Brosura Crna Gora investicioni izazov BW 2006 ENG.indd

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Montenegro
INVESTMENT CHALLENGE
RREPUBLIC OF MONTENEGRO
GOVERNMENT OF THE REPUBLIC OF MONTENEGRO
Montenegro
INVESTMENT CHALLENGE
2006
On May 21, 2006 Montenegro has renewed its independence after 88 years, thus becoming the
world’s youngest state. The independence it has renewed had been internationally recognized for the
first time at the Congress of Berlin in 1878.
CONTENTS
1 PROFILE OF MONTENEGRO 1
Macroeconomic indicator
Import and Export
Industry
Agriculture, Fishing and Forestry
Tourism
Wood Processing
Shipping and Transport
Telecommunications
Privatization
Company Restructuring
Entrepreneurship
II COMPANIES
Privatization
Private Sector -SME
III DEVELOPMENT PROJECTS
Agriculture
Forestry and Wood Industry
Waters
Tourism
Industry
Transport
Energy Sector
IV LEGISLATION
Principles of Foreign Investments in Montenegro
1
3
4
7
7
8
11
12
15
16
18
19
21
23
31
43
45
47
47
48
52
52
54
57
59
V CONTACT INSTITUTIONS
65
VI PRIVATIZATION PLAN FOR 2005
69
PROFILE OF MONTENEGRO
(General Information)
GEOGRAPHIC POSITION
Montenegro is situated in the Southeast Europe. It borders Albania (on the east), Kosovo (on the northeast), Serbia (on the north), Bosnia&Herzegovina (on the west), Croatia (on the south-west) and Adriatic
Sea (on the south). The Montenegrin coast is about 300 km long.
AREA
Montenegro has an area of 13,812 km2. It consists of three regions: southern, central and northern. The southern,
coastal region has a beautiful coast with attractive beaches. This region is of primary interest for tourism development.
The central region is the largest plain in Montenegro and the most fertile land. Major industrial activities are conducted
in this region, particularly in the capital Podgorica and Niksic, the second largest town.The northern region is covered
by high mountains (over 2,000 m), among which Mt. Durmitor is especially attractive (protected by UNESCO).
In September of 1991 the Declaration of the Ecological State of Montenegro was adopted.
There are four national parks in Montenegro:
Durmitor - 39.000 ha
Lovcen - 6.400 ha
Biogradska gora - 5.400 ha
Skadar Lake - 40.000 ha
What makes Montenegro special from the geographic point of view is that, in a same day, one can swim at the
beaches and ski on attractive skiing paths. Also, Montenegro has vast potential for organic food production.
The monetary unit of Montenegro is EURO.
There are two international airports in Montenegro – in Podgorica and Tivat.
Ferry line between Montenegro and Italy (Bar-Bari) is active all year round.
From Bar, via Podgorica, there is a railway connection with Belgrade (Serbia).
POPULATION
According to census carried out in 2003, the population of Montenegro is 620,145.
There are 21 municipalities in Montenegro.
Podgorica is the administrative center of Montenegro and the largest city (169,132 inhabitants), and
Cetinje is the historical capital.
MACROECONOMIC INDICATORS
GDP (mil €)1
GDP (€ per capita)
Inflation
Unemployment rate
Foreign direct investments (mil.€)
Gray economy
1
2
2002.g.
2003.g.
2004.g.
2005.g.
2006.g.
1.3011
1.4332
1.534
1.644
1.759
2.109
2.318
2.478
2.642
2.817
9,4%
23,25%
75
6,7 %
22,00 %
90
4,3 %
21,00%
120
1.8%
18.4%
3832
3.0%
17.3%
180
30%
20%
15%
13%
11%
2002 – Monstat, 2003, 2004, and 2005 – Secretariat for Development – estimate of fulfilment, 2006 - Plan
In accordance to the Montenegro Economic Reform Agenda 2002-2007, the projection of foreign direct investments in 2005
was € 150 million, however, these expectations were exceeded.
Montenegro - Investment Challenge
3
UNEMPLOYMENT
date/period
10.07.2006.
10.07.2005.
31.12.2005.
No. of unemployed
41991
54315
48834
10.07.2006./10.07.2005.
-12324
10.07.2006./31.12.2005.
-6843
Annual rate
Ratio to the status
of 31/12/2005
Maximum unemployment
22,7% - downward
trend
14% - downward
trend
July 2000
86 163
IMPORT AND EXPORT
The total imports:
In 2004 amounted to EUR 812.5 million
In 2005 amounted to EUR 940.3 million
The total exports:
In 2004 amounted to EUR 381.6 million.
In 2005 amounted to EUR 434.5 million.
Import
Export
Trade balance
Coverage of import by export (%)
2004
812.5
381.6
-430.9
46.97%
Index
2005
2005/2004
940.3
127.8
434.5
52.9
-505.8
74.9
46.21 %
COMMODITY TRADE BREAKDOWN BY COUNTRIES AND REGIONS
Imports and Exports Breakdown by Countries
The most important foreign trade partner(s) of Montenegro in 2005 were Serbia and Kosovo, followed by Italy, Slovenia
and Greece. Countries of the former Yugoslavia (SFRJ) together with Italy, Greece and Albania combined for the 65.8%
of Montenegro’s total commodity trade in 2005.
The structure of commodity exports was influenced significantly by the export of aluminum, rods, profiles, custom
steel, alcoholic beverages, and fruit (fresh or dried). The redirection of alimunum exports from Swiss to the Italian market
which took place in 2004 caused this country (Switzerland) to lose its position of the most important exports market. In
2005 aluminum was mostly exported to Italy – in the total amount of EUR 98.3 million – thus rendering this country the
second biggest exports market, with a participation of 27.3% in the total Montenegrin exports. Another result of the
aluminum exports redirection is Greece on the third place of the biggest Montenegrin export markets, wth a total of
EUR 34.2 million. The value of exports to Serbia and Kosovo was EUR 25.7, to Slovenia EUR 19.3, and to Hungary EUR 4.8.
Such diversification in placement of aluminum and aluminum products represents a positive change, as it eliminates
the dependence of the largest part of Montenegrin exports on one market/country.
The most important imported products in Montenegro in 2005 were oil and its derivates, imported in the amount of
EUR 84.9m, followed by the imports of passenger vehicles (EUR 57m), electricity, medications, etc. In 2005, the quantity
of petroleum and related products in the total value of EUR 43.4m was imported from Greece, and this represents 51.1%
1 Monstat
2 Secretariat for Development - realization assessment.
4
of the total imports of this line of products. From Italy EUR 14.2m were added (16.8%), from Russia EUR 7.6m, Ukraine EUR
5.4m, Croatia EUR 3.7m, and the remaining part of petroleum products import came from Serbia, Great Britain, Bulgaria,
Bosnia-Herzegovina, Slovenia, etc. Automobiles were mostly imported from Germany – EUR 15.1m, Italy – EUR 14.4m,
and Hungary – EUR 8.4 million.
Export and import structure by Countries in 2005 (in thousands of EUR)
Foreign Trade
Partners
Total
Amount
Imports
Exports
Difference
(Exp. – Imp.)
Serbia and Kosovo
Italy
Slovenia
Greece
Croatia
Bosnia-Herzegovina
Germany
Austria
Switzerland
Hungary
Great Britain
Holland
FYR Macedonia
Russian Federation
Albania
Other countries
GRAND TOTAL
487.436
205.438
96.448
92.658
72.634
59.574
47.711
42.933
44.704
30.179
17.912
14.256
12.750
11.454
7.329
131.386
1.374.802
327.467
86.872
66.832
52.995
66.130
36.753
46.397
41.897
41.740
20.723
10.948
11.615
11.096
9.462
2.498
106.919
940.344
159.969
118.567
29.616
39.663
6.504
22.821
1.314
1.035
2.964
9.456
6.964
2.641
1.654
1.992
4.830
24.468
434.458
-167.498
31.695
-37.216
-13.332
-59.625
-13.932
-45.083
-40.862
-38.776
-11.267
-3.984
-8.974
-9.442
-7.470
2.332
-82.451
-505.886
Percentage
of the
Grand Total
35,45
14,94
7,02
6,74
5,28
4,33
3,47
3,12
3,25
2,20
1,30
1,04
0,93
0,83
0,53
9,56
100,00
Coverage of
Imports by
Exports (in %)
48,85
136,48
44,31
74,84
9,84
62,09
2,83
2,47
7,10
45,63
63,61
22,74
14,90
21,05
193,37
22,88
46,20
Source::Data based on Customs Declarations
Exports Breakdown by Countries (in thousands of EUR)
EXPORTS
Serbia and Kosovo
Italy
Greece
Slovenia
Bosnia-Herzegovina
Hungary
Egypt
Great Britan
Croatia
Albania
Cypruss
Switzerland
Holland
FYR Macedonija
Germany
Austria
Other countries
2004.
452.148
192.595
109.405
41.075
2.824
16.839
6.052
1.396
5.093
7.386
5.376
6.378
25.114
5.236
1.085
2.501
526
23.266
2005.
434.458
159.969
118.567
39.663
29.616
22.821
9.456
7.554
6.964
6.504
4.830
3.250
2.964
2.641
1.654
1.314
1.035
15.655
Index
96,09
83,06
108,37
96,56
1048,72
135,52
156,24
541,14
136,74
88,07
89,85
50,95
11,80
50,44
152,43
52,54
196,86
67,29
Difference
-17.690
-32.626
9.162
-1.412
26.792
5.982
3.404
6.158
1.871
-882
-546
-3.128
-22.150
-2.595
569
-1.187
509
-7.611
Source::Data based on Customs Declarations
5
Exports Breakdown by Sectors of Products
•
No.
Product Sector
1.
2.
3.
4.
6.
7.
8.
Products classified by material
Machinery and transport equipment
Food and livestock
Raw materials excluding fuel
Liquors and tobacco
Other sectors
Various finished products
Volume in the Total Amount
(in thousands of €)
243.435
50.632
36.154
34.485
31.056
21.528
17.167
Participation (%) in
the Total Exports
56 %
12 %
8%
8%
7%
5%
4%
Sector of products classified by material combines for 56% of the total exports. It mosty consists
of the products of low level of processing, with low value added.
In timber industry exports the most important items are simply (minimally) processed timber,
amounting to EUR 14.3 m or 3.3% of the total exports, and non-processed timber with EUR 3.4 m
(0.8%).
Imports Breakdown by Countries (in thousands of EUR)
IMPORTS
Serbia and Kosovo
Italy
Slovenia
Croatia
Greece
Germany
Austria
Switzerland
Bosnia-Herzegovina
Hungary
Holland
FYR Macedonija
Great Britain
Russian Federation
Other
2004.
868.585
301.854
74.593
68.528
60.405
43.523
43.319
36.902
20.585
26.784
15.596
9.999
8.055
35.072
997
122.373
2005.
940.344
327.467
86.872
66.832
66.130
52.995
46.397
41.897
41.740
36.753
20.723
11.615
11.096
10.948
9.462
109.417
Index
108,26
108,49
116,46
97,53
109,48
121,76
107,11
113,54
202,76
137,22
132,87
116,16
137,76
31,22
949,08
89,41
Difference
71.759
25.613
12.279
-1.696
5.725
9.472
3.078
4.995
21.154
9.969
5.127
1.616
3.041
-24.124
8.465
-12.956
Imports Breakdown by Sectors of Products
6
No.
Product Sector
1.
2.
3.
4.
5.
6.
Machinery and transport equipment
Various finished products
Food and livestock
Fuel and other oil products
Other sectors
Products classified by material
Volume in the Total Amount
(in thousands of €)
209.663
160.369
147.153
146.319
143.986
132.854
Participation (%) in
the Total Imports
22 %
17 %
16 %
16 %
15 %
14 %
•
Most of the imported products belong to the sector of machinery and transprot equipment,
where an increase of 9% is recorded compared to the same period of 2004.
Within this sector of products the majority of imports were automobiles (EUR 57 million), followed
by household appliances (EUR 14.2 m), telecommunication equipment (EUR 14.2 m), and machines and
units for automatic data-processing (EUR 11.5 m).
•
Imports of products from „Food and livestock” sector was reduced from EUR 172 m in 2004 to EUR
147.1 m in 2005, which is a decease of EUR 24.9 m or 14.5%.
INDUSTRY
Industry is mainly based on the existing resources and the most significant contributor is the miningenergy-metal processing production chain. The available resources provide the basis for a much more
developed processing industry than the existing one.
Montenegro has the capacities that may produce 300,000 tons of raw steel, 800,000 tons of red bauxite,
280,000 tons of alumina, 120,000 tons of aluminium, 45 - 50,000 tons of sea salt, 2,000,000 tons of lignite,
and 250,000 tons of brown coal, while the electric power plant (hydro-power plants Perucica and Piva
and thermal-power plant Pljevlja) generate about 3 billion KWh per year.
This basic industrial structure is complemented by capacities in metal processing, machine industry, wood
processing, textiles, chemical industry, footwear and leather industry, garments industry, home appliance,
construction machine and forestry machine industries, as well as significant building capacities.
Montenegro has a number of plants for the processing of agricultural products: slaughterhouses, fish
processing plants, flour mills with silos, dairy plants, bakeries, breweries and fruit juice factories, fruit
processing factories, grapevine processing and wine cellars, medical herb processing, tobacco plants,
candy products, coffee processing, etc.
To put the existing capacities in use, new owners should be found through reconstruction, bankruptcy
and privatization process that will provide necessary investments.
AGRICULTURE, FISHING AND FORESTRY
The State of Montenegro with about 650,000 inhabitants has good basic assumptions for development of agriculture that are reflected in the following:
o 518,000 hectares of total agricultural land,
o about 180,000 hectares of arable land,
o 0.80 hectares of agricultural or 0.29 hectares of arable land per capita - much more than the land
available in many European countries,
o tradition for dealing with agriculture,
o sufficient labor force for this activity
In addition to basic assumptions for agricultural development, Montenegro also has numerous
comparative advantages:
1. favorable agro-climate conditions for specific production from growing of olives and citrus
at coast, growing of early vegetables and other intensive cultures in the middle part (Zeta
- Bjelopavlici valley) to cattle breeding on wide land of mountain part of the Republic,
2. preservation of land, water and air from pollution considerably enable Montenegro to strongly
win recognition for organic agriculture,
3. existence of substantial unused area of arable agricultural land and areas with potentials for
significant increase of production per area unit without jeopardizing resources,
4. market existence - local and tourist demand, and numerous specific Montenegrin products
are well marketable at foreign markets.
Available agricultural resources facilitate production of quality and recognizable Montenegrin products,
particularly meat (lamb, mutton and goat - 4,830 t, poultry - 2,600 t veal and beef - 8,500 t); milk and
milk processed products (225,000 t), honey (about 600 t per year), fish - 2,180.5 t, vegetables -179,883 t
(tomato - 19,010 t, pepper - 17,042 t, cucumber etc.), fruits - 64,022 t (plums, apples, raspberry - 38,000
t, citrus fruits - 5,000t per year) and high quality wines (Vranac, Krstac etc.), then naturally pure water of
best qualities (measured by strict world standards). This soil is convenient for some special cultures such as
forest fruits (blueberry, edible mushrooms, etc.) and wild medical herbs, especially sage.
In the fresh waters of Montenegro fishermen catch about 1,300 tons trout, carp and bleak per year, and in
the sea waters about 250 tons. The total potential, only for the blue fish is 123,427 tons, of which 81,965
t anchovies; 27,895 t pilchards; 13,577t of other types of blue fish.
Forests and forest land cover the area of 720,000 hectares or 54% of the total surface of the Republic,
of which the largest part (572,000 hectares) is situated in the north-east . The total growing stock in
Montenegro is estimated at 72 million m3, of which 29.5 million m3 (41%) of coniferous trees and 42.5
million m3 (59%) of deciduous trees. The total increment is estimated at 1.42 million of m3.
7
TOURISM
Starting from the orientation that tourism is one of priorities in development of the Republic and support to development concept of Montenegro economy, the Government of the Republic of Montenegro,
at the end of 2001, adopted the strategy or Master Plan of tourism development by the year 2020. The
Master Plan clearly defines goals whose accomplishment will pave the way for Montenegrin tourist offer
to keep up with international development, make possible that Montenegro establishes its position on
the international market as high quality tourist destination, increases revenues, reduces unemployment
and preserves natural potentials and resources.
The Master Plan targets for increase of hotel capacities from the current 26,000 to 50,000 beds in 2010, and
100,000 beds in 2020, pursuing international standards of hotel units that will meet complex requirements
of guests from Western and Middle Europe.
The stated strategy targets for increase of number of overnights from the present 5.211.847 in 2005 to
11.4 million in 2010, and/or to 20.9 million overnights in 2020.
Directly or indirectly, 75,000 new work places will be opened based on tourism.
The assessment of the United Nations World Council for Tourism and Travel - UNWTTC WTTC, that
with engagement of the Institute for Research and Assessment from Oxford prepared a Study of satellite
assessment of tourist business and effects achieved by tourism in Montenegro to the total domestic
product, speaks in favor of the fact that tourism represents a realistic base for overall economic development of Montenegro.
According to those results, share of tourism in creation of gross domestic product in 2004 is 15 %, while
the total revenues are EUR 214.7 million.
UNWTTC estimates capital investments in 2004 in broader Montenegro economy generated by tourism
to €36.7 million or 19% of total investments.
Furthermore, WTTC foresees growth of 10.3% on the annual level in the total demand for travels and
tourism that, if achieved, will make Montenegro the country with tourist economy developing at the
fastest rate in the entire world during the following decade out of 174 countries monitored by WTTC.
It is anticipated that financial effects will record the same growth rate.
WTTC expects that tourism will become the leading Montenegro exports sector that brings major part
of revenues from abroad and has the potential to diversify its economy, encourage entrepreneurship,
particularly among small and medium enterprises, act as catalyst for investments, create large number of
sustainable workplaces and support social development of local communities.
Basic priorities in the tourism development policy of Montenegro are fast privatization and development of assumptions for direct foreign investments.
The appropriate manner of privatization should facilitate the implementation of the following goals:
− reorientation to markets of middle and high class tourism,
− increase of quality level of tourist infrastructure,
− development of tourist offer for reception of guests during the entire year and build up economic
potentials of all tourist places and cities.
The Government of the Republic of Montenegro and Ministry of Tourism perform regular activities on
establishing business relations with foreign partners on permanent bases through capital investment
in tourist capacities.
No. of overnights
Foreign
Domestic
Visitors
Foreign
Domestic
Tourism income
Income generated from foreign trourists tourists
Income generated from domestic trourists tourists
8
Realized Turnover in 2005*
5.211.847
1.583.510
3.628.337
820.457
272.005
548.452
Income generated in 12 months (€)**
216.68 m
86.65 m
130.03 m
2005/2004*
+14,27%
+29.39 %
+8.72%
+16.63%
+44.64 %
+6.41%
2005./2004**
+20.56%
+5.42%
+33.30%
NOTE:
* Source: MONSTAT
** Source: Central Bank of Montenegro
Total number of tourists in 204 and 2005
According to the data of the Republic’s Institute of Statistics, during 2005 Montnegro was visited by over 820.000
tourists realizing more than 5.2 million overnights.
Average time of stay was over six days.
From the above-mentioned measurements we can see that an increase of 14.03% has been recorded in the
number of overnights compared to last year.
