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Tenders Four Bids for the Tender for the Lease Storehouse “Rakite” in Herceg Novi

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A public invitation has been released for participation in a tender process, through the submission of bids, for the lease of the motor fuel storehouse “Rakite” - Lustica, Herceg Novi. The subject of the tender is the lease of a motor fuel storehouse with an accompanying quay, ‘’Rakite’’ in Luštica, Herceg Novi. Four bidders delivered their bids: Jugopetrol AD Kotor, Adriatic Marinas doo Tivat, Vektra Montenegro doo Podgorica and one natural person Mr. Dušan Radović from Herceg Novi. The Tender Commission will review the bids within defined terms.

Onogošt: Sixth Attempt for Privatization Failed There were no bids delivered for the tender to sell part of the property of a Nikšićbased hotel-tourism company, “Onogošt”. The “Onogošt” company went bankrupt in November 2009 upon the request of Privatization Fund HLT. It had assumed the right to manage the majority package of shares in 2005. The bankruptcy committee called for the sale of part of the property in order to meet the company‘s debts which amounted to €4 million.

The Chinese gave up on HPP on the Morača, Italian companies are in the final phase The Chinese corporation Sinohydro, abandoned their plans to build a hydro power plants on the river Moraca. This was confirmed by the Montenegrin Ministry of Economy. However the corporations Italian Enel and A2A in a consortium with the Montenegrin Power Company (EPCG) are still in the running for the project. Before the Chinese gave up, the Austrian company Strabah also gave up on the project. The Chinese company reported that they were no longer interested in this particular project, but that they were still interested in some other projects in Montenegro. The tender invitation to build a hydroelectric power station will remain open until April 2011, and the best bid will be selected by May 7th, 2011.

The Government Expects €112 Million Privatization

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In the last call, the sixth since last year, bids were put forward to sell the hotel “Trebjesa” in NIkšić and the café “Šavnik” in Šavnik. The starting price for “Trebjesa” was half a million euros, while the café was offered for sale at €16, 000. Associated land was also offered with both properties.

The Government of Montenegro headed by Prime Minister Igor Lukšić plans to take in about €112 million in the budget from privatisation – says the Economic - Fiscal program for 2011. The largest share of this amount is expected to be realized from the privatisation of Ulcinjska rivijera (€22.3m), Port of Bar (€21.75m), Container Terminal (€20.4m) and the Institute Simo Milosevic (€ 16.8m). The state plans an income of €8.9million from the privatisation of Montecargo, €11.6million from the shipyard Bijela and €4.5million from Barska plovidba. The sale of Pobjeda should bring €3.2m, and Željeznički prevoz (Maintenance department) should bring around €13.7million.

Contract Terminated by Atlas Group

Consortium Headed

Aktor Informed of the Annulment of the Tender Process, Negotiations Started with the Chinese

Having regard that the Tender Commission in the tender procedure for the purchase of 75,0557% of shares of the company Montepranzobokaprodukt Tivat has failed to reach the agreement on the Contract, in accordance with the Tender conditions, the Privatization Council decided to abort negotiations with second-rated bidder Consortium headed by Atlas Group and pronounced the tender unsuccessful. The tender procedure will be re-invited in this year.

The Government of Montenegro adopted the decision, taken by the council for the construction of the highway Bar-Boljare, to annul the tender for the selection of a developer and concessioner for the highway. The letter of termination concerning previous business was sent to Greek Aktor. This created new conditions to enable the commencement of negotiations with the Chinese. Initial contact has already been made. If the negotiations are successful, work on the construction of the highway could start in spring.

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