InFocus Montenegro by Diplomacy&Commerce magazine

Montenegro Diplomacy&Commerce

BUSINESS OVERVIEW

BYRON KNOWS

Famous English romantic poet Lord Byron scribed this description ‘At the birth of the planet the most beautiful encounter between land and sea must have been on the Montenegrin coast’.

THE ENDLESS SAND Velika plaža in Ulcinj (12.5 km) is one of the longest sand beaches in Europe.

TREES LIVE THAT LONG?

The oldest tree in Europe lives in Bar: The Old Olive Tree is over 2,000 years old.

05 DEEP, DEEPER, TARA! The Tara canyon is the deepest canyon in Europe (1333m) and second in the world.

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NOTRE TRIPHON IS OLDER

Kotor’s St Tripun cathedral is more than 50 years older than Paris’s Notre Dame cathedral.

WINDING BAY

The Bay of Kotor is the southernmost fjord in the world. It is a winding bay on the Adriatic Sea.

THE PRIMAEVAL FOREST

FIRST SAILORS

Seafarers Stevan Vukotić (18231826) under Russian and Ivo Visin (1853-1859) under the Austro-Hungarian flag were the first sailors from South Slavic lands who sailed around the world.

Biogradska Gora is one of the few remaining rainforests in Europe, which is home to numerous plant and animal species.

MONTENEGRO 2017

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MONTENEGRO 2017

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— Text —

Žikica Milošević

SAFE AND SECURE RELIABILITY AND MARKET FOR QUALITY FOR 06 38 FOREIGN INVESTMENTS SUCCESS

FOREWORD

WESTWARD JOURNEY

DRAGICA SEKULIĆ

WE HAVE SECURED SAFE AND QUALITY A SAFE AND STABLE 42 PARTNER 16FUTURE PREDRAG BOŠKOVIĆ

Clear sign of orientation

PROKOPIJE PERIĆ

e prepared for you second year in the row a business overview of Montenegro, which this year comes in the light of country's NATO accession and opening of the 28 out of 33 chapters of the accession process, with 3 of them closed. The Montenegrin government decided to enter the mightiest military organisation in the world, the North Atlantic Treaty Organisation. This is a clear sign of the country's westward orientation, and hopefully it will accelerate its Euro-Atlantic integration, basically integration into the European Union, which is desired by pretty much everyone. NATO membership was a desired goal for the long-standing government in Montenegro. However, it was subjected to heavy quarrelling inside Montenegro, with no referendum held to address this question. Nevertheless, Montenegro has become the smallest and latest addition to this military alliance. Montenegro's army is rather small, but it also has few enemies. Montenegro has rather good relations with all neighbours, so NATO membership is purely declarative: it is a statement that the country has a westward trajectory and it is a nice remark for Milo Đukanović. Unfortunately, the prize of security as a collective and the prospects of accelerating EU-membership comes with a price tag. If it makes the country more stable and brings it closer to the EU, fair enough. Nevertheless, it is a clear declarative sign of the country’s westward journey, as well as kissing goodbye to the neutrality that Serbia values so much. International missions will not take many Montenegrin soldiers, so the dangers to them are minimal. Now Montenegro is part of a large Transatlantic family, just one more step closer to its final objective.

SIGNIFICANT CONTRIBUTION TO 44 IMPLEMENTATION OF

PAVLE RADULOVIĆ

VESELIN MIJAJLOVIĆ

SUCCESS AS A RESULT OF SERIOUS APPROACH TO TOURISM

INVESTMENTS

WE ARE HOPING FOR NEW ERA – OLD CONTINUATION OF 24 TRADITION 47 QUALITY DIALOGUE BRANISLAV MIĆUNOVIĆ

THE SAFEST AND FASTEST LINK TO THE WORLD ŽIVKO BANJEVIĆ

RUPICE WINERY MONTENEGRO

SUPPORTING MONTENEGRO ON 48 THE EU PATH DUBRAVKA NEGRE

HUGE INVESTMENTS WILL PAY OFF

WE EXERCISE RESPONSIBLE POLICY

VELIMIR MIJUŠKOVIĆ

RADOJE ŽUGIĆ

COMPARATIVE ADVANTAGES IN TOURISM, AGRICULTURE AND ENERGY MILOŠ JOVANOVIĆ

NEXT SUMMER WILL BE OURS

LUSTICA BAY

DECADES-LONG LEADERS OF 54 MONTENEGRIN TOURISM

BUDVANSKA RIVIJERA

THE MOST IMPORTANT THING IS FOR GUESTS TO BE SATISFIED

ŽELJKA RADAK

TURN TO AMS OSIGURANJE FOR 66 CAREFREE HOLIDAY AMS OSIGURANJE

Special thanks to

Montenegro

EMBASSY OF MONTENEGRO IN BELGRADE www.diplomacyandcommerce.rs

Editor in Chief

BUSINESS OVERVIEW

SAVO IČEVIĆ

ŽIKICA MILOŠEVIĆ

zikica.milosevic@color.rs Magazine director

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MONTENEGRO 2017

DRAGICA SEKULIĆ Economy Minister in the Montenegrin government Podgorica

INTERVIEW

SAFE AND SECURE MARKET FOR FOREIGN INVESTMENTS Joining NATO means that the country is now becoming a safer and more secure market for foreign investments considering that the memberhsip in the Alliance implies that a member is a safe country with good future

oday, as a member of NATO, Montenegro is a stable and safe country which is deep in the process of the EU accession, and, as such, is also a favourable environment for development of economic activities and attracting foreign investments. The Ministry of Economy is implementing a series of business support programmes with most of them based on providing financial support to investors, i.e. entrepreneurs, and small and medium enterprises, which are disbursed as subsidies, refunds or reliefs, or reduction in fees and taxes, depending on the programme. Although financial support is probably the most important aspect of business support, we, in the Ministry, have an array of other technical support, advisory, logistics and other types of programmes. Economy-wise, how important is Montenegro's entry to NATO? What impact does Euroatlantic integration have on Montenegro's investment ratings and attracting foreign investors? ― I expect our entry to NATO to bring some real benefits to Montenegro in the

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shape of a faster economic growth. I also expect more interest from American and other investors. Joining NATO means that the country is now becoming a safer and more secure market for foreign investments considering that the memberhsip in the Alliance implies that a member is a safe country with good future. The NATO

the EU – so far we have opened 28 negotiation chapters, with three of them now temporarily closed. So, both the European and Euroatlantic integration, coupled with our continous effort on improving our business environment, all send a clear message – Montenegro is a serious investment destination, willing and ready to valorise substantial potential that we have.

I EXPECT OUR ENTRY TO NATO TO BRING SOME REAL BENEFITS TO MONTENEGRO IN THE SHAPE OF A FASTER ECONOMIC GROWTH

What are the biggest economic challenges this and next year? ― The challenges that we face are also global challenges considering that global economy and markets work along the same or similar principles. In that respect, Montenegro is no different to any other country which are working on attracting investments, boosting their economy's competitiveness, and increasing employment. To this end, Montenegro has been constantly implementing measures geared towards increasing competitiveness, providing bigger incentives, improving its institutional framework and business environment etc. We have also been working on developing good infrastructure and valorising natural resources through imple-

membership for Montenegro could mean many good long-term economic effects for Montenegro which, in turn, can improve our credit rating, the stability for investors, the aggregate demand, and overall economic development. In terms of European integration process, Montenegro has made significant progress in talks with

mentation of development projects in the areas of energy, tourism, agriculture and processing industry. Last but not least, we need to work more on improving our macroeconomic stability. We are going to finish what we have started and tirelessly work on devising new policies that would tackle global challenges. Can Montenegro rely on foreign investors in regard to creation of new jobs? ― The Montenegrin government has been continously implementing programmes which aim is to attract new investments, promote business development, boosting employment, and developing small and medium enterprises. The government implements these programmes in order to encourage foreign investors, and to develop domicile businesses and Montenegrin entrepreneurship. The best example of this is the Decree on Promotion of Direct Investments thanks to which we are creating a more favourable environment for doing business, which, first and foremost, is going to facilitate creation of new jobs. We, as in the government, were pleased to see that mostly domicile companies came forward with what is considered here, in Montenegro, pretty substantial investment plans. Through two public calls, a total of 6 investment projects of total value of around 7 million EUR will be implemented and, as a result, 253 new jobs will be created. There is an ongoing evaluation of the offers that arrived following the third public call with most of the bidders being domicile companies. And I am talking only about segment that the Ministry of Economy is in charge of which is just one of the programme out of nine that we have been implementing. We even won't go into programmes implemented by the ministries of agriculture, tourism and others. In summation, FDIs are an important factor in any economy and, in this respect, we are recognized as a country that has a favourable business environment and that offers investment safety. On the other hand, domestic economy has recognized the benefits of incentive measures that we implement, and we are happy with the fact that such policy is yielding results in the employment sector too. How much did Montenegro manage to preserve its large production companies during the transition process? ― Previous Montenegrin companies have managed to preserve our aluminum and steel industry despite exceptionally unfortunate developments on the global stage, and the then investors not knowing how to cope with the situation. I have to underline that KAP (the Podgorica Alumi-

num Combine), the Niksic Steel Factory and the Bauxite Mines are all operational, and that, for the first time in their very long history, are not dependant on state aid, i.e. they are not receiving subsidies from the state budget. So, not only did we manage to preserve these production capacities, but, for the first ever, the state doesn't have to bear incurred costs, but it rather profits from it considering that employees of these companies are now receiving regular salaries, and the companies are paying taxes and contributions. What is also really important is that the entire raw-material supply chain, that goes together with these big production companies, has not been broken.

FDIS ARE AN IMPORTANT FACTOR IN ANY ECONOMY AND, IN THIS RESPECT, WE ARE RECOGNIZED AS A COUNTRY THAT HAS A FAVOURABLE BUSINESS ENVIRONMENT AND THAT OFFERS INVESTMENT SAFETY What is the Ministry doing to promote the growth of new domicile companies and in which segments? ― Through having a intense dialogue with businesses, with the view of further improving the environment for doing business and, by that, boost employment too, we have noticed that company owners are not that well informed, or not informed at all about numerous Ministry's projects which relate to financial and other types of assistance for businesses. Hence, we have decided to launch a caravan of good business opportunities that will tour all municipalities in our country with the view of informing business owners with all the programmes of business development support that the Ministry of Economy has been implementing. We are being supported by the UN Development Programme in the implemention of this project called „Enhancing the Competitiveness in Montenegro“. The main goal of the project is to activate the SME sector, attract new investors and increase employment especially in lesser developed parts of the country through improving the doing business environment, and, by doing so, increase competitiveness of companies and overcome

regional social and economic differences. It is important to mention that, thanks to Montenegro being a member of the international trade organizations like the World Trade Organization, the CEFTA, and the EFTA, as well as to concluded free trade agreements with several countries, we have either eliminated or curbed the challenges associated with small markets. So, through a series of its measures, the Montenegrin government has created a substantial support to economic development that spans across several levels – from financial incentives and tax reliefs to favourable loans. It is a well-known fact that the Ministry, which I am helming, is focusing on development of small and medium enterprises, which we consider the priority, and this is done through enabling better access to SME funding, securing guarantees, training entrepreneurs etc. What are the important measures for advancing the business climate from the viewpoint of your Ministry? ― The Ministry of Economy has been implementing many financial and technical support programmes for domicile and foreign companies. We are talking about a total of nine support programmes which we have been additionally promoting through having direct meetings with business people in every municipalities, and presenting the Decree on Promotion of Direct Investments which stipulates financial incentives for new investments in Montenegro. The third public call was done in May and we are currently evaluated bids. Six investors, which participated in the first and second public call, are now successfully implementing state-subsidized projects. The second project that we have been implementing for years now is developing business zones which identifies the locations which are considered unique entities in areas governed by the local self-governments, and which are fully or partially infrastructurally equipped. Apart from a joint space and infrastructure, in these locations investors are entitled to additional tax and administrative relieves, both state and local. For more information please go to the website www.bizniszona.me . Then there is a programme for promotion of cluster development in Montenegro which stipulates financial support for companies that are joined in clusters. The goal of the programme for enhancing regional and local competitiveness through harmonization with the requirements of international business standards is to provide financial support to companies, especially those from lesser developed municipalities, so MONTENEGRO 2017

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that they can improve their competitiveness as much as possible primarily through harmonizing their operations with the requirements set out in international production standards, and receiving support for obtaining accreditation for conformity assessment. The programme supporting modernization of industry is aimed towards boostin operations through investments in technical equipment for production facilities, i.e. investments in equipment. The programme of advancing innovation in small and medium enterprises provides financial support in the shape of grants for development of competitive and innovative SMEs, and will contribute to higher efficiency of the companies in processing industry. Then there is the programme that supports development of entrepreneurship and mentoring for SMEs through which we have been supporting those companies that want to apply for loans from Montenegro's Investment and Development Fund. Every single of these programmes can further boost our economy, especially SMEs, and, providing that company owners participate in all or the majority of them, we are talking about a really substanial support. Last but not least, every interested investor can now have insight into investment locations in 23 Montenegrin municipalities via the Investment Locations in Montenegro website - www.investmentlocations. me . Apart from the information about in-

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FOR THE FIRST TIME IN HISTORY OF MONTENEGRO, THE POWER GENERATED FROM WINDMILLS WILL BE DISTRIBUTED VIA COUNTRY'S ELECTRICITY GRID vestment locations, the website contains all legal acts relating to investing, and the information about the investment incentives and Montenegro's fiscal policy. We are going to use all the meetings that we have had with business people, the direct communication with them and the visits to municipalities, towards further improving the projects that we are implementing and helping companies as much as we can. Only by removing obstacles from doing business can we facilitate uninterrupted development of entrepreneurship, and, as a result, creation of new jobs. What progress has been made on largescale infrastructure and strategic projects launched in the past few years? ― When it comes to our Ministry, we are really pleased with the development of

our projects especially if we bear in mind the challenges that we had to overcome in the last few years. By that I mean primarily energy projects. If we are talking about the most important projects, we should definitely mention the underwater cable which is a sort of a bridge used to transport energy between the Western Balkan countries, and Italy, i.e. the European Union. This submarine cabel project, along with its anciliary infrastructure, is very complex and it entails the laying of a 400-km-long underwater cable, in addition to the laying of an underground cable, and the construction of converter facilities both in Italy and Montenegro. On the Montengrin side, the project also entails construction of a transformer station and a 180-km-long power transmission line which will stretch throughout Montenegro, have over 650 power transmision pillars and over 130km of access roads. For the first time in history of Montenegro, the power generated from windmills will be distributed via country's electricity grid. This is in relation to the windmill in Krnovo near Niksic which will be launched by the year end. The projects relating to the construction of small hydro power plants are developing in line with the planned dynamics. In the following period, we are also going to focus on the monitoring the implementation of the signed contracts because we are very close to reaching our national goal of reaching a 33% share in the final consumption. There is also interest shown in large-scale hydro power plants especially on the Morača River. Furthermore, Škoda Praha has an alternative solution for financing of project in the Block II in the Pljevlja Thermal Power Plant. Montenegro's state power supplier is planning to reconstruct the Block I, as well as carry out its ecological rehabilitation. There is also a plan of implementing another large-scale project of re-directing the water from the River Zeta to Lake Krupac. The implementation of this project will increase the annual production of the Perućica Hydro Plant by approximately 30GWH, or in financial terms, by between 2.5 million and 3.7 million EUR. We are also preparing a feasibility study for the hydro power plant on the River Lim. Then there are concluded contracts stipulating oil and gas exploration with the consortium of companies ENI and Novatech in four blocks, and with the Greek company Energean in two blocks. So, we have all prerequisites in place for this potential to be fully explored, and if any is discovered, to valorise it in a way where almost 65% of the revenue it generates will go into the state budget, out of which 85% will end up in a special fund that will be purely developmental.

