Nurković: Three scenarios for Montenegro Airlines, in all three countries will have significant costs

Montenegro Airlines is one of the biggest state losers with accumulated debts of around 90 million euros, twice the value of its assets. Last year, he received 15 million euros directly and indirectly from the budget, bypassing the law on state aid. When asked if they helped that company again this year, Nurković replied that it was no secret that they did
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Nurković, Photo: Gov.me/S.Mati'
Nurković, Photo: Gov.me/S.Mati'
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

By the New Year, the fate of Montenegro Airlines will be known, the way in which the forgotten and uncontracted works on the highway will be carried out, and thus the new deadline for the completion of the Podgorica-Mateševo ​​road section, as well as the concession deed for leasing the airport, said the Minister of Transport and of Maritime Affairs Osman Nurković today at the annual media conference attended by directors of all directorates and administrations in the ministry.

He said that there are three scenarios for Montenegro Airlines - remaining a state-owned company with business rehabilitation and taking over debts, privatization and bankruptcy.

"In all three cases, the state will have significant costs. Even in the case of privatization, the partner wants a clean company without previous debts, which will have to be taken over by the state. If bankruptcy occurs, we will also have significant direct financial damages, plus workers will lose their jobs, we will lose some flights and we will have less passenger transport. There are many doubts from previous years. The deterioration of the situation was significantly influenced by the fact that the rehabilitation plan for the company from 2011 was not completed, which created new costs and made business more difficult. However, the continuation of this situation is not possible and a decision will be made by the New Year," said Nurković.

Montenegro Airlines is one of the biggest state losers with accumulated debts of around 90 million euros, twice the value of its assets. Last year, he received 15 million euros directly and indirectly from the budget, bypassing the law on state aid.

When asked if they helped that company again this year, Nurković replied that it was no secret that they did.

Annex with CRBC for the interchange or it will be built by domestic companies

The minister stated that they are now negotiating with the builder of the Smokovac-Mateševo ​​highway section, the Chinese company CRBC, regarding an annex to the contract that would include the construction of the "forgotten" Smokovac interchange, as well as other non-contracted works - electrical and water networks and part of the access roads.

He expects that work to be completed by the New Year.

"If we don't reach an agreement with CRBC, and I expect we will, we will also talk to domestic companies about whether they can take over that part of the work. That would mean that we have to call for a tender, which would extend the deadlines for the completion of the work," said Nurković.

He stated that the deadlines are not the priority, but the quality of the works. That is why he could not answer when the Podgorica-Mateševo ​​highway section could be opened for traffic.

The contract deadline was May 2019, but due to non-contractual works and other omissions of his predecessor, the completion of the works, as previously announced by the supervisory commission, will be delayed by a year.

The minister could not even say how much the "subsequent works" would cost.

"Vijesti" previously announced that the ministry's estimate is that these works will cost around 65 million, and that CRBC is asking for 120 million.

"I think the price will be within the 10 percent of the project's value, which is stipulated in the contract for possible additional works," said Nurković.

That ten percent would amount to 80 million euros.

Nurković stated that they are preparing documentation and financial construction for the second phase of the Mateševo-Andrijevica highway section of 21 kilometers, which, according to estimates, would cost 273 million euros.

The minister stated that they have sent documentation to the European Commission (EC) to approve a grant - a grant of 20 percent of the investment, as well as to the European Bank for Reconstruction and Development to approve a loan for the remaining amount of money.

"We had criticism from the European Commission for contracting business with a Chinese partner for this section. Now they can be our partners for the new section," said Nurković.

The minister said that he and his colleagues from Serbia are agreeing on the meeting point of the highway near Boljar, and that he received another assurance that Serbia will soon start preparing the project for the section of the highway from Požega to Boljar, so that "this will not be a road from nowhere to nowhere". .

Public alert for airports in January

He stated that the invitation to tender for leasing the airport will be announced after the New Year holidays.

He said that it will be one of the best jobs for the state, that it will get a quality partner, large investments, significant revenues for the state and an increase in the number of passengers.

"The conditions that will not be waived will be a minimum of 85 million investments in the next three years, a minimum of 100 million euros in advance concession payments, an annual concession of a minimum of 10 percent of revenue, as well as taking over the existing airport workers according to the collective agreement," said Nurković.

He stated that they have no serious critics of this project, that they have analyzed all concession contracts for airports in the region and that this one will be the best because they