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Privatisation and Capital Projects Council adopts Decision on 2020 Privatisation Plan

Privatisation and Capital Projects Council adopts Decision on 2020 Privatisation Plan
Published date: 27.01.2020 16:00 | Author: PR Service

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Podgorica, Montenegro (27 January 2020) – At its 19th session chaired by the President of the Council, Prime Minister Duško Marković, the Privatisation and Capital Projects Council passed the Draft Decision on the Privatisation Plan for 2020.

This year's Privatisation Plan includes only the methods of classic privatisation, but not the valorisation of tourist sites and companies due to the new opportunities provided by the recently adopted Law on public-private partnership.

In order to increase the competitiveness and efficiency of the functioning of companies, encourage foreign investment and entrepreneurship in all areas, increase employment and improve living standards, the following actions were proposed:

I. Preparation for launching public tenders for the privatisation of the following companies:
1. Hotel Group "Budvanska rivijera" Ltd. Budva (sale of shares after restructuring)
2. "Castello Montenegro" Ltd. Pljevlja (sale of shares)
3. "Institute of Black Metallurgy" AD Nikšić (sale of shares and/or recapitalisation)

II. Continuation of public tender for sale of following property:
* Location of former military barracks "Radoje Dakić”, in Zabljak

III. Sale of shares on the stock exchange:
* Ltd. "Agrotransport" – Podgorica;
* Ltd. "Metal produkt" – Podgorica;
* Ltd. "Montenegroturist" – Budva;
* "Crnagoracoop" Ltd. – Danilovgrad;
* "Novi duvanski kombinat" Ltd. – Podgorica and
* "Kotor projekt" Ltd. – Kotor.

The Council considered and proposed to the Government to adopt the Report on the work of the Privatisation and Capital Projects Report for 2019 with the Report on the Implementation of the Privatisation Plan for 2019 and the Report on the Implementation of the Conclusions of the Privatisation and Capital Projects Council for 2019. The Council noted increased transparency by publishing all documents on the site, which resulted in a marked decrease in the number of requests for free access to information.

The Council considered and did not approve the Report of the Tender Commission for privatisation on the results of negotiations for the conclusion of contracts for the sale of 56,4806% of the share capital in the Institute of Physical Medicine, Rehabilitation and Rheumatology "Dr Simo Milošević" Ltd. - Igalo with the Contract Proposal. The Council tasked the Tender Commission to declare the tender unsuccessful, which was the result of a lengthy and constructive discussion at the session. It was concluded that a single offer for the purchase of shares did not provide competition, and that there were significant changes both in the global market and in the economic, financial and legal system of Montenegro, which open new possibilities for the valorisation of the indisputable resource of the Dr Simo Milošević Institute. In the coming period, the competent departments will explore the possibilities and future process of the Institute's vlaorisation, given the exceptional development potential that health tourism has in Montenegro.

The Council also considered the Report on the results of the tender for the long-term lease of land at the site "Kabala for" in Herceg Novi with the Decision on the announcement of the tender unsuccessful, Report on the factual findings regarding the Agreement on the sale of shares of the company " Kontejnerski terminal i generalni terete (Container terminal and general cargoes)" Ltd. Bar prepared by the Controller - Ernst & Young Montenegro - Podgorica, as well as the Report on realised investments in accordance with the Decision on leasing of land in the Luštica Peninsula - Herceg Novi for the period 20.12.2018 years - 30.11.2019. The Council also got acquainted with the Information on realisation of activities under the Agreement on long-term lease of the military-tourist complex "Mediteran (Mediterranean)" Žabljak for 2019, and also considered the Report on realised investment and other activities based on Annex no. 1 of the Lease Agreement for the Hotel "Kraljičina plaža" Budva, in the period from 2016 to 2019.