Mbo 45 by Ceed NVO

August 2013 / â&#x201E;&#x2013; 45

WELCOME to the forty-fifth edition of Montenegro Business Outlook. MBO is quarterly publication of pertinent economic indicators presenting a comprehensive view of Montenegro’s business environment. This publication is intended to serve international business people seeking investment opportunity in Montenegro. We welcome your comments.

Business environment in Montenegro: A new Law on Value Added Tax has been brought into force in Montenegro. According to this law the general VAT rate has been increased from 17% to 19% while the lower rates remain at the level of 7% and 0%. Also Parliament adopted changes to the Law on excises which increase the excise on cigarettes and kerosene. Economic freedom has become more widely recognized as a tool for fighting poverty and to increase the welfare and well being of the population. More countries around the world are working on the principles of economic freedom trying to be better positioned in the world ranking and trying to improve their economic performance. Macroeconomic outlook The second quarter of 2013, at a macroeconomic level, was characterized by a recovery of economic activity: industrial production recorded a rise of 9.1 % during the period January-May 2013 when compared with same period of last year. In the labor market, slightly negative trends were recorded: salaries without taxes and contributions in January-May 2013 recorded a fall of 3.3% when comparing with the same period last year , and totaled €480 in May. The unemployment rate at the end of June was at a level of 13.05%. Monthly CPI index, in May, raised by 2.6%. Banking sector: From the end of March to the end of June 2013, the banking sector recorded a slight decrease of total assets and liabilities. However, the situation in the banking system, in terms of solvency and liquidity is satisfactory. Privatization and investments: After a few cancellations and failures of previous tenders, the privatization process in Montenegro is starting to pick up There were several privatizations that have been brought to an end recently (signing the Contract): New Tobacco Company/Novi Duvanski Kombinat/; Container Terminal and General Cargo Bar, etc. Also, several major development projects have been announced: resort construction in Kumbor, complex on Luštica; Bar-Boljare highway section, etc.

CENTRE FOR ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Kralja Nikole 27a/4, BC “Čelebić“, Podgorica, Montenegro Tel/Fax: +382 (0) 20 633-855 +382 (0) 20 620-611 E-mail: ceed@t-com.me web site: www.visit-ceed.org.me

Capital markets: During the first 6 months of 2013, the Montenegrin capital market was characterized by an increase in the volume of trade, but the number of transactions was characterized by a decline when compared with the same period of 2012. In the first 6 months of 2013, the greatest turnover was recorded in the area of company shares (86,5%), followed by bonds and investment funds. In the spotlight: Youth unemployment We introduce: Doing business in a changing climate – building a case for adaptation (3) EU Corner: Montenegrin steps towards EU Interview: Prof. Veselin Vukotic, Rector of the University of Donja Gorica

Business Environment

Business Environment in Montenegro

by Darko Konjević

In the second quarter of 2013 the Montenegrin economy was characterized by an increase of the Value Added Tax as well as excises on tobacco products. As the number of companies with blocked accounts is rising there are some positive trends in the Montenegrin economy. The Government of Montenegro as it was already announced proposed and the Parliament of Montenegro adopted changes of the Law on VAT. The proposed change was to increase the VAT rate from 17% to 19% and to keep current lower rates for specific products of 7% and 0%. Even though there was an ongoing debate whether it is a good move for the Government in order to better fulfill the budget and improve fiscal stability the Government decide to increase the rate. Even with this rate compared to all EU countries Montenegro has a competitive tax system and the Government should work on preserving this situation and cut some additional taxes that were introduced. The Government forecast is that by the introduction of measures aiming to increase the tax income it will in 2013 collect an additional 53-55 million euros of which: €12 million will be from tax on SIM cards, cable TV, electric counters etc., €7.5 million from 15% tax on salaries above average, €25 million from increasing the VAT rate to 19%, as well as an increase of the minimum wage from 30% to 40% of the average wage in Montenegro. In order to adjust the excise system of Montenegro to EU rules the Government of Montenegro proposed and the Parliament adopted the changes of the Law on excises. Main changes in the law are as follows:

• An obligation for paying excise is also implemented on legal persons and entrepreneurs that are not excise payers if they are selling excise products without a control excise stamp. This article was added in order to improve the situation of the market and to decrease the level of the grey economy concerning the excise on goods, • Decrease of the time needed to issue an excise permit from 60 to 30 days. Since the time of 60 day was recognized as a business obstacle the Government proposed a new timeframe for issuing an excise permit of 30 days, • An increase of the specific excise on cigarettes from €15 to €17.5 and a decrease of the proportional excise rate from 36% to 35% in order to adjust with EU requirements, • Defining the minimal excise at the level of 100% of total excise, • Increase of the excise on kerosene that is used as a motor fuel from €156 to €330 • Define the right of agricultural producers that are buying mineral oil for agricultural production for a refund of the excises There were also changes in the Law on construction in order to improve the situation in the area of issuing construction permits. Since Montenegro was recognized in the World Bank Doing Business report as a country with a poor score and expensive procedures (ranked 176 out of 185 countries) the Government proposed a cut of certain taxes. Investors according to the new law are not obliged to pay significant fees for a request they submit for issuing certain documentation in order to obtain a construction permit.

Also the construction permit will be issued within 30 days after the request is submitted. This is an important step in order to improve the situation and to decrease the time and costs for issuing construction permits. Industrial production in May 2013 grew 22.4% on an annual basis mostly due to the growth of the sector of electric energy. The value of construction work in the first quarter of 2013 was 5.7% higher then in the same period of last year. Also the number of employees in May 2013 was 5.2% higher than in the same period last year. The Government of Montenegro changed the Decree on quota for employment of foreigners increasing the number of permits due to the demand by employers and the situation of the market. The number of companies with blocked accounts is growing. According to the data from the Central bank of Montenegro 2.5 thousand companies have blocked accounts more than 30 days and with amounts higher than €10.000. The Government of Montenegro proposed and then withdrew the rebalance of the Budget of Montenegro. The new proposal is to be submitted to the Parliament in September. ■ Number of registered companies in Montenegro as of 1st August 2013 Source: Commercial Court

Joint stock company Limited liability company

339 28,300

Part of a foreign company

448

General partnership

NGO

297

Limited partnership

418

Entrepreneur

17,285

Institution

1,158

Other

114

Total

48,418

Tax rates Value added tax

179, 7% and 0%

Corporate profit tax

Personal income tax

9% (15% over 479€)

Economic Freedom

Importance of economic freedom In the following text are presented some case studies of the importance of economic freedom together with an explanation of the concept of economic freedom and its importance.

