In the Spotlight: Privatization Plan for 2011 The main objectives of privatization are to increase the competitiveness and efficiency of companies, to promote foreign investment and entrepreneurship in all areas, to increase employment and to improve the standard of living. All privatization that is to be carried out in 2011 will be based on the methods of implementation and the type of privatization. The companies that are selected will be adjusted to meet free market requirements which will include the following: the sale of shares and assets by public tender, the sale of shares through the stock exchange, and the sale of shares and assets by public auction. The models for restructuring companies in the area of public utilities will only be defined after the new Law on Utility Activities has been adopted and after a new strategy, aimed at involving the private sector in public utility activities in Montenegro, has been implemented. The Privatization Plan anticipates that, regarding companies that are being privatized by public tender, the resolution of social issues should be included as a contractual obligation. It is also expected that, in such cases, credible guarantees and termination clauses to cover the breach of contractual obligations will also be included. Furthermore, regarding other types of implementation and other types of privatization, with the exception of the stock exchange, the resolution of social issues will also be an essential and compulsory requirement. A public auction procedure will be used for the sale of part assets, shares or stakes in companies, on the basis of prior decisions made by their owners. Decisions on the sale of assets exceeding €50,000 will be subject to approval by the Privatization Council in cases where the state or state funds are the majority owner. Regarding the valorization of tourist locations/ companies through public-private partnership and the sale and valorization of former military assets, the tender commission in charge will conduct the selection procedure, based on decisions made by the Council for Privatization and Capital Projects, by international public tender for the following locations/companies:
Based on a decision brought forward by the Council for Privatization and Capital Projects, the methods for implementing privatization in certain specific companies are presented in the table below: Companies to be privatized by public tender AD "Montecargo" Podgorica ( railway transport)
"Port of Bar" JSC Bar
"Montenegro airlines", JSC Podgorica (air transport)
N.I.G. "Pobjeda" JSC Podgorica (newspaper publishing)
"Montepranzo-Bokaprodukt" JSC, Tivat (agriculture, trade and services)
AD "Zora" Berane (production of dairy products)
JSC "Container Terminals and General Cargo" Bar (railway transport)
HG "Budvanska Rivijera" JSC Budva (tourism- hotels and other similar accomodation)
"Main Post of Montenegro" LLC Podgorica (postal services)
HTP " Ulcinjska Rivijera" JSC Ulcinj (tourism–hotels and other similar accommodation)
"Maintenance of railway vehicles" JSC, Podgorica (railway transport)
" Institute of Ferrous Metallurgy JSC Nikšić (technical research and analysis)
"Railway Infrastructure of Montenegro" JSC Podgorica –Maintenance Unit (railway transport)
Electroda Plant "Piva" JSC Plužine
"Adriatic Shipyard" JSC Bijela (construction and repair of ships)
"Barska Plovidba" JSC , Bar (maritime and coastal transfer of cargo)
Companies to be privatized through trade on the stock exchange Građevinsko Preduzeće JSC „Gorica“ Podgorica (construction industry/civil engineering)
Metalprodukt JSC, Podgorica (repair of household tools)
JSC Papir, Podgorica (wholesale trade)
Montenegrosport JSC,Bijelo Polje
JSC Rudnici Boksita, Nikšić (mining and quarrying)
Pekara JSC , Nikšić
Agrotransport Podgorica,Podgorica (road transport of cargo)
Poliex JSC, Berane (production of explosives)
Berane JSC Berane
Sokara JSC Nikšić
Dekor, Rožaje (production of paper products)
Trgokoop JSC, Podgorica (retail trade)
HTP "Velika Plaža" JSC Ulcinj (tourism) Company to be privatized through sale at auction: "Petoljetka stan" LLC, Bijelo Polje
Sale and valorization of former military assets Military-tourist complex "Valdanos", Ulcinj
Lalovina Headquarters - PKL, Herceg Novi
Warehouse "Kožara" – Nikšić
Warehouse "Dobre Vode" – Bar
Military-tourist complex "Ostrvo Cvijeće" and land "Prevlaka" – Tivat
Lalovina – above the main road - Meljine, Herceg Novi
Shooting Range "KunovoLukovo" – Nikšić
Building Facility UPT "Crnci" – Podgorica
Military-tourist complex "Bigovo" Trašte, Kotor
Warehouse Studeničke Glavice – Nikšić
Motel Šas with Vladimir Farm – Ulcinj
Island Mamula - Herceg Novi
Barracks "Orjenski Bataljon" - Kumbor
Warehouse "Moćevac" - Mali logor, Pljevlja
Barracks “Mediteran”- Žabljak
Warehouse "Rakite" - Herceg Novi
Barracks "Gornji Klinci" - Herceg Novi
Warehouse "Kopita" – Kolašin
Warehouse "Morinj"- Kotor