In 2005 Montenegro was visited by 528,452 domestic guests, or 6% more than in 2004. Domestic guests realized
3,628,337 overnights, which represents an increase of 8.7% compared to last year.
In 2005 Montenegro was visited by 272,005 foreign tourists, which represents an increase of 44.6% compared to
2004.
Division of domestic and foreign guests
9
The statistics for 2005 show that the foreign guests realized 1,583,510 overnights, which is an increase of 29.4%
from 2004.
Breakdown of foreign guests in 2005
Country
Bosnia-Herzegovina
Croatia
Macedonia
Slovenia
Austria
Belgium
Bulgaria
Czech Republic
Slovakia
Denmark
Germany
Finland
France
Greece
Holland
Ireland
Iceland
Italy
Hungary
Norway
Poland
Portugal
Romania
Russia
Spain
Switzerland
Sweden
Great Britain
Luxemburg
Other European Countries
Israel
Japan
Turkey
Canada
USA
Australia
New Zealand
Other non-European
countries
Albania
TOTAL:
No. of
tourists
3
46838
7543
14940
13659
3193
1179
1571
23517
8442
630
18352
1192
11300
669
2477
2273
176
11435
6243
3801
3040
222
896
41011
930
1820
4994
7817
99
5555
4377
381
548
870
3432
592
74
No. of
overnights
4
267875
30278
88905
57697
12505
6953
4173
206418
63918
2874
133903
6093
64354
2302
20701
11069
470
49210
36437
45011
17633
1044
4599
253178
2537
8511
31236
48582
261
24495
8588
929
1978
3592
9882
1904
177
Average duration
of stay in days
5 (4:3)
5,72
4,01
5,95
4,22
3,92
5,90
2,66
8,78
7,57
4,56
7,30
5,11
5,70
3,44
8,36
4,87
2,67
4,30
5,84
11,84
5,80
4,70
5,13
6,17
2,73
4,68
6,25
6,21
2,64
4,41
1,96
2,44
3,61
4,13
2,88
3,22
2,39
Percentage of
overnights
6(4:5)
16,92
1,91
5,61
3,64
0,79
0,44
0,26
13,04
4,04
0,18
8,46
0,38
4,06
0,15
1,31
0,70
0,03
3,11
2,30
2,84
1,11
0,07
0,29
15,99
0,16
0,54
1,97
3,07
0,02
1,55
0,54
0,06
0,12
0,23
0,62
0,12
0,01
Index of
overnights
7
140,94
141,57
170,83
107,83
155,77
47,62
67,50
97,63
120,82
208,71
71,06
1345,03
777,88
128,96
105,04
485,48
53,29
246,53
136,77
137,28
110,62
205,11
76,33
197,01
186,00
114,47
82,35
134,68
59,59
118,35
209,41
151,55
294,78
132,64
96,82
142,09
133,08
2683
13147
4,90
0,83
136,71
13234
272005
40091
1583510
3,03
5,82
2,53
100
149,56
129,39
The highest percentages of foreign overnights belong to the guests from Bosnia-Herzegovina – 16.92%,
Russia – 15.99%, and Czech Republic – 13.04%, followed by Germany – 8.46%, Macedonia – 5.61%, Slovakia
– 4.04%, France – 4.06%, Slovenia – 3.64%, Italy – 3.11%, Great Britain – 3.07%, Norway – 2.84%, and Hungary
– 2.30%.
10
WOOD PROCESSING
The main priorities in the development of wood processing in Montenegro are: to undertake restructuring of
state wood processing companies in order to give new momentum to the production and encourage development of small and medium companies in rural areas based on other forest products, not only lumber.
The volume and structure of raw materials by municipalities in which wood industries are located - according to current bases:
R/ AdministrationB
Municipality
1.
Podgorica
2.
Danilovgrad
3.
Nikšić
4.
Plužine
5.
Šavnik
6.
Žabljak
7.
Pljevlja
8.
B. Polje
9.
Mojkovac
10. Kolašin
11. Berane
12. Rožaje
13. Andrijevica
14. Plav
Total 1-14
Sustainable yield-gross
allowable cut m3
21.293
19.733
39.939
41.062
14.216
26.894
158.707
38.665
14.556
62.169
41.754
46.342
33.813
44.522
613.032
Round timber m3
7.517
7.890
14.975
15.144
5.686
19.170
110.090
26.726
5.563
24.867
18.789
27.805
15.220
26.150
311.702
Orientation to closest
wood processing plant
Impregnacija Kolašin
Pilana AD Danilovgrad
AD Javorak Nikšić
AD Donja Brezna
AD Javorak Nikšić
ADŽabljak-Žabljak
Korporacija Jakić-Pljevlja
AD Špiro Dacić B. Polje
KID V. Kruščić Mojkovac
AD Eksport drvo Kolašin
AD Omorika kom. Berane
AD Gornji Ibar Rožaje
Boj kom. Andrijevica
AD Bor Plav
*
The above estimate of share of round timber (intended for mechanical processing) in gross allowable
ut is not questionable, if technological standards are properly applied.
* Orientation to the above specified installed facilities for wood processing takes into account:
− the use of position of inputs
− multi-stage processing needs (cutwood, elements, plates, parquet, doors and windows, prefabricated houses, chipboard, furniture)
Based on such orientation and available quantities of the raw material -out of which it is not difficult to get
the planned quantity of technical round timber, each of the local wood industries that will be restructured
or privatized may grow into profitable companies and that is important in order to find strategic privatization partners.
* In 2004 the companies under serial numbers 3 and 4 (Nikšić and Plužine) were privatized.
Production capacities of wood industries:
− sawn wood
200.000 m3
− dried sawn wood
15.000 m3
− steamed sawn wood
7.000 m3
− veneer
3.000 m3
− paneling &wall board 450.000 m2
− doors and windows
50.000 units
− furniture
10.000 (‘’Javorak‘’ Nikšić, ‘’Vukman Kruščić‘’ Mojkovac)
− prefabricated houses
19.000 m2 (‘’Javorak‘’- Nikšić, ‘’Vukman Kruščić‘’ Mojkovac)
− chipboard
20.000 m3 (Korporacija ‘’Jakić‘’- Pljevlja)
− panels
2.000 m3 (Korporacija ‘’Jakić‘’ - Pljevlja)
− laminated panels
1.000 m3 (‘’Gornji Ibar‘’ - Rožaje)
− plywood
1.500 m3 (‘’Omorika komerc‘’ - Berane)
− impregnated sills
8.000 m3 (‘’Impregnacija drveta‘’ - Kolašin)
The presented capacities need to be restructured, privatized and boosted by investments in order to
become profitable
11
SHIPPING AND TRANSPORT
Due to its comparable advantages with respect to natural convenience and the installed capacities and the
overall revenues, the shipping industry is very important for development of the overall economy of the
Republic and is one of its development priorities. The main subjects in the shipping industry are: Port of Bar,
Port of Kotor, Port of Zelenika, Port of Risan, Adriatic Shipyard Bijela, Ship repairing yard, Barska plovidba,
Nimont and shipping companies.
The Port of Bar is located at the southern part of the Adriatic Sea. It represents the place where sea and land
transport meet. Owing to favourable geographic position and connection with railway Belgrade -Bar and
road connections, there is an established transport system that provides a possibility for rational linking of
the port and catchment area of South-Eastern Europe.
The Port of Bar is fully free customs zone with the opportunity for territorial expansion in depth of the Bar
plain that provides for new qualities and competitive advantages - exterritoriality, that enables free movement of capital, commodities and labor force and advantages in tax, customs and other fees exemptions.
For that reason, the Port has the capacity to increase transport and trade functions for the entire region.
The present capacity of the Port is about 5 million tons of different types of commodities in a year. Partners
have at their disposal specialized terminals for container, general, bulk and liquid freight; they also include:
grain silo of capacity of 30.000 tons; cold storage of capacity of 4.500 tons; warehouse for woods with roofed
space for storage, drying, assortment and additional processing of woods on the area of 24.200 m2; RO-RO
and passenger terminals. All terminals are equipped with appropriate specialized machines that facilitate
fast and quality operations. The Port also encompasses facilities that are the result of business cooperation
with partners: reservoirs for oil derivatives of capacity of 120 000 m3, alumina silo of 20.000 tons capacity,
reservoirs for dilute solutions of 10.000 tons capacity, reservoirs for bulk concrete of 3.000 tons capacity and
special decanting for vinegar acid of 600 t/h capacity.ThePortof Bar is prepared for all new projects with
regard to its own infrastructure: 200 hectares of developed land and 120.000 m2 of multipurpose covered
warehouses; operating shore 3.5 Km long and depth of aquatorium to 12.5 m; 23 Km of railroad tracks.
AD "Luka Kotor" (Port of Kotor) from Kotor is located in the farthest southeastern part of Boka Bay. It is used in
international sea transport (transport of passengers and commodities) and as a destination for nautical tourists, ships and yachts on their cruise trips. Capacities of newly build passenger terminals are ready to receive
in tourist season up to 10.000 passengers a day. Operating area of the Port that serves for international sea
transport is 4.000m2. The activity of the Port of Kotor (AD »Luka Kotor« Kotor) in the international transport
will reflect through the following: establishing of the regular line sea transport with foreign ports (regular
service between Kotor and Italian ports: Bari and Barletta and season sea connection by ship »Dalmacija«);
and destination for ships on cruise trips. Privatization plan adopted by the Government of the Republic
of Montenegro at the beginning of 2003 put the Port of Kotor into »Group 2« of companies that are to be
privatized by looking for a strategic partner.
Nautical tourist center Kotor represents a project whose objective is to create in the part of Port of Kotor
and the whole city of Kotor a destination where nautical tourist would gather.
The Adriatic Shipyard Bijela is located in Boka Bay and is equipped for repair of all types of vessels with the
loading capacity of up to 120.000 tons. It is the largest repair shipyard in the southern part of the Adriatic
with long-lasting successful tradition in repair and servicing of vessels. In addition to the basic repair activity, the Shipyard has capacities for construction of floating objects (barges for different purposes with and
without own power, pontoons, operating platforms, different other steel constructions etc.). The Shipyard
has technical and human resources to carry out a range of production services whose quality is subject to
control of domestic and foreign registers/classification companies.
The shipping company »Barska plovidba« Bar is a company whose basic activity is transport of passengers
and freight vehicles on relations Bar-Bari-Bar and Bar-Ankona-Bar. It has three ships with the total capacity
DWT 3731, GRT 16.103,6 and NRT 8.855. Furthermore, the company »Barska plovidba« provides services of
international freight forwarding, agency activities and in Passenger terminal that is in its ownership offers
services of its own five star restaurant "Marina" and renowned yachting club. Under the auspices of TAM
program founded by the European Agency for Reconstruction and Development, the company AD Barska
plovidba has started negotiations with the European Bank for Reconstruction and Development (EBRD) in
order to get a loan that would be used for purchase of multi-purpose cargo ship.
The company AD »Crnogorska plovidba« Kotor started operating on 01.04.2004. The preliminary study that
12
defines, elaborates and examines technical and commercial feasibility of the project that is an integral part of
the program and rehabilitation aimed at restoration of domestic sea industry is completed in March 2004.
Transport
Transport has direct influence both on life quality of every individual and the overall economic situation in the
country. Due to this reason transportation infrastructure and organization is a prerequisite for development
of a community and at the same time reflection of overall economic status of the community. Very high
density of road network enables even disposition of transportation infrastructure significant for development
of Montenegro economy, its regional arrangement and even development of more immediate areas.
Road network in Montenegro encompasses about 1800 km of main roads and highways, about 3500 km of
local asphalt roads and about 3500 km of local non-asphalt roads.
The backbone of road transport is in the form of the reverse letter"T". Horizontal part goes along the direction of the Adriatic highway (Herceg Novi, Kotor, Budva, Bar and Ulcinj), while the vertical part goes along
the direction from the coast to north (Budva -Cetinje-Podgorica -Kolašin - border with Serbia). Two more
significant sub-branches branch off this vertical branch: one towards Kosovo (via Rožaje) and the other
towards Bosnia (via Nikšić).
All other roads lead towards these main directions and make internal road network that according to
all comparative analysis has density that meets all standards and at the same time it is adequately distributed across all regions.
13
With regard to the size and population, municipalities in the following table are presented in three categories:
Table 1 -Size and population in three categories of municipalities (low, medium and highly developed municipalities)
Municipalities
Total size (km2)
Total population (1997)
% of population
Low growth
3,096
119,615
18%
Medium growth
5,324
199,708
31 %
High growth
5,392
327,417
51 %
Total
13,812
646,740
100%c
The following table and map show the average economic growth in three categories of municipalities and
national growth in the period from 2002-2025 with regard to the annual daily flow of traffic (GDPS), statement
from the Study-BCEOM (Strategic Plan for Road Infrastructure Maintenance and Development)
Table 2 -Average annual economic growth in low, medium and highly developed municipalities and national
economic growth for the presented three scenarios in the period 2002-2025
Annual average growth
National growth
Low growth
Medium growth
High growth
Scenario 1
Scenario 2
Scenario 3
2.1%
1.5%
1.9%
2.4%
3.5%
2.5%
3.1 %
4.0%
4.7%
3.4%
4.2%
5.5%
ESTIMATED FUTURE ECONOMIC GROWTH ON MUNICIPAL LEVEL WITH RESPECT TO GDPS
Despite the fact that Montenegro has no envisaged corridors and their branches in the basic TransEuropean Transport Network, the international community, within the further elaboration, shows
readiness to enable Montenegro to get connected by special communication lines to the main corridors. The basic mechanisms for search of these solutions are within the REBIS program (road direction
Tirana-Podgorica-Sarajevo and Belgrade-Bar).
14
Basic possibilities for accession of Montenegro to the projected Trans-European transportation network
are found in construction of the following directions:
− Road direction Tirana-Podgorica-Sarajevo, this branch has a connection with the corridor Vc and VIII
(connection to V corridor-branch V of the corridor leads from Ploče via Sarajevo and further to Budapest,
this branch also has connection with the corridor X and with IV corridor in Budapest and connection
to corridor VIII -branch VIII of the corridor goes from Drač via Tirana to Skoplje and down to Sofia, this
corridor has a direct connection to corridor X at Skoplje and IV corridor at Sofia)
− development of direction Belgrade -Bar and connection to corridor X at Belgrade (a branch of corridor
X goes through Skoplje-Belgrade-Zagreb-Ljubljana)
− development of Adriatic-Ionic direction
Montenegro has significant plans and support of the European Investment Bank related to use of loan for
the Programs: Fast restoration of roads in Montenegro within the road infrastructure and Restoration of
railway infrastructure in Montenegro.
TELECOMMUNICATIONS
Global trends of globalization and optimization of telecommunication resources are being reflected on the
telecommunication sector in Montenegro, too. The existing operator of public land-line (fixed) telecommunication network – “Telekom Crna Gora”, the majority of which is owned by “Matav“ from Hungary, provides
the services of public fixed telephony, public phone-booths, and the rental of fixed telephone lines to users
within Montenegro. The company owns and exploits the public fixed telecommunication network.
 ProMonte GSM, the first established joint-venture company, majority owned by Norwegian Telenor,
which is in commercial operation since 1996;
 Monet d.o.o, owned by Telecom Montenegro A.D., in commercial operation since 2000.
Telecommunication market in Montenegro has the following features:
− Total number of installed POTS network connections (POTS = Public Old Telephone System) is
230.827, while the number of active POTS connections is 171.221.
− Total number of installed BRA ISDN network connections is 10.029, while the number of active BRA
ISDN network connections is 7.183.
15
−
−
Total number of installed PRA ISDN network connections is 329, while the number of active PRA
ISDN network connections is 193.
“Telekom Crna Gora” network digitalization level (excluding the rural network connections) is 99.9%.
MOBILE TELEPHONY

According to the data through April 2006 the number of users of mobile telephony in Montenegro was
560.789, which is equal to the market penetration of 90.43%. Out of this number, there are 455.760
pre-paid users (81.27%), and the number of post-paid ones is 105.029 (18.73%). Out of 560.789 mobile
users in Montenegro, mobile operator "Promonte” covers 334.706, while the other operator, ”Monet”,
has 226.083 users, or in terms of percentage - Promonte 59.68% and Monet 40.32%.
INTERNET SERVICES
So far in Montenegro six licenses for Internet service providers were issued:
1. “Internet Crna Gora d.o.o.”
2. “MontSky – Informatika Montenegro”
3. “Transintercom”
4. “Infomont d.o.o.”
5. “Zirex d.o.o.”
6. “Neboelectronic d.o.o.”
In the territory of Montenegro the commercial services of providing access to the Internet are being provided by “Internet Crna Gora d.o.o.” which is 100% owned by “Telekom Crna Gora”, and “MontSky”, owned
by “Informatika Montenegro”.
The following measurements of “Internet Crna Gora” operations were recorded on December 31, 2005:
Total number of dial-up subscribers is 61.402;
No. of leased lines is 117;
No. of available access lines is 1920
No. of active access lines is 1530
Level of internet penetration (estimating that there are about 100.000 users) is 15%.
The following measurements of “MontSky – Informatika Montenegro” operations were recorded on
December 31, 2005:
Total number of dial-up subscribers is 6.742;
No. of leased lines is 15;
No. of access lines is 60
Level of internet penetration is 0.06%.
Currently, the Post of Montenegro holds 72 automated postal network units over which 95% of all transactions
in post officesare being carried out. At 48 locations JUPAK is being used for data transfer, while ADSL is being
used at five. The remaining locations occasionally access the central using modem communication. The development of the project for migration of these modes of communication to MIPNET is currently underway.
Post has 930 employees. The company’s capital has been estaimated at about EUR 21 million on December
31, 2005.
PRIVATIZATION
Privatization is being carried out in accordance with the Annual Privatization Plan(s) the Government of
Montenegro adopts on proposal of the Privatization Council; Plans are being published in public media.
Mass Voucher Privatization (MVP) has been completed relatively successfully.
In total over 80% of capital belonging to the companies from all industry sectors have been privatized.
16
Where have most of investments been made so far and under which model:
•
•
•
•
•
•
•
•
•
•
Purchase of shares (majority, minority package)
Recapitalization
Purchase of shares and property in a public auction
Founding of banks
Joint investments:
- Mobile telephony
- Insurance
- PIF
- Pharmaceutical industry
- Food production
- Clothing and shoes production
- Regional waterworks
- Metal industry
BOT system (Anode Factory KAP)
Concessions (water sources, sea-bed research, and other natural resources)
Founding of affiliates
Donations for certain programs from road infrastructure
Founding of companies/enterprises.
Models of privatization being currently used are the following:
Public tender – Tender sale is a method of privatization which consists of gathering of bids made by potential
buyers, under the rules and conditions of sale established in advance. Preparation of tender is carried out by
the Tender Commission. Tender conditions must be defined quantitatively, in terms of value or technically,
and they also have to be time-determined. Tender Commission determines the criteria of tender sale, as
well as the timelines and terms for the carrying out of tender procedure.
Auction – Privatization model that includes public competition of potential buyers on the basis of the highest
price offered. Public auction sale is being organized and conducted by the Auction Commission appointed
by the Privatization Council. The decision on the sale company’s shares or property can be made by the
owner, or the company’s authorized body. The Commission publicizes an invitation for the participation in
the auction in the “Official Gazette of the Republic of Montenegro”.