Economic freedom is the key to greater opportunity and an improved quality of life. It’s the freedom to choose how to produce, sell, and use your own resources, while respecting others’ rights to do the same. While a simple concept, economic freedom is an engine that drives prosperity in the world and is the difference between why some societies thrive while others do not. Why is it important? Economic freedom is important because it affects every aspect of an individual’s life. Living in a society with high levels of economic freedom leads to higher incomes, lower poverty, less unemployment, longer life expectancies, and cleaner environments, among a host of other benefits. More economic freedom improves well-being and leads to a higher quality of life. How is it measured? Both the Fraser Institute and the Heritage Foundation have indexes to measure and track economic freedom in the world. The Fraser Institute’s annual report, The Economic Freedom of the World , is produced in partnership with Florida State University and the Southern Methodist University, and it analyzes five subcomponents to measure a country’s level of economic freedom. These subcomponents include the size of government based on expenditures and taxes; the legal structure and its protection of property rights; access to sound money;

freedom to trade internationally; and regulation of credit, labor, and business. The Fraser Institute also maintains the Economic Freedom Network website, www.freetheworld. com, which contains all previous economic freedom research including regional and sub-national reports and downloadable data sets. The Heritage Foundation, in partnership with the Wall Street Journal, publishes the Index of Economic Freedom, which evaluates various subcomponents of economic freedom, including levels of business, trade, fiscal, monetary, and labour freedom; government spending; and property rights. The Economic Freedom of the World Report, www.freetheworld. com, has also found that the most economically free nations also have the highest percentage of populations with improved access to water, the highest life expectancy at birth, the highest infant and under-five survival rates, the most physicians per 1,000 people, the best nourished populations and the best Human Poverty Index scores. In sum, the most economically free nations scored better on every indicator of poverty. So why does economic freedom lead to a decrease in poverty? The answer is twofold: Growth: Economic freedom leads to economic growth, which creates greater opportunities for the poor. Having access to greater opportunity increases the likelihood that indi-

viduals will earn more income across their lifetime and raise their standard of living. And as economically free nations grow, the well being of the poorest citizens improves. Fewer barriers: Nations with higher levels of economic freedom also have fewer barriers restricting individuals from taking advantage of opportunities in a growing economy. For example, an energetic entrepreneur who cannot trust that his contracts and property rights will be enforced will not undertake the arduous and risky task of starting a business. Trade restrictions, high taxes, corruption and burdensome regulations also make it more difficult to take advantage of an economy’s growth. The Economic Freedom of the World Report, which, collects and analyzes data for 141 nations, has found that nations with the greatest economic freedom harbor the most innovative and rapidly expanding job sectors. And country-to-country comparisons demonstrate that when economic freedom increases, stronger employment growth follows. In fact, the report found that a one-point increase in economic freedom could mean as much as an 8 percent decrease in unemployment. Economic freedom implies low tax rates, limited size of government in relation to the size of the economy, and more flexibility in the labor market. Where these conditions exist, innovative economies grow and thrive, encouraging entrepreneurship and business ventures that stimulate businesses to hire additional workers. Vibrant, dynamic economies that provide job opportunities for the overwhelming majority of people have environments that enhance private sector growth by supporting business and entrepreneurial innovation. This includes protecting intellectual and private property, enforcing contracts, maintaining a stable monetary system, and minimizing barriers to growth including trade restrictions and burdensome taxes. ■ www.economicfreedom.org

Macroeconomic Outlook

Macroeconomic Outlook REAL SECTOR

GDP and basic sectors

According to last available data, the Montenegrin GDP in the first quarter of 2013 amounted to €675,3 million, thus recording real growth rate of 4.3% in relation to the same period last year. This growth rate is one of the highest recorded within the region (Serbia- 2.1%, Macedonia 2.9, Croatia-1.5), and above the EU level (-1.2). Industrial production: recorded a rise of 9.1 % during the period JanuaryMay 2013 in comparison with the same period last year, due to a rise of electricity production. Decreases in industrial output were recorded in the manufacturing sector (-28.3%) and mining and quarrying sector (-4.3%). Tourism: during April 2013, 32 750 tourists, of which 85% were foreigners, visited Montenegro, and 127 826 nights were recorded (of which 84% were foreigners). Budva along with Herceg Novi and Bar were the most visited cities.

In May 2013, the gross average salary was €728; the average salary without taxes and contributions was €480. The highest salaries without taxes and contributions, were recorded in the finance and insurance sector (€865), and salaries within the electricity, gas steam and air conditioning supply (€790) sector followed. The lowest salaries were recorded in the trade sector (€325) and administrative and support activities sector (365€). Average salary without taxes and contributions May 2012 - May 2013 May- 13 Apr- 13 Mart -13 Feb- 13 Jan- 13 Dec- 12 Nov- 12 Oct- 12 Sept -12 Aug- 12 July -12 Jun- 12 May- 12

EUR 480 EUR 477 EUR 476 EUR 485 EUR 490 EUR 497 EUR 478 EUR 480 EUR 483 EUR 480 EUR 480 EUR 484 EUR 487 465

470

475

480

485

490

495

500

Average salary without taxes and contributions May 2012 - May 2013 30,5

2,1

0,7

3,1

Consumer prices recorded a monthly growth of 2.6% in May 2013. The average inflation rate, measured by the Consumer Price Index (CPI), during the period January-May 2013 was recorded at a level of 3.4%. The most significant price increases during that period were recorded in food and non alcoholic beverages (5.8%) and rentals (5.2%).

Employment and Wages

The data from the Employment Agency of Montenegro shows that at the very end of June 2013, the unemployment rate was at a level of 14.2%.

INTERNATIONAL ECONOMIC RELATIONS Foreign Direct Investments (FDI)

During January- May 2013, net FDI inflow amounted to €112.1 million, 5.5% below last years period. • FDI inflow: € 153.1 million, mostly in the form of sale of real estate (€226.2 million) and investments into real estate (77.1€). • FDI outflow: € 41 million (recorded a fall of 25.8% in comparison with last years period) mostly in the form of withdrawal of non-residents’ investments in Montenegro (€34.1 million) FDI inflow structure (in million EUR) during the period January- May 2013 44,6

50,4

0,2 63,4

Construction: during first quarter of 2013, the total value of finished construction works was €45 million, while anticipated new building work projects are expected to total of €11.5 million, triple more than last years average.

