November 11, 2019 - Budvanska Rivijera Hotel Group generated revenue of €4,88 million at the end of September this year, the report on the operating performance of the company shows.

Limited liability company, which encompasses Palas and Castellastva hotels in Petrovac, Aleksandar and Mogren in Budva, as well as tourist settlement Slovenska plaža, made great results during the main season despite a portfolio of investments in internal restructuring.

Operating income amounted to €20,05 million in the first nine months. Around €18,44 million were used for the sale of capacities and services in five hotels.

In the same period, expenses amounted to €15,33 million. Around €5,69 million were related to employees’ salaries, €3,76 million went for the material, amortization required €1,83 million and more than €4 million related to other operational expenses.

Since other business activities brought another €174.165, Budvanska Riviera finished the third quarter with the final €4,88 million.

The company’s total assets amounted to €140,78 million in this period.

The company earmarked €1,65 million for the short-term financial arrangements – €12,54 million for the cash and €1,41 million for stocks.

The current initial capital is worth €55,04 million and is divided into more than 8 million shares.

Deferred tax liabilities amount to €7,96 million whereas retained earnings reached €9,76 million.

On 25 June, the majority shareholders of Budvanska Riviera HG gave green light to restructuring project. A new limited liability company was established – Sveti Stefan hotels, encompassing Sveti Stefan and Miločer hotels.

Text by CDM on November 11, 2019, read more here.

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November 10, 2019 -  Toll tax for the priority Bar-Boljare motorway section will probably range from 3 – 3.5 euro, executive director of the Monteput company Mr Jonuz Mujević told Pobeda daily.

“The exact amount of the toll has not been specified yet, but it will range from 8 to 12 cent per kilometer. The final decision on the toll tax will be made by the Government,” said Mr Mujević, adding that the Government is supposed to determine the exact amount in a year.

According to him, it [the Govt] will most likely opt for the lower rate of toll tax – 8 cent/km.

Mr Mujević continued: “For now, the Government believes that Monteput should collect toll taxes and perform complete maintenance of the highway, but we are waiting for the adoption of the Road Law when we’ll know everything in detail,” he noted.

Text by CDM on November 9, 2019, read more here. 

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Airports of Montenegro is welcoming yet another German Airline.

Well-known company Condor Airlines will once again fly to Montenegro after a hiatus of several years, confirms the management of Airports of Montenegro.

Condor will begin the seasonal route Frankfurt-Tivat as of 1st May next year.

The German airline will fly an A320 once a week, on a Friday, until the end of the IATA summer season on 23rd October. Between 26th May and 13th October, there will be an additional weekly Tuesday flight.

Condor until recently was part of the now-bankrupt international tourist giant Thomas Cook. However the German airline, specialising in tourist flights, survived the collapse of its parent company, securing the necessary fresh capital and continuing its operations with support from the  Berlin government. Condor Flugdienst Gmbh began operating in 1955, and currently has a fleet of 42 aircraft and approximately 4,900 employees. The company operated seasonal flights to Tivat at the end of the 1980s, and briefly returned to Tivat Airport in summer 2013.

This year also saw regular seasonal flights to Tivat from Frankfurt, Munich, and Dusseldorf operated by German national carrier Lufthansa and its low-cost subsidiary Eurowings, as well as from Leipzig, Munich and Hanover with Montenegrin national carrier Montenegro Airlines. This testifies that the German market, the most significant inbound market globally, has shown a substantial increase in interest in Montenegro and what it has to offer to tourists.

According to unofficial reports, the management of Airports of Montenegro is working intensively to establish a year-round flight connection between Podgorica and Zagreb and is currently in negotiations with airlines on the issue.

November 9, 2019 - EU accession isn’ Montenegro’s only interest. We want to be fully ready for the membership and meet all the criteria, especially in the rule of law, as it is the foundation of the European quality of life. That’s our top priority, said vice-president of the Government, Mr Zoran Pazin, during the meeting convened as part of the ongoing Strategic Dialogue on the Western Balkans with the officials of the Western Balkans, EU member states and European institutions, organized by the World Economic Forum in Geneva.

Mr Pazin pointed out that the essence of the European policy in Montenegro was reaching the higher living standard and developing society which would function by rules applied in the most developed European democracies. He added that the total transformation of the society was achievable but only through the unhindered process.

“Never in its long history has Montenegro managed to get hold of something easily. Therefore, we don’t expect that to happen now. On the contrary, we are working hard on developing a society where European rules and standards will apply. However, we expect our European partners to recognize our real progress”, said Mr Pazin.

While talking about the reserved view on the EU enlargement policy, Mr Pazin said that considering some more efficient way of functioning within the Union was completely legitimate. He said that the integration process should continue as it “is in the interest of both the EU and WB”. Any other scenario would leave room for the increase of anti-European and populist forces.

The idea of the so-called reversibility principle is not a sustainable solution, states Mr Pazin, considering the already established principles of international law.

Mr Pažin emphasized Germany’s important role in the promotion of European values. He expressed gratitude for the support members of Višegrad group pledged for Montenegro. In that context, Mr Pazin stressed that so far the German principle of Euro-integration had produced concrete results and that such relations between the EU and other countries aspiring to be part of it should continue.

Mr Pazin reminded that one of Montenegro’s top priorities was strengthening relations with neighbors. He said that the “mini Schengen” initiative would lead to high-quality EU integration.

Mr Pazin said that it was very important that every country in the EU accession process should be enabled to make progress in accordance with reform results and other successes.

Text by CDM on November 8, 2019, read more here.

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November 8, 2019 - French president, Mr Emmanuel Macron, raised eyebrows with his statement that NATO “is experiencing brain death“ and that Europe “stands on the edge of the precipice”. German Chancellor, Ms Angela Merkel, was surprised as well and said he had used drastic words and she rejected his assessment. Commenting on Macron’s statement, president of the European Movement in Montenegro, Mr Momčilio Radulovic, says that Macron’s interview for The Economist cannot be seen from Montenegro’s point of view, and not even from the point of view of the enlargement policy.

Mr Radulovic explains that his interview is a very complex analysis of so far global policies, economic and security policies to development policies and another set of policies related to contemporary international relations.

“This text is so far away from something that should be regarded as short-term. We shouldn’t draw hasty conclusions about Macron’s definitions”, says Mr Radulovic.

Answering the question about Macron’s views, Mr Radulovic says that his views are often controversial, but also inspirational and make you think carefully about the modern world, the future of Europe and international relations.

“However, his messages are often contradictory, or, at least, strange and distorted in some way, although his conclusions are based on accurate premises. Are his dislocated conclusions fruit of his intention or wrong assessment? We’ll see. He was also contradictory when he referred to Balkan countries and enlargement policy”, says Mr Radulovic.

Mr Radulovic adds that the question is why enlargement policy has to be regarded separately from the general parallelism principle.

“If we analyze other parts of his interview and a whole set of remarks he made regarding the enlargement policy, we tend to get the impression that Mr Macron used question-related to WB integration to address a whole set of other questions which are nor relevant to our country and our citizens”, says Mr Radulovic.

That double-standard policy does not encourage us or other countries in the region and their leaders.

What is more important is what effects such profound Macron’s statements produce. Will they contribute to the further consolidation of the EU or further divisions?

Asked to comment on Ms Merkel’s reaction to Mr Macron’s statements, Mr Radulovic says that the French leader was expected to show a greater level of political wisdom.

As far as Montenegro is concerned, Mr Radulovic says it is important to read what Mr Macron’s does and thinks and even assist him in his attempts to address specific problems. However, it is far more useful for us to identify with the messages conveyed by Mr Mike Pompeo and Mr Heiko Mass.

Text by CDM on November 8, 2019, read more here.

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The first nine months of this year saw the Port of Kotor post a profit of 1.05 million euros, 50.5% higher than the same period last year, reported the Chair of the Board Branko Ivanović to Pobjeda, adding that this was a record increase in profits.

"The company's revenue for the first nine months amounted to 2.85 million euros, 32.8% up on the same period last year," stated Ivanović.

Operating expenses for the Port of Kotor in the first three quarters amounted to EUR 1.79 million, which is a 27% increase due to the concession contract for the use of the port.

The Port of Kotor is the concessionary for the commercial port, and the agreement on the primary concession with the Government was signed on 25th March, on the basis of a decision of Government of 27th December last year.

