Montengro’s Council for Privatisation and Capital Projects adopts semi-annual report on implementation of Privatisation Plan for 2014

    Podgorica, Montenegro (22 October 2014) — Montenegro’s Council for Privatisation and Capital Projects adopted at its yesterday’s session the semi-annual report on the implementation of the Privatisation Plan for 2014.

    Given the obligations and duties prescribed by the plan, the meeting discussed the public calls for the sale of the share capital of the Institute “Dr Simo Milošević” and the Adriatic Shipyard Bijela, which have been issued within the reporting period.

    Bearing in mind that the tender for the sale of the Shipyard’s capital was declared unsuccessful, the Council concluded that after four unsuccessful tenders and the lack of interest for this model of privatisation, there is no purpose to issue a new call, but to attempt to find investors, through programmed bankruptcy, who will preserve the Shipyard’s main activities with a reduced number of employees, at the same time investing in the repair of yachts and mega-yachts.

    As to the Institute “Dr Simo Milošević”, a sole proper bid has been submitted by the International Wellness Group Limited and the negotiations on the conclusion of the agreement are underway, the meeting concluded.

    Activities being undertaken with a view to valorising the island Lastavice with the Mamula fortress are aligned with the set objectives, the Privatisation Council assessed, adding the negotiations on signing the agreement with the Orascom Development Holding, who has voiced interest, should be continued.

    Unlike that project, public calls for the valuation of the site between Njivice and Sutorine estuaries, as well as for the Bigovo -Trašte location, were declared unsuccessful, as the submitted offers did not meet the tenders’ requirements. The Council rejected as unfounded an objection from the Consortium LLC Lime Production and Billpoint Finance Group and accepted the decision of the Tender Commission.

    The Council also adopted the information on cancelling the agreement on land lease for the construction of a golf complex in Tivat and tasked the Secretariat for development projects, in cooperation with the Tender Commission, Metaloprodukt company and legal advisers of the Council for Privatisation and Capital Projects, to analise and submit as quickly as possible a proposal of future valuation of the land that was the subject of the agreement.

    The meeting accepted the proposal of the Ministry of Health on the termination of the agreement with the Austrian company IASON on financing, construction and use of PET / CT Centre under the BOT system within the Clinical Centre of Montenegro, stating that the investor’s fault and dely of the contractual obligations’ fulfilment, create conditions for the termination of the agreement.

    The meeting also endorsed the Tourism Ministry’s proposal to grant approval to the Budvanska rivijera to amend the joint venture agreement with Franeta Construction, recommending that a separate article in the joint venture agreement should define the amount of funds the company may reimburse to the Franeta Construction in case of de-expropriation, with the application of the existing methodologies and standards.

    Yesterday’s session also discussed the tender documents for long-term lease of the site Donja Arza in Herceg Novi and tasked the Tender Commission to issue a public call and consider other issues within its jurisdiction.

    Source: Government of Montenegro