Business

05 Dec 2019, 10:28 AM

The beginning of works on the first of three roundabouts on the route of the future main boulevard on the Adriatic highway through Tivat will be marked on Thursday, December 5, at 10.30 am in the settlement Kukuljina, at the exit from the city towards the airport.

On that occasion, the roundabout will be visited by the Mayor of Tivat, Dr Siniša Kusovac, with his associates, and Radenko Čvorović, the executive director of the company „Mehanizacija i programat“, i.e. the main contractor.

The contracted value of the works is 535,000 euros and the deadline for completion is 65 days from the date of commencement.

The roundabout - the intersection on the Adriatic highway in the center of Tivat, near the old Tivat Municipality building will be realized by the company “Vukotic Trade” from Podgorica, for EUR 306 thousand, and the procedure for the implementation of the third roundabout at the building “Dom vojske” is under preparation.

The planning documents previously envisaged two roundabouts, but a third roundabout was included during the project implementation and considering all the facts - traffic flow, local and transit population requirements.

With the construction of roundabouts, the Municipality of Tivat has started the implementation of a demanding project for the construction of the main boulevard, which will improve traffic efficiency and provide better connectivity to suburban settlements.

The main feature of the future boulevard is the width of the corridor of 19 meters with two traffic lanes per direction and the dividing island. According to the terms of reference, five phases of the project are foreseen, namely the construction of three roundabouts and an open lane connecting these roundabouts.

Text by Boka News, on December 4th, 2019, read more at Boka News

02 Dec 2019, 11:12 AM

The first oil well exploration in the Montenegrin submarine will be established in the spring between Bar and Ulcinj, about 26 kilometers offshore, the Ministry of Economy confirmed.

By the end of next year, it will also be known whether Montenegro has significant amounts of oil for commercial use, “Vijesti” writes.

Montenegro has granted concessions to foreign companies to seek oil.

The ministry recalled that, in accordance with the obligations under the concession contract for the exploration and production of hydrocarbons, Eni-Novatek dealers completed 3D geophysical surveys of the Montenegrin submarine on blocks four, five, nine and ten in November and December last year.

"The processing of the collected data is being executed in stages, it is still underway and it is expected that it will be completed by the end of the year," the Ministry of Economy said.

Text by Boka News, on November 30th, 2019, read more at Boka News

27 Nov 2019, 12:42 PM

The contract on the development of the Conceptual Design and the Main Design for the construction of the local road on Lustica has been signed, according to which the preparation of documentation should be completed within four months. This is a major step towards the realization of a project that will solve the long-standing infrastructure problems of the people in Lustica and enable the further development of this peninsula.

The contract was signed by Stevan Katic, Mayor of Herceg Novi and Edward Spahija, CEO of the company “Profil ing” doo, which was selected as the most favorable bidder in the tender.

The contract stipulates that the preliminary design and the main design will be done for the construction of a local road on the route from the existing Rose-Krasici road to the existing Babunci-Krasici road.

The value of this project is 87,120 euros.

Lustica1.jpg

Lustica

It is defined that the Municipality will disburse funds as follows: 30% after obtaining the approval of the Chief Architect in the Preliminary Design, 40% upon submission of the Main Design and 30% after receiving a positive opinion on the Main Design by the Auditor.

Text by Boka News, on November 26th, 2019, read more at Boka News

26 Nov 2019, 14:41 PM

November 26, 2019 - A consortium of the German WPD AG company and Vjetroelektrana Budva [in English: Budva Wind Farm] is the only bidder that met all the requirements for the construction of the Wind Farm Brajići on state-owned land in the municipalities of Budva and Bar, suggests the Decision on the shortlist of bidders.

 

The document drew up by the Ministry of Economy says the German-Montenegrin consortium was the only bidder which made a bid in a timely manner and offered an investment of  EUR 101,3 million for the construction of a wind farm.

 

The bid encompasses the construction of a wind farm with the potential of producing 100,8 MW, while the consortium also offered to pay €2,50 per square meter for the lease of state-owned land.

The bid also envisages the participation of national companies in the amount of €21,6 million and the construction of a new wind power plant at an area of 235,462 square meters.

Text by CDM on November 26, 2019, read more here.

To read more about business in Montenegro, follow TMN's dedicated page.

22 Nov 2019, 10:36 AM

According to Monstat, the minimum consumer basket in October amounted to EUR 645.1, which is 0.4 percent more than in September.

"Out of the total value of the minimum consumer basket, expenditures for food and non-alcoholic beverages amounted to EUR 269.2, which is 0.4 percent less than in September," the statement said.

Statisticians said expenditures for non-food products and services amounted to 375.9 euros, which is one percent more than in September.

The minimum consumer basket refers to household consumption, which includes food and non-food products and services, which enables the maintenance of life and working ability of household members.

The minimum consumer basket complies with the minimum recommendations of the World Health Organization (WHO) and the USDA Food Guide 2010 for a minimum caloric intake of 2.21 thousand calories per person per day.

“The value of the minimum consumer basket is based on data from the Household Budget Survey and the World Bank (WB) recommendations. The value of a minimum consumer basket for a four-person household is the minimum monthly expenditure related to food and non-alcoholic beverages and non-food products and services," said Monstat.

For the calculation of minimum expenditure relating to food and non-alcoholic beverages, average prices for the current month and monthly quantities in kilograms for a four-member household are used.

Consumer price indices (CPIs) are used to calculate the value of a basket of non-food products and services.

Text by MINA Business, on November 20th, 2019, read more at Vijesti

16 Nov 2019, 15:56 PM

November 16, 2019 - Mr Darko Radunović, Minister of Finance, and director-general of the Directorate for State Budget in the Ministry of Finance, Mr Bojan Paunović, presented the Proposal for the Montenegro Budget Law 2020 at the media conference.

 

“The objective of the economic policy of Montenegro’s Government is increasing the living standard and bringing GDP closer to the EU level”, said Mr Radunović.

“With the aim of bringing living standard closer to the European average, the Government is implementing measures of economic policy aimed at strengthening fiscal stability and increasing competitiveness of the economy”, said Mr Radunović.

He added that results of the economic policy achieved in the past period had shown that Montenegro’s fiscal position had been further consolidated: record economic growth rates, 15% increase in employment, and increase in salaries, implemented fiscal policy measures and creation of stable sources of financing through the most successful bond issue so far. Furthermore, conditions for increasing salaries of the employees with the lowest wages have been created, tax debt has been reduced by 30% compared with 2016. Wages, pensions and social benefits have been maintained at a regular level and capital projects aimed at infrastructure development through the greatest investment in Capital budget in the history of Montenegro.

In the past two years, more favorable borrowings enabled financing of payment of previous debts, which allowed the creation of a more favorable credit structure of public debt. The need for additional indebtedness has been considerably reduced as well as our country’s exposure to possible unfavorable economic trends in the international environment.

 

Measures of fiscal adjustment enabled the following: over €20 million increase in budget revenues, reduction in budget deficit with current expenditure surplus, capital budget funds for the implementation of new infrastructure projects.

“Strong economic growth, increase in the number of employed people, strengthened fiscal stability and maintained a level of competitiveness of Montenegro’s economy create the position in which our country would respond to the global economic slowdown”, said Minister.

Mr Radunović emphasized that further consolidation of public finances as proposed in the projected 2020 Budget. He highlighted additional support that this Budget provided.

“Proposal budget also creates conditions for the affirmation of the airports and the sustainability of the national air carrier”, said Mr Radunović.

The development component of the budget creates conditions for the continuation of a strong investment scheme.

This budget will be used primarily for development.

Text by CDM on November 16, 2019, read more here

To read more about business in Montenegro, follow TMN's dedicated page

15 Nov 2019, 10:00 AM

Montenegrin Prime Minister Dusko Markovic spoke with representatives of the Qatari Diar Company in London, which in 2010 purchased 285,000 m² of land in the area of the former hotel Blue Horizons in Przno Bay, Tivat Municipality, in order to build a tourist complex.

Satisfaction with the fact that the challenges that slowed down the work on the project have been overcome was expressed at the meeting as well as mutual readiness to proceed as soon as possible to continue construction of a complex that includes a luxury hotel, more than 140 residential villas and a tourist resort with all the amenities. The total value exceeds €250 million.

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Bay Przno

Qatari Diar representatives, led by Tarik al Abdula, Qatari Diar development director for Europe and America, expressed satisfaction with the implementation of development projects in Montenegro and the progress of our tourism and informed the Prime Minister that they have prepared a plan for further activities and that they will continue soon with the construction of this resort.

The Prime Minister informed the interlocutors with the development plans in the area of Lustica as well as details of the forthcoming modernization of Tivat Airport and transport infrastructure, which will increase the value of the Qatari Diara project.

Text by Boka News, on November 14th, 2019, read more at Boka News

14 Nov 2019, 15:27 PM

November 14, 2019 - Co-owner of Montenegro stars hotel group, Mr Žarko Radulovic, says that optimization of job posts in that company is underway. The optimization envisages the reduction of those who work during winter. According to Mr Radulovic, that means that between 130 and 170 employees will be dismissed. However, he claims that the salaries of those who remain will be increased by 20%.

 

“We’ve started the optimization process. Since 2014, we’ve had a surplus of 130-170 employees. We need optimization now, in order to increase salaries for those who remain in the company. Fewer employees, higher salaries. We have to do that. The goal of the optimization of workforce and costs is to spill them over into a personal income”, says Mr Radulovic for CdM.

Salaries will be by 15-20% higher.

“The company is doing a great job, revenues are on the rise. Every year we generate a profit of €70.000 to up to €1 million. Our fund is stable and is going to get bigger”, said Mr Radulovic.

