July 2012
Privatization and Investments Montenegro Seeks Strategic Partner for KAP The Montenegrin Prime Minister, Igor Luksic, said that the government is determined to resolve ties with its Russian partner, EN+ Group which belongs to the Russian billionaire, Oleg Deripaska, regarding the aluminum plant KAP. It was recalled that in February the government took over the troubled aluminum plant, KAP, including €132m in debts. The owner, Deripaska, failed to revive the smelter after taking a majority of the stake in 2005. Montenegro owns a 58% stake in KAP along with its Russian partner. Montenegro aims to seek a strategic partner with which it can work in a similar way to another Montenegrin company, Niksic Steel Mill. Several companies showed interest in taking over the KAP. German HGL Group started negotiations with the Russian owner of the aluminum plant about taking over their stocks. The Government of Montenegro was only prepared to confirm that it had enabled contact between the Germans and the Russians and that negotiation were in progress. Toshcelik, a Turkish company, which recently bought Niksic Steel Mill for €15.1 million and announced increase of production, is also interested in taking over KAP.
French Company, Vichy, Interested in Igalo The French company, Vichy, is interested in buying the Institute Dr Simo Milosevic in Igalo. It is also interested in investing in the health institution according to the president of the company, Jerome Phelipeau. He added that Vichy wants to put Montenegro on the same level of investment as Brazil, Mauritius, China, Morocco, and Qatar. Phelipeau said, "If we succeed in doing that, Montenegro will be, in addition to France, the only country that offers the complete range of our services." According to Phelipeau, Igalo’s resources are respectable; people are already trained and experienced in Vichy’s field of business. Phelipeau explained that his company does not want to come to Igalo for quick profit, but rather to stay for a long time.
Canada Interested in Building Hydro Power Plants in Montenegro Canada is interested in the hydropower potential of Montenegro. In an interview on Montenegro’s National Television, the Canadian ambassador, Roman Vashchuk, said that a bid to build hydropower plants through private-public partnership had already been submitted to the Montenegrin government. Vashchuk said that a Canadian corporation, REV, is planning to build a hydropower plant in Serbia, and that it has proposed a similar project to the Montenegrin government. He said that the Canadian government would support the eventual agreement. He also disclosed that the Canadian corporation, REV, was considering the construction of a second block in the thermal power plant at Pljevlja and that negotiations were ongoing. According to unofficial information, Chinese investors have also shown interest in this project.
Greeks Invested €43 Million in Sveti Stefan So Far The Company Adriatic Properties, owned by the Restis group of companies, invested €43 million into the project “Sveti Stefan Aman resports” - showed independent auditor’s report hired by the European Bank for Reconstruction and Development. In the first phase of the project implementation Adriatic Properties invested €33 million for refurbishing hotel complex Sveti Stefan and Miločer, while €10 million was covered from the EBRD’s loan. In the second phase, which anticipates development of the hotel Queen’s Beach, Adriatic Properties plans to invest €22 million, while the rest (€49.6 million in total) would be covered from EBRD’s loan. Adriatic Properties requests 30% decrease of annual lease and the extension of the lease period. Annual lease amounts to €1.6 million. Greeks claim that, due to unexpected circumstances, they suffered considerable material losses. However, the lease for the last nine months has not been paid yet, thus the current debt amounts to €1.3 million. What seems to be problematic in the whole situation is the fact that almost five years after signing of the lease contract, the plan for the Hotel Queen’s Beach has not been adopted yet and permits for Sveti Stefan Block 25 are in delay. Lease Contracts for Sveti Stefan, Miločer and Queen’s Beach were concluded on January 15th, 2007 for the period of 30 years, and Greeks stated they would leave ‘the Saint’ only if they receive €50 million compensation.
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