Stock Exchange – Sale on a stock exchange is within the authority and responsibility of the state funds and the
state itself, in cases where the state is the direct owner. Any of the state funds, or the state itself, can sell their
shares independently, in a way and for a price that do not have to be harmonized with other state funds.
WHAT HAS BEEN OFFERED TO FOREIGN INVESTORS
•
•
•
•
•
•
•
•
•
•
•
•
Conducive business and investment environment in the situation when more than 55% of the
ownership has been privatized
Protection of property rights, including intellectual property, high standards of expropriation and
payment of fees, copyright protection including international arbitration
National treatment: it means that a foreign investor has all the rights and liabilities as a domestic
investor, may own 100% shares in a company, may be minority shareholder, may buy real estates
Timely and unlimited transfer of investment gains
Any form of investment is possible (privatization, purchase of assets, investment in projects, setting
up of companies, banks, joints ventures, leasing, concessions, franchising...)
Free zone
Liberal trade regime
Profit tax is proportional and amounts to 9% of the tax base
Customs exemption for the goods imported in form of the investment by foreign investor
Reduction of deferment of profit tax for programs in some municipalities and some activities
Avoiding double taxation
Staff training
17
COMPANY RESTRUCTURING
In June 2003, the Government of Montenegro adopted the program of company restructuring and institutional development support, as a follow-up to the activities undertaken in December 2001 concerning
restructuring of our economy. After the Stage 1 of the project defining diagnosis and overview in those companies has been completed, the Government has been paying special attention to the resolution of concrete
problems in each of the companies and the creation of conditions for efficient restructuring and favourable
environment for further privatization of companies in Montenegro. The objective of the project is to create
conditions, during is implementation, for the improvement of all relevant aspects of companies'operation,
strengthen their competitive capacity, define optimum organization and number of employees and attract
investors for faster privatization.
The Government provides necessary preconditions related to common program of resolving the issue of
redundant employees and provision of new management that will change present situation and create environment conducive to successful privatization.The company restructuring program aims at encouraging
the Montenegrin economy, resolving relationships between debtors and creditors and making companies
much more attractive for full privatization, as the bottom line goal of the program. The goal is to have privatization as soon as possible. If companies cannot be privatized under normal conditions, it should be done
through the bankruptcy under the Law on Insolvency of Companies.
The budget of €23.11 million was provided for the company restructuring program. The program is supported by six Montenegrin banks that expressed readiness to participate in implementation of those
restructuring plans they assess to have market prospects. The program is also supported by EAR through
TAM/BAS program and by USAID.
Following the announcement published in September 2003, the total of 71 companies applied of which
56 with duly submitted documentation (according to announcement requirements). The conclusion of the
project team was that all companies be divided into 3 groups where the first group would include those
companies with good business plans and bank support. The other group would include those companies
that have market prospective based on prepared business plans but lack bank support. The companies that
do not meet the criteria on the basis of the submitted business plans and have no bank support belong to
the third group of companies and need additional work on their business plans.
On the basis of the analysis of the Expert team and banking sector assessment, 33 companies were included
in the I group of companies.
Implementation of projects that were positively assessed by the Expert team and banking sector started in
February 2004. The activities for the implementation of about ten projects that have bank support (solely
for working capital and smaller capital investments) are in progress. Since the beginning of the year, loan
support was provided for about fifteen companies that used the funds in accordance with the company
restructuring program. After the implementation of programs for the companies belonging to the I group,
the implementation of other restructuring projects/programs encompassed by this program will be commenced.
The amount of funds allocated in the Budget for 2004 in accordance to the Company Restructuring Program
is € 2,380,000.00
€ 2,244,824.00 of credit funds have been authorized and € 1,178,201.00 realized.
is € 1,800,000.00.
€ 800,588.00 of credit funds have been authorized and € 735,588.00 realized.
is € 1,820.00.
€ 938,803.00 of credit funds have been authorized and € 874,803.00 realized. (Period till June 2006)
Until now all companies from the wood and forestry industry were supported through this program.
18
ENTREPRENEURSHIP
The core element of political and economic transformation in any country is private sector establishment, development
of entrepreneurship and creation of small and medium enterprises (SME). This should become a driving force in the
economic development. SME encourage private ownership and entrepreneurship capacities. They are flexible and
can be easily adjusted to change of offer and demand on the market. They create employment, promote diversification of economic activities, support sustainable growth and substantially contribute to exports and trade.
The Government of Montenegro adopted the Strategy for Development of Small and Medium Enterprises
by 2006.
The basic objectives area:
1. Increase the number of small and medium enterprises registered in the private sector and that officially
operate.
2. Achieve greater diversity and integration of economic activity by increasing the involvement of small
and medium companies whose basic activity is production and non-trading services.
3. Significantly increase the share of small and medium enterprises compared to micro companies in the
total structure of companies.
4. Increase competitive activities of small and medium enterprises in economic sectors in which the Republic
of Montenegro depends on imported commodities and services and increase the share of small and
medium enterprises in exports revenues.
5. Increase the share of domestic small and medium enterprises in foreign strategic alliances and joint
venture arrangements.
6. Increase the share of small and medium enterprises in Gross Domestic Product.
7. Increase the share of small and medium enterprises in total employment.
Successful implementation of this strategy requires common, coordinated efforts of a number of parties, including the Government, international credit institutions, foreign donors, non-government organizations, businessadvocacy organizations, business consulting and advisory services and small and medium enterprises.
At the same time, the Government is also aware that its role in the achievement of these strategic goals and
its relations with partners should be further developed during this implementation, initially focusing on
measures for promotion of entrepreneurship and establishment of appropriate framework for development
of small and medium enterprises. When these measures start functioning, participation of the Government
will be substantially reduced and brought down to provisioning of the basic business education and information not provided by the market.
Priorities:
1. Promote entrepreneurship
2. Offer business education
3. Provide loyal/fair competition
4. Reduce regulations and administrative barriers for business development
5. Simplify business taxation system
6. Encourage establishment of private Business Associations
7. Improve access to business information
8. Improve business services offer
9. Facilitate access to available financial resources.
In accordance with the defined objectives the following was done in the previous period:
As part of the institutional support 11 regional/local business centers have been established in the following
towns: Podgorica, Bar, Herceg Novi, Bijelo Polje, Berane, Pljevlja, Nikšić, Rožaje, Cetinje, Plav, and Žabljak. The
Euro info center was established as the first EU institution set up within a state body.
The EICC club was founded and it daily provides about 5000 information from countries in the Balkans
region.
During 2003, 2004, and until December of 2005 there were 97 various education cycles organized, all focused
on the improvement of business skills, in which around 2300 persons took part.
In the part of professional education, in 2003 and until December 2004, over 70 programs were organized
and attended by over 3,400 persons under the unemployment records.
19
Implementation of the Project "Legalization of the Current and Creation of New Jobs« , adopted on April
10,2003 as the integral part of the Economic Reform Agenda brought significant results.
• In 2003, the Government of Montenegro adopted Decree on tax relieves for newly employed persons used by about 30,000 persons by the end of 2004.
• Initiatives were made for removal of business barriers, particularly concerning employment and
registration of newly employed persons (One-Stop Shop);
• The Project of 14 credit lines (The Government of Montenegro and six commercial banks -Montenegro
Bank, Montenegrin Commercial Bank, AtlasMont Bank, Podgorička, Nikšićka and Pljevaljska Bank),
supported 652 projects in agriculture, tourism and new employment in the amount of €9.6 million;
• Within the credit line of the Project “Enhancement of Domestic Companies Competitiveness” total
funds in excess to € 6 million were allocated as follows:
Agriculture
Meat industry € 2,295,000
Agropark € 300,000
Development of plastic greenhouse production € 800,000
Development of commodity producers in the primary production € 1,150,000
Processing industry € 150,000
Wood Industry
€ 1,000,000
Tourism
€ 210,000
Subsidies for the export-oriented projects
€ 357,000
•
•
•
Activities for the education of the unemployed, retraining, employment of disabled persons, etc.
are being continuously conducted.
Since February 1999, as a part of the Program for continuous stimulation of employment and entrepreneurship in Montenegro, the Employment Institute has granted 7,660 credits to the persons
commencing a business activity in the total amount of € 37.9 million. These projects enabled the
creation of 12,669 new jobs. Out of these numbers, 1,945 credits were granted in the first half of
2006 (resulting in 3,136 new jobs), in the total amount of € 9.5 million.
Fiscal duties on salaries of the employed persons were reduced by 10% in 2004.
In accordance to the Economic Reform Agenda, which defines the entrepreneurship as the main engine
of future economic growth, and in line with the Government’s Workplan for 2006, an “Entrepreneurship
Encouragement Program” has been developed. The implementation of “EEP” envisages provision of credit
support in overall amount of € 20 million. Out of that, € 11.2 m will be provided for through the Employment
Institute and the Directorate for Development of Small and Medium-Size Businesses, while the remainder
of the funds will be secured with the participation of the banking sector.
Business registration in Montenegro takes four day, initial capital is €1 (except for joint-stock companies)
and according to this criteria Montenegro is the best in the region (World Bank Report). Preparation of legislation that will soon resolve the licensing problem is in progress.
The basic data:
1989 there were 36 privately owned small and medium-size enterprises
2005 there were 27,970 registered small and medium-size enterprises and entrepreneurs
1989 the participation of small and medium-size enterprises in GDP was 7.1 %
2005 the participation of small and medium-size enterprises in GDP was around 6 2%.
20
COMPANIES
22
PRIVATIZATION
Privatization is being carried out in accordance to the Privatization Plan, which is being adopted on annual
basis. The main objectives of the privatization are to increase competitiveness and efficiency of operations
of companies in Montenegro, to provide incentives for foreign investment and entrepreneurship in all sectors, and finally to increase employment level and improve the standard of living.
1. Agriculture
1) Companies whose shares will be sold on a public tender:
No.
1.
COMPANY
“Plantaže”
AD Podgorica
1.
»Hladnjača«
(Cold Storage)
Berane
2.
»Pekara»
(Bakery)
AD Berane
3.
»Agriculture
and forestry«
AD Berane
4.
AD ”Prehrana”,
(Food Products)
Pljevlja
5.
AD "Vino promet" (Wine Trade)
Herceg Novi
Basic facts about the company
• Business activity: production, processing and trade of agricultural products, production of wine and liquors, production of vine and fruit seedlings, production of fish and
juvenile fish, cattle breeding, catering-hospitality trade and trade.
• Production capacities: vineyard area of 2200 hectares, the largest in Europe, two wine cellars
with the capacity of 250,000 hectoliters, plantations of peach with the area of 97 hectares,
fish-pond with the annual production of 120 tons of California trout, cold storage with the
capacity of 3,000 tons, retail facilities, and catering-hospitality business facilities.
• Estimated value: € 65,677,414.00
• The activities for the preparation of privatization strategy are underway
2) Companies to be privatized through auctions or sales on a stock exchange market:
• Ownership details:
AD ‘’BEPEK’’
44.9810%
Natural persons
20.1048%
“TEHNOSTAR” Partnership
12.4190%
Pension and Disability Fund of Montenegro (PIO)
22.4952%
• The plan envisages the sale of 22.4952% of the share capital owned by the Pension
and Disability Fund of Montenegro (PIO).
• Business activity: Production of bread and pastries
Natural persons
47.7843%
“TEHNOSTAR” Partnership
29.6313%
Privatization fund “MONETA”
0.0971%
22.4874%
• Ukupan kapital društva €: 1.205.242,00
• Business activity: Agriculture
Natural persons
68.8439%
Privatization fund “MONETA”
1.1702%
22.4879%
Employment Institute of Montenegro
7.4980%
and Disability Fund of Montenegro (PIO) and 7.4980% of the share capital owned
by the Employment Institute of Montenegro
Natural persons
27.1538%
Development Fund of Montenegro
43.3055%
22.1554%
7.3852%
• The plan envisages the sale of 72.8461% of the company’s share capital
Natural persons
25.1662%
44.9000%
22.4500%
7.4838%
• The plan envisages the sale of 74.8338% of the company’s share capital.
23
6.
"Fabrika stočne
hrane" (Cattle
Feed Factory)
Spuž
“CARINE” - PODGORICA
39.5158%
Natural persons
39.6652%
20.8190%
2. Tourism
Companies whose shares and property are to be sold through tender procedure:
No. FACILITY NAME
1. Hotel «Galeb»
(property of
HTP «Ulcinjska
rivijera»)
2.
Hotel
‘’Grand Lido
and Lido
Apartments’’
– property of
HTP ‘’Ulcinjska
rivijera’’
BASIC FACTS ABOUT THE FACILITY
• Hotel "Galeb" is a complex which includes the main building and five villas for rent. It is
located in Ulcinj, on the southern slope of Pinješ hill, between one of the town’s main traffic arteries, the sea shore, and a free green area partially covered by a pine wood. The total
area of the land pertaining to the hotel is 20,318 m2. The hotel was built in 1982.
• Total area of the hotel building plus the villas for rent is 13,620 m2. in terms of category it is a three-star hotel.
• The hotel’s capacity is 335 beds, plus 60 beds villas for rent.
• The deadline for submission of bids for the purchase of the hotel has expired – the
process of consideration of received bids is in progress.
• Hotel !Grand Lido with Lido Apartments! is located in Ulcinj on the Great Beach, at a
lot of land with total area of about 95,000 m2, title deed no. 2018, Cadastre District
Donji Štoj. Hotel "Grand Lido" was built in 1967. Total area of the hotel is 4,167 m2. By
category it is a one-star hotel, with the capacity of 52 double rooms and four double
apartments with balconies, a restaurant with 120 seats, a reception and a lobby on
the ground floor. Most of the room are air-conditioned and have a satellite TV link.
Adjoining the Hotel "Grand Lido" there is a restaurant complex with the total area of
3,023 m2, two kitchens, restaurants on two floors, and the total capacity of 950 seats.
"Lido"
Apartments were built in 1967, with the total area of 7,770 m2. They consist of
30 blocks with 232 rooms, out of which 28 blocks with eight doble rooms each, one
block with four apartments, and one block with four double rooms.
The international tender for the sale of the hotel is underway.
3.
AD "Jadran"
Perast
4.
Hotel
‘’Bellevue’’
- property of
HTP ‘’Ulcinjska
rivijera’’
Deadline for submission of bids is October 10, 2006, 3 PM local time. Bids are to be
submitted to the Ministry of Tourism.
The Program of restructuring and privatization of this company is being focused on a
switch to hotel business, with the introduction of additional services for the off-season
period (congress tourism), and a possible development of educational facet of business
activity.
• Deadline for submission of bids for purchase of 70.7816% of the company’s share
capital has expired – received bids are currently under consideration
Hotel Bellevue is located on the Great Beach in the immediate vicinity of Grand Lido hotel. It
consists of four buildings, three of which have the lodging function (named “Avala”, “Cer”, and
“Borik”), while the fourth is multi-functional. The hotel was built in 1968. “Avala” has the area
of 6460 m2 and the capacity of 315 beds, “Cer” – 2811 m2 and 128 beds, and “Borik” - 5368 m2
and 255 beds. Total area of the hotel is 19,939 m2, and its total capacity 698 beds.
The fourth building is multi-functional, with the area of 5300 m2. It houses ”Bellevue”
restaurant, a cafe, and a discoteque. In terms of outdoor facilities, the hotel has eight
tennis courts and a tennis club with a bar.
Preparations for the renewal of a tender through a bankruptcy procedure are in
progress.
5.
24
Hotel
‘’Olympic’’ property of HTP
‘’Ulcinjska
rivijera’’
Hotel Olympic is located on the Great Beach in the immediate vicinity of “Bellevue” and
“Grand Lido” hotels. It was built in 1971. Its total area is 6529 m2, and total capacity 254
beds. Of additional facilities, there are two saunas, an indoor pool of 143 m3, and outdoor courts for football, basketball, volleyball, and tennis.
Preparations for a sale by an international tender through a bankruptcy procedure
are in progress.
6.
7.
8.
9.
10.
Hotel
‘’Castellastva’’
in Petrovac,
property of HTP
»Budvanska
rivijera»
Hotel ‘’Ville
Oliva’’ in
Petrovac, property of HTP
«Budvanska
rivijera»
Hotel „Centar
za odmor i
Rekreaciju”
(“Rest and
Recreation
Center”) Igalo
"Montepranzo
– Bokaprodukt"
AD Tivat
ADA
Ulcinj
BOJANA
Year of building: 1973.
No. of rooms: 174
No. of beds: 348
Preparations for a sale by an international tender are in progress.
Hotel is situated in Petrovac, at an extraordinarily favourable location, very near the
sea shore. Its capacities include 12 lodging units – “villas”, with a total number of 300
comfortable beds, dėpendence, and a building in which reception and restaurant are
placed.
The consideration of received bids is in progress.
Located in the center of Igalo a few meters from the sea, on a 7km long Herceg-Novi
promenade “Pet Danica”, surrounded by a beautiful park, in the immediate vicinity of
‘’Dr.Simo Miliošević’’ institute.
• Negotiations with the potential investor about the sale of 80.9642 % of share
capital owned by Pension and Disability Fund of Montenegro (PIO) are in progress.
• The plan envisages the sale of 75.0557% of the company’s share capital owned by the
Development Fund of Montenegro (51.4010 %), Employment Institute of Montenegro
(5.9088 %), and Pension and Disability Fund of Montenegro (PIO) (17.7459 %).
• Preparation of tender is underway.
Most of Ada Bojana Island is a nature park with protected biodiversity, with the area of
about 500 hectares, and the coastline length of around 3.5 km. On two sides the island
is washed by the Bojana river.
• The length of beach is 2,750 m, and its average width 30m.
• The unique quality of the region is reflected in a wide sandy beach with constant
accumulation of fresh sand from the Bojana river and the hinterland of a pristine nature, a real paradise on earth for its guests. The environmental value of the island is
based on the preserved nature of the locality and the variety of animal and lant life
inhabiting it, making it unique spot of the Adriatic and even Mediterranean coast.
• The objective is to develop this, at one time well-known nudist resort, into a unique
and typically Mediterranean hotel complex, in which the constructions and facilities,
as well as the activities provided by them, will be completely blended into the natural
environment of the area.
• Based on the Ulcinj Regional Masterplan for Development of High-Quality Tourism,
the capacity of this portion of the overall development project should be up to 2,500
hotel beds, depending on the type of complex that would be built, which is to be
defined by a specific (harmonized) project.
11.
"UTIP" Crna
Gora AD
Podgorica
"UTIP Crna Gora” owns three hotels, as follows:
1) HOTEL "CRNA GORA"
• Located in the very center of Podgorica, with four attractively decorated lounges and
a summer garden with 1000 seats
• A four-star hotel
• Capacity – 290 beds
2) HOTEL "LJUBOVIĆ"
• Two-star hotel
3) HOTEL "ZLATICA"
• Two-star hotel
• Deadline for submission of bids for purchase of 51.36% of the company’s share
capital owned by the Development Fund of Montenegro (2,375,536 shares or
15.9652%), Pension and Disability Fund of Montenegro (PIO) (3,946,400 shares
or 26.5447 %), and the Employment Institute of Montenegro (1,315,400 shares or
8.8478 %) has expired. Received bids are currently under consideration.
