Business

02 May 2019, 23:29 PM

01 May 2019 - Representatives of the Government of Montenegro congratulated May 1st - International Labour Day to all employees, stating that on this day the Government is sharing the satisfaction knowing that in relation to the beginning of the mandate of the Government, there are about 15 thousand more employees in Montenegro.

"The full set of measures to improve the position of workers - such as changing working hours in the public administration, introducing free Sundays in the trade sector and increasing the minimum wage by 15 percent with a reduction in the tax burden on labour - will positively affect the quality of life of almost hundreds of thousands of employees and their families. Due to strong economic growth over the past two years, the gross domestic product per capita has also grown. The average salary has been nominally increased, and according to official data, the unemployment rate of women in 2018 was at the lowest level since the restoration of independence," as stated in the Prime Minister's congratulatory note on the occasion of the May 1st, sent on the behalf of the Government of Montenegro. 

Representatives of the Government of Montenegro expressed their special satisfaction with the fact that the successes Montenegro achieved in the previous period came as a result of a dialogue with the employees, trade unions and the economy, which are being carried out as the common interest of both parties. 

"In the belief that together we will continue to improve the position of employees, by strengthening the citizen and the family as the basis of a healthy and rich society, I congratulate you once again on the International Labour Day," the representatives of the Government of Montenegro concluded.. 

02 May 2019, 02:51 AM

01 April 2019 - The opening of the first phase of the Portonovi Resort, one of the most prestigious resorts in the Mediterranean, is expected to happen within this season. The first guests will arrive on August 1, while the opening of the marina is planned for May, announced the General Manager of Portonovi Resort Management Company, Stevan Milić.

As Milić pointed out, the resort is an open type and everyone is welcome. There are no gates, only limited access to the apartments.

Portonovi Resort Opens its Marina in May 2019 First Guests in August 4

"The Portonovi's village itself is designed to have seven different blocks. Each block is separated by the streets that connect the resort, so this complex is, in fact, a settlement, with a complete offer," Milić said.

D-Marin Portonovi Marina, operated by internationally recognized D-Marin, has 238 berths for resident and visiting yachts supported by excellent marina services, including duty-free fuel supply. It offers a choice of marina entry points, a sheltered position at the entrance to Boka Bay making it ideal for super yachts, a helicopter pad and lively Vista Square which forms the dynamic centre of marina life.

"Designed to receive boats up to 120 meters in length, with a capacity of 238 berths, the marina is equipped with the most advanced technology providing the highest level service. It will have a border crossing, a customs service, a pump, and next year an international heliport," Milić said.

Portonovi Resort Opens its Marina in May 2019 First Guests in August 3

The first One & Only hotel in Europe is the second part of the first phase of the opening of Portonovi. Milić announced that the opening of this prestigious hotel complex is expected in April or May next year.

"We expect the completion of all works by the end of this year or the beginning of the next, and we expect the grand opening in the spring of 2020. This hotel complex, the only of the kind in Europe, will have 113 hotel rooms and ten branded villas on the coast, with private berths and beaches. It will have the globally recognized Espace Chenot Health Wellness Spa, which will provide clients with the services of the highest level of health through a scientifically established wellness program in 17 offices," Milić said.

The hotel will have its own beach, and the smallest room will have 68 square meters.

"The hotel will also include ten branded villas that are now in the construction phase, and this will be the most luxurious facilities within the entire Portonovi Resort, which will cost more than 10 million per unit. The total investment of the hotel will be about 220 million euros, depending on the final works," Milić said.

Portonovi Resort Opens its Marina in May 2019 First Guests in August 8

As he explained, the promotion of Portonovi Resort is organized with the method that interested buyers actually receive a substantially finished product, and that's why sales activities started intensively at the end of last year.

"During this year, we are very much present on the world market, both through events and through foreign media, which show great interest in opening a portfolio. Our apartment prices range from 450,000 per housing unit to up to 10 million euros," Milić said.

According to the General Manager of Portonovi Resort, out of 214 housing units that will be open this season, 50 units will be fully equipped by the investors and they will be put up for sale through the rental program.

"Residential units will be available for rent from August 1st to all guests around the world. Accommodation prices will range from 350 to the smallest facility, up to 1,000 euros for four-room apartments and larger duplexes. These prices will be active in August and September," Milić said.

Source: Investitor

02 May 2019, 02:29 AM

01 April 2019 - After the opening of the new hotel Holiday Village Montenegro with 257 rooms in the Hotel and Tourist Enterprise Ulcinj Riviera complex, the Karisma Hotels Adriatic Corporation is interested in new investments in Montenegro.

