February 2012
Business news Montenegro Wants to Reduce Food Imports During 2012, the Ministry of Agriculture and Rural Development of Montenegro wants to reduce the number of food products that are imported, and to stimulate the production of meat, milk, cereals and animal feed. IN addition to this, Montenegro should try to realize some of its great opportunities in the European market for wine, meat, meat products, ham, and various types of cheeses, fish, vegetables and fruit. The ministry believes that producers need further resources in terms of refrigeration and storage. This is something that companies often complain about, but that can easily be solved by using the warehouse space of companies that have gone out of business. Source: www.mpr.gov.me
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Ready for a Green Economy By basing the development of Montenegro on the fact that it will receive most of its energy from renewable sources and through the application of energy efficiency mechanisms, it shows that Montenegro is totally ready to implement the basic guidelines of the EU energy-climate package. Montenegro, as a developing country, has no obligation to reduce pollution levels, but it does have to define the way that it intends to take over the energyclimate package. Montenegro is keen to be one of the first countries to implement the concept of a green economy. Source: www.mrt.gov.me
Privatization Plan 2012 The Government of Montenegro adopted the Privatization Plan for 2012. The Plan contains companies planned to be privatized either through public tender or to be put on lease. The following companies will be privatized by public tender: “Pobjeda” JSC Podgorica, “Montecargo” JSC Podgorica; “Montenegro airlines” JSC Podgorica, “Kontejnerski terminal i generalni tereti“ JSC Bar; “Željeznička infrastruktura Crne Gore“ JSC Podgorica (manteinance), “Jadransko brodogradilište“ JSC Bijela; “Zora” JSC Berane; HG “Budvanska rivijera“ JSC Budva, HTP “Ulcinjska rivijera“JSC Ulcinj; “Institut crne metalurgije“ JSC Nikšić i Fabrika elektroda “Piva“ Plužine. The former military locations and facilities planned to be put on lease by applying the model of private-public partnership are the following: “Ada Bojana” Velika plaza, Bjelasica-Komovi, “Montepranzo-Bokaprodukt” JSC - Tivat, “Pošta Crne Gore “ JSC Podgorica, military barracks “Orijenski bataljon” – Kumbor; Island “Mamula”. Some military-touristic complex are yet to be evaluated, such as: complex “Valdanos”, Ulcinj, “Ostrvo cvijeća” and land “Prevlaka” - Tivat, “Bigova” Trašte, Kotor, etc. Source: www.savjetzaprivatizaciju.me
Montenegro Became a Member of WTO Montenegro became the 156th member of the World Trade Organization. During a Ministerial Conference, on the occasion of the Montenegrin accession to WTO in Geneva, the Prime Minister of Montenegro said that Montenegro was walking firmly towards integration into the European structure. This was also confirmed by the recent decision of the European Council to open negotiations with the EU in June 2012. The formalization of Montenegro’s membership in WTO is another important and successful step towards its integration into modern international markets. Source: www.mek.gov.me
Montenegro has been Added to the Existing List of 53 Eligible Countries for US H2 Visa Programs The U.S. Citizenship and Immigration Services (USCIS), in consultation with the Department of State, have published a list of 58 countries whose citizens are eligible to participate in the H-2A and H-2B programs for 2012. Haiti, Iceland, Montenegro, Spain and Switzerland have been added to the existing list of 53 eligible countries for visa programs for the first time this year. The H-2A visa program allows U.S. employers to bring foreign workers to the U.S to fill temporary agricultural positions while the H-2B visa program enables U.S. employers to offer employment to foreign nationals for temporary non-agricultural positions. Source: www.balkans.com
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Business news Montenegro and Albania have Strengthened Economic Cooperation and Signed Agreement on Transport Montenegro and Albania will enhance their cooperation in the sector of economy, but also in other areas, as their shared path of the EU integration is ensured by the cooperation. The two countries signed an agreement on a motorway connecting Montenegro’s town of Plav with capital city Podgorica, good portion of which goes through Albania. This project showcases good cooperation between the two states and it should be deepened through other economic projects, such as using the resources from the bordering Lake Skadar and Bojana River. The two countries should continue and enhance their cooperation, noting that both have excellent potential for tourism, in particular emphasizing the future importance of Prokletije Mountains that border the two states. Source: www.isria.com
Establishment of Payment Operations between Montenegro and Serbia The Montenegrin Prime Minister appealed to the Central Banks of Montenegro and Serbia to come up with an agreement that would enable the establishment of direct payment operations between the two countries, thus eliminating one of the biggest business obstacles. During the assembly of the Serbian-Montenegrin Business Club in Podgorica, both the Montenegrin and Serbian prime ministers invited businessmen from the two countries to help in strengthening the cooperation. The establishment of such payment operations would reduce the commission charged by banks. Source: www.balkans.com
Montenegro Receives €12 for Strengthening of Public Administration Montenegro can count EU aid worth €12 million. It has been donated by the IPA program for the strengthening of public administration and the judicial system and for supporting basic rights in 2012. The European Commission has initiated aid programs worth a total value of €1 billion; €790 million of which provides individual support to countries, while €210.5 million is intended for projects relating to cross-border cooperation. Most of the funds for individual support will be given to Turkey (€232.9 million) and Serbia (€178.5 million). Other countries that will also receive funds include: Bosnia and Herzegovina (€91.3 million), Albania (€82 million), Kosovo (€62.9 million), Croatia (€39 million), Macedonia (€28.9 million) and Iceland (€26.5 million). Source: www.balkans.com
