Press release of the 9th session of the Government of Montenegro

At today’s 9^th session chaired by MEc Aleksa Bečić, Deputy Prime Minister for Security, Internal Policy, European and Foreign Affairs, the Cabinet adopted the draft Law on Waste Management including the Report on Public discussion. Aimed at harmonization with the European Union legislation, particular focus in the development of the draft Law was on transposing provisions related to Extended Producer Responsibility Programme for the purpose of establishing an efficient and organized system of takeover, collection and processing of waste consisting of packaging, electrical and electronic equipment, batteries and accumulators, vehicles, tyres, single-use plastic products and plastic containing fishing gear. Extended responsibility implies that importers and producers in Montenegro have overall organizational and financial responsibility to manage the mentioned products once they become waste. The draft stipulates a ban on the use of lightweight plastic carrier bags, with wall thickness from 15 to 50 microns, at the point of sale of goods or products, which will take effect after the expiry of six months from the date of the Law enactment. The use of lightweight plastic carrier bags with wall thickness up to 15 microns is allowed, wheras for the use of bags with wall thickness of more than 50 microns, the seller will pay a fee. With the purpose of improving the communal waste management, it was proposed to establish an inspection at the State level, whose main task would be to perform control of the implementation of local plans for communal waste management. In addition, the establishment of adequate information system for the area of waste management is also envisaged, in order to obtain accurate data on the quantity of recycled specific fractions in waste. The most important provisions of the EU regulations on waste management were transposed in the draft Law, while the remaining provisions will be transposed via by-laws.

Decree on amendments to the Decree on ranks and wages of military and diplomatic representative, employees sent to work in international organizations and administrative and technical personnel was adopted. The amendments include calculation of fee for increased cost of living and work conditions in the receiving state, harmonized with the Decree on special allowance to the base wage, special cost compensation and other income during work in diplomatic-consular missions.   

The Cabinet adopted the Programme for Suppressing the Informal Economy in Montenegro for the period 2024 – 2026, with the Action Plan. The Programme includes existing and new measures for suppressing the informal economy and provides a set of controlling and incentive measures in order to perform a more efficient control and prevent informal economy on the one hand, and on the other hand, to facilitate operations in the economy. The programme and its operational objectives rest on the fundamental principles of equal treatment for all participants in the economic activity, by promoting advantages of formal operations and reduction of informal economy and its negative consequences. More specifically, operational objectives focus on the reduction of grey economy in the activities of registered companies and entrepreneurs, and also the registration of unregistered economic activities, or legalising them. The general objective of the Programme is to reduce the share of informal economy in the total economic activity, which is achieved through five operational objectives:

• Improvement of business environment by simplifying tax administration and reduction of taxes;
• Support to fair entrepreneurship and transition to formal economy;
• Transformation of unreported employment into formal employment, with greater focus on youth, women and green jobs;
• Improvement of electronic services of public administration, institutional framework and administrative capacities in reducing informal economy;
• Reduction of social acceptability of informal economy.

The Ministry of Finance will coordinate the Programme implementation.

The Cabinet adopted the Information on strengthening capacities of significance for pursuing the established foreign policy of Montenegro. The information states that, in addition to specific knowledge in the field of diplomacy, foreign policy and international relations important for understanding the context of foreign affairs service, particular emphasis should be given to strengthening crucial competences of diplomatic staff, which would include the implementation of at least three programmes: professional development of leaders, professional training of young diplomats and professional development of internal coach. In order to implement the above-stated, it is planned to sign an Agreement between the United Nations Development Programme (UNDP) and the Ministry of Foreign Affairs aimed at organizing special programmes for professional development of employees in the foreign affairs service, for which purpose it is planned to allocate the amount of 70,000 euros from the current budget. In regard to that, the Cabinet adopted the draft Agreement on financing between the United Nations Development Programme and the Ministry of Foreign Affairs.