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PREDRAG BOŠKOVIĆ Montenegro's Defence Minister

INTERVIEW

WE HAVE SECURED A SAFE AND STABLE FUTURE 16

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With its NATO membership, Montenegro has strengthened its foreign policy position, and became a guarantor of stability and security in the Wester Balkans. At the same time, the membership is a proof of our country's longterm committed effort on fulfilling all of the obligations stemming from the European and Euroatlantic integration

e are talking to the Montenegrin Defence Minister, Predrag Bošković about the importance of Montenegro joining NATO, and security challenges in the Western Balkans. What changed for Montenegro following the country joining NATO? ― There are many advantages for Montenegro as a NATO member. In political and security terms, Montenegro has become a part of the biggest collective security system which, in translation, means that if our security is jeopardized so is the security of other 28 member states, in line with the principle of absolute solidarity. To be a part of this family gives us an opportunity to equally participate in creating the global security policy. From the economic aspect, all parametres have shown that joining a collective security system is much more efficient and profitable than having a neutral status. We have become a part of a wider market which is a prerequisite for a more comprehensive placement of Montenegrin products abroad. Montengro's international importance has also grown, while its foreign policy status has become stronger. Considering our geo-political position, our country is set to become a guarantor and a factor of regional security in the Western Balkan region which, in turn, attracts more international attention. Bearing in mind the current global and regional security developments, I believe that us joining NATO is the best guarantee of national security, and the preservation of Montenegro's sovereignty and territorial integrity. What were the most important milestones on the 11-year-long journey to the Euroatlantic integration? ― Since reinstating its sovereignty in May 2006, Montenegro has been committed to meeting the set foreign policy goals relating to the EU and NATO membership. For eleven years we have been conducting very detailed and comprehensive reforms. In 2009, we became a part of the Membership Action Plan (MAP) which meant that Montenegro clearly stated its Euroatlantic aspirations. By doing so, our country was given access to advice, assistance and practical help from NATO and its member states. Following the summit in Wales, allies have started an intense, focus-driven dialogue with Montenegro with the country stepping up its efforts on reforming its defence and security sector and promoting the rule of law and citizen support for

NATO membership. Our defence sector has been reformed in line with the requirements of the North Atlantic Alliance. We have achieved significant results in equipping and modernizinng our army too. We have a accomplished a lot in a relatively short period of time which did not go unnoticed by the allies. How would you rate Montenegro's security policy in the context of NATO membership? ― One of the most important benefits of NATO membership is a guarantee of security that the Alliance provides. Since November 2006, when we became members of NATO's Partnership for Peace, we have been following the Alliance's standards. We have conducted the required defence reforms, modernized our army, participated in international peace missions, and have been responsibly fulfilling our tasks on our road to becoming a member.

OWING TO OUR MATURE INTERIOR POLICY, OUR PROFESSIONAL ATTITUDE TOWARDS ALL GOVERNMENT BRANCHES AND THE SUPPORT WE GOT FROM THE INTERNATIONAL PARTNERS, WE HAVE MANAGED TO PRESERVE OUR COUNTRY'S INTEGRITY AND SUBJECTIVITY There were quite a few political and safety pressures on Montenegro especially after our Euroatlantic integration effort entered its final stage. Owing to our mature interior policy, our professional attitude towards all government branches, and the support we got from the international partners, we have managed to preserve our country's integrity and subjectivity. Having a place at the table where the most important political and security decisions in the world are made is a historic success for Montenegro. NATO will always have a reliable ally in us in the security-sensitive area like the Western Balkans. Montenegro's policies will be geared towards encouraging other regional countries to follow in our footsteps because only in that way they are going to be able to create a safe and stable future. What impact did this process have on the Montenegrin Army?

― The Montenegrin Army has gone through demanding reforms in terms of reaching the interoperability level to match that of NATO and its partners, and improving the Army's capability in line with the NATO stanards and modernization. All of this brought many benefits to our army in regard to training, education and equipment. By integrating ourselves into NATO's defence system we became a part of the Alliance's defence planning process via which the member states harmonize the size and the ability of the armed forces in the context of collective defence. For us, this means a more rational use of resources because we don't have to develop all of our capacities which, otherwise, we would have to if we weren't a NATO member. What implications does the membership have on Montenegro's participation in international forces? ― The participation in international missions has a great importance for improving the capacity of our army and its modernization. Currently, we are participating in the NATO mission called Resolute Support in Afghanistan, in the town of Masaar-e-Sharif in the north part of the country, where our soldiers are deployed in protecting the consultancy teams of the Afghan Army. We also have staff at the HQ of the Regional Command North. We have our officer at the Operations Command in Northwood, Great Britain, as a part of the EU's peacekeeping mission called Atalanta. Under this operation, in early May this year, we sent a nine-member ship protection team which delivers aid in the Somali territorial waters within the framework of the UN World Food Programme. Occasionally, we send our navy officers to be stationed on the ships of Italian and Greek navy, on a bilateral basis. We also have an officer in the EU mission called EUTM Mali in Mali who trains logistics units of the Military of Mali. Furthermore, we have two observers in the UN mission MINURSO in Western Sahara whose job is to supervise truce in the border zone between the Western Sahara and the Kingdom of Morocco. Around 22% of the Montenegrin soldiers were hired in various international missions and operations which is highly valuable for us. What do you think of the current situation in the region? ― The Western Balkan area was the place of many conflicts which had been motivated by hegemonistic, national or religious reasons. Certain members of the political elite are still promoting the idea of naMONTENEGRO 2017

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tional division which, only recently, split this region apart so, all in all, the Western Balkans is still a „shaky“ ground. I am confident that Montenegro's membership in NATO is important for the safety, peace and stability of the entire Balkan region, as it is the European future of this region which was recently confirmed at the EU Summit in March 2017. Montenegro has managed to resist many pressures and interests of various groups while staying on its course and fostering good bilateral relations with everyone. We used our institutional power to adequately respond to various interferences in our national interests and decisions, even the attempts of destroying and destabilizing our system. Which are the most important initiatives for improving stability in our region? ― Montenegro is aware of the importance of regional cooperation with the view of preserving peace, improving stability and creating conditions conducive to general prosperity in Southeast Europe. In terms of defence and security, the priorities are reforming the security sector, supporting the European and Euroatlantic integration, building trust with the view of improving regional stability, and cooperating in weapons control, fighting terrorims, smuggling of the weapons for mass destruction, combating organized crime and all types of human and drugs trafficking etc. The regional countries have raised the cooperation to an institutional level through several initiatives like the US-Adriatic Charter (later renamed into the A5 Initiative), the RACVIAC and the SEDM. Furthermore, Montenegro is a member of the ADRION Initiative, the Defence Cooperation Initiative (DECI), and the Balkan CHOD Forum under which auspices we are developing and improving the military cooperation with the regional countries. By actively participating in the aforementioned initiatives and developing strategic partnership with the regional countries, Montenegro has been working on improving the regional cooperation and good neighbourly relations, fortifying the region's defence capacity, and contributing to the collective effort with the goal of facilitating the integration of the Western Balkan countries into the Euroatlantic community.

The experiences of the countries from the former Eastern Bloc have shown that NATO membership preceded a faster European integration process because these countries had to first transform in terms of security in order to embark on deeper social reforms which entailed accepting democratic values and ideals, adopting the principles of market economy, and achieving economic growth. The EU and NATO integration differ in terms of mission, volume and content, but they have the same end goal which is supporting reforms and reaching the accepted standards.

How is the NATO membership going to affect the EU integration process? ― The European and Euroatlantic integration are complementary processes which can be seen in the fact that the Chapter 31 in the EU accession talks is dedicated to security and defence policy.

How beneficial is Montenegro's membership in NATO going to be economically-wise? ― Our country makes most of its revenue from tourism. It is only logical to think that tourists would rather spend their holiday in a country that rests its safety on the most

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AROUND 22% OF THE MONTENEGRIN SOLDIERS WERE HIRED IN VARIOUS INTERNATIONAL MISSIONS AND OPERATIONS WHICH IS HIGHLY VALUABLE FOR US

functional alliance of this kind in the world. Montenegro is a very attractive ground for foreign investments. Natural resources and certain tax reliefs for foreign investors (like 9% income tax which is the lowest tax rate in the region and compared to many other countries in the world) have brought here world-renowned investors who have invested in our country. We expect for foreign investments to grow which would be very beneficial for the Montenegrin economy. Thanks to the NATO membership, Montenegrin companies now have an opportunity to become a part of a large international defence market. So far, 89 of original Montenegrin products were given NATO's National Stock Number (NSN) while 119 companies were assigned the NCAGE code. NATO's NCS code system is devised and standardized to suit the defence requirements of NATO members and their partners. In this way, companies and products are included in NATO Master Catalogue of References for Logistics (NMCRL) which currently has over 18.5 million entries and 2.8 million producers and other organizations. It is very significant to be included in this database. Also, this is a requirement for a company to be included into the database of potential suppliers of NATO commands and agencies like NATO Support and Procurement Agency (NSPA), NATO Communications and Information Agency (NCIA) and others.

PAVLE RADULOVIĆ

Montenegro’s Minister of Sustainable Development and Tourism

INTERVIEW

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The Ministry expects even more tourists to visit Montenegro as their holiday destination, and a significant increase in all tourist traffic indicators. Tourism is one of the most important factors and the foundation of the development of the Montenegrin economy

he Montenegrin Minister of Sustainable Development and Tourism, Pavle Radulović is optimistic about the ongoing tourist season, and about tourism as one of the leading segments of the Montenegrin economy. How much does tourism directly contribute to Montenegro’s economic growth today? ― Tourism has had a huge direct and indirect contribution to Montenegro’s economic growth in the last ten years, both through generated revenue and through improving the activities in transport, travel agencies, commerce, culture, sports and recreation and other. In 2016, tourism and travelling directly contributed to the GDP with over 11%, while the total contribution stood at over 22%. We expect this share to increase in the following period as a result of direct revenue that has been growing year-on-year, as well as through boosting tourism-related activities and businesses. Tourism is one of the most important factors and the foundation of the Montenegrin economy considering that it is expected to exceed a 31% share in the national GDP in the next ten years. What do you expect from this tourist season? ― Tourism in Montenegro has been expanding in the last few years, while the relevant indicators have been growing too. I expect this growth to continue this year too. Last year, over 1.8 million tourists visited Montenegro which was a 6% hike compared to 2015, and we are very happy with this output which is a result of hard work of our institutions and the private sector. Also, in 2016, our tourism revenue broke the record as it stood at 881 million euros.

We have many reasons to be optimistic and have high expectations this year considering that we can see a growing interest from Russian and European tourists. The Scandinavian market has just opened and the newly established direct flights make our country more accessible to tourists. Also, it is important to mention that, in the first four months of this year, Montenegro was visited by 21% more tourists relative to the same period last year which gives us even more reason to be optimistic. We expect more tourists to pick Montenegro as their holiday destination, and, as a result, the continuation of positive trends and a substantial increase in all tourist traffic indicators. How much does tourism indirectly promote development of other sectors, from construction to culture and various other services? ― Whether directly or indirectly, tourism increases activities in many other economic segments including commerce, transport, construction, culture, banking, agriculture and others. This is very important especially for a small country like Montenegro. Together with tourism, which is considered a sector in expansion, other sectors have been developing too because it is important to keep tabs on the growing demand for certain products and services, and on large-scale investments in tourism and catering facilities due to an increased number of tourists. Also more tourists from different countries contribute to the development of various cultural events like music and theatre festivals. All of this increases our level of satisfaction with the positive influence of tourism on the rest of the economy, and an increasingly better connection between certain economic

segments and tourism which facilitates mutual development. How close are you to turning Montenegro into a year-round tourist destination? ― We have been relentlessly conducting a lot of activities on creating conditions necessary for Montenegro to become a yearround tourist destination which is the strategic goal of tourism development in our country. We have been working on creating a diversified, high quality tourist offer, developing tourist products with certain target groups in mind, creating and promoting authentic tourist attractions, as well as improving the off-season offer. Also, we have been especially focusing on developing of special kinds of tourism like the MICE segment, active holidays, educational, sporting, health and other types of tourism which bring tourists in off-season too. We have already seen notable results of the implemented and ongoing activities which include improving the quality of services and presenting a substantial number of new offers. An increasing number of tourists are interested in visiting northern parts of Montenegro, i.e. in participating in active holidays which will enable them to experience everything that Montenegro, as a tourist destination, has to offer, including history, culture and beautiful nature. How much progress has been made with the plans for promoting development of the undeveloped areas in Montenegro with the help of tourism? ― We have been working hard on developing tourism and infrastructure in lesser developed areas of the country, mainly in its north, which is also one of our priorities. It is encouraging to see a growing interest

WE HAVE BEEN WORKING HARD ON DEVELOPING TOURISM AND INFRASTRUCTURE IN LESSER DEVELOPED AREAS OF THE COUNTRY, MAINLY IN ITS NORTH, WHICH IS ALSO ONE OF OUR PRIORITIES MONTENEGRO 2017

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of investors for that part of the country. For instance, Sheraton Hotels has opened the Four Points by Sheraton Hotel in Kolašin while the construction of the Westin Hotel and new ski slope Kolašin 1600 with a ski left and 4km ski track is ongoing. There is a plan to build a 21km-long-ski track on the Durmitor Mountain with the development of the first 4 kilometres, with a ski lift and artificial snow machines, due to start soon. Also, investments have been made in several smaller hotels in the north part of the country, while other hotels got new owners and we expect them to start the revitalization of these hotels soon. How much progress has been made in expediting building permit issuing procedures in that context? ― Since the new Law on Planning and Construction has been drafted and is currently in the procedure, we are now going to start implementing some significant changes in this segment which will result in the system running more smoothly and being faster, as well as in improvement in planning, securing better quality of space, and creating conditions for easier and faster initiation and implementation of investments. The new law entails abolition of building permits as an administrative act. However, certain procedures relating to launching investments will remain in place. We are planning on drafting a detailed planning of the entire Montenegro, backed by a good cadastral map, and, in order to start building, investors will have to obtain a document with urban planning / technical requirements for a certain land plot, draft a project that is in line with these requirements i.e. with the existing plan, and report construction to the relevant inspection authorities which will then come out, to the site, to ascertain whether the construction

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is in accordance with the project or the plan. Also, it is important to mention that, for the first time ever in Montenegro, this law recognizes the category of construction on a section of urban land which will eliminate bottlenecks in investments that are created due to unresolved ownership and legal issues which have happened in the past. We think that these solutions will substantially improve the entire system, and that investors will recognize the improvements outlined in the new law.

THE NEW LAW ENTAILS ABOLITION OF BUILDING PERMITS AS AN ADMINISTRATIVE ACT. HOWEVER, CERTAIN PROCEDURES RELATING TO LAUNCHING INVESTMENTS WILL REMAIN IN PLACE Next year, Montenegro is due to open negotiations about Chapter 27 in the EU accession talks. What is your approach to this challenge which remains one of the most demanding for other candidate countries? ― We are about to open negotiations about Chapter 27, and based on our communication with the European Commission (EC), this chapter could be opened by the end of 2017. In the last period, Montenegro has met all the conditions and standards set by the European Commission, and, in early April, we submitted our negotiation positions which we are currently harmo-

nizing with the EC. In parallel with that, we have been working on a series of new laws, and on construction of environmental infrastructure like transfer stations, recycling yards, waste water filtering facilities, landfills and dealing with the so-called black environmental spots. We have also started mapping Montenegro’s territory for the purpose of the Natura 2000 project. It is important to mention that we have a clear plan on the back of which we are going to be implementing the EU’s Acquis by 2020 and, in line with the set priorities, gradually solve unsettled issues. This plan is a part of the National Strategy for Chapter 27 and it sets the deadlines and identifies the stakeholders in all of the activities relating to the transfer of the EU’s Acquis, and, more importantly, to the implementation of all environmental and climate change regulation. How can tourism contribute to environmental sustainability? ― The principles of sustainable development of tourism entail optimal use of environmental resources, implementing measures toward mitigating climate change, reducing vulnerability of nature’s systems, and preserving cultural heritage. In the context of green economy and the said principle, we recognize a big opportunity in further developing tourism based on the harmonization of the interests of economic development with the needs of environmental protection and the conservation of natural resources, as well as on the approach that involves adapting to the negative consequences of climate change and their mitigation. How do you harmonize tourism goals with environmental protection and largescale energy and construction projects, for instance? ― The 2030 National Strategy for Sustainable Development is the umbrella document for sustainable development of Montenegro. The Strategy regulates an improved national sustainable development policy by setting a comprehensive framework for the national response to challenges that we encounter in reaching sustainable development of the Montenegrin society by the year 2030, while being mindful of the requirements that Montenegro needs to fulfill on its way to the EU membership. In that context, the Strategy’s main focus is on developing four groups of national resources – human, social, natural and economic. In this way, we are boosting the inter-sectoral approach and have a comprehensive view of all of the dimensions of the sustainability of national development.

