Download Strategic aims of the Government of Montenegro

The Government of Montenegro
Deputy Prime Minister for Economic Policy
Capital Increase of Electricity Company of Montenegro
(EPCG)
Vujica Lazovic, PhD
Investment Conference
Podgorica, January 13, 2009
• The aim of the Conference and
aims of the Government of
Montenegro
• Investment Environment
• Economic policy in 2009
• Energy potential in Montenegro
Strategic aims of the
Government of Montenegro
Quality and sustainable increase of
national wealth.
Basic resources:
-people,
-natural wealth and
-institutional framework.
The aim of the Investment Conference
Exchange of information between potential partners that will
contribute to the quality of the Capital Increase of EPCG
project.
• The aim of the project:
Strategic partnership aimed at
establishment of long term basis for
profitable operation of biggest energy
company in Montenegro and safe
electricity supply of citizens and
economy.
Stimulating institutional
environment:
•
•
•
•
Euro,
Equal treatment of local and
foreign investors,
Free flow of goods and
capital,
Eliminating the business
barriers.
Stimulating tax policy:
• Corporate tax: 9%
• Proportional wage tax:
15%
• Real estate trade tax: 3%,
• Value Added Tax: 17%
Gradual decrease of contribution and wage tax
rates by 2010 which will create conditions to pay 51
cents of contributions and taxes for each Euro of
income.
2008-the year of application for status of
candidate for membership in EU and the year of
economic growth in Montenegro:
•Real GDP growth: 8%,
•Inflation: 7%,
•Unemployment: 10.9%,
•Foreign debt 17% of GDP,
•Foreign Direct Investment €434mil
(January-September 2008).
Projection of economic growth in 2009: 5%
The Global crises!?
Economic policy in 2009 puts stress on commenced
and prepared investments, as reply to global financial
crisis.
Two crucial fields of activities are:
• Construction of infrastructure facilities,
• Improvement of country’s competitiveness.
Activities of Tender Committee and
the Government regarding the capital
increase
Previous steps:
Tender Committee
worked on
improvement of
transaction quality
through solution
of open issues.
Future steps:
Defining of final
parameters related
to transaction and
announcement of
tender by the end of
January 2009.
Basis for development of energy sector!
Strategy of Energy Sector of Montenegro
Development by 2025 aimed at achievement of
energy independence and safe system for electricity
supply.
Action plan 2008-2012: mid-term plan of activities
referring to implementation of Strategy
Development of regional energy market in the context
of EU regulations: Montenegro is the member of
Energy Community and signatory of Kyoto protocol
Energy sector in Montenegro is the business with the
future:
•Energy potential of Montenegro are significant and not utilized,
•Long term growth of electricity value due to increase of
demand.
We expect the strategic partner in Capital Increase of EPCG
project to have clear vision and development aims for the
company, efficient and innovative management, and investment
resulting in optimal level of energy responsibility, productivity
and sustainability.
These are the issues the strategic partner will have full
support of the state of Montenegro.
The Government of Montenegro
Deputy Prime Minister for Economic Policy
Thank you for your attention!
E-mail: [email protected]
Tel: +382 (0)20 202-215