PM Đukanović in interview: Montenegro to become energy exporter, new investment on the way

• Ongoing and planned tourist projects in Montenegro will attract investment of around 2.5 billion EUR and open 10,000 job

• Bar-Boljare high-way project is following the planned procedures required for selecting bidders an launching the project

• Montenegro plans to become an energy hub in the region by expanding its thermal and renewable power generation capacities

• Public finance in Montenegro is on the way to consolidation, public revenues are expected to grow and sovereign debt is being kept within the limits of last year’s projections

 
Podgorica, Montenegro (30 October 2013) – In his interview for the national radio RCG yesterday, Prime Minister Milo Đukanović spoke about new economic projects and investment in the country, future tourism development, energy production, and public finance in Montenegro.

Prime Minister Đukanović put a special emphasis on major tourism projects in Montenegro, such as the world-renowned brand Aman Resorts project in Sveti Stefan, and Porto Montenegro marina which turned Montenegro into a hotspot for yachting tourism. He mentioned the ongoing projects by the Swiss-Egyptian company Orascom at the Luštica peninsula, the new SOCAR-funded One & Only Resort in Kumbor in the Bay of Kotor, and the plans currently in the making for a new elite hotel-chain project in Montenegro. Mr Đukanović stressed that these projects have put Montenegro on the map as an elite tourist destination recognised globally. He noted that these projects mean around 2.5 billion EUR will be invested in Montenegro in the foreseeable future and more than 10,000 jobs will become available for Montenegrins.

Discussing the Bar-Boljare high-way project, PM Đukanović noted there is no slowing down in this endeavour, but that a number of administrative procedures are required following the agreement between Montenegro and China before a bidder is selected (noting the existing offers by Chinese CCCC and CBRC), culminating in a financing agreement with the Exim Bank of China worth over 800 million EUR. He noted he believed the project implementation would start very soon.

Prime Minister underlined that new production capacities of 220-300MW will be developed within the planned second block of the Pljevlja thermal-power plant in the north of Montenegro, noting this would cater to the needs of current power consumption and especially the aluminium industry as its main consumer. He explained that if everything develops as planned, Montenegro will be able to start exporting energy by 2017 through the new under-water sea cable connecting Montenegro and Italy and thus become a major energy player in the region by fully meeting EU standards of production and environmental concern in this area. As the Prime Minister underlined, several major offers for this project should be on the table in the following few days and Montenegro will choose the best bidder.

Mr Đukanović added that the process of expanding thermal-power production is fully compatible with Montenegro’s plans to build a number of hydro-power plants. He noted that several projects are underway and new tenders will soon be advertised for larger waterways of Morača and Komarnica. He also mentioned other projects for renewable energy sources, such as the plans for wind-power generators in Krnovo near Nikšić, expected to generate an outflow of around 100 million EUR.

PM Đukanović said he shares Montenegro’s Finance Minister’s optimism regarding the state of public finance in the country, noting that the Government expects to collect around 100 million EUR more in public revenue in comparison to 2012, adding that a previously expected budget reconstruction might therefore not be necessary. Given that we suffered a heavy blow in regards to KAP guarantees of over 100 million EUR, in spite of those guarantees being adopted in the Parliament, and that we still managed to maintain the budget and the level of debt planned last December, there is reason enough to be optimistic, the Prime Minister stated.