BRANISLAV MIĆUNOVIĆ

INTERVIEW

WE ARE HOPING FOR CONTINUATION OF QUALITY DIALOGUE

Montenegrin Ambassador to Serbia

During the mandate of the previous government, Serbia and Montenegro have established a climate of trust in their political relations, which is also what we expect to happen with the new Serbian government, Prime Minister Ana Brnabić, and Presidentelect Aleksandar Vučić

he bilateral relations between our two countries rest on a good dialogue between top officials and cooperation on many issues – says H.E. Mr. Branislav Mićunović, the Montenegrin Ambassador to Serbia. How would you rate the current bilateral relations between Serbia and Montenegro? ― The bilateral relations between Montenegro and Serbia are good, and during the mandate of the previous government, Serbia and Montenegro have established a climate of trust in their political relations, which is also what we expect to happen with the new Serbian government, Prime Minister Ana Brnabić, and President-elect Aleksandar Vučić. We have a continous political dialoge between top officials, and,

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in the last six months alone, Prime Minister Duško Marković officially visited Belgrade, President Filip Vujanović attended the reception following the inauguration

THE EU INTEGRATION IS IMPORTANT FROM THE ASPECT OF PRESERVING PEACE AND STABILITY IN THE REGION, AND THEY ARE A GUARANTEE THAT WE ARE NOT GOING TO REPEAT THE MISTAKES FROM THE PAST

of President Aleksandar Vučić, while two presidents also had separate bilateral meetings. The two countries are cooperating excellently in the European integration process where the exchange of information and implementation of joint projects is very impressive considering that Montenegro and Serbia have advanced the most in this process among all regional countries, and are the only ones to still actively negotiate with the EU regarding membership. The cooperation is good in all other areas too – from tourism, education and science to culture and commerce. This certainly doesn't mean that there is no more room to advance the cooperation further, primarily in economy and infrastructure. The implementation of large-scale infrastructure projects, like the Bar-Belgrade motorway and the reconstruction of the

Bar-Belgrade railway, as well as the project of the Transbalkan power energy corridor, are certainly going to contribute to deepening of the connection between the two countries, and the creation of prerequisites for expediting economic development in our respective countries, as well as in the entire region. How much do European initiatives for better networking between the Western Balkan countries, like the Berlin Initiative and Berlin Initiative Plus, actually effect the networking between regional countries? ― All of the countries in our region have a clear goal of becoming EU members, and this goal has been constantly validated by both the EU and the member states since the Thessaloniki Agenda in 2003. Still, the implementation of the reforms required for a country to become an EU member is a long and quite demanding process which definitely affects the enthusiasm of our citizens for the EU integration. Hence, it is exceptionally important for the most influential countries in the EU to have recognized the importance of initiatives like Berlin Process and Berlin Process Plus which will be the catalysts for stronger European integration processes in the Western Balkans. Setting up special funds for the implementation of the most important infrastructure and IT projects, and establishing the Regional Youth Office are certainly the right set of measures that will contribute to raising awareness about the advantages of the EU integration in both politicians and citizens. How is this new networking process through the EU integration different to earlier historic ties? ― The EU integration is important from the aspect of preserving peace and stability in the region, and they are a guarantee that we are not going to repeat the mistakes from the past that have cost us all very dearly. In the end, the EU integration is in the best interest of the candidate countries since it implies democratic transformation of the society, and adoption of the highest possible standards in all areas which will benefit our citizens. Do you think that Montenegro joining NATO will affect the relations between the two countries? ― Montenegro and Serbia have different priorities in their foreign policies in accordance with their own national interests. Since declaring independence, Montenegro has been very clear about wanting to join the Euroatlantic integration processes which has been success-

fully realized recently with our country joining NATO. On the other hand, Serbia has been implementing the policy of military neutrality. Also, both countries recognize and respect these decisions as internal and sovereign issues of each country. Serbia is interested in having a good cooperation with NATO which the country is implementing through the Partnership for Peace programme and the Individual Partnership Action Plan (IPAP) that is the highest level of cooperation between NATO and a country that does not wish to be its member. We think that through Montenegro's membership in NATO, we can use this framework to

AFTER SPENDING YEARS AS THE DIRECTOR OF THE MONTENEGRIN NATIONAL THEATRE AND THE CULTURE MINISTER, I AM CONTINUING THE COOPERATION WITH THE SERBIAN CULTURE WITH AN EQUAL AMOUNT OF LOVE AND EFFORT NOW, IN MY CAPACITY AS THE MONTENEGRIN AMBASSADOR further develop cooperation not only in the defence segment, but also in regard to mitigating the growing security concerns, where the Alliance undoubtedly plays an important role, like migration, fighting terrorism, cyber attacks and responding to crisis situations. You are a theatre director, the former culture minister in Montenegro, and a longtime professor of acting at the Faculty of Drama Arts in Cetinje. Did this last decade, since both countries declared independence, have affected the cultural exchange between them, as well as the mutual understanding and interest shown by artists from both sides in each other? ― The cultural exchange between Montenegro and Serbia has never slowed down, even at the time when the political relations between the two countries were not even close to what they are today. Today, both countries have an exceptional cooperation in all areas. In our relations, particularly in the last

three decades, Montenegro's doors have always been opeened regardless of the political processes that our countries and the entire ex-Yugoslavia have been going through. In the said period, we have managed to implement numerous joint culture projects together with our friends from the region, and particularly from Serbia. Through this noble cooperation we have proven that, even when things were incredibly difficult for our region, our cultural mission was always geared towards full understanding and tolerance. Even after all these years I spent as the director of the Montenegrin National Theatre and the minister of culture, I am still investing as much love and effort into cooperation with the Serbian culture in my capacity as the Montenegrin Ambassador to the Republic of Serbia. We are both proud of the fact that the relations between our countries have been deemed as non-problematic and that they have actually reached their peak, looking back at the last three decades. The current political dialogue and cultural exchange have contributed to the fact that the relations between our two countries can serve as an example of good neighbourly relations in the Balkan region. The independent status of our countries has had a positive effect on a more intense and better quality cooperation in culture which emerges only when we eliminate the excessive myths and prejudices and when they cease to be the dominant part of the way we think and act. That is why quality reality is the essence of our relations today. How do you personally feel in Belgrade? ― I studied in Belgrade and worked here for many years. I was also a professor of acting at the Belgrade Faculty of Drama Arts. Belgrade helped me to define myself as a person, a human being and an artist. My unforgettable professors, many of my colleagues and friends, and the city in which nobody ever asked you where came from, have formed a personal commitment towards all these elements that are still alive inside of me despite my huge experience. I am also very aware that all of these criteria are not a part of my life, but the life itself. I came back to Belgrade as the Montenegrin Ambassdor with a feeling and an obligation to invest all of my energy in adhering to the standards of the diplomatic post bestowed on me by my country and all the diplomatic standards of the country that was sent to. But, personally, I still have a wish to sincerely contribute to the mutual respect, tolerance and love between the peoples of the two countries. MONTENEGRO 2017

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CORP ORAT E

THE SAFEST AND FASTEST LINK TO THE WORLD

ŽIVKO BANJEVIĆ Executive Director of Montenegro Airlines

In every sense of the word, we completely justify the moniker of the national airliner that connects Montenegro to European countries all year around

ontenegro Airlines is a national airliner that has flown almost 8 million passengers since its first flight in 1997 which is respect-worthy information even for bigger countries and their national airline companies. What does the fact that Montenegro has a national airliner mean for the country, and are you fully prepared for the peak season? — Apart from being the safest and fastest link between Montenegro and the rest of the world, we have also been very beneficial for the national economy all these years, and especially for tourism business. Our main goal is to be at service to the Montenegrin tourist sector, and I think we have managed to do that. All year around, Montenegro Airlines flies to 8 destinations (Belgrade, Vienna, Frankfurt, Zurich, Ljubljana, Rome, Paris and Moscow). In summer, we usually increase the number of flights towards the said regular destinations and introduce seasonal flights to London, Copenhagen, Saint Petersburg, Dusseldorf and Lyon. Also during summer, we have a substantial number of charter flights to Bari, Naples, Bratislava, Nantes, Ajaccio, Linz and Salzburg. For the first time this year, we also have charter flights to Tel Aviv and Helsinki. Montenegro Airlines has signed codeshare agreements with 6 airline compa-

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nies - Air Serbia, Etihad Airways, Siberia, Air France, Al Italia and Austrian Airlines which facilitates the widest possible network of flights between the neighbouring countries. For passengers this means being able to travel to the biggest towns in Europe, the Middle East and North America via Belgrade. In the first 5 months of this year, the national airliner flew 166,375 passengers, and in the period from 1st June to 30th September, we expect to fly around 300,000 passengers. To illustrate this, let me just say that we sold 14.48 million EUR worth of booking services which means that we are well on our way to reach the set target and maybe even exceed it in regard to the number of passengers. Most importantly, we are going to do this with a fleet of 5 planes, i.e. 3 Embraer E195 planes and 2 Fokker F100s. In which way does Montenegro Airlines fight against an increasingly tough competition? — Year-on-year, Montenegro is becoming a more appealing tourist destination which also means a growing interest from travel agencies and airlines. Close to 50 regular, charter and low-cost airliners fly to Montenegro, and only 10 of them do so all year around. Montenegro Airlines devises its flying schedule on an annuall level, and not only during

the tourist season. The fact that, in the first 5 months of this year, we flew 35.3% of the total number of tourists that came to Montenegro is a clear indicator that this national airliner is the most important factor in the development of tourist business, and that, in the era of ever growing lowcost companies, it has managed to maintain its stable market position. How is your company positioned in the region? — To illustrate that let me just say that, together with Lufthansa and low-cost airliner Wizz Air, we are the strongest foreign airline company at the biggest regional airport which is Nikola Tesla Airport in Belgrade. The number of people that we have transported speaks in favour of the fact that Montenegro Airlines is definitely a tough competitor in the regional airspace. In the first 5 months of this year, Montenegro Airlines flew almost 86,000 passengers to and from Belgrade. We expect the air traffic frequency to increase by the year end, in line with the signed code-share agreements with Air Serbia and Etihad Airways, and we are fully committed to connecting Montenegro and the region to the rest of the world. What message do you have for your valued passengers? — We would like to say to our valued passengers that, in terms of flight safety, Montenegro Airlines meets the highest EASA standards. Our planes are completely safe, well-equipped and technically sound. We are going to be dedicated to improving air accessibility of our country, and to bringing as many foreign tourists as possible here, all in accordance with the needs and demands of the tourist business. Welcome to our flights!

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VELIMIR MIJUŠKOVIĆ

INTERVIEW

HUGE INVESTMENTS WILL PAY OFF

President Chamber of Economy of Montenegro.

Modern infrastructure is the key prerequisite for the economic development of the country. Therefore, business community is encouraged by the fact that Montenegro has become a big construction site and believes that these investments will pay off

tructural reforms that may ensure and guarantee economic growth as well as predictability, transparency and non-selectivity are prerequisites for the better functioning of the business sector, says Velimir Mijušković, president Chamber of Economy of Montenegro.

achieving surplus in the service field for years, there is still the issue of our pronounced dependency on import. This is the most painful issue of the Montenegrin economy and it obviously requires a more comprehensive and meticulous approach in comparison to the present one.

How do you, as a businessman, rate the overall economic situation in Montenegro? ― Economic forecasts for 2017 are favourable, so we can expect growth of cca 3%. A key challenge will be to preserve fiscal stability, which indicates the need to insist on implementing structural reforms that may ensure and guarantee economic growth. In order to improve the overall economic reality, the business community believes that it is necessary to gear our activities towards improving infrastructure. The business community has already expressed their satisfaction with a number of projects initiated in this field. The need to increase the level of competitiveness, which is a prerequisite for the export growth and thus reduction of the trade deficit, has been identified as a challenge by the business community. Even though we have been

THE PRONOUNCED DEPENDENCY ON IMPORT IS THE MOST PAINFUL ISSUE OF THE MONTENEGRIN ECONOMY AND IT REQUIRES A HIGHER COMPETITIVENESS AS A PREREQUISITE FOR EXPORT GROWTH

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The Government has been drawing up the Fiscal Strategy and the business community has been monitoring this process with a lot of attention. Thanks to the continuous communication with the Government, the Chamber has already had meet-

ings with the Ministry of Finance, at which the business sector presented its views in terms of the way to achieve expected results and protect the economy and the citizens at the same time. How much of a driving force behind economic development can large-scale infrastructure projects be in the future, and how do such investments impact the general financial stability of the country? ― Having modern infrastructure is the key prerequisite for economic as well as any other development of a country. Therefore, we are encouraged by the fact that Montenegro has become a big construction site for important infrastructure facilities in transport and energy sectors. Even though the views on the construction of the motorway differ due to the difficulties which the Montenegrin economy is going to face because of this project, I think that it is a good thing that the implementation of this project has started. Although the project is the main reason behind our considerable public debt, for the economy, such as the Montenegrin, we simply have to build something like this. I would say that Montenegrin business sector has managed to negotiate

good position for itself in talks with the Chinese partners. In this regard, 67 Montenegrin companies have participated in the construction of the Smokovac-Matesevo motorway section, and out of 2,200 workers engaged, almost 800 of them are from Montenegro. These figures are not insingnificant for Montenegro. In addition, 33 Montenegrin companies i.e. cca 200 workers have been engaged in the implementation of the ongoing projects in the energy sector, which are significant for us as well as for the regional connectivity. Talking about infrastructure, I think that, in the near future, the European Union should support building a connection to the Western Balkans through the construction of the Adriatic-Ionian corridor. The project related to the construction of the Trans-Balkan Electricity Corridor is a vital part of the process of creating a regional electricity market, as well as an important strategic investment of regional and pan-European importance. Therefore, it is at the top of the Connectivity Agenda, and this Corridor will contribute to establishing better electricity connections between Montenegro, Serbia, Bosnia and Herzegovina and Italy. How much can infrastructural networking in the region affect the country’s GDP growth? ― Even though it is beyond any doubt that infrastructure connections in the region will have the positive impact on the country’s GDP, it is not that easy to give more accurate estimates, due to a number of other factors ranging from the global ones to those at the national level which can affect them. There is no doubt that the high-quality regional connectivity entails easier access

to markets, facilitates higher competitiveness etc. It is for this reason, i.e. establishing internal connections, that the Berlin Process with special focus on constructing infrastructure. We expect the EU to allocate additional funds for the preparation and implementation of projects in the fields of transport and environment soon. I think that this will happen after the Trieste Summit.

WE EXPECT THE EU TO ALLOCATE ADDITIONAL FUNDS FOR THE PREPARATION AND IMPLEMENTATION OF PROJECTS IN THE FIELDS OF TRANSPORT AND ENVIRONMENT SOON. I THINK THAT THIS WILL HAPPEN AFTER THE TRIESTE SUMMIT Do you think that the ongoing European integration process has improved the business environment in the country? ― The fact that the EU integration process entails harmonizing the majority of the country’s legislation with that of the EU also facilitates the improvement of the business climate. Do you think that foreign and domicile investors have equal treatment in terms of their rights and incentives they are entitled to?

― Foreign and domestic investors have a completely equal treatment in Montenegro, including a number of incentives which the Government provides so as to stimulate investments. This is one of the main reasons why investors from all over the world have decided to invest in our country. Owing to this, Montenegro has managed to attract renowned foreign investors, primarily in the field of tourism, who brought exceptional brands with them such as Regent, One and Only, etc. Are you satisfied with the dialogue between the business community and the government? ― The cooperation between the business community through the chamber of commerce and the government in any country, as well as in Montenegro, is of great importance, since both sides need to be in synergy in order to have economic development. This cooperation in our country is characterized by an open dialogue in which we are the only institutional partner to the Government in creating economic policies and a favourable business environment. Involvement of the Chamber in the activities of many Government bodies and councils, which are focused on regulatory reform, drafting regulations etc. supports the abovementioned statement. On the other hand all business events and meetings at the Chamber have been attended by representatives of the Government at all levels. Well-argumented attitudes and facts, which the business sector freely expresses at the Chamber, are presented to the Government and majority of them are accepted. In some cases, more prompt reactions are required, but, in some cases, that is rather unrealistic to expect.

THE COOPERATION BETWEEN THE BUSINESS COMMUNITY AND THE GOVERNMENT THROUGH THE CHAMBER OF COMMERCE IS CHARACTERIZED BY AN OPEN DIALOGUE IN CREATION OF THE FAVOURABLE BUSINESS ENVIRONMENT MONTENEGRO 2017

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ity, transparency and non-selectivity, and to continue with the activities regarding combating the shadow economy, resolving the problems of illiquidity and facilitating access to finances. The business community identified these activities as an imperative.

What are the Chamber’s proposals for boosting the environment for doing business? ― The Montenegrin Chamber of Commerce, i.e. the business community, thinks that a lot has been done in terms of improving the business environment. However, the dynamic related to amending the systemic regulations is not as we expected. This primarily refers to the Labour Law, which represents a serious obstacle to businesses due to a number of contradictions and faults in it. We also expect a lot from the Law on Business Organizations, which is being drafted, as well as of the Law on Public Procurement. For an economy such as ours, which relies on engaging foreign workers in the tourism and construction industry, it is important to draft a good Law on Foreigners, which will not be an obstacle for businesses, but will rather provide a solution to the problem of the lack of workforce in an acceptable manner.

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FOLLOWING THE EXAMPLE OF CROATIA, WHICH BUSINESSES HAVE PROPERLY POSITIONED THEMSELVES IN NATO’S PROCUREMENT PROCEDURES, THE MONTENEGRIN BUSINESSES ARE NOW PREPARING TO OFFER THEIR CONSUMER GOODS AND SERVICES TOO In addition to the fields that I have mentioned, which are not adequately regulated in terms of legislation, the business community thinks it is very important to insist on respecting the principles of predictabil-

How can domicile economy utilize the advantageous opportunities that are created following the country joining NATO? ― Following the experiences of the regional countries which have already become NATO members, Montenegro’s membership is expected to have a positive impact on the national economy. Let’s not forget that this means that we are going to have an access to the market of about 900 million people, and we are talking about the countries with the most developed democracy and economies, which have not fought against each other in the last 60 years. When we look at the positive effects of the NATO membership, they are, first and foremost, the investors perceiving the country as a safe place for their investments. This effect is not insignificant at all, because after the onset of the economic crisis, countries have been trying to create a better business environment with the view of attracting new investments. For example, new members can use money from various funds for building infrastructure, get assistance with destroying the surplus of weapons and ammunition, and assistance with converting of the former military facilities which also brings economic benefits. Participation in the Alliance’s military missions creates an opportunity for the engagement of civil and military companies of a Member State. These are the reasons why the Montenegrin Chamber of Commerce has been continuously working on informing the business community about the needs and requirements of NATO codification of products and services since 2011. Lately, we have intensified educational activities on the topics related to participating in NATO tenders, since the NATO membership offers specific business opportunities through public procurement, and the Montenegrin companies must be prepared to participate actively in this process. There are different calls for procurement of consumer goods and services. In this part, we mostly rely on the experience of Croatia, which businesses have properly positioned themselves in these procedures and have gained benefits from them. The Montenegrin Chamber of Commerce is close to start providing new services which would facilitate the aforementioned.

