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Privatization Council: Unacceptable project delays due to inefficiency of competent administrative bodies

Privatization Council: Unacceptable project delays due to inefficiency of competent administrative bodies
Published date: 12.03.2021 16:30 | Author: PR Service

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The Privatisation and Capital Projects Council held its second session today, chaired by Prime Minister and President of the Council Zdravko Krivokapić.

The Council adopted the Report on implemented investments in accordance with the Decision on long-term lease of land on the Luštica peninsula - Municipality of Herceg Novi for the period 12.2019 - 30.11.2020.

Considering the problems in the realization of this significant investment, the Council said that the delay of the beginning of the project implementation is unacceptable because the state administration and local self-government bodies did not fulfill obligations in an efficient and timely manner. On that occasion, the Council supported the proposal to form an inter-ministerial operational team with the task of accelerating the resolution of specific problems and overcoming administrative barriers in the implementation of this project.
 
Furthermore, the session pointed out that the resolution of systemic problems faced by investors in Montenegro will be in the focus of the Competitiveness Council, which has been reorganized.

Long-term land lease agreement of 11.9.2009 between the Government of Montenegro and the companies Northstar LLC Podgorica and Equest Capital limited - Channel Island was adopted. The Contract envisages the lease of a land site of 510,927 m2 for a period of 90 years. The Contract defines total investment obligations in the amount of EUR 210 milion, of which the minimum obligations in the first phase are EUR 80,000, which the Consortium has committed to invest within 5 years from the date of the beginning of the investment period.

The Council adopted the Information on the activities realized based on the Agreement on the long-term lease of the military-tourist complex "Mediteran" Žabljak for 2020.
 
Having considered the Information, the Council concluded that there was a violation of the provisions of the Long-Term Lease Agreement relating to the construction start deadlines. The Council will propose to the Government that an additional deadline should be set for resolving the problems, and that, if they are not resolved, the procedure for terminating the Agreement should be initiated.

The contract on long-term lease of the military tourist complex "Mediteran" Žabljak was concluded on 21 November 2018 between the Government of Montenegro and the Consortium "CG SKI", which consists of companies CG Ski LLC and Baltic International Trading LTD Estonia. The subject of the lease is land of 13,951 m2 owned by Montenegro, for a period of 30 years. The investment obligation of the Lessee amounts to EUR 5,006,660.00, and the deadline for completion of works is 20 months, i.e. no later than 27 months from the beginning of works.

In accordance with the conclusion from the previous session, the Council adopted the Decision on the appointment of the Commission for market value assessment. The task of the Commission is to prepare a draft opinion on the requests submitted to the Council, related to the application of Article 419 of the Law on Property Relations.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO