The Government of Montenegro Deputy Prime Minister for Economic
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MONTENEGRO Investment Opportunities May 2016 MONTENEGRO FAST FACTS • AREA: 13.812 km2 (360 km2 of sea) • CAPITAL: Podgorica • OLD ROYAL CAPITAL: Cetinje • POPULATION: 620.029 • OFFICIAL CURRENCY: Euro € • AIRPORTS: Podgorica, Tivat • SEA PORTS: Bar, Tivat, Kotor, Zelenika MONTENEGRO 11 REASON WHY TO CHOOSE MONTENEGRO AS INVESTMENT DESTINATION : • Economically and politically stable economy • Candidate for membership in EU and NATO • Member of the World Trade Organization (WTO) • Trade agreements with CEFTA, EFTA, Russia, Turkey and Ukraine • Equal treatment for investors under the LoFI: • No limit in terms of investing in any industry • Free transfer of financial and other resources • Current investors from around 100 countries • Highest FDI per capita in the region • Competitive business environment • The lowest tax rates in the region • Business Zones with incentives at the local level • Financial grants by Government FDI IN MONTENEGRO Total inflow of FDI in Montenegro in 2015 was 757 million € - 259 million more than in 2014. By this indicator, Montenegro is still far ahead from countries in the region Increase of FDI – result of unique investment opportunities, positive experience of existing investors and favoruable business environment No domination of any foreign investor Major investors are from Russia, Austria, Italy, Switzerland, Cyprus, Hungary, Great Britain, Middle East... FOREIGN DIRECT INVESTMENTS • 2000 - 10 millions € • 2009 - 1.2 billions € • 2007 - 2015 - 5.5 billions € *source: Montenegro Central Bank and MIPA (Montenegrin Investment Promotion Agency) AUSTRIAN FDI IN MONTENEGRO The highest FDI inflow in 2015 - from Austria Investment value - 260 mill € Investments in: • Companies and Banks • Insurance companies • Construction In the last 15 years - Austria invested in Montenegro over 600 mill € *source: Montenegro Central Bank DOING BUSINESS REPORT *source: World Bank - Doing Business Raport LOW TAX RATES Corporate profit tax (%) – MNE 9% 40 31.4 30 20 15 15 16 17 19 20 9 10 10 10 10 0 Value added tax (%) – MNE 19% 27 30 22 24 25 22 25 17 18 19 20 20 20 20 15 10 5 0 PRIORITY SECTORS FOR INVESTMENT Energy Tourism Transport TOURISM Tourism direct and indirect share in GDP in 2015 – 794,8 mill € (22,1 %) Until 2026 -1.521,9 mill € is expected - (29,9% of total GDP) (source: WTTC) Total income from tourism in 2005 was 222 mill € and in 2015 - 801.3 mill € Montenegro is connected with 76 destinations Low-cost companies : • Rayan Air • Easy Jet • Wiz Air TOURISM THE DEVELOPMENT PATH IN THE HOTEL INDUSTRY ACCOMMODATION FACILITIES • 386 hotels in Montenegro •38% beds in high category objects (4/5 *) • 10 high quality mixed-used resorts •Hotel Operators (One&Only, Aman, Hilton...) •Construction of 76 new hotels with 8 000 beds by 2024 year TOURISM ONGOING PROJECTS PORTO MONTENEGRO • Investment value: cca 420 mill € • Mixed used resort which includes luxury 5*hotel, restaurant, bars, cafes, galleries, nautical museum, green market, private health institutions, sports facilities established, luxury apartments • Original investor: Adriatic Marinas Ltd. and PM Securities (Barbados) INC • Investment Corporation of Dubai recently took over PORTONOVI/ONE & ONLY • Investor: SOCAR, Azerbaijan • Investment value: cca 500 mill € •Construction of luxury hotel with SPA and wellness center, luxury complex with 500 units and villas of the highest class, a world – class marina with a capacity of 250 berths, large number of shops, cafes and restaurants TOURISM ONGOING PROJECTS LUŠTICA DEVELOPMENT • Investor: Orascom Development, Egypt and Switzerland • Investment value: cca 1.1 billion€ • Mixed use resort, includes construction of 8 hotels, golf course with 18 holes, 1,250 residential units (villas and apartments), 2 marinas and city center LASTAVICA ISLAND AND “MAMULA” FORTRESS – HERCEG NOVI • Investment value: cca 15 mill € • Long term use • Redevelopment of the Mamula Fortress by preserving the cultural heritage and promoting the historic character of the island • Investor: Orascom, Egypt and Switzerland TOURISM POTENTIAL INVESTMENT NAUTICAL TOURIST CENTER VIP MARINA - KOTOR • Investment value: cca 90 mill € • Tender preparation in progress • land and aquatorium in Boka Bay marina - 150 berths with facilities and infrastructure, administrative building, commercial facilities, high category hotel complex NJIVICE HERCEG NOVI Land of 30,597 m² and aqatorium of 7,313 m² • Planned for marina, business or congress hotel, apartment facilities, 5000 m² beach • Tender documentation may be purchased until 15 July 2016. TOURISM POTENTIAL INVESTMENTS ADA BOJANA - ULCINJ • Investment value: cca 200 mill € • Public-private partnership - long term lease • Area of about 100 ha planned tourist complex (from about 520 ha total area of island), which includes at least one 4-5* hotel, villas and other types of residential accommodation VRANJINA SITE WITH LESENDRO – Skadar Lake • Tender documentation may be purchased until 14 June 2016. • Area: 13,132 m² for feature an ecolodge tourist resort • 30 objects servicing visitors to the resort with a maximum capacity of 61 beds TOURISM POTENTIAL INVESTMENTS BULJARICA LOCATION • Purchase and long-term lease up to 90 years. International tender for valorization is published. • Location: about 18 km from Budva and at the same distance from Bar • The entire Buljarica location covers the area of around 17,000,000 m². The subject of the sale includes immovable properties with a total area of 4,898,216 m² and the subject of long-term lease 533,956 m² and aqua space with an area of around 585,772 m² • Beach is approximately 2,500 meters long, and around 30 meters wide • Investment value for the immovable property: minimum 108.761.000 mill € TOURISM POTENTIAL INVESTMENTS SKI RESORT KOLAŠIN 1600 - KOLAŠIN • Investment value: cca 65-75 mill € • Long term use - Call for bid submission is published • Located in the south part of the Bjelasica, surface amounts to 27,19 ha MEDITERAN - ŽABLJAK • Public-private partnership • Tender documentation may be purchased until 3 June 2016 • Construction of a new tourist resort at location of former military complex in Žabljak in the area of 13.951 m² • Located in 1456 m above the sea level, in the most attractive area of national park “Durmitor” ENERGY PROJECTS Submarine cable • Construction of submarine cable with energy of 1.000 MW capacity between Italy and Montenegro • Investment worth more than 800 mill € (415 km long, 390km undersea and 25km of underground cable) • Project realized by TO and TERNA, Italy • Project will position Montenegro as regional energy hub, giving the investment opportunity for all region. II Block TPP Pjevlja • Construction of the II Block TPP Pljevlja, installed power capacity of 250MW; total investment costs 338,5 mill € • Negotiation with potential investors in progress ENERGY PROJECTS Hydro Power Plant Morača • Technical Design encompases construction of 4 hydro-power plants with total installed power of some 238.4 MW and an average annual production of 721 GWh. • All technical documentation is available for investors insight. ` Hydro Power Plant Komarnica • Beside construction of HPP Morača, construction of HPP Komarnica is planned, the annual production is about 232 GWh and total installed power of 178 MW. ENERGY PROJECTS Renewable energy Small hydropower streams Biomass potential Planned Contracted Remained Planned Contracted Remained 132 MW 73 MW 59 MW 39,0 MW none 39,0 MW Solar potential Wind potential Planned Contracted Remained Planned Contracted Remained 31,5 MW none 31,5 MW 189 MW 118 MW 71 MW Projects under construction: • Wind farms on the site Krnovo and Mozura, total installed capacity of 120 MW • Construction of 41 small hydro power plants is given throughout 21 concession contracts; total installed capacity 72 MW ENERGY PROJECTS Maoče project • Concession for the exploitation of coal from the basin of Maoče and the construction of a thermal power plant of the estimated capacity of 500 MW (2k250MW), 45 years concession, with a possibility of extension up to 22,5 years • Concession fees for the exploitation of coal will be calculated as a percentage of revenues from the sales of electricity TAP - IAP • Construction of gas pipeline from Albania to Croatia via Montenegro and B&H • Total lenght 511 km (94 km in Montenegro) • The project will enable gasification of MNE TRANSPORT PROJECTS Construction of Highway Bar – Boljare • The highway Bar – Boljare is included in SEETO comprehensive regional transport network for the Western Balkan, as SEETO route 4 and it will connect Montenegro with Europe, begining from the Adriatic coast via the Capital City Podgorica, to the border with Serbia • The first Section, Smokovac-Uvac-Mateševo is currently under construction; estimated costs of this section - 809 mill € • The Project includes construction of additional sections: Mateševo–Andrijevica, Bypass around Podgorica ` (Smokovac–Tološi–Farmaci), Djurmani-Farmaci and section Andrijevica-Boljare. Railway Line Belgrade (Vrbnica) – Bar , Reconstruction and modernization of Railway line • Modernization and reconstruction of the railway line in compliance with European and main international railway lines and achievement of interoperability of the railway lines along the Corridor X • Total lenght is 454,8 km of which 167,1km in Montenegro and 287,4km in Serbia • The value of the project is estimated in the amount of cca 250 mill € TRANSPORT PROJECTS Development of Airport Podgorica • The project includes the