Press release from 30th Cabinet session

The Montenegrin Cabinet, at its 30th session held on 1 July 2021, chaired by Prime Minister Zdravko Krivokapić, adopted the Information on the need to form working groups for programming the Instrument for Pre-Accession Assistance of the EU for the period 2021-2027 (IPA III) and Information on the progress in the process of negotiations under a cluster approach.

The Information on the need to approve the payment of funds to the limited liability company for the transport of passengers and goods by air "ToMontenegro" was adopted and the Decision approving the payment of funds to the Company in the amount of 3,000,000.00 euros, which will increase the capital of the national airline to 26,000,000.00 euros. This continues the implementation of the Decision on the establishment of the Company which stipulates that the Government, as the sole founder, will pay the amount of capital of EUR 30 million within one year from the date of registration of the Company in one or more tranches, in order to provide adequate funds for normal operation and efficient performance of the company's activities.

In accordance with the Law on Energy, the Cabinet adopted a Decision on the allocation of budget funds to encourage the production of electricity from renewable sources and high-efficiency cogeneration. The decision allocates the amount of one million euros, determined by the Law on Budget of Montenegro for 2021 for stimulating the production of electricity from renewable sources and high-efficiency cogeneration, to the limited liability company "Montenegrin Electricity Market Operator - Podgorica".

The Cabinet adopted the Information on the establishment of the Commission for monitoring activities related to hydrocarbons operations in order to protect the environment and the Decision on the establishment of the Commission for monitoring activities related to hydrocarbons operations in order to protect the environment. The task of the Commission is to coordinate the work of state administration bodies that have competencies in the field of hydrocarbon research for environmental protection, participate in monitoring the state of the environment and assessing the application of environmental protection measures, and enable better and more efficient exchange of information between state administration bodies.

The Information states that exploratory drilling of two wells has been carried out in waters offshore Montenegro for almost two months now, with the aim of exploring hydrocarbon potential. Having in mind the risks that the oil and gas industry brings with it, the role of the State in controlling the activities is of special importance. It was emphasised that, in addition to the fact that the potential discovery could significantly affect the change of the economic situation in the country, economic progress must not be achieved without respecting the highest standards of environmental protection.

The Cabinet adopted the Annual Forest Management Programme for 2021 and the Information on the need to provide assistance to milk producers.

The Cabinet adopted the Information on the implementation of the Programme line for incentives for direct investments for 2020, the Decision on allocation of funds for incentives for direct investments and accepted the Agreement on the use of funds for incentives for direct investments between the Government of Montenegro and beneficiaries. The Information states that the competent Commission, based on the Public Invitation for participation in this Programme line, began the evaluation of one investment project - the company Calexico from Podgorica. The Commission assessed that the investment project met all the defined criteria and its evaluation created the conditions for the beginning of the procedure for approving the allocation of funds for investment incentives. The project envisages that the value of investments will amount to a total of € 306,116.53, which will create 24 new jobs.

The Information on activities on the implementation of projects in the field of energy efficiency for the period October 2020 - June 2021 was adopted. To continue the implementation of the Energy Efficiency Project in Montenegro, through phase two, the Government received a loan from the International Bank for Reconstruction and Development (IBRD). Within the first phase of the project (MEEP 1), which ended in March 2018, 25 public facilities (9 educational and 16 health) were energetically improved. The implementation of the second phase of the project (MEEP 2) began on 1 September 2018, and is planned to last until 31 December 2023. The value of the project budget is 6 million euros.

The Cabinet adopted the Information on the representation of minorities in local self-government bodies, companies and public institutions founded by the Capital City, Old royal Capital or Municipality.  From the obtained data, it can be concluded that the participation of minorities at the local level is higher than in the previous period, but work still needs to be done to implement what is provided by the legislation governing this area. In this regard, it was assessed that it is important to continue and/or improve the implementation of long-term activities in order to educate and train a certain number of minority staff, with financial support from the state.

The Information on the organisation of the 14^th Summer School for Young Diplomats "Gavro Vuković" was adopted, and the Agreement between the Ministry of Foreign Affairs of Montenegro and the North Atlantic Treaty Organisation (NATO) on financial support for the project of the Summer School for Young Diplomats "Gavro Vuković" was accepted. The Information states that the summer school for young diplomats "Gavro Vukovic" is one of the activities recognised in the Work Programme of the Government of Montenegro for 2021, which contributes to strengthening the capacity of diplomatic staff. Funds for the organisation of this year's Summer School were provided by the United Nations Development Programme (UNDP) which has been a partner in this project since 2008, while additional interest in supporting this project has been expressed this year by the NATO Department of Public Diplomacy (NATO PDD) in the amount of 9,300 euros.

The Cabinet adopted the 2021 Action Plan for the implementation of the Strategy for the development of the social protection system for the elderly for the period from 2018 to 2022, and the Report on the Implementation of the Action Plan for 2020.

The 2021 Action Plan for the implementation of the Strategy for the development of the social and child protection system for the period from 2018 to 2022 was adopted, as well as the Report on the Implementation of the Action Plan for 2020.

The Cabinet adopted the 2021-2022 Action Plan for the implementation of the Strategy for the development of Postal Services in Montenegro for the period 2019-2023. By adopting this Action Plan, the Government harmonises its goals and policy of protection of freedom of market access, interests of economy, citizens and users of postal services, with EU regulations and standards and ensures availability of universal postal services and development of new, modern postal services.

The Report on the implementation of the 2020 Action Plan for the implementation of the Programme for the control and prevention of non-communicable diseases in Montenegro for the period 2019 - 2021 was adopted, as well as the Action Plan for 2021. It was emphasised that in the previous year, which was marked by the fight against the coronavirus epidemic, most of the planned activities were not implemented, and some activities have only just begun, so it is not realistic to plan new activities for 2021. The unrealised and partially implemented activities from the previous Plan have been transferred to the Action Plan for 2021. The funds for its implementation in the amount of € 401,000.00 are foreseen in the Budget for this year.

The Cabinet adopted the Information on the need to initiate the procedure of exclusion or prohibition of storage of tobacco products in the area of the Free Zone of the Port of Bar. The Information points out that the reports of international partners expressing concern over the large volume of illegal transit and illegal placing on the market of tobacco products on the territory of Montenegro, with special emphasis on activities in the Free Zone of the Port of Bar, indicate the existence of security risks. Bearing in mind that one of the priorities of the Government is to take decisive measures to completely stop such illegal activities, which are clearly damaging the budget and the international reputation of Montenegro, it was assessed that the competent authorities must take appropriate measures to end illegal activities. The Cabinet must consider the situation regarding the application of the Law on Free Zones, as well as the risks that the implementation of this act carries, especially regarding the transit and placing on the market of tobacco products. In this regard, the Ministry of Finance and Social Welfare was tasked, in cooperation with the Ministry of Capital Investments and the Ministry of Interior, to prepare and submit to the Government an analysis on the possibility of excluding or banning storage of tobacco products in the Free Zone of the Port of Bar.