RADOJE ŽUGIĆ Governor of the Central Bank of Montenegro

W WE EXERCISE RESPONSIBLE POLICY INTERVIEW

Adopting of euro has contributed to Montenegro starting to exercise a responsible economic policy and what was the most undeveloped country in the region, now occupies the third place, after Slovenia and Croatia, in terms of the GDP per capita

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e are talking with the Governor of the Central Bank of Montenegro, Radoje Žugić about the challenges in maintaining fiscal stability.

To what extend did Montenegro's decision to adopt euro as its national currency determine the capacity of the Centras Bank to influence the country's financial stability with its policies? ― By adopting first the German mark and then euro, Montenegro consciously gave up a number of monetary policy instruments. This decision was made primarily because, at the time, we had a disadvantageous monetary policy which created a series of consequences. The adoption of euro made it possible for us to transition, in a relatively short period of time, from high inflation to inflation that is at the same level as the one in eurozone, i.e. to attract an incredibly high amount of foreign investments, expedite the development of our financial system, make our monetary policy credible again, and intensify economic development. I would like to remind you that, back in the day, we were the most undeveloped republic in former Yugoslavia, and today, in terms of the GDP per capita, we rank third in the region, right behind Slovenia and Croatia. The adoption of euro, which is now our great economic legacy,

has significantly contributed to that. To reiterate, the adoption of euro did eliminate a certain number of monetary policy instruments used in preserving financial stability, and by that I mean limited opportunities of becoming a lender in the final instance. Instead of having a weak national currency, Montenegro adopted a strong convertible currency which, by default, has contributed to preserving financial stability. Also, during all these years, we have been improving our regulatory framework and developing a certain number of alternative instruments that enabled the preservation of our financial stability, as well as our monetary and fiscal sustainability. Although, in the past period, we have had to deal with various challenges, primarily those caused by the global financial crisis, we can say with certainty that, since we adopted euro, our financial stability has improved. In that context, what is the role that the Central Bank plays in government's efforts on maintaining macroeconomic stability through austerity measures? ― The government is in charge of creating and implementing fiscal consolidation measures. In line with our legally defined roles which include macroeconomic analyses, especially the financial ones, the Central Bank gives recommendations for fiscal consolidation measures directed at implementing of austerity measures and increasing revenue. Also, with the view of maintaining the stability of our banking system, the Central Bank of Montenegro creates conditions conducive to stable growth of banking activities under favourable conditions. A growing number of available bank loans, as one of the external financing sources for companies, should enable more economic activities, and thus a wider tax base which, in turn, significantly contributes to fiscal consolidation. One of the prerequisites for a stronger growth of loans with favourabe terms is reducing the number of non-performing loans (NPLs). Despite a noticeable drop in the number of NPLs in the last few years, this loan category is still at the core of the vulnerability of some banks. In order to reduce this vulnerability, the Central Bank of Montenegro has recently created a much more favourable framework for a more efficient restructuring of NPLs thanks to amendments to the relevant laws. Also, the government is preparing a new Law on Financial Institutions following which the Central Bank of Montenegro will not only supervise banks and microfinancing institutions, but also leasing and factoring companies too. By doing so, we

are going to create conditions conducive to a decline in the number of NPLs, i.e. to a stronger growth of lending activities under favourable conditions. How important is the cooperation between Montenegro, on one side, and the IMF and the World Bank, on the other, during such delicate time? ― In stable conditions, the cooperation with the IMF and the World Bank is very important and has been growing in importance during the implementation of the financial and fiscal consolidation strategy. The IMF and the World Bank's opinions about the implementation of these processes in a certain country send a very important message to investors (and creditors) about how safe is to invest in that country. The IMF and the World Bank are of the opinion that the situation in the Montenegrin financial system has significantly improved which, combined with the effects of the credible fiscal consolidation and structural reforms, creates a solid foundation for a more intense economic growth in the following period.

BOTH THE IMF AND THE WORLD BANK HAVE ASSESSED THE SITUATION IN MONTENEGRO'S FINANCIAL SYSTEM AS SUBSTANTIALLY IMPROVED Regarding the collaboration with the IMF, they will provide the Central Bank with technical assistance for the implementation and building of the capacity of banking supervision in the following period, while the Montenegrin government will receive assistance with the implementation of its fiscal strategy. The World Bank is also considering providing support to the Montenegrin state budget in a form of a loan guarantee, based on agreed policies. How would you rate the current situation in Montenegro's banking system? ― Our banking system is relatively stable. Financial risks have been subsiding, but are still present on an individual level. Financial results of our banks, on an aggregate level, are positive, while the liquidity and solvency have been improved and are notably below the legal minimum. In late May 2017, the total assets of banks in Montenegro stood at 3,898.7 million EUR which has exceeded the 2016

GDP, and has already reached 99.2% of the projected GDP in 2017. The total capital of the banks in Montenegro in late May amounted to almost half a billion euros which is the highest level ever. Although the credit activity has been growing, banks still exercise a cautious lending policy towards the real sector, relying primarily on their own liquid assets. A substantial portion of these new crediting activities, in the past period, was directed towards restructuring and consolidation of existing loans which, in turn, had a positive effect on economic recovery. A small drop in interest rates, which have been falling since 2014, has also contributed to economic recovery. How important is the IMF's technical assistance in the implementation and boosting of the capacity for banking supervision? ― This supervision, of course, is a key function on which the institution's responsibility for the stability and security of the banking system rests on. In that context, the development of supervisory capacity is an extremely important issue. What we are referring to here is primarily the improvement in regulatory framework and a full implementation of the international banking standards. Also, special attention is paid to improving professional capacities which have to enable a professional and consistent implementation of these standards in practice. The harmonization of the national legislation with the Basel III standards and the implemenation of the MFSI 9 international accounting standards in financial reporting will result in much stricter reservation practices and will contribute to a stronger financial stability. In this regard, the IMF's assistance is of great importance to the Central Bank of Montenegro. The IMF experts, covering this segment, are already working on the implementation plan for MFSI 9 and have been helping the Central Bank through their continuous cooperation. The IMF provides significant support to the Central Bank on further development of macroprudential framework and policies, and has been monitoring our intensive activities on creating a set of laws that would advance banking operations, and, to that end, has been giving recommendations for the improvement of all segments of our financial system. Overall, the cooperation with the IMF is a significant contribution to the Central Bank's endeavours on boosting the capacities not only in bank supervision, but also in other segments which come under its systemic responsibilities. MONTENEGRO 2017

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MILOŠ JOVANOVIĆ Director of the Montenegerin Investment Promotion Agency (MIPA) Podgorica

INTERVIEW

COMPARATIVE ADVANTAGES IN TOURISM, AGRICULTURE AND ENERGY

Montenegro has comparative advantages in the sectors like tourism, agriculture and energy, and in order for these three sectors to become fully valorized in the future, we need to develop the infrastructure sector as much as possible

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he support that the Montenegrin system provides to the EU-related reforms is priceless to us because we can't talk about having an attractive investment environment without having strong system institutions, the rule of law and modern public administration that will create a good investment framework. We do have all of that, but we are also constantly improving ourselves too.

What are your estimates regarding foreign direct investments (FDIs) in Montenegro in 2017? ― The total FDI influx in the four first months of 2017 amounted to 176 million EUR. In the same period, the net FDI influx stood at 139.5 million EUR, which is 1.6 times higher relative to the same period last year. This just shows that the Montenegrin government has managed to position Montenegro's brand on the world's investment map owing to which we have investors from 107 countries in the country today. It is also important to underline that most of the investors here have decided to re-invest. In the last two years, the FDI influx trends have been growing compared to the ones in 2013 and 2014, and we expect the same to continue this year too. We are satisfied with the total FDI influx last year which amounted to approximately 687 million EUR, while this year we expect this amount to be even higher. How much do investors value the fact that Montenegro is now a NATO member in terms of investment safety and stability? ― The ratification of the Protocol and Montenegro officially joining NATO was finalized in June this year. This means that we are now in a permanent partnership that facilitates long-term stability and securi-

ty, as well as brings substantial economic benefits. By becoming a NATO member, Montenegro is boosting its environment for domicile and foreign investments, while the interest shown by investors is growing. All of the indicators point out that, speaking long-term, these effects are quite positive and that FDIs grow as a result of the understanding that potential investors now have about our country in terms of its improved security, and having a more stable economic system which is, as such, more

THE EU OFFICIALS HAVE CONFIRMED THAT MONTENEGRO IS THE LEADER IN THE EU INTEGRATION conducive to investments. It is encouring to see the experiences of the countries in our immediate surroundings which FDI influx doubled in the period of five years since joining NATO. It is also important to mention the origin of the capital that entered these countries which is mostly from other NATO members. The statements about fewer investments from Russia are unreasonable, first and foremost, because of the market logic of capital. Based on the available data, we can see that the Russian investments have been maintaining a positive trend. Montenegro will always be opened to credible investors, and will never prefer one investor over the other based on their country of origin. We should also not expect that everything will change overnight now that

Montenegro has joined NATO, but what we are confident that the offer of Montenegro's diverse potential will become even more appealing, while the perception that investors have of investing in our country will be an even more positive one. How much did the European integration process increase Montenegro's investment appeal? ― The European integration process has brought us more interest from all over world. Successful opening and closing of chapters in the EU accession talks gives real credibility to the fact that our country is developing and that we are on the right path towards improving all aspects of our lives. We should not forget that the EU is also one of the investors in Montenegro. Since the accession talks were launched until today, the EU has invested over 235 million EUR in Montenegro. The other day it was five years since Montenegro started the EU accession talks, and everybody agrees that our country has accomplished great results in this period, especially if we bear in mind that the EU has also been evolving, and facing serious problems like Brexit and migrant crisis which also contributed to the EU now having stricter criteria for candidate countries. The EU officials have confirmed that Montenegro is the leader in the EU integration. The EU is the driving force behind transformation in the Western Balkans and it brings many benefits to the region. During the last 10 years, the trade between the EU and the West Balkan countries has more than doubled. Investors are aware that the trading between the EU and West Balkans is now liberalized, and that the harmonization of trading standards and rules will create an equal playing field for all inves-

MIPA COMPRISES OF A YOUNG, PROFESSIONAL TEAM OF PEOPLE WHO IS WORKING DAILY ON IMPLEMENTING ACTIVITIES THAT PROMOTE MONTENEGRO'S BRAND IN LINE WITH GOOD PRACTICE MONTENEGRO 2017

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tors wanting to export to the EU which, in turn, is an additional incentive for companies to launch or expand their businesses in Montenegro. In which sectors do investors invest the most? ― Montenegro has comparative advantages in the sectors like tourism, agriculture and energy, and in order for these three sectors to become fully valorized in the future, we need to develop the infrastructure sector as much as possible. There are already ongoing projects on the Montenegrin coastline worth around 3 billion EUR which is why we are currently focusing on promoting the investment potential in northern Montenegro. If we look at the FDI dispersion sector-wise, we can see that the most of FDIs were made in the financial sector - a total of 28% of all investments, followed by construction with 18%, industry with 13%, and tourism with 8%. The key investments in Montenegro were made in infrastructure, energy and tourism. Investments in renewable energy resources have already reached 33% of the total production, while the 1,000MW-underwater-cable, that will connect Montenegro and Italy, will enable Montenegro to export electricity. Also, there is a growing interest in agriculture which has a huge potential. Which sectors would you like to single out as potentially appealing to investors? ― Investment promotion agencies in developed countries expect new investments to be made in the sectors of business, tourist and other services, as well as in the ICT sector. On the other hand, developing countries and the countries with transitional economies expect new investments to be primarily made in agriculture, food and beverage production and other types of production, along with ICT. These are the results of the recent survey conducted by the UNCTAD, and I concur with them. I would also like to underline the appeal of our agricultural sector which has received only 2% of FDIs so far. There are substantial support programmes in agriculture provided by our Ministry of Agriculture and Rural Development. How much could large-scale infrastructure projects, currently implemented in Montenegro, boost the investment appeal of the country's undeveloped areas? ― One of the main prerequisites for development of business is having a complete infrastructure in place as development of infrastructure opens the door to new business projects. The accessibility of certain areas and the possibility of mar-

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keting their products at modest costs will definitely revitalize the economy. Once the Bar-Boljare motorway is constructed, the commuting time between north and south will be reduced, the Port of Bar will finaly get its own infrastructure corridor, the valorization of development resources in the north will be possible, and the problem of underdevelopment and migration from these areas will be permanently resolved. This motorway also enable the fastest connection to Serbia and Central Europe.

ONE OF THE MAIN PREREQUISITES FOR DEVELOPMENT OF BUSINESS IS HAVING A COMPLETE INFRASTRUCTURE IN PLACE AS DEVELOPMENT OF INFRASTRUCTURE OPENS THE DOOR TO NEW BUSINESS PROJECTS

The underwater enegy cable, to be laid between Montenegro and Italy, surpasses the borders of Montenegro and due to its financial value and impressive technical parametres, it has been included in the list of the projects that are important both for the EU and the Energy Community. With the implementation of this project, Montenegro could become the regional transit centre for electricity. The project benefits will also serve as an incentive for our energy sector to become more active and continue developing especially in the north of the country which has a huge potential in regard to renewable energy. What is MIPA's approach to promoting investments in Montenegro? ― MIPA comprises of a young, professional team of people who is working daily on implementing activities that promote Montenegro's brand in line with good practice. Our main promotion venues are creating high quality promotional publications, participating in trade fairs, conferences and business forums, directly supporting potential investors with setting up their businesses in Montenegro, conducting surveys on behalf of potential investors, providing logistics support and networking with state institutions and small and medium enterprises in Montenegro.

Illustrative purpose only.

NEXT SUMMER WILL BE OURS Luštica Bay is a unique and pioneering lifestyle and residential development, hidden within the dramatic landscape of the Montenegrin coast, which is fast becoming one of Europe’s most coveted and illustrious natural escapes

he only Greenfield investment in Montenegro and the largest one in this part of Europe, Luštica Bay is a €1.1 billion luxury residential development. The project is envisaged to comprise a mix of real estate offerings (apartments, townhomes & villas), hotels, a golf course, two marinas, retail, recreational and leisure space. The major milestone for the development will be the summer 2018, as it will effectively see the opening of the Marina Village phase of the project, comprising the main marina with berthing and support facilities for 176 vessels, the 110 room five-star The Chedi Luštica Bay hotel, approximately 1700 sq. m. of retail spaces including fashion stores, cafés and restaurants and around 220 luxury apartments, townhouses and villas. The first out of 7 hotels in the project, The Chedi Luštica Bay

Illustrative purpose only.

CORP ORAT E

LUSTICA BAY

will be located in a prime waterfront location in Marina Village enjoying expansive views over the marina and the Adriatic Sea. The hotel design is drawn from the characteristic qualities of Montenegrin coastal villages, while delivering the quality and experience of a luxury resort. The Chedi will have 110 rooms, two restaurants including an all-day dining restaurant and an international cuisine restaurant, both with integrated bars, a separate bar at the lobby level overlooking the marina, a multi-purpose ballroom and conference room, separate business centre meeting room, an outdoor pool that will be heated for year round comfort, an exclusive spa and fitness centre featuring indoor and heated pool, gymnasium, sauna and steam room. The marina promenade level will feature high end retail outlets and cafés. The Chedi will also operate an organized

The major milestone for the development will be the summer 2018, as it will effectively see the opening of the Marina Village

hotel beach immediately adjacent to the hotel. The development has recently announced the release of concept for the zone called Centrale, set to become Luštica Bay town centre. A commercial and administrative hub, cultural centre, verdant haven and gathering space – Centrale is planned to become a new focal point for the community life at Luštica Bay and the new urban core of the surrounding area. Centrale will bring together all the needs of a town centre with the world-class facilities of Luštica Bay. It will be host to a range of shops, boutiques, restaurants, bars, galleries, entertainment and public facilities. Luštica Bay is also planned to become the home of country’s first 18 holes championship golf course, set to become the premier golf course in the region with its elevated location offering stunning views to both the Boka Bay and the Adriatic Sea. The golf course will add to the existing offer and provide an additional amenity for visitors looking for a greater range of opportunities and experiences. The concept behind the development of Luštica Bay is one anchored in a holistic philosophy of health and wellness, and designed from the original master plan up to be destination where families can come together, relax, unwind and have fun. A true year round destination, the residents of Luštica Bay enjoy the warm climate, buzzing summer season and snow-sure mountains to the North (just 2 hours away), offering residents the chance to indulge in an active lifestyle in every season.