25
HTP "BOKA"
AD Herceg Novi
12.
HTP "Boka" owns the following three hotels:
1) HOTEL "PLAŽA" – situated on the seashore near the Old Town and the Savina National
Park. Total area of the hotel building is 12,000 m2.
• A three-star hotel
• Capacity - 582 beds
2) HOTEL "TAMARIS"
• Located in Igalo, on the seashore
• A two-star hotel
3) HOTEL "IGALO"
• Located in Igalo, on the seashore
• A two-star hotel
• Preparations for the renewal of a tender for the sale of 59.4516% of the company’s total capital, owned by Development Fund of Montenegro (6,457,689 shares
or 24.5856%), Pension and Disability Fund of Montenegro (PIO) (6,868,480
shares or 26.1495 %), and Employment Institute of Montenegro (2,289,494
shares or 8.7165%) are in progress.
3. Wood Processing
No. COMPANY NAME
1. AD DIP – Žabljak
AD “Gornji Ibar”,
Rožaje and ŠP
AD "Rožaje"
Rožaje
2.
BASIC FACTS ABOUT THE COMPANY
• Primary activity: wood processing
• Annual production capacity: Sawmill – 19,170 m3
• Product range: wooden panels for ceilings and walls, deck floor
• Estimated value of the capital
Ownership details:
Natural persons
• The company is undergoing a bankruptcy procedure
1,776,177 €
68.8139%
0.6585%
22.8965%
7.6312%
• Primary activity: wood processing and forestry
• Annual production capacity: Sawmill – 27.800 m3
• Product range: drying plant, wooden panels for ceilings and walls, deck floor; doors
and windows frames; laminated panels.
• On the basis of Restructuring Plans for the companies “AD Gornji Ibar” and “SP AD
Rozaje” (both companies in bankruptcy) and pursuant to Article 80 of the Law on
Insolvency (“Off. Gaz. RoM” no. 6/02), the bankruptcy manager has published an
advertisement announcing the public sale of the complete property of the abovementioned companies by method of sealed bids. Deadline for the submission of final
bids is July 30, 2006.
4. Companies Form other lines of Business
No.
1
26
COMPANY NAME
AD
"CRNAGORAPUT"
Podgorica
BASIC FACTS ABOUT THE COMPANY
• Company “Crnagoraput AD” Podgorica is a renowned name in the construction
business, chiefly providing the services of maintenance and preservation of main
route and regional roads in Montenegro.
• It was founded in 1962 as “Company for Roads”.
• On April 30, 2006 the company had 858 employees.
• It has a leading position in the market and the capacities to perform all sorts of
work on reconstruction, modernization, repair, or constructionof road network.
• The plan envisages the sale of a minority package of shares – in total, 30.9208 % of the
company’s share capital, with a mandatory recapitalization of 20.0663 % of the company’s capital, in order to secure the buyer the ownership of 50.9871 % of company’s
shares.
• Deadline for submission of bids is September 12, 2006 at 17:00 (local time).
2
THERMAL POWER
PLANT PLJEVLJA
AND COAL MINE
PLJEVLJA
• Primary activity of the Coal Mine is the production and preparation of coal for the
purposes of Thermal Power Plant, other industry, and general consumption, and
also research in the field of coal and other raw materials, etc.
• Total production of coal from the time the Coal Mine was established until present day is about 50 million tons of coal, with the annual production of 1.5 million
tons of lignite – brown coal.
• Number of employees is about 1600
“TE (TPP) Pljevlja” was established in August of 1976 as a part of the then existing
“SOUR EPCG Nikšić”. It went into function in 1982.
• On December 31, 2004 TPP had 376 employees
• The strategic objective of the company is to maintain the production level of the
existing block and to increase the total production by constructing the second
block of the Thermal Power Plant. Both blocks have been projected at the level of
210 MW, and 30% of the second block’s property (?) has already been constructed.
• Deadline for the submission of bids for the purchase of 31.1117 % of share
capital of "Rudnik uglja" AD (Coal Mine) Pljevlja and TPP Pljevlja as part of the
EPCG’s property has expired – negotiations with the first-anking bidder are in
progress.
3
"Jadransko
brodogradilište
AD” (Adriatic Shipyard) Bijela
4
ŽELJEZARA NIKŠIĆ
AD
(Ironworks)
• Adriatic Shipyard Bijela, founded 1927, is the largest repair shipyard in southern
part of the Adriatic, and boasts a long tradition of success in repairing and servicing ships.
• The Shipyard is fully equipped for the repair of vessels of all types and purposes,
up to 120,000 tons of tonnage. In addition to that, the Shipyard also has capacities for the building of vessels – all-purpose barges (both powered and unpowered), pontoons, work platforms, and a variety of other steel structures
• The high quality of Shipyard’s work has been confirmed by the international
certificate ISO 9002 it gained, and the implementation of ISO 14000 and ISO
18000 standards is in progress.
• The Shipyard offers its services at the international maritime market, and therefore the services it provides have almost exclusively the character of export. The
participation of foreign companies in the total demand for the Shipyard’s services was 90% in 2002, and 95% in 2003.
• Countries to which most of the Shipyard’s services is being exported are
Germany, Greece and Italy.
• Number of employees is 791.
• The plan envisages the sale of 62.7123% of the company’s share capital owned by the
Development Fund of Montenegro (32.2517%), Pension and Disability Fund
of Montenegro (PIO) (22.8455%), and Employment Institute of Montenegro
(7.6151%).
• Ironworks Nikšić produces high-quality alloy steels in a wide range of qualities
and dimensions. Raw steel is produced in electric arc furnaces with out-of-furnace finishing and vacuumization. Processing of steel into bars, rods, angled bars
and wire is performed in the Rolling Mill and Steel Drawing Mill. In the Forge steel
is put through the hydraulic press and the rolling mill of radial-axial type.
5
"OPTEL" AD Pljevlja
• Public invitation of bids in a tender for the sale of the majority package of
Nikšić Ironworks is in progress.
• Primary activity of the company is the production of optoelectronic, electronic,
telecommunication, and microwave mechanisms, devices and systems, including
the manufacturing and repair of radar, optoelectronic, and telecommunication
units, rocket technology, electronic devices of general consumption, and antennae and antenna systems.
• Public invitation of bids has been made for the sale of 43,327 shares of the company, which is 81.4341% of the company’s share capital, owned by the Government
of RoM (28,504 shares, or 53.5739%), Development Fund of Montenegro (8,894
shares of 16.7165%), Pension and Disability Fund of Montenegro (4,447 shares or
8.3582%), and Employment Institute of Montenegro (1,482 shares or 2.7855%).
• The consideration of received bids is in progress.
27
28
6
»Duvanski
kombinat« AD
(Tobacco Company)
Podgorica
7
Institute "Dr. Simo
Milošević", Igalo
8
AD "Marina" Bar
9
AD "Barska
plovidba”, (Bar
Navigation) Bar
10.
Prekookeanska
plovidba,
(Transoceanic
Navigation) Bar
• Primary activity: Primary processing and preparation of tobacco, cigarettes manufacturing, wholesale and retail trade. At the moment, the company produces six
brands of low-cost cigarettes: “Lovćen”, “Point”, and “Winsent”. The production of a
new brand named “YES” has been started in 2003.
• The company (“DKP”) owns production facilities and administrative buildings.
Company’s principal location is in Podgorica, and there are also offices and warehouses in Bar, Berane, Bijelo Polje, Budva, Cetinje, Herceg Novi, Kotor, Nikšić,
Pljevlja, and Ulcinj. Retail network in Montenegro consists of 157 metal kiosks
and 4 retail units. The company also owns office premises and warehouses in
Belgrade, Niš, Novi Sad, and Kraljevo.
• Installed production capacities of “DKP” allow the monthly production of 400
tons of cigarettes (4,800 tons per year). However, due to the lack of regular maintenance
and repairs to the production equipment during the monitored period, the effective capacity, according to the current management, varies between 250 and 300 tons of cigarettes per month.
• 1,096 employees
• According to the plan, 51.1046% of the company’s share capital will be sold.
• In order to create the conditions for a successful privatization, within the company
a restructuring has been completed by establishing two new limited companies:
"Duvankomerc" DOO (Tobacco Commerce) and "Proizvodnja i obrada duvana“ DOO
(Tobacco Production and Processing).
• Activities have been started for the preparation of a public tender for the sale of
shares of the limited companies, with the sale of the share in the single-member
limited company "Duvankomerc" from Podgorica seen as a priority.
• Institute for physiotherapy, rehabilitiation, and rheumatology “Dr. Simo
Milošević” is a joint-stock company that is one of the biggest and best known
institutions for the multi-disciplinary rehabilitation, physio- and preventive
medicine, wave therapy, and spa therapy in the entire Mediterranean region.
• Igalo Institute covers the area of 86,206 m2 in total, and it is comprised of a number
of structures that can be divided into:
• Rehabilitation Center – Phase I, area 15,232 m2
• Mediterranean Health Center – Phase II, area 56,006 m2
Institute also owns other buildings which are not in function (real estate not related
to business activity – Villa “Galeb”, Children’s Rehabilitation and “E” building, Inex
restaurant, sports center).
Capacity: 1600 beds, 778 rooms
The Institute owns very good diagnostic, therapy, and therapy progress monitoring equipment. There are five indoors pools used for various types of therapy, a
number of fully equipped examination and therapy rooms, laboratories, a great
indoor swimming pools, a gym, a bowling alley, basketball court, football field, and
a jogging and hiking track. Also, there are several congress rooms.
Value of share capital is € 47,908,000
The Plan envisages the sale of the majority package of the company’s shares.
• The Plan envisages the sale, by means of an international public tender, of
51.3440% of the company’s shares currently owned by: Montenegrin state 18.3953
%, Pension and Disability Fund of Montenegro 12.6664 %, Employment Institute of
Montenegro 4.2222 %, and Development Fund of Montenegro 16.0601 %.
• The Plan envisages the sale, by means of an international public tender, of 51.2323
% of the company’s shares currently owned by: Montenegrin state 18.3953 %, Pension
and Disability Fund of Montenegro 12.6664 %, Employment Institute of Montenegro
4.2221 %, and Development Fund of Montenegro 15.9485 %.
• The Plan envisages the sale, on an auction or the stock exchange market, of
51.3441% of the company’s shares currently owned by: Montenegrin state 18.3953
%, Pension and Disability Fund of Montenegro 12.6665 %, Employment Institute of
Montenegro 4.2222 %, and Development Fund of Montenegro 16.0601 %.
11.
Small Hydro-electric Power Plants
The Plan envisages privatization of the following small hydro-electric power plants:
• Hydro-electric Power Plant Podgor (0.4 MW; 0.15 GWh)
• Hydro-electric Power Plant Rijeka Mušovića (1.28 MW; 3.4 GWh)
• Hydro-electric Power Plant Rijeka Crnojevića (0.55 MW; 0.9 GWh)
• Hydro-electric Power Plant Šavnik (2x0.1 MW; 0.5 GWh)
• Hydro-electric Power Plant Lijeva Rijeka (0.055 MW; 0.15 GWh)
12.
AD "Luka Bar"
(Port of Bar)
13.
AD
"Elektroprivreda
Crne Gore" (Electric
Power Company)
AD "Željeznica Crne
Gore" (Railways of
Montenegro)
• A modern sea harbour with an international reputation of highly active port offering services of transshipment of freight of all types at a high quality level.
• Situated in the southern part of the Adriatic, which is a favourable position
for the establishment of a distribution center for the entire region.
• Annual transshipment and transport of 5 million tons of freight.
• Activities for the development of privatization strategy for this company are underway.
• Primary activity: production, transmission, distribution, and supply of electric power
to consumers.
• Activities for the development of privatization strategy for this company are
underway.
• Primary activity: transport of passangers and goods, powering of trains and maintenance of rolling stock and railroads, technical supervision, construction and
maintenance of machines, plants and installations, etc.
• Activities for the development of privatization strategy for this company are
underway.
• FMD produces a large number of various metal products, including the following: metal parts for the hydraulics industry, metal parts and mechanisms for the
automobile industry, metal parts for the military industry, metal parts for the
optoelectronics industry, microengine axles, springs, parts of the braking system
for the elevators, tool holders for CNC lathes, parts and mechanisms as ordered by
the customer.
• Number of employees: 90
• Primary production activities of FNP are the manufacturing of pyrotechnical composites and components, refinement and repair of pyrotechnical products, and
climatic-mechanical and internal ballistic testing of the products. FNP produces a
wide range of products for military use, such as pyro-cartridges, rocket engines,
and explosive charges for the ejection seats and other purposes in aircrafts, tanks,
etc.
• Number of employees: 24
• The announcement of public invitation to tender for the purchase of 31.8754%
of shares of companies FMD and FNP is pending, with the requirement of recapitalization included.
14.
15.
“4. novembar”
Metal Parts Factory
Mojkovac (FMD)
and
“4. novembar”
Special Purposes
Products Factory
Mojkovac (FNP)
16.
Holding ElektroIndustrija ‘’OBOD’’
(Electronic
Industry Holding)
– Cetinje
• “OBOD” is structured as a holding company consisting of the following production
units: “Refrigerators” (capacity – 240,000 units annually, in two shifts), “Combined
Refrigerators and Vertical Freezers” (capacity – 220,000 units annually, in two shifts),
“Horizontal Freezers”, (capacity – 160,000 units annually, in two shifts), “Washing
Machines” (capacity -100,000 units annually, in one shift), “LUX” (capacity – 100,000
units annually, in two shifts), “Icemakers” (capacity – 8,000 units annually, in two
shifts), “Condensers” (capacity – 950,000 units annually, in two shifts), and “Metal
Processing” (factory’s capacity is 2,250,000 units annually, in two shifts).
Natural persons
28.0728%
Employment Institute of RoM
6.4255%
Pension Fund of RoM
19.2764%
Government of RoM
1.5417%
Development Fund of RoM
12.5533 %
Privatization Fund “TREND”
32.1303%
• 1181 employees
• The preparation of privatization program for this company is in progress.
29
17.
30
AD ‘’Radoje Dakić’’
- Podgorica
18.
AD ‘’Zimossport’’
– Žabljak
19.
AD "Castello
Montenegro" Pljevlja
20.
Hemijska industrija AD’’Poliex’’
(Chemical
Industry)
-Berane
21
AD ‘’BOKELJKA’’
– Kotor
(in bankruptcy)
• Primary activity: production of construction machinery and providing of a variety
of services, including the very complex and demanding ones, in the area of metal
processing and manufacturing of complex metal components and structures.
THE STATE
12.3505%
Natural persons
32.3785%
0.0001%
15.4253%
Pension Fund of RoM
15.4153%
GOVERNMENT OF ROM
19.2918%
5.1384%
• A significant part of the company’s property has been sold at auction and the
proceedings were used to settle the company’s debt to the employees.
• Primary activity: production of protective and medical equipment for convalescents and athletes.
• Installed capacity is 1,050,000 units; however, due to depreciation, the actual
production volume is significantly smaller than that.
• Capital value is € 818,070
• Ownership details: Development Fund of RoM
48.7446%
Pension Fund of RoM
29.2720%
9.7657%
Natural persons
11.1848%
Montecco Inc – Pg
1.0328 %
• The Plan envisages privatization of the company by an auction or sale on stock
exchange market.
• Primary activity is the production of socks and HTZ equipment.
• Installed capacity:
- HTZ gear
50,000 pcs
- Socks production
450,000 pcs
• Value of capital is €1.9 million
• 36 employees.
• The Plan envisages sale of 85.7518% of the company’s share capital.
• Primary activity: production of mines and explosives, plastic explosive, connectors,
electric detonators and non-detonating fuses for mining, for the needs of Yugoslav
Army and various companes.
• Installed capacity: The company was projected for about 350,000 standard working
hours per year.
• Factory’s capital value has been estimated at € 6,432,307.50
Republic of Montenegro
46.4052 %
Natural persons
53.1378%
Privatization Fund “MONETA”
0.4571%
• The activities for the selection of a legal adviser for the privatization of the company are in progress.
• Primary activity: rubber products – parts for washing machines, motor vehicles
(brake pads for automobiles and trucks, rubber parts for the motor oil filters, in the
clutch, electrical installations, etc.), and other rubber products manufactured on
order.
• Product placement in the markets of Slovenia, Croatia, Bosnia-Herzegovina, SerbiaMontenegro and Kosovo. The level of utilization of capacities is 15-20%.
• Annual production capacity in one shift is 281.4 tons.
• Ownership details: Natural persons
32.2299 %
Development Fund
40.6625 %
Pension Fund
20,7774 %
Employment Institute
6,7774%
• 54 employees
• The debtor (company) is undergoing a bankruptcy procedure. The Commercial
Court in Podgorica has announced the sale of all assets of the debtor. Time for
submission of bids is running, and the starting price is € 4,700,000.00.
AD ‘’POLIMKA’’ Berane
• Primary activity : leather manufacturing
• Installed capacity: small leather (285,000 m2), large leather (329,000 m2) leather
garments (50,000 pcs), accessories (150,000 pcs), by-products: wool (290,000 t),
leftovers (50,000 m2), fur needs (219 t).
• Estimated value of the capital is € 13.55 million
Ownership details: ATLASMONT BANK
5.8131%
Natural persons
30.4424%
23.5992%
13.4030%
Pension Fund of RoM
15.9858%
GOVERNMENT OF ROM
5.4279%
5.3287%
148 employees
Tender has been announced. The signing of contract is expected shortly.
PRIVATE SECTOR-SME
Possible forms of cooperation with these companies:
I. Business cooperation (trade, leasing, franchising, etc.)
II. Joint ventures in development projects
1. AGRICULTURE AND FOOD INDUSTRY
Agrobiznis sistem d.o.o.
Aleksandrija – Daž d.o.o.
Bjelasica-Rada a.d.
Crnagoracoop a.d.
DonZe d.o.o.
Ekoplant d.o.o.
-
Primary activity/product: Cattle feed
Pete proleterske 5, 81400 Nikšić
+381 83 213 501, 213 560
[email protected]
www.agrobiznissistem.com
Primary activity/product: Bread, pastries, confectionery, catering-hospitality
Bijela bb, 85343 Bijela
+381 88 683 465, 683 448, 683 452
[email protected]
www.aleksandrija.net
Primary activity/product: Mineral water in PET bottles of 1.5 L and 0.5L, and glass
bottles of 1 L and 0.25 L
Ul. Industrijska bb, 84000 Bijelo Polje
+381 84 480 680, 480 686
[email protected]
www.rada-cg.com
Primary activity/product: ground coffee, vacuum packed, espresso coffee, and
confectionery (chocolate cream, cookies, chokolate, sweets)
Naselje Landža bb, 81410 Danilovgrad
+381 81 812 402, 812 264, 812 464
[email protected]
Primary activity/product: Icecreams and other frozen products
Ćemovsko polje bb p. Fah 372, 81000 Podgorica
+381 81 658 143, 658 144
[email protected]
Primary activity/product: Fruit and decorative plants seedlings, horticultural planning and engineering
Partizanski put 37, 81000 Podgorica
+381 81 281 010, 281 011
[email protected]
www.ekoplant.cg.yu
31
Flores d.o.o.
Gorska d.o.o.
Gradina Company d.o.o.
Hertog chickens d.o.o.
In - spe d.o.o.
Inpek a.d.
Ital Product d.o.o.
L'ars d.o.o.
Martex d.o.o.
Mediterano d.o.o.
Mesopromet d.o.o.
MI Goranović
32
- Primary activity/product: Processing, buying-up and packaging of medicinal herbs,
production of etherical oils
- Njegoševa p. Fah 19, 84205 Mojkovac
- +381 84 470 092, 470 093
- [email protected]
- www.flores.cg.yu
- Primary activity/product: Natural spring water in PET bottles of 0.5, 1.5, and 5.0 L
- Gornja Bukovica bb, 81453 Šavnik
- +381 83 267 220, 267 227
- [email protected]
-
Primary activity/product: Production and processing of meat and meat products
Ibarska 2, 84310 Rožaje
+381 87 271 087, 271 202, 271 198, 271 025
[email protected]
Primary activity/product: Whole range of chicken meat and chicken meat products
Šušunja bb, 81304 Golubovci
+381 69 030 250, +381 81 603 020
[email protected]
- Primary activity/product: Production line “Eko Montenegro”: buying-up, processing
and trade of medicinal herbs, honey, bee pollen and propolis; organic production
- Ul. Jovana Tomaševića 32, 85000 Bar
- +381 85 316 397, 316 050
- [email protected]
- www.eliksir.cg.yu
- Primary activity/product: Production and trade of food products, including bread
and pastries
- Radomira Ivanovića 10, 81000 Podgorica
- 381 81 658 074
- [email protected]
- www.inpek.cg.yu
- Primary activity/product: Production of cheese
- Cijevna bb, 81000 Podgorica
- +381 81 872 065
- [email protected]
- www.italproduct.com
- Primary activity/product: Production of “sweet” (regular milk) and “sour” (fermented
milk) dairy programs, domestic recipes
- Iva Andrića br 2, 81000 Podgorica
- +381 81 270 776
- [email protected]
-
Primary activity/product: Assortment of dried meat products
Jabučka bb, 81250 Cetinje
+381 86 232 399, 230 891
[email protected]
www.martex.cg.yu
Primary activity/product: Production, trade, services, and export-import
Ul. Desanke Maksimović bb, 81000 Podgorica
+381 69 309 301, 69 018 747
-
Primary activity/product: Fresh meat and meat products
Industrijska bb, 84000 Bijelo Polje
+381 84 478 488, 478 588
[email protected]
www.mesoprometbp.com
Primary activity/product: Slaughter-houses, buying-up of livestock, meat processing
Straševina bb, 81400 Nikšić
+381 83 253 166, 253 080, 253 033
[email protected]
www.goranovic.cg.yu
Milenko Sjekloća d.o.o.
Mljekara a.d. (Dairy
Company) Podgorica
Dairy Lazine - Šimšić
Montmilk d.o.o.
Dairy Nika d.o.o.
Dairy Srna - Šljukić co
Dairy Zora a.d.
Montemlin (Mill) Šajo
d.o.o.
Niksen trade Čavor
Noeza d.o.o. - Winery
Dobrska župa
Olioprom d.o.o.
–Martinović Bros.
Pantomarket d.o.o.
Pirella d.o.o.
Plantaže a.d.
-
Primary activity/product: Finest red wine and grape brandy "Sjekloća"
Liljani bb, 81305 Virpazar
+381 81 712 231, +381 69 020 285
[email protected]
- Primary activity/product: Buying-up, processing and production of milk, fermented
milk program, and icecreams
- Serdara Jola Piletića 1, 81000 Podgorica
- +381 81 237 573, 237 699, 237 520
- [email protected]
- Primary activity/product: Production and processing of milk and dairy products
- Lazine bb, 81410 Danilovgrad
- +381 81 815 312, 815 313
- [email protected]
- Primary activity/product: Production of milk
- Partizanski put bb, 81400 Nikšić
- +381 83 222 012, 231 302
- [email protected]
- Primary activity/product: Processing of milk and dairy products
- Ozrinići bb, 81400 Nikšić
- +381 83 258 161, 258 160, 258 162
- [email protected]
- Primary activity/product: Processing of milk and production of dairy products
- Dušana Vujoševića 14, 84300 Berane
- +381 87 236 509
- [email protected]
- Primary activity/product: Production of flour, bread, and pastries
- Spuž bb, 81410 Danilovgrad
- +381 81 882 160, 882 161, 882 162
- [email protected]
- www.sajogroup-montenegro.com
- Primary activity/product: Production and trade of dried meat products
- Dobrota bb , 85330 Kotor
- +381 82 332 159
- [email protected]
+381 69 561 783
-
Primary activity/product: Production of crude (virgin) olive oil
Belveder bb, 85354 Stari Bar
+381 85 342 304, 342 305, 342 306, 342 307
[email protected]
- Primary activity/product: Production of dried meat products, trade, export-import
- Zelenika bb, 85340 Herceg Novi
- +381 88 678 266
- [email protected]
- Primary activity/product: Production of fruit juices, fruit syrups, carbonated and
non-carbonated beverages
- Novo Selo - Spuž, 81410 Danilovgrad
- +381 81 883 350, 883 351, 883 352, 883 353
- [email protected]
- www.pirella.cg.yu
- Primary activity/product: Red and white wine, grape brandy
- Put Radomira Ivanovića 2, 81000 Podgorica
- +381 81 658 111, 658 031
- [email protected]
- www.plantaze.com
33
Trebjesa a.d.
-
Primary activity/product: Production of beer and refreshing beverages
Njegoševa 18, 81400 Nikšić
+381 83 244 534, 246 572
[email protected]
www.inbev.com
2. TURIZAM
MONTENEGRIN TOURIST ASSOCIATION
(comprising the MONTENEGRIN ASSOCIATION OF TOURIST AGENCIES and ASSOCIATION OF HOTEL AND RESTAURANT
OWNERS/MANAGERS OF MONTENEGRO)
Popa Jova Zeca bb
Tel. + 381 86 455 181
Fax. +381 86 455 182
3. WOOD INDUSTRY
No. COMPANY NAME
1. Bambis d.o.o.
34
2.
Doding d.o.o.
3.
Dom d.o.o.
4.
Mediator Montenegro
d.o.o.
5.
Les Gitanes d.o.o.
6.
Loris d.o.o.
7.
Mi-Rai
8.
Namještaj Babić – Luj
d.o.o.
9.
Scan International
d.o.o.
10.
Tilia d.o.o.
BASIC FACTS OF THE COMPANY
Wood processing – finishing: production of window shutters (“griglia”) and furniture (fitted wardrobes and kitchens)
Franca Rozmana 10/A, 81000 Podgorica
+381 81 611 006, 257 072, 611 362
[email protected]
Production of furniture, “Sogal” wardrobes
Majevička 18, 81000 Podgorica
+381 81 262 277, 262 288, 623 122
[email protected]
Wood processing – finishing (tables, chairs, cabinets...)
Naselje Doma Frega bb, 84300 Berane
+381 87 231 087, +381 69 050 691
[email protected]
Production of fitted furniture, as ordered by the customer
4. jula bb, 81000 Podgorica
+381 81 601 530, 634 802
[email protected]
www.servisicg.com
Furniture, panel and solid wood
Podgorički put bb, 81400 Nikšić
+381 83 253 250, 253 222
[email protected]
Wood finishing: solid wood, panels, upholstery
Mrkošnica bb, 81400 Nikšić
+381 83 218 834, 218 835
[email protected]
Furniture production, interior decoration, engineering, trade
Kočani bb, 81400 Nikšić
+381 83 256 123, 223 508, 223 509
[email protected]
www.mi-rai.cg.yu
Production of solid wood period furniture
J. Kurtagića 36, 84310 Rožaje
+381 87 272 404, 272 403
[email protected]
Factory of panel furniture and interiors, with a production line for solid wood
furniture
www.scan.cg.yu
Primary and secondary wood processing (components production), wood finishing (doors, windows, frames)
Velimira Jakića bb, 84210 Pljevlja
+381 69 041 591
[email protected]
4. Construction
No
1.
4.
COMPANY
"GRAĐEVINAR" a.d.
Podgorica
IGP"FIDIJA"d.o.o.
Podgorica
"CIJEVNA KOMERC" d.o.o.
Podgorica
"BAST" d.o.o. Nikšić
5.
"LIPA" d.o.o. Cetinje
6.
"NOVI PRVOBORAC”a.d.
Herceg Novi
"KROLING" d.o.o.
Danilovgrad
"GRADNJA PROMET" d.o.o.
Danilovgrad
GP"CRNAGORA"a.d. Nikšić
2.
3.
7.
8.
9.
10.
11.
"SAMCOMMERC" d.o.o.
Tivat
"ART BETON" d.o.o.
Podgorica
12.
"ČELEBIĆ" d.o.o. Podgorica
13.
"ZETAGRADNJA"d.o.o.
Podgorica
"TEHNOPUT"d.o.o.
Podgorica
"CRNAGORAPUT"d.o.o.
Podgorica
VGU“LOVĆEN" Podgorica
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
"ADRIA INVEST" d.o.o.
Budva
RZUPa.d. Podgorica
"ARHITEKTONSKI ATELJE"
d.o.o.Podgorica
ZIB - ZAVOD ZA IZGRADNJU BARA Bar
JP "WATER SUPPLY AND
SEWAGE" Podgorica
"ARHING" d.o.o. Bijelo
Polje
"MD-MOMO" d.o.o. Berane
"KVATROPROJEKT" d.o.o.
Pljevlja
"HIDROMOL" d.o.o.
Podgorica
BASIC INFORMATION
- Activity: other final works in civil construction
- 75 employees
- Activity: rough building works and specific civil construction works
- 23 employees
- Activity: rough building works and specific civil construction works -85
employees
- 43 employees
- 32 employees
- 175 employees
- 48 employees
- 61 employees
- 234 employees
- 61 employees
- Activity: production of other products of concrete, cement and plaster
- 12 employees
- 90 employees
- 10 employees
- 41 employees
- Activity: construction of roads, airline runways and sports terrains
- 49 employees
- 236 employees
- 7 employees
- Activity: spatial and urban planning and drawing up of plans for facilities
- 33 employees
- Activity: drawing up of plans for buildings and other facilities
- 6 employees
- 322 employees
- Activity: collection, purification and distribution of water
- 338 employees
- 4 employees
- 16 employees
- 4 employees
- Activity: Terrain exploration by drilling and probing
- 42 employees
35
5. TRADE
Agrocentar d.o.o.
Adria Co
Apadana palace
Bar-Code d.o.o.
BBS Conecting
Bega Press
Carine d.o.o.
Centrojadran a.d.
Đurković Company
d.o.o.
DR Trade d.o.o.
Euro Pact d.o.o.
36
- Primary activity/product: Artificial fertilizers, seeds, seedlings, plant protection preparates, small mechanization and irrigation equipment
- Vojislavljevića 39, 81000 Podgorica
- +381 81 642 114, 642 115
- [email protected]
- Primary activity/product: Trade in paints, laquers, and ceramics
- Polje bb, 85000 Bar
- +381 85 340 333, 340 171
- [email protected]
-
Primary activity/product: Sale of hand-made Persian carpets
Cetinjski put bb, 81000 Podgorica
+381 81 234 931, 234 932
[email protected]
- Primary activity/product: Cosmetics, perfumes, household chemicals, coffee, cigarettes, food products, toys
- Donja Gorica bb, 81 000 Podgorica
- +381 81 260 730, 260 740
- [email protected]
- www.bar-kod.com
- Primary activity/product: Import and distribution of furniture
- Bulevar Lenjina 29, 81000 Podgorica
- +381 81 202 715, 202 716
- [email protected]
- Primary activity/product: Import and distribution of press (newspapers, magazines,
etc.)
- Malo Brdo L1, 81000 Podgorica
- +381 81 227 674, 227 231
- [email protected]
- www.begapress.cg.yu
- Primary activity/product: Wholesale and retail trade, hotel services
- Skopska bb, 81000 Podgorica
- +381 81 402 400, 402 403
- [email protected]
- Primary activity/product: Wholesale and retail trade, storage and transport of goods,
storage in Customs warehouse, shipping
- Ul. JNA 4, 85000 Bar
- +381 85 346 346, 346 341
- [email protected]
-
Primary activity/product: Miscelaneous goods
Školska bb, Kličevo, 81400 Nikšić
+381 83 252 015, 252 016, 252 017
[email protected]
[email protected]
Primary activity/product: Office furniture
Cetinjski put bb, Donja Gorica, 81000 Podgorica
+381 81 261 072, 260 575, 260 574
[email protected]
www.drtrade.cg.yu
Primary activity/product: Wholesale of all types of oil derivates, retail of oil derivates,
LPG car fuel, goods of general consumption, car spare parts, oils, lubricants, and car
cosmetics
Tuzi bb, 81000 Pogorica
+381 81 875 972, 875 973
[email protected]
www.europact-mn.com
Eurosalon CG
Imperijal d.o.o.
Jolly commerce
Jugoimport-Mont
Knjaz d.o.o.
Krisma Motors
Ljetopis Automotive
Mex d.o.o.
MP Auto
Multiprint
Office Center
- Primary activity/product: Period and modern furniture for kitchens, dining rooms,
living rooms, and bedrooms; carpets, white goods, TV sets, HiFi units, small house
appliances
- Cetinjski put bb, 81000 Podgorica
- +381 81 261 830, 261 833, 260 960
- [email protected]
- www.eurosalon.net
- Primary activity/product: Wholesale of construction material
- Šukrije Međedovića 26, 84000 Bijelo Polje
- +381 84 431 700, 432 700
- [email protected]
- Primary activity/product: Wholesale and retail of office, school, and computer equipment
- IV Crnogorske 5, 81400 Nikšić
- +381 83 230 545, 230 546
- [email protected]
- Primary activity/product: Management of factories producing products for military
purposes, engineering, development and marketing, foreign trade, wholesale, representation of foreign companies, retail trade in specialized shops
- Miljana Vukova bb, 81000 Podgorica
- +381 81 242 400, 242 407, 242 415, 242 509
- [email protected]
- www.milindmontenegro.com
- Primary activity/product: Wholesale and retail trade
- Njegoševa 6, 81400 Nikšić
- +381 83 246 125
- knjaz-nikšić@cg.yu
-
Primary activity/product: “Ford” Authorized representative
Josipa Broza 53, 81000 Podgorica
+381 81 652 144, 652 155, 652 166, 605 310
[email protected]
- Primary activity/product: Authorized representative of “Mercedes”, “Chrysler” and
“Dodge”
- Kralja Nikole 357, 81000 Podgorica
- +381 81 648 841, 648 842, 648 843, 648 849
- [email protected]
- Primary activity/product: Wholesale and retail of commodities – general consumption goods
- Vasa Raičkovića 55, 81000 Podgorica
- +381 81 658 110, 658 130
- [email protected]
- www.mex.cg.yu
- Primary activity/product: Authorized representative of “BMW” and “Mini Cooper”
- Vojislavljevića 70, 81000 Podgorica
- +381 81 642 320, 642 330, 640 800
- [email protected]
-
Primary activity/product: Sale and maintaining of office equipment
24. Novembra H 22, 85000 Bar
+381 85 311 119, 313 092
[email protected]
www.multiprint.cg.yu
Primary activity/product: Authorized representative of “Citroen” and “Sharp”
Koste Racina 1, 81000 Podgorica
+381 81 626 451, 626 452, 626 453
[email protected]
www.officecenter.cg.yu
Montenegro
Crna Gora--Investment
InvesticioniChallenge
izazov
37
Perihard partners
Plus Commerce a.d.
Popović elektro sistem
d.o.o.
Primus electronics
Renault Alliance
Tažex d.o.o.
Uniprom d.o.o.
Veletex a.d.
Verano Motors
Voli d.o.o.
6. SERVICES
38
- Primary activity/product: Office supplies and computer equipment trade, laser printers servicing
- Fundinske bitke 6, 81000 Podgorica
- +381 81 646 045, 646 046, 646 047, 646 048
- [email protected]
-
Primary activity/product: Wholsale and retail trade in food and other products
Vuka Karadžića bb, 81400 Nikšić
+381 83 214 888, 214 999
[email protected]
Primary activity/product: Electrical installations, installation services, wholesale and
retail
Vasa Raičkovića 37, 81000 Podgorica
+381 81 246 802, 247 802, 248 802
[email protected]
Primary activity/product: Trade, import-export
Bulevar Đ.K. Skenderbega 22, 85361 Ulcinj
+381 85 413 100, 413 211
[email protected]
www.primus-el.com
-
Primary activity/product: Authorized representative of “Renault”
Ludvik Kuba 6, 81000 Podgorica
+381 81 270 679, 209 010
[email protected]
www.renault-alliance.cg.yu
- Primary activity/product: Trade, tourism, catering-hospitality, marketing, shipping,
services, retail, wholesale, liquor discount store, and restaurant
- Zelenika bb, 85346 Zelenika
- +381 88 678 225
- [email protected]
- www.biznis.cg.yu/plus/tazex/
- Primary activity/product: Recycling of secondary materials of iron and other metalurgy, pharmaceuticals and medical preparations, bread and pastries, vehicles and
spare parts, hotel industry services, transport, car repair services
- Podgorički put bb, 81400 Nikšić
- +381 83 253 424, 253 323, 212 554
- [email protected]
- Primary activity/product: Food products, household chemicals, non-durable goods,
seed products, agricultural mechanization and tools, plant protection mixtures, irrigation systems, plastic greenhouses, vineyard equipment, veterinary pharmacy
– medicines and equipment for pets
- Cijevna bb, 81000 Podgorica
- +381 81 606 260, 606 270
- [email protected]
-
Primary activity/product: Authorized representative of “Peugeot”
Bratstva i jedinstva 43, 81000 Podgorica
+381 81 633 427, 620 087
[email protected]
www.verano.co.yu
Primary activity/product: Retail chain, trading house and distribution center
Ul. SKOJ-a 2, 81000 Podgorica
+381 81 269 101, 269 102, 269 103, 269 104
[email protected]
www.mtc.cg.yu/voli.php
Alter Ego d.o.o.
Autoboka a.d.
Bencom d.o.o.
Chip d.o.o.
Čikom d.o.o.
Digit Montenegro d.o.o.
Grafo Crna Gora
Informatika
Montenegro
Internet Crna Gora
d.o.o.
Public Company
Airports of Montenegro
Jugodata d.o.o.
