are some areas where it is necessary to improve competitive capabilities of Montenegrin companies, it is obvious that the economy is making a progress in fulfilling the requirements for successful performance at foreign market, EU market in the first place.
“One of the positive examples I can give you is that the food manufacturers who got European export numbers for placing their products at the market with 500 million potential buyers. This is the result of efforts of our manufacturers they put in reaching the standards of high-quality and food safety,” said Golubović.
First man of the Chamber of Commerce says that Montenegro is considered to be an attractive destination for both foreign and domestic investors. That is thanks to the visible potentials in tourism, agriculture, transport infrastructure, energy sector, as well as thanks to numerous possibilities for investments in other sectors, especially in less developed regions.
“Ever since it regained its independence, around €9,2 billion have been invested in Montenegro. EU accession negotiation process means accepting new rules that entail harmonization of domestic legislation with the acquis communautaire. The competitive tax system and a set of encouraging measures for domestic and foreign investors is something that makes Montenegro even more attractive,” concluded Golubović.
Source: Cafe del Montenegro
04 January 2019 - The newly founded Ukrainian airline SkyUp Airlines, based in Kiev, will open scheduled flights from four cities in Ukraine to Podgorica Airport for the upcoming summer of the IATA season.
As announced by SkyUp, they received licenses from the Ukrainian aviation authorities to open routes to Podgorica from Kiev, Lviv, Kharkov, and Zaporizhia. According to the State Aviation Administration of Ukraine, flights from Kiev will be maintained three times per week, while services from Lvov, Kharkov, and Zaporizhia will run twice weekly. The regulator issued permits to the carrier, enabling it to introduce the new routes from March 31 onwards.
The airline said in a press release that the cost of the ticket will be formed using a low-cost model without luggage and additional services. It will depend on the destination and time of buying the tickets.
SkyUp LLC operating as SkyUp Airlines is a Ukrainian charter airline, which began operating in May 2018. SkyUp was launched as a charter carrier but plans to commence scheduled flights next year. It boasts a fleet of three Boeing 737-800s and one B737-700, with orders for three B737 MAX 10 and two MAX 8 aircraft.
Find more information about the carrier at their official website.
02 December 2019 - The previous year was marked by intensive cooperation between the Ministry of Economy and the Government of Montenegro. They worked on system solutions, and on a daily basis, tried to solve the problems encountered by business people.
The Ministry of Economy has prepared a Law on Business Companies that is in the process of harmonisation with the European Commission. The law will allow exemption of the Assembly when it comes to single-member limited liability companies and for multi-member ones will be retained.
"Registration of the company has been transferred from the CRPS (Central Registry of Business Entities) to the Tax Administration, and we do not want to return the centralization to anyone, but to everyone can communicate with the CRPS in their cities. In the next year we will improve electronic services in the part of what is related to the registration of the company, and on the other hand we will train people from the Tax Administration so that citizens can use this service electronically and in the cities where they live," as noted by the representatives of the Government of Montenegro.
The Law on Concessions is an example of good communication between the Government, the Ministry, and the Economy, where through the new solutions the answer to all the shortcomings from the past period was found.
"The Law on Copyright and Related Rights implies more stringent control over the work of the author of music. The amendments to the Law refer to the field of joint exercise of copyright and related rights and harmonization with the 2014/26 / EU Directive on the collective exercise of rights. By adopting these changes, we will significantly improve transparency in the work of organizations for the collective exercise of rights and supervision of their work. The Intellectual Property Office (now as part of the Ministry of Economy) will have to issue a provisional tariff, and this will certainly affect all the problems that were related to the tariff for which the fee had to be paid to the association of music authors," said representatives of the Government of Montenegro.
The draft of the Law on Internal Trade has been drafted, and its adoption is expected after the holiday. In the trade sector that employs 37,000 people, Sunday will be declared non-working through a legal solution, and bylaws will bring solutions for exceptions respecting the tourist season and the basic living needs of citizens.
The Ministry of Economy contributes to the suppression of the gray economy through the adoption of the Law on Inspection Supervision in part relating to supervision in buildings that are not registered for the business activity.
"We are trying to improve the Montenegrin economy from two aspects: by improving the infrastructure, through a project with the Montenegrin Electricity Distribution System to revitalize the distribution network in which it is planned to invest some 90 million euros in the next three years," underlined representatives of the Ministry of Economy.
Telecommunication infrastructure is very advanced. The adoption of the Law on the use of high-speed EC networks is being planned. Thus, there will be space for the cheapening of telecommunication services.
"The Ministry of Economy has supported ten incentive programs. We decided that approximately 1 million 630 thousand euros would be available to the Montenegrin economy in the Ministry of Economy as one unified Competitiveness Facility. The Fund will be permanently open and available 365 days a year where the ministry, besides providing incentives, will also provide non-financial services in terms of developing business plans and assisting in applying as an intermediary to the economy and to all those who can give them financial resources," concluded representatives of the Ministry of Economy.
01 January 2018 - More than 2,1 million tourists came to Montenegro in 2018, with the total profit higher than 1 billion EUR in the first nine months. There have been over 12 and a half million of overnights. The year 2018 was definitely an impressive year, said the Minister of Sustainable Development and Tourism, Pavle Radulović.
“Both pre and post season in 2018 was record. Another impressive fact is that that for the first time in the history of Montenegro, there were million tourists in Montenegrin hotels,” said Radulović.
Taking into consideration the hotels that are being constructed or those that have been planned, we can expect significant expansion of the capacities of high-quality accommodation.
“We are going to keep up with the work on achieving our strategic objective in tourism, and that is making Montenegro high-quality tourism destination. Such results are encouraging and make us happy, but they also oblige us to commit so that trend of growth and progress in tourism continues,” said Radulović.
He points out that Montenegrin winter centers are competitive with the countries from the region thanks to the diversity of offer, quality and prices.
“When it comes to Kolašin, I am sure that, with the development of ski centers and other amenities, it can attract a much higher number of tourists. Also, I think that Kolašin and Žabljak should not be competitive with one another, but with other regional centers. It is important to point out that infrastructure in the mountains is used during summer too. We are continuously investing in winter centers because that way we will provide promotion of different segments of tourism offer, extend the season in the northern part of our state and improve accommodation capacities. All this will be followed by connection with other relevant economic areas, and that will create new jobs,” said Radulović.
As Radulović states, total amount of investments in development and tourism projects is around 214 million EUR.
Asked what the key amendments of the existing Law on on tourism are, Radulović explained that one of the key objectives of that Law was minimizing all forms of the grey zone in tourism, along with raising the level of consumers protection.
“Although full controls have been carried out successfully during the season, the practice has shown that it is necessary to amend specific segments so that the Law can be applied more easily. The domain of tourism and hotel industry is very complex, and it is directly or indirectly related to other domains. That is why we had to amend specific items and define them more clearly,” explained Radulović.
One of the challenges tourism industry is faced with is the lack of staff.
“The highest deficit refers to the first and the second education level, where the demand exceeds the supply by even up to 40%. Increase in accommodation capacities and diversification of the offer in tourism require new staff and, in that context, there is training for professional education and acquiring qualifications that will satisfy specific requirements and types of offer in the tourism sector. In the forthcoming period, we will be working on improving the image of professional occupations via some promotional campaigns,” says Radulović.
Source: Cafe del Montenegro
31 December 2018 - Azmont Investments has invested 369.4 million EUR in Portonovi Resort so far, while the total amount of investments is estimated at 650 million EUR. Currently, 1900 employees are engaged in the company and on the construction site.
Data on the realization of tourist investments in Herceg Novi were submitted to Azmont investments and OHM Mamula Montenegro, which has made 2.1 million EUR on the realization of Lastavica from the planned 15 million.
It has been estimated that most of the projects on the coast are carried out following the obligations under the contracts and Investment Programmes.
In Kumbor, at the port of Portonovi Resort, work on the walls, waterproofing, shafts, earthworks, concrete brickwork and tile works are underway, as well as the works on parquet arrangement, ceramic tiles around the pool, stone paving, paving the main road, balustrade and gates. Also, procurement of furniture and equipment for outdoor space, installation of outdoor lighting, greening (irrigation, trees and grass), supply and installation of doors and windows for exhibition spaces, facade production, masonry works in the interior are already being done. There is also procurement and installation of metal and rolling shutters, mechanical, electrical and plumbing services, sewage services, supply and installation of sprinklers, production of hydrant network, installation of heating and cooling systems, ventilation and smoke extraction, installation of video surveillance and building management system.
The completion of the construction of the heating and cooling plant, the main project of the traffic and technical infrastructure and the main project of the One and Only hotel, is expected to be completed soon in Portonovi Resort.
The contract on a long-term lease of the former military barracks "Orjenski bataljon" was signed on July 10 2012, and came into force with the signing of the Protocol on handover, on February 8 2013.
From the company OHM Mamula Montenegro they informed that from the planned 15 million EUR for the adaptation of the fortress Mamula on the island of Lastavica so far, 2.1 million EUR had been spent. The conservation programme and the architecture project to the Directorate for the Protection of Monuments are being consented, and the main project is being revised. An underwater biodiversity study has been carried out, the elaboration of the Environmental Impact Assessment is in the final stage. Also, works are underway on the model room of the future hotel, and the main project of the underwater cable from the cape Arza to the island Lastavica is completed.
The agreement on a long-term lease of the site Lastavica with Mamula fortress, posted on February 23, 2015, has been leased for 49 years, as well as the reconstruction of the Mamula fortress in a unique hotel of a museum character, with a category of 5 stars, following conservative conditions.
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07 Mar 2018, 08:08 AMWelcome to Total Montenegro News!
Interview of the week
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Ranka Vukasovic Botica on Montenegro as a Maritime Country
