Visit-Montenegro.com : Rapid Concessions to Give Boost to Investment

Podgorica – Montenegrin government adopted Drat Law on Concessions yesterday, which envisages speeding up of procedures, competitiveness and transparency in the field of concessions’ awarding. The aim, as it has been explained is to give boost to future investments.

Minister of Economic Development, Branimir Gvozdenovic stated that the right to concessions would be held by the Parliament, the government and the municipalities, adding that the Law on State Property would be the one that would regulate the amounts for which the concessions would be cleared by the Parliament.

“These will probably be concessions higher than Euro 300 Million”, Gvozdenovic said after government’s session.

In comparison to the existing law which envisages provision of concessions to 30 years, draft new law does not define the period of concessions. This period would be determined in relation to the public interest, object of concession, time of the investment’s return and achieved incomes.

Gvozdenovic explained that this type of solution has special significance when it comes to the most important infrastructural objects of great value, whose return investment would exceed current maximum deadline.

“The novelty in this Draft Law is the introduction of self-initiated offer which is submitted by a party interested to realize the infrastructural project which has significance for the state itself.

This offer must contain technical and technological solutions and other elements which include public interests and economic justification for the project. Precondition for the conclusion of such concession agreement is the agreement of the Parliament”, Gvozdenovic has clarified.

Another new solution in this Law has to do with the harmonization with the EU-directives’ in the field of concession provision in the second instance, that is in the area of the competitive dialogue.

“Competitive dialogue is headed by the representatives of respective institutions and bidders who went through the pre-qualifying stage. Dialogue specifies technical and technical-technological, financial and legal solutions, as well as conditions for the concession.

After the best solution has been selected, bidders receive concession acts, buy off tender documentation and submit their offers for concessions”, Gvozdenovic said, adding that the deadlines and procedures would be two times shorter in comparison to the current solutions.

Draft Law also stipulates the foundation of the commission which would decide on the complaints submitted by the bidders, as well as produce the ranking of their offers. Commission would consist of a president and six members, two of whom would be selected by the Union of Municipalities and Union of Job-Providers. Introduction of tender commission, which would shorten the entire concession-giving procedure, has also been envisaged.

“A more simple procedure is introduced for concessions that would last up to three years. This procedure envisages system that would speed up the public discussions minimizes the deadlines, speeds up the work of tender commissions. Concession acts of smaller extent have also been envisaged”, Minister has said.

Draft Law does not define the height of concession fee. Concession acts provide recommendations for the height for each separate project.

Government has also adopted the Law on Environment and Law on Mountain Paths.

Law on Environment presents an umbrella law regulating the field and basis for the introduction of a set of regulations which would harmonize national legislature with the EU-recommendations.

Law envisages constant monitoring in the field, as well as the foundation of the data-base on the environmental polluters”, Minister of Tourism and Environmental Protection, Predrag Nenezic has said.

“Draft Law on Mountain Paths is focused on the development of tourism in the mountain area of Montenegro, which will be based on mountain climbing and hiking.

This segment of tourism is rather important, as Europe itself has 35 million people who are interested in this type of offer”, Nenezic has clarified.

Minister has emphasized that the adoption of such Law would allow Montenegro to become leading destination for this type of tourists, throughout the year.

(4 July 2008)

By: Ma.M.