-
Primary activity/product: Marketing agency
Kralja Nikole 108, 81000 Podgorica
+381 81 601 015, 601 018
[email protected]
www.alterego.cg.yu
-
-
Primary activity/product: Passenger transport – bus service
Njegoševa 204, 85330 Kotor
+381 82 325 126, 322 111
[email protected]
www.autoboka.com
Primary activity/product: Accounting and auditing
Topalska 1, 85340 Igalo
+381 88 350 410, 350 411, 350 412, 350 413
[email protected]
Primary activity/product: Sale and servicing of computers and computer equipment
Miladina Popovića 193, 81000 Podgorica
+381 81 625 525
[email protected]
www.chipcomp.com
Primary activity/product: Software and hardware trade, system integration, certified courses and training
Serdara Jola Piletića 23, 81000 Podgorica
+381 81 227 114, 227 116, 227 119
[email protected]
www.cikom.cg.yu
Primary activity/product: Business IT systems, computers and peripheries, computer communication and networks, IT education and certification, maintenance
of IT systems, computer servicing, network equipment
Prve proleterske 10, 81000 Podgorica
+381 81 612 567, 612 568
[email protected]
www.digit.cg.yu
-
Primary activity/product: Printing services, delivery of office supplies
Kralja Nikole 79, 81000 Podgorica
+381 81 622 203, 622 204
[email protected]
-
Primary activity/product: IT engineering
Bulevar Save Kovačevića 123, 81000 Podgorica
+381 81 242 542, 625 925, 246 682
[email protected]
www.montsky.net
Primary activity/product: Internet service provider, realization and exploitation of
internet projects
Bulevar Sv. Petra Cetinjskog 3, 81000 Podgorica
+381 81 403 473, 403 445, 202 655
[email protected]
www.cg.yu
Primary activity/product: Receiving and dispatching of aircrafts, passengers, luggage, and goods
Crnogorskih serdara bb, 81000 Podgorica
+381 81 601 970, 601 890
[email protected]
Primary activity/product: Sale and servicing of computer equipment
Bratstva jedinstva 69, 81000 Podgorica
+381 81 624 833
[email protected]
www.jugodata.cg.yu
-
-
39
Port of Bar a.d.
Port of Kotor a.d
Mapa
Matrix d.o.o.
Montcarton
-
Primary activity/product: Production of cardboard packaging
Donji Kokoti bb, 81000 Podgorica
+381 81 891 892, 891 243
[email protected]
www.montacarton.com
Montenegro Airlines
-
Primary activity/product: Airline transport, regular and charter service
Beogradska 10, 81000 Podgorica
+381 81 405 501, 405 528
[email protected]
www.montenegroairlines.cg.yu
Montepano
-
Primary activity/product: Television “In” and billboard rental
13. Jula 2, 81000 Podgorica
+381 81 237 890, 237 766
[email protected]
www.tvin.cg.yu
-
Primary activity/product: Computers, telephone centrals, software
Ivana Vujoševića 18, 81000 Podgorica
+381 81 225 900, 201 520
[email protected]
www.montexel.com
Primary activity/product: Technical examinations, workplace security/protection
(periodical reviews and training of employees), review of projects, design of electrical and mechanical installations
Ulica 19. decembra 22, 81000 Podgorica
+381 81 230 011, +381 85 317 576
[email protected]
Primary activity/product: Prepress, design and advertising studio
19. Decembra 19, 81000 Podgorica
+381 81 664 280, 665 564
[email protected]
www.mousestudio.com
Montex elektronika
Montinspekt d.o.o.
Mouse studio
40
- Primary activity/product: Transshipment, storage of all types of freight, free customs zone
- Obala 13. jula bb, 85000 Bar
- +381 85 312 114, 312 365
- [email protected]
- www.lukabar.cg.yu
- Primary activity/product: International transport services
- Park Slobode 1, 85330 Kotor
- +381 82 301 332, 301 333, 325 571
- [email protected]
- www.portofkotor.cg.yu
- Primary activity/product: Consulting, video production, pre-press preparation,
media planning
- Trg Republike bb, 81000 Podgorica
- +381 81 231 327, 231 656
- [email protected]
- www.mapa.cg.yu
- Primary activity/product: DVD films rental, sale of computers and computer
equipment
- Hercegovačka 81, 81000 Podgorica
- +381 81 231 726
- [email protected]
- www.matrix.cg.yu
-
Nimont d.o.o.
P.R.A.
Rokšped d.o.o.
Telemont d.o.o
Trade Com MN d.o.o.
VG biroelektronika
d.o.o.
- Primary activity/product: Ship management, maritime agenting and brokering,
representation of foreign companies in Montenegro, import of cement
- Vladimira Rolovića 15/IV, 85000 Bar
- +381 85 317 170, 317 411
- [email protected]
- www.nimont.com
- Primary activity/product: PR, advertising and marketing services
- Ivana Crnojevića 49, 81000 Podgorica
- +381 81 601 850
- [email protected]
- www.pra.co.yu
- Primary activity/product: Automobile center (car dealership), rent-a-car, petrol station, shipping
- Tuzi bb, 81000 Podgorica
- +381 81 875 001, 875 002, 622 322, 875 444
- [email protected]
- www.roksped.com
- Primary activity/product: Import, distribution and engineering in IT and telecommunications field
- Vijenci Danila Kiša 2, 81000 Podgorica
- +381 81 206 010
- [email protected]
- www.telemont.cg.yu
- Primary activity/product: Distribution of computers and computer equipment
- Neznanih junaka bb, Stari aerodrom, 81000 Podgorica
- +381 81 605 435, 652 746
- [email protected]
- www.comtradegroup.com
- Primary activity/product: Representation of foreign companies, service and sale of
Zastupanje inostranih firmi, servis i prodaja biroopreme i fiskalne opreme, dizajn i
štampa velikih formata Naselje Čeluga bb, 85000 Bar
- +381 85 341 733
- [email protected]
- www.vggroup.cg.yu
-
Primary activity/product: Professional graphics, business IT systems
Petra Matovića 1, 81000 Podgorica
381 81 647 468, 609 060
[email protected]
www.winsoft.cg.yu
Colorprom d.o.o.
-
Primary activity/product: Production of paints and lacquers
Vidrovan bb, 81400 Nikšić
+381 83 201 256, 201 257, 244 377
[email protected]
Energogas d.o.o.
-
Primary activity/product: Trade and distribution of liquid gas
Dajbabe bb, 81000 Podgorica
+381 81 644 333, 644 335, 644 336
[email protected]
Euroflex d.o.o.
- Primary activity/product: Production and finishing of mattresses, innersprings,
sponges, garden furniture accessories
- Totoši bb, 85361 Ulcinj
- +381 85 412 253, 412 884
- [email protected]
Winsoft
7. OTHER INDUSTRIES
41
42
FAF & Co d.o.o.
- Primary activity/product: Factory is producing mattresses, mattress innersprings,
garden chair cushions, and quilts.
- Totoši bb, 85361 Ulcinj
- +381 85 411 414
- [email protected]
- www.faf-company.com
Kronus MN d.o.o.
-
Progas a.d.
- Primary activity/product: Production and trade of technical gases – acetylene, nitrogen, oxygen
- Mila Radunovića A3/13, 81000 Podgorica
- +381 81 239 169, 239 172, 239 174
- [email protected]
Primary activity/product: Production of horizontal freezers
Humci bb, 81250 Cetinje
+381 86 235 410, 235 375
[email protected]
DEVELOPMENT PROJECTS
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Within the economic reforms undertaken by the Government of Montenegro, which are oriented towards
achieving the set development goals, there are a number of key assumptions for ensuring the economic
growth of Montenegro:
• Ownership transformation with intensive privatization
• Entrepreneurship stimulation
• Liberalization of economy
• Building efficient administration and governance system
• Optimization and balancing of fiscal system
• Owner protection
• Investment attraction
AGRICULTURE
I Development of Agriculture on Individual Farms (€5 million)
Achieve faster development of family farms in cattle breeding and plants production under loan support
of banks by investing into:
− Credit line for development of family farms in cattle breeding (cows, young cow fattening, sheep,
goats, egg-laying hens etc.), development of beekeeping, mini fish ponds etc.
− Credit line for development of plant production
o Growing of nursery plants of sub-tropical fruits (raspberry, orange, lemon, pomegranate,
kiwi and figs,
o Regeneration of the current and growing of new olive groves o Wine grape plantations,
o Growing of nursery plants of continental fruit sorts: apples, pears, plums, cherries, berry-like
fruits (raspberry, blackberry) etc,
o Plantations of herbal plants and forest fruits,
o Building of green houses,
o Purchase of machines and equipment for irrigation
II Development of Agro Industry
a) Dairy Sector (€10 million)
In the area of milk production, there are numerous possibilities for the increase of production, particularly
the processing and production of finished products (milk and milk products), since less than 20% of the
total available quantities of milk is collected in Montenegro.
Particularly important project is relocation of Podgorica Dairy. Implementation of this project, in addition
to relocation from urban into the industrial zone, would include technology innovations, increasing the
processing capacity and broadening the product range.
b) Meat-packing Industry (€4.5 million)
The missing links in a meat production chain in Montenegro are modern export-oriented slaughterhouses.
The following investment opportunities may be considered with ino partners:
Slaughterhouse in Niksic – As part of Meat Industry “Goranović”, it should be equipped for the handling of
small and large livestock (sheep, goats, cows), and the modernization and reconstruction of the swine-slaughtering line would be fully justified having in mind the areas of Plužine, Žabljak, Šavnik, Nikšić i Danilovgrad
which gravitate towards this facility, and the market surplus of the livestock in this region.
Construction of the processing capacities and a drying plant for specialized products of goats and young
goat and mutton in Cetinje.
Slaughterhouse in Bijelo Polje (B. Polje, Mojkovac, Kolasin and part of Berane) within »Mesopromet« B.
Polje, prepare it for slaughter of small and big livestock.
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Slaughterhouse in Pljevlja (ZZ »Klanica« Pljevlja in bankruptcy). The Bankruptcy is at the final stage and
it is necessary to expediate the privatization and start the production in it.
Slaughterhouse in Gusinje (ZZ »Aljo Hot« Gusinje) should be specialized for the slaughter and export of
lambs, in cooperation with the strategic partner.
c) Processing of Vegetables and Fruits (6,5 million €)
The agro industry zone of Podgorica, in the already built facility of the area of 7.514 m2 managed by A.D.
«Plodovi Crne Gore» whose shareholders are the Government of Montenegro and Municipality of Podgorica
with 73% of shares, require purchase of equipment for processing of 10,000 tons of vegetables and fruits
including packaging and preserving. Business Plan was prepared by the EAR and it envisages the involvement of a foreign strategic partner to enhance the production and export of these products. In the area of
5000 m2 within the existing facility a distribution center would be created, and it would include the function
of preparation of fresh and frozen fruit and vegetable products for both domestic and foreign markets.
d) Wine Production and Vineyards (€2 million)
Increase the surface of land under vineyards by establishing vineyards (table and wine varieties) and common investments in establishing new vineyards with the most suitable varieties. More versatile and better
offer of table grapes intended for domestic market and export;
Construction of wine cellars of various capacities in the areas of Crmnica and Rijeka Crnojevica, investments
for improvement of wine production technology, packaging etc.
Vineyard tourism - Preparation of modern tourist catalogues with vineyard landscapes, investment in the
development of the vine growing village Godinje in Crnmnica, organizing the tourist attraction "grape harvest" and investment in the development of the wine and tourist road by the Lake of Skadar, from Virpazar
to Rijeka Crnojevica
III Bee Keeping - Honey
Montenegro has extremely favourable natural conditions for the production of high quality honey and
other bee keeping products. Opportunities for cooperation with Slovenian partners may be in the following projects:
• Financing the establishment of at least 100 bee hives with 100 bee societies, and with necessary
equipment and tools, located in mountainous and central parts of Montenegro.
• Forming a collection center (the central with two noticeable points) for bee keeping where collection, packaging and exports of honey would be carried out. The central one would mostly rely on
the newly formed bee hives and then on the existing ones.
• Establish the collection of other bee products such as pollen, propolis, bee bread, wax etc. In the central centre or elsewhere, locate the central laboratory equipment for examining the composition and
quality of honey as necessary preliminary activities concerning collection and export of honey.
• Develop the production of various pharmaceutical and cosmetic products based on honey and
other bee products that are already widely known and used in practice.
• Work on the activities to promote and declare the Montenegrin honey as the high quality product
with known geographic origin, and according to the type of plants from which the honey mostly
originates. Better packaging and distribution of honey in different quantities 25g (for known buyers,
tourist organizations, hotels), then 0.5 kg, l kg, 3 kg, 5 kg and 50 kg for domestic and export markets.
IV Fishing
Research into biomass of blue fish (sardelle and anchovy) indicate that maximum biological exploitation
level of sardelle and anchovy amounts to about 40,000 tons per year, which is in the value of about 30 million euros per year.
The quantities offish caught in Montenegro are not at a satisfactory level. It would be possible to hire 2 boats
from Delamaris for the needs of fish processing in Rijeka Crnojevica. Having in mind that the production
highly exceeds the capacity of the company »Ribarstvo« (Fishing) of Rijeka Crnojevica, the surplus quantities
would be processed in Delamaris and possibly return to the Montenegrin market as finished products, or
new processing facilities could be built in the zone of »Industrial Park» in Bar through joint.
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V Development of Support Services and Infrastructure (€ 1.5 million)
As part of the overall development of agriculture and product processing, the development of the
following functions has to be encompassed:
- Advisory service of the Republic
- Veterinary administration and veterinary diagnostics lab
- Cattle selection service and dairy lab
- Phytosanitary service and lab
- Inspection service
- Agency for organic food production
- Agency for rural infrastructure (rural roads, water supply, roads to katuns)
- Registration of farmers (enhancement of the existing service)
- Agricultural marketing information system (AMIS)
FORESTRY AND WOOD INDUSTRY
The following development projects are defined under forestry and wood industry:
• Establishing of Department for Strategic Planning and Monitoring within the Ministry;
• Establishing of Geographic- Information System in Montenegro forestry industry;
• National wood survey;
• National forestry policy and strategy for forestry development;
• Certification of woods according to FCS methodology and marketing in wood industry;
• Monitoring of forests soundness (ICP Forests);
• Development of seed production and plantation stuff and establishing seeds centers and seeds-nursery
center in Kolašin;
• Development of competitiveness in wood industry (USAID project).
These programs should also create favorable conditions for increase of production, both of semi-final and
final products. One of the types is production of prefabricated wooden homes (so far carried out in the
Corporation «Jakić» from Pljevlja which is in bankruptcy now), and numerous original initiatives by private
entrepreneurs have been initiated.
With regard to collection and use of herbal and aromatic plants, mushrooms and forest fruits, the implementation of the following projects is possible:
o Establishing and defining collection centers, cooperatives, associations with defined primary processing concept - drying and packaging for further transport of these raw materials as semi-final
products. It is very important to organize training of persons in charge of collection to achieve better
collection quality (there is committed donor support of GTZ in this segment).
o Development of competitiveness in the sector and development of products marketing (also under
support of GTZ).
o Transformation of business entities operating in this area. It is necessary to privatize state companies that would together with already privatized entities and other small plants represent serious
organized production of these products.
Hunting tourism - Cooperation in this area plus attractive hunting grounds to organize foreign hunting
tourism. Investment in construction of nurseries for the production and raising of various types of game to
populate Montenegrin hunting grounds. Out of the present 28 hunting grounds in Montenegro, the majority have realistic assumptions for organization of foreign hunting tourism.
WATERS
Award of Concessions for Bottling Drinking Water - sources: "Rastovacka Vrela" (Municipality of Niksic),
"Vrela Svetigore" (Municipality of Kolasin), "Uganjska Vrela" (Municipality of Cetinje), and "Rezevica Rijeka"
(Municipality of Budva).
The needs and potentials of Montenegro have not been sufficiently covered and exploited so that new
investments are needed to valorize these significant resources. In addition to current water concessions,
new concessions are in preparation.
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COMMUNAL INFRASTRUCTURE
Realization of strategic plans and derived documents related to the waste water management, waste management at the national level, and water supply of the Montenegrin coastal municipalities and Cetinje will
require an investment of nearly € 1 billion over the next 25 years.
Individually, the master plans envisage the following dynamics of implementation:
1. Strategic Master Plan for waste management at the national level projects investments in the sector
of solid waste management in the amount of € 120 million. The first phase, to be completed by 2009,
projects the investment of € 53,490,000. Specific activities that must be carried out in this phase, in
all 21 Montenegrin municipalities, are the following:
• The construction of 8 regional landfills; the funds needed for their construction and first five
years of operation are € 23,520,000
• Sanitation of unregulated dumps and management of the operations of the existing ones until
they have been closed – necessary funds - € 7,500,840
• Establishment of the recycling system - € 8,686,000
• Treatment of created mud - € 1,659,000
• Finding the most appropriate solution for the hazardous waste management.
2. By the end of the Project Period (2028) of the Master Plan for removal and treatment of waste water
from the Montenegrin coast and the Municipality of Cetinje the investment in a total amount of
€ 280,800,000 has been planed, out of which € 27,700,000 are to be implemented during the first
phase (by 2008) in the following manner:
• Rehabilitation of pumping stations and existing outlets – planned investment of € 7,000,000
• Disconnection of short outlets – planned investment of € 1,900,000
• Construction of new collectors and pumping stations – planned investment of € 10,000,000
• Enlargement of sewerage network – planned investment of € 4,000,000
• Construction of new submarine outlets – planned investment of € 2,300,000
• Purchase of network cleaning equipment – planned investment of € 1,100,000
• Reconstruction of the existing network and examination works – planned investment of €
1,200,000.
Although the construction of waste water treatment plant is planned for phases 2 and 3, the municipalities
of this part of the Republic may, if they have all the necessary conditions for that, start the construction
at their convenience.
3. Strategic Master Plan for sewerage and waste water in the central and northern part of Montenegro
envisages the investment in the total amount of € 278,732,896 by 2029. Out of that amount, €
81,243,028 is to be implemented by 2009. According to the Plan, the existing sewerage networks in
larger towns will be connected to waste water treatment plants, so the waste water will be treated
before its discharge into the surface watercourses. In the short term, the implementation of Phase
1 will produce the maximum positive impact with the minimum of expenses. Water treatment
plants will be constructed in the way that will allow their enlargement in the future to provide for
the increased inflow. In accordance to the above-stated, most of the funds will be allocated to the
construction of waste water treatment plants, pumping stations, primary and secondary sewerage
networks, and the reconstruction of the existing ones.
TOURISM
Potential investors are offered:
- Good business and investment climate for investments, based on protection of investors rights
and stimulation of entrepreneurship.
- National treatment that enables foreign investor to have all rights and liabilities as domestic investor.
- Any form of investments from purchase of real estates, investments in projects, foundation of
companies, joint ventures etc.
Physical Plan of the special purposes area in the Coastline Management zone is currently in the parliamentary procedure and its adoption is expected during September 2006.
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The adoption of this Physical Plan opens numerous possibilities for investment. This Plan singles out seven
locations for which both a general concept and the elaboration on a detailed plan level have been developed,
thus making possible a swift investment. Naturally, the investments are possible only provided the full legal
procedure has been followed: resolution of property issues, obtaining of necessary permits and consents, development of project documentation, and finaly, building license. Obviously, the fact that these locations have
been singled out does not rule out the possibility of investment on other locations in the Coastline Management
zone, with the elaboration of selected localities as required by the law, and in accordance to the guidelines of
the Physical Plan for the special purposes area of the Coastline Management. Investmets are also possible in
some areas of the national parks, along the guidelines of the physical plans for special purpose ares of national
parks: „Lovćen”, „Durmitor”, „Biogradska gora”, and „Skadarsko jezero”, in accordance to the provisions of the Law
on Physical Planning and Spatial Management, and the Law on Construction of Structures.
Considering the process of privatization in tourism that is intensified and of great importance for its development, it is necessary to point to our particular interest for involvement of potential partners and investors
in this process through:
− Purchase of hotel and other tourist facilities and investing in them, and
− Adaptation and reconstruction of the current and building of new objects in accordance with the
Master plan and regional projects.
