Territorial Audit M O J K O V A C

CONTENTS

1. GENERAL INFORMATION ABOUT ...... 2 2. DEMOGRAPHIC DATA ...... 4 3. LABOUR MARKET DATA ...... 6 3.1. Labour force ...... 6 3.2. Social and human resources development ...... 6 3.3. Employment statistics ...... 7 3.4. Unemployment analyses ...... 9 3.5. Disadvantaged groups, skill gaps ...... 11 3.6. Main obstacles for accelerated employment growth ...... 12 4. ECONOMIC DEVELOPMENT POTENTIALS AND OBSTACLES OF THE TERRITORY ...... 14 4.1. Characteristics of economic sectors ...... 14 4.2. Education and VET ...... 26 5. SWOT ANALYSIS ...... 29 CONCLUSIONS...... 32 ANNEXES ...... 0

1. GENERAL INFORMATION ABOUT MOJKOVAC

The of Mojkovac belongs to ’s Northern region and middle waterway of river, between and Sinjajevina mountains. The municipality’s total area is 367 km², which makes 2.6% of Montenegro’s entire territory. The terrain is mountainous, and altitude varies between 600m (valley of Tara) and over 2,000m (peaks of Bjeloasica and Sinjajevina mountains). Municipality borders with Kolasin, , , , Zabljak and Savnik. It consists of one urban settlement (city) and 14 . The majority of settlements are located at the altitude of 800-1000m. There are two rivers in the area: Tara and Lepesnica with numerous tributaries. The climate in Mojkovac is humid continental climate. Average annual temperature is 7.1°C, and total annual rainfall amounts to 2.205 l/m2.

Mojkovac Municipality, according to the development index1 of , ranks 15th out of 21 municipalities in Montenegro, with a development index of 63.38. The figure indicates that Mojkovac in relation to the Montenegrin average is lagging behind by about 36%. According to the level of competitiveness2, Mojkovac significantly lags behind most of the municipalities and is located at the level of 78.3% of the average competitiveness of all local government units in Montenegro. Adversity of business environment is reflected in the lack of planning documents, whose adaptation has been slowed down by making plans at the national level, (since preparation of local plans were dependent on the existence of national plans) which greatly affect the spatial planning in Mojkovac.

1 Development index is a composite indicator of the degree of development of municipality or region. It is counted as a weighted average of five basic socio-economic indicators:1. Unemployment rate, 2. Total taxable income per capita, 3. Budget revenues of municipality per capita, 4. general population movements (growth rate of population in municipality) and 5. Share of educated population (high school and university) in total population of municipality in the age 15-64). It is defined by the Regional Development Strategy.

2 The competitiveness index is the average of the indicators of Business environment and business sector, which is calculated on the basis of qualitative and quantitative analysis. Business environment indicators include demographic trends, infrastructure, degree of providing personnel in the field of health, education, sports, culture, social protection, education level of population, basic and business infrastructure, and other indicators at municipal level. Indicators of the business sector involve data on investment and investment dynamics, development of entrepreneurship and the level of main economic indicators in municipality. When it comes to the number of businesses in the municipality of Mojkovac, the data indicate that this number varied during last several years between 130 and 140. Last available data show that this number has increased (from 130 in 2014 to 139 in 2015), but still, the increase was less than the percentage increase at the national level so that Mojkovac’s share in the total number of businesses at the national level declined from 0.6% to 0.5%. The largest number of businesses are in the area of wholesale and retail trade (about 42% of the total number of businesses in this municipality), followed by manufacturing sector (about 24%). The GDP of Mojkovac constitutes 0.4% of Montenegro’s GDP. In the structure of companies, in Mojkovac there are mostly micro- companies which make up the substantial majority, around 85.3% of the total number of companies, while the share of medium-sized companies is 5.9%

The business environment in the municipality of Mojkovac, although significantly improved in recent years, is still in some aspects unfavourable.Despite favourable taxation policy, and some improvements regarding municipal support to different businesses (explained later), there is still a lack of adequate infrastructure in some parts of the municipality, the business zone is just established and not valorized yet, etc.

2. DEMOGRAPHIC DATA

Similar to other municipalities in Montenegro’s Northern region, municipality of Mojkovac has observed negative demographic trends during the past 20-30 years. These trends are reflected in the high level of emigration, reduction of birth rate and negative natural population growth. According to the 2003 census, the total population of Mojkovac was 10.280, while in 2011 it reached 8.623, (which means that the population declined by 16.12% in comparison to 2003). Negative demographic trends continued, so in 2015 the number of inhabitants of Mojkovac was 8.017 (additional decrease of 4-5% after the last census). Of the total population of Mojkovac, 41.64% live in the while 58.36% live in rural areas. The majority of the population that emigrates from Mojkovac belong to the age group 20-39, and among them majority are women. Also, around 90% of them goes to more developed regions of Montenegro, Coast and Central region (almost half to capital city ). (see Annex 1).

Graph 1: Population in Mojkovac

Source: MONSTAT (1991-2011 Census, 2012-2015 population estimations)

Changes in the lifestyle of the population in the Northern Region of Montenegro, and thus the municipalities of Mojkovac, have influenced the ageing tendency of the population in the long term. There is a tendency for a decline in natural growth, urbanisation and degradation of land, increased unemployment, emigration, and insufficient development of social infrastructure that should keep the conditions and attract new populations. The population of Mojkovac belongs to the category of ageing population. Such a situation was recorded in 12 municipalities in the territory of Montenegro (Graph 2.1.2 and 2.1.3).

Graph 2: Natural and mechanic changes in population of

Source: MONSTAT

Gender structure of the population in the municipality of Mojkovac is balanced (50.48% men and 49.52% women). Regarding the age structure, according to the 2011 Census, there were no significant differences in the age structure of the whole Montenegrin population. Approximately 17.95% of Mojkovac inhabitants are those from 0 to 14 years of age, 68.05% are those from 15 to 64 while 14% of the population in Mojkovac municipality belongs to the age group 65+. These demographic trends pose a significant threat to the further development of Mojkovac, especially regarding the development of the labour market and the inflow of new investments.

3. LABOUR MARKET DATA

3.1. Labour force

The Labour market in Mojkovac is characterised by low level of activity, relatively high level of unemployment as well as labour supply and demand problems. The most significant cause of unemployment is the low economic performance in the municipality and insufficient demand in labour market. Due to this situation, a modest number of new job positions are offered at the market, so it is very difficult to get a job, especially when employers seek for the previous working experience.

3.2. Social and human resources development

Regional Development Strategy of Montenegro 2014-2020 stresses out that in order to achieve Montenegro's key development targets by the end of 2020, it is necessary, along with investment in basic infrastructure, to realize a number of measures relating to raising the competitiveness of the less developed regions, and the strengthening of human resources and employment. This also coincides with the key elements of the smart and inclusive growth, which in addition to sustained growth, are directions defined as Montenegro’s key development goals.

The lack of necessary institutional and human capacity, which should support the development of entrepreneurship, is also recognised by the local strategic documents. Existing business centres have become part of the local administration and are not able to meet the needs of the SME sector, except preliminary needs related to starting a business. Also, most local governments in the Northern region have no adequate capacity to create projects and draw funds available from the IPA, as well as effective mechanisms for their optimal implementation.

Strategy for Employment and Human Resources Development for the Mojkovac municipality for the period 2011-2015 was adopted but was not renewed for the succeeding periods. Local Social Council was established with various stakeholders. The members of Social Council – Working group for employment and human resources development were the representatives of local government (including representative of the Office for Youth within the local government), trade union of Montenegro, Employers Association Mojkovac, Employment Agency of Montenegro local office, Secondary Mixed School "Vuksan Đukić", NGOs, Center for Social Work Mojkovac, local touristic organization. However, the implementation of the Strategy for Employment and Human Resources Development remains very modest like several other strategic documents. One of the reasons is a lack of funds, but also the lack of institutional capacity.

Local employment office in Mojkovac which is part of Employment Agency of Montenegro (EAM) conducts certain activities related to human resources development and better preparation for the labour market. In order to assist unemployed persons, EAM is conducting numerous activities including informational interviews and individual interviews with unemployed persons, information-motivation seminars and preparation of individual employment plans. Within the active measures, EAM also actively works in the organisation of various training for unemployed persons that are performed for the labour market or a specific employer.

Currently, eight persons who are registered with the Employment Bureau in Mojkovac are being trained i.e. as accountants (4 persons) and guards (4 persons). Also, one person attends training for independent work. This training assumes training/practice for those youth with 3 and 4 year secondary education in the duration of 6 months in some company. The wage compensation is paid by EAM as well as taxes and contributions. This measure showed some good results since some companies retained the trainee and employed him/her. However, the big problem is a lack of adequate mentorship in the companies, especially big ones. Besides this program, the government program of vocational training for persons with acquired higher education currently involves 46 persons in Mojkovac.