As the Executive Director of the Hotel and Tourist Enterprise Ulcinjska rivijera, Radomir Mikan Zec, explained the plan of Karisma Hotels Adriatic and their strategic partner TUI Group, which is an investment in Ada Bojana, one of the most popular tourist destinations in Montenegro.

"In regards to the investments in Ada Bojana, the management of Karisma Hotels Adriatic is categorical when it comes to houses and cottages on the side of the island. They specifically highlighted that they would not work on resolving the real estate issues on this land. Karisma is a socially responsible company that prioritizes issues regarding ecology and environmental protection. Thus, their management considers that the whole infrastructure of Ada Bojana needs to be reconstructed. This is a very serious company, and the rent of Ulcinj Riviera is a very important state project. The contract has been honoured and up to now 14 million euros have been invested”, said Zec during the interview.

As he explained, if the agreements on the lease of Ada Bojana are successful, the next step of Karisma Hotels Adriatic will be the construction of an airport in Štoj, because an airport will be necessary for their strategic partner TUI who brings guests via airplanes.

"This is only the beginning of the return of Ulcinj to the tourist map of Europe. Fifty years ago, Ulcinj was the metropolis of Montenegrin tourism with 6,200 beds, six months of active tourist season and close cooperation with TUI, and I think this is the beginning of the return of Ulcinj to the European scene," said Zec.

As he pointed out, in the first phase after the opening of Holiday Village Montenegro, Karisma should employ more than 300 workers.  As for the lease of Ada Bojana, the Executive Director of Ulcinjska rivijera claims that the negotiations are on-going, but due to the season they are currently on hold. Still, he believes that by the end of the year, the negotiation process will be complete.

"According to my knowledge, TUI has demanded from the government to “deal with” illegal private houses in Ada Bojana and after their terms have been met, this company would start building various content and facilities on this land," Zec said, adding that the construction of a large airport in Štoj is included in their plans.

Karisma Hotels & Resorts is one of the world's leading hotel management companies, which has been successful in business and is known for its innovative approach, setting new standards for offering a holiday with a focus on the complete atmosphere for its guests. Karisma has 29 hotels in Montenegro, Serbia, Croatia, Mexico, the Dominican Republic, Jamaica, and Colombia.

Karisma has a business strategy and philosophy that is fully oriented to its guests and the company’s innovative concepts stand out from the competition, as witnessed by primarily satisfied guests, as well as numerous awards and recognitions such as the prestigious AAA 4 diamond award.

Source: Investitor

02 May 2019, 01:02 AM

Krnovo Green Energy, the company owned by the Krnovo windmill, has been paid EUR 3.59 million in the first quarter based on incentives for the power supplies from renewable sources, as reported by the Montenegrin Energy Market Operator (COTEE).


The wind power plant at Krnovo is the first windmill in Montenegro with a total installed power of 72 megawatts (MW) and an annual output of about 220-gigawatt hours (GWh), which is estimated to provide the power supply for approximately 50,000 households, according to an earlier estimate.

Works at Krnovo were completed at the end of 2017, and the construction was financed by loans from the European Bank for Reconstruction and Development, the German Development Bank (KfW), IPEXBank and the French Development Finance Institution Proparko.

COTEE said to the Mina-business agency that the owners of small hydropower plants (mHE) were paid over 604,000 euros in the first quarter of this year, according to compensations for the renewable energy sources. The company “Hidroenergija Montenegro” received 287.53 thousand euros in the first quarter. In its property, in the territory of the Berane municipality, are mHE Bistrica, Jezerstica, Orah, Rmus, Spaljevici and Sekular. Kronor received EUR 121,660 for mHE Jara and Babino polje. It is followed by Igma Energy, which from plants in Andrijevica, Bradavec and Pisevska river, earned 63,250 euros and the company Sinergy from Podgorica was paid 41,510 euros based on the work of mHE Vrelo in Bijelo Polje. Hydro Bistrica company, which owns a small hydroelectric power plant in Bijelo Polje, has been paid 58,230 euros. The Nord Energy company from Andrijevica, which owns a mini-plant Seremet potok, earned 31,920 euros in the first quarter.

Text by MINA Business, on April 30th, 2019, read more at Vijesti

01 May 2019, 04:40 AM

30 April 2019 - The completion of the first phase of the Smokovac loop and its connection to the highway is planned for September 30 next year, said the project manager Goran Vujović. According to Vujović, by signing the contract on April 25th, the contractor has already been introduced to the work which should last for 17 months.