Inflation

Public debt at the end of May 2013 amounted to € 1.767,milllion thus reaching half of the estimated GDP. Internal debt amounted to €436,0 million, while external debt amounted to €1.332,50 million.

4,1

Real estate Taxes

ContributionD

Other revenues

utiesF

ees

Loans repayment revenues

PUBLIC FINANCE Budget

During May 2013, source revenues of the Budget of Montenegro and state funds amounted to €93.9 million (2.7% of the estimated GDP), thus being 2.6% lower than planned. On the other hand, consolidated budget expenditures amounted to €95.9 million (2.7% of GDP), and being 7.8% higher than planned. This resulted in a Budget deficit of €2 million during May, while from begining of the year it amounted to € 78.6 million.

0,9

Withdrawal of the capital

Companies and banks

Intercompany debt

External trade

Total exports during the period January-May 2013 totaled €165.5 million, thus showing a growth of 9.9% in comparison with last years period, while imports totaled €476.3 million, thus showing a fall of 5.6%. The export-import ratio was 24.4%. Montenegro is the most import dependent country along with Serbia, China and Greece, and most export dependent country along with Serbia, Croatia and Slovenia. ■ (Sources: The Central Bank of Montenegro, Monstat, Ministry of finance of Montenegro, Employment Agency of Montenegro)

Banking Sector

BANKING SECTOR

Total Bank Assets and Liabilities

Total assets and liabilities of banks at the end of June 2013 amounted to € 2,915 million recording a an increase of 0,9% than in the previous month and by 3,8 % higher in comparison to December 2012. At the end of June 2013, in the structure of banks assets, net loans accounted for the main share (84,3%), followed by cash and deposits with central banks (9,4%) while the rest 6, 2% is related to other asset items. When it comes to banks liabilities, deposits are accounted for the main share (68,9%) while capital share in banks liabilities for June was 13,9%, borrowings made up 12.5% and other banks’ liabilities items 4.6%. Graphic 1: The structure of total banks’ assets and banks’ liabilities, in %

Source: Bulletin of Central Bank of Montenegro, November 2012, December 2012 and January 2013

Banks total capital amounted to € 402.1 million at the end of June 2013 recording a monthly growth of 0,3%, and growth of 40.6% in relation to December 2012.1

Deposits Total banks’ deposits amounted to € 1, 64.7 million at June 2013 which is a slight increase of 0,2 % in comparison to previous months while they were 1.6 % higher in comparison to December 2012. In total deposits’ maturity structure, time deposits accounted for 70.3%, while demand deposits accounted for 29.7% of total deposits. while insignificant portion referred to escrow account funds.

Household deposits Households’ deposits amounted to € 1,164,7 million at the end of June 2013, being 0.2% higher in comparison with the previous month, while in relation to December 2012, households’ deposits increased by 1,6%. In the maturity structure of 1 The reason for significant increase lies in the introduction of provision accounts for estimated losses under regulatory requirement which records provisions for written off loans from the off-balance and cancelled provisions for on-balance sheet items.

households’ deposits, time deposits made up 70,3%, demand deposits 29,7%, while an insignificant portion referred to escrow account funds. Loans Total banks’ loans and other receivables amounted to € 2,457,5 million at the end of June 2013 which is a monthly decrease of 0,8% and an increase of 4,9% in relation to December 2012. Interest Rates In June 2013, the weighted average lending nominal interest rate amounted to around 9, 18% which is a decline of 0,41 percentage points in comparison to the previous month. The weighted average deposit effective interest rate (deposit interest rates) amounted to around 10,30% which is a decline of 0,30 percentage points in comparison to the previous month. ■ Graphic 2: Interest rates, period-end, in %

10,00

0,00

9,45

9,44

3,16

3,14

3,12

February

MarchA

pril

Source: Bulletin of the Central Bank of Montenegro November 2012, December 2012 and January 2013.

Privatization and Investments

Privatization and Investments SOCAR Invests Half a Billion in Resort Construction in Kumbor

Azmont Investments, controlled by an Azeri state-owned company, will invest 500 million euro in the One&Only luxury tourist resort project in Montenegro’s Kotor Bay. It was decided to double the initial €250 million and the entire complex is to be completed within 28 months, stated the Azmont Invesments’ representative Gafar Gurbanov. Last year, the Montenegrin government signed a 90-year lease contract with the State Oil Company of the Azerbaijan Republic (SOCAR) for land for the development of a highend tourist resort. SOCAR initially planned to invest some €250 million in total during the first eight-year period of the lease to turn a 241,695 square meter site into a tourist resort. Representatives of the investor said that this year the construction site will employ 500 people, while next,year this number will reach 3.000. The investor promised 1.200 jobs after completion of construction and it will be the largest investment in Europe.

Montenegro Seeks Partner for €10 Million Real Estate Project

golf courses, hotels, spa and wellness centre, and a range of high-end boutiques, cafés, restaurants and hotels, all spread over 35km which BESIX should be a part of. The value of the apartment complex project has not been disclosed. However, according to the Government’s statement in February, Orascom Development plans to invest € 90 million in the Lustica residential complex project. Montenegro Picks China’s CCCC, CRBC for Bar-Boljare Highway Section

Montenegro is seeking a partner for a public-private partnership to finance and develop €10 million residentialcommercial complex in the coastal town of Bijela. The real estate project is to be developed on a 10.793 m2 land plot at Grabi site. According to the tender conditions, the private partner should transfer 22% of the residentialcommercial complex ownership to the public partner. Bids can be sent until October 14. Belgium’s Besix launches Construction of Lustica Apartment Complex in Montenegro

The Montenegrin government announced that Belgian construction company Besix has launched the construction of an apartment complex in the future marina, which will be part of the Lustica Bay resort project. The Lustica Bay project is being carried out by Montenegro-based Lustica Development, a 90/10 joint venture set up by Swiss-headquartered Orascom Development and the Montenegrin government. The Lustica Development project includes

The Montenegrin government announced that it has selected the €809.6 million worth bid of the China Communications Construction Company (CCCC) and China Road and Bridge Corporation (CRBC) for the construction of a section of the BarBoljare motorway. The talks are to be continued with the aim of concluding final agreements regarding the project design, construction and financing, transport minister Ivan Brajovic said in a statement issued by the government. The construction of the SmokovacUvce-Matesevo section is planned to be funded with a loan from China’s Ex-Im Bank. The 20-year loan will have a five-year grace period and 2.0% fixed interest rate. The 169 kilometer Bar-Boljare motorway will be part of the longer Bar-Belgrade stretch of the EU-defined transport Corridor X that will link Montenegro’s Adriatic coast with the Serbian capital.