3.3. Employment statistics

Ever since 2010, employment in Mojkovac had constantly been decreasing. Low level of economic activity caused lack of job opportunities.

Graph 3: Total employment in Mojkovac

Source: MONSTAT

In April 2017 total employment amounted 1,125 - 1.2% less than in 2016. In comparison to 2010, employment decreased by 17.0%. During 2016, 53 persons found a job, and 41.5% of them are with higher education and 30.2% with four-year secondary education.

Employment office in Mojkovac conducts different activities to increase employment. One of the measures is related to seasonal employment. Currently, there are 101 persons engaged in seasonal jobs, mainly in the hospitality industry and a smaller number of people in the construction industry.

Besides the above mentioned, public works are one of the ways of finding a job. In total, eight different public works are organised in 2017. Employment Office in Mojkovac organises five local public works ten persons will be employed for three months. Also, one national public work “Neka bude cisto”3 is organised and three persons will be engaged for four months and two public works “Asistent u nastavi” where five persons are employed. Comparably, in 2016, 34 persons have been employed through public works.

Another way of the employment is self-employment and Employment Office provide favourable loans for self-employment. In 2017, one loan was approved, and one person is employed (total loan amount is 5000 EUR). -In 2016 there were no approved loans. However, there are no grants for self-employment, which is one of the main measures that contribute to such kind of employment.

3 “Keep it clean” 3.4. Unemployment analyses

The unemployment rate in Mojkovac in 2016 has amounted 26.3%, and it is significantly higher than the Montenegrin average. As can be seen from the following graph, the number of unemployed persons in Mojkovac is similar to preceding years – with no secular change in the past few years. Having in mind negative demographic trends, this number corresponds to increased unemployment rate.

Graph 4: Number of unemployed persons in Mojkovac municipality

Source: Employment Agency of Montenegro

Unemployment figures worsened in 2017. Data from local PES in Mojkovac show that in June 2017, there were 857 registered unemployed persons in this municipality. Unemployment rate observed as the ratio of the unemployed and active labour force in the municipality during the same period amounted 29.98% which is significantly higher than in 2016. The number of unemployed women was 381 or 44.45%. The number of those who were looking for a job for the first time was 293 (34.19%), while the number of those who are unemployed for more than three years (considered as long term unemployed) amounted 296 (34.54%).

In addition to relatively high levels of unemployment, a particular problem for Mojkovac’s labour market is structural unemployment. Strategy for Employment and Human Resources Development for the Mojkovac municipality for the period 2011-2015 recognised that there is significant structural unemployment which is mainly due to hard-to-employ groups, particularly the long term unemployed, people with disabilities, unemployed with lower levels of education and occupation, and those with skills for which there is no demand. Therefore, one of the strategic priorities was defined as the “increase in employment and reduction of structural unemployment”. However, current situation signals that same problem related to employment exists while structural unemployment is still significantly presented. EAM conducted certain measures to address structural unemployment such as prequalification and training, and employment through public works. However, public work is just short term solution since it does not contribute to the reduction of structural unemployment.

In the total number of unemployed, the unemployed who are older than 50 years of age has a share of almost one third, while the share of unemployed who are in the age group 30-50 amounts 42.24%. Such high unemployment rate among prime age group is striking and reinforces the statement about the structural nature of the unemployment. Also, the unemployment of younger population (up to 29 years) is significant, since their share is 26%. Among young unemployed, there are more women, while among elderly unemployed, there are more men. This is, however, the consequence of the lower activity of senior women, especially in rural areas.

Table 1: Structure of unemployed by age and gender (June 2017)

Age group Total Percentage Women Percentage 15-24 106 12.37% 48 12.60% 25-29 117 13.65% 54 14.17% 30-50 362 42.24% 181 47.51% 51-67 272 31.74% 98 25.72% Total 857 100.00% 381 100.00%

Source: Local employment office - Mojkovac

The high share of elderly unemployed and long term unemployed is also a consequence of the mismatch between supply and demand for jobs since Mojkovac was hit by the process of transition, restructuring of enterprises and closing of unprofitable and inefficient industrial enterprises previously owned by the state.

If the unemployed are observed by the level of education, then the highest share belong to those with VET education (3-year secondary school), and it amounts 38%. This signals that there is no demand for educational programs conducted in the past. Currently, mixed secondary school adopts and changes curricula from year to year. However, the programs are still determined more by the willingness of students to enrol some program than the real market needs. The unemployed with higher education are mostly those with general economic and legal background.

Table 2: The structure of registered unemployed in Mojkovac by level of education (June 2017)

Level of education Number of unemployed Percentage Primary school or less 191 22.29% Unfinished secondary education 26 3.03% Secondary VET school(3 years) 326 38.04% Secondary school (4 years) 222 25.90% Higher education (2 years) 16 1.87% Higher education (Bachelor) 75 8.75% Master degree 1 0.12% Total 857 100%

Source: Local employment office - Mojkovac

3.5. Disadvantaged groups, skill gaps

In 2016, a total number of vacancies amounted 170. In comparison with 2015, it increased by 9%. However, some newly employed persons in 2016 were 53. The difference between employment vacancies and filled in positions indicates skill gaps in Mojkovac. The possible reason for unfilled vacancies is the lack of an adequate education profile (based on acquired education, skills, etc.). This analysis is prepared at the national level. However, local PES can prepare analysis (not mandatory, since they provide data on vacancies to the central office). Local PES still needs capacities to prepare such analysis and initiate more debate and dialogue, having in mind the number of employed in local PES. Women, youth and long term unemployed are particularly vulnerable to the labour market. Identified problems related to the long term unemployed are a lack of knowledge of foreign languages, lack of basic ICT skills, lack of initiatives and self-confidence related to the labour market involvement, and lack of need for additional training and obtaining an additional qualification. Similar problems apply to women especially those from rural areas. When it comes to the younger population at the labour market, the main problem is the lack of entrepreneurial skills, experience, and of adequate support. The specific group is young unemployed women. Namely, the focus group with young unemployed women revealed that many of them are already married with children, which also indicates the potential problem of early marriages that leave these women outside of the labour market for some period. The reintegration into the labour market requires new skills since many of them did not have even practice. Also, some of them left education system prior finished secondary school, which puts them into the category of unqualified workers.

3.6. Main obstacles for accelerated employment growth

The problem of inadequate labour demand by businesses is reflected in high unemployment while the presence of grey economy may be responsible for precarious/informal/non-decent employment. These two are the main obstacles for generating regular employment growth. The business zone is established recently, and results could not be visible yet. There is no business centre in a municipality that would support the creation of a more favourable environment for the economic development of small and medium-sized enterprises in Mojkovac municipality. Such centres could provide technical and administrative support to start-ups but also to other enterprises, organise training, networking and promotion, and thus create a more favourable business environment. All potential beginners in business could easily find information about training available to beginners in business, as well as manuals and guidelines that will bring them closer to the legislation in this area. Through this centre, existing businesses could have updated information about legal regulations relevant to the business sector, information on training and seminars that can be useful for them, reports on the state of the business sector in the region, manuals, a contact list of companies active in the region, etc. Since within municipality there are areas foreseen for the business zone, where both domestic and foreign businesses can start a business under favourable conditions, the business centre could provide information about the conditions, local and national subsidies, as well as about the legal regulations, etc. Some analysis shows that apart from the lack of demand for the labour force, there is also a lack of skills for specific jobs although the mixed secondary school is adopting enrollment policy each year. Also, there is a problem of the inadequate structure of highly educated persons since the majority of them at the registration of local PES are with a diploma of economic or law faculties. The analysis within strategic plan shows that computer literacy and knowledge of foreign languages is at a low level among the population in Mojkovac, while there is the centralised implementation of education policy.

Bad infrastructure in rural areas (inadequate and insufficiently developed road infrastructure - local and unclassified roads) and depopulation of these areas also contributed to the problems in agriculture which are related to the lack of use of agricultural land and lack of investment in agricultural infrastructure. Besides these problems, existing agricultural producers are faced with problems of inefficient selling and receiving timely payments for their products. On the other side, the use of natural resources is still such that mainly raw wood and semi-processed products are produced and exported, while in the past there were recognised partially uncontrolled exploitation of natural resources (wood, stone, gravel). A similar situation is also with some non- timber forest products such as mushrooms that are mainly exported as raw without any processing, and without organised production.