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CORP ORAT E

PROKOPIJE PERIĆ CEO of Plus d.o.o. Podgorica

RELIABILITY AND QUALITY FOR SUCCESS We actively participate in all programmes geared towards overcoming business obstacles, and we are trying to create a business environment that is going to facilitate a more efficient business growth for us

igh quality premium brands are our priority because of their ability to gain a quick following and loyal consumers. Bearing in mind that 2016 was a very important year for us with all the activities that we had, I have to admit that I am more than happy with the achieved results. Cigarettes definitely make one of the most important segments of our portfolio. Our plan is to attain a leadership position, together with the JTI Company, in the following two years, which is quite certain to happen.

What are the key features of the market you operate in, and what influence did they have on expanding your product portfolio? — Compared to other regional markets, the Montenegrin one is a lot smaller, but undoubtedly more complex. The expectations of Montenegrin consumers, as well as tourists that visit Montenegro, are very high especially in terms of quality of products they buy regularly. The distribution is also quite demanding considering Montenegro’s geography and the tourist season which stretches logistics capacities to the maximum. If you don’t sell today, you are not going to be

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able to compensate for that sale tomorrow, especially if we are talking about consumer goods. The product portfolio that we import and sell on the Montenegrin market has to be planned and analyzed in detail because, in Montenegro, there is a wide array of available products in every segment. High quality premium brands are our priority because of their ability to gain a quick following and loyal consumers. In 2016, we started collaborating with Italian companies PATA (snacks), Colfresh (chewing gum) and Paulani (croissants). I am es-

It might sound conceited but I have to say that the Plus Company has, by far, the widest range of products

pecially pleased about us successfully acquiring a local distribution company in late 2016, and by doing so, expanding our portfolio with the globally renowned brands like L’Oreal, Garnier, Mixa, Maybeline, Zewa, Libresse, GSK and many others.

How satisfied are you with your company’s results in 2016 and in 2017 so far? — Taking into account that, for us, 2016 was a very important year with all the activities that we had, I have to say that I am more than pleased with the results. Our biggest

success is definitely selling cigarettes produced by JTI in which we recorded a 40% hike relative to 2015 which, in turn, resulted in Winston becoming the cigarette brand no. 1 in Montenegro with a total market share of 17%.

What are your future plans regarding the two main segments of your portfolio? — Well, our plans are always grandiose. Of course, cigarettes are one of the most important segments of our portfolio. Our plan is to attain a leadership position, together with the JTI Company in the following two years, which is quite certain to happen considering our growth trend in the last 18 months. The same goes for the Bulgartabac Company as we are poised to conquer a large portion of the market in the slims cigarette segment. We have signed contracts with two more international cigarette producers with one already present on Montenegro’s market, and the second one planning to market its products in this part of Europe for the very first time. With the recent acquisition, we assumed a great responsibility of further developing the brands L’Oreal, SCA, and GSK so this is going to be one of the things we are going to heavily focus on in the following period. We are also planning on acquiring two local distribution companies and the negotiations with them have entered a final stage so I expect the contract to be signed and the acquisition to start by the year end. Because we have signed a confidentiality agreement, I am not able to divulge more information, but I can tell you that these companies distribute products that are leaders in their respective segments. Recently, we have formed a HORECA division bearing in mind that we import and represent brands such as Hausbrandt coffee, Ronnefeld teas, and San Benedetto non-alcoholic beverages and water. Our company’s strategy is to carefully monitor the development of tourism as one of the most important economic branches. We still have to work hard and invest a lot in this segment of our business.

a sufficient number of well-motivated professionals who make the core of your company. We are not perfect, but we are striving towards perfection every day.

How much do the country’s economic growth and the arrival of elite clients affect the offer and the sale of our products? — The opening of luxury tourist facilities definitely affects the arrival of the clients from a big spending bracket which is very important for us, and in line with our company’s strategy to focus on high quality premium products. All of this does require investing much more effort into understanding the needs of these clients, but that’s why we are here – to listen intently and fulfill the market needs.

What sets your company apart from your competitors? — It might sound conceited but I have to say that the Plus Company has, by far, the widest range of products. With the planned acquisitions, which are supposed to be carried out by the year end, this range will become an even wider. Still, we think that our employees give us the biggest advantage over our competitors. Today, providing you have enough money, you can build the most advanced logistics facilities, and buy the newest cars, but the most important thing is to have

How stimulating is the business environment for domicile private companies?

We are also planning on acquiring two local distribution companies and the negotiations with them have entered a final stage

— It can always be better. We actively participate in all programmes geared towards overcoming business obstacles, and we are trying to create a business environment that is going to facilitate a more efficient business growth for us. Maybe we, as a domicile company, would like for the state to have a more preferential treatment towards companies like ours in relation to foreign investors, but we completely understand the government’s stance regarding this, because, as we are drawing closer to the EU membership, it becomes futile to expect any preferential treatment over foreign companies. Anyhow and regardless of the aforementioned, I deeply believe that the arrival of foreign companies and investors can only be beneficial to all companies here because we are going to form a chain that will benefit us all, especially in terms of creating more new jobs in Montenegro. MONTENEGRO 2017

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CORP ORAT E

SOHO GROUP Rade Vujačić, General manager and Founder

PROMINENT SPECIALISTS AND EXCELLENT ORGANIZATION Soho Group, with the main office in the town of Bar, Montenegro, includes several companies that are leading in their fields, with prominent specialists and excellent organization

lans of Soho Group for 2016-2020 include the construction of 350 residential units in Bar, construction of a 5-star hotel complex with 250 accommodation units in Bar, construction of a regional diagnostic centre with magnetic resonance imaging for the Montenegrin coast, construction of a polyclinic in Podgorica, construction and commissioning of two more hydro power plants with an installed capacity of up to 10MW. The following companies operate within Soho Group: Investment fund, which has the possibility to invest in highly attractive projects due to very good administrative resources. Soho Travel agency, very successful in the area of outgoing Soho City project

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and incoming tourism. There are also a real estate and renta-car agency operating within Soho Travel. Additionally, we are developing an online accommodation system for Montenegro. Soho Group has therefore completed the offer for any customer, i.e. we can provide complete logistics in Montenegro. The scope of services offered by „Soho travel“ includes organization of trips and excursions in Montenegro throughout the year, the most favorable prices for reservation and purchase of airline tickets for all world destinations, organization of trips to all world destinations, exotic and individual trips, sports events, cruises, business fairs, etc. Soho Café, located in Bar, con-

Soho Group is known in Montenegro as one of the major investors in sports

sidered one of the most popular cafes/bars in Montenegro. It is usually referred to as the business club of Montenegrin entrepreneurs. Soho Energo, a newly founded company engaged in investing in the energy sector. In the near future Soho Energo will put into operation its first hydro power plant. Please note that Montenegro is one of the richest countries in energy sources (renewable energy sources) per capita in the world. Hipokrat (Hippocrates) Clinic, a private clinic, which is a leading diagnostic centre in Montenegro. Inter alia, it is the only clinic with various high-tech medical equipment, such as magnetic resonance imaging.

As regards sports, Soho Group is known in Montenegro as one of the major investors in sports. Female volleyball club Galeb, with 300 girls practicing, is a champion of Montenegro in all categories. Soho Group is also engaged in philanthropy – we have made donations to hospitals, churches, construction of playgrounds, socially vulnerable groups, etc. Soho Gradnja construction company, founded in 1987, which has built and put into operation millions of square meters of residential, hotel and commercial facilities, as well as various kinds of factories and plants, both in Montenegro and in the region, and especially in the former Soviet Union countries. Soho Gradnja is one of the leading construction companies in Montenegro, with very experienced engineering and architecture staff. In the past two years, only in the territory of Bar municipality, the Company has completed commercial and residential buildings F13 Topolica (Russian

House), G12 Topolica (Sun Residence), B10 and B11 Topolica III (Belvedere Residence), with total surface area cca 27,500 m², and mini village in Pečurice with total surface area 15.500 m². The Company also implemented a number of other projects in the territory of Montenegro, including expert supervision and engineering systems. 'SOHO GRADNJA' doo has a possibility to provide construction land and complete logistics service for future investments. 'SOHO GRADNJA' company has all the necessary permits and licenses for the operation, experience in the process of the investment cycle, experienced technical personnel and years of cooperation with quality subcontractors. In the Russian Federation, the company has operated under the name 'Lasaro Ltd' and participated in the construction of facilities for a number of investment companies such as 'Montex' - 'Cinex', 'Braća Karić', Central Bank of the

Soho Gradnja is one of the leading construction companies in Montenegro, with very experienced engineering and architecture staff

Russian Federation and others. Works were performed in the cities of Moscow, Yekaterinburg , Tobolsk, Kazan, Yakutsk, etc. Company 'SOHO GRADNJA' enjoys a strong reputation in the field of construction. Residential Complex "Your Home Montenegro" is located on the Adriatic coast, in the elite part of the municipality, near Uytin stream which is 5 km away from Bar. The city is considered one of the sunniest places in Europe : 270 days of sunshine a year, the water temperature in the range 24-26 degrees and the endless mass of olive groves and fruit trees - that's what makes the bar a unique place for educational and wellness recreation. Also, the bar is a major port city in the country, the passenger terminal and a large yacht club. Ferries to Italy and regular and direct flights from airports of Montenegro, one of which is in Tivat (50 km from the town of Bar), and the second near Podgorica (30 km from Bar). www.yourhome.bar/en

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CORP ORAT E

SAVO IČEVIĆ Country Manager, Gebrüder Weiss Montenegro

SAFE AND QUALITY PARTNER Gebrüder Weiss is a safe and quality partner, and, as a company, has been doing business all over the world while adhering to the immutably high business standards

ebrüder Weiss has been operating in Montenegro since 2011. When we launched our operations in Montenegro we were very mindful of the huge potential of this country and its development course which was quite visible even back then. Our forecasts, in that respect, did come true so we can see that, today, the Montenegrin market is very appealing to investors – says Savo Ičević, Country Manger for Montenegro at Gebrüder Weiss. How do you, from the viewpoint of a logistics company, perceive the large-scale projects in road and railway infrastructure? — The Gebrüder Weis Company has always been striving towards progress and seizing new opportunities, so we are mindful of the large-scale projects that will raise the quality of our services. In terms of the projects in road and railway infrastructure in Montenegro, we would like to single out the construction of the Bar-Boljari motorway which is going to facilitate a better connection between Montenegro and other destinations that we use, and, in turn, make Montenegro more accessible and more appealing to investors, tourists etc. Once this motorway is con-

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structed we are going to be able to offer much better services of higher quality. We should also not forget the modernization of the railway infrastructure. Every project in this segment will create an opportunity for us to become better and more competitive on the market, and, by doing so, provide better sevices to our clients and reach our full potential. What do you think of the potential of the Port of Bar compared to other, neighbouring ports, and how important is this port for your business? — The Port of Bar is the biggest Montenegrin port and an important port on the Adriatic. It has an excellent position which gives Montenegro a maritime connection to the rest of the world. However, the Port of Bar, in itself, is not enough because it is vital to modernize the rest of the road and railway infrastructure in Montenegro so that the goods that arrive to the port could be transported in accordance with all good business practice rules. This is the reason why sometimes we feel that other ports, in the immediate surroundings, are more appealing due to having a better connectivity with the road infrastructure. Of course, the Port of Bar has to be modernized in order to increase its

capacity. The Port's development course is definitely a good one, and continuing on that course could only be more beneficial, and result in our company providing even better services. The Montenegrin authorities have recognized the exceptional potential of the Port of Bar, and we strongly support further investments in the port that would facilitate its development and be beneficial for all of us.

We are focused on progress and seizing new opportunities, so we are mindful of the largescale projects that will raise the quality of our services

How much has the potential of the Montenerin market changed since 2011 when your company started doing business here? — When we launched our operations in Montenegro we were very mindful of the huge potential that this country had and its development course which was quite visible even back then. Our forecasts, in that respect, did come true so we can see that, today, the Montenegrin market is very appealing to investors. Foreign investors have recognized Montenegro as a safe and desirable investment destination. The growing number of foreign investmetns, which has turned into a stable trend in Montengro, is actually the best indicator of the country's development which, of course, has a positive impact on our business too. We

have been continuosly growing in Montenegro, and bearing in mind that Gebrüder Weiss is a company known for the quality of its services in Europe and the rest of the world, foreign investors often pick us for business partners and reliable collaborators. Who are your biggest clients in Montenegro? — Gebrüder Weiss is a safe and quality partner which has been doing business all over the world, and has been adhering to the immutably high business standards. The prerequisites that we fulfill in terms of realiability, precision, innovation and hard work have been recognized by the big global companies which have been cooperating with us in continuity. We always choose to do business at the highest possible level. It gives us a great satisfaction to say that the work done by our company is recognized and awarded through long-term col-

laborations, the happy clients and the feedback we get which is a great incentive for us to continue doing what we've been doing. How many opportunities does the development of elite tourism in Montenegro create for companies like yours? — Elite tourism is a budding segment in Montenegro and, as such, brings wealthy clients here who also have big demands and expectations. We can respond to these challenges which is why we are looking forward to the development of this tourism segment. Montenegro imports everything that the clients of such a high caliber need, and we can provide quality service that they can count on. The point is that domicile companies need to be able to fulfill various needs that such clients have, which we can do in terms of transport and logistics. What would be your key rec-

We are focused on progress and seizing new opportunities, so we are mindful of the largescale projects that will raise the quality of our services

ommendations for improving the business climate here and especially boosting the logistics potential? — The business climate in Montenegro has a great chance for exceptional development. If this development is geared towards providing the best possible services and fulfilling client needs, than we are on a good way to have a healthier and more prosperous business climate in Montenegro. Low quality is quickly spotted and cannot survive on the market longterm. Hence, we are confident that the way we have chosen yields good results and contributes to a healthy business climate. Logistics is a challenging segment in every aspect because we always have to keep up with the demands of our clients. Our services have to be of top quality which is why we always strive towards development and recognizing the potential, while our clients, in turn, recognize and choose us.

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CORP ORAT E

VESELIN MIJAJLOVIĆ Director of the Regional Centre for Divers Training and Underwater Demining (RCUD)

www.rcud.me

SIGNIFICANT CONTRIBUTION TO IMPLEMENTATION OF INVESTMENTS The fact that speaks volumes about the role that RCUD plays in preparing the terrain for the implementation of investments in tourism and energy sector is that, in Boka Kotorska Bay alone, we have demined over 1 million square metres of the seabed

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he Regional Centre for Divers Training and Underwater Demining (RCUD) was established 15 years ago, and has been very successfully carrying out demining activities. Additionally, the Centre is engaged in sea rescue operations of both people and material goods. The Centre is the recipient of many international awards, with the most valuable being the recent award by the Montenegrin Chamber of Commerce – says Veselin Mijajlovic, the Director of RCUD.

What role does the Regional Centre for Divers Training and Underwater Demining play in preparing the terrain for the implementation of investments in tourism and energy sector? — The fact that speaks volumes about the role that RCUD plays in preparing the terrain for the implementation of investments in tourism and energy sector is that, in Boka Kotorska Bay alone, we have demined over 1 million square metres of the seabed including: • In 2004, we removed around 65 tonnes of the World War II mines and explosives from the seabed of the Verige strait; • In 2008, we removed around 17 tonnes of the World War I and II explosives from more than 700,000 square metres of the seabed close to the former military base Arsenal which is today Porto Montenegro; • In 2014, we removed approximately 10 tonnes of various ex-

The divers we train at the Centre have not only contributed to the higher water safety, but also to the economic development of the countries in which they were engaged in on removing underwater mines from various wars in order to create conditions for the construction of facilities that benefit these countries’ development. Additionally, they have also contributed to Montenegro’s regional cooperation which, through the activities of RCUD, has been assisting in resolving the problem of safe use of water facilities.

plosives from 200,000 square metres of the seabed near the former military base in Kumbor. Apart from making the narrow Verige strait completely safe, the construction of the tourist facilities in Porto Montenegro in Tivat and Portonovi in Kumbor could not have started until we had successfully and efficiently demined those areas from the World War I and II explosive ordnances. At the moment, we are successfully implementing a project which entails carrying out anti-mine underwater inspection and demining in the area where the electrical cables that will connect Italy and Montenegro should be laid. We have made this project, which is not only important for Montenegro, but also for the EU, completely safe in terms of removing the risk that the residual explosive devices carry.

performed search and rescue operations in and outside the Montenegrin waters. In the last 15 years, since the establishment of RCUD, we have received over 160 calls for help in search for people who drowned and their removal from the water. These are very difficult moments for families who have lost their nearest and dearest in this way, but were not able to locate them in order to give them a proper burial and soften the blow of losing them. Our divers sympathize with those families and often risk their own lives by diving in the canyons of wild rivers, deep lakes or the sea.

You have been participating in very complex rescue operations of people and material goods. Could you give us a few examples of this?

Considering that yours is a very responsible and dangerous job, what kind of qualities are you looking in divers?