Montenegro’s Government Adopts the PEP Montenegro’s government adopted the pre-accession economic program (PEP), a fiscal surveillance procedure. PEP aims at preparing EU candidate countries for participation in multilateral surveillance and in economic policy co-ordination procedures that are currently in place in the EU as part of the Economic and Monetary Union. The priority goal in the medium-term is to secure conditions for FDI growth. This can be achieved by upgrading the economy’s credibility on the basis of fiscal and financial stability. Montenegro’s PEP 2012-2014 expects GDP growth to be between 0.5-2% in 2012, between 1.5-3.5% in 2013 and between 3.5-4% in 2014. It is planned that public expenditure, currently at 43%, will be reduced to 38% by 2014, and that a budget surplus of 1.03% of GDP will be seen in 2014, along with a decline in the trend of public debt which is expected to reach a level of 42.9% in 2014. A less optimistic scenario envisages a small reduction in public expenditure, to 40.2% in 2014, a decline in the public finance deficit to 1.7%, and a decrease in the public debt to 47.4% in 2014. Source: www.mek. gov.me
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February 2012
Montenegro at the Tourism Fair “Travel Turkey Izmir” This year’s tourism fair, “Travel Turkey Izmir”, was held for the fifth time in the third largest city in Turkey. The fair took place between the 8th and 11th of December, and included over 600 exhibitors from Germany, Austria, Azerbaijan, China, Indonesia, France, Croatia, India, Netherlands, Great Britain, Kosovo, Malaysia, Slovenia, Tunisia, Jordan, Greece, Montenegro, and Turkey. It was the first time that Montenegro took part in this event as an exhibitor. Montenegro was represented at “Travel Turkey Izmir” by the Tourist Organizations of Bar, Budva and Ulcinj, Podgorica City & Crna Gora Hotels, HTE Ulcinj Riviera Hotel, the Hotel Mediterranean from Ulcinj and the Tourist Agency Adria DMC from Budva. Visitors were mostly interested in the natural beauty of Montenegro. Source: www.pkcg.org
EIB Considers Loaning €50 Million Credit Line to Montenegrin SMEs The European Investment Bank (EIB) has said that it is considering lending €50 million to finance small and medium-sized projects in the fields of economics, energy and environmental protection, and tourism in Montenegro. In a public statement, the EIB announced that projects to be carried out under this umbrella would primarily be carried out by SMEs, as well as by public sector authorities and a variety of different sized entities. The aim of this initiative, which is worth €100 million, is primarily to give SMEs and public sector authorities access to long-term funds at affordable interest rates. The project is being promoted by the Investment and Development Fund of Montenegro. Source: www.wbif.eu
Hundred Building Permits Issued in 2011 The Ministry of Sustainable Development and Tourism of Montenegro issued about a hundred building permits in 2011, for the most significant investment projects in Montenegro - small hydro power plants (SHPPs) and hotel and tourism facilities. Indicative value of projects for small hydro power plants on rivers Crnja, Bjelovićka and Bistrica, for which in the last 14 months building permits have been issued, or are in the process of issuance, amounts almost €48 million. In addition to SHPPs, significant investment project are related to reconstruction of building of hotels. The total value of future investments amounts near €150 million. Thus, in 2011 three building permits were issued for hotels in Petrovac, Podgorica and Tivat worth €43.847.370, while in January this year one permit was issued for a condo-hotel in Petrovac worth €7.771.075. Also, two additional requests for construction of hotel capacities in Petrovac and Budva (€97.909.391) are pending. It is important to emphasize a three-year work on eliminating business barriers in the area of spatial planning and construction. Unnecessary procedures have been cancelled, time required for issuance of building permit shortened and collection of fees eliminated or brought to reasonable extent. Now, there are only two procedures and the term for obtaining permit is 105 days. Source: www.portalanalitika.com
The Netherlands Invests € 1.7 Million in Small Companies
IPA Cross-Border Programme
Over the past four years, the Dutch government has invested €1.7 million in the development of small and medium-sized enterprises in Montenegro through the programs of TurnAround Management (TAM) and Business Advisory Service (BAS).
The Second Call for proposals in the frame of the IPA Cross-Border Programme Croatia-Montenegro was launched on 5th December 2011. The deadline for submission of the proposals is March 5th, 2012. The priority measures under this Call are the following:
A total of 410 projects have been realized during the past nine years, out of which 204 projects have been financed by the Dutch Government; over the last four years they have paid for the services of 120 consultants. Companies that deal with the production of food and beverages, tourism and civil engineering have all participated in the program. As a result, their total turnover has increased by 57 % and the number of workers has increased by 38%. Source: www.balkans.com
(1) Joint actions for environment, nature and cultural heritage protection (2) Joint tourism and cultural space (3) Small cross-border community development projects The overall indicative amount of € 2,430,000 is made available for financing actions under this Call for Proposals.
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