Besides bad road infrastructure in rural areas, Mojkovac still suffers from low energy efficiency, and undeveloped electrified network in some rural areas, inappropriate solid waste management, and undeveloped sewage network in the suburbs.

Although there are certain business support services and that an Entrepreneurship Center exists, there are still insufficient skill capacities for the successful functioning and development of existing and the establishment of new companies. The communication between current and potential entrepreneurs and employers, local government, education institutions, centres for social work and local PES could be intensified and improved. The current situation is also a consequence of the lack of human resources for the administration and implementation of specific activities within these institutions.

4. ECONOMIC DEVELOPMENT POTENTIALS AND OBSTACLES OF THE TERRITORY

4.1. Characteristics of economic sectors

4.1.1. Industry and construction

The industry, which has been the main development branch of the municipality has almost ceased in the early 1990s. Currently, there is some wood processing and metal processing to a lesser extent within the municipality, but there are also ongoing investigations of mineral deposits on the territory of the former lead and zinc mine "".

When it comes to light industry in Mojkovac there are following sectors: Food production, textile industry, wood industry and building materials industry. As for the food industry, there are several companies among which the most important are: LLC “Pam”, which deals with purchase and processing of wild mushrooms, LLC “Flores” whose activities are related to the production of tea, while in textile industry there is company “Miss”. Mojkovac Municipality also abounds with forests, so the strategic development of this municipality is focused in part on the timber industry, major companies in these areas are LLC “Trudbenik” and LLC “Mz-Masiv”.

Graph 5: Cutting of trees in and outside the forests in Mojkovac (in m3)

Source: MONSTAT

The total gross volume of cutting trees in Mojkovac during the period from 2011 constantly increase. In 2015, it amounted 13,406 m3, or 3.0% higher in comparison with 2014 and 56.9% than in 2013. Other types of industries in Mojokvac are building materials industry and heavy industry. Building materials industry consists of several companies that are mainly engaged in the production of concrete blocks. From heavy industry in Mojkovac, there is only metal processing (Tara Corporation).

Regarding the sector of Mining and quarrying, in the area of Mojkovac, there are six types of mineral resources: lead and zinc, mercury, manganese, technical construction stone, gravel and sand. In the recent period, tests and evaluations on starting production at the mine have been done. The restart of production at the mine “Brskovo” would lead to job creation and employment growth. Recently one company from Australia was interested in mine. They invested some money, and they are preparing Feasibility studies, with a technical-economic assessment of calculated reserves. Also, a study of the impacts of environmental exploitation and a project of hydrological and hydrogeological testing of this area will be carried out to define the layout of future mine facilities. Technical and technological testing of ore concentrations is expected, as well as the feasibility study and the main mining project for exploitation. All of this has to be finished to get permission to open the mine. However, the time frame is not known yet. Municipality Mojkovac is relatively well connected with all other municipalities in the continental region and its location in this regard is an important development opportunity. It connects some northern municipalities but also is on the main route from the capital to the border with .

Agriculture, forestry and fishery Almost one-third of Mojkovac municipality is classified as agricultural land. Animal husbandry is the primary branch of agriculture in Mojkovac (meat, milk and dairy products), and another important agricultural branch is beekeeping with more than 11,000 kg of honey placed all around the territory of Montenegro.

The association of beekeepers involves more than 40 members, and there are also individual beekeepers. The largest number of livestock cattle and sheep is in Prošćenje and Štitarica. According to MONSTAT data from Agricultural census 2010 in Mojkovac municipality, there were: 3,320 of cattle, 7,000 sheep, 1,200 pigs, 700 goats and 300 horses. Six registered fish farms that grow trout, two chicken farms and plant production are also present. As for the crop production, significant place belongs to fruits, crop and vegetable production. In fruit category, the most common products are pome, stone fruits and berries. It's important to note that the collection and processing of healing herbs and berries is one of more perspective branches. In Mojkovac there is one factory for tea "Flores" where annual production is about 50 tonnes of tea. It is also assumed that in the course of the year, production of mushrooms varies between 5 and 7 tonnes.

However, the degree of utilisation of available agricultural land in Mojkovac is relatively low (below 20%) as well as the participation of the agricultural population in a total population of Montenegro (6.7%). The biggest volume of agricultural production is realised in the production of forage where 4.8% of the total quantity produced in Montenegro is from Mojkovac, while 2.6% of total Montengrin livestock is in this municipality.

However, the main problem is the purchase which is insufficiently organised. The market surplus of meat is mostly bought by company Mesopromet from Bijelo Polje. The situation is similar with milk and dairy products. The milk is sold to private dairies, but payments towards farmers are not serviced properly and timely, and the amount which is submitted to dairies is volatile. Regional Development Strategy for the period 2014-2020 defined the priority sectors of development at the national level by the end of 2020 and Agriculture and Rural Development is one of them. However, as per the SWOT analysis conducted for whole Montenegro and each region, there is a significant potential that is yet to be utilised regarding natural resources which can foster growth if well managed. This is especially related to the Northern region, and it refers to primary sector (agriculture, forestry) and directly related to the development of food- processing industry, etc. Northern Region has the largest part of the total hydropower in Montenegro, total coal reserves, about 67% of arable land, 71% of wood mass, close to 70% of the livestock fund, almost the entire lead and zinc reserves, as well as resources for development of winter and eco-tourism and the production of eco-food and food with a protected geographical origin. Organic plant production is the most prevalent in the northern part of Montenegro. They are mostly raised fruit crops: oats, barley, wheat, rye and buckwheat, and of the fruit species dominant are apples, plums, pears and raspberries. Organic animal husbandry is poorly developed.

This is also applicable to Mojkovac municipality where is an indication that there are numerous plantations of raspberries. However, the level of processing is not high, and these raspberries are mostly sold as raw through repurchases. This is not well organized, limits value added and usually forces the planters to sell it at very low price. One of the reasons is a lack of association of the raspberry planters and producers, as well as the lack of any (even small capacity) processing facilities. On the other side, there is a disconnect between agriculture in Mojkovac and other sectors such as tourism, although there is a solid potential for holistic development. The project of revitalising summer pastures, agricultural pastures, farms and so on is of crucial importance for tourism development.

Despite the large coverage of forestry land, underdeveloped economic activity has caused inefficient use of available forest resources (including wood and non-timber forest products), including the export of high-quality wood as a raw material, inadequate collection of medicinal herbs and forest products. This could also be the potential for development since there is a company in Mojkovac that purchase herbs from all regions. On the other side, there is Center for continental fruit growing, medicinal and aromatic herbs in Bijelo Polje, a municipality near Mojkovac (as part of Biotechnological Faculty from Podgorica). The Municipal Strategic Plan prioritised commercial forestry management to achieve maximum and sustained production of wood and other forest products while preserving the productive forest habitats which are namely Palješka gora, Štitarica, Jezerska gora, Petrovica omar and Lepenac. Special-purpose forests are forest communities that have a special form of protection and are defined as natural reserves, communities of rare and endangered species important for the conservation of biodiversity and gene pool. These forests belong to the area of national parks: area 1.869ha and 134ha.4

Existing agricultural and livestock farms are fragmented; however, there are examples of processing opportunities and agricultural production. This indicates that there remains a significant unused capacity which, in an integrated manner, may be used for regional

4 Strategic development plan of Mojkovac 2012-2019 development. Another issue is the lack of the necessary institutional and human capacity, which should support the development of entrepreneurship in agriculture. Existing business centres have become part of the local administration and are currently unable to meet various needs of business people in the agricultural sector (except some basic services and business advice at start-up phase).

Key disparities related to Mojkovac are depopulation and degradation of agriculture in rural areas which lead to the high prevalence of unemployment. The territory is limited by high fragmentation of the agricultural land and weak interconnections. At the same time, the region is not benefiting sufficiently from available capacity, especially in agriculture and processing of agricultural products and forestry and wood-products despite significant natural sources in place such as arable surface, livestock and timber mass.

The Strategy for Employment and Human Resources Development for the Mojkovac municipality for the period 2011-2015 defines local strategic focus (i.e. vision of the Mojkovac municipality) as becoming a “strong touristic and agricultural centre”. Economic development is listed as the second priority in Mojkovac Municipality’s Strategic Plan. It includes measures aimed at exploitation of comparative advantages of competitive sectors through increasing investments, development of agriculture and full utilisation of potentials for organic agricultural production. Despite this orientation, the largest number of registered businesses in the municipality of Mojkovac does not belong to agriculture sector which comes only after the wholesale and retail trade, manufacturing and transport.

As already mentioned, unregulated purchase of agricultural food products through repurchases, lack of processing facilities and poor agricultural infrastructure represent a major obstacle to the further development of agriculture in the municipality of Mojkovac.

