Press release from 26th Cabinet session

The Montenegrin Cabinet held its 26th session today, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Draft Law on Amendments to the Law on Free Legal Aid. The enactment of this law represents a key priority of the Montenegrin Government within the negotiation Chapter 23 as part of Montenegro's accession process to the European Union. The proposed amendments aim to address practical challenges observed in the implementation of the current legislation and facilitate access to free legal aid, particularly for vulnerable groups such as victims of torture, children victims of crimes against sexual freedom, and children involved in proceedings for the protection of children's rights. These amendments are aligned with the recommendations of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment and seek to harmonize Montenegro's legal framework with international standards in the field of children's rights, including recommendations from UNICEF regarding children's access to justice.

Furthermore, the Cabinet adopted a Decree on the Conditions for the Classification of Ports According to the Type of Maritime Traffic and Purpose. This decree ensures full compliance with existing legislative provisions, considering that the current decree dates back to 2011. The need for a new regulation was further emphasised in light of the initiative to establish an international maritime line between Budva and Dubrovnik.

The Cabinet adopted the Energy Efficiency Incentive Programme for households and accepted the Agreement text. Approval was also granted for the utilization of €8 million from the European Commission's direct budget support package to Montenegro to overcome the energy crisis, earmarked for implementing this Programme. Recognising the imperative to enhance building energy performance outlined in strategic documents such as the Energy Development Strategy until 2030, National Sustainable Development Strategy until 2030, and National Climate Change Strategy until 2030, the Cabinet highlighted the pressing need to improve air quality, particularly in northern and central regions, where residential heating contributes significantly to air pollution due to the combustion of solid fuels. The Programme aims to increase energy efficiency in household sectors, with a focus on improving urban air quality, especially in northern and central regions. The allocated budget for the Programme is €8.8 million, sourced from various funds, including €8 million from the Instrument for Pre-Accession Assistance (IPA III) via the European Commission's Budget Support Package for Montenegro to overcome the energy crisis, €300,000 from the Pljevlja municipality budget, and €500,000 from the Eco Fund.

Additionally, the Cabinet adopted the Economic Competitiveness Enhancement Programme for 2024 and tasked the Ministry of Economic Development with issuing a Public Call for participation in the Programme. The Programme envisages further measures to support economic development through financial and non-financial mechanisms, fostering the creation of value-added products and services that are innovative and competitive domestically and internationally. Recognising the pivotal role of micro, small, and medium-sized enterprises (MSMEs) in driving economic growth and development, the Cabinet emphasised their importance and orientation towards the European Union single market.

To implement the Economic Competitiveness Enhancement Programme for 2024, a budget allocation of €3 million has been made across four support lines: Improving production capacities (total of €2 million) Support for small investments (total of €500,000) Digitalization support (total of €300,000) Vouchers for women and youth in business (total of €200,000). According to data from MONSTAT, the number of business entities in Montenegro in 2023 stood at 54,094, representing an 18.4% increase compared to 2022.

The Cabinet adopted the Forestry Management Programme for the year 2024, underscoring the paramount importance of sustainable and multifunctional forest management, biodiversity conservation, and environmental quality improvement. With a budget allocation of €6,677,903.23 from Montenegro's budget for 2024, this comprehensive programme encompasses activities related to forest planning, protection, cultivation, utilization, construction and reconstruction of forest roads, non-wood forest product utilization, and management of special purpose hunting grounds.

Additionally, an Information on the Recognition of Foreign Educational Credentials obtained from educational institutions in the region has been adopted. The Ministry of Education, Science, and Innovation has been tasked with initiating cooperation agreements with the Republic of Serbia and Bosnia and Herzegovina to prevent potential abuses related to the illegal issuance of educational credentials for secondary and higher education obtained from public and private educational institutions. Furthermore, the Ministry of Education, Science, and Innovation will establish an inter-ministerial working group comprising representatives from various government bodies and stakeholders to propose a model for verifying foreign educational credentials obtained from public and private educational institutions in the region.

The Cabinet adopted the Information on the conclusion of the Agreement on the transfer of credit and grant funds to the Municipality of Kotor for the implementation of the Project for Water Supply and Wastewater Disposal on the Adriatic Coast - Phase V - Component 2, and accepted the text of the Agreement. Within the framework of the "Water Supply and Wastewater Disposal on the Adriatic Coast" project, two credit arrangements with KfW bank, concluded by the Government of Montenegro, are currently active. These agreements, from 2013 (€26 million) and 2015 (€28.8 million), are for financing Phase V and Phase V - Component 2 of the project. The beneficiaries of the credit funds are the municipalities of Tivat, Ulcinj, Herceg Novi, and Kotor. Out of the total amount of funds from the credit line for Phase V and V-2, €15.3 million remains unallocated. The municipalities of Kotor, Tivat, and Ulcinj have sought additional funds from the relevant ministries to complete ongoing projects. The Ministry of Finance, in accordance with the law, requested all municipalities to provide the necessary documentation for signing agreements on the transfer of credit and grant funds. Only the Municipality of Kotor submitted complete documentation. They will receive €5.45 million, of which €4.45 million are credit funds, and €1 million are grants. Considering the significant infrastructure project being implemented, a grace period of ten years has been approved. The fixed interest rate is 2% annually, and a fee of 0.25% annually is envisaged for unused funds.

The Cabinet adopted the Information on the implementation of the Solari 5000+ project for individuals and legal entities. Building on the success of the SOLARI 3000+ and SOLARI 500+ projects and high user interest, SOLARI 5000+ aims to further contribute to Montenegro's energy and climate goals and fulfill international commitments in this area. The project also aims to reduce energy poverty, a significant challenge for developing countries in times of global energy crises. Subsidies for end-users will amount to 20% of the total investment in purchasing and installing photovoltaic panels per user under the project, funded by the Environmental Protection Fund (Eco-fund) and the Electric Power Company of Montenegro (EPCG) at 10% each.

The Cabinet adopted the Information on the payment to the law firm Harrisons for the analysis of the Concession Agreement for detailed geological exploration and exploitation of polymetallic sulphide ore (Pb, Zn, Cu, FeS2, and other accompanying metal sulphides) in the exploration-exploitation area of the former "Brskovo" mine, approving an amount of €32,100 from the Current Budget Reserve for this purpose.

The use of funds from the Current Budget Reserve, amounting to €300,000, has been approved for the Judo Federation for the organisation of the Podgorica Senior European Cup.

The Cabinet adopted the Information on the use of lobbying services for the needs of the Government of Montenegro by the company Bipartizan Solution Inc. from Washington. In this regard, the Secretariat-General of the Government is tasked with providing the Information with attachments to the Special State Prosecutor's Office for further action.