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Council for Privatisation and Capital Projects approves Proposal of Decision on Privatisation Plan for 2018

Council for Privatisation and Capital Projects approves Proposal of Decision on  Privatisation Plan for 2018
Published date: 28.02.2018 17:13 | Author: PR Service

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PR ServicePR Service

At today’s session, chaired by President of the Council and Prime Minister Duško Marković, Montenegro’s Council for Privatisation and Capital Projects approved the Proposal of the Decision on Privatisation Plan for 2018 and forwarded it to the Government for consideration and adoption.

The Proposal of the Decision on Privatisation Plan for 2018 sets out objectives and methods of privatisation, companies and capital for privatisation, terms and conditions for their implementation, as well as sites that are to be touristically valorised and social aspects of the privatisation processes.

The rationale of the Proposal of the Decision reads that the main objectives of the Montenegrin economic policy are achieving higher economic growth, job creation and employment, increasing investment and exports, and creating the basis for increased income and growth of the living standard, while increasing the competitiveness of the Montenegrin economy.

In this context, the basic objective of privatisation is to increase the competitiveness and efficiency of the functioning of companies, stimulation of foreign investment and entrepreneurship in all areas, increase of employment and improvement of living standard, the Proposal of the Decision reads.

It was stated that this year's proposal contains a narrowed list that only includes subjects that are wholly or mostly formally regulated, i.e., where there are no court cases or unresolved issues of restitution, as well as sites and companies for which there is interest of the investor.

The document foresees:
I. Preparation and implementation of public tenders for privatisation of the following companies:
1. Institute "Dr Simo Milošević" – AD Igalo (sale of shares and/or capital increase);
The subject of the public tender is 56,4806% of the Company's share capital, with the company's obligation to implement the investment programme and/or capital increase; and
2. HG "Budvanska Rivijera" – AD Budva (sale of shares after the restructuring);
The subject of the public tender is sale of 58.7334% of the share capital.

II. Tourist sites or companies to be valorised through the public-private partnership:
1. VTK "Mediteran" - Žabljak;
2. Kolašin 1600, Municipality of Kolašin
3. Ada Bojana, Municipality of Ulcinj – tourist valorisation of the site through the development, construction, financing and management of exclusive tourism complex and long-term lease of the island Ada;
4. Bay Masline – Bušat for cape Odrač, Municipality of Bar
5. Location between Njivice and Sutorina River mouth, Municipality of Herceg Novi;
6. Locality Donja Arza – Herceg Novi
7. Locality "Kabala for", Municipality of Herceg Novi
8. Project for tourist valorisation of the locality "Mrkovi - Bijela Stijena", Luštica, Municipality of Herceg Novi
9. Tourist complex Ecolodge Lovćen – National Park Lovćen, Cetinje
10. Ski Resort "Savin kuk", Municipality of Žabljak
11. Tourist valorisation of the sites covered by the Special Purpose Spatial Plan "Bjelasica and Komovi" – Cmiljača and Žarski, municipalities of Mojkovac and Bijelo Polje

III. According to the proposal of the Government of Montenegro, Fund for Pension and Disability Insurance Fund of Montenegro, Employment Agency of Montenegro and the Investment and Development Fund of Montenegro – the sale of following companies' shares through the stock exchange is envisaged:
1. AD Papir – Podgorica; sale of 23,9865% of the share capital
2. AD "Agrotransport" – Podgorica; sale of 52,4139% of the share capital
3. HTP "Berane" AD – Berane; sale of 15,3544% of the share capital
4. AD "Dekor" – Rožaje; sale of 22,5948% of the share capital
5. AD "Metal produkt" – Podgorica; sale of 8,3724% of the share capital
6. AD "Montenegroturist" – Budva; sale of 29,6706% of the share capital
7. "Crnagoracoop" AD – Danilovgrad; sale of 10,6294% of the share capital

Separate opinion of member of the Council Srđa Keković regarding the proposed privatisation of the Institute "Dr Simo Milošević" and HG "Budvanska rivijera" was recorded.

The Council forwarded to the Government for adoption the Report on the work of the Privatisation and Capital Projects for 2017, with the Report on the implementation of the Privatisation Plan for 2017 and the Report on the implementation of conclusions of the Privatization and Capital Projects for 2017.

The Council discussed and forwarded to the Government for adoption the Report on implemented investment and other activities under the lease and construction contract related to Luštica Development AD Tivat, Municipality of Tivat – project Luštica Bay for the period 2016 – 2017, which was submitted by the Ministry of Sustainable Development and Tourism. The document stated that the total amount of investment and other costs from 2010 to 31 December 2017, according to information received from Luštica Development AD Tivat, amounted to EUR 133,708,465, out of which EUR 20,220,543 was spent in 2016, while in 2017 EUR 40,612,695 was spent. The Report states that the project employs 53 project staff involved in the project management, out of which 62% are from Montenegro, and on the construction site, on average, about 529 workers were employed on a daily basis, mainly from Montenegro, while local residents from Radovići were engaged in the finishing works. The Report states that the company has begun the process of advertising jobs for the Chedi Hotel and Marina in the Luštica Bay complex and that about 250 new jobs are expected to be opened.

The Council discussed the Information on the activities related to the implementation of the contractual obligation to appoint an independent auditor – Controller, in accordance with the Contract on leaseof the HTP Complex Ulcinjska rivijera, Ulcinj and proposed to the Government to authorize Minister of Sustainable Development and Tourism Pavle Radulović to sign, on behalf of the Government of Montenegro as the Leaseholder, the Letter of Incorporation of PricewaterhouseCoopers with the Contract on Investor Control Services.

The Council has adopted the Decision on the Appointment of Tender Commission for Privatisation chaired by Minister of Economy Dragica Sekulić, the Decision on Appointment of Tender Commission for Valorisation of Tourist Locations chaired by Minister of Sustainable Development and Tourism Pavle Radulović, and the Decision on Appointment of Commission for Property Claims chaired by protector of property and legal interests of Montenegro Dragana Đuranović.