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Privatisation and Capital Projects Council passes 2019 draft privatisation plan

Published on: Feb 2, 2019 1:56 AM Author: PR Service
PR Service PR Service

Podgorica, Montenegro (1 February 2019) -- At its 15th session chaired by President of the Council, Prime Minister Duško Marković, the Privatisation and Capital Projects Council passed the Draft Decision on the Privatisation Plan for 2019 and forwarded it to the Government for adoption.

The Draft Decision, prepared on the basis of proposals of the competent bodies of state administration, state funds, as well as the Tender Commissions of the Council, set the goals of privatisation, manner and conditions and deadlines for their execution; methods of privatisation; list of companies with the number and ownership structure of shares proposed for privatisation; a list of sites proposed for tourism valorisation and the social aspect of privatisation.

With a view to achieving greater economic growth, job creation and employment, increasing investment and exports and creating the basis for higher income and growth of the living standards of the citizens, with the increase of the competitiveness of the Montenegrin economy, the following actions were proposed:

I. Continuation of the tender for the privatisation of the company
1. Institute for Physical Medicine, Rehabilitation and Rheumatology "Dr Simo Milošević" AD Igalo (sale of shares and/or recapitalisation)
The tender subject is 56.4806% of the share capital of the Company, with the obligation of the company to carry out the investment programme and/or recapitalisation

II. Preparation for launching public tenders for the privatisation of the following companies:
1. HG "Budvanska rivijera" AD Budva (sale of shares after restructuring)
The subject of the tender is the sale of 58.7334% of the capital
2. "Castello Montenegro" AD Pljevlja (sale of shares)
The subject of the tender is the sale of 86.8123% of the capital
3. "Institute of Black Metallurgy" AD Nikšić (sale of shares and/or recapitalisation)
The subject of the tender is the sale of 51,1159% of the capital

III. Valorisation of tourist sites or companies through a long-term lease model:
1. Uvala Masline, "Utjeha" for the cape of Odrač, Bušat, Bar
2. Locality between Njivice and the mouth of Sutorina, Herceg Novi
3. Locality "Donja Arzam" Herceg Novi
4. Locality "Kabala for," Herceg Novi
5. Project of tourist valorisation of the locality "Mrkovi - Bijela Stijena," Luštica, Herceg Novi
6. Project Tourist complex "Ecolodge" Lovćen, National park Lovćen, Cetinje
7. Ada Bojana - tourist valorisation of the site through the development, construction, financing and management of an exclusive tourist complex and long-term lease of the island of Ada, Ulcinj
8. Localities included in the Spatial Plan for Special Purposes "Bjelasica and Komovi" - Cmiljača and Žarski, municipalities of Mojkovac and Bijelo Polje

IV. Sale of shares on the stock exchange:
1. AD Papir Podgorica
2. AD "Agrotransport" - Podgorica
3. HTP "Berane" AD - Berane
4. AD "Dekor" - Rožaje
5. AD "Metal produkt" - Podgorica
6. AD "Montenegroturist" - Budva
7. "Crnagoracoop" AD - Danilovgrad
8. "Ibarmond" AD - Rožaje

The Council considered and proposed to the Government to adopt the Report on the work of the Privatisation and Capital Projects Report for 2018 with the Report on the Implementation of the Privatisation Plan for 2018 and the Report on the Implementation of the Conclusions of the Privatisation and Capital Projects Council for 2018. The reports state that the Council held five regular sessions last year and four electronic meetings, and that 82 conclusions were realised, that the realisation of four conclusions is in progress, and that three conclusions have not yet come to realisation.

The Council also discussed the Report on realised investment and other activities under the long-term lease and construction contract, which refers to the "Luštica Development" AD Tivat -  the Luštica Bay project for 2018, submitted by the Ministry of Sustainable Development and Tourism. The report submitted to the Government for adoption, reads, inter alia, that the Hotel Chedi was officially opened last year with 111 accommodation units, as well as part of the marina with its accompanying infrastructure and landscaping, that the completion of the handover of two villas and three houses in a row was completed, that the construction of 95 apartments, three villas and four houses in a row is underway, that  3 km of internal roads were built, and that the investor, in cooperation with the Municipality of Tivat, sponsored the reconstruction of part of the road along the Đuraševića coast.

According to the Luštica Development AD Tivat, the total amount of investment and other costs from 2010 to 30 November 2018 was EUR 181,237,464, of which EUR 47,528,999.003 was spent in 2018. Last year, the company allocated EUR 203,300 for socially responsible activities and sponsored projects in the fields of culture, health, sport, etc.

The Report on realised Investment and other activities under the long-term lease agreement of the locality "Lastavica" with the "Mamula" fortress for 2018 was reviewed at today's session indicating that the completion of preparatory works is expected by the end of March, and in the second quarter the start of construction works is expected, as well as the Report on realised investment in accordance with the Decision on granting long-term lease of land on the peninsula Luštica - Municipality of Herceg Novi for the period 16 December 2017 - 20 December 2018. Among other things, representatives of the project company informed the Coordination Team that the conceptual solution for the Montrose complex will be finalised after the New Year, and that the aim of the investor is to implement the procedure for the selection of the contractor for the project by next autumn.

The Council considered the Initiative for resolving the status of non-monetary stake of the Government of Montenegro in AD "Novi duvanski kombinat" Podgorica, submitted by the Ministry of Agriculture and Rural Development. The Government was proposed to withdraw the non-monetary stake that it had entered into the "Novi duvanski kombinat" AD Podgorica and to agree to cancel,  based on the return of the non-monetary stake,  4,486,326 shares of the "Novi duvanski kombinat" AD Podgorica, which are owned by the Government of Montenegro and proportionally decreases the share capital of the Company, and that the Government of Montenegro remains a shareholder in the "Novi duvanski kombinat AD - Podgorica" ​​with a total of 270,543 shares, with a nominal value of 1.00 euros, based on the monetary stake that it had entered into this company.

The Privatisation and Capital Projects Council proposed to the Government to approve the Decision of the Board of Directors of HG Budvanska rivijera AD - Budva on the selection of the model and initiation of the restructuring process of the Company.

The Council's session considered the Information on fulfillment of conditions for the return of the second bank guarantee to the Global Ports Holding, submitted by the Ministry of Transport and Maritime Affairs. The Government was suggested to note that the Global Ports Holding has invested 1,163,075.34 euros in the rehabilitation and reinforcement of the construction of the southern coast of Gata 1 and that the conditions were created for the second bank guarantee to be returned to this company.

The Council adopted the Information on the selection of the Adviser to the Tender Commission for Privatisation under the Invitation Letter for the selection of the Privatisation Advisor of the company "Castello Montenegro" AD - Pljevlja, with the Proposal of the contract on the provision of consulting services, and authorised President of the Privatisation Commission Dragica Sekulić to sign on behalf of the Council with the bidder "Iv Consulting" doo - Budva the Contract on providing consulting services to the Tender Commission for privatisation of the company "Castello Montenegro" AD - Pljevlja.

The Privatisation and Capital Projects Council got acquainted with the Information of the Ministry of Sustainable Development and Tourism No. 101-1965 / 6-2018 of 16 January 2019, which refers to the extension of the deadline for the completion of works on the A1 facility of the hotel complex "Crystal Riviera" in Petrovac. The deadline for the completion of works is 1 May 2019.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO


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