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Press release on Cabinet's decisions made on 27 August without holding session

Published date: 28.08.2020 14:00 | Author: PR Service

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The Montenegrin Cabinet, on Thursday, 27 August 2020, without holding a session and based on the obtained consent of the majority of the Cabinet members, adopted financial agreements with the European Commission, which created a legal basis for granting EU budget support of EUR 40.5 million in response to the coronavirus epidemic.

The Cabinet adopted the Information on the credit arrangement between the European Investment Bank (EIB) and the Investment and Development Fund of Montenegro (IRF). "IRF COVID-19 response for SMEs and mid-caps" with the Proposal of the Financing Agreement and approved the Financing Agreement between the IRF and the EIB.

Due to the economic crisis caused by the coronavirus pandemic, the European Union launched a programme in Zagreb in April 2020 to support the recovery of the economies of the Western Balkans. The programme also envisages a loan of EUR 500 million approved by the EIB in June 2020 for the public sector and national promotional banks in the countries of the region. The first loan approved to Montenegro will primarily be intended to support the liquidity of the Montenegrin economy, the procurement of working capital and investments that should give additional impetus to the economic recovery of Montenegro in the post-pandemic period. The value of the contract is EUR 50 million, provided that at least 80 percent of the funds are intended for mid-caps (more than 250 workers). The agreement also provides incentives for companies that employ young people in the form of additional interest rate reductions within the European Initiative for Youth Employment and Training.

The Cabinet was informed about Amendment 1 to the Financial Plan of the Serbia and Montenegro Air Traffic Services (SMATSA) for 2020 and approved the Plan which contains new data on the reduction of revenues due to the restriction of air traffic caused by the coronavirus pandemic.

The Cabinet reviewed and adopted the Information on the implementation of the Wage Subsidy Programme in order to mitigate the negative effects of the coronavirus epidemic. The Information states that subsidies are provided to employees in businesses closed due to orders of the Ministry of Health, employees in the sectors of tourism, catering and public transport of passengers in road transport, employees who have been ordered quarantine or isolation, as well as employees on paid childcare leave, and that it is planned to continue supporting new employment until the end of 2020.

The Information on the realisation of urgent non-standard procurements and costs in the health system caused by the coronavirus pandemic was adopted.

The Cabinet adopted the Decision on granting a concession for economic use of the shipyard port Bonići - Tivat and accepted the Concession Agreement for the economic use of the shipyard port Bonići - Tivat between the Government of Montenegro and the company "Navar Incorporated" from Tivat.

The concession is granted for a period of 30 years. The investment programme envisages investments worth EUR 13,900,000.

The Information on the request of joint-stock company "Luka Bar" - Bar for the award of a concession for detailed geological research and exploitation of technical building stone of the deposit "Volujica", Municipality of Bar, by excluding the public tender was adopted. The Cabinet passed a Decision on the award of a concession for detailed geological research and accepted the corresponding Concession Agreement.

The concession is granted for 30 years. The total concession fee is EUR 1,787,138.00.

The Information on the amendment of the Infrastructure Priority List was adopted. 

The list is supplemented by projects: 1) Revitalisation of the fortification heritage of Montenegro, the city walls of Kotor; 2) Improvement of the wastewater management system of the Municipality of Pljevlja, the second phase of the sewerage network; 3) Reconstruction of the embankment system on the river Bojana in Montenegro and 4) Improvement of the infrastructure in the Port of Bar.

The Cabinet adopted the Information on the use of the "Tourism Insight" platform and accepted the Draft Agreement - a statement on the scope of the project, between the Ministry of Sustainable Development and Tourism and the company Mastercard. The platform should enable monitoring of tourist trends, guest consumption, interests, etc.

By amending the relevant Cabinet Conclusion, assistance to the Republic of Albania for repairing the consequences of the earthquake was increased from the original EUR 100,000 to EUR 500,000.

For full press release in Montenegrin please click here.