Privatization and Investments EBRD approves €5 million loan to Montenegro for road infrastructure projects The European Bank for Reconstruction and Development (EBRD) has approved €5 million loan to the Montenegrin Ministry of Transport and Maritime Affairs to support improvements to road infrastructure in the country. The proceeds of the loan will be used to finance the reconstruction of a section of the BeraneKolasin road in the northern part of Montenegro with a total length of approximately 10 kilometers (km), the EBRD said in a statement. The sovereign loan is part of a total financing package of €25 million for the benefit of the Montenegrin ministry. A second loan, expected to be signed in 2014, will be used to finance the construction of a section of the road between Jelovica and Jezerine, with a total length of approximately 4.0 km, including a 2.5 km long tunnel. The EBRD investment is complemented by €1 million in technical assistance grants to support project implementation and institutional strengthening in the transport sector in Montenegro, and to support the road maintenance and safety programs in the country. “The project will facilitate regional economic development throughout Montenegro by improving the access that remote areas have to larger markets, which will also increase the attractiveness of these areas to potential investors. In addition, the improvement in road quality will result in a significant increase in road safety,” EBRD president Suma Chakrabarti said in the statement. Since the beginning of its operations in Montenegro, the EBRD has committed over 380 million euro to 36 projects, generating more than 800 million euro of investment in the country.

Tenders Closedb tenders The Deal for the Sale of Tobacco Company to be Closed Soon Montenegro is close to striking a deal to sell state-owned tobacco company Novi Duvanski Kombinat to a Montenegrin-Serbian consortium comprised from Partner Company, Jaz Express and Primat with German partners for €7.1 million. The negotiation process has been completed, and adoption of the final deal is pending. The construction works should be completed within a year. The investor has pledged to invest €9.4 million in the construction of the new plant and €1.5 million in new equipment. During the construction works, production may continue at the company’s old plant. The consortium plans to sell 40%-50% of its output on the Serbian market and a significant portion in several Arab countries. The new owner plans to employ 100 workers in the first year of operations and increase their number to 150 after five years. Global Ports Holding Selected as the Preferred Bidder for the Port of Bar’s

Company will pay this share in CTGC €8.08 million. The Tender Commission said the draft Contract has been finalized after the negotiation process was successfully completed, and the initial price of €7.1 million has been increased. According to the Contract, Global Ports Holding has committed to undertake investments in restructuring worth €13.5 million, within the CAPEX program over a three-year period.The Turkish company shall implement an additional five-year investment program worth €7.6 million. Global Ports Holding (GPH or the Company), a 100% subsidiary of Global Investment Holdings, is currently the operator of three leading commercial and cruise ports in Turkey. The Port of Bar has a current maximum capacity of 1mnTEUs containers and 6mn tons of general cargo; however, due to the lack of a proper highway, underutilization of the railway network and insufficient infrastructure, the port is currently not being used to its full potential. The Port of Bar used to be the main port of the Federal Republic of ex-Yugoslavia, and as such GPH’s initial plan is to attract back the trade traffic of Serbia, Kosovo, Albania, Macedonia and Bulgaria. The port will then have the chance to replicate the success of the past years and continue growing in the region.

Open tenders Oil and Gas Exploration Tender Announced

Tender The Tender Commission for Privatization adopted the Draft Sale Contract for the purchase of 62.09% of shares of the Container Terminal and General Cargo (CTGC), which is to be concluded with the Turkish Company Global Ports Holding. The

The Government of Montenegro has invited the tender for exploration of oil and gas for 13 blocks off-shore in Montenegro with a total surface area of 3000km2. The tender will be open for seven months (until February 2014). New restrictions mean that companies with off shore destinations are not eligible to participate as well as those based in destinations where Montenegrin tax authorities have no legal cooperation set in place or the possibility of legal aid. In addition, companies whose owners are not known

Privatization and Investments will also be forbidden to participate. This refers to mother companies,and mother of mothers, since we need to have a clear shareholder structure – explained the Minister of Economy Mr. Vladimir Kavaric. The Government has defined fiscal policy in this area. The state gets to retain 70% of net profit of oil companies, where it will be defined what enters into costs calculation (considering that profit is an expansive category). The Minister Kavaric said that 26 companies have visited the data room so far. List of some companies that visited the data room: Noble energy

USA

Edison Spa

Italy

Exxonmobil

USA

Novatek

Russia

Eni Spa

Italy

Anadarko lec

USA

Ina

Croatia

Jx Nippon

Japan

Total

France

Hess Corporation

USA

Helenic Petroleum

Greece

Trajan/Energian

GB/Greece

Nis (Gazprom)

Russia

Statoil

Norway

Wintershall

Germany

Woodside

Australia

Twe dea

Germany

Montenegro to Seek Concessionaire for Eight Small HPPs The Montenegrin Ministry of Economy is planning to award a designbuild-operate-maintain (DBOM) concession for eight small hydro power plants (SHPPs) in the country. The list of water streams with clearly defined location borders is given in the table below. Table 1. Water streams for concession activity No.

Water stream

Length [km]

Gross drop [m]

Height of water spring [mnm]

Height of estuary [mnm]

Bukovica

20,10

490

1440

950

Bijela

9,20

217

1050

833

Bistrica, pritoka Ljuboviđe

6,60

565

1160

595

Kraštica

9,60

450

1180

730

Velička rijeka

7,90

1045

1900

855

Đurička rijeka sa pritokama

8,10 7,48 6,63

104 580 835

1010 1590 1845

906 1010 1010

Kaludarska

19,95

815

1495

680

Vrbnica

8,50

535

1215

680

The Bidder, either sole or in consrtium, may apply for a concession for no more than three water streams and may submit, as sole bidder or in consortium, only one offer for the same water stream. The opening of bids will take place in the premises of the Government (old building), on November 18, 2013 at 14.00h. Announcement of the Cable Car “Cetinje – Lovćen – Kotor” Construction Project The implementation of the cable car “Cetinje – Lovćen – Kotor” construction project is underway. Currently, tender documentation is being prepared, after which tenders will be invited (in the middle of September). At a presentation, held in Podgorica on July 8, 2013,there were presented the possibilities for the implementation of this project, as well as benefits to be expected. The estimated project value is €46.5 million and the construction period is 12 months. In the case that the project is implemented

through private-public parnership (by planned model), the investors will be offered a 30-yer concession. The annual revenue was projected to be €4.5 million. The total length of the cable car is 15 km, projected time of travel is 42 min and the ticket price will be €20.00. Investors with proven experience on similar projects, in the construction of cable cars of at least 3km length will be eligible to participate in the tender. Previous activities on this project included the preparation of necessary documentation as follows: • Planning documents; • Project documentation (Preliminary and Main Design); • Feasibility Study; • Environmental Impact Assessment Studies. After construction,the cable car “Cetinje – Lovćen – Kotor” will become the longest in the world. ■

