Spajić: Ambitious plans to revitalize the Igalo Institute

The development of the Igalo Institute is of national importance for Montenegro, and experts from the University of Montenegro will be involved in creating a restructuring plan for the institution, announced Prime Minister Milojko Spajić.

Today, he met with the Rector of the University of Montenegro, Vladimir Božović, and the Deans of the Faculty of Economics, Mijat Jocović, Faculty of Civil Engineering, Marina Rakočević, and Faculty of Medicine, Miodrag Radunović.

The Government will provide the University with a project task for drafting the restructuring plan, which their teams, in collaboration with the teams from the University and the Igalo Institute, should prepare within the next four to five months.

Prime Minister Spajić emphasised that after resolving acute issues and saving the Institute from blockade and bankruptcy, it is time to establish a strategic direction for Igalo.

The restructuring plan should be the foundation for embarking on a very ambitious project that will make the Institute profitable within three years of its implementation. We aim to have a representative system of facilities, capacities with four and five stars, and to attract the most demanding users with what we have, said Spajić.

The Prime Minister explained that until then, the state will find a way to increase allocations for its citizens needing the Institute's services through the Health Fund and attract foreign users.

It is possible that we can also have rehabilitation for Ukrainian citizens within the NATO programme at our Institute, Spajić mentioned.

He highlighted that the employees at the Institute have remained dedicated to their work despite difficult conditions, and it is essential to preserve and strengthen the staff of this unique rehabilitation center, particularly to develop health tourism in Montenegro throughout the year.

This is a project of national significance and a significant engine of our economy. We need a good business model and want to engage all relevant entities and expert staff, Spajić stressed.

Rector Vladimir Božović thanked the Government for engaging the University, noting that this will be a test for all future collaborations.

We will engage all people, wherever they are. We care about making this successful and will give our best to ensure it. We have an extensive network of contacts, should external support be needed, Božović said.

Dean of the Faculty of Economics, Mijat Jocović, stated that it is the obligation of the institution to deploy all available expertise for this important task for the country.

We are here to establish a working methodology to piece together the best possible solution. We understand that the goal is not just to save the Institute but to create a business model that will be sustainable and globally competitive, Jocović said.

Dean of the Faculty of Civil Engineering, Marina Rakočević, conveyed that they would make all their capacities available and engage international experts if needed.

About ten years ago, we conducted an expert assessment for one of the Institute's buildings. We know that the buildings need to be renovated, she said.

Dean of the Faculty of Medicine, Miodrag Radunović, noted that the Government and the University have not collaborated in this format before, and they will fully engage to find the best possible solution for the Igalo Institute.

The Igalo Institute's account was unblocked on 4 July 2024, after more than 200 days, when the Government of Montenegro and a minority shareholder, Vile Oliva company, each paid five million euros, resolving the long-standing debt issue with Jugobanka amounting to about seven million euros. Concurrently, two overdue salaries were paid to the workers. The restructuring plan is expected to be completed within six months, which will normalize the Institute's operations, currently burdened with significant debts to creditors and employees.

The Government is determined to resolve accumulated problems and ensure security for the Institute’s employees, creditors, and all users of this unique rehabilitation center through a strategic approach and collaboration with all relevant stakeholders.

Minister of Health Vojislav Šimun, Chief of the Office of the Prime Minister Branko Krvavac, Prime Minister's Economic Adviser Milena Milović, and State Secretary at the Ministry of Spatial Planning, Urbanism, and State Property Majda Adžović also attended the meeting.