4.1.2. Tourism

The Strategic Plan of the municipality of Mojkovac prioritises full usage of agriculture and tourism potential at the local level. Touristic attractions include but not limited to several monumental complexes, friendly atmosphere of landscape and natural attractions which represent the potential for development of winter mountain tourism.

The west part of the municipality, including Sinjajevina, Tara Valley and Prošćan mountains, represents potential for growth of rural tourism which combines the accommodation in rural homes, organically produced food, cycling, riding, kayak and rafting, ski touring, watching natural beauty, birds and other animals and exploring the cultural heritage, including the summer pastures, local food and products. Also, Mojkovac has the potential for the development of other forms of selective tourism such as adventure, sport and recreational and health tourism. Ski zone may be formed to slopes of Bjelasica and Sinjajevina with the prerequisite of modern roads and lifts. Mojkovac has significant tourism infrastructure that includes various accommodation facilities, mountain walking and biking trails, picnic places as well as specialised facilities.

Such potentials for tourism development provide opportunities for job creation in the tourism sector. Additional construction of tourism facilities (hotels, motels, apartments, etc.) could increase labour demand and improve labour market situation.

Table 3: Tourism in Mojkovac Mojkovac Share of Montenegro average Guests Overnight stays Guests Overnight Total Foreign Total Foreign (total) stays (total) 2011 2,393 1,815 3,039 2,201 0.17 0.03 2012 2,803 2,181 3,982 2,884 0.19 0.04 2013 2,074 1,691 2,884 2,117 0.14 0.03 2014 1,521 1,210 1,841 1,435 0.10 0.02 2015 1,528 1,268 2,127 1,697 0.09 0.02 Source: MONSTAT

The number of tourists who visited Mojkovac in 2015 amounted 1.528 which represents a decrease compared to the period 2011-2013. The number of foreign guests increased by 4.8% in 2015 in comparison with previous year, but it is at much lower level in comparison to 2011- 2013. A total number of overnight stays in 2015 was 2,127 which makes 0.02% of the total number of overnight stays in Montenegro and has increased by 15.5% in 2015.

4.1.3. Trade The largest number of businesses in the municipality of Mojkovac has been engaged in the activities of wholesale and retail trade (26.2%). The most significant role in retail sales has trade markets Voli, Alfa Trade, and Idea.

When it comes to trade with foreign countries, the majority of products are imported from the Western Balkan countries. In Mojkovac there are only a few companies engaged in export operations: „Tara group“, LLC „Flores“ (production of tea), LLC „Trudbenik“(wood processing) and LLC „Pam“ (plant propagation). „Tara group“ (weapon products) imports some raw materials for production and is one of the main importers in the region.

4.1.4. Energy

The municipality of Mojkovac has potentials for energy production. Currently, there is no any energy production in Mojkovac. However, use of renewable energy, construction of hydro power plants and wind power is expected, but this will not affect employment. For some waterways studies of hydro-energy potentials were made. The total capacity of small hydropower plants on the Bjelojevici River is estimated at around 17MW installed power.

4.1.5. Services

The service sector is essential for the functioning of modern society. Most important services are related to public service under which there is recognized education (public preschool "Jevrosima - Jevra Rabrenović", Elementary School "Aleksa Djilas - Beco" and mixed secondary school "Vuksan Đukić"), distribution of electric energy (Montenegrin electricity transmission system – Mojkovac, i.e. operating unit of supplying – Mojkovac, Power Distribution Montenegro - Mojkovac), fire protection – local unit of protection, health services (Health Center "Bosko Dedejić"), police (Department of Security – Mojkovac), and communal services (Public Utility Company).

In the sector of services, in addition to public services, commerce and telecommunications play relatively important roles. Telecommunication infrastructure in Mojkovac is relatively well developed. The penetration rate of the mobile phone is below the level of Montenegro wherein approximately 10% of the population does not have a mobile phone. Approximately 50% of households in Mojkovac have computers and use the Internet, either at home or work.5

Also, there are transport services at local level and financial services. Transport services are not developed enough. One of the main weaknesses of Montenegro is inadequate infrastructure road system, which in general is unable to provide appropriate access to markets and services, and to play the role of development factors for investment and new employment. Without adequate infrastructure overall affordability of the country may remain weak, which would adversely affect the level of competitiveness and investment, particularly in the Northern region, including Mojkovac. Financial services are presented in public and private sector.

4.1.6. Health and social activities

Health system in Mojkovac is organised through primary health protection. There is one Health Centre Mojkovac and five health points in rural areas, which are under the main Health Centre in Mojkovac. In total, 696 persons provide health services in Mojkovac. Also, there is dispensary with a maternity ward.

Besides the above mentioned, emergency medicine is organised as a unit under the Institute for Emergency Medical Services of Montenegro. There is also, two pharmacies and four private dental ordinations.

Ministry of Labour and Social Welfare is the main institution for organising the system of social and child protection. It is responsible for policy making, provision of finance and supervision of Centres for Social Work (CSW) as institutions which implement social and child protection at the municipal level.

Mojkovac has a CSW, and it makes decisions about the rights of social and child protection, according to the Law on Social and Child Protection. Based on the national territorial organisation of CSWs, Mojkovac’s CSW is functioning under the CSW of Bijelo Polje. The common connection between the CSW in Bijelo Polje and this in Mojkovac is the CSW in Bijelo

5 Strategic development plan of Mojkovac 2012-2019 6 Source: Public Health Found, 2014 Polje holding the legal authority for 1st instance decisions on cash benefit provided; management of the accounts; forwarding benefit information to the Ministry of Labour and Social Protection; providing services to process the payment for carer’s allowance; forwarding necessary funds for one-time assistance and care in institutions outside of the Republic; and, facilitating the payment of cash benefits and other financial requirements of the CSWs from Bijelo Polje and Mojkovac.

A total number of employees in CSW Mojkovac is 9 (2012) out of them 55.6% are professional workers, and 44.4% are administrative staff.

Table 4: Family Material Support and Child Allowance beneficiaries in Mojkovac 2012 2013 2014 2015 Family Number of families 288 276 216 197 Material Number of family 787 763 592 555 Support members Child Number of families 187 178 138 123 Allowance Number of children 358 360 282 243 Source: Ministry of Labour and Social Welfare

According to data, the number of family material support beneficiaries has decreased in the period 2012 to 2015. In total, 197 families receive such type of benefit in 2015 or 8.5% of a total number of families in Mojkovac (0.1% of the total number of families in Montenegro). This percent was higher in 2012 when the 12.4% of families in Mojkovac received family material support. The number of family members who receive family material support has decreased also. In comparison to 2012, in 2015 it decreased by 29.5%.

The number of Child allowance beneficiaries has decreased too. At the end of 2015, in total 123 families received child allowance or 243 children. In comparison with 2012, it decreased by 34.2% and 32.1% respectively.

4.1.7. Culture

Public Institution Center for Culture "Nenad Rakocevic" was established by the Municipal Assembly of Mojkovac to meet the cultural needs of its citizens, encouraging and preserving cultural heritage, freedom of expression, and the right to cultural fulfilment. The Center exists as a complex of cultural institutions within which there are Municipal Library, Art Gallery and Cultural (Folklore) club. The Center for culture has created a very good working conditions with audiovisual equipment and appropriate gallery space. Lack of small halls necessary for literary promotions is solved by using the hall of the Municipality of Mojkovac. This institution organises traditionally film festival named “Mojkovac Film Autumn”. So far 41 was organised, while planned monograph involving all previous 40 years of the Festival should be completed and printing is planned for next year.

Library’s fond is increased during previous years by donations, gifts of native writers, and from own funds. Also, during previous year visits to the book fairs in Podgorica and were organised. The number of members of the library is increasing. The largest number of members are children aged 7 to 14. The Library has good conditions for work. Also, Center for culture organises municipal festivity of reciters, and winners from all three categories were entitled to participate in the National Review of reciters.

Art Program is achieved through continuous operation of the Art gallery, diversity of the content presented, affirmation of new events, contribution to the promotion and affirmation of artists, etc. A significant part of the program was realised in cooperation with institutions of culture, education, local government, associations, NGOs and enthusiasts. During 2016 there were realised ten exhibitions, four documentaries, one museum exhibits, etc.

Cultural Club (Folklore club) "Vesna" of the Cultural Center represents Montenegrin and Mojkovac heritage and Mojkovac in general at numerous fairs and festivals in the cities of Montenegro and neighbouring countries. It organises traditional folklore festival events which bring together about 250 participants. Traditional Folklore "Mojkovac 2016" was attended by 16 folklore clubs from the region and our country. This club regularly holds New Year's concert, participate in all cultural events where they receive an invitation, as well as in various events organised by the Municipality of Mojkovac.