Capital Marktets

CAPITAL MARKETS

Trade on the Stock Exchange

During the first 6 months of 2013, turnover on the Montenegrin stock exchange amounted to € 10,93 million, thus showing an increase of 9.45% in comparison with the same period in 2012. The average monthly turnover during 2013 was € 1.82 million, which was little more than the average monthly turnover in 2012. (€ 1.66 million). The increase in the turnover of the stock exchange during the first 6 months of 2013 was followed by a decline in executed transactions. During the first 6 months of 2013, a total number of 3.304 transactions were completed. This was 0,45% less than during the same period in 2012 (3.319 transactions). During the first 6 months of 2013, three types of securities were traded: company shares, privatizationinvestment fund shares and bonds which included Government bonds and Ministry of Finance bonds. The greatest turnover was recorded in the area of company shares (86.5%), followed by bonds (7,4%) and privatization-investment fund shares (6,1%). The shares of companies (19,72%) and bonds (41,68%) recorded an increase, while investment funds recorded a decrease in comparison with the same period in 2012. (56,22% respectively).

Looking at shares on an individual company basis, the highest monthly trade volume was recorded in April, during the first 4 month of 2013; Crnogorski telekom AD Podgorica (Montenegro Telecommunication Company) shares reached a volume of 1.47 million on the A list.

Stock Exchange Indices

The value of the MONEXPIF index has declined steadily with just a few oscillations since September 2012. It reached its highest level on 13 August with a total of 4.007 points. From January 2013,the index also continued to decline and the lowest point in this year was recorded on 30 May with 2.145 points. The index value was influenced in such a way that a similar trend was evident in all of the privatization investment funds.

Privatization – Investment Funds on the Stock Exchanges The total volume of trade involving PIF shares during first 6 months of 2013 amounted to € 663.492, which is 43,78% less in comparison with the same period in 2012. In total, 742 transactions were made during the first 6 months of 2013. The most actively traded shares during this period were Trend (6,01 million shares), while the least traded were those of HLT (just 1 share). ■ MONEX 20 12.00

The Montenegrin stock exchange uses the two indices, MONEX20 and MONEXPIF. The value of the Montenegrin Stock Exchange, MONEX20, upon which MSE’s 20 most liquid companies are traded, had started in 2012 with a constant decline and permanent oscillations, to reach its lowest value of 8.138 points on July 27th. Afterwards, the index kept rising until the end of the year, reaching its highest annual value of 9.184 points on December 31st. Index growth continued in 2013, when it reached its peak of 10.247 points on 16th of January 2013, after which it began to fall.. Variations in index value have influenced all of the changes shown by shares represented in this index. In particular, the following were most affected: Telekom Montenegro, Prva Banka, Montenegrin Electric Transmission System and Plantaze.

10.00 8.000 6.000 4.000 2.000 0

jul1 2a

vg.1 2s

ep.1 2o

kt.1 2n

ov.1 2d

ec.1 2j

an.1 2f

eb.1 2m

ar.1 2a

pr.1 2m

aj.1 2j

un 12

eb. 12m

ar. 12a

pr. 12m

aj. 12

jun 12

MONEXPIF 4.500 4000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 jul 12a

vg. 12s

ep. 12o

kt. 12n

6,1

ov. 12d

ec. 12

jan. 12f

7,4

PIFs units

86,5

Bonds

In The Spotlight

Youth Unemployment

in Montenegro Today, the world labor market is facing an aggravated youth employment crisis: young people are three times more likely to be unemployed than adults and almost 73 million of young people worldwide are looking for a job. The International Labour Organization has warned about a “scarred” generation of young workers facing the problem of a high unemployment rate, increased inactivity and a precarious work situation in developed countries1. Total unemployment of young people between 15 and 30 years in Montenegro for the first quarter in 2013 was approximately 45.3%, while only 11.8% of the youth population is employed. According to MONSTAT, the total youth unemployment rate for the first quarter of 2013 has increased in comparison to the total unemployment rate of the youth population in 2012 which was 43.7%.2 This data suggest that young people in Montenegro have difficulties in finding jobs.

While an important cause of youth unemployment is related to the overall economic crisis, a significant part of it can also be linked to the attitude of today’s youth, who get higher education but are more reluctant to accept any job offered at least for the sake of gaining some work experience. This is partly supported by the fact that despite the high unemployment rate in Montenegro, many foreigners are stimulated to work in our country especially during the season. Surveys researching Montenegrin youth’s (1524) attitudes3, opinions and habits shows some findings supportive to the previous statement. Namely: • 54.7% of the surveyed youth population claimed they often think of school/job while 26.5% of the population said that they are often bored in their free time; • 40.4% are not participating in any kind of sport or physical activity;

• almost half of the tested youth population doesn’t have any personal income (19.1% of the population stated an inability to find a job); • still, almost half of the participants (48%) claimed that they would start a business someday in the area related to finances and business (24.8%), trade (22.9%), catering trade (16.5%), agriculture and crafts (10,4%), while the remaining 25.4% percentage would like to start a new business venture in education, IT, legal services and transport. It can be concluded that the youth population in Montenegro lacks motivation for self improvement. To tackle this issue, the Government of Montenegro in cooperation with other relevant organizations that support youth population employability, set up a Vocational Educational program. So far, 4211 people with a bachelor degree participated in this program and acquired first business experience in their field of expertise (unfortunately, 67% of project participants’ chose internship in public administration)4. Reactions to this program were positive and it is likely to be continued in the future. Still, it is questionable should the policy frame focus on providing jobs for youth, or if the long term solution is in developing an entrepreneurial spirit through formal and informal education, starting even from kindergarten. By developing such attitudes among young people and helping them understand individual responsibility for its well being, it is more likely not only that more of them would become self employed, but would much more easily find a job in the labor market. In addition, the concept of lifelong learning must be introduced in schools since children are our future work force. It must be clear that the process of learning refers not only to school education but is an “ongoing, voluntary, and self-motivated”5 pursuit of knowledge for either personal or professional reasons during their entire lifetime. ■

