Press release from the 122nd Cabinet session

The Montenegrin Cabinet held its 122nd session, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Proposal for the Law on Amendments to the Law on Prevention of Corruption.

During the discussion, it was emphasized that the proposed amendments are aimed at improving the anti-corruption framework, the integrity framework, and the rules on conflict of interest in public procurement. The proposed measures enable a comprehensive review of existing regulations and policies in order to ensure the effective prevention of corruption in procurement procedures. The amendments are also aimed at enhancing the work of the Agency for Prevention of Corruption, addressing identified shortcomings in past practice, and strengthening the legal framework for more efficient prevention and suppression of corruption. Furthermore, the amendments are aligned with international standards and practices, as well as with the need to modernize outdated solutions that cannot be adequately addressed through judicial practice alone. Particular focus is placed on increasing transparency, integrity and efficiency in the areas of public procurement and state aid, in line with the Reform Agenda of Montenegro for the period 2024–2027 and relevant EU instruments. The objective is to strengthen the anti-corruption framework, conflict of interest rules and control mechanisms in high-risk areas. The envisaged measures provide for enhanced oversight and risk reduction, while strengthening trust in the management of public resources. In addition, an obligation is introduced for members of commissions in public procurement, privatization, public-private partnership and concession procedures (where the value exceeds EUR 250,000) to declare their income and assets, given that these are areas with an increased risk of corruption.

The Cabinet also adopted the Proposal for the Law on Amendments to the Law on Construction Products, with the aim of aligning it with the acquis communautaire of the European Union. It was noted during the discussion that the existing law had already been harmonised with the relevant EU legislation, but that subsequent amendments at the EU level necessitated further alignment of national legislation.

The Proposal for the Law on Amendments to the Law on the Bar–Boljare Motorway was also adopted. The proposed act repeals provisions stipulating that, in cases where the motorway project is implemented on the basis of an intergovernmental agreement and a loan arrangement, and where the State of Montenegro is the borrower and investor, the contractor is subject to a 0% tax rate and exempt from customs duties on construction materials, equipment and plants intended for motorway construction. It also repeals provisions exempting foreign nationals employed by the contractor from personal income tax and mandatory social security contributions.

The main objectives to be achieved through the adoption of the proposed act are:

• Increasing budget revenues and ensuring more stable financing of public needs;
• Establishing a fairer tax system, by eliminating privileges and ensuring a more balanced distribution of the tax burden among all economic operators;
• Preserving fair market competition, given that tax incentives distort equal business conditions;
• Aligning with European standards and practices, as special tax privileges are often treated as a form of incompatible state aid;
• Contributing to the reform agenda in the field of public finances and the fight against the grey economy through a transparent and non-discriminatory tax framework.

These objectives are aligned with the Programme of Accession of Montenegro to the European Union, Chapter 8 – Competition.

The Cabinet adopted amendments to the Proposal for the Law on Amendments to the Law on Games of Chance, with the aim of further clarifying legal provisions and eliminating ambiguities identified in practice.

The Cabinet adopted the Information on the allocation, free of charge, of deposited sand from the confluence of the Bojana River to the Football Association of Montenegro, for the purpose of constructing a football pitch with a hybrid grass surface, in the amount of 5,000 m³. The Information notes that the installation of hybrid grass surfaces on football pitches requires the placement of a sand layer with characteristics corresponding to that extracted from the mouth of the Bojana River. Accordingly, in order to implement planned investments in the upgrading of football pitches and to provide all national teams with top-quality training and match conditions, the Government approved the allocation, free of charge, of 5,000 m³ of deposited sand at Ada Bojana. The estimated value of the sand amounts to EUR 36.38 per cubic metre.

The Cabinet also adopted the Information on designating Elektroprivreda Crne Gore AD Nikšić as the Authorised Entity in accordance with the Law on Ratification of the Agreement on Cooperation in the Field of Energy between the Government of Montenegro and the Government of the United Arab Emirates. It was emphasized during the discussion that the full implementation of the Law requires the establishment of a clear institutional mechanism through the designation of an Authorised Entity to take on a key role in coordinating and implementing the activities envisaged by the Agreement. EPCG is the national power utility of systemic importance, with a dominant role in electricity generation and extensive experience in managing the energy system. In the previous period, EPCG has further focused its activities on the development of renewable energy projects, including solar and wind power plants, as well as hybrid systems with energy storage. By designating EPCG as the Authorised Entity, institutional clarity and operational efficiency in the implementation of the Agreement are ensured, while reducing regulatory and implementation risks. Such a solution enables centralised project management, improved coordination between relevant state authorities and investors, and more efficient use of available resources, thereby creating the conditions for the timely and successful implementation of planned investments.