Nautical tourism offers enormous investment possibilities, considering the natural and man-made assets,
the advantages of the sea and lake shore, advantageous nautical position of the Montenegrin coast, the
continuously rising demand, and especially the commercial effects this type of tourism generates. Foreign
investors are invited to find and realize their interests through the revitalization and reconstruction of the
already existing facilities (or those the construction of which has been started, but not completed), and also
through the construction of completely new marinas.
The development of marinas is planned for nine locations, with a total capacity of about 2,150 berths, as follows: Bar (400-500 berths), Tivat (400-500), Liman-Ulcinj (250-300), Kotor (80-150), Bigova (100-150), Kumbor
(200-250), Cape Kobila (100-150), Buljarica (50-100), and Ada Bojana (20-50). In addition to that, there is a
plan to modernize and enlarge the Port of Budva, and also to develop small and miniature harbours and
jetties at numerous locations all along the Montenegrin coast.
Cooperation with partners is possible on the task of enlargement and modernization of Bar Marina, and
on the development and realization of projects for marinas in Tivat, Liman-Ulcinj, Kotor, Bigova, Kumbor,
Buljarica, and Ada Bojana.
Health tourism represents one of the favored selective types of tourism primarily because it enables
higher level of utilization of accommodation capacities throughout the year. Development documents of
Montenegro tourism foresee the following locations for health tourism centers: Igalo, Prčanj, Petrovac with
prospects of development in the zone of Solila and Ulcinj.
In order to valorize natural and all other significant resources for tourism development in mountain area and
reduce dependence from bathing tourism, development of mountain tourism imposes itself as one of the
priorities in overall development policy of the Republic. Further to this, Ministry of Tourism, in cooperation
with the International Institute for Tourism from Ljubljana - Slovenia initiated preparation of mountain tourism
development strategy that is in the final stage. The study defines numerous projects in which cooperation
can be established with interested domestic and foreign partners.
The study offers complementary analysis and status of tourist mountain centers on the level of the Republic
that includes assessment of natural potentials, infrastructure, natural resources, cultural sights, attractions,
general tourist offer, hotel capacities, market analysis, competition and target markets to which Montenegro
will concentrate its offer.
On the basis of inventory and evaluation of tourist offer, three macro spatial zones have been separated
(Bjelasica, Durmitor, Prokletije) and six micro spatial zones (Lovćen, Orjen, Rumija, Vučje, Kosanica, Veruša)
within which potential mountain centers (or municipalities that are the competent institutions for local tourMontenegro - Investment Challenge
49
ist offer) are defined - Kolašin, Andrijevica, Mojkovac, Bijelo Polje, Berane in the zone of Bjelasica, Žabljak,
Šavnik, Plužine in the zone of Durmitor, Plav and Rožaje in the zone of Prokletije, and recommendations for
their future development.
Using the principles of SWOT analysis this study addresses advantages, failures, potentials and threats that will
go along with tourism development. Development of mountain tourist centers at the level of the Republic
of Montenegro is seen in development of winter and summer tourism with ski-lifts, ski paths, households
offering home made food; hiking and alpinism, skiing, snow-board, classic skiing; organized walks, walking
paths, mountain biking; activities on the water - rafting, canoeing, sports activities in closed sports objects,
big events, organization of different competitions.
Special attention is paid to first implementation projects that need to be targeted towards improvement
of the current and construction of new transportation, utility, telecommunications and ski infrastructure,
human resources education, energy deficit, increase and improvement of accommodation capacities.
Numerous analyses show that, particularly for the Coast, tourism is the most significant area and that all other
activities need to be subordinated to increase of quality of Montenegro as tourist destination. Assumption
for acting in this direction is primarily seen in construction and revitalization of capacities in facilities of high
category and reduction of capacities in complementary facilities, primarily in recreation centers, summer
resorts and camps.
Regional development projects for the Bay of Kotor and Long Beach in Ulcinj, prepared by the German DEG,
represent excellent basis for elaboration of plenty of possibilities for the construction of hotels and other
facilities.
1. Project of Tourist Valorization of Ada Bojana in Ulcinj
Ministry of Tourism in cooperation with the Agency for Economic Restructuring and Foreign Investments
and the Municipality of Ulcinj prepared an Information Memorandum for Ada Bojana with terms of offer
for financing and construction of hotel tourist complex on this unique location of the area of 520 hectares,
with 2.750 m long beach.
Announcement of international public tender is being expected.
Interested investors will be offered the following investment models: joint venture, concession or B.O.T.
system.
2. Project of Development of High Quality Tourist Complex Long Beach in Ulcinj
Development of tourist complex Long Beach will provide the state with largest potential for economic
growth in tourism.
Master plan recommends the Long Beach as a model location for the development of high quality tourist
complex, because the area along this beach represents a unique spot on the eastern part of the Adriatic
coastline.
The Long Beach is 13 km long and 60 m wide and is the biggest and the most beautiful sand beach on
the eastern part of the Adriatic coast. It is covered by the finest sand and according to assessments it may
receive about 150,000 bathers.
The goal is to construct a settlement with about 30,000 hotel beds.
Regional concept of the Long Beach development is prepared in accordance with Master plan and it represents its detailed elaboration for this area.
We expect the prerequisites for the announcement of tender for strategic investors in this area to be met
very shortly.
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3. Project of Construction of Tourist Complex in Župa, in the Municipality of Tivat in Boka Kotorska
This project anticipates a multi-layer complex with total capacity of 1,800 beds. Total of four hotels are
planned to be constructed on this area.
Master plan recommended Boka Kotorska for development of tourism because the Bay of Kotor represents
the unique spot on the Mediterranean with regard to both landscape and cultural-historic places. Vicinity
of Dubrovnik facilitates both destinations in positioning as an extraordinary common tourist region.
Regional concept of the Bay of Kotor development is prepared in accordance with Master plan and it represents its detailed elaboration for this area.
4. Construction of Tourist Complex in the Bay of Buljarica
Construction of tourist complex "Virgin Bay" is foreseen in the Bay of Buljarice, 1km away from Petrovacon
the road to Bar. The location area is 350 hectares, and length of coastal zone is 2250m, which makes it the
longest beach on Budva riviera.
The vision behind this project is the construction of a high-quality tourism and recreation resort.
For the successful realization of the project it is necessary to establish cooperation between public and
private sector. The largest part of the above-mentioned “greenfield” location is privately owned. Currently
there are about 400 proprietors who formed the Association of Buljarica Proprietors to represent them in
the further development of this area.
Projected total capacity of the resort is 6,000 beds.
5. Development of Marina Kotor
In addition to the current facilities in Kotor on the location situated in the farthest southeastern part of the
Bay of Kotor this project foresees construction of five star marina with about 250 berths for vessels.
Preliminary design and Environment Study are prepared for the implementation of this project.
6. Tourist Valorization of the Island of Mamula in Herceg Novi
Extremely attractive tourist location on the very entrance in the Bay of Kotor meant for construction of
unique, historical high quality hotel for wealthy tourists.
Construction of about 10,000 beds, mostly in higher categories of accommodation is foreseen in the coastal
part of Herceg Novi (on locations Kobila, Njivice, Savina, Meljine, Zelenika, Kumbor, Baošići, Arza-MirišteŽanjice, Luštica).
7. Revitalization of Tourist Settlement ‘’Ostrvo cvijeća’’ (Island of Flowers) in Tivat
The plan for the municipality of Tivat foresees construction of new accommodation capacities on locations:
Pržno - Plavi horizonti, Župa and Bonići, revitalization of rural settlements and tourist settlements Ostrvo
cvijeća (Island of Flowers) and St. Marko, resulting in about 4,500 new accommodation units.
The Island of flowers with its surroundings represents great potential for water sports. The plan foresees
construction of new 1,500 beds in apartments on the Island.
8. Tourist Valorization of the Bay of Valdanos in Ulcinj
Valdanos Beach with its hinterland represents a real nature reserve of olives. Tourist settlement of bungalows,
placed in the olive grove and a restaurant are located In the background. It also has a campers' space.
The beach is 400 m long, with rocky parts on its ends positioned as in lines - a dream of fishermen, divers
and explorers of sea depths. The sea is clean, of dark green colour. Winds suitable for sailing are blowing in
the cove.
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Almost intact Mediterranean cove Valdanos that stretches on 2.5 km2 is planted with almost 18,000 olives
and represents the biggest preserved olive grove on the Mediterranean.
This highly attractive location on the very south is intended for construction of high quality tourist settlement.
The interested investors will be offered the following investment models: joint investment, concession, or
the BOT system.
9. Construction of Golf Course in Montenegro
Specialization of tourist products is the response to previous complex tourist demands. Classic offer is becoming insufficient to satisfy guests. Construction of golf-courses is a necessary element for development
of quality tourist offer. The location anticipated for construction of the golf-course is in the close vicinity of
Tivat airport.
Intensive activities for the selection of adequate locations and the development of strategic documentation
for them are in progress.
10. Construction of Aqua Parks in Montenegro
Development of this type of offer is one of necessary preconditions for increase of utilization of accommodation capacities and for increase of average consumption by tourists.
Intensive activities for the selection of adequate locations and the development of strategic documentation
for them are in progress.
INDUSTRY
Textile, leather and wood industries used to be good exporters in the past and they employed a great number of employees. Now the textile industry has poor operation, and wood industry is oriented to primary
production. These branches need support, particularly textile and final wood processing, through technical
assistance, or education and practical training.
The training should include all types of operation, from production to design and marketing. The objective
would be to achieve production of proper products in textile industry and achieve higher degree of finalization of products in wood industry, particularly furniture, which cannot be achieved without restructuring
and privatization of the existing companies.
TRANSPORT
a) The Port of Bar
New development projects in the Port are expansion and modernization of container terminal along
with initiating strategic cooperation on establishing regular shipping lines for transport of containers to
transshipment centers in the Mediterranean; foundation of distribution and production center in the Free
zone of the Port of Bar with the possibility of territorial expansion in depth of Bar plain; reconstruction and
revitalization of cranes; purchase of new machines; reconstruction of refrigerating warehouse; opening of
new space for development of liquid freights; adding new shores, construction of new silo for grains and
wood terminal, etc.
b) Marina
Taking into account the fact that nautical tourism is one of the most profitable industries and Marina Bar
one of the biggest marina in this part of the Adriatic, great development opportunity is seen in completion of adjoining facilities with innovation of the current project of marina with respect to complementing
52
contents and offer. Accordingly, the Government of Montenegro has included marina Bar in the group of
companies for privatization through model of involvement of strategic partner. Further to this, it is necessary
to prepare the program for development of Marina Bar that would define long term development-investment activities.
The project of Nautical tourist center Kotor within the Port of Kotor is based on the idea to build a five star
marina, in addition to the present built facilities, on the location in the farthest southeastern part of the
Bay of Kotor, on the shore and sea. On the basis of the initial standpoint were established contents and
capacities of the marina part that encompass the space of 2 hectares of land area and about 5 hectares of
sea aquatorium. The plan is, inter alia, to have about 250 berths for vessels and a quay for larger tourist ship
up to 70m.
c) Shipyard
Adriatic Shipyard, with its export program of over USD 15 million per year gives substantial contribution to
reduction of Montenegro balance deficit. Needless to say how necessary is to maintain and strengthen its
competitive position to keep regular operations for foreign markets along with simultaneous carrying out
of the company restructuring.
Taking into account that the Shipyard operates in conditions of strong competition and in order to increase
capacities and better positioning on the market, opening of investments for interested foreign partners will
be provided within the company restructuring program.
d) Shipping Companies
Revitalization of shipping industry - partners and investors for foundation of shipping companies are
sought.
e) Road and Railway Infrastructure
Development projects within road infrastructure are divided into two programs: development projects
within construction of state roads and development projects within reconstruction and modernization of
regional roads and highways. Analyses of previous situation and forecasts of future development of road
transport point to the possibility for increase of traffic and faster growth of transport demanding construction of new roads of higher technical standards and reconstruction and modernization of the current road
network. The planned road network will in a quality manner connect Montenegrin cities and settlements
and regions. This also enables attraction and utilization of all potentials of the Republic and better flow of
people, goods and capital. Additionally, improvement and additional construction of road system must
significantly contribute to improvement of transportation safety and reduction of damages.
Construction of highway Podgorica - Mateševo has multiple importance:
a.) It represents one of the most significant parts on the future highway Bar - Belgrade that represents the
main road for integration of Montenegrin transport area with the European and b.) It connects the central
part of Montenegro and Podgorica with the North of Montenegro creating assumptions for faster development of north and at the same time reducing traffic through Platije that, both in safety and frequency
terms, represents a bottle neck on road network of Montenegro.
Adriatic - Ionic corridor together with highway Bar - Belgrade represents the biggest integration opportunity
of Montenegro. Adriatic -Ionic road direction within the South-Eastern Europe opens new possibilities for
mutual communications, mutual permeation and development of this significant part of the region.
As transport artery of the Adriatic region this highway will have impact on development of large part of
the region, all economic activities, particularly tourism, integral transport and specialization of Adriatic and
Ionic ports.
Modernization and reconstruction of the road Božaj- Podgorica-Šćepan polje, on the route Tirana-Podgorica
-Sarajevo
Highway Risan - Grahovo - Žabljak has developmental importance both for the area of Herceg Novi riv-iera
and Boka Bay and for tourist development of Žabljak and the region of National parkDurmitor. At the same
time it creates economic assumptions for development of areas it goes through. Highway Podgorica - Plav
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represents a precondition for development of the least developed area of Montenegro. Municipality of Plav
with Gusinje and Municipality of Berane would get shorter and more quality connection with Podgorica
which is a precondition for their development, primarily tourism and agriculture as our strategic economic
sectors.
Belt highway Bijelo Polje represents in all terms one of the largest bottle necks on the road direction Bar
- Belgrade. This project was nominated for financial support with EIB and EBRD but so far has not gained
final support.
Implementation of development program within the reconstruction and modernization of regional roads
and highways results in greater standard of safety and security on our roads, improvement of traveling
standard, reduction of damages on vehicles and reduction of time of traveling between certain places.
Reconstruction of the road on the route Mioska-Crkvine - this section is located on the highway PodgoricaKolašin and represents black spot whose reconstruction is necessary for transport safety. Reconstruction of
site Obzovica - The site of Obzovica is located on the highway Cetinje-Budva, which represents a section of
the most important transport artery through Montenegro. Program of modernization and reconstruction of
the southern part of Montenegro that was financed with funds of the European Agency for Reconstruction
also anticipated reconstruction of this site identified as a transportation bottle neck. However, due to lack of
funds, it has not been implemented and it represents a significant chain in quality connection of highways
in southern part of Montenegro.
Development projects within the railway encompass three railroad directions Vrbnica - Bar, Nikšić -Podgorica
and Podgorica - Skadar. A part of railroad Belgrade-Bar that passes through Montenegro is of vital importance for the economy of the Republic of Montenegro. It represents a uniform system with the Port of Bar.
In passenger terms it represents the most significant type of transport by which tourists arrive Montenegro
and in freight terms link of Montenegro economy with Serbia and countries of central Europe.
Total length of railroad network in Montenegro is 250 km, and with station tracks about 330 km. Railroad
Vrbnica-Bar, 169 km long, fully electrified and started operating in 1976. In transportation terms it has the
largest economic importance and from the maintenance stand it represents the most expensive railroad in
Europe. There are 107 bridges on this railroad, 106 tunnels, 9 galleries, 371 drains, large number of unstable
slopes and land-slide sites, large number of curves of minimum permitted curve radius ( R=300 m.) under
maximum permitted inclination ( max=25‰) etc.
Railroad Nikšić-Podgorica, 56 km long, started operating in 1948 as a railroad of narrow track to be reconstructed in normal track railroad in 1965. Railroad Nikšić - Podgorica links two largest cities in Montenegro.
For now, it has the largest importance in cargo transport primarily for needs of KAP (Aluminium Plant),
Bauxite Mine, Steel Plant and Brewery.
Railroad Podgorica - Skadar (state border with Albania) is 25 km long. It is not electrified and started operating in 1986. After years-long break, since 2002 only cargo transport is being carried out on it.
With regard to technical characteristics it represents the best railroad on the railway network. Increase of
cargo transport is obvious and establishing of passenger transportation is also foreseen.
Development of these projects create assumptions for necessary renewal of motor pool, primarily for their
safety-security condition and quality of services in railroad transportation while railroad transportation is
given preference compared to road transport as cheaper way of transport.
ELECTRICITY AND ENERGY SECTOR
The short review of the electricity and energy situation in Montenegro is as follows. There are three large
power plants in EES:
1. Hydro Power Plant Perucica, with installed power of 307MW and average annual output of 890 GWh.
Operates since 1960 (has seven generators, of which the last was first put into operation in 1977).
2. HPP Piva, with installed power of 342MW and average annual output of 762 GWh. Operates since
1976.
3. Thermal Power Plan Pljevlja, with installed power of 210 MW and average annual output of 922GWh.
Operates since 1982.
4. Seven smaller plants, with aggregate installed power of 9 MW and average annual output of 21,46
GWh. Al the power plants are very old.
54
Electric power system of Montenegro has a very developed transmission and distribution network. The total
length of transmission lines (400kV, 220kVand 110kV) is 1,200 km, with adequately posted inter-connection
lines (links to the neighbouring electric power systems). The length of the distribution network (35kV, 10kV,
0.4kV) is about 20,000 km.
Montenegro lacks electricity at the annual level. In 2004, the deficit was 1.584 GWh. This year the electric
power balance was made with the projected deficit of 1.600 GWh.
On the other hand, Montenegro has enormous unused hydropower potential. The estimated gross hydropower potential is 9,900 GWh/year, while the used potential is only 1,800 GWh/year (17.9%), and the
remaining technical possible usable potential is about 4,600 GWh/year. If the water would be transferred
from Tara River into Moraca, the technically usable potential would amount to about 5,300 GWh/year. The
technically usable potential of small waterways is about 1000 GWh/year. The Electric Power Company of
Montenegro prepared the technical documents about many electric power plants in order to use the potential to the highest possible extent:
1. HPP Kostanica, 552MW, output 1254GWh/yr. Construction period from 5 to 6 years. Value of the
project is about USD 330 million.
2. HPPs on Moraca River:
a) HPP Andrijevo, 2x63MW (3x63MW)1, output 319GWh/yr (513GWh/yr). Construction period
from 5 to 6 years. Project value about USD 210 million.
b) HPP Raslovići, 2x18.5MW (3x18.5MW)1, output 107GWh/yr (159GWh/yr). Construction period
c) HPP Milunovići, 2x18.5MW (3x18.5MW)1, output 117GWh/yr (173GWh/yr). Construction period from 5 to 6 years. Project value about USD 79 million.
d) HPP Zlatica, 2x18.5MW (3x18.5MW)1, output 151GWh/yr (210GWh/yr). Construction period
3. HPP Komarnica, 168MW, output 231GWh/yr. Construction period from 5 to 6 years. Project value
about USD 114 million.
4. Hydropower potential of the water systems of the main rivers was studied well on the level of a
study in the period from 1980 do 1986 (about 70 mini power plants of individual capacity of up to
10MW, and total installed power of 231MW with the annual output of around 640 GWh).