1 Source: Global Employment Trend 2013International Labor Organization 2 Source: Monstat.org

3 Source: “Everyday life of the youth in Montenegro” (2013) DAMAR, available at http:// damar.co.me/istrazivanja_mladi.pdf

4 Source: www.gov.me 5 Communication From The Commission: Adult learning: It is never too late to learn. Commission of the European Communities, 2006

EU Corner

MONTENEGRIN STEPS TOWARDS EU Action plan for negotiation of chapters 23 and 24 At the end of June 2013. The government adopted an action plan for chapters 23 and 24 relating to the rule of law and justice that are crucial in the process of negotiations between Montenegro and the European Union. Action plans can be downloaded here: The Action Plan on Chapter 23 – Judiciary and fundamental rights, The Action Plan on Chapter 24 - Justice, freedom and security http://www.mip.gov.me/en/images/ stories/EI_download/26_VI_13_ AP_23_za_portal.pdf

Montenegro – Negotiations status Negotiations opened

1 – Free movement of goods 2 – Freedom of movement of workers 3 – Right of est. & freedom to provide services 4 – Free movement of capital 5 – Public procurement 6 – Company law 7 – Intellectual property rights 8 – Competition policy 9 – Financial services 10 – Information society and media 11 – Agriculture and rural development 12 – Food safety, vet. & phytosanitary policy

Bilateral screening process From May to July 2013 the bilateral screening of EU legislation was held on the following topics: Chapter 2 Freedom of movement of workers, Chapter 9 - Financial services, Chapter 13 – Fisheries, Chapter 14 - Transport policy, Chapter 18 – Statistics, Chapter 21 - TransEuropean networks, Chapter 29 Customs union, Chapter 30 - external relations, Chapter 31 - Foreign, security and defense policy, Chapter 32 - Financial control and Chapter 33 - Financial and budgetary provisions.

13 – Fisheries

Explanatory screening process From May to July 2013 an explanatory analytical overview was held about the following chapters: Chapter 18 – Statistics, Chapter 29 - Customs union, Chapter 20 - External relations, Chapter 31 - Foreign, security and defense policy, Chapter 32 - Financial control and Chapter 33 - Financial and budgetary provisions. ■

27 – Environment

Source: www.mip.gov.me

Negotiations closed

14 – Transport policy 15 – Energy 16 – Taxation 17 – Economic and monetary policy 18 – Statistics 19 – Social policy and employment 20 – Enterprise and industrial policy 21 – Trans-european networks 22 – Regional pol. & coord. of structural instr. 23 – Judiciary and fundamental rights 24 – Justice, freedom and security 25 – Science and research 26 – Education and culture 28 – Consumer and health protection 29 – Customs union 30 – External relations 31 – Foreign, security and defense policy 32 – Financial control 33 – Financial and budgetary provisions 34 – Institutions 35 – Other issues Source: http://ec.europa.eu/enlargement/

18 December 2012 18 December 2012 15 April 2013

15 April 2013

EU Corner

EU Funds In Focus: European Instrument for Democracy and Human Rights (EIDHR 2013)

The Delegation of the European Union to Montenegro published a call for proposal under the European Instrument for Democracy and Human Rights (EIDHR) Program. The global objective of this Call for Proposals is: Strengthening the role of civil society in promoting human rights and democratic reform, in supporting the peaceful conciliation of group interests and in consolidating political participation and representation. For the purpose of this Call for Proposals three specific objectives have been identified: 1. The pursuit of common agendas for human rights and democratic reform 2. Building towards consensus on disputed or controversial areas of policy 3. Enhancing political representation and participation Any grant requested under this Call for Proposals must fall between the following minimum and maximum amounts: - minimum amount: € 50,000 - maximum amount: € 150,000 The initial planned duration of an action may not be less than 12 months nor exceed 24 months. Actions must take place in Montenegro. Where possible, applicants are encouraged to consider activities in disadvantaged areas, such as the north of Montenegro. The deadline for submission of proposals was: 22nd July 2013. ■ Source: http://www.delmne.ec.europa.eu/

Croatia become part of the EU On 1 July 2013, the Republic of Croatia became the 28th Member State of the European Union. The EU accession process which has taken some 12 years provided Croatia with the impetus to undertake far-reaching reforms and harmonise its legislation with the EU’s acquis communautaire. Croatian steps towards EU accession The process of integrating Croatia into the European Union started with the EU’s Stabilisation and Association Process for the Western Balkans launched in 2001, after which it applied for EU membership in 2003. The accession talks were formally opened in spring 2005. Though negotiations were held up by a set of issues, the process was completed in 2011. The Treaty between Croatia and the 27 EU Member States was signed on 9 December 2011. A referendum in Croatia on 22 January 2012 showed that 66 % of voters were in favour of joining the EU. Throughout the interim period until the accession, Croatia had an active observer status in the European Institutions to allow its officials to become familiar with the working methods of the EU institutions and to be involved in the decision-making process. Ongoing structural reforms As a member of the EU, Croatia will continue to focus on structural reforms. Croatia will benefit from investment through the EU Structural and Investment (ESI) Funds which will amount to EUR 450 million. This investment is expected to account for a HUNGARY large share of the country’s SLOVENIA ZAGREB development budget in the SERBIA OSIJEK years ahead, and presents SISAK RIJEKA VUKOVAR an important opportunity to address Croatia’s needs. It PULA can contribute towards the BOSINA AND development of a modern HERZEGOVINA ZADAR and competitive economy ŠIBENIK that will both benefit from SPLIT DUGI RAT and be an asset to the EU. ■ ADRIATIC SEA

MONTENEGRO DUBROVNIK

Source: Panorama Magazine, http:// ec.europa.eu/regional_policy/information/panorama/index_en.cfm

MBO Interview

Interview with Prof. Veselin Vukotic Rector of the University of Donja Gorica

Prof. Vukotic, is over all education in crisis? Yes, it is. That’s a crisis that affects the West also. I am among those who believe that the education crisis is more serious and has more consequences for the future of the West than today’s financial crisis. At the end of last year the European Commission issued a document - Rethinking Education strategy, as a set of recommendations for the development of higher education in the EU. Jose Manuel Barroso, European Commission president foreshadowed to us the Strategy during his visit to the UDG. The essence of this document is back to normality. Education should be released from the mechanistic approach and should be result-oriented! Everyone has a big talent but each of us should find a way to explore it - just by testing different features in reality, in my experience. The document insists on the universality of students, their education, language skills, skills acquisition, exploration, but all of it is related to acquiring knowledge in the fundamental disciplines of science. It seems that what we have already been working on in UDG is closely linked to the ideas from that document. How are these ideas implemented by UDG and do students accept them? It’s a long story and I have been writing a book about it. I would need to say that any compression of the answer could be misunderstood.