— Apart from underwater demining, we are also involved in rescue missions that involve people and material goods on water. All of these activities are of both public importance and have a humanitarian character, particularly when our divers are hired to respond to calls from our citizens regarding underwater search and rescue operations and finding people who drowned. Montenegro’s divers are known for their humanitarian efforts and I think that we should continue to nurture this while providing support to young divers and helping them to perpetuate this humanitarian tradition. I have been training and leading diving operations for three decades now, and, so far, we have responded to the pleas of around 500 families on which behalf we have

— There are two types of danger that befalls divers – the first one is when they are searching for people who drowned in very bad weather because, oftentimes, accidents on the roads near a body of water happen in this kind of weather, and the second one is when they are engaged in underwater demining and removal of explosive devices. This is why it is so important that we have professionally trained divers who are certified in line with the relevant international standards, doing both types of job. We should not have amateur divers doing these kinds of things because that can end in fatalities, which did happen a few times as a result of ignorance, lack of discipline and lack of experience. In my thirty years of running diving operations, my biggest

How many residual explosive ordnances are there in the Adriatic Sea, and especially in the Montenegrin portion of the Adriatic Sea? — There are still explosive devices in the Adriatic Sea that are remnants of the 20th century wars. As far as the Montenegrin seabed goes, we can’t really say that it is completely clean, but it is definitely the cleanest and the safest in terms of unexploded devices thanks to RCUD’s fifteen years of engagement. Montenegro has contributed a lot to the removal of the residual unexploded devices in the sea and other bodies of water not only in Montenegro, but in other countries too. This started back in 2002 when the Montenegrin government made a decision to form RCUD. The US government and the EU provided a lot of support to the Centre in the beginning, and owing to that support, we have established one of the best and most renowned schools for divers - deminers in which, apart from the professional divers from Montenegro, we have also trained professional rescue divers and divers from security services of Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Albania, the Russian Federation, Macedonia and other countries.

Montenegro has contributed a lot to the removal of the residual unexploded devices in the sea and other bodies of water not only in Montenegro, but in other countries too

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success is that none of the divers I have managed injured themselves, let alone suffered from something graver when diving.

in 1960, is thought to be tantamount to the Nobel Prize, and was given to 190 organizations and individuals so far including Jacques Cousteau, Walt Disney, Jacques Piccard, Enzo Maiorca, National Geography, Japanese company Nikon, Rolex, the Agnelli family, the French national television, CMAS, and others.

How many members does your centre have today, and how to do you recruit new members? — We have over 70 deminers that we have trained with 10 of them being permanently employed by RCUD. In terms of training and recruiting, I would like to underline that RCUD trains the divers in accordance with its own Standard Operating Procedures for Underwater Demining which, in 2004, were drafted and adopted by the South-Eastern Europe Mine Action Coordination Council (SEEMACC) in line with the standards prescribed by the International Diving Schools Association (IDSA) of which we are members, and which is the only international umbrella organization that conducts training of professional divers of all categories, and other diving professionals.

Owing to the mentioned activities, RCUD has become one of the most recongized underwater demining organizations in the world, and, as such, is the recipient of many international awards. Could you say that you are not lagging behind other similar organizations in the world at all? — RCUD is the recipient of the 2015 Academy Award which was officially presented to us in Palermo on 27th September by the International Academy of Underwater Sciences and Technique. The Academy’s rationale for giving us this award was the following: “This award is given for the tireless and determined commitment of this humanitarian organization in making waters safe and clear from unexploded ordnances in former conflict areas. Furthermore, this award is given for their ability to establish a training centre that gathers volunteers and passionate divers united by their common will to protect people and nature, even at the risk of their own lives”. The award, which was founded

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RCUD is the recipient of the 2015 Academy Award by the International Academy of Underwater Sciences and Technique

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Apart from the said, extremely prestigious award that we have been given, we are also the recipient of the following awards: • “The Award for Humanitarian Work”, received in Rome in 2011 from the jury of the AQ International Organization Pelagos, based in Idria, Italy; • An award and a plaque for “The Professional and Efficient Underwater Demining of 220,000 Square Metres in Bulgaria”, received in Sofia in 2011 from the Bulgarian Ministry of Defence apropos the successful completion of underwater demining operations; • “The Sea Star” which is the first place award for “The Contribution to Safety and Protection of Seas and Oceans”, received in Rome in 2005, at the gathering in honour of the 30th anniversary of the Barcelona Convention for the Protection of Seas and Oceans which was given to us by Rosalba Guigni, the President of the World Organization for the Protection of Seas and

Oceans, MAREVIVO. • An order and a plaque for the contribution to security from the President of the Federal Republic of Yugoslavia.

You have recently received an award from the Montenegrin Chamber of Commerce. What does this award mean to you? — I am happy and proud of this award. So far, in my capacity as the head of RCUD, I have accepted numerous awards and recognitions in the country and abroad on behalf of my colleagues, but I have to say that this is my favourite award so far. For two reasons… The first one is that this award is given by the people who are creating new values; the people who are building our joint house called Montenegro while making it more comfortable and more beautiful in the process. The people who made a decision to give us this award, and who are assembled in the Montenegrin Chamber of Commerce, are people who earn their living on which the economic development of Montenegro and its longevity rest on. That’s the reason why we are so proud of this award. The second reason is that this award does not only belong to the courageous and bold divers who often risk their own lives helping others when no other help is available but also to their families who are waiting, anxious and worried, for their sons, fathers, brothers, and husbands to dive out of the dark and cold depths of water trying to neutralize the mines deep down, by themselves, and, in doing so, prevent people from getting killed. These are the people who are helping others when the dark and deep lakes, seas and wild rivers claim lives of the people’s nearest and dearest who were killed in traffic or other accidents that unfortunately happen. For me personally, this award is not only a proof that we have been doing the right thing all these years, but it is also a unique guidepost for the generations to come to continue walking down the path of humanity and prosperity for their own country.

NEW ERA – OLD TRADITION

CORP ORAT E

RUPICE WINERY MONTENEGRO

This is a vineyard with a real history and tradition which wine has been a dignified addition to many genteel dining tables for over a century now

Owner of Rupice Winery Dubravka Ivanišević with granddaughter Manja

he heiress of the idyllic-looking vineyard and the owner of the Rupice Komanske winery, Dubravka Ivanišević continues with making DI VINE, a wine that she puts her personal touch on and that has the real European flavour. She says that her vineyard operates in a traditional way – everything is done manually – and the annual production is somewhere in the region of 1,000 bottles. The vineyard’s location, the land, the air and the sun certainly make the biggest contribution to the quality of grapes here, but the owner also invests a lot of love, work and dedication into it. Vranac and Kratošija are the grape varieties fused in into the unique coupage of DI VINE which give the wine the optimal balance between sweet and sour, while Sangiovese and Marceline give it harmonious taste, the freshness, the aroma, and the deep cranberry colour. In 2015, both the wine and the winery received two fantastic awards – a medal at Decanter in London awarded to DI VINE, while the winery received the Cultural Trip Top 10 award. These awards are even more valuable because we are talking about a small winery which provided a small medal-winning sample INFO

unlike big wineries and wine productions, which use several thousand kilogrammes of grapes and produce thousands and thousands of litres of wine, and can provide many medal-winning samples. In early 2016, DI VINE had another great success when HRH Prince Charles and his wife visited Montenegro, and sampled DI VINE which they both called “special”. Dubravka Ivanišević proudly underlines that she is honoured to have satisfied the high criteria of the British royal family. When she visited London for the first time ever and waited in front of the Buckingham Palace for the change of guard, never in her wildest dreams did she imagine that she would meet and personally present her own vineyard and wine to a member of the British royal family. She also never dreamed of showing photographs of her and the British Royals together to her grandchildren, as well as a thank you letter written to her by the British Embassy. “My wish is to bring the longlost spark to the vineyard and for the wine from Rupice Komanske to become in high demand again”, she says and adds that is something that has faded away slowly in the last few decades. "For me, this is, of course, the crowning achievement of my dedication and love towards every

grape we grow. Every success also brings more obligations. We need to maintain the high quality and continue improving too. Today, it is becoming increasingly hard to produce good wine. The climate plays a very important role in it and the climate has not been a friend to winegrowers. There is a general decline in production of wine in traditionally the biggest wine making countries like France, Italy and Spain”, Dubravka says. DI VINE is a wine for real connoisseurs. The winery’s clients are passionate consumers who demand quality and appreciate rare wine. They usually order DI

Prince Charles with Camilla, Duchess of Cornwall

VINE directly from the winery. This wine is also served at the Forza Mare Boutique Hotel in Kotor, Forza Terra in Dobrota, and in the restaurats: the Stari Mlini in Ljuta, the Demižana in Budva, the Villas Oliva near Sveti Stefan, and the Tažex Wine Shop Zelenika. Apart from the winery, the wine is also sold at Podgorica and Tivat airports.

Rupice Winery Montenegro - Vinarija Rupice Crna Gora Moskovska 13, 81000 Podgorica, Montenegro • Tel: +382 68 313 068 • Web: www.rupice.me • E-mail: di@t-com.me MONTENEGRO 2017

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DUBRAVKA NEGRE Head of the Western Balkan Regional Office of the Europen Investment Bank (EIB)

INTERVIEW

SUPPORTING MONTENEGRO ON THE EU PATH EIB’s support is focused on rising the quality standards of national system and fostering Montenegro’s integration into the European Union

IB strongly contributes to the large infrastructure projects in Montenegro within the Connectivity Agenda in the Western Balkans, but also supports the private sector development and SME financing, all which contribute positively to the economic growth and creation of employment. These are just some of the areas of the EIB’s work in the country says Dubravka Negre , Head of the Western Balkan Regional Office of the Europen Investment Bank (EIB). Which infrastructure projects in Montenegro has EIB recognized as the most important from the Connectivity point of view? ― As far as the Connectivity Agenda in the Western Balkans, EIB is very supportive of it and one of the lead IFIs since the launch of the Berlin process in 2014. We have already signed several grant agreements which combine EU grant funds with our favourable credits, including in Montenegro. In this costal country, we are supporting railway infrastructure modernisation and

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rehabilitation works across southern, central and northern Montenegro, along the Bar – Podgorica - Vrbnica railway line forming part of the Orient/East Mediterranean Extended TEN-T corridor. The project aims to remove speed restrictions, enhance the reliability of infrastructure, reduce infrastructure maintenance costs and enhance safety along the 167 km single track electrified standard gauge line.

This project is very important from the connectivity point of view between Montenegro and Serbia, and will improve railway infrastructure leading to the port of Bar which is of big importance to Serbia and other Central and Eastern European countries for the freight traffic in particular and access to sea. Similar improvements are needed on the Serbian side in order to render the whole railway link modernized with increased speed and safety.

WE ARE VERY ACTIVE IN FINANCING THE IMPROVEMENT OF THE NATIONAL ROAD NETWORK ACROSS THE COUNTRY AND WE PLAN TO CONTINUE DOING SO THIS YEAR AS WELL AS TO SUPPORT SME FINANCING

What are your main investment goals in Montenegro besides the improvement of railway infrastructure? ― As in the rest of the Western Balkans, in Montenegro, EIB’s support is earmarked to raise the quality standards of national system and foster Montenegro’s integration into the European Union. The EIB’s financing of infrastructure projects contributes to higher investment by the private sector and thus supports economic growth in the country. We also contribute to employment generation via infrastructure investments and

though small and medium size enterprise (SME) financing. SMEs are important drivers of growth, employment and innovation in Montenegro. SMEs in Montenegro employ large part active working population and supporting access to finance for SMEs is a top priority for the EIB Group. We are also very active in financing the improvement of the national road network across the country and we plan to continue doing so this year, as well as to continue financing water supply systems and waste water infrastructure. To that end waste water treatment plants investments in Niksic, Podgorica, Plevja and Rozaje are underway. Recently you’ve signed a new contract with Investment Development Fund. Which projects you will support through this credit line? ― We have a long standing relationship with IDF and have indeed signed earlier this year a EUR 50m contract or the first tranche of EUR 100 million approved financing for IDF. Through this support we facilitate access to finance for SMEs in Montenegro at better financing conditions and longer term than otherwise would be available in the market. SMEs up to 250 employees and Mid-Caps up to 3,000 employ-

WE WOULD BE WILLING TO CONSIDER INVESTMENTS INTO MUCH NEEDED IMPROVEMENT OF THE SOCIAL INFRASTRUCTURE, SUCH AS MODERNISATION OF SCHOOLS AND HOSPITALS AS WELL AS TO SUPPORT INVESTMENTS IN TOURISM AND CULTURAL HERITAGE ees as well as municipalities, can improve their access to long term funds via the local banking sector through this support. Capital investments of SMEs including a portion of the working capital can be financed by these funds in eligible sectors. Are you satisfied by the level of utisation of funds compared to signed contracts? ― We are. The level of disbursed funds when compared to the volume of the signed financing stands at some 82%, which is sat-

isfactory. That doesn’t mean that there are no areas that need improvement. Better project preparation and project management are some of the areas which we are successfully addressing with our partners, with further help of the grant funds that we aim to deploy to that end. Taking into consideration new initiatives that EIB has launched in the Western Balkans which are the areas of support planned for Montenegro? ― As stated earlier, we plan to support this year rehabilitation and modernisation of the national road network across the country with the improvement of safety conditions and upgrade of the infrastructure. We also aim to expand our activity to other sectors of importance for Montenegrin Government such as tourism, culture, municipal infrastructure as well as to support private sector development. As we already do in other countries of the Western Balkans, we would be willing to consider investments into much needed improvement of the social infrastructure, such as modernisation of schools and hospitals. All this would fall under the newly launched Economic Resilience Initiative which aims to deploy EUR 3.5bn in the Western Balkans until 2020.

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ECONOMIC COOPERATION

SOLID RESULTS IN EXTERNAL TRADE

In the last five years, external trade between Serbia and Montenegro amounted between 700 and 800 million EUR, and through direct contacts and business forums, the two countries have been exploring new opportunities for economic coopertion and investments

n 2016, Montenegro ranked 6th on the list of the countries that Serbia exports to the most, and 36th on the list of the countries that Serbia imports from the most. According to the data collated by the Serbian Statistical Office, in the period between 2011 and 2016, the value of the external trade between Serbia and Montengro fluctuated between 700 and

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800 million EUR. The best result was accomplished in 2013 when the value of the external trade was 759.4 million EUR with a big surplus on the Serbian side of 524.6 million EUR and 545.5% export to import ratio. In 2011, the value of the external trade amounted to 731.1 million EUR with Serbian exports to Montenegro amounting to 636.5 million EUR and imports 41.9 million EUR

with a 673.1% export to import ratio in Serbia's favour. In 2012, the total value of the Serbian â&#x20AC;&#x201C; Montenegrin external value reached 718.3 million EUR with Serbian exports to Montenegro amounting to 625.5 million EUR, and imports from Montenegro 92.7 million EUR. Serbia's surplus in this external trade amounted to 532.9 million EUR with the export to import ratio of 674.9%. In 2013, the total external trade between the two countries reached 759.4 million EUR, with Serbian exports to Montenegro amounting to 641.8 million EUR, and imports 117.6 million EUR. The trade surplus stood at 524.6 million EUR and the export to import ratio at 545.5%. The year later, in 2014, the total external trade amounted to 618.7 million EUR with Serbian exports to Montenegro valued at 568.1 million EUR, and imports at 50.6 million EUR. The surplus stood at 517.6 million EUR and the export to import ratio reached 1,112.4% In 2015, the value of the external trade amounted to 668.5 million EUR. Serbia exported 611.9 million EUR worth of goods and services, which was a 7.7% hike relative to 2014. Serbia's import from Montenegro grew by 11.6% compared to the same period in 2014, and it amounted to 56.5 million EUR. The external trade surplus stood at 555.4 million EUR while the export to import ratio was 1,083.0%.