The Ministry of Sustainable Development and Tourism recently issued permission to build the Smokovac loop. By this occasion, Vujović explained that the first phase includes works in cadastral municipalities Doljani and Rogami.

"The loop starts at the Boulevard Willy Brandt roundabout, continues over the overpass across the railway, where a toll ramps plateau is to be built," Vujovic said.

The priority section of the highway is 41 km long and when the first phase is finished, it will be 1.6 kilometers longer. Both parts will have four 3.5m meters lanes.

Earlier in April, Chairman of the Chinese company CCCC Liu Qitao promised that the first section of the Bar Boljare motorway will be completed in the middle of next year and that this deadline will be met.

During this occasion, Prime Minister Duško Marković emphasised the importance of the project for the overall development of Montenegro and stressed that the works must be completed within the defined deadline.

"The motorway connects the country and encourages the development of all sectors of the economy. Furthermore, at this stage, we have indirect investments in agriculture, tourism, and other areas," PM Marković said to representatives of CCCC, one of the world's 500 richest companies and among the largest in the world for designing and building roads. CRBC, which builds the first motorway section in Montenegro, is a subsidiary of CCCC.

01 May 2019, 03:13 AM

30 April 2019 - Montenegrin domestic food producers are confronted with a big competition of foreign products, which is why local businesspeople consider that they need the help of the state to better position domestic gastronomy in tourism, as well as to strengthen competitiveness, says the report from Montenegrin Chamber of Economy.

"The fact is that we import a lot of products for which we have comparative advantages, so that domestic food production is confronted with great competition from foreign products," said the representatives of the Montenegrin Chamber of Economy in an interview for Mina Business Agency.

Local Montenegrin Products Face Great Competition 2

The businesspeople from Montenegro, as assessed by the Chamber, are very well aware that they have to increase production and produce high-quality products, as well as to determine a price that must be competitive both on the domestic and foreign markets. Still, because of the high competition of international products, they feel that they need the help of the authorities for better positioning in the domestic market, supplementing the tourist offer with domestic gastronomy, and to strengthen the competitiveness.

"The coverage of import by export, high import dependence and the growing deficit are characterized by the overall foreign trade operations of Montenegro, especially in the case of food trade, which is directly related to the growing tourist demand. This requires higher imports of food especially in the summer months, as often installed capacities cannot satisfy the demands of tourists, which is confirmed by the fact that about a quarter of the total import of food relates to July and August," said the representatives of the Chamber of Economy.

According to the statement by the representatives of the Chamber, during the tourist seasons, domestic businesses do increase production and placement, which is, in fact, the so-called "export on the threshold" or "invisible exports", but the value of this export cannot be precisely determined, so that there is actually no coverage of import by export "real data".

"Bearing in mind the need for better positioning and placement of domestic products, the project "Buy Local" was launched last year with the aim to improve the position, visibility and placement of domestic products in the Montenegrin market, by special marking of products in the facilities of large retail chains," the Chamber specified. The representatives of the Chamber also emphasized that this is a long term product which has already shown results, and it will be continued in the future as well.

27 Apr 2019, 21:17 PM

26 April 2019 - In the past four years, nine construction companies generated 113 million EUR of net income. Almost half of the amount went to Bemax.

Bankar.me portal has analyzed last year’s performance of the companies whose annual income exceeds 2 million EUR. Apart from other companies, they have been examining Bemax, since it’s the most frequent supplier and often the contractor. Judging by many indicators, this enables them the leader status. First and foremost, judging by the income level and net profit. On an annual level, this company generates profit that equals the total of profits generated by other observed companies. Although earnings of the companies are on an upward trend, they still fail to keep up to the tempo of Bemax.

So far the most profitable companies in the sector, Bemax and Zetagradnja, have recorded a slight fall in profit in comparison to 2017. Bemax, which was a national record-holder in 2017 with a profit of 20 million EUR, had 13 million EUR profit last year.

Zetagradnja, a company whose logo decorates some of the greatest buildings in almost every part of the Capital, is currently carrying out the biggest project – construction of City point complex. As this project is approaching the finish, the profit and revenues will be increasing simultaneously.

Fidija and Cijevna komerc have recorded the highest increase in profit. Gradnja promet and Trudbenik companies have recorded fallen in profit. Looking at the return of the capital employed (11%), the operation of these two companies is quite stable.

Cijevna komerc and Novi Volvoks have recorded the most efficient engagement of capital, whereas Gradnja promet has recorded a drop. However, employees in companies have salaries that are lower than the state average. The problem is the number of employees who are engaged “in case of need” and foreign workers who make up the majority of the workforce at construction sites. Therefore, figures representing the average monthly net wage should be taken with a grain of salt.

Only 5% of total income covers the staff costs which means that this work is not as appreciated as it should be.

Source: Cafe del Montenegro

26 Apr 2019, 22:51 PM

"Watergroup" has produced water for 13 years. The experience gained in these years has led this company to take over the “Rada” mineral water plant project and restart the production in this factory.


Boris Raskovic, co-owner of “Watergroup doo” says that with the experience gained over the past 13 years, they entered this project very seriously, engaged experts from the region who are most famous in this field and who have set up similar projects in the region. In the last eight months, according to Raskovic, from the source to the factory itself, everything was practically made as new.

A lot of money was necessary to restart the production and therefore they entered the entire project with the support of the Investment-Development Fund.

"The total investment in “Rada” is about EUR 4 million, of which IRF funds amount to EUR 2.5 million. The loan repayment period is ten years, out of which the grace period is two years. The interest rate is 3.50% per annum. The procedure for getting the loan is quite complex; it included a complete analysis of the company, the collection of various data. We have experience in working with them for the realization of our previous projects, so we have done this one quite efficiently," Raskovic said.

There are currently 20 workers in the new factory. One of them is Miras Joksimovic, who was part of the staff 20 years ago when “Rada” was in state ownership.

"This is something new now, quite different; I believe that all of this will be all right and that the new owner will be able to make it operate even better," Joksimovic pointed out.

The investment-development fund has invested a significant part of the funds into the north of Montenegro and this project shows that new jobs are being opened in this part of the country. Slobodan Cvijovic, who graduated at the Faculty of Electrical Engineering, decided to return to his homeland.

"I was born here, my family is here and I plan to stay here and show that this city offers a perspective for youth and that we can live, work and progress here," said an employee at “Rada”, Slobodan Cvijovic.

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The company believes that “Rada” will stand in the place that belongs to it, and on that occasion, Raskovic said that when the dice are in place, they will enter into new projects.

"The plan foresees that in time when all this is done, we will slowly introduce other products in the assortment. By this, we mean water with flavors and juices. By the realization of this project we really want to create a serious industry in the north, which will not only substitute a significant part of the import of these products in Montenegro but make an industry that will compete in parallel with similar companies in the region," Raskovic said.

"We believe that this project has the potential to restore that old glow to “Rada” and our task is to keep it going and slowly start exporting because “Rada” was exported once and was present in the region," Raskovic added.

As he said, he looks forward to having an institution in Montenegro ready to help the Montenegrin economy.

"If there is an opportunity given by the Investment-development fund, it should be used because, at least in that respect, you reduce some of the risks and the grace period makes it easier to, through already affordable loan rates, complete one financial part of the story more simply than in commercial banks," said Raskovic.

The company is aware that the Montenegrin market faces numerous problems, and that large imports in many cases create problems for domestic producers.

"We, as manufacturers, firstly need to create a quality product that will compete with reputable products from the region, then place it on the shelves and introduce ourselves to the ultimate customer, so he can choose our product, and not some other water," says Raskovic.

The new plant, “Rada”, has a production capacity of 15,000 liters of water per hour, and currently employs about 20 workers. The company announces that there will be more as the business expands.

Text by Promo, on April 26th 2019, read more at Vijesti

26 Apr 2019, 18:19 PM

26 April 2019 - "Continuation of aluminum production is of great importance for the overall economic development of Montenegro, and through announced investments "Uniprom" will continue to strengthen its position on the aluminum market, which will greatly contribute to strengthening the Montenegrin economy," Minister of Economy of Montenegro Dragica Sekulić said marking the start of construction works on the factory of aluminum billets/logs within the Uniprom KAP.

Minister of Economy Dragica Sekulić and owner of Uniprom Veselin Pejović jointly marked the beginning of works on the factory.

Sekulić said that Uniprom – Aluminum Plant Podgorica was recognised as a subject with a clear vision, clearly defined short-term and long-term goals and guidelines for further development of the company.

"In addition to the already installed silumin factory, which will produce 30,000 tons of special alloys of an outstanding foreign market value of 75 million USD, which will be opened soon, we are starting to implement the next project, which is the construction of a new factory of aluminum billets/logs," Veselin Pejović said.