4.1.8. Sport

Sports activities in Mojkovac are organised through different segments. There are one football stadium and two sports halls which are within the secondary and primary schools, as well as open sports grounds. More than ten sports clubs exist in Mojkovac (Annex 2). Local government co-finance some clubs according to the open call and competition. This public competition is announced every year. In 2016, local government co-financed 12 sports clubs with 45,000 EUR. Also, tailing of former lead mine in will be turned into sports zone and construction of golf ground and walking and cycling trails.

4.1.9. Business support services

The Strategic development plan of Mojkovac municipality identified among the key development issues (challenges) the lack of business ideas and a lack of services to support business development. This support exists but it is still limited and mainly related to support provided by the local government, i.e. Department for finance, economy and local public revenues. The local government through the municipal budget supports main development sectors - tourism and agriculture. There is defined agri-budget at the local level which is used for subsidies for producers in orcharding and husbandry. During previous years the construction of solar panels is supported (with 80% of total cost) in pastures where the people with livestock have facilities. Also, 30% of taxes and contributions for agricultural workers are paid by local government. The producers of raw milk who sell it to the private diaries are supported by 3 Euro cents per litre sold. Also, local government co-financed the purchase of milking machines assuming 30% of total price. There is a plan to register all agricultural producers by the end of summer 2017. However, there are still many problems that businesses face which is mainly related to the Placement of products, lack of certain facilities and equipment (cold storage, etc.) and inappropriate marketing and selling strategy.

Also, there is an Entrepreneurial centre located in mixed secondary school Vuksan Djukic. This centre serves those who are interested in receiving information and support concerning business development ideas, start-ups, business management, access to funds, finding business partners and opportunities for project administration. Also, the entrepreneurial centre organises educational programs in the form of training and seminars on various topics that may be of benefit to potential and existing entrepreneurs as well as other parties who wish to improve their knowledge and skills. The Center‘s work is aimed at promoting entrepreneurship as one of the key components of the development of local and regional communities, with emphasis on the promotion of cooperation between schools and businesses. However, the lack of businesses limits this cooperation. Also, the Center organises different activities in cooperation with civil society such as the one that was recently organised titled "Little School of Economics" – organised by NGO Association of Economists and the High School "Vuksan Đukić".

In general, the services of the Entrepreneurial centre could be classified as:

• Providing business advisory services • Organisation of training programs • Networking and promotion.

One trial to support business in Mojkovac is establishing a business zone in Mojkovac as an opportunity to increase exports, employment, the balance between the manufacturing sector and services and to encourage activities that will support producers' capacities developed in zones. However, the business zone is recently established, and there is no a lot of results so far. The business zone is located at Babica polje - 2.1 km from the city centre, and it is partially equipped with infrastructure. The total area of the business zone is 84.556 m2. In the area, there are internal roads, without parking spaces. Also, the zone is along the regional road Mojkovac - Djurdjevica Tara. The zone is located near the main road leading to the capital, near the railway line (about 3 km distance) that leads to the port of Bar. Through railway and mentioned port, transport links are established with regional countries: Serbia, , Croatia and Albania.

There is no sewage system, but as an interim solution, until the construction of the sewerage network, the construction of septic tanks are allowed. For all consumers of up to 150 kW, connection to the electricity grid in the business zone is provided at 380 V. For higher power electricity consumers access to the 10kV electricity network in the immediate vicinity is provided. On the border with the zone, there is a water supply for potable water, public lighting and telecommunications networks which allow easy connection.

Investing in a business zone in Mojkovac has following benefits:

• The possibility of leasing land at a price of 0.05 € / m² for production activities and wholesale trade. • Exemption from payment of fees for municipal construction land for investors who employ more than ten workers. • Fee reduction for municipal construction land for 85% of the regular amount, for investors who employ between six and ten workers. • Fee reduction for municipal construction land for 70% of the regular amount for investors who employ from 3 to 5 employees. • Reducing the amount of tax on real estate by 80% compared to the amount fixed by the decision which regulates this area, during the tenure of land. • Also, some stimulus on a national level also could be applied in this zone and the entire municipality. For instance, Regulation on encouraging direct investment stipulates that the funds are allocated for investment promotion by a public announcement. This applies to investment projects whose minimum investment value is 500,000 €, and which ensure opening of at least 20 new jobs within three years from the date of conclusion of the agreement on the use of funds. A foreign investor may also be the beneficiary of these funds if he/she has established a business in Montenegro. Some funds that are awarded by a public announcement range from 3,000 to 10,000 € per job created, depending on the prescribed criteria. There is also a possibility of the return of funds invested in the construction of infrastructure necessary for the realisation of the investment project.

4.2. Education and VET

The education system in Mojkovac is organised through primary and secondary education. According to the 2011 Census of population, around 23% of Mojkovac population has completed elementary school, 54% has completed secondary school, while 10% of Mojkovac population has completed higher education, which is below the national average (17% of the Montenegrin population has a university degree). The percentage of the illiterate population in Mojkovac is 1.6%, which is approximately equal to the national average of 1.5%.

According to MONSTAT data, the number of pupils enrolled in elementary and secondary schools has had a slight decline. In the school year 2015/2016 only 370 students were enrolled in secondary schools, while in the previous years that number varied between 400 and 480. Similar to other municipalities where such trend is present, the reason is depopulation due to the migration of younger population to more developed Montenegrin municipalities, as well as a negative natural increase. There is no higher education institution within the municipality Mojkovac. On the other side, the participation of persons without qualifications is high at the national level and in Mojkovac, 19.7% and 20.8%, respectively, whereas the participation of higher education students in Mojkovac compared to the national level is considerably lower.

Graph 6: Number of enrolled students in elementary and secondary schools in Mojkovac

Source: MONSTAT

Concerning the quality of education, one of the indicators is student/teacher ratio. In Mojkovac, this indicator is lower than the national average, while it is higher than six Montenegrin municipalities. On average, the ratio is 11 students per teacher.

Graph 7: Students/teachers ratio

Source: MONSTAT

Currently, in the mixed secondary school “Vuksan Đukić” besides general gymnasium, the following VET education programs are being undertaken: • Economic technician • Technician for marketing and trade • Technician for sales • Touristic technician • Technician for cuisine • Technician for serving • Cook • Waiter

The school has 337 students in 14 classes. The sectors that are covered are Education and training, Economy and Law and Tourism, trade and hospitality. During some of the previous years, there were also some educational programs such as in the agriculture, food production and food processing or personal services. For instance, if there is a need, a school organises programs for the agricultural technician, veterinary technician or hairdresser. VET students carried out the practical training by employers in the municipality of Mojkovac with which the School has signed a Cooperation Agreement. Also, in cooperation with local employment bureau, the school organised training for adults such as the program of for acquiring professional qualifications Administrator and language program for learning English.

Further information about the infrastructure development, connectivity, accessibility and environment of the municipality of Mojkovac could be found in Annex 3.

5. SWOT ANALYSIS

STRENGTHS WEAKNESSES • Favourable geographic position and climatic • Emigration of well-educated people conditions for agricultural development • Disequilibrium between supply and demand • The territory of Mojkovac belongs to two • High unemployment rate national parks and other protected areas. • Lack of initiatives and awareness about Comparative advantages for tourism self-employment development • There are no grants for self-employment • Favourable geographic position since • Insufficient support for motivation for Mojkovac is on the main route from North self-employment (training, advisory and other countries towards Podgorica and services, introduction of legislation port Bar (road and railway connection). framework, offices for help for young entrepreneurs and beginners in business) • Natural resources and wealth of forests with • Lack of institutional capacities to deal with potential for wood processing industry or to create and propose additional creative development programs that would reduce unemployment or number of social • Hydro potential which may lead to assistance beneficiaries construction of hydropower plants • Lack of practical lessons in secondary • Mineral reserves, favourable conditions, and school and stronger connection between high potential for sectorial development. school and enterprises (due to the lack of industry and weak economic activity) • Existence of business zone with favourable • There is no business centre conditions for investors • Lack of training and courses for acquiring soft skills and specific skills such as in ICT (digital marketing, etc.) • Inadequate efforts to increase tourist turnover and to prolong touristic activity to off-season period. • Lack of local events (such as job fairs) for connection of unemployed and business sector • Lack of promotion of temporary jobs in the agriculture, tourism sector • Insufficient active labour market measures • Undeveloped electricity grid in rural areas and weak supply voltage which could impede wood industry development and tourism in these areas • Lack of program of informal education (especially for the women and persons from rural areas) • Lack of promotion of crafts and home- made production • Lack of associations of producers (for instance association of raspberry producers) • Market volatility and lack of timely payments • Lack of access to finance (funds) under good conditions

OPPORTUNITIES THREATS • Lack of institutional will for additional • Development of rural tourism and efforts that would be related to accommodation in rural homes (for example) unemployment reduction (involvement in bed & breakfast) and improvement of touristic new programs and actions) offers would increase employment in tourism sector and decrease unemployment rate • Lack of implementation of regional (especially youth and rural cohort) development strategy and other local • High opportunities for cluster development plans due to the lack of development in agriculture, wood processing resources at national and local level and tourism. Development of clusters would • Undeveloped tourism facilities and lack increase production, expedite economic activity of all category accommodation and increase labour demand and employment in the municipality. • Inadequate treatment of the solid waste • Still unused potentials of fruit producers (numerous raspberry planters) which could cause environmental • Medical and aromatic herbs production pollution • Small processing capacities could • Underutilised resources for organic increase value added of local planters and production contribute to some employment • Possibility for employment of youth who • Unorganised purchase of agricultural would be trained for digital marketing (many products; producers of food, for instance, have problem with marketing, selling, etc.) • Existence of business centre would absorb local resources, and in capacity terms, some gaps could be covered • The entrepreneurial centre in school could arrange a competition for the best business idea(s), and many stakeholders could support its realisation and start the business.

