Business

08 Jan 2019, 14:18 PM

07 January 2019 - The Real Estate Administration started drawing up an Address register that will collect records of the numbers of houses, streets and squares and that will be the main focus of the Real Estate Administration in 2019, said the first man of the administration, Dragan Kovačević. The address register is one of the key registers of the e-government and therefore, the importance of its establishment will be multiple.

“Areas in which this register will be particularly important are demographic, economic and territorial statistics, spatial planning, performing activities that fall within the competence of police, Armed Forces, tourism, healthcare, education and many other activities from the everyday life,” said Kovačević.

Real Estate Administration started this project last year, in cooperation with the Statistical Office of Montenegro, local administrations and Ministry of Public Administration of Montenegro.

“The first step in drawing up the Register is that the competent institutions analyze the existing situation at the local and central level, as well as that they recognize the needs of the users of the Address register that is supposed to provide the possibility of fast, efficient and reliable business. With the aim of the future cooperation, Real estate Administration has set up a workshop in the cooperation with the Norwegian Cartography Agency. Based on the experience from the meetings held and the analysis of the current situation, the Real Estate Administration has prepared a comprehensive proposal activities plan. Plan of the implementation of this project has been presented, and all the participants of this program agree with the proposed activities,” explained Kovačević.

Kovačević said that this Register would significantly simplify the implementation of regulations in 2021.

“Together with other data from other relevant registers, this approach will facilitate the organization of activities and reduce financial costs,” said Kovačević.

Source: Cafe del Montenegro

08 Jan 2019, 14:02 PM

07 January 2019 - According to Dr Veselin Vukotić, the Rector of the University of Donja Gorica, the critical thing in every debt is its connection with the profit that it generates once invested in a particular business. As long as the debt is seen in the context of profit it can generate, there is no negative impact on development.

The University of Donja Gorica hosted traditional Christmas discussions about the economy on January 6th. The topic of the 27th discussions was "Public debt and development“.

The host, Dr Veselin Vukotić, reminded that public debt was one of the causes of the downfall of our civilization. He pointed out that statement that 65% is the endurance limit of the national economy is false.

The debt was discussed in the context of development too.

“As long as the profit from investments of debt is higher than the debt itself, the debt is the stimulus of the development,” says Vukotić.

As he said, the debt refers to future profit, and profit can not be made without investments, innovation and entrepreneurship.

“If the debt is developmental, it makes us think about the future. If it’s aimed at expenditure and maintaining the status quo, political or any other, then it’s dangerous for the development,” said Vukotić.

He also noted that the future “lies in the information society”.

"We need to get two things straight. First, national states are losing power. Second, fight for the preservation of the identity of the states means captivating the vision," pointed out Vukotić.

Quoting the words of Dalai Lama, Vukotić concluded that “Our only possibility to respond to the challenges of today is education”.

07 Jan 2019, 11:32 AM

January 7, 2018 - In the realization of the construction project for the nautical-tourist center Porto Montenegro in Tivat, since its inception in the summer of 2007 until the end of September 2018, Adriatic Marinas invested a total of 551 million euros, the Montenegrin Government claims.

In the information on the realization of capital projects in Montenegrin tourism from July-December last year, which was adopted at its final session in 2018, the Government claims that the planned investment in the realization of the entire Porto Montenegro project was still very far off being achieved in the full anticipated amount, and amounts to 450 million euros. The Government estimates the investment of over 100 million euros more than that sum. Nevertheless, considering the structure of the total investment so far realized, Porto Montenegro's former owners (Canadian businessman Peter Mank and his partners), or current owners (the ICD corporation from Dubai), invested in a total of 345 million euros of capital investment. The rest of their investments account for as much as 206 million euros in operating costs (salaries, taxes and contributions, electricity and water bill) that Porto Montenegro had in these 11 years of business. It means that the administration of Prime Minister Duško Marković (DPS) is a strange account, in which foreign investments include the fees, taxes, and overheads paid by a Montenegrin company - Adriatic Marinas from Tivat, which is developing the project of Porto Montenegro.
 
According to the latest government information, Adriatic Marinas invested EUR 14.46 million in Porto Montenegro from July to the end of December, which is less of the planned investments of EUR 15.69 million in the period.
 