I think it’s crucial that it’s all about the student.The student as an individual - not as a mass of students. UDG students have a name - not a number. He is a person. I think I know no less than 80-90% of students of UDG, and there are now about 1800 of them. Every day I receive them as rector and chat with them, either in person or by e-mail, show them the opportunities that they have, chances, and I appreciate it when they share their experiences, observations on the process of teaching, on professors, relations with other students ... Only then, when you meet them will you realize how capable and talented young people are, and the good thing is that we adults still have not managed to ruin them. But sooner or later we will! So, the legitimacy for our work we pull out from the student – individual concept. Our approach is that the best university is the one whose students get jobs easily, make rapid progress in their careers, create, innovate and are socially responsible. Any misguided career, and everyone’s shipwreck in life, as any successful career and a happy and healthy life, at least in part is the product of colleges and universities. The responsibility of educational institutions will steadily increase. Or they will lose their meaning, as predicted by Friedrich Nietzsche.

Source: “Pobjeda” daily newspaper. june 20. 2013

What are the basic conditions that your university offers? The conditions are above the European average. Today, in the region and beyond, you do not have private universities with a building of 17,000 m2, with modern equipment and a functionally organized architectural structure. And these conditions relieve our students of any inferiority complex; they become aware that they are completely equal, even more, with their counterparts abroad. These conditions go along with the fact that at the UDG we have about 250 professors and lecturers from Montenegro, the region and all continents along with business people from the region and Europe; artists, athletes. Many lectures are in English thus creating confidence among the student and strengthening their sense of competence. How do you see the development of UDG in the next 5 to 10 years? We at UDG are able to do something serious. We have a chance! Indeed, we have created the conditions, we have ideas and opportunities are there ... but the question is - are we able to take advantage of them? The principles on which we established UDG open some new processes and give us hope. Of course, while navigating through a minefield, you need luck. And for new ideas Montenegro is a sort of a minefield.

MBO Interview

As a model for our development I see the success of our sport. The results of Montenegrin sport give us hope: if we can do it in sports, why we can we not do it in other areas? If we had teachers who would be at the same level as some successful Montenegrin coaches in their European and global competition, and our students invested half of their time and effort compared to our successful athletes, I am sure that in Montenegro we would have one or more respectable universities. In this paradigm we see the development of UDG. It is not easy. But it is challenging. Is youth unemployment the product of discrepancies between profiles of studies and the labor market? Universities should not adapt to the current demand of the labor market. It is now history! They must assess what will be required in the future to understand megatrends of development. Famous Israeli statesman Shimon Peres said that in the military sector and education was not enough to cope with problems that emerge today. You need to be mature enough for tomorrow and its challenges! Very

few employers are investing in education, including their own education, and do not understand well the importance of education. Of course, there are some exceptions.. As for entrepreneurship and establishing companies by students in Montenegro, we understand that unemployment is the greatest obstacle to development. Neither Montenegro nor Europe can bear the cost of unemployment. Public debt is the result of in-depth cost that society must allocate for the unemployed through public funds, or through family budgets. Who will employ graduates, if they do not start their own businesses? The current model is upside down and needs to be changed. ■

About Prof. Veselin Vukotic Prof. Veselin Vukotic is an economist, professor and rector of the University of Donja Gorica. He was born in Piperi on August 5, 1949. Vukotic graduated from the Faculty of Economics in Podgorica in 1971, got his M.Sc. in 1977, and Ph.D. in 1980 at the Faculty of Economics in Belgrade. He was a member of the Government of Montenegro and the Federal Government of Yugoslavia led by Ante Markovic, and vice president of the Privatization Council and is known as the founder of economic liberalism and free-market ideology in Montenegro. Vukotic is the founder of the private university UDG, a member of the International Society Mont Pelerin Society, founder of the traditional meeting “Economy and Transition”, founder of “Christmas debate on the economy.” The founder and editor of the international journal “Entrepreneurial Economy”, president of The Association of Economists of Montenegro, and president of the Euro-Atlantic Club of Montenegro.

Business News

Business News Croatia want oil exploration in cooperation with Montenegro

The Croatian Ministry of Economy plans to propose Montenegro to a joint call for tender for oil and gas exploration and exploitation in the cross-border area on the coast. This would make sense because the value and attractiveness of the project will be increased, so that we can all benefit from it. Ultimately, this could be an incentive to finally resolve the issue of the maritime border,” it is said at the Ministry. The Croatian government has recently announced calls for international tenders for exploration and development of domestic oil and gas reserves, but the richest mining sites, those located offshore in the south of Croatia, could be blocked until the final agreement about the sea border between Croatia and Montenegro is reached. Source: Portal Analitika

Competition for „green business“ ideas and projects

The Fund for Active Citizenship – FAKT, in partnership with the Rockefeller Brothers Fund, announced a “green ideas” competition. The aim was to encourage individuals, agricultural holdings, small businesses and nongovernmental organizations to develop innovative business ideas based on the principles of sustainable development. The deadline for proposal submission was 14 of June, 2013. The competition was open to individual applicants (citizens of Montenegro), farms, companies (specifically: a small enterprise) or non-governmental organizations, registered in Montenegro. The three best ideas participated in the Regional Forum “Philanthropy for green ideas in the Western Balkans” organized by the Rockefeller Brothers Fund (RBF) in Macedonia from 26-29 July 2013.

Chinese Tour Operators are Visiting Montengro Organized by the National Touristic Organization of Montenegro, from 6th to 9th of June, a group of Chinese tour operators visited Montenegro. Their visit to our country was handled by the national touristic organization of Montenegro. This visit is a result of joint cooperation and promotional activity which NTO Montenegro and National

Touristic Organization of Serbia are conducting in distant active markets. It was being planned that tour operators from China visit attractive locations all across Montenegro. The group was made up of tour operators from„Beijing Ctrip International Travel Service”, “Beijing Eyeshot Business Travel“, “Hua Yuan International Travel“, “Beijing Jin Jiang International Tours“, “Phoenix Travel Worldwide“, “China Travel Service“ and “Azure Global” as well as a representative of “Qatar Airways”.