Of the projected mini power plants, from the aspect of preparation and acceptability, the following may be of interest for construction:
a) MPP Otilovići, 3 MW, output 11,5GWh, total investment EUR 2.4 million, con
struction period 2 years.
b) MPP Slano, 4.7MW, output 6,4GWh, total investment EUR4.69 million, construc
tion period 2 years. With conversion of the waters, the output would greatly in
crease to 11,6GWh, with the same investment.
c) MPP Bistrica, 4.12 MW, output 27GWh, investment funds not defined.
Construction period 2 years.
d) MPP Dosova Rijeka, MPP Savnik, MPP Gornja Trepca etc. No detailed documen
tation for these plants.
e) MPP Krupac, 0.8 MW , output 2.95 GWh, total investment EUR 1.89 million, construction period 2 years.
Montenegro also has vast ore resources. In the Pljevlja basin there are reserves of about 205 million tons of
lignite coal, with exploitation reserves of about 175 million tons. In the Berane basin, there are also significant
reserves of brown coal. The balance reserves are estimated at about 30 million tons and the exploitation
reserves at about 17 million tons.
In that regard, the construction of another block of the thermal power plan in Pljevlja, with the power of
210 MW, and average annual output of 1100 GWh is being considered. Just as the possible construction of
the thermal power plant Berane. Montenegro can use alternative energy sources: sun wind biomass More
detailed studies of these energy sources have note been prepared.
1 With transfer of water from Tara to Moraca
55
RELEVANT LEGISLATION
PRINCIPLES OF FOREIGN INVESTMENTS IN MONTENEGRO
Compliance of Montenegrin Business Legislation with EU Legislation
•
•
•
•
•
•
•
•
•
•
The country is committed to an open market economy and has made significant progress in the devel
opment of appropriate commercial and other legislation which is in compliance with regulations in
market economy countries and primarily the EU legislation to a pretty high extent.
The starting points in the development of business legislation are the single economic area and single
market, and conducting business base on market laws.
Property is guaranteed.
None can be deprived of one's property, nor such property may be limited, unless it has been required
by a public interest, in accordance with the law - subject to the compensation that may not be lower
than market one.
A foreign person acquires the ownership title, including title to land, as well right to conduct business,
under the reciprocity terms, in accordance with the law.
The freedom of work and making business is guaranteed.
Legal entities are independent and equal.
Business terms and conditions are equal for all.
Companies and other forms or organization may be set up, organized and integrated freely and independently in accordance with the law.
Any law or action creating or encouraging a monopolistic position or restricting the market in any way,
are in violation to the constitution.
AREAS AVAILAIBLE FOR FOREIGN INVESTNETMS
Foreign investors may invest, for doing business in Montenegro, in companies and other legal forms, set
up companies and make other investments, in accordance with the law on foreign investments and other
laws.
Who is Treated as Foreign Investor?
A foreign investor is a legal person with the head office in foreign country, a foreign natural person and a
Montenegrin citizen with the place of residence in a foreign country longer than one year, a company established by a foreign person in Montenegro and a company with more than 25% foreign capital.
What a Foreign Investor May Contribute?
A foreign investor may contribute money, services, property title and securities. The contribution of a domestic person, on the occasion of foreign investments, may be in money, things, services, property title
and securities. The things, services and titles mentioned before must be expressed in money. The rights of
a foreign investor are guaranteed by law. The foreign investor has the following rights related to his/her
investment:
1) to manage or participate in management of the company;
2) to assign rights and obligations from the investment contract or incorporation charter to other foreign
or domestic persons;
3) to recover individual invested things, in accordance with the investment contract or incorporation
charter;
4) to recover investment or balance of funds invested in a company in case of termination or expiration of
investment contract or charter or decision on incorporation or cease of operations of the company;
5) to acquire a part of net asses and recover interest or assets after the company has been closed if investment was made in setting up that company;
6) to exercise other rights under the law on foreign investments and other laws;
7) to participate in distribution of profit and transfer or reinvest the profit freely, including conversion of
currency;
8) A foreign investor may protect his/her inventions, trademark, models and samples, and copyright, in
accordance with the law;
9) A foreign investor may employee domestic and foreign natural persons and hire natural and legal per
sons for carrying out of his business, in compliance with the law (Employees with a foreign investor have
the rights and obligations determined by the law, collective agreement and ILO conventions and other in
59
ternational standards. Mutual rights and obligations of employees and foreign investor-employer are laid
down in the employment contract in accordance with the law and regulations under previous paragraph.
If the employment contract gives less rights or less favourable rights than those determined in the law,
the provisions of the law and collective agreement shall apply). The position of domestic and foreign legal
persons is equal with respect to legal and business relationships. If a legal relationship is to be established
with a foreign person, the provisions of the Law on Conditions for Employment with a Foreign Citizen shall
apply. If a foreign person is the owner of a company or has a majority interest in the company manage
ment, and employees citizens of Montenegro, such employer shall be subject to the same obligations as
employers - domestic persons.
Obligations of Foreign Investor
Foreign investor maintains business books, accounting and documentation in accordance with International
Accounting Standards.
Foreign investor must follow environmental regulations in the pursuit of his/her business in Montenegro.
Foreign investor must insure his/her investments in accordance with insurance legislation.
Treatment of Foreign Investor in Comparison to Domestic Investor
Foreign investor may establish a company or invest in a company in Montenegro in the manner and under
the terms provided to domestic persons, which means that foreign investors are granted a national treatment, i.e., the same regulations that apply to domestic investors shall also apply to foreign investors, and
not any other regulations that could restrict or constraint his/her business or rights.
Areas Available for Foreign Investments
A foreign investor may invest in a:
1) Business organization (joint-stock company, limited liability company, general partnership, limited partnership);
2) Contractual company;
3) Bank or other financial organization;
4) Cooperative;
5) Insurance organization and
6) Other forms of cooperation or joint venture as provided by the law.
Law on Business Organizations has introduced minor registration fees and has simplified the incorporation
procedure. Other changes in this law relate to more precisely defined rights of shareholders and protection
of minority shareholders. The rights and obligations of the founders are precisely specified and are more
flexible. According to the Law on Business Organizations business is conducted by entrepreneurs and business organizations:
• limited partnership
• general partnership
• joint-stock company limited
• liability company
• units of foreign companies
There are 24,174 active business entities in Montenegro of which 12,458 entrepreneurs and 11,716 business organizations. Since the implementation of the new Law on Business Organizations, the number of
registered business entities increased for 55%.
Business registration is considerably simplified: registration procedure takes up to 4 days, initial capital for
limited liability company is 1 euro, incorporation expenses are 10 euros, and number of documents required
for registration - 4. With regard to the registration procedure, Montenegro has become the leading country
in the region (graph 1). However, administrative barriers on the level of local administration referring to usage license remain to be a problem.
60
Graph 1: Time and Expenses Required for Business Registration in the Region Business Entry
Source: OECD, Enterprise Performance Policy Assessment Report, 2003
Table No. 6. Business Statistics in Montenegro (2004)
BUSINESS STATISTICS IN MONTENEGRO
Joint -Stock Company
Limited Liability Company
Partnership
Self-employed
Companies with foreign interest
Other
TOTAL
Tax fees:
Vat
Profit Tax Rate:
Income Tax:
Up to 785 Euros
785-2.615 Euros
2.615-4.577 Euros
Over 4.577 Euros
Minimum wage
Average wage (May 2004)
378
10.573
622
13.152
272
1.117
26.114
17%
9%
0%
0% + 15% on the amount over 785
274 Euro + 19% on the income over 2.615 Euros
647 + 23%onhte income over 4.577 Euros
50 Euros
297,12 (net income, without taxes and contributions
-189,56 Euros)
Law on Insolvency offers a set of rules for resolution of a company in a regular, foreseeable and equitable
way. The law facilitates efficient closing of activities or business reorganization. It helps creditors to recover
their claims more efficiently; it helps owners to reorient to other businesses and the assets of the company
to get integrated in the business processes as soon as possible.
61
Law on Fiduciary Transfer of Title enables companies and individuals to offer various property in exchange
for a loan. Creditors will be able to secure previous loans by real estates and ensure their position and status
through central registry, under lower cost.This will encourage creditors to approve more loans. The Law
intends to promote «lending« as an instrument of business growth.
Law on Accounting introduces International Accounting Standards (IAS). This internationally recognized
system of accounting will enable tax officers to determine the amounts owed, potential investors will have
a valid base for examination of company financial statements and the companies will update information
in order to «screen« their financial situation.
Law on Value Added Tax (VAT) was adopted on April 1, 2003. According to this law, all legal entities earning more than 18,000 € per year must register themselves for the payment of this tax. It also introduced a
tax rate of 17 % on newly built flats (paid by investors).
Tax on Corporate Profit is paid at the proportional rate in the amount of 9 % of the tax base.
Tax on Personal Income is not paid if the annual earnings made are 785 €, and for categories exceeding
this amount the tax is from 15% to 23 %.
Law on Property Tax introduces flexible rates (by municipalities) ranging from 0.08% to 0.8% of the market
value of the property.
Law on Foreign Trade was adopted on April 21, 2004. It is fully reconciled with the requirements and principles of the World Trade Organization (WTO) and European Union. This Law provides for monitoring of flow
of goods and capital, open market economy and increasing liberalization of trade and services and equal
treatment of all participants in foreign trade. Opportunity for foreign trade business is given to all persons,
in accordance with their legal and business capacity. The old law that governed this matter and Decree on
Foreign Trade Transactions based on which this law was implemented were quite restrictive and included,
from the view of economic efficiency, unjustified requirements. The examples are mandatory reporting on
every foreign trade transaction to the Central Bank, obtaining of approvals for so-called special foreign trade
activities like compensation, re-export etc.The new Law repeals reporting of business and issue of approval
for carrying out of so-called special activities.
Customs Law complied with the requirements of the World Trade Organization (WTO) and European Union
was adopted on April 1, 2003. The law streamlines customs procedure i.e. export and import procedures
and introduces documentation similar to that used in the EU. The Law literally took over provisions under
the WTO agreement on custom evaluation and rules on goods origin. The Decree on implementation of
Customs Law and several more provisions of the Law elaborate details with attachments consisting of forms
of documentation that accompany goods. The law does not include provision on measures applied on border for protection of intellectual rights but includes basis for adoption of enabling act by the Government
that would govern this matter. However, the Government of Montenegro has passed a Decree on Customs
Authority procedures related to the goods for which there is a reasonable doubt that they establish an infraction of the intellectual property rights, and this Decree has become effective on July 1, 2005, in accordance
with the requirements of the TRIPS Agreement, WIPO, and EU.
Law on Free Zones was adopted in June 2004. According to this Law, free zones and free warehouses are
parts of the state territory enjoying customs exterritoriality. In customs terms, such zones are deemed to be
foreign country for domestic market and in any other terms they are a part of the state territory to which
they belong to. Free zones and warehouses are of great importance for foreign trade business in the world
and for transit activities. Free zones provide participants in international business with more flexible, efficient
and profitable operations. For that reason many free zones in the world have developed industry production and goods improvement activities. The goal of the proponent of the Law on Free Zones is optimal use
of domestic resources, primarily labor and infrastructure facilities through production for exports and offer
of domestic goods. Additionally, users of free zones usually use services of domestic companies out of the
zone.
Benefits for users of free zones and warehouses are exemption from customs and tax liabilities on production for exports. That is how they increase their competitiveness on third markets.
This Law was adopted with the objective to strengthen Montenegro economy through creation of favorable
conditions for foreign investments; to attract foreign capital, technology, adoption of foreign expert knowledge and experience and foreign managerial skills; to increase level of employment and level of foreign
trade exchange; to strengthen Montenegro position on the world market and in world economy.
62
Law on Roads (adopted in 2004) is conformed to EU legislation (adopted in 2004). It provides conditions
for private capital participation in road industry. It is possible to build or maintain roads based on awarded
BOT arrangements and concessions. This is a significant novelty compared to previous laws.
Law on Railway (adopted in 2004) creates conditions for other persons, save the Railway of Montenegro
AD to act as managers of railway infrastructure thus making more favorable conditions for foreign capital
investments. The new Law stipulates that infrastructure may be used by several carriers being an opportunity for better quality of services and reduction of operating costs and also an opportunity for domestic
and foreign investors to turn up as users of railway infrastructure.
63
CONTACT INSTITUTIONS
1. Government of the Republic of Montenegro
Prime Minister Milo Djukanovic
Tel. +381 81 242 530
Fax. +381 81 242 329
E-mail. [email protected]
Web site: www.vlada.cg.yu
Principal Advisor to PM Slavica Milačić
Tel. +381 81 242-842
+381 81 246-219
Fax. +381 81 242-842
5. Ministry of Agriculture, Water
Management and Forestry
Minister Milutin Simovic
Tel. +381 81 482 109
Fax. +381 81 234 306
+381 81 234 305
Deputy PM Branimir Gvozdenovic
Tel.. +381 81 242 281
Fax. +381 81 241 204
7. Ministry of Maritime Affairs and
Transportation
Tel.. +381 81 482 124
+381 81 234 179
Fax. +381 81 234 342
8. Ministry of Finance Minister Igor Lukšić
Tel. +381 81 242-835
Fax: +381 81 224-450
Web site: www.ministarstvo-finansija.vlada.cg.yu
9.Ministry of Foreign Economic Relations and
European Integrations
Minister Gordana Đurović
Tel.. +381 81 225 568
Fax. +381 81 225 591
10. Ministry of Labour and Social Welfare
Minister Slavoljub Stijepovic
Tel. +381 81 482 148
Fax. +381 81 234 256,
+381 81 482 449
+381 81 234 227
E-mail: [email protected]
12. Directorate for Development of Small and
Medium -Sized Enterprises
Director Zoran Vukcevic
Tel. +381 81 406-302,
+381 81 406-303
Fax: +381 81 406-326
Web site: www.nasme.cg.yu
14. MIPA- Montenegrin Investment Promotion
Agency
Director Petar Ivanović
Tel/fax: 081/202.910, 203.140, 203.141
Web site: www.mipa.cg.yu
11. Ministry of Environmental Protection
and Physical Planning
Minister Boro Vučinić
Tel: +381 81 482-121
Fax: +381 81 234-131
13. Agency Of Montenegro For Economic
Restructuring and Foreign Investments
Director Branko Vujović
Tel. 081 /242-640
Fax: 081 /245-756
4. Ministry of Economy Minister Predrag
Boskovic
Tel. +381 81 482 157
+381 81 234 012
Fax. +381 81 242 028
6. Ministry of Tourism Minister Predrag
Nenezic
Tel. +381 81 482 158
+381 81 482 333
Fax. +381 81 234 168
67
PRIVATIZATION PLAN FOR 2006
PRIVATIZATION PLAN FOR 2006
The main objectives of the privatization are to increase competitiveness and efficiency of operations of
companies in Montenegro, to provide incentives for foreign investment and entrepreneurship in all sectors,
and finally to increase employment level and improve the standard of living.
II METHODS AND MODES OF PRIVATIZATION
Privatization in 2006 will be based on methods and modes adapted to the requirements of free market.
1. Sale of shares and property on a public tender
1.1. the announced tenders for the sale of the following companies will be continued:
1.1.1. Pljevlja Thermal Power Plant, as a part of EPCG property, and Coal Mine Pljevlja
1.1.2. The Bank of Pljevlja
1.1.3. AD »Optel« Pljevlja;
1.1.4. Leather Industry »Polimka« Berane;
1.1.5. Rest, recreation and Therapy Center »Igalo« AD
1.1.6. AD »Montenegro Modern Shoes« Cetinje
1.1.7. MMK »Standard« AD Nikšić.
1.2. Based on the adopted decisions of the Privatization Council, the preparation of tender for the following companies will be continued:
1.1.1. UTIP »Crna Gora« AD Podgorica;
1.1.2. Tobacco Company - »Duvanski kombinat« AD Podgorica;
1.1.3. Adriatic Shipyard - »Jadransko brodogradilište« AD Bijela;
1.1.4. HTP »Boka« AD Herceg Novi;
1.1.5. »Crnagoraput« AD Podgorica;
1.1.6. Bank of Niksic - »Nikšićka banka« AD Nikšić;
1.1.7. »Montepranzo-bokaprodukt« AD Tivat;
1.1.8. AD »Jadran« Perast;
1.1.9. Ironworks - »Željezara Nikšić «AD Nikšić;
1.1.10. Grain Mill - AD Mlin „Muharem Asović“, Nikšić;
1.1.11. HTP »Budvanska rivijera« AD Budva – sale of property (hotels).
1.3. Privatization procedure will be initiated for the following companies:
1.3.1 Institute »Dr Simo Milošević« AD Igalo;
1.3.2. Insurance Company »Lovćen« AD Podgorica;
1.3.3. Electric Power Company – »Elektroprivreda Crne Gore« AD Nikšić – Small hydroelectric power
plants.
1.4. Privatization strategy will be prepared and privatization process initiated for the following companies:
1.1.1. Electric Power Company – »Elektoprivreda Crne Gore» AD Nikšić;
1.1.2. »Plantaže« AD Podgorica;
1.1.3. Port of Bar – »Luka Bar«, Bar;
1.1.4. Railways of Montenegro Podgorica;
1.1.5. Airports of Montenegro Podgorica;
1.1.6. Montenegro Airlines DOO Podgorica.
After the privatization strategy for the companies referred to in point 1.4 has been adopted, the Government
will consider the need for the adoption of a special law for the privatization of any of these companies.
Companies referred to in Annex 1, which is printed with this Decision as its integral part, will be privatized
through a public tender.
71
2. Sale of shares and property on a public auction
Sale of part of property or shares of a company will be carried out by public auction in accordance to the
owner’s decision.
The decision to sell property the value of which exceeds € 50,000 requires consent from the Privatization
Council, if the sale decision refers to a company in which the state or state funds are majority owners.
at auction, based on the owner’s preceding decision.
3. Sale of shares on a stock-exchange market
through sale on a stock exchange market, based on the owner’s preceding decision.
4. Sale of shares in capital market institutions
The sale of state-owned capital will be started in the Central Depository Agency and the Montenegro Stock
Exchange this year, as stated in Annex 3, which is printed with this Decision and is its integral part.
5. Privatization of companies in special purposes industry and forestry sector
Companies from the sectors of special purposes industry and forestry will be privatized according to the
methods to be determined by the responsible ministry upon the owner’s proposal.
6. Privatization of companies from communal services sector
An initiative will be started to amend the legislation regulating the privatization of economy, in order to
allow the privatization of these companies to be carried out more quickly.
7. Companies not included in the Plan
If a company was left out of this Plan, or if there is a need to alter the method or mode of privatization, the
Privatization Council will, upon proposal from the company’s authorized body or the owner, reconsider the
method and mode of privatization in accordance with the Law on Privatization.
III SOCIAL ASPECTS OF PRIVATIZATION
When companies are privatized on a public tender it is necessary to include the resolution of social issues
as one of the contract obligations
IV IMPROVEMENT OF LEGISLATION
Privatization Council will initiate the proposing of new legislation in the area of property and property rights,
in order to overcome numerous problems related to property, and especially the treatment of land in privatized companies. It is also necessary that the Real Estate Administration speeds up the review and updating
of Cadastre by entering the real rights within the transformed and privatized companies into its registry.
72
73
Montenegro INVESTMENT CHALLENGE
74

Brosura Crna Gora investicioni izazov BW 2006 ENG.indd

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