The concession is for a period of 12 years, and a business plan for that period envisages investment in infrastructure and superstructure of 5 million euros. After the signing of a concession contract with the Kotor company, the Ministry of Transport in March announced that in implementing the investment plan, conditions would be created to be able to welcome the newest cruise ships, without any restriction on length or draft, and the capacity of the marina would be increased. In addition, the quality of port services will also be improved. Earlier, it was announced that the concession agreement would benefit the state, municipality, citizens, and above all, those who work in the port itself. It was also stated that it was of the utmost importance to remove any safety risks and enable improvements, investment, development, safe passage for vessels, and comfort for travellers and tourists.

Port of Kotor - photo Boka News

At the end of August, the Port of Kotor applied to the Ministry of Sustainable Development for the issuance of urban and technical conditions to build an independent buffer for vessels and two independent berths for buoy mooring in the operational space of the Port, in order to improve the technical and technological elements necessary for welcoming passenger vessels. The Port of Kotor Company made a net profit last year of some EUR 801,200 and is one of six joint-stock companies that paid dividends to shareholders last year.

In June, a meeting of shareholders in the Kotor company took the decision to distribute half of its profits to the owners in the form of a dividend. The Municipality of Kotor holds 56.97% of the Port’s shares, PIO Fund 17.5%, and the Employment Bureau 5.87% of the company's capital.

A major environmental incident occurred on the ferry “Grbalj”, which belongs to the company “Pomorski saobracaj” from Herceg Novi, around 2.30 pm yesterday, when about 400 liters of diesel fuel spilled onto the deck from a damaged tank of one of the tankers that were on board.

According to unofficial information by "Vijesti", most of the spilled fuel ended up in the sea, but this did not provoke the reaction of the Navigation Safety Inspectorate of the Ministry of Transport and Maritime Affairs of Kotor, which is responsible for preventing and punishing marine pollution from vessels.

“Vijesti” could not reach the General Inspector Zeljko Lompar, who did not respond to phone calls and text messages, and the management of the company “Pomorski saobracaj” said that the company’s CEO Dejan Ban was absent and that they would try to contact him and answer all questions throughout the day.

Ferry in the bay

The Maritime Safety Directorate of Montenegro was also informed about the environmental incident at the ferry “Grbalj”.

According to unofficial information, the Mercedes tanker with a semi-trailer ice-truck boarded the Grbalj ferry in Lepetani. Due to the unfavorable angle of the boarding ramp on the deck of the ferry, which is caused by high sea level, the tanker while boarding the boat, hooked the ramp with its fuel tank and punched it, which caused about 400 liters of diesel fuel to be spilled on the deck of "Grbalj", and most of it finished in the sea.

The ferry immediately sailed from Lepetani and, arriving in Kamenare, disembarked all the cars except the damaged tanker. The ferry "Grbalj" then immediately sailed again and stopped in the middle of the southern part of the strait Verige between Lepetani and Kamenari, where the ferry sailed for a long time while, according to the eyewitnesses, the crew washed the deck and flushed the spilled fuel from it into the sea.

It was all accompanied by the strong odor of diesel, to the extent that it was felt by the residents of the houses in the highest parts of Lepetani. The ferry then again arrived in Kamenari, where the tanker was unloaded from the ship and parked on the shore because, due to the penetrated fuel tank, it could not continue the journey, and the crew continued to clean and wash the deck of the ferry.

Navigation safety inspector Zeljko Lompar told “Vijesti” that he had failed to obtain material evidence that any amount of spilled fuel from the ferry had reached the sea.

Lompar secured himself by saying that he was speaking on the basis of preliminary verbal statements by the crew of the ship and those responsible from the company “Pomorski saobracaj”, that is, the driver of the damaged tanker, and specified that only about 40 liters of diesel spilled onto the deck of the ferry “Grbalj”, even though the tanker’s driver claimed that there were approximately one hundred liters of fuel in the damaged tank.

Lompar says that the spilled 40 liters of diesel were immediately collected by the crew of the ferry, scattering the fuel with sawdust and gathering it with rags, and that, according to them, not a single drop entered the sea.

When asked why the ferry sailed for more than an hour in the midst of the strait Verige, while the cleaning operation took place, or why, if there was no spillage of the fuel in the sea, the ferry was not cleaned at the port in Kamenari, Lompar just said that "the ferry could not be cleaned along the coast."

He added that he would receive the official written statements from all the actors of the incident, based on which he will then be able to make his official inspection report.