Medium-term financial perspective of the EU for 2014 - 2020 In the premises of the University Donja Gorica, a two day seminar was held on the topic of “Medium-term financial perspective of the EU for 2014-2020 with special reference to IPA II“. The seminar discussed the concept of macro public finances of the EU and medium term financial perspective of the EU for the period 2014-2020, cohesion policy of the EU and pre-accession assistance with a special reference to IPA II for 2014-2020 period. Example of good practice were shown Slovenia which in 2004 entered the EU and Croatia which on 1 July 2013 became one of the state members of the EU as well.

Foreign Investors Council Held Session in Budva Intensification of cooperation and a partnership with the Council of foreign investors in Montenegro should serve as the basis for new investment and improve the business and investment environment, the Minister of Sustainable Development and Tourism said yesterday.

Business News The Chairman of the Board of Directors of the Council of Foreign Investors said he expects that the adoption of new legislation, predicted by the Plan of Government for the year, will accelerate and intensify the initiated regulatory reform. He also expects that proposed amendments to the law on tourism will provide missing clarification and simplification that are necessary for better and more efficient operation of the tourism industry. Source: Pobjeda, daily newspaper.

Ecuador wishes direct trade links with Montenegro Ecuador is interested in establishing direct trade links with Montenegro through the Port of Bar, it was stated during the presentation of economic, investment and touristic potentials of this South American country, held in the Chamber of Economy of Montenegro. Ecuador could become strategically placed for investment in the Andes region which is made up of Columbia, Ecuador, Peru and Bolivia. Montenegro has the opportunity to do business in this sub region of Latin America. Although Montenegro and Ecuador are geographically distant from each other, they have a lot of similarities. The Republic of Ecuador is spread over 256.370 square kilometers northeast in Southern America and has 14,3 million habitants.The Capital city is Quito. Currency is the American dollar, enforced in 2000 as one of the instruments in order to successfully deal with economic crisis.

Gold medal for Vranac in Bucharest One of the 20 most prestigious world competitions, “The International wine contest Bucharest 2013” (IWCB 2013.) was held from 23-26.05.2013 in the capital city of Romania and wines from vinyard Plantaže won the highest medals. Gold medals were won for Crnogorski Vranac 2010., Vranac Pro Corde 2010. and Vranac Barrique 2008.

The competition in Bucharest is known for its gathering of the largest and most famous wine producers and consumers from Italy, France, Spain, Africa, Argentina, Chile, Rumania, New Zealand and, Australia. The performance of wines from Plantaže and winning gold medals confirm one more time the quality and potential of the best Montenegrin wines.

Montenegro is stable according to the failed State Index Rankings

This year, the 10 th competition in Bucharest was organized by the Ministry of agriculture and rural development from Romania and the sponsor was the International Organization of Vine and Wine (OIV). Source: Portal Analitika

Turkish Investor is interested in the Port of Bar Representatives of the delegation of the Executive Board of Izmir EXPO 2020, during a meeting with the Montenegrin President showed particular interest in the Port of Bar and the duty-free zone in the city and announced the arrival of Turkish businessmen in Bar. Previous experience of Turkish investors, such as Gintas, Toščelik and, Turkish Arlines is a good example for other investors and could be a bridge for cooperation.

Tourism Income 55.7 million euros for the first five months Tourism income in the first five months of 2013 was 55.7 million Euros which is 4,5 % higher than in the same period last year, said the Ministry of Sustainable Development and Tourism.

According to the Failed States Index Rankings, Montenegro is located in 134th. place out of 178 countries and belongs to the group of “stable” countries. When it comes to neighbor countries, Croatia takes 135th. place on the rating list and it has been graded as a stable country while Serbia and Bosnia and Herzegovina fall into the “danger” state category. Slovenia is in 163rd. place which makes it one of the most stable countries in the region. “Most unstable countries in the world are Somalia, Democratic Republic of Congo, Sudan and South Korea” says the International Business Times. On the other part of the list the most stable countries are Finland, Sweden and Norway. Failed States Index Rankings was made by the group for exterior policies and Peace Fund, according to the 12 social, economic and politic indicators such as human rights, poverty, economic fall, state legislation, security.

The Ministry stated that the preseason was successful when it came to tourist visits; number of overnights, tourist circulation and other parameters and a positive trend is expected in the following months. According to data from the Ministry, in the period from January until May this year the number of tourists was higher by 7.55% and overnights by 3.83%.

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Editor in chief: Darko Pekić ceed@t-com.me MBO Team: Dragana Radević Mihailo Zečević Vesna Bojanović Jelena Međedović Jasna Žarković Biljana Janković Jovana Stojković Ana Filipović ASSOCIATES Charles Brogden, Editor Marko Mihailović, graphic designer Front page picture: MBO archive

Coming Up! Call for Milocer Development Forum 2013

The Association of economists and managers of Montenegro continues the tradition of organizing the Milocer Development Forum. The Forum will be held on 8, 9, 10 and 11 of September 2013 in the hotel “Maestral”, Przno, Montenegro. The themes of this year’s forum are : Economic crisis, Education and Youth population employment. Registration of participants will be possible from August 20 to September 5, 2013 until 14:00 by sending an e-mail to: demcg@t-com. me. Registration form (name and surname, contact phone and e-mail address) is mandatory (only accredited participants will be allowed to attend the forum).

International Matchmaking Event - Slovenia 2013

Within the 46th International Fair MOS, which will be held in Celje from 11 to 17 September 2013, the Chamber of Commerce of Slovenia organizes B2B meetings on 12 September - International Matchmaking Event - Slovenia 2013. These traditional meetings are an opportunity for SMEs from the EU and the countries of South-Eastern Europe. Participants from Montenegro will not need to pay any fee to participate. The main areas of interest are: renewable energy, metalworking, construction, carpentry, electrical and plastic industries. More information about this event can be found here: http://www.b2match. eu/slovenia2013

UNESCO schools in South East Europe Sustainable energy management in the areas of World Heritage

The UNESCO Regional Bureau for Science and Culture in Europe organizes in Dubrovnik, from 29 September to October 4 2013, a school for sustainable energy management in the areas of world heritage. The program is designed as a unique opportunity for capacity building and introduction to the body of knowledge in the field of renewable energy, which is based on European examples of World Heritage Sites. Please submit applications electronically to: veniceoffice-sc@unesco. org (cc: ana.savjak@mku.gov.me, milena.milonjic@mna.gov.me). Candidates should send their CV and a short motivation letter and describe their experience about sustainable energy sources (both documents in English). The deadline for applications is 15 August 2013. International expert panel will select the candidates who will be notified of the results no later than 30 August 2013.