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NewsMontenegro, at least 150 million euros will be invested in Investment and...

Montenegro, at least 150 million euros will be invested in Investment and Development Fund next year

Podgorica – The Government of Montenegro has announced that during the next year, it is planned that at least EUR 150 million will be invested from the Investment and Development Fund (IDF) to support the development priorities of the Montenegrin economy.

The announcement states that at the session the Government approved the proposals for the annual work plan and financial plan for the next year of the IRF.

It is added that the plan stipulates that the Fund will focus on providing support for strengthening the competitiveness of the Montenegrin economy by investing in the digital and green transition, especially in priority sectors, in order to increase production and exports, i.e. import substitution and preservation of existing ones, as well as creating new jobs.

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The Government said that the financial plan foresees that during the next year the Fund will direct its activities towards the realization of the priorities defined by the Government’s economic measures and continuously monitor the needs of the Montenegrin economy and provide adequate financial support, with an emphasis on the green and digital transition, as well as improving living conditions through investments in infrastructure projects.

“In this regard, it is planned that during 2023, at least EUR 150 million will be placed by the Fund to support the development priorities of the Montenegrin economy,” the announcement states.

The Government stated that the National Circular Transition Strategy until 2030, with an Action Plan for the following year and 2024, was also adopted.
As they said, the strategy identified four priority sectors, namely agriculture, forestry, construction and tourism.

The Government said that they have also identified horizontal topics that are a prerequisite for circular transformation in key sectors.

“The total planned funds for the implementation of activities for the period 2023 – 2024 amount to EUR 86,792,650,” the announcement states.

It is stated that EUR 5,603,650 is planned for the implementation of activities for the period 2023-2024.

“The amount of EUR 80,400,000 (AFD, EIB, CEB) will be available to the economy through the Investment and Development Fund, while the amount of EUR 789,000 will be provided by donors, IPA funds, etc.,” the announcement says.

The Government said that at the session a decision was made on the formation of the Coordination Body for the analysis of the “Special investment program of special importance for the economic and economic interest of Montenegro”.

As announced, the government also adopted information on the redirection of unspent funds within the capital budget of the Transport Administration for this year.

The Information states that due to unforeseen circumstances, several capital projects will not be fully realized in the amounts planned by the Law on Amendments to the Law on the Budget of Montenegro for this year, so EUR 11,308,000 will remain unspent.
“In this regard, the Government approved the redirection of the aforementioned financial resources to projects whose implementation is underway, of which the largest part of this amount, i.e. EUR 8,808,000, was redirected to the reconstruction of the main road M-2 Tivat – Jaz, the construction of the boulevard “, the announcement states.

It Is added that the Government accepted the information on the results of the negotiations with the International Bank for Reconstruction and Development (IBRD) for the conclusion of the credit arrangement for the “Project to facilitate trade and transport in the Western Balkans using a multi-phase programmatic approach – Phase 2”, as well as the loan agreement.

“The Western Balkans Trade and Transport Facilitation Multi-Phase Programmatic Approach Program (TTFP) includes two phases that will be implemented over five years. Phase I includes Albania, North Macedonia and Serbia, while Phase II includes Montenegro, and it is expected that Kosovo and Bosnia and Herzegovina will join later,” the Government stated.

The Government said that the total value of the project is 140 million USD, and the value of activities related to Montenegro is estimated at 14.5 million EUR, which will be realized through a credit arrangement with the IBRD.

“The draft of the Agreement foresees a loan maturity of 18 years, which includes a 4.5-year grace period. The interest rate on the loan is equal to the six-month EURIBOR, increased by the variable interest margin,” the statement said.
In the press release, it is stated that the Government adopted the information on the conclusion of the Agreement on the guarantee for the loan arrangement between the Railway Infrastructure of Montenegro (ŽICG) and the European Bank for Reconstruction and Development (EBRD), for the implementation of the Project for the procurement of machinery for railway maintenance, and accepted the Loan Agreement and Warranty Agreement.

“The purpose of the Project is to help ŽICG with the financing of machinery, which will be used for regular and safe maintenance of the complete railway network in Montenegro,” said the Government.

The Government stated that the contracted amount of the loan is EUR 11 million, with a term of availability of credit funds of three years from the date of signing, a repayment period of 15 years, including a grace period of three years, with semi-annual repayment and a variable interest rate consisting of the six-month EURIBOR and a margin of one percent.

The Government also adopted information on the analysis of submitted requests related to the transfer of shares in concession companies.

As stated in the Information, the Ministry of Capital Investments received three requests for consent to change the ownership structure by the concessionaire and the concession company “Kronor”, the consortium “Interenergo” and the concession company “MHE Vrbnica”, as well as the concessionaire and the concession company “ Manira Hydro”, local media reports.

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