He points out that 35% of the gross turnover accounts for operational costs.

 

“Salary fund increases between €300.000 and €450.000 every year. It’s one of the sources of the increase in pays. The second source is optimization. Those with the lowest salaries will be given priority. So far, we’ve had around 590 employees in the winter period. We are going to bring that number down to 430-440”, says Mr Radulovic.

He adds that the company has great people, willing to work.

“We didn’t want to fire employees and, therefore, we’ve had a surplus of them in the past 4-5 years. In order to “save” them during the winter season, we’ve introduced a system of unpaid leave. They had their employment relationship, pension and social insurance for the whole month. We paid their apartments and an employee could eat three meals a day even when he/she wasn’t working”, says Mr Radulovic.

However, they realized it wasn’t a very good solution and that everybody was dissatisfied.

“The analysis showed that this solution hadn’t brought many benefits. That’s why we decided to carry out the optimization process”, concluded Mr Radulovic.

Text by CDM on November 14, 2019, read more here.

To read more about business in Montenegro, follow TMN's dedicated page.

11 Nov 2019, 13:17 PM

November 11, 2019 - Budvanska Rivijera Hotel Group generated revenue of €4,88 million at the end of September this year, the report on the operating performance of the company shows.

 

Limited liability company, which encompasses Palas and Castellastva hotels in Petrovac, Aleksandar and Mogren in Budva, as well as tourist settlement Slovenska plaža, made great results during the main season despite a portfolio of investments in internal restructuring.

Operating income amounted to €20,05 million in the first nine months. Around €18,44 million were used for the sale of capacities and services in five hotels.

In the same period, expenses amounted to €15,33 million. Around €5,69 million were related to employees’ salaries, €3,76 million went for the material, amortization required €1,83 million and more than €4 million related to other operational expenses.

Since other business activities brought another €174.165, Budvanska Riviera finished the third quarter with the final €4,88 million.

 

The company’s total assets amounted to €140,78 million in this period.

The company earmarked €1,65 million for the short-term financial arrangements – €12,54 million for the cash and €1,41 million for stocks.

The current initial capital is worth €55,04 million and is divided into more than 8 million shares.

Deferred tax liabilities amount to €7,96 million whereas retained earnings reached €9,76 million.

On 25 June, the majority shareholders of Budvanska Riviera HG gave green light to restructuring project. A new limited liability company was established – Sveti Stefan hotels, encompassing Sveti Stefan and Miločer hotels.

Text by CDM on November 11, 2019, read more here.

To read more about business in Croatia, follow TCN's dedicated page.

10 Nov 2019, 14:57 PM

November 10, 2019 -  Toll tax for the priority Bar-Boljare motorway section will probably range from 3 – 3.5 euro, executive director of the Monteput company Mr Jonuz Mujević told Pobeda daily.

 

“The exact amount of the toll has not been specified yet, but it will range from 8 to 12 cent per kilometer. The final decision on the toll tax will be made by the Government,” said Mr Mujević, adding that the Government is supposed to determine the exact amount in a year.

 

According to him, it [the Govt] will most likely opt for the lower rate of toll tax – 8 cent/km.

Mr Mujević continued: “For now, the Government believes that Monteput should collect toll taxes and perform complete maintenance of the highway, but we are waiting for the adoption of the Road Law when we’ll know everything in detail,” he noted.

Text by CDM on November 9, 2019, read more here

To read more about business in Croatia, follow TMN's dedicated page

07 Nov 2019, 14:07 PM

November 7, 2019 - Next year, Montenegro will be functioning in a complete financial and fiscal stability, said Minister of Finance, Mr Darko Radunović, adding that he hopes it will be for the middle-term.

 

While answering the questions asked by the MPs, the Minister said that strong economic growth, increase in employment, strengthening fiscal stability and a stable level of competitiveness of Montenegro’s economy represented the position in which Montenegro would welcome the projected global economic slowdown.

“Growing uncertainty in the international surroundings, led by trading and geopolitical tensions, is one of the reasons we took into consideration while making projections of Montenegro’s economic growth in the next year”, said Mr Radunović.

Estimated economic growth this year amounts to 3,1. The projected growth rate between 2020 and 2022 will be 3%.

 

“From 2019 to 2022, cumulative nominal GDP growth will amount to 18,1. Real GDP growth will be 12,6”, said Mr Radunović.

He emphasized that the decline in public debt “is expected in the forthcoming period”.

According to the estimates, the budget deficit should amount to 2,5% of GDP at the end of the year.

Mr Radunović pointed out that source budget revenues increased by more than €250 million, owing to fiscal consolidation. Next year, public debt will amount to €3,51 billion, that is, 70,3% of GDP.

Text by CDM on November 7, 2019, read more here.

To read more about business in Montenegro, follow TMN's dedicated page.

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