The opening of the Uniprom KAP factory is planned for December 2019. The planned value of this investment is approximately 15 million EUR. It is expected that these two factories will create 80 new jobs.

Prime Minister of Montenegro Duško Marković, on his recent visit to the factory, noted that investments in Uniprom KAP, around 36 million EUR thus far and an additional 30 million, are an excellent opportunity for Montenegro, its economy, industrial production, and export increase.

"A new modern industrial centre is practically being developed in Montenegro. I am sure that most citizens do not know about it, not only in Montenegro but also in Podgorica. New plants and new factories for the finalisation of aluminum production are being developed here," Prime Minister Marković said on this occasion. 

26 Apr 2019, 17:59 PM

25 April 2019 - An auction of state bonds was held at the Montenegro Stock Exchange this week. A total of 64.516 state bonds were sold, and their value totals 64.666.000 EUR, which is 34% of the issue. The auction was a success and the purchase of state bonds was made via three broker houses and two banks. According to the unofficial data, buyers were mostly insurance companies, banks, investors from the region and a small percentage of citizens. The auction was held to raise funds for financing state budget.

“The primary sale was made for two state bonds in the total amount of 190 million EUR. They are long-term debt bonds and the day of their maturity the owners will be paid one-off principal and annual interest. For state bonds with GB1-2024 trade symbol, issue amounted 140.000.00 EUR, with a total of 140.000 bonds and with a nominal value of 1.000 per bond,” said the representatives of Montenegro Stock Exchange.

Five years is their maturity deadline, or 2024. A bond is with a fixed interest rate. It amounts to 3%.

A total of 14.516 of bonds were sold at the auction and their total value amounted 14.516.000 EUR, which is 10,37% of the total issue.

“Since the entire quantity was not sold today, the primary sale will continue tomorrow,” said the representatives of MSE a few days ago.

As far as the sale of state bonds with trade symbol GB1-2026 is concerned, the amount of issue was 50.000.00 EUR. The total amount of bonds was 50.000 with a nominal value of 1.000 EUR per bond. The maturity deadline is 2026.

“This bond is charged with a fixed interest rate of 3,5%. The total amount of these bonds was sold at today’s auction. The demand was 12.645 higher than offered in the initial sale. Since the demand exceeded the offer, there was a little “competition” among the interested buyers. At 12:02, when the auction closed, we have come to the price of 1.003 EUR per bond. This means that the total value of the primary sale of this issue amounted 50.150.00 EUR,″ said the representatives of Montenegro Stock Exchange.

A total of 64.516 bonds, or 34% of the total issue, was sold at the auction which took place on April 22.

25 Apr 2019, 12:07 PM

April 25, 2019 - Flydubai airline from mid-June continues to provide summer passenger transport services to Tivat twice a week, confirmed EX-YU Aviation News.

Flydubai announced a flight schedule for the winter season 2019/2020, which begins on October 27, and the carrier will modify its operations on most markets in the former Yugoslavia.
 
The airline will reduce flights to Zagreb and Sarajevo, increase frequencies in Belgrade and keep the same number of trips as last winter for Skopje. The summer flights to Dubrovnik this year will also be agreed.
 
On the other hand, the airline will continue with the summer service Tivat twice a week, as it was the case last year.
 
The hybrid operator continues with flights between Dubai and Zagreb on October 27, replacing its Emirates partner on the service.
 
In a statement for EX-YU Aviation News, the airline has confirmed it will maintain a day-to-day route until November 10, after which services will be operated four times a week until late March 2020, every Wednesday, Friday, Saturday and Sunday.
 
Last winter, Flydubai ran daily services between the two cities throughout the season. Earlier this month, Emirates confirmed that it would continue to maintain a shuttle deal with Flydubai in Zagreb.
Flights to Sarajevo, which take place three times a day during the peak summer season, will run three times a week in winter.
 
As a result, the carrier will reduce its services to the capital of Bosnia and Herzegovina with one weekly flight.
 
Operations between them will be held every Wednesday, Friday, and Saturday. On the other hand, Flydubai will increase its Belgrade services for the upcoming winter. Earlier the carrier reported that a codeshare agreement with Emirates increased demand on the route. Operations in Skopje remain unchanged - twice a week.
 
Flydubai also modified operations on its summer flights to Dubrovnik. Two services per week will be resumed in June and will last until October.
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