• Transforming the tailing of former lead mine into sports zone would create jobs in this field

• Due that utilisation of agriculture land is not fully achieved, additional utilisation would lead to higher agriculture production and additional employment in this sector

• Increase of processing level by SMEs in the agriculture

• Establishment of service agencies (business support) • Restart of production at the mine “Brskovo” would lead to job creation and employment growth

CONCLUSIONS

The labour market in Mojkovac suffers from numerous problems that affect mostly youth, women (especially those in rural areas) and long term unemployed persons.7 This indicates that there is structural unemployment in this municipality, which requires the active involvement of all stakeholders. Currently, these groups encounter challenges that are recognised within this analysis and which need to be solved to reduce the unemployment and increase the level of social inclusion.

There are also numerous potentials related to the territory of Mojkovac municipality. Natural resources provide many opportunities for wood processing, energy production, tourism and agriculture and entrepreneurs from these sectors should be supported continuously by different incentives (not necessarily financial).

Tourism potential of rural areas for the development of ecotourism is underused. It is necessary to take advantage of the interest of the rural population and in an organised manner approach to the development of the tourism industry. Potentials of Durmitor, Sinjajevina, Bjelasica, Tara river are so far economically under-valued regarding the development of the tourism. In addition to tourism, this area has conditions for the production of biologically pure food, organic food, which would contribute to touristic offers. The municipality of Mojkovac has natural advantages for the development of winter mountain tourism. They are reflected in the climatic conditions and terrains of northern exposure, which can be used in the design of ski - paths. tourism is still undeveloped although there are some cases of individual initiatives to create an offer (bed&breakfast type) which needs support.

Production of food (especially organic) is great potential but still without significant support when it comes to appropriate marketing and market targeting for these products. Also, milk producers, although with institutional support, still cannot manage to collect money timely for their products, which indicates that stronger clusters and associations are needed at the municipal level.

7 Persons with disabilities are not recognized as big target group at the workshop held in Mojkovac. These persons are mostly under long term unemployed and there are currently grants provided by EAM for their employment. . Business support and solving problems on investors’ and entrepreneurs’ side would also contribute to the better performance of the local labour market, especially when it comes to youth employment. On the other side, local institutions should contribute to better preparation of all recognised vulnerable groups to the needs of generated jobs in the future.

ANNEXES

ANNEX 1:

Emigrants from Mojkovac by age groups and gender during 2012-2016

% of the total Age group Total Male Female Male Female 0-19 11 6 5 54.5 45.5 20-39 66 28 38 42.4 57.6 2016 40-59 18 11 7 61.1 38.9 60+ 9 3 6 33.3 66.7 Total 104 48 56 46.2 53.8 0-19 9 4 5 44.4 55.6 20-39 73 32 41 43.8 56.2 2015 40-59 17 8 9 47.1 52.9 60+ 7 5 2 71.4 28.6 Total 106 49 57 46.2 53.8 0-19 12 5 7 41.7 58.3 20-39 70 33 37 47.1 52.9 2014 40-59 21 8 13 38.1 61.9 60+ 5 3 2 60.0 40.0 Total 108 49 59 45.4 54.6 0-19 5 1 4 20.0 80.0 20-39 79 30 49 38.0 62.0 2013 40-59 29 19 10 65.5 34.5 60+ 13 9 4 69.2 30.8 Total 126 59 67 46.8 53.2 0-19 8 4 4 50.0 50.0 20-39 81 32 49 39.5 60.5 2012 40-59 36 23 13 63.9 36.1 60+ 3 1 2 33.3 66.7 Total 128 60 68 46.9 53.1

Emigrants from Mojkovac by receiving region of Montenegro

Central region Central region North Podgorica- South North Podgorica- South Total region Total capital region region Total capital region city city 2016 13 57 47 34 104 12.5 54.8 45.2 32.7 2015 12 62 55 32 106 11.3 58.5 51.9 30.2 2014 11 69 55 28 108 10.2 63.9 50.9 25.9 2013 18 86 72 22 126 14.3 68.3 57.1 17.5 2012 18 72 61 38 128 14.1 56.3 47.7 29.7

ANNEX 2

Sports clubs in Mojkovac: • Football club “Brskovo” • Handball club “Mojkovac” • Athletic club “Tara” • Table-tennis club “Mojkovac” • Jiu-Jitsu club “Ipon” • Wrestling club “Mojkovac” • Ski club “Bjelogrivac” • Shooting club “Brskovo” • Kayak club “Mojkovac” • Paragliding club “Feniks” • Chess club “Brskovo” • Fishing clubs • Powerlifting club “Top forma” • Mountaineering club ”Dzambas”

ANNEX 3

Infrastructure development, connectivity, accessibility and environment of the territory

1. Land and Soil

From geomorphological aspect, Mojkovac’s place belongs to the morphic system of relatively young Dinaric Mountains. Due to the mountainous type, in the northern region, there is little fertile land. The territory of the region regarding the vegetation belongs to the continental phytogeography region. The total area of Mojkovac is 367 km2, out of which almost half (49.1%) are forests. This ratio is similar to the other northern municipalities.

Graph 8: Land and purpose of use

Source: Spatial Plan of Montenegro until 2020

In total, 13,686 ha or 37.3% of the municipal area is agricultural land. However, the total utilised agricultural area is 7,873.3 ha. The majority of utilised agricultural land is permanent meadows and pastures (98.8%).

Table 5: Total utilised agricultural area Area in ha % Utilized kitchen gardens and/ or 44.6 0.6 gardens Utilized arable land 29.7 0.4 Orchards 7.5 0.1 Nurseriers 12.0 0.2 Permanent meadows and pastures 7,779.5 98.8 Total utilized agricultural area 7,873.3 100.0 Source: MONSTAT-Agricultural census 2010 The lowest percentage of utilised agricultural land is related to orchards and nurseries 7.5 ha and 12.0 ha, respectively.

2. Transport

The municipality of Mojkovac has a good geographical position about the basic road network of Montenegro. It is located on one of the main arterial routes in Montenegro that stretches from the border of Serbia (Špiljani) - Berane - Mojkovac - Kolašin - Podgorica - Virpazar - Petrovac - . With the Municipality of Pljevlja, it is connected through the regional road Mojkovac - Djurdjevic Tara - Pljevlja. The road network in the municipality of Mojkovac by category can be divided into main roads, regional roads, local roads and unclassified roads.

The only main road in the municipality of Mojkovac is the main road M - 2 which extends in a north - south direction, from the border with Republic of Serbia (Špiljani) through Rozaje, Berane, Ribarevine, Mojkovac, Kolasin and Podgorica to Bar (main port). The length of this road on the territory of Mojkovac is 20 km. The average width of this road is 7m.

From Mojkovac north-west there is an only regional road in the municipality, R - 4, from Mojkovac via Djurdjevic Tara to Pljevlja (32 km is the length through the territory of municipality Mojkovac) Condition of vertical signage is poor, and the horizontal does not exist.