Text by Sinisa Lukovic, on November 7th, 2019, read more at Vijesti

November 8, 2019 - National Park Durmitor has had the most successful tourist and business year so far. Around 270.000 tourists are expected to visit Durmitor by the end of the year, it was said in the Social and Economic Forum of the National Park.

Director of National Parks of Montenegro, Mr Elvir Klica, said that national parks had recorded a record season.

“Apart from Durmitor, Skadar Lake national park also recorded excellent results. Financial parameters are not our priority but rather the protection of natural and cultural values of parks”, said Mr Klica.

Mr Klica added that the goal of the Social and Economic Council was to carefully plan the forthcoming winter season, together with representatives of institutions, local tourist organizations, NGO sector and representatives of the tourism industry.

“The forthcoming season is very important as the Expo Dubai is ahead. That will be a great opportunity for us to promote the beauties of our parks and this National Park. We are going to attract other markets, those that aren’t popular here and we are going to encourage them to visit Montenegro. We expect even better results next season. As far as Durmitor is concerned, we expect more than 300.000 visitors”, added Mr Klica.

Mr Klica said that they were going to initiate construction of the third lane and a roundabout at the entrance of the national park, to avoid crowds and pressure during the season.

Director of the Durmitor NP, Mr Tomo Pajović, acquainted the attendees of the forum with the results achieved during the season. He pointed out that visitors came from all over the world.

“Nice weather in September and October increased the arrivals. More than 26.000 visitors tried the Tara rafting experience. That’s 23% more than in the same period last year. This national park is really worth the visit”, said Mr Pajović.

Protection and sustainable development advisor, Mr Veselin Luburić, pointed out that one of the key strategic provisions in the management plans was the improvement of cooperation with the local community and the users of national parks.

President of the municipality of Žabljak, Mr Veselin Vukićević, said that they would reconsider the candidacy of projects related to the reconstruction of infrastructure around the Black Lake, construction of sewerage system, roundabout, parking, as well as new lighting and water supply grid.

Text by CDM on November 7, 2019, read more here.

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The Kotor Municipal Assembly has decided that construction can begin on a pedestrian underpass under the main road to the Old Town.

Councillors took the decision to approve the settlement for civil proceedings in Case No. 622/19, giving the go-ahead for the construction of an accompanying facility for the underpass road - an underground pedestrian crossing under the existing main road, in front of the city walls and the Harbour Master's Office.

The complex project is worth 1.4 million euros, and will be completed within a timeframe of four months.

The underpass design, by Europrojekt Podgorica, was presented at the Municipal Assembly hall, and the contractor will be Kotor firm Briv Construction.

While supporters of the project say that it will resolve congestion issues, views have been voiced that the project is not in compliance with the law.

A total of 13 councillors voted in favour of the construction of the underpass in front of the city walls and Harbour Master's Office, while Ljiljana Popović Moškov from Civic Movement URA voted against, with Ranka Krivokapić, Jovo Suđić and Ljilja Radunović of DPS, as well as Vido Drašković from the Liberal Party abstaining.

Chief Designer Dragutin Dubljević of Europrojekt stated that every detail would be taken care of - from lighting, use of quality materials, provision of lifts and means to ensure full accessibility to persons with disabilities.

November 7, 2019 - Next year, Montenegro will be functioning in a complete financial and fiscal stability, said Minister of Finance, Mr Darko Radunović, adding that he hopes it will be for the middle-term.

While answering the questions asked by the MPs, the Minister said that strong economic growth, increase in employment, strengthening fiscal stability and a stable level of competitiveness of Montenegro’s economy represented the position in which Montenegro would welcome the projected global economic slowdown.

“Growing uncertainty in the international surroundings, led by trading and geopolitical tensions, is one of the reasons we took into consideration while making projections of Montenegro’s economic growth in the next year”, said Mr Radunović.

Estimated economic growth this year amounts to 3,1. The projected growth rate between 2020 and 2022 will be 3%.

“From 2019 to 2022, cumulative nominal GDP growth will amount to 18,1. Real GDP growth will be 12,6”, said Mr Radunović.

He emphasized that the decline in public debt “is expected in the forthcoming period”.

According to the estimates, the budget deficit should amount to 2,5% of GDP at the end of the year.

Mr Radunović pointed out that source budget revenues increased by more than €250 million, owing to fiscal consolidation. Next year, public debt will amount to €3,51 billion, that is, 70,3% of GDP.

Text by CDM on November 7, 2019, read more here.

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