Valorization of tourist sites/companies through public-private partnership Ada Bojana; Velika Plaža: Site located between Njivice and Herceg Novi; Cove Masline- „Utjeha“ for Cape Odrač in Bar; Institute for Physiotherapy and Rheumatology Dr „Simo Milošević“ Igalo AD; Bjelasica- Komovi Site
Source: Privatization and Capital Investment Council of Montenegro, www.savjetzaprivatizaciju.me
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August 2011
In the Spotlight: Regional Development of Montenegro Prepared by: Mrs. Nina Vujoťević, PhD, Deputy Minister of Economy, Sector for Development The policy aims to achieve harmonious, balanced and sustainable development, whilst also strengthening the economic and social cohesion of the EU. Full membership of the EU, supported by targeted regional policies should ideally show concrete results. The main goal of the regional development policy of Montenegro is to increase the quality of life in the territory of Montenegro. This should be done in such a way as to ensure socio-economic development in accordance with the principles of sustainable development, by creating conditions that will enable and strengthen competitiveness in all parts of the country and by implementing its own development potential. In order to achieve these objectives, the Government of Montenegro, as a candidate country for EU membership in 2010, adopted the Regional Development Strategy for the period 2010-2014.
the way local governments should calculate their development indices has been sent to the Government Commission for Economic Policy and Financial System for consideration. A proposal for a decision to be made by the Partnership Council for Regional Development was also sent at the same time. Simultaneously, the Ministry of Economy, in cooperation with the Union of Municipalities of Montenegro and other EU experts, prepared a proposal for a rulebook concerning the methodology for developing local government strategic development planning. It is anticipated that this will be adopted in the near future.
It is important to mention the Regional Development Act witch came into force in April 2011. The adoption of the Regional Development Act is important for creating opportunities to recognize and encourage the development potential in different parts of Montenegro and also to affirm active project work in areas where there are clearly problems with development. The Regional Development Act is based on the assumption that development must be initiated by the goals, characteristics, attributes and experiences of a local community.
By the end of the year, the Ministry of Economy is expected to make suggestions about other laws that will allow full implementation of the new act.
EU and EU Development founds Development projects supported by EU funds should be part of long-term development programs developed by local communities or by a country applying for EU funds. Thus, the Regional Development Act seeks to promote strong partnerships and cooperation between the levels at which regional development is planned, in order to find the best possible way of maximizing the development potential of the entire national territory. In accordance with the above mentioned, the Ministry of Economy has immediately started to implement and adopt the secondary legislation that relates to the act, now that the act has come into force. Thus, a draft of the regulations regarding
The development of this strategic document will take about six months to prepare, and will provide an important basis for applying for development projects that require funding from the state budget, from EU funds, or from development banks, etc.
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Crnojevica River (Rijeka Crnojevića) St.Stefan island
At the same time, the Ministry of Economy conducted a series of activities within its jurisdiction related to the increase of competitiveness in the areas of local government and in the development of small and medium sized enterprises. Some of these activities refer to strategic plans and to action plans for the introduction of clusters in Montenegro, especially in the northern region of the country. This is one of the most important factors of regional competitiveness that receives significant support from EU funds. Activities conducted by the Ministry In general, during the first year following the adoption of the Strategy of Regional Development of Montenegro, numerous activities have been carried out that represent its successful implementation. In addition to the Ministry of Economy, a very important role in the implementation of the strategy has been played by a variety of other relevant ministries, the Investment-Development Fund of Montenegro, the Employment Agency of Montenegro, the Montenegrin Investment Promotion Agency and by other bodies and organizations that are engaged in activities that encourage regional development.
Durmitor Mountain and the Black Lake
Ministry of Economy Rimski Trg 46 81000 Podgorica, Montenegro Tel: 020 482 106, Fax: 020 482 232 E-mail: nina.vujosevic @ mek.gov.me Web: http://www.minekon.gov.me
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