On the other side, a significant portion of all road network in municipality Mojkovac belongs to local and unclassified roads. The local road network has a role in connecting the inhabited places with the road network of higher rank. However, the quality of the network of these roads is not very good. The average density of local roads in the municipality Mojkovac amounts to 20,16 km / 100 km². The network of local roads in the municipality has a total length of 74km, of which only part is asphalted (for light trucks and small cars) while the part is macadam. At some places, asphalt pavement surfacing is worn out and in bad shape. The majority of local roads are with a small width of the roadway (2,5 - 3 m) and with unfavourable technical-operational characteristics which prevent the normal flow of traffic, especially in winter conditions. The length of unclassified roads in the municipality is around 290km, out of which the majority are dirt roads. All unclassified roads are in poor conditions.8

Through the municipality, Mojkovac passes single-track railway line of normal gauge, as part of the railway Belgrade - Bar which passes through Montenegro. This line is traffic infrastructural project in Montenegro with the highest international significance because it connects this region of Montenegro with other regions of the Balkans and . Mojkovac is (by railway) located 80 km from Podgorica, 135 km from the port of Bar, and 340 km from Belgrade. Railway station in Mojkovac is located near the industrial zone. The railway station has a total of 4 tracks, of which one is manipulating, two are for passengers, and one is the cargo. However, this line should be reconstructed since it is in bad conditions in some parts.

8 Strategic development plan of Mojokovac 2012-2019

3. Electricity networks

Electricity network infrastructure consists from switchyard facility 220/110/35/10KV. Transformer’ station 110/35kV is supplied from electric power lines 110kV from Ribarevine. The total length of this lines is 14 km. Other transformer stations 220/110kV are supplied from electric power lines from Pljevlja. Under the switchyard facility is transformer 35/10 kV which supplies electric energy to the consumers in the urban and rural areas. Electric network in the city is cable and in rural areas is air network.

Scheme 1: Electricity network of Montenegro and Mojkovac- Electric power lines

Source: Montenegrin Electric Transmission System

In the recent period (2013-2015) electric network and substation in Mojkovac had been improved and modernised. Namely, reconstruction of the plant (construction of new 220 kV plant and connection to the overhead line Podgorica-Pljevlja according to “input-output” principle) in SS 220/110/35 kV “Mojkovac” was completed in 2013. During 2015, substation 220/110/35kV Mojkovac was extended by installing a second transformer, whereby providing fulfilment of “n-1” security criterion.

4. Water and sanitation infrastructure

The key water source for the city is from Gojaković, built in 1965 and reconstructed in 1995. The distance from the source to Mojkovac (Catchment/tank) is 9135m. In this first diameter, water supply pipeline was 150mm. The water supply system was meeting the needs of the population during the certain period it became insufficient capacity, especially when rural households that are located along the route joined to the main supply. After reconstruction, the pipeline has a diameter of 250 mm and capacity of 60 l / s which is assessed as sufficient. The strategic plan assumes construction of more water pipes in certain places (Gostilovina and ) as well as continuous protection and arrangement of city water source Gojaković. Protection and arrangement of city water source Gojakovići assume complete protection of water sources from accidental or deliberate pollution and other influences which may adversely affect its abundance and health safety of drinking water by the legislation.

Water supply for the urban population in the municipality of Mojkovac can be considered as good, but there is still space for improvement. In the past 20 years, it is an evident improvement of water supply in urban areas because the percentage increased from 85% to nearly 95%. However, the average supply of the total population of the municipality Mojkovac with water according to the census dropped from 87% in 1991 to 78% in 2011, which would mean that the situation is deteriorated regarding water supply in rural areas.9

Table 6: Some indicators on water infrastructure and users Total Number of Population Number of Number of Rural water pipes population households - urban households companies using water using water maintained maintained pipes pipes by local by pubic population company 8622 2820 3590 1820 232 3 3 Source: Strategy for water management

9 Montenegrin strategy for water management When it comes to the supply of industry and energy with water for technological needs, Strategy for water management provides projections of water needs in municipalities by 2035. These projections correspond to the projected capacity, which would at the same time match the recovery in industrial production. Projected needs for Mojkovac are 0.9 and 1.6 million cubic meters of water in 2025 and 2035. The Tara river is recognised as a potential source of water for industry.

In the area of the core city Mojkovac, there is constructed a network of sewage wastewater, divided into two basins, one that channels the objects from the area of the upper Mojkovac and other that channels objects from the area of the lower Mojkovac. From the lower part of the city sewage waters, along with atmospheric waters flow into the main collector, and continues to purification system. In the upper part of the city sewage along with atmospheric water, after passing under the highway flows into the air collector DN1000 which flows into the Jušković stream. During the rehabilitation of the tailings pond, a plant for the wastewater treatment plant (WWTP) and main collector are built with the aim to accept and drain all the sewage from buildings placed on the right bank of Tara. As already stated, the sewage system of Mojkovac has been mixed. Reviewing the state of the sanitation system in the field led to the conclusion that the best technical solution for removing the sewage is building of new collectors, while current mixed one should be converted into an atmospheric. The area covered by the urbanisation plan Babica Polje is not covered by sewage system. Septic tanks are used for waste water.

5. IT and communication infrastructure

Mobile telephone operators. In Mojokovac three mobile operators provide a signal through six base stations at different locations. There are Telenor, T-mobile and M-tel mobile operators who provide full signal coverage of Mojkovac municipality.

Radio and TV program. In Mojkovac operates local radio and TV and transmits the signal on the municipal territory. Also, national radio and TV (two programs) transmit and distribute radio and TV signal, as well as commercial radio and TV. There are broadcasting stations at six locations. Internet. A total number of internet users (ADSL, WiMAX and satellite internet) in 2015 was 527. In total 99.2% are users of ADSL. The number of ADSL users increased during the period from 2009. On the other side, there are two users of WiMAX internet, and its number has decreased in the period from 2012. There are no internet users via cable television and optical fibre – FTTx.

Table 7: Internet users in Mojkovac ADSL WiMAX % of ADSL users % of WiMAX in Montenegro users in Montenegro 2009 244 0 0.56 0.00 2010 302 1 0.53 0.02 2011 430 2 0.66 0.03 2012 454 4 0.68 0.06 2013 493 3 0.72 0.05 2014 521 2 0.75 0.03 2015 523 2 0.79 0.03 Source: Agency for Telecommunications and Postal Services

Operator SBS Net Montenegro d.o.o. provides access to satellite internet. In 2015, a total number of users in Mojkovac was 2 (TW8 10/2 Mb/s 8GB) or 2.6% of a total number of users in Montenegro. Also, there is one Wireless access point, which is provided by Crnogorski Telekom. Comparatively, in Montenegro exist nine providers and 63 wireless points. Post office. There is one post office which is operating under the regional centre in Bijelo Polje.

6. Housing sector

According to the last Census of population and households, the number of dwellings in Mojkovac amounted 3802. The majority of that was used only for housing (almost 70%), while some of them were used seasonally. Also, the number of temporary vacant dwellings amounted 694, or 18.25% probably because some population left Mojkovac and visit their homes irregularly.

Table 8: Dwellings and area by use and other occupied premises Total Only Both for Temporarily Abandoned Seasonal Only Without for housing vacant use for data housing and industry about industry way of use

No. of 3802 2634 21 694 109 323 8 13 dwellings Area, m² 221279 157996 2129 38925 5045 16359 233 592 Source: Census of population and households 2011

In 2011, there were 2048 dwellings connected to public water supply system, while 892 were connected to hydrophone or similar. The public sewerage system was used by less than half of dwellings, while the septic tank was dominant. However, some later documents show that situation is improved slightly. Also, data show that majority of dwellings (90%) is in buildings made of solid material. Some persons in dwellings amounted 8530. More than half of dwellings has 3 or 4 rooms. Also, the majority of dwellings are built in the period 1970-1990. The number of abandoned dwellings doubled between two census periods (from 2003 to 2011).

7. Environment 7.1. Pressures on the environment

Mojkovac is mostly mountainous terrain which is crisscrossed by rivers. Tara River Canyon and specific flora are natural attractions of the area. Parts of the two national parks (Durmitor and Bjelasica) are on the Mojkovac municipality area. Also, forests make almost 50% of the territory. However, there are pressures on the environment which are related to solid waste and wastewater. As it mentioned in the previous section, one of the major environmental problems is solid waste management and its inadequate treatment. Namely, there are no organised landfills which fitful minimum sanitary and technical conditions. On the municipal are, six landfills are recognised and numerous temporary dumps.

On the other side, discharge of urban waste water, atmospheric wastewater, industrial wastewater, usage of chemical products in agriculture and dumps endangers waterways in Mojkovac. Temporary dumps are located near to rivers. Industrial waste is produced by the company „Tara Precision Works“. In 2012, the total amount of industrial waste was 700kg (paint and varnishes, inorganic solvents, heavy metals, sludge, etc.).

Tailing of former lead mine in Mojkovac was sanitised in 2011. It had the highest risk of pollution of the river Tara and the environment. The total area of the tailing is 19 ha, and there were around 2 million m3 of tailings material. This material was harmful to human health and the environment. The total cost of the project was 11 million EUR, and this area will be turned into sports zone.

7.2. Protected areas

Mojkovac municipality contains the parts of two national parks: NP Durmitor and NP Biogradska Gora both with the status of national parks since 1952.

The region of Durmitor is located in the north-west of Montenegro. This area includes the massif of Durmitor, the canyons of Tara, Susica and rivers and the higher part of the canyon plateau Komarnica, covering the area of 39.000 ha. The national park Durmitor cuts across territories of municipalities: Zabljak, Savnik, Pluzine, Mojkovac and Pljevlja. The main feature of relief of Durmitor area is spacious plateau on 1.500m, cut by deep canyon valleys and from which striking mountain peaks rise, 48 of which go above 2000m. The highest among them is Bobotov Kuk with 2.525m. Special beauty to Durmitor massif gives 18 lakes, called „Eyes of the Mountain” on height above 1.500m. National park Durmitor is plentiful of cultural monuments from ancient to modern times. The most characteristic is the middle-aged monuments: ruins of towns and fortresses, bridges and watchtowers, necropolis and monastery complexes in the valleys of the river Tara.10

Some of the potentials for future development recognised by the study Economic Valuation of Montenegro’s Protected Area System are:

• Many hydrographic objects. As noted above PA Durmitor has great potential for hydropower development.

10 Economic Valuation Of Montenegro’s Protected Area System, UNDP, GEF, Institute for Strategic Studies and Prognoses, 2011 • Forests and forest habitats are one of the most important natural resources of PA. The area owns significant areas covered with forests and pastures that allow the development of specific types of agricultural production (presentation of healthy food)

• Inclusion of PA Durmitor in international programs funding research and protection of valuable and vulnerable areas

• Inclusion of PA Durmitor in the international system of development and ecological monitoring • PA Durmitor area has natural conditions for the development of high tourism and favourable position about the main tourist flows which in the long term can affect the development and potential of the park. • Cultivation of plantations of rare and protected species and organisation of nursery production • Small business with small factories based on processing agricultural and other goods.

The total area of the National park Biogradska gora with the zone under the protection amounts 25,120 ha, out of which 4,200 ha within the municipality of Mojkovac. The other municipalities whose territory belongs to this park are Kolašin, Berane, and Bijelo Polje. The area of National Park is characterised by extraordinary species and eco-system diversity that makes it the 'area of interest' and the centre of diversity of both flora and fauna of the Balkan Peninsula and Europe. The National park Biogradska gora is home to 150 bird species, ten mammal species, three different types of trout, 350 insects and more than a hundred different types of trees, some more than 500 years old. Additionally, the park contains nine lakes, the largest being Biogradsko jezero (Biogradsko Lake). Basic elements of the Park are untouched forest, large mountain slopes and tops over 2000 meters high, six glacial lakes, five at an altitude of 1820 meters and one easy accessible low land lake located at the very entrance to the park, Biogradsko Lake. Swift streams cut through the scenery of Biogradska Gora, green pastures and clear lakes reflecting centennial forests. The Park is renowned as a unique geomorphologic region and, as such, it is attractive for scientific research. Among all sectors of the economy strongest potential for development is in tourism. Natural beauties potential for development of tourist facilities suitable for recreation is enormous. Skiing, climbing, hiking are just some of the activities that can be practised on Bjelasica mountain, but there are not enough agencies which could organise, in a good way, such activities. Additionally, the accommodation capacities are quite modest comparing to the natural resources that can be used for commercial purposes. Therefore, local administrations expecting large investments in tourist facilities, ski resorts and related recreational facilities in the following period. Agriculture is quite poorly represented, although there are excellent conditions for the development of organic food. Lack of interest and lack of financial support is the most likely reason for the lack of higher production. In the future, this potential could bring great benefits to individuals or companies that decide to invest in this economic activity. Therefore, it can be concluded that there are great potentials in all economic sectors (tourism, manufacturing).11 EMERALD network in Montenegro also consists of the fully agreed and accepted areas of importance for the protection that are located partially on the territory of Mojkovac municipality i.e. Bjelasica and Durmitor with Canyon of Tara river. The largest part of the municipality Mojkovac belongs to Tara River Basin. These protected areas enable possibilities for economic valuation especially in the area of tourism. The Bjelasica mountain and the National Park Biogradska gora are both near town.

The touristic potential of protected areas is under valorized. In the course of creating the conditions for a better valorization of resources in this part of the country, a Special Purpose Spatial Plan for Bjelasica and Komovi (mountains to the north) was adopted (2010), which foresee eight mountain resorts in the future. The main purpose of this plan is to provide a vision and framework for the development of the region in which the plan applies. By the plan, a Regional tourist organisation (RTO) was established, in cooperation with the Austrian- Montenegrin Partnership. They are working on promotion of tourist offer and the potential of the Bjelasica Komovi.

Also, Special Purpose Spatial Plan for the area of Durmitor (adopted in 2016) defines the basic concept of use of the area, ranking of centres and infrastructure equipment that will enable the protection and valorization of natural resources regarding sustainable development. Tourist infrastructure of the Northern region is focused on the development of rural and eco-tourism,

11 Economic Valuation Of Montenegro’s Protected Area System, UNDP, GEF, Institute for Strategic Studies and Prognoses, 2011 excursions and cultural tourism, as well as mountain sports and recreational tourism, while health tourism also has the potential for development. Also, the project of revitalising summer pastures, tourist eco-ethno village, agricultural pastures, farms and so on is of high importance for tourism development.

7.3. Solid waste management

The total quantity of waste generated in Mojkovac is 2,240t12 or 0.92% of waste generated in Montenegro. The main component is an organic waste (32.1%). This is mainly garden and other biodegradable waste. Furthermore, paper, plastics and glass make 33.4% of total waste generated in Mojkovac.

Graph 9: Structure of waste generated in Mojkovac (2013)

Source: National Waste Management Plan 2015-2020

In total, 14t of the hazarded waste is generated or 0.6%. Also, a small percent of generated waste is related to heavy and ferrous metals (in total 2.8%).

When it comes quantity of waste collected it is at 64% of the total quantity of waste generated or 1,442t. Waste collecting is organised in Mojkovac, but at a small percent of the total area. Namely, organised waste collecting is conducted at 32 km2 of the municipal area or 8.7%. It is

12 In 2013. much lower than percentage at the national level – 14.4%. The total number of consumers of organised waste collecting is 949 households (or 34.2% of the total number of households in Mojkovac) and 158 legal entities.

One of the major problem in Mojkovac is the inadequate treatment of the solid waste. There are eight irregular landfills that do not meet even the minimum sanitary and technical conditions. The total capacity13 of all irregular landfills is 32,090m3. Landfills in Podbrisce „Zakrsnica“ has capacity from 32.000 m3, while capacities of others amounts from 10 m3to 20 m3. However, these landfills are not

The removal of garbage and other solid waste from the urban area and surrounding suburbs (Fields Podbišće, Urosevina, Battle Field, Brskovo) performs by public communal enterprise "”. In rural areas, individuals throw garbage at temporary dumps (dumps formed in the valleys of the rivers, along with the local roads, etc.). However, National Waste Management Plan defines measures for the solving this problem in Mojkovac and neighbour municipalities.

7.4. Water management

When it comes to the use of geothermal and mineral water as well as water for commercial sale the contract for spring "Vrelo" in an amount of 1 l / s is signed according to the Law on Concessions, and after the adoption of the new model of concession policy in Montenegro and adoption of decisions on the allocation of concessions by the government of Montenegro. According to the plan for granting concessions in the field of bottled water for commercial purposes, it is initiated the procedure for granting a concession for source "Ravnjak".

Review of existing structures for flood protection in the area of Mojkovac shows that there are conducted regulations of the river Tara, i.e. protection of tailings embankment, regulation of tributary , and repairment of landslides in Mojkovac. A project that would have a positive effect regarding flood protection is related to further regulation of Tara river on territory of Mojkovac municipality (parts: Podbišće 2,7km, Gojakovići 3,2 km and 4 km). Also, one of the first systems for wastewater treatment in Montenegro is built in Mojkovac, and it cost 1.95 million €.

13 National Waste Management Plan 2015-2020 At the sources used for public water supply, sanitary protection zones were established, and protection regime was determined. The main project for protection and regulation of water source Gojkovići is designed where the zones of sanitary protection are defined. The activities of water supply and wastewater management perform a public company for water supply and sewage, which in Mojkovac performs other communal activities. This sector, as well as the overall sector of public utilities, is characterised by numerous problems that are a result of the general economic situation, but also earlier acquired habits that water is observed as a social category.