The Cabinet was informed about the Analysis of business operations of the company “Plodovi Crne Gore” AD with proposal of measures. With regard to a very specific financial situation in this company, the Cabinet assigned the Ministry of Agriculture, Forestry and Water Management to have additional consultations with the representatives of institutions involved in its operations in order to resolve open issues and inform the Cabinet thereof.

The Cabinet gave consent for leasing out immovable property owned by Montenegro, for a period of 25 years, recorded in the title deed no. 323 CM Mrke, Podgorica the Capital City for the construction of petrol station with ancillary facilities. It implies putting the land into designated use in compliance with the Detailed Spatial Plan for the Bar – Boljare Highway, which plans the construction of two petrol stations with rest areas on the above-mentioned land lots, with the purpose of valorisation of subject locations, in order to provide additional services to the highway users. To that end, the Managing Director of Monteput was assigned to form a Commission to carry out the procedure of leasing out the stated immovable property via open competition.  

The Cabinet adopted the Information on implementation of Agreement on border crossings with the neighbouring states, including the Minutes of meeting of the 11^th session of the Joint Commission for monitoring the implementation of agreement between the Government of Montenegro and the Minister’s Council of Bosnia and Herzegovina on border crossings for international and border traffic. The implementation of Agreement on state border, border crossings and border traffic with the neighbouring countries leads to improvement of good neighbouring relations, region stability and improvement of partnership by sending a message that countries of the Western Balkans can resolve bilateral border issues independently. During discussion, it was highlighted that the implementation of signed agreements leads to traffic infrastructure enhancement, improvement of residents’ movement, goods turnover and simplification of border procedures between Montenegro and neighbouring countries.

The Cabinet adopted the Information on implementation of the Contract on concession for research and exploitation of mineral raw materials. The Information outlines that the interdepartmental work group formed by the Ministry of Capital Investments concluded that certain concessionaires do not follow the agreed dynamics of the execution of concession due to delay in State authorities’ actions. With the purpose to overcome the existing problems, the Cabinet adopted the requests of concessionaires: d.o.o. “Braća Magud“ Grbalj (deposit “Krivošije“ Kotor), d.o.o. “Milcom“ Nikšić (deposit “Ledenice“ Kotor), doo “Sampetrol“ Tivat (deposit “Stupne“ Kotor), d.o.o. “Trojan“ Bar (deposit “Velja Gorana“ Bar), Coal Mine “Rudnik uglja” A.D. Pljevlja (deposit “Glisnica“ Pljevlja) due to circumstances for which they are not responsible and could not be foreseen, to delay the deadlines for obtaining work permit until the circumstances related to each individual contract have been resolved, and also to delay the deadlines for the commencement of concession fee payment until the issuance of work permit.

The Cabinet adopted the Information on entering into Project Agreement concerning the project “Digital Transformation Support in Montenegro” and accepted the draft of the Project Agreement. The document states that the goal of this project is to increase the security, responsibility, transparency, inclusiveness, efficiency and effectiveness of public administration, through support in the development of e-administration services. Therefore, it is expected that evaluation of the needs/ priorities for introducing e-administration and services for all units in the local self-government in Montenegro will be properly conducted and that Feasibility Study for the construction of the State Data Centre and Disaster Recovery Centre will be finalized. Total planned budget for the “Digital Transformation Support in Montenegro” project amounts to 300,000 euros and will be paid in two tranches: first, in the amount of 200,000 euros, immediately upon the signing of the Project Agreement, and the second in the amount of 100,000 euros, in the first quarter of 2024. The Ministry of Public Administration is assigned to pay the amount of 200,000 euros to the United Nations Office for Project Services (UNOPS) by the end of 2023.

The Cabinet adopted the Information on financing the High Religious School Gymnasium “Sveti Sava” Podgorica and approved the text of Financing Agreement between the Ministry of Education, Science and Innovations and High Religious School Gymnasium “Sveti Sava” Podgorica. In that regard, the Ministry was assigned to pay the amount of 900,000 euros for 2023 for the Agreement implementation. The mentioned funds are necessary for the work of the institution and are envisaged in the Law on the Budget for this year.

