Montenegro’s Cabinet session

    Podgorica, Montenegro (18 December 2014) – At today’s meeting, the Government adopted the platform for conducting negotiations with bidders who applied on the public call for awarding concessions for the production of hydrocarbons in the offshore of Montenegro, as a final step in implementing the first phase of the project.

    The Government has already prepared the necessary legal framework which is being implemented in this kind of industry, including models of the concession agreements which reduce negotiation with the companies to a minimum.

    According to the public call, the Government retains the right to negotiate with bidders regarding the surface to which the Treaty applies, duration of particular phases of the Treaty, content of the mandatory working programme, amount of the guarantee in case of bidder’s failure to meet the contract’s requirements and training programme for the administration authorities and other relevant institutions. After the completion of the negotiations, a statement on the tender proceeding will e submitted to the Government, along with a proposed contract and draft decision on awarding the concessions. Final decision on the award of the concession will be issued by the Parliament of Montenegro.

    In order to harmonise Montenegrin legislation with the EU Acquis, the Cabinet also approved the Draft Law on Bankruptcy and Liquidation of Insurance Companies. The law regulates the manner of conducting liquidation and bankruptcy proceedings of insurance companies and branch offices of foreign insurance companies, as well as the rights and obligations of the participators in these processes. In order to ensure more transparent and efficient proceeding before the court, the text of the law is harmonised with the Law on Insurance and Bankruptcy and Liquidation Law.

    For the purpose of consolidating public finances of local authorities, the Government proposed amendments to the Law on Immovable Property Tax. These amendments are aimed at increasing revenue from real estate taxes, raising the taxation lower level, enabling municipalities to introduce higher or lower tax rates for certain categories of immovable properties.

    Montenegro’s Cabinet also approved today the amendments to the Law on Compulsory Social Insurance prescribing for the increase of health insurance contribution by 0.5%, which is to be pid by employers. The novelty is aimed at raising the quality of health services and better health protection of employees.

    The Government also proposed amendments to the law on taxes for the access to certain services of public interest and use of tobacco products and electro – acoustic and acoustic devices. Given that the current law is temporary, these amendments prescribe for the extension of its implementation in order to provide additional EUR 1 million of income at the annual level.

    Source: Government of Montenegro