Press release from 23rd Cabinet session

The Montenegrin Cabinet, at the 23rd session held on 6 May 2021, chaired by Prime Minister Zdravko Krivokapić, adopted the Draft Law on Ratification of the Agreement between Montenegro and the Principality of Monaco on Avoidance of Double Taxation and Prevention of Tax Evasion. The Agreement improves the tax environment for international business and investment and provides an efficient mechanism for resolving the problem of double taxation. Eliminating double taxation of income of residents of Montenegro and the Principality of Monaco, with the general application of the principle of equal tax treatment of natural and legal persons, provides fiscal and legal security and ensures the positive effect of tax incentives to stimulate investment.

The Decision on the publication of the Memorandum of Understanding between the Ministry of Education, Science, Culture and Sports of Montenegro and the Ministry of Foreign Affairs of Hungary on cooperation within the Stipendium Hungaricum programme for the period 2021-2023 was adopted. The Memorandum was assessed as extremely important for the improvement of cooperation in the field of education, primarily for the promotion of mobility in the field of higher education, because it is recognised as a priority in strategic documents, both at the national and EU level. The Hungary will award 30 scholarships annually to Montenegrin students to attend studies in Hungarian or a foreign language. The aim of this Memorandum is to facilitate the long-term expansion of cooperation between the participants, contributing to the development of a knowledge-based society, mutually beneficial cooperation in the field of higher education.

The Cabinet adopted a Decision on the amount of remuneration to the Secretary and Deputy Secretary of the National Council for the Fight against High-Level Corruption. The envisaged monthly remuneration for the work of the Secretary and Deputy Secretary of the Council amounts to 50 percent of the average gross salary in Montenegro in the previous year paid in net amount.

The Plan for the preparation of the summer tourist season for 2021 has been adopted. The plan includes activities that will be implemented by institutions at the state and local level until the beginning and during the season, as well as companies that are directly or indirectly involved in the preparation of the season. The plan contains clearly defined activities, stakeholders, deadlines and financial resources for their implementation. The implementation of certain activities started at the end of last year, in order to create preconditions for achieving the best possible results during the upcoming season. Special attention is paid to the promotion of Montenegro in significant emitting markets, from which tourist demand is expected in line with the recovery of tourism from the impact of the COVID-19 pandemic. The planned activities include, among other things, works on improving the infrastructure, improving the quality of services in tourism and related sectors, increasing the diversity of the tourist product, reducing the grey economy and encouraging the employment of local workforce.

The Cabinet adopted the Information on the initiation of proceedings against Montenegro by the Energy Community Secretariat No. ECS-15/21 regarding TPP Pljevlja and the rules of the EU Directive on limitation of emissions of certain pollutants into the air by large thermal plants. The Energy Community Secretariat has preliminary concluded that TPP Pljevlja, as the only large combustion plant operating in Montenegro, allegedly did not comply with the rules of Article 4 (4) of Directive 2001/80 / EC on the limitation of emissions of certain pollutants into the air by large thermal plants, and that TPP Pljevlja as a plant reached the limit of 20,000 working hours by the end of 2020, and did not cease to operate in accordance with the standards of the Directive, as required by the rules of the Energy Community. By sending the Introductory Letter, the Energy Community Secretariat initiated a preliminary procedure, the purpose of which was to give Montenegro the opportunity to comment on allegations of non-compliance with Energy Community rules within two months and to enable the Secretariat to see the full background of the case.

In order to achieve the most favourable outcome in this procedure, which must not lead to the shutdown of TPP Pljevlja, in terms of the need to maintain energy supply, it was concluded that Montenegrin Electric Enterprise (EPCG), as the operator of the Thermal Power Plant Pljevlja takes all legal action and provides all conditions in order to protect the rights of the state of Montenegro in the proceedings before the Energy Community. The Ministry of Capital Investments is in charge of monitoring and providing active support to EPCG in this procedure, and to jointly prepare a draft Response - statement to the Introductory Letter of the Energy Community Secretariat in the procedure before this body.

The Cabinet adopted the Information on the conclusion of the Memorandum of Understanding between the Ministry of Foreign Affairs of Montenegro and the Ministry of Foreign and European Affairs of the Republic of Croatia in the field of diplomatic training and accepted the text of the Memorandum. This document envisages, among other things, that the two sides will cooperate in the field of diplomatic training, organised by diplomatic academies, according to the principles of reciprocity and mutual benefits: exchange invitations to diplomatic staff to participate in professional development programmes of mutual interest, exchange invitations to relevant lecturers for participation in professional development programmes of mutual interest, organise joint professional development programmes of mutual interest, exchange information, experiences and trends of importance for the training of diplomats, etc.

The Annual Report on the Implementation of the Action Plan for the Implementation of the Programme for the Development of Alternative Dispute Resolution 2019–2021 was adopted. The strategic goal of the Programme is to improve the application of mediation and other alternative ways of resolving disputes as efficient, financially viable, sustainable and accessible ways of resolving disputes that provide efficient and timely protection of citizens and legal entities, efficiency of justice, improved access to justice and legal security. The programme envisages the implementation of 62 activities in a three-year period, of which 37 activities were to be implemented during 2020. In the reporting period, 24 activities were implemented, i.e. 64.86% of the total number of planned activities. Six activities, i.e. 16.21% of the total number of planned activities, were not implemented for objective reasons, while 7 activities or 18.91% were partially implemented. For the implementation of the planned activities in the reporting period, it is planned to spend EUR 183,330.00, of which EUR 62,078.00 euros were spent in 2020. The Centre for Mediation, i.e. the Centre for Alternative Dispute Resolution, in charge of the majority of activities, implemented a certain part of the planned activities with the support of international organisations and with the support of the Judicial Training Centre and the State Prosecutor's Office, which ultimately contributed to spending significantly less than planned.

The Cabinet adopted the Information on the termination of the Build-Operate-Transfer (BOT) Agreement on the road Meljine-Petijevići, No. Ov-II-8/2007 dated 10 January 2007 and accepted the Draft Termination Agreement. Since this road, after reconstruction, was legally re-categorized as a state highway, and that the development, construction, reconstruction, maintenance, use and management of state roads are performed by an administrative body, not a local self-government body, it was necessary to regulate relations between the Government and rights and obligations of the Municipality of Herceg Novi with the existing concessionaire, in order to achieve early termination of the concession arrangement. On that occasion, the Ministry of Finance and Social Welfare is in charge of providing funds in the amount of four million euros in the Law on Budget for 2022 for the payment of obligations under the Agreement on Termination of the Build-Operate-Transfer (BOT) Agreement on the Meljine-Petijevići road.

It was emphasised that in this way the payment of tolls will be abolished and people will be able to move easier and faster, especially having in mind that this is the only section of the main road in the region that is charged.