Adriatic Marinas and its sister companies employ 497 people in the Porto Montenegro project, while 63 others work for the company Securitas, operating security for the entire complex. According to government data, around 400 employees work at the supermarket and catering facilities in Porto Montenegro during the summer season, which reduces to 220 workers during the winter. The government claims that the average number of yacht crew members in the Tivat marina during the high season is 1,200, while from October to May it is reduced to only 200. At the construction site of two new buildings of that complex, at the end of November, Strabag and its subcontractors employed 216 construction workers.
 
Source: Sinisa Lukovic, Boka News
 
06 Jan 2019, 21:51 PM

06 January 2019 - On Friday, January 4, Aleksandar Kapisoda, a German of Montenegrin origin, presented the new digital currency – perper, at the Consulate General in Frankfurt.

Kapisoda, an Internet communications engineer and digital technology scientist at a German pharmaceutical company, decided to "resurrect the currency of the Kingdom of Montenegro in a form appropriate for the 21st century" and to deliver his intellectual property as a gift to Montenegro, as reported by the news agency “Pobjeda”.

This project was dedicated to the anniversary of the Christmas rebellion, according to the Diaspora Cooperation Council.

The project by Kapisoda – perper digital currency, is equivalent to bitcoin, or online payment solution or method.

"The main wish of Aleksandar Kapisoda is to use the cryptocurrency perper for those transactions of the diaspora which fund humanitarian and social projects that would benefit the people of Montenegro. However, if the currency gets accepted by a larger number of users, he agrees that the currency can be used for business transactions such as direct investments in the economy of Montenegro," they stressed from the Council.

With this project, Kapisoda has given his support on the path of digitisation to the people of Montenegro, which paves the way for business in the digital world, say the representatives of the Council.

General Consul Karadžic is pleased that the first Montenegrin cryptocurrency saw the light of day on the anniversary of the Christmas Insurrection.

Source: Investitor

06 Jan 2019, 17:48 PM

The creation of a domestic cigarette brand would be significant for the further development of the tobacco industry in Montenegro, said the Executive Director of the New Tobacco Combine Podgorica (NDK), Savka Darmanović. She spoke about the plans of the company for 2019, among which is the increased production and purchase of tobacco from individual producers, as well as the launch of new capacities and the opening of 90 jobs.


"Since the end of September, we have produced six cigarette brands. We continue with the introduction of new brands, and we are working on the further expansion of the assortment. All three production lines, one for producing king size cigarettes, another super slim and third for the production of a cigarette filter, are operating in the installed capacity. Production is carried out concerning the standards of the profession, established norms and fulfilling the regulatory obligations that the new management has set as a priority task. Precise records and cost monitoring, planning, performance measurement and production efficiency with the implementation of new software solutions are integrated into the modern system of work organization and quality management," says Darmanović.

As far as employment is concerned, she added that 56 domestic workers work in NDK, of which 80 percent are in the production department.

"Equipment at the factory is modern, new and therefore demanding to handle. Due to this, BMJ industries occasionally engages their workforce in the process of installing production lines, commissioning, testing and production, as well as training of domestic workers for operating the systems. The success of employees in production is continuous on production lines, but also in the organization of production in all phases," she said.

Darmanović said that the number of employees in this year will increase, because it is planned to build another facility for the primary production.

"Thus, by building the second phase and putting into operation the primary production hall, this number will be around 90. In this plant, tobacco will be purchased, processed and prepared for the secondary production. Currently, the purchased tobacco is sent for processing outside Montenegro. Activation of the planned plant will also create conditions for the processing of tobacco producers from the region, which will enable an increase in production and lower costs, and thus increase revenues to the company. The production process will be rounded up in financial and technological terms," she announced.

According to her, depending on the business plans and the situation on the tobacco market, it is possible to introduce and shift work for additional production, which would also employ the new workforce.

"Due to the free business zone of NDK, the benefits to investors are also numerous, especially for those oriented to exports. It is extremely important that, on the example of such investments, with significant effects of transfer of technologies and knowledge and with direct additional employment, we include domestic companies, small and medium enterprises as subcontractors. By realizing their services and products, they additionally increase their capacities and placements by improving the overall business and contributing to the development of the economy as a whole," said Darmanović.

According to the data of the competent service, out of 45 local producers, NDK bought 39,000 kilograms of tobacco worth 75,000 euros.

