Press release from 33rd Cabinet session

The Montenegrin Cabinet, at its 33rd session held on 22 July 2021, chaired by Deputy Prime Minister Dritan Abazović, adopted a Decision banning the storage of tobacco products in the free zone "Port of Bar" with an Analysis of the possibility of excluding or banning the storage of tobacco products from areas of the free zone "Port of Bar". The said Decision prohibits the storage of tobacco products in order to prevent a possible risk to the security of the state. At the same time, it is proposed to continue the intensified customs supervision within the Free Zone "Port of Bar" and to introduce enhanced supervision in the Free Zone "New Tobacco Plant".

The Information on the implementation of the National Action Plan for the use of energy from renewable sources until 2020 for the period 2018-2019 was adopted with the Report on the implementation of the National Action Plan for the use of energy from renewable sources until 2020 for the period 2018-2019. Based on the Report on the implementation of the National Action Plan for the use of energy from renewable sources until 2020 for the period 2018-2019, the Cabinet has determined that the national target of 33% share of energy from renewable sources in total final energy consumption in Montenegro has been met (in 2018 it was 39.75%, and in 2019 38.69%) and that in accordance with the Law on Energy, the Government ceases to encourage the construction of new facilities for the production of energy from renewable sources.

The Cabinet adopted the Draft Law on the protection of employed citizens of Montenegro who are sent to work abroad with the Report from the public discussion. The adoption of the new Law stems from the need to harmonise it with the new Labour Law. This will more comprehensively regulate the protection of those employees who are sent to work abroad.

The Decision on determining the maximum retail price of white wheat bread was adopted. This decision sets the maximum retail price of white wheat bread type - 500, in order to prevent severe economic and social consequences caused by the COVID-19 pandemic, and loaves from 500g to 600g in the amount of 0.50 EUR and loaves from 300g to 400g in the amount of from 0.40 EUR per piece. This decision is of a temporary nature and will be applied until 31 December 2021.

The Cabinet adopted the Decision on Amendments to the Decision on the formation and composition of the Operational Team of the Open Government Partnership. The reason for adopting the Decision is the harmonisation with the Decree on the organisation and manner of work of the state administration, in order to obtain the conditions for making a decision on the appointment of members of this body.

The Information on the payment of the fee to KfW Bank for the extension of the use of funds from the loan for the project Water Supply and Sewerage in the coastal region phases V and V-2 was adopted. The Government of Montenegro, in cooperation with the German Development Bank (KfW) and the coastal municipalities (Herceg Novi, Kotor, Bar, Ulcinj and Tivat) has been implementing the project of water supply and wastewater disposal in the coastal region since 2003. The slow implementation of the project led to the fact that the funds were not used until 30 December 2020, when the loan availability expires. Bearing in mind that project activities in both phases have not been completed, KfW has expressed readiness to extend the availability of both loans until 30 December 2024. In accordance with the loan agreements, the bank will charge a fee of around 1.6m euros for these purposes. Bearing in mind that the cost of canceling credit funds would be almost 3 and a half times higher than the cost of extending the use of funds, and that the cancellation of concluded contracts would cause immeasurable damage to Montenegro, the Cabinet authorised the Minister of Finance and Social Welfare to give consent to KfW Bank to extend the availability of loan funds for this project.

The Cabinet adopted the Final Report on the Implementation of the Public Financial Management Reform Programme 2016-2020, with a review of activities for 2020, with the Action Plan and Indicator Passport and a one-year transitional Action Plan for 2021.

At today's session, the Cabinet adopted Conclusions regarding the valorisation of the land of the salt works "Bajo Sekulić" in Ulcinj. The Ministry of Economic Development, the Ministry of Finance and Social Welfare, the Ministry of Ecology, Spatial Planning and Urbanism and the Ministry of Agriculture, Forestry and Water Management, in cooperation with other state bodies, are tasked to prepare and submit to the Government within 60 days a Proposal for valorisation of the land of the salt works "Bajo Sekulić" in Ulcinj, which is owned by the State of Montenegro.

The Cabinet adopted the Information on monitoring the implementation of the Land Lease Agreement for the construction of the Briska Gora solar power plant in the Municipality of Ulcinj and accepted the text of the Fourth Amendment to the Land Lease Agreement for the construction of the solar power plant. Considering that the delay in the implementation of the Agreement was due to objective reasons, the Cabinet adopted amendments to the Agreement which extend the date until 31 December 2021.

The Information on the necessary financial resources for the implementation of the IPA project "Improvement of the section of the railway line Bar - Vrbnica - Reconstruction of the railway station Bijelo Polje" was adopted. The information states that the goal of the project is to adapt the building of the Bijelo Polje railway station. The annual national programme IPA 2017 also contains the above project with a total value of 1,375,000.00 euros, which consists of three contracts:

• Development of the main project and supervision over the execution of works (200,000.00 EUR)
• Revision of the Main Project (10,000.00 EUR)
• Execution of reconstruction works at the border railway station in Bijelo Polje. (1,165,000.00 EUR - initial budget)

The first two contracts were successfully implemented, while the designer - after the preparation of the Main Design - estimated the value of the third contract at EUR 1,927,456.33, which was confirmed by the auditor. As the difference of EUR 762,456.33 cannot be covered by the IPA fund, and having in mind the national as well as regional significance of the mentioned project, the Cabinet tasked the Ministry of Finance and Social Welfare to plan the missing funds for implementation of this project with the Draft Law on Budget for 2022.

The Cabinet adopted the Information on the necessary financial resources for the implementation of the IPA cross-border cooperation project Albania, Montenegro, Italy multimodal transport connectivity (ALMONIT MTC). During the preparation of the Preliminary Design, the designer estimated the value of works for the construction of the first phase of the Port of Virpazar at 3,706,421.14 euros, which in relation to the financial resources allocated by the project budget for works in the amount of 2,150,000.00 euros, represents a difference of 1,556 .421,14 euros which cannot be financed through the project. On that occasion, the Cabinet tasked the Ministry of Finance and Social Welfare to plan the missing funds for the implementation of this project with the Draft Law on Budget for 2022.