In 2016, the value of the Serbian – Montenegrin external trade reached an amount of 709.8 million EUR which was a 6.2% increase relative to 2015. Serbian exports to Montenegro amounted to 651.5 million EUR, which was 6.5% more than in 2015. Serbian import from Montenegro also grew by 3.2% compared to 2015, and it amounted to 58.3 million EUR. The external trade surplus reached 593.2 million EUR. The same year, Serbia mostly exported the following products to Montenegro - cars (2.7%), water with added glucose (2,1%), medication (1.9%), biscuits, waffles and wafers (1.8%), sunflower oil and safflower oil (1.6 %), extenders kits for painting and decorating (1.5%), non-alcoholic drinks (1.4%), animal feed products (1.3%), wheat flour (1.2%), and cigarettes (1.2%). In 2016, Serbia mostly imported the following products from Montenegro unalloyed aluminum (19.7%), grape wine (11.3%), electric power (8.7%), salted and smoked pork (7.1%), medication / antibiotics (5.9%) , unclassified goods (5.7%), non-agglomerated lignite (3.6%), coniferous wood of 6mm thickness (3.4%), other medication (2.9%), and newspapers and magazines (2%). In 2015, Serbia mostly exported the following products to Montenegro - non-alcoholic drinks (4.4%), cereal-based products, flour, starch (2.9%), milk and dairy products, other than butter or cheese (2.9%), furniture parts (2.9%), live animals (2.8%), passenger vehicles (2.7%), medication (2.6%), pigments and varnishes (2.5%), edible and manufactured products (2.3%), and alcoholic beverages (2.3%). In 2015, Serbia mostly imported the following products from Montenegro medication (16.7%), alcoholic beverages (12.6%), energy (7.7%), meat and edible meat products (7.2%), aluminum (6.6%), passenger vehicles (5%), wood - rough or rough (4.5%), pellets, peat and brown coal (4.1%), wood-free treated (3.9%), unsorted goods (3.5%) . U 2015. godini Srbija je najviše uvezla iz Crne Gore lekove (16,7%), alkoholna pića (12,6%), električnu energiju (7,7%), meso i jestive mesne proizvode (7,2%), aluminijum (6,6%), putničke automobile (5,0%), drvo - unprocessed or rough (4,5%), briquettes, brown coal and peat (4.1%), plain treated wood (3.9%), and unsorted goods (3.5%). The following Serbian companies are the biggest exporters to Montenegro: Među najvećim izvoznicima iz Srbije u Crnu Goru izdvajaju se: JP Elektroprivreda, Belgrade; Imlek Padinska Skela, Belgrade; DELTA SPORT DOO, Belgrade; Coca-Cola HBC Serbia, Zemun; INVEJ DOO, Belgrade, Zemun; TCK DOO Kosjeric; Hemofarm ad,

Vrsac; Farmakom MB Sabac Dairy; RTB INVEST DOO, Bor; Farmakom MB Sabac Dairy; Carnex ad, Vrbas; Stark AD BELGRADE; Knjaz Miloš AD, Aranđelovac; MercedesBenz, Serbia and Montenegro doo, Belgrade; HENKEL MERIMA LLC, Krusevac; and DIN NIS AD (Philip Morris International tobacco factory). The following Serbian companies were the biggest importers of the Montengrin goods and services: JP Elektroprivreda, Belgrade; Hemofarm ad, Vrsac; 13 JUL DOO, Belgrade; KNEZ PETROL DOO, Zemun, Impol Seval AD Sevojno; RTV INVEST DOO, Bor; Galenika AD, Belgrade; DAFAR DOO Zrenjanin; MORAČA TRADE DOO, Uzice; MORAČA TRADE DOO UŽICE; STAR FOOD; Weathers PROM DOO, Belgrade; STRATUS OBODGENEKS DOO, Belgrade; and JP SERBIAN RAILWAYS BELGRADE. According to the National Bank of Serbia, the total net investments my Montenegrin residents in Serbia in the period from 2010 to 2016 amounted to 136.82 million EUR which puts Montenegro in the 19th place on the list of the biggest non-resident investments in Serbia in the observed period. According to the data compiled by Bisnode on 9th December, 2016, the total number

IN 2016, MONTENEGRO RANKED 6TH ON THE LIST OF THE COUNTRIES THAT SERBIA EXPORTS TO THE MOST, AND 36TH ON THE LIST OF THE COUNTRIES THAT SERBIA IMPORTS FROM THE MOST

of active Montenegrin companies and business people in Serbia stood at 3,977 (92 companies and 3,885 individuals). The data collated by the Serbian Statistical Office in line with the Eurostat methodology shows that, in 2014, there were a total of 2,624 subsidiaries in which foreign companies had a 50% or higher stake, with 32 of them having Montenegrin capital and employing 1,126 workers. The data collated by the National Bank of Montenegro, relating to the total Serbian investments in Montenegro in the period from 2004 to 2015, shows that Serbia invested a total of 389.2 million EUR. Different sources show that there are over 1,500 companies in Montenegro founded by either legal entities or indviduals from Serbia. Serbia has signed the following intergovernmental agreements with Montenegro: the Double Taxation Agreement and the Memorandum of Understanding on the Exchange of Information about Deposits in the Former Dafiment Bank (2011); Agreement on Cooperation and Mutual Assistance in Customs Matters signed in November 2010; and Agreement on Border Control in Railway Traffic. In October 2009, the two countries signed the Agreement on Economic Cooperation and the Agreement on Mutual Promotion and Protection of Tnvestments. Following the signing of the Agreement on Economic Cooperation, a Mixed Intergovernmental Commission for Bilateral Cooperation (2009) was formed. They also signed the Social Security Agreement in December 2006, which entered into force on 1 January, 2008. On 10 June 2006, in Belgrade, zhe Republic of Serbia and the Republic of Montenegro signed the Aagreement on the Membership in International Financial Organizations and Demarcation of Financial Rights and Obligations.

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— Text —

Žikica Milošević

M TYPICALLY ECONOMY

MEDITERRANEAN… …And typically mountainous 52

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editerranean? Mountainous? Why is that? Well, it is simply due to geography, given that the Southern part of Montenegro is, well, Mediterranean, while Northern Montenegro looks more like Switzerland, with fresh mountain peaks and “katun” shacks, wooden cottages and greenery. Thus, the economy of Montenegro has a similar structure to the economy of, say, Cyprus, with tourism, real estate, banks, salt and fruit, on the one hand, and Alpine skiing, dairy products and forestry on the other.

CLEAN PEARL OF THE MED

The area known sometimes Boka kotorska or Bocca di Cattaro, the Bay of Kotor or simply Boka, whatever historical translation you use, is considered the “pearl of the Mediterranean”, while sometimes that moniker is used for the entire country. This is largely due to the fact that Montenegro was declared the world’s first ecological state, back in 1992. That meant simply that no more investments would be made in dirty technologies, like the Aluminium Combinate in Podgorica, for example. On the other hand, it relies on the old tradition of “not being too industrialised”, which was considered a misfortune back in the day. Specifically, since Montenegro was cut off from the main terrestrial corridors and only situated along the main maritime routes, it proved very hard to lure investments to the Kingdom of Montenegro, which King Nikola II set out to do. Resorts on Lake Skadar were never built, although some great achievements were made, like the world’s first regular bus service. Beer was popular at the time, so Nikšićka Brewery was built. And... well, not much else. But Montenegro preserved its unspoilt nature and clean environment, which many other Mediterranean countries failed to do. It was a touch of luck. While the neighbouring republic of Bosnia-Herzegovina was heavily industrialised, and thus polluted, in the times of Socialism, which was reflected in the republic's coat-of-arms with chimneys, Montenegro was silent and clean. But it could be even better.

THE ECONOMY OF RETAIL AND TOURISM

When Yugoslavia fell apart, the only two republics that stuck together were Montenegro and Serbia. They formed a federation and, suddenly, 10 million

people from Serbia decided that there is no country like Montenegro for holidaying. Montenegro became one of the most visited resort countries in the world, as it became a hub for almost all Serbians in the 1990s, and later Macedonians and Bosnian Serbs. When the situation improved, the wars ended and sanctions were lifted, all these people found other holiday options to mix with Montenegro,

THE CASES OF PORTUGAL OR GREECE SHOULD NOT BE TOO WORRYING, SINCE THEY WERE HIGHLY DEVELOPED WHEN THE CRISIS HIT THEM, WHILE MONTENEGRO STILL HAS HUGE POTENTIAL FOR FURTHER DEVELOPMENT. AND SINCE THERE IS NO DIRTY TECHNOLOGY ON THE CARDS, DEVELOPMENT MUST BE ECOLOGICAL but Montenegro was then discovered by Russians, Ukrainians and Belarusians, as well as tourists from other Central and Western European nations. The situation changed in 2014, when Ukraine fell into civil unrest, weakening its economy, but wealthy Russians and Ukrainians were still in love with this Slavic coastal paradise, and the real estate market flourished in the 2000s. However, it should be

noted that the country could easily slide into overbuilding, as Spain did several decades ago, and that is something to consider. Moreover, the cold relationships with Russia, the main investor in Montenegrin tourism, could impact negatively the overall figures, but that will be proven either way in the years to come.

THE PROSPECTS

The Government of Montenegro certainly believes that NATO accession will provide some solid and additional impetus to possible Western investments, since it is fairly certain that the Eastern ones, like Russian, are set to diminish in size and scope. Nevertheless, positive economic data has continued to accumulate since the beginning of this year, suggesting that the country started the year on a solid footing. Retail sales expanded at a solid pace in the first quarter, while exports grew at another double-digit rate in April. The tourism sector continues to grow at a sharp pace, providing a boon to households, according to some reports that we should trust. The World Bank says that Montenegro has great potential but is hindered by structural shortcomings that have to be overcome in order to create a self-reliant economy. The rosy picture which was shown in positive prospects is quite cool, but countries that don’t mint their own currency are highly dependent on foreign tremors and market irregularities, so Montenegro should take care. But the cases of Portugal or Greece should not be too worrying, since they were highly developed when the crisis hit them, while Montenegro still has huge potential for further development. And since there is no dirty technology on the cards, development must be ecological, which is great.

MONTENEGRO WAS DECLARED THE WORLD’S FIRST ECOLOGICAL STATE, BACK IN 1992. THAT MEANT SIMPLY THAT NO MORE INVESTMENTS WOULD BE MADE IN DIRTY TECHNOLOGIES MONTENEGRO 2017

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CORP ORAT E

BUDVANSKA RIVIJERA

DECADES-LONG LEADERS OF MONTENEGRIN TOURISM The Budvanska Rivijera Hotel Group has been one of the top tourist service providers in Montenegro for decades, as the group continues to be the dominant player in innovating the entire tourist product segment

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he company operates five hotels in total, situated in the most attractive locations close to the shore and beaches in Budva and Petrovac. The tourist development Slovenska Plaža, the hotels Aleksandar and Mogren in Budva, and Palas and Castellastva in Petrovac, cummulatively have 1,608 rooms and apartments. The Budvanska Rivijera Group is the first tourist company in Montenegro to get the international food safety certificate ISO 22000:2005 in October 2014. In the meantime, the company

has implemented international standards ISO 9001 and ISO 14001 which, along with the ISO 22000 standard, comprises an integrated management system. THE SLOVENSKA PLAŽA TOURIST DEVELOPMENT – with 1,016 rooms and apartments and a variety of amenities and activities, this tourist facility is the perfect reflection of a typical Mediterranean town with green areas and colourful Mediterranean plants. Six villas in this hotel complex are 3+*** category, while four villas are 4***.

Slovenska Plaža is among the first hotels in Montenegro to be certified with the Eco Label environmental certificate which just validates the Group's focus on environmentally friendly development.

doubles as a town bar, is the favourite place of gathering both for the locals and the visitors of Budva. There is also the new hotel called Makarul with a cuisine which is a unique fusion of traditional and modern.

THE MOGREN HOTEL – Located right across the walls of the Old Town (Stari Grad), the hotel has been known for decades as the symbol of the town of Budva. This is an authentic town hotel, categorized 3+***, with 49 rooms. It is open during winter too when the guests can enjoy in the beautiful views of the sea and of the one of the oldest towns on the Adriatic coast. The Mogren Hotel is an excellent starting point to emabark on exploration of the Old Town because the archeological remnants of the antique Budva are nearby. The famous terrace, that also

THE ALEKSANDAR HOTEL – Following the adaption of the accommodation segment and added amenities, the hotel is now categorized 4****. This is also a family club hotel, the first of its kind in Montenegro, operating under the brand name Blue Star. The newly refurbished hotel has 187 rooms and apartments, a new sports and recreational complex and children facilities.

INFO

THE PALAS HOTEL – This is the most luxurious hotel in the Group, located on the very shore, in Petrovac. It is know for its contemporary design, comfort, hos-

The company operates five hotels in total, situated in the most attractive locations close to the shore and beaches in Budva and Petrovac

pitality and top notch services. Out of a total of 171 rooms, 90 have a view of the sea, and of the islands of Katič and Sveta Nedjelja. Always riding the wave of novelty in tourism, this hotel also has a wellness centre spanning 300 square metres and a gym with latest equipment. The hotel can also host team building workshops and MICE activities. What sets the Palas Hotel apart from its competitors is hosting weddings. In 2016, the hotel received the World Luxury Hotel Award in the category of Wedding Destinations. Surrounded by pine forests and olive orchards, the new hotel called Castellastva is one of the best hotels in the Group. It has 171 rooms and 14 luxury aparments and is categorized as a 4*** hotel. As of recently, the Castellastva has a mini spa, an outdoor pool and a pool bar, as well as an outdoor gym.

E-mail: reservations@budvanskarivijera.co.me • Telephone: 033 402 456 www.hgbudvanskarivijera.com MONTENEGRO 2017

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Monastery Ostrog

MIXTURE L OF SPICES CULTURE

Variety improves 56

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iving in such a vibrant place, at the crossroads of mighty empires and strong civilisations, must make you strong in culture, controversial in mind, and interesting as a whole. Montenegro had such luck and such misfortune to be at a crossroads, yet it stubbornly preserved its uniqueness in the cultural sense. It is clearly easy to say that the culture of Montenegro is quite pluralist, especially in the coastal part of the country,

while the more monolithical varieties of its culture are preserved in the mountains, where you can find tribal influences, clear Orthodox or clear Muslim traces that can be tracked all the way back to the Middle Ages. As its geographical position suggests, Montenegro's culture has mainly drawn influences from Ancient Rome, Christianity, Islam, the Byzantine, Serbian and Ottoman empires, the Venetians, Austro-Hungarians and Yugoslavia. Now we have it all mixed up.

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Žikica Milošević

Sometimes strange for outsiders to understand, like other Mediterranean clannish societies with mountainous traditions (Corsica, Sardinia, Sicily, Georgia, Caucasus, Albania, Dalmatia etc.), Montenegro offers us a wide diversity of cultural influences.

MENSCHKEIT... OR ČOJSTVO

For those engulfed in New York society, there is a famous expression of “being a proper and decent man”, which is the Yiddish word “Menschkeit”. “Manhood” or “being humane”. The exact, or almost exact, same idea exists among Montenegrins, and is called “čojstvo”, “being a man”. It is almost always connected to heroism or courage, so let’s read a definition of the whole idea: “A very important dimension of Montenegrin culture is the ethical ideal of Čojstvo i Junaštvo, roughly translated as “Dignity and Courage”. Another result of its centuries-long warrior history, it is the unwritten code of chivalry that stipulates that to deserve the true respect of their people, a person has to show virtues of integrity, dignity, humility, self-sacrifice for a just cause, respect for others, and rectitude along with bravery. In the old days of battle, this resulted in Montenegrins fighting to the death, with being captured considered the greatest shame.” Marko Miljanov was the man frequently connected with the creation of this concept, but the idea that you should save someone by sacrificing yourself is deeply admirable. This code of conduct is still very much ingrained, to greater or lesser extent, in every Montenegrin's ethical belief system and it is essential to keep this in mind when striving to truly understand them.

TOLERANCE

One of the basic things you can see in Montenegro is tolerance, especially in places where the population is mixed, like in Budva, the Bay of Kotor or Bar and Ulcinj. In Ulcinj the population is mixed with yet another language, Albanian, while the rest of Montenegro speaks one language that is essentially the same but now goes under several different names, so let us refrain from debating it. In the intoxicating atmosphere of Kotor, Herceg Novi or Budva,

YOU CANNOT MAKE ANY MISTAKES: SEAFOOD IS TYPICAL FOR THE SOUTH, WHILE LAMB IS TYPICAL FOR THE NORTH where the Orthodox and Catholic churches mix, processions of religious holidays are attended by everyone, which is one of the main qualities of Montenegrin culture that has been lost in some countries that exchanged populations (Greece-Turkey and Bulgaria became practically mono-ethnic states after the population exchanges of the 1920s) or forced assimilation; Montenegro preserved its true spirit, so that indeed few people know which religion is holding St. Tripun (Tryphon’s) Cathedral, Our Lady of Škrpjela or Sveti Đorđe islands. Even Ostrog Monastery is well known for its ecumenical spirit and is frequently visited by Muslim pilgrims. The mountainous part of Montenegrin, Sandžak, is also a puzzle

of two religions and two languages interlacing, from Bijelo Polje and Petnjica to Plav and Gusinje.

CUISINE

Is there a single cuisine in Montenegro? Of course not. A country so sharply geographically divided must preserve its sharply divided cuisines. Websites say that Montenegro’s Adriatic coastal region has a distinctively Italian flavour, as demonstrated by the bread-making style, the way meat is cured and dried, cheese-making, wine and spirits, the soup and stew making style, polenta, stuffed bell peppers, meatballs, priganice, japraci, raštan, etc. However, even the heartland of Montenegro received a strong Venetian influence, while there is yet another strong influence, which is, naturally, Turkish and Levantine: like in the rest of the Balkans, sarma, moussaka, pilav, pita, burek, ćevapi, kebab, Turkish sweets like baklava and tulumba, etc., with a variety of spices. Living in the Middle Ages, where the connections with Hungary – which then held Bosnia, Croatia and half of Serbia and Montenegro – were much stronger, left us with goulash, satarash, and djuvech, which are also very common. When Napoleon left, the former Venetian possessions in Montenegro passed into the hands of Austria, and hence came the Viennese influence, which ensures that additionally crêpes, doughnuts, jams, myriad types of biscuits and cakes all make a contribution to the average Montenegrin's waistline. Vienna-style bread is the most prevalent type of bread in the shops, but you cannot make any mistakes: seafood is typical for the south, while lamb is typical for the North!