"The basic plans of NDK have so far been focused on the European and the Middle East markets, of course, not limiting exclusively to the mentioned destinations. Considering the quality cigarettes of 20 brands and recognizing them as such, the distribution and market positioning have been facilitated from the very beginning. In addition to exports and employment, it would be good to create a home-grown brand of cigarettes, which is very important for the further development of the tobacco industry in Montenegro. We are also planning to intensify the efforts of services and management at the beginning of this year aimed at increasing the production and purchase of tobacco from individual producers. Management intends to continuously create and improve working conditions, educate employees and provide opportunities for further advancement and improvement, "said Darmanović.

Text by Vikend novine, on January 5th 2018, read more at CdM

06 Jan 2019, 17:45 PM

The construction of the main bus station at Šištat in Igalo should begin this year.

The construction of a new bus station and various locations where it should be built has been discussed for more than ten years - projects and tenders were made and then cancelled.

"We finally left the deadlock. For years, this project has not been realized due to the search for its location and thus precious time was lost. Now geo-mechanical works have been done; the preliminary design has been completed by arch. Eng. Veljko Radulović and now it is submitted for the approval of the state chief architect. After receiving the approval, the design and final announcement of the tender for the selection of contractors would be done," said the president of the municipality, Stevan Katic.


In the capital budget for this year, the allocation of million euros is planned for this purpose, which will not be enough, therefore the remaining budget will be provided for the 2020 budget.

"We remain at the idea of working the first phase independently, because it is a cost-effective project, while the next phase will go through a public-private partnership. It is planned that the road by which the approach to the bus station will be done continues towards the settlement Bare, which will contribute to the development of this part of Igalo. We have already issued several building permits to the company "Vildor", which builds 27 buildings and a hotel in that area.

"By building the bus station, Herceg Novi, i.e. Igalo gets a new resource, not just that facility, but a new road, parking spaces, underground garages, shopping mall and accommodation facilities," said Katić.

Previously, DPS councilors assessed that the location for the construction of the Bus Station at Šištat in Igalo is unfavorable because it is near the health institution Institut Dr Simo Milošević.

The present main bus station was built almost seven decades ago and has the lowest-E category. At the beginning of December last year, the company “D Station” purchased the object for 360k euros from “Vektra Boka”.

We remind that eight years ago the Municipality of Herceg Novi had announced a tender for the construction of the Bus Station, which was submitted by three contractors - two from Herceg Novi and one from Croatia. It was planned to build the station as a private-public partnership. At that time, a preliminary design was made, and the investment was estimated at 7.5 million euros.

Text by Slavica Kosic, on January 4th 2018, read more at Vijesti

06 Jan 2019, 17:42 PM

January 6, 2019 - Last year, Tivat Airport finished with a turnover of 1.245.999 passengers, which is 10.3% better than in 2017, which was a record year in the operation of this airport. Executive Director of Tivat Airport, Rade Marić, told “Vijesti” that last year in Tivat, a total of 623,543 passengers arrived, while 622,456 people left it. A total of 6,616 aircraft landed and a total of 13,631 take-off and landing operations were carried out on the airstrip of the aircraft, that is, on the runway along Tivat bay. The number of operations completed in 2018 is 7.3 percent higher than a year earlier.

Tivat Airport has been intensively preparing for the upcoming summer tourist and IATA flying season starting on March 31st, which will be characterized by an additional increase in the number of airlines that operate with this airport, as well as the opening of several new destinations that will fly from Tivat. The particularity of the upcoming season is that at Tivat airport next to the regular companies that fly in the season, several new national airline companies will appear that will open their lines for Tivat. Thus, from April 13th, German Lufthansa will fly twice a week to Tivat, on Saturdays from Munich, and on Sundays from Frankfurt. Seasonal flights from London to Tivat have also been announced by the British national airline British Airways.

Text by Sinisa Lukovic, on January 4th 2018, read more at Vijesti

06 Jan 2019, 15:59 PM

05 January 2019 - Dynamic economic growth is Montenegrin reality in this and the forthcoming years as well. Opening new jobs remain the government’s first economic priority. The Government of Montenegro has been analyzing different scenarios for increasing minimum incomes, vice-president for the economic policy and agriculture minister, Milutin Simović stated.

“Our economy increased by 4.7% in 2017 and 4.8% in the first half of 2018. The growth rate in the 3rd quarter rose to 5% thus positioning Montenegro in the 3rd place compared to the region and the European Union (EU). These results confirmed assessments of the relevant international organizations, such as the IMF, World Bank and credit agencies, which claimed that Montenegro had achieved positive results thanks to the government’s efforts in the process of fiscal harmonization. Fiscal consolidation represented a huge challenge to us, as we did not want to give up on development. It was tough but, we did it,” said Simović.

