Press release from the 32nd Cabinet session

The Montenegrin Cabinet held its 32nd session today, chaired by Deputy Prime Minister for Security, Internal Policy, European and Foreign Affairs Aleksa Bečić.

The Cabinet adopted a Decision on Salary Supplements for Certain Job Positions. This new decision was prompted by recommendations from the Protector of Human Rights and Freedoms to address irregularities and rectify identified violations of human rights and freedoms, specifically discrimination in terms of equal pay for equal work. The previous decision had been amended eight times in the past two years in an unsystematic and selective manner, which disrupted the principle of uniform pay in the public sector for similar jobs requiring the same level of qualifications.

The Cabinet adopted a Decision establishing a Commission to monitor the implementation of the Programme to Combat the Informal Economy in Montenegro. The programme primarily aims to reduce informality among registered businesses and entrepreneurs, including tax evasion and avoidance of full tax obligations. The Commission will coordinate activities, report on programme implementation, provide recommendations, and guide the programme's execution. The Commission will consist of a president, a vice-president, and 13 members appointed by the Government.

The Cabinet adopted the Information regarding the appointment of the Nominated Electricity Market Operator (NEMO). According to the Energy Law, the NEMO is responsible for the integrated day-ahead and intraday electricity market coupling in collaboration with the transmission system operator. The company Berza električne energije d.o.o. (Electricity Exchange LLC) applied for NEMO status on 26 April 2024. Following a review, the Regulatory Agency for Energy and Regulated Utilities determined that the company meets the legal requirements for NEMO appointment. The appointment is a prerequisite for Montenegro's future integration into the unified European electricity market. Consequently, the Cabinet decided to appoint the aforementioned company as the Nominated Electricity Market Operator.

The Cabinet approved a programme designed to improve energy efficiency in household and rural tourism establishments. The primary objectives are to reduce energy consumption and associated costs, lower carbon dioxide emissions, improve air quality, optimize resource use, and enhance the comfort and quality of accommodations. The programme is backed by a budget of €500,000, funded through the Instrument for Pre-Accession Assistance (IPA III) and the European Commission's Direct Budget Support Package to Montenegro for addressing the energy crisis. The Eco Fund is responsible for the implementation of this programme, which includes a structured process of public calls, application submissions, and eligibility verification.

The Cabinet adopted a programme to enhance energy efficiency in the hotel industry. This programme establishes a financial mechanism to improve energy efficiency and increase the use of renewable energy sources in hotels, thereby enhancing service quality. By strengthening the link between energy efficiency and innovation, the programme aims to reduce energy consumption, decrease energy intensity, and lower carbon dioxide emissions. It supports efficient resource use (circular economy) and fosters the development of the tourism sector by enhancing service quality through innovative technologies, thereby adding value to the tourism product. This programme is supported by a budget of €3 million from the IPA III and the European Commission's Direct Budget Support Package. The programme anticipates up to 30 hotel beneficiaries, providing de minimis aid as defined by the Law on State Aid Control (Official Gazette, 16/18). The Eco Fund is the implementing body for this programme.

The Cabinet adopted the Information on the expropriation procedure for Phase II of Tivat Airport. The Ministry of Transport and Maritime Affairs was designated as the expropriation beneficiary and is responsible for securing the necessary funds. The area designated for concession activities at Tivat International Airport covers 157.86 hectares of land and 8.83 hectares of water. Phase I encompasses 84.7 hectares, Phase II 56 hectares, and Phase III 17.38 hectares. Although the Concession Act stipulates that Phase II will be implemented in the fourth and fifth years of the investment programme, the session emphasised the urgent need to resolve property issues on cadastral parcels owned by private individuals to facilitate timely expropriation.

The Cabinet approved an extension of the deadlines for investment realization and submission of payment requests under the First Public Call through Measure 7 (Farm Diversification and Business Development, Sub-measure 7.1: Support to Investments in Rural Tourism) and the Fifth Public Call through Measure 1 (Investments in Physical Assets of Agricultural Holdings) under the IPARD II programme (2014-2020). The investment deadlines for both public calls have been extended by one month. This extension will not affect the final deadline for fund disbursement under the IPARD II programme, which remains 31 December 2024.

The Cabinet adopted information regarding the application of Article 25, Paragraph 5 of the Law on the Restitution of Expropriated Property Rights and Compensation. The Cabinet approved that former owners can settle their due customs debt with restitution bonds, in accordance with the law.

The Cabinet adopted a Platform for the rescue and restructuring of the Institute for Physical Medicine, Rehabilitation, and Rheumatology "Dr Simo Milošević" AD Igalo. This platform aims to preserve and enhance one of Montenegro's most important health and tourism resources. It includes measures to modernize and improve the Institute’s operations, strengthening its position as a renowned centre for rehabilitation and medical tourism. The platform emphasises stabilising the Institute’s operations, preserving jobs, and enhancing the quality of services provided. Given the crucial role of minority shareholders in adopting and implementing this plan, all shareholders are urged to recognise the importance of joint efforts and cooperation at this critical juncture.

The Cabinet reviewed the fulfillment of conditions for terminating the Concession Agreement for detailed geological research and exploitation of sulfide polymetallic ore (Pb, Zn, Cu, FeS2, and other associated sulfides) at the former "Brskovo" mine near Mojkovac. The concessionaire had a 60-day period to rectify irregularities identified in two feasibility studies for lead, zinc, and associated useful components. Since the deadline expired on 25 May 2024, without the concessionaire addressing the irregularities, conditions for terminating the agreement were met. The responsible minister is tasked with delivering a written termination notice to the concessionaire, activating the bank guarantee, and taking all necessary actions to protect the rights of the grantor.

For full press release in Montenegrin, please click here.