Montenegro to continue successful cooperation with EBRD in infrastructure, tourism, energy, finance, business

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• EBRD to support most important development areas such as SMEs, energy, tourism and infrastructure
• Regional economic integration and attracting FDI in the region most important
• EBRD will focus on diversifying Montenegro’s economy and boosting competitiveness, supporting less developed areas, and energy and regional cooperation

Podgorica, Montenegro (1 July 2013) – Montenegro will continue its cooperation with the European Bank for Reconstruction and Development (EBRD), by building on previous success in areas of infrastructure, tourism, energy, finance, and business and by boosting regional development cooperation, Prime Minister of Montenegro Milo Đukanović said at the press conference following his meeting with EBRD President Suma Chakrabarti.

Mr Chakrabarti stressed the EBRD believes that Montenegro has all the attributes to become the energy hub in the region in the medium to longer term. The two officials underlined the importance of regional development projects and announced a possible high-level regional investment conference in the near future.

Prime Minister Đukanović underlined Montenegro has a long history of cooperation with the EBRD, stretching all the way back to former Yugoslavia, and recalled a long list of successful projects in the areas of infrastructure, tourism, energy, and business. He welcomed the fact that over 45% of EBRD funds in Montenegro are now being used by the private sector.

Mr Đukanović noted that his Government and the EBRD share views on the prospects for future development of Montenegro, noting in particular the EBRD’s willingness to support the construction of the underwater energy transmission cable intended for export of energy to the EU, which he dubbed the most important energy project in the country. He noted the importance of EBRD’s support to ongoing tourism projects, such as the rebuilding of Sveti Stefan and the construction of a Hilton hotel in Podgorica, as well as many other projects.

Areas of future cooperation with EBRD will include ensuring favourable loans for small and medium-sized enterprises (SMEs), which are a long-term basis for the country’s economic growth, the Prime Minister underlined. He welcomed Mr Chakrabarti’s assurances that the EBRD is deeply committed to the area of Western Balkans and regional cooperation, welcoming the possibility of organising a conference devoted to the Bank’s commitment to economic and social development of the region.

Mr Chakrabarti highlighted that EBRD has a very successful cooperation in Montenegro, with well over EUR 400 million invested in the projects in the energy sector, property and tourism, financial sector, SMEs, and infrastructure. He noted EBRD’s job ahead in Montenegro is to work with companies and the public sector to foster development and an even more rapid transition to open market economy.

“I and my colleagues believe that building blocks are in some ways stronger in Montenegro than in many other countries in the region, the Government knows what it has to do, it started to take the reforms, and it clearly wants to do much more in this area as well,” EBRD President underlined.

Mr Chakrabarti noted he believes that Montenegro is making good progress in the EU accession process, adding this will help attract more FDI, and welcomed the Government actions aimed at improving the business environment in the country. “It has become much easier to start a business in this country and the access to credit has become easier than it used to be,” Mr Chakrabarti said.

He added that the EBRD believes the global economic recovery will come in the next two or three years and that their job is “to help Montenegro be as well placed to take advantages of that recovery as it can be, and that means thinking in the way the prime minister does – in a very regional way, EU approximation, regional economic integration, and attracting FDI back into the region,” and he noted the importance of the high-level regional investment conference that should hopefully take place in the next few months.

EBRD President noted that their work in Montenegro in the coming period will focus on three areas: Expanding the economic base, diversifying the economy and making it much more competitive; focus on the regions which are still underdeveloped and on the areas of previous success, such as sustainable tourism, property, and infrastructure; and energy security and integration on energy markets in the region.