Such results, he added, have been achieved thanks to a wise and responsible state and economic policy, which was led especially after Montenegro restored its independence, and also based on the achievements in the Euro Atlantic and European integrations.

As for maintaining the economic growth, Simović said there would be many challenges but nothing that Government of Montenegro cannot deal with.

According to him, opening new jobs represents the first priority of the government’s economic policy.

“We have been implementing numerous systematic actions to reach this goal. The number of recruited people in Montenegro has been continuously increasing. In 2018, there were over 25,000 employees more than in 2011, and around 11,000 more when compared to 2016. We expect this trend to continue in 2019. New job opportunities are expected in those sectors in which we invested the most – agriculture and construction, and in all those areas directly or indirectly connected with tourism (in hotels and restaurants, trade, transport and manufacturing output)," concluded Simović.

Recently, the Statistical Office of Montenegro published a report on the unemployment rate, which states that the number of unemployed people in Montenegro reduced by 9.901 persons in 2018.

According to the same data, the unemployment rate was reduced from 22,13% that existed earlier to 17,87%.

“At the same time, survey unemployment rate, according to the Statistical Office of Montenegro (MONSTAT), amounted 14,1 % in the III quarter of 2018, whereas in the III quarter of 2017, it amounted 14,8%. A very encouraging fact is that more than a third of newly employed persons are younger than 30,” said the representatives of the Government.

The lowest unemployment rate is in Kolašin (5,93%), and the highest one is in Plužine (61,28%).

Source: Cafe del Montenegro

05 Jan 2019, 03:16 AM

03 January 2019 - The most common barriers that businessmen point out are grey economy and unfair competition, non-liquidity or recovery of debts, numerous and high taxes, fees at the local level, high contributions on wages, high capital prices and difficult access to loans, barriers in legal regulation, problems of insufficient flexibility of labor market, lack of professional staff and frequent amendments of regulations, said president of the Chamber of Commerce, Vlastimir Golubović.

“In order to overcome those barriers, we need to provide greater flexibility of labor market, and enable the employer more space to cancel the contract of employment in case the employee fails to justify the reasons for his employment, reduce labor costs, primarily contributions thereof. That will provide higher employment, reduce the grey economy and create new jobs. It will also increase minimum wage and consequently, reduce the unfair competition and increase the budget revenues,” says Golubović.

He thinks 2018 was a successful business year. Montenegrin economy recorded high growth rates.

“The highest contribution to growth was made sectors by tourism and construction. Hence, construction activity, enhanced by investment projects, increased by 31,5%. All parameters in the tourism sector recorded an increase,” explains Golubović.

According to him, exchange of goods with abroad increased too, due to increase in import and export. However, coverage rate of imports by exports is still very high.

“High import dependence of our economy is the consequence of narrow production base and high correlation between the import of goods and tourism. We should also add important infrastructure and investment projects related to the construction of new tourism capacities which are important import generators. The increase of services revenue reflects in the reduction of foreign trade deficit. Also, FDI is another economic growth generator,” said Golubović.

He pointed out that Montenegro was constantly working on improving the business environment.

“Business conditions are relatively favorable, and a great number of investors who are willing to invest in our state confirm it. However, the most recent World Bank report shows that we have to work on improving that environment more and with greater speed. That does not mean Montenegro regressed in that sense; it just means that other economies made faster progress in this segment. But, that is a signal that we still need improvement. First and foremost, in obtaining electricity connection, setting up business through the introduction of online company registration, real estate registration, payment of taxes, and many other areas. Business community requires further implementation of reforms and activities that will contribute to the additional improvement of the regulatory framework for investments and development of entrepreneurship,” said Golubović.

Although there are some areas where it is necessary to improve competitive capabilities of Montenegrin companies, it is obvious that the economy is making a progress in fulfilling the requirements for successful performance at foreign market, EU market in the first place.

“One of the positive examples I can give you is that the food manufacturers who got European export numbers for placing their products at the market with 500 million potential buyers. This is the result of efforts of our manufacturers they put in reaching the standards of high-quality and food safety,” said Golubović.

First man of the Chamber of Commerce says that Montenegro is considered to be an attractive destination for both foreign and domestic investors. That is thanks to the visible potentials in tourism, agriculture, transport infrastructure, energy sector, as well as thanks to numerous possibilities for investments in other sectors, especially in less developed regions.