The Government adopted the Information on the reimbursement of contributions from the Union Programme within IPA III. The contribution payment liability is met on a yearly basis in the amounts predefined in the agreements. Concerning reimbursement of part of the paid contributions, the Directorate for structural management of the EU pre-accession assistance within the Ministry of Finance is the competent authority, as an authority responsible for financial management of IPA programmes under indirect management system. Within a seven-year period 2021 – 2027, IPA III perspectives bring certain changes concerning the refund of paid yearly contributions by introducing the procedure of entering the agreement with an authority at the State administration level. That agreement will represent the base for sending requests for refund of part of paid annual contributions. The Annex to the Agreement will include the list of all Union Programmes in which a certain authority of the Montenegro State administration participates or plans to participate during the IPA III financial perspective. 

The Cabinet also adopted proposals for amendments to the Draft Law on the Budget of Montenegro for 2024 and the Proposal for the Law on Amendments to the Law on Games of Chance.

The Cabinet adopted the Information on the need to amend the Law on Arbitration. During discussion, it was stated that the Law was enacted more than eight years ago, that no amendments were made, and that the importance of disputes resolved in the arbitration procedure, as well as the social environment in which the Law is implemented, imposed a need for its amendments, particulary in part related to more detailed laying down the rules concerning arbitration procedure, including the recognition of all competences and processing options of the Arbitration Tribunal related to resolving such disputes. In that regard, the Ministry of Justice was assigned to form a working group that will promptly prepare and submit the Cabinet a proposal for amendments to the Law on Arbitration. The invitation to participate in the working group was also sent to representatives of all relevant institutions that might contribute to the improvement of this legal solution, as well as non-government organizations and interested public.

The Cabinet adopted the Information about providing assistance for the implementation of public calls under the IPARD II programme. In that regard, the Ministry of Agriculture, Forestry and Water Management was assigned to initiate the signing of contracts for grant support with the beneficiaries of the Fifth Public Call through Measure 1 IPARD II Programme.

The Cabinet adopted the Information on annulment of the Conclusion of the Government of Montenegro, no. 07-500/23-4792/2, dated 25 October 2023, concerning the Private Healthcare Institution (PHI) Hipokrat offer to the Ministry of Health and Ministry of Finance for the sale of its entire business operations to the State of Montenegro. During discussion, it was concluded that the PHI Hipokrat’s offer is not in conformity with the current priorities of the healthcare system, given that the operations of the PHI Hipokrat are mainly related to providing services of the magnetic resonance imaging, and that the Ministry of Health initiated the procedure for procurement of the MRI machine for general hospitals in Bijelo Polje, Nikšić and Bar, while for the Medical Centre Berane it has been already furnished.

The Decree amending the Decree on the criteria for determining the amount of lifelong monthly payments, scholarships, premiums, sports disability allowance, athlete of the year award and deserving sports worker award was adopted. The Decree was amended in order to create equal position for all athletes. During discussion, it was stated that the Decree laid down the amount of lifelong monthly allowance for athlete who was the elected athlete of the year referred to in Article 77 of the Law on Sports or selected by the Sports Journalists Association, and became a world or European champion, or winner of a medal in a world or European senior competiton.

The Cabinet adopted the Agreement on settlement between the Federative Republic of Brazil, represented by its Executive Secretariat of the Chamber of Commerce of the Ministry of Development, Industry, Trade and Services and the State of Montenegro, and approved the harmonized draft Agreement. It refers to debt settlement and transfer of ownership of aircraft 40-AAOC to the Government of Montenegro, in order to avoid additional costs arising from potential instigation of proceeedings before the competent court. To that end, the Ministry of Transport and Maritime Affairs was instructed to make the payment in the amount of 4.99 million euros (payable in euros on the payment date) to the Government of Brazil for the purchase price of aircraft 40-AOC.