EVEN THE HEARTLAND OF MONTENEGRO RECEIVED A STRONG VENETIAN INFLUENCE, WHILE THERE IS YET ANOTHER STRONG INFLUENCE, WHICH IS, NATURALLY, TURKISH AND LEVANTINE MONTENEGRO 2017

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SPIRIT OF MONTENEGRO

HUMOUR AND RESILIENCE

Laconic sense of life and thinking — Text —

Žikica Milošević

here is an official promotional video for Montenegrin tourism shot by NTO Montenegro in which the main character repeats one and the same phrase, the universal "Ču'š” (“Hear that!” or “Listen to that!”), the short form of “Čuješ”, as a unified answer for anything. With an inescapable dose of humour, this is a kind of trademark of the laconic spirit that all Montenegrins possess, with which they are unmistakeably recognisable as smiling and resilient people.

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LACONIC VOCABULARY

The video’s opening sequence tells us about a very old tree, to which the guy replies with “Ču'š!”, which is translated as “Is it possible?”. The second scene shows a restaurant where a girl receives a huge meal and asks, shocked “Is that too much?”, to which our guy, again a bystander, replies “Ču'š!”, while the subtitles read “Try it first, maybe it is not going to be enough!”. The third sequence shows us rafting on the Tara, and in the middle of the whole fuss a wise

guy states that the Tara River Canyon is the deepest in Europe, to which our guy replies austerely “Ču'š!”, translated as “We will talk about it later, man!”. The fourth scene shows two cyclists travelling through Biogradska Gora, when one of them states that Biogradska gora is one of the last untouched forests in Europe, where our guy, once again a bystander, states “Ču'š!” meaning “I thought it was the only one!”. The final sequence shows a trip to Lake Skadar and a girl stating that there are at least 281 bird

species in this national park, with which, of course, our laconic guy appears out of nowhere to state “Ču'š!” once again, this time meaning “Who counted them?”. The video ends with the statement: you will feel and understand even the thing that cannot be translated. That is true Montenegro. It lies in the subtext.

HUMOUR

Another feature that went viral on the internet was a Podgorica native in Stockholm. The guy is supposedly talking very critically about Swedish society, the state and the very city of Stockholm, comparing all of them unfavourably with the supposedly superior Montenegro, while at the same you can clearly notice that he is actually criticising Montenegro. Famous comedians like Andrija Milošević, Mima Karadžić, or those of Montenegrin origin, like Petar Božović, are amongst the top comedians in Serbian film, all due to this innate Montenegrin ability to mock the world and themselves at the same time. It leaves no place for anger, since the Montenegrins do not mock you; they mock the whole world, including their own part. This is a sign that they know things are perhaps bad, but never mind, we can always laugh instead of whining. One of the basic characteristics of Mon-

tenegrin folk humour and satire is quickness of thought and conciseness of expression. Montenegrins say: “Reply to him with smoke in smoke”. This is the current product of people from the people, who are always strong, in a nutshell, and with

MONTENEGRINS DO NOT MOCK YOU; THEY MOCK THE WHOLE WORLD, INCLUDING THEIR OWN PART. THIS IS A SIGN THAT THEY KNOW THINGS ARE PERHAPS BAD, BUT NEVER MIND, WE CAN ALWAYS LAUGH INSTEAD OF WHINING jokes which remain for the people, because they are easily remembered and relayed. Although it is often known who first told the joke, the author is most commonly forgotten immediately, while the story told is connected to various personalities and various places, resulting in the joke entering the lives of the people and becom-

ing popular. If a word is used for a joke or satire, then this is a depiction of the situation, for the preparation of a listener or a set of that psychological moment for which the story is told, which causes laughter. Humour is also present in other aspects of our national creativity. In Montenegrin epic folk songs, for example, people often used humorous stories, especially in the description of personality. The guslars often give a humorous overture before switching to the events that the poem addresses, which are usually benevolent and sometimes salient, sarcastic. At that time, the victims were the listeners. The guslar comments on the faults and the marriage of people, and sometimes the shortcomings of listeners. But this is done exclusively in a cheerful mood and a humorous tone, and it starts from self, in order to be free them to bash other people.

FOOD CUSTOMS

Montenegrins are good and generous hosts. When expecting a guest, according to an old custom, they open their door or gate wide as a sign of welcome. They offer their guest the best food and drink they have in the house, reserve for him the best place at the table and do their best to make his stay in their home as comfortable as possible.

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CORP ORAT E

ŽELJKA RADAK Director of the Montenegrin National Tourist Board

THE MOST IMPORTANT THING IS FOR GUESTS TO BE SATISFIED In the main tourist season, Montenegro has twice as much tourists as actual residents. Extending the tourist season and constant investments in luxury hotels are just a proof of this sector's vitality which employs almost 30,000 people

ear-on-year, Montenegro has been transforming itself into an increasingly attractive destination for tourists from all over the world. We are talking to the Director of the Montenegrin National Tourist Board, Željka Radak about the current season and development plans. Are you satisfied with how the current tourist season has been developing? — This year's tourist season started as a great success. During the first five months, we had 15% more tourists in collective

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accommodation compared to the same period last year, with around 618,000 overnight stays which is a 16% hike. Our aim is to base the budding tourist traffic on the pre- and post-season growth which is why we are especially pleased with the results. The first organized groups of tourists start arriving to Montenegro on 20th March, with most of them coming from the region, Russia, France, Germany, Italy, Turkey, and Great Britain. Hotel managers say that this year’s pre-season is more successful than the last year’s, and good booking results make us confident that we are going to have a good season overall. However, our success is not only measured by the number of tourists, but also by how much did we manage to meet their expectations and how many of them want to come back. If we consider that, in the main season, we have twice more tourists than the actual residents, it is clear how big of a challenge this is for all of us.

How much should Montenegro invest in tourism promotion each year to reach the revenue of a billion euros which is expected this year? — The Montenegrin National Tourist Board, in collaboration with tourism businesses, has been promoting our tourist offer on all major international fairs and tourism exchanges. Together with the Ministry of Sustainable Development and Tourism, local travel agencies and other partners, we have also been implementing various other promotional activities like organizing study visits for the media from all over the world, having outdoor and online campaigns etc. One of the events that contributes to the promotion and positioning of Montenegro as an attractive tourist destination is the arrival of Gubmall 300 rally where owners of luxury cars, including a number of celebrities, travel together through different countries and destinations. This year, they stopped in Tivat.

Last year, around 1 million EUR from the budget of the National Tourist Board was allocated to promotional activities, and more funds are also being invested by various companies, hotels, local travel agencies and others. Where do your tourists usually come from and how much do they usually spend in a day? — In terms of tourist structure, and apart from the traditionally high number of them from the region and Russia, we have more and more tourists coming from the Central and Western Europe, as well as from faraway countries like China, Japan, the United Arab Emirates and Isrel. Together with the Serbian National Tourist Board, we have been promoting Montenegro on all of these markets. According to the Guest Survey conducted by the National Tourist Board in 2014, an average tourist spends aroud 62 EUR a day, while Russian tourists spend the most. To what extent do investments contribute to attracting more tourists to Montenegro, and how many new jobs do they create? — As you probably know, for a number of years now, Montenegro has been attracting both foreign and domicile investors through implementing a set of incentives which are aimed at continuously improving both the investment and business environment. Our country has received investments from over 100 countries, and we are currently implementing several tourist projects like Porto Montenegro, Luštica Bay, Portonova, The Kraljičina Plaža Hotel, Plavi Horizonti, Mamula and others. Their cumulative value has been estimated at around 2.5 billion EUR. We are very happy to see a growing interest for investing in central and northern parts of Montenegro. Only last year, several well-known global hotel brands arrived to Montenegro, namely Hilton to Podgorica, Four Points by Sheraton, which operates under the biggest hotel group in the world Marriott/Starwood, to Kolašin, and Dubai-based H Hotels which opened Centre-

Ville in Podgorica. Also, there is an ongoing project of developing a 4-km-long ski track called Kolašin 1600 with a ski lift, while the plan is also to develop a 21km-long ski track with ski lifts on the Durmitor Mountain. According to the report compiled by the World Travel and Tourism Council, in 2016, tourism and travel sector generated 12,000 new jobs, and when we add to this indirect contributions, the number grows to 27,000 new jobs, or 14.6% of the total number of workers in the country. Which new facilities are going to be opened in the following period? — We are especially pleased about the fact that, since 2012, we have opened 57 new luxury hotels with around 5,000 beds. Last year alone, we opened 20 luxury hotels (four- and five-star) with a total of 2,063 beds. This trend of opening new hotels has continued into 2017, and, so far, we have opened 9 luxury hotels with a total of 317 beds. According to the investor plans, this summer we can expect the

From 2012 to 2016, Montenegro opened 77 new luxury hotels with the trend continuing into 2017 and 9 luxury hotels opened so far

opening of a newly reconstructed Maestral Hotel in Pržno, the Berane Hotel in Berane, and the Majestic Hotel in Budva. Also, this year, we expect to see the beginning of investments into the Jadran Perast luxury hotel complex, as well as into the Durmitor Hotel and Jezero Hotel in Žabljak. A request for the commencement of the works on the Kraljičina Plaža Hotel in Miločer has been submitted, while the drafting of the project documents for the Plavsko Jezero Hotel is ongoing. What strategic measures has Montenegro been implementing to further boost this strong industry? — Easy accessibility of Montenegro is one of the key factors for success. In the last couple of years, we have had an increased air traffic, as well as an increase in the number of destinations that we are connected to. Still, we need to continue developing the current level of accessibility, and especially create prerequisites for having more flights in the off-season.

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Žikica Milošević

TOURISM

ALWAYS MORE TO DISCOVER Always different

here are few places in the world that are so densely populated with wonders as Montenegro. This tiny Balkan country, and Europe’s latest independent country, is something that the slogan of the National Tourism Organisation of Montenegro describes clearly as “Always different”. And that is certainly true: perhaps Lebanon is the only other place where you can ski on mountain peaks one day and, after a few hours' drive, swim in the sea.

TREASURES ABOUND

Although it is already one of the favourite holiday destinations for Serbian and Russian tourists, followed by Ukrainians, Belarusians, Macedonians and Bosnian-Serbs, Montenegro is now trying pretty hard to move away from that image and attract Westerners. For many years the monopolists in Montenegro have applied excessively high airport taxes to repel low-cost

PEARL OF SOUTHERN EUROPE

Tara rafting

Okay, if Budva is the Pearl of the Mediterranean, then Montenegro could be generally called the Pearl of Southern Europe. Between mountains and sea, between East and West, and yet predominantly Christian and secular Muslim, Montenegro is a destination on the rise. Given the most recent complications in the Middle East, not only Egypt and Tunisia, or Israel and Lebanon, nor Syria and Libya, but also the United Arab Emirates, Bahrein, Qatar and Iran, with Saudi Arabia, even flights over that area are full of trepidation. Tensions have even risen in an unlikely place, with the peaceful Dubai and Abu Dhabi in a quarrel with the peaceful Qatar? Really? So, many people, more than ever, have decided to “hunt in known waters”, less exotic, European. And what should they do if all European seaside destinations are already known? Hit the unknown! And Montenegro is one of the last unknown frontiers in Europe for Westerners. Besides Georgia, Romania, Albania and Ukraine, there are few seaside destinations to be discovered like Montenegro. Just as those of us from this part of the world have only recently discovered Malta, Cyprus and Portugal, and partly Spain, those destinations have been known to the Brits since... well, 1948 or so.

BESIDES GEORGIA, ROMANIA, ALBANIA AND UKRAINE, THERE ARE FEW SEASIDE DESTINATIONS TO BE DISCOVERED LIKE MONTENEGRO airlines, but after it dawned on the government that without these taxes many Westerner might come and spend money there, the low-cost carriers were allowed. Let us see how some others describe Montenegro: “Its location on the aquaMONTENEGRO 2017

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THE EVER-INCREASING NUMBER OF LOW COST TOURISTS BRINGS FRESH BLOOD TO THE NIGHTLIFE OF MONTENEGRO, WHICH HAS TRANSFORMED FROM BEING FAMILY-ORIENTATED OR SERBIAN-MUSIC ORIENTATED TOWARDS EMBRACING WORLD TRENDS marine waters of the Adriatic Sea, Mediterranean climate, medieval villages and natural beauty – white pebble beaches, lush national parks, and dramatic, pine-forested mountainous interior – hasn’t made it difficult to attract investment. An early and large marketing boost also came in the form of James Bond’s Casino Royale –

which, while not filmed in the country, set the location of the eponymous casino in the coastal resort town of Petrovac.” Alluring, huh? Well, that’s Easy Jet's description. Nowadays little is left of the crumbling Socialist façades of gloomy Socialist resorts for the working classes of Yugoslavia. Now the idea is for it to be the Balkan Monaco and to attract the world’s wealthiest. Budva is the busiest hub of tourism and there are all sorts of tourists, especially during the Sea Dance Festival, which is an official offshoot of Novi Sad’s EXIT Festival. Sea Dance has transformed into one of Europe’s best beach festivals. Kotor is more for those who prefer historical air to beaches, while the newly discovered Tivat, the coastal home of the country’s second international airport, now benefits from the multi-million-dollar Porto Montenegro marina, often nicknamed the Monte Carlo of the Adriatic: an extravagant spot with super yachts, luxury apartments, nightclubs, helipads and the country’s first ever five-star hotel. If you head northwards you will see the more classy, but mid-class, Herceg Novi, which is both popular and elegant, while if you hit the south you will come across the cosmopolitan Ulcinj, with the fascinating Ada Bojana, and the Port of Bar, with its popular offshoots of Sutomore and the silent ruins of Stari (Old) Bar, now far from the seashore. But it doesn’t end there. This largely undiscovered country is especially undiscovered in its hinterland. There a tourist can find an eco-adventurer’s wonderland, brimming with stunning natural landscapes and a whole host of outdoor activities. Tara rafting, Lim rafting, hiking, mountain-biking or hiking, kayaking on the crystal clear

LOW COST After a long delay, the Montenegrin sky has opened up to low cost carriers, among them EasyJet and RyanAir. EasyJet uses Tivat as its hub for flights from Geneva, Manchester and London, while RyanAir uses Podgorica to fly from the UK, Belgium, Sweden and the Netherlands. The ever-increasing number of low cost tourists brings fresh blood to the nightlife of Montenegro, which has transformed from being family-orientated or Serbian-music orientated towards embracing world trends.

waters of Lake Skadar that straddles the Albanian border, Black Lake, Durmitor National Park, skiing and enjoying winter sports… There are plenty of options for everyone. Old Muslim towns like Petnjica or Gusinje, combined with mountains like Prokletije, can offer a lot for nature lovers, while the genuine Orthodox culture of Montenegrin tribes can be found in the North, together with the national cuisine. If you try to keep on track with flocks of tourists, or to take to the less beaten track, you can be sure that you will enjoy the wild beauty of this country.

TOURIST CAN FIND AN ECOADVENTURER’S WONDERLAND, BRIMMING WITH STUNNING NATURAL LANDSCAPES AND A WHOLE HOST OF OUTDOOR ACTIVITIES 64

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MINI FAIR

„DAYS OF MONTENEGRO TOURISM” IN BELGRADE

Vule Tomašević, Minister Counselor, Embassy of Montenegro, Željka Radak - Kukavičić, National tourist organization of Montenegro

H.E. Branislav Mićunović, Ambassador of Montenegro

ourism of the beautiful all year round destination - Montenegro and several brands from this country, were promoted on the mini fair called “Montenegro calls you to UŠĆE”. This promotional and entertainment event was held at UŠĆE Shopping Center, on June 30th and 1st of July 2017 on the main square of this popular Belgrade shopping center. Many visitors of UŠĆE - the favourite place for shopping and unforgettable moments that offers everything in one place, were able to get acquainted with the current tourist offer of Montenegro. The rich two-day program was also organized, in which, among other guests, pop singer Leontina Vukomanović and Čarolija Choir performed. The Special guest was a charming girl from Podgorica, Katarina Radulović, Montenegro representative in the very popular music show “Pink little stars”. Visitors could also

enjoy the interesting animation program; Montenegro branded photo booth, face painting, animation of a clown and other activities in the Kids’ corner. Director of the National Tourism Organization of Montenegro Željka Radak – Kukavičić addressed the audience. The event was visited by many Belgraders as well as H.E. Ambassador of Montenegro, Branislav Mićunović and Minister counsellor, Vule Tomašević. This event was the venue of two day promotion of the successful Montenegro companies such as the excellent national carrier Montenegro Airlines, very successful and famous Montenegro vinery “Plantaže”, m:tel – prosperous telecom operator in Montenegro as well as magical Allegra cruises and Luštica Bay - a unique, residential complex hidden in the spectacular landscape of the Montenegrin coast.

Leontina Vukomanović and Katarina Radulović

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CORP ORAT E

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