“Ever since it regained its independence, around €9,2 billion have been invested in Montenegro. EU accession negotiation process means accepting new rules that entail harmonization of domestic legislation with the acquis communautaire. The competitive tax system and a set of encouraging measures for domestic and foreign investors is something that makes Montenegro even more attractive,” concluded Golubović.

Source: Cafe del Montenegro

04 Jan 2019, 23:57 PM

04 January 2019 - The newly founded Ukrainian airline SkyUp Airlines, based in Kiev, will open scheduled flights from four cities in Ukraine to Podgorica Airport for the upcoming summer of the IATA season.

As announced by SkyUp, they received licenses from the Ukrainian aviation authorities to open routes to Podgorica from Kiev, Lviv, Kharkov, and Zaporizhia. According to the State Aviation Administration of Ukraine, flights from Kiev will be maintained three times per week, while services from Lvov, Kharkov, and Zaporizhia will run twice weekly. The regulator issued permits to the carrier, enabling it to introduce the new routes from March 31 onwards.

The airline said in a press release that the cost of the ticket will be formed using a low-cost model without luggage and additional services. It will depend on the destination and time of buying the tickets.

SkyUp LLC operating as SkyUp Airlines is a Ukrainian charter airline, which began operating in May 2018. SkyUp was launched as a charter carrier but plans to commence scheduled flights next year. It boasts a fleet of three Boeing 737-800s and one B737-700, with orders for three B737 MAX 10 and two MAX 8 aircraft.

Find more information about the carrier at their official website.

03 Jan 2019, 01:26 AM

02 December 2019 - The previous year was marked by intensive cooperation between the Ministry of Economy and the Government of Montenegro. They worked on system solutions, and on a daily basis, tried to solve the problems encountered by business people. 

The Ministry of Economy has prepared a Law on Business Companies that is in the process of harmonisation with the European Commission. The law will allow exemption of the Assembly when it comes to single-member limited liability companies and for multi-member ones will be retained. 

"Registration of the company has been transferred from the CRPS (Central Registry of Business Entities) to the Tax Administration, and we do not want to return the centralization to anyone, but to everyone can communicate with the CRPS in their cities. In the next year we will improve electronic services in the part of what is related to the registration of the company, and on the other hand we will train people from the Tax Administration so that citizens can use this service electronically and in the cities where they live," as noted by the representatives of the Government of Montenegro.

The Law on Concessions is an example of good communication between the Government, the Ministry, and the Economy, where through the new solutions the answer to all the shortcomings from the past period was found. 

"The Law on Copyright and Related Rights implies more stringent control over the work of the author of music. The amendments to the Law refer to the field of joint exercise of copyright and related rights and harmonization with the 2014/26 / EU Directive on the collective exercise of rights. By adopting these changes, we will significantly improve transparency in the work of organizations for the collective exercise of rights and supervision of their work. The Intellectual Property Office (now as part of the Ministry of Economy) will have to issue a provisional tariff, and this will certainly affect all the problems that were related to the tariff for which the fee had to be paid to the association of music authors," said representatives of the Government of Montenegro.

The draft of the Law on Internal Trade has been drafted, and its adoption is expected after the holiday. In the trade sector that employs 37,000 people, Sunday will be declared non-working through a legal solution, and bylaws will bring solutions for exceptions respecting the tourist season and the basic living needs of citizens.

The Ministry of Economy contributes to the suppression of the gray economy through the adoption of the Law on Inspection Supervision in part relating to supervision in buildings that are not registered for the business activity. 

"We are trying to improve the Montenegrin economy from two aspects: by improving the infrastructure, through a project with the Montenegrin Electricity Distribution System to revitalize the distribution network in which it is planned to invest some 90 million euros in the next three years," underlined representatives of the Ministry of Economy.

Telecommunication infrastructure is very advanced. The adoption of the Law on the use of high-speed EC networks is being planned. Thus, there will be space for the cheapening of telecommunication services. 

"The Ministry of Economy has supported ten incentive programs. We decided that approximately 1 million 630 thousand euros would be available to the Montenegrin economy in the Ministry of Economy as one unified Competitiveness Facility. The Fund will be permanently open and available 365 days a year where the ministry, besides providing incentives, will also provide non-financial services in terms of developing business plans and assisting in applying as an intermediary to the economy and to all those who can give them financial resources," concluded representatives of the Ministry of Economy.

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