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Public Auction for HTP ‘Ulcinjska Rivijera’ AD Ulcinj
Privatization and Investments Open Tenders Montenegro Plans to Sell 11 Companies in 2012 The Privatization Council, chaired by the Montenegrin Prime Minister, Igor Luksic, has adopted a new privatization plan for 2012. It envisages the sale of 11 companies that are currently owned by the state. Companies that will be privatized through public tender include the following: the newspaper and publishing company Pobjeda, Montekargo-Podgorica, Montenegro Airlines, the container terminal and general cargo depot at Bar, and the country’s own railway infrastructure. The Montenegrin government also plans to sell the Adriatic shipyard at Bijela this year, as well as the Zora Dairy in Berane, the hotel group Budvanska Rivijera situated on the Ulcinjska Riviera, the Ferrous Metallurgy Institute in Niksic and the Piva Electrode Factory in Plužine. It has been announced that numerous sites, business organizations, and military and tourist complexes will be offered to interested parties on a lease basis following a public-private partnership model. In this way, the Government of Montenegro will try to lease Ada Bojana, Ulcinj’s Velika Plaza (Great Beach) and some tourist facilities in the Bjelasica and Komovi mountain areas. Montepranzo-Bokaprodukt in Tivat, the Montenegrin Postal Service, the Kumbor-based Orijen Batallion barracks and Mamula Island will also be offered up for lease. Source: www.gov.me
The Privatization Council announced a call for the sale of part of the property belonging to the hotel-tourism company, Ulcinj Riviera, through public auction. The starting price was set at €1.2 million. The auction will provide funds to implement a social program which will help, in some way, to resolve the problem of redundant employees. Applications and signed draft contracts should be returned by 13.00 on 12th April. A public auction will take place on 20th April, 2012, at 12.00. Last year, the tender for the sale of 63.52% of the HTP ‘Ulcinjska Rivijera’ shares failed as no bids were submitted. The share owners who offered up shares for sale were the State of Montenegro (10.14%), the Investment-Development Fund (7.64%), the Pension-Disability Insurance Fund(25.29%), the Employment Agency (8.43%) and the Compensation Fund (12%). Source: www.pobjeda.me
Montenegro Calls for an Auction for the New Steel Mill Montenegro has announced that a public auction will take place for the sale of the insolvent steel mill, Zeljezara Nikšić. The starting price has been lowered to €15 million. Applications for participation in the auction should be made by 27th April; the auction is scheduled to take place on 30th April. This is the third attempt that has been made to sell the plant since the beginning of the year; on the two previous occasions the starting prices were set at €30 and € 21 million respectively. There were no bids on either occasion.
Montenegro Airlines to be Privatized in 2012 The Montenegrin Government has decided to go ahead with the privatization of Montenegro Airlines this year, 2012. The decision follows a difficult year for the country’s own national carrier in 2011. Montenegrin Prime Minister, Igor Lukšić, said that the airline will be offered to investors through public tender. Montenegro Airlines has become costly to maintain since the Government agreed to provide €400,000 to support it each month to cover operational costs and to write off its debts to Podgorica and Tivat airports. In order to pay off the debt owed to the Serbia and Montenegro Air Services Agency, the government has offered, in exchange, ownership of the Park Hotel in Bijela. Earlier in 2011, the Government wrote off an additional debt of €3.2 million and ordered the country’s two international airports to lower their fees to Montenegro Airlines. Recently, however, there has been discontent amongst pilots due to the late payment of salaries. Source: www.balkans.com
Investments Luštica Development Project to Start by the End of the Year Luštica Development, a subsidiary of the Swiss-based Orascom Development, expects to receive all necessary permits and to begin developing the first phase of its €1.1 billion Luštica Bay tourism project in Montenegro by the end of the year, according to Orascom CEO, Samih Saviris. Founded in 2008, Luštica Development AD is a joint venture between Orascom Development Ltd. (90%) and the Government of Montenegro (10%). The aim of the project is to create and operate an integrated holiday resort that offers a wide range of amenities including 8 hotels, 1,600 apartments, 750 villas, a downtown area with all necessary facilities including shops, schools and medical services, 2 marinas, water sports opportunities, a conference centre, a Thalasso centre and an 18-hole golf course. The first phase of the project is scheduled to open at the end of 2013. Source: www.mipco.me
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April 2012
Privatization and Investments Reservoir Capital to Investigate Potential Hydroelectric Development Sites in Montenegro Reservoir Capital Corporation has established an office and has contracted advisors to investigate potential hydroelectric development sites in Montenegro. The company has a particular interest in the Lim river, just across the border from the company's Brodarevo Projects in Serbia. An office has formally been opened by Mr. Roman Waschuk, the Canadian Ambassador to Serbia, Montenegro and FYR Macedonia. He also introduced the company to the Ministry of Sustainable Development and Tourism officials. The President and CEO of Reservoir Capital, Miljana Vidović said, "We are grateful for the continued support of the Canadian Embassy. We are also very pleased to be extending our new business efforts in the region to complement our existing bases in Serbia and Bosnia. Montenegro is a very mountainous country with a lot of undeveloped hydroelectric potential and has recently established a new legal framework for renewable energy which meets European Union standards." Source: www.mipco.me
EBRD is considering granting a â‚Ź65 million loan to Crnogorski Elektroprenosni Sistem The European Bank for Reconstruction and Development is considering granting a syndicated loan of up to â‚Ź65 million for Crnogorski Elektroprenosni Sistem in order to upgrade Montenegro's power network, news channels reported, apparently citing an EBRD press release. The loan would also go to creating an electricity transmission infrastructure that would link Montenegro and Italy. The proposed project includes the construction of a new substation at Lastva on the Adriatic coast, the diversification and strengthening of the existing network around Lastva, and the construction of a new line from Lastva to Pljevlja in northern Montenegro. The project is linked to the planned construction of an undersea cable from Italy to Montenegro. The EBRD board of directors will decide on 25th April whether or not to grant the loan to CGES. Source: www.mipco.me
German and Russian Companies Show Interest in Investing in Tourism in Montenegro Zeljka Radak Kukavicic, the Deputy Minister of Sustainable Development and Tourism, said that German and Russian companies are interested in investing in adventure tourism and other related activities in Montenegro. She added that one possibility was the development of a camp near the Nevidio canyon and another was to create a kite surfing park at one of the beaches at Velika Plaza. She added that such initiatives generated revenue and benefits for the local population, created new jobs and promoted the protection and maintenance of the natural beauty of the area. Source: www.mipco.me
China will not Give Up on the Bar-Boljare Motorway in Montenegro According to the Chinese Ambassador to Montenegro, Zhi Zhaolin, Chinese companies will not give up on the Bar-Boljare motorway. He added that Chinese companies are still having intensive discussions with Montenegrin officials regarding the construction of the motorway in Montenegro. Zhaolin said that the Minister of Transport and Maritime Affairs of Montenegro, Andrija Lompar, had talked to Chinese companies and banks about the construction of the motorway. He said that he expected that the talks would have a positive effect on cooperation regarding the construction of infrastructural facilities in Montenegro. Source:www.mipco.me
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Privatization and Investments Two Development Projects in the Port of Bar The officials in the Port of Bar are currently working on two development projects that involve putting the undeveloped port land into lease in order to build production, warehouse and infrastructure facilities. One project anticipates finding the partner for construction and development of the new liquid cargo terminal, while other refers to construction of production capacities in free zone area. Both projects, due to the crisis conditions, require financial and technical incentives and adjustments to the potential partner needs. Source: www.b92.net
Montenegro to Start Negotiations with SOCER The Privatization and Capital Projects Council instructed the Tender Committee for valorization of former military property of the locality Orijen battalion in Kumbor to start negotiations with the first-ranked bidder State Oil Company of Azerbaijan Republic – SOCAR. Just to remind, the two bids were delivered to the tender: NCH Consortium consisted of 5 legal entities: NCH New Europe Property Fund II,L.P.(NEPF II); NCH Balkan Fund,L.P.(NCH Balkan);SAPTE SPICE S.A.(SAPTE SPICE);VEL PITER S.A.(VEL PITAR) i Bay View Investments D.O.O.(BVI) and State Oil Company of Azerbaijan Republic(SOCAR). After reviewing the bids, the tender committee decided SOCER to be the first-ranked bidder. The Company offered 1€/m2 annually and variable part of 5% annual revenue. It also offered the investments in the amount of €18.86 million in first, €21.47 million in second, €17.26 million in third year and total investments of €258 million in the 8-year period. Source: www.pobjeda.me
Porto Montenego Announces Three Major New Developments Porto Montenegro, which is on course to become the largest and most advanced marina in the Mediterranean, has announced three major new developments along with the creation of two strategic partnerships: 1) The ground-breaking building of a bespoke luxury hotel along with exclusive residences, a yacht club and a comprehensive spa facility; to be constructed in partnership with Regent Hotels and Resorts‚ one of the most prestigious global luxury hospitality brands. 2) The re-development of a yacht repair and refit facility in cooperation with ASY Bijela in the Bay of Kotor; just across the bay from Porto Montenegro. 3) The doubling up of Porto Montenegro’s current port capacity from 185 to 370 berths. Inspired by Venetian aesthetics, the Regent Porto Montenegro – designed by Reardon Smith Architects and Pisano Atelier – will consist of around 80 units including hotel rooms, suites and multi-room residences, ranging from studios to penthouses with rooftop terraces and private pools. Facilities will include two swimming pools, restaurants, cafés, a library bar, a cigar lounge, and various function rooms in addition to a signature Regent spa and fitness center. During 2012 Porto Montenegro will start the construction project required to double its present marina capacity from an existing 185 to 370 berths. With more than 50 of the new berths reserved for yachts over 45 meters and with a capacity of up to 150 meters LOA, it will become one of the largest yacht ports in the Mediterranean, and will have the greatest capacity for super-yachts. Source: www.mipa.co.me
Montenegro is to be Connected to the South Stream Gas Pipeline Montenegro is to be connected to the South Stream gas pipeline, owned by the Russian energy giant, Gazprom. A representative of Gazprom said in a statement, "The parties have discussed technical opportunities to connect Montenegro to the South Stream Project, after it showed that it was interested at the end of last year. We have decided to work on a feasibility study which will allow us to build a gas pipeline that bends to Montenegro." It is estimated that the South Stream pipeline will carry up to 63 billion cubic meters of gas to Central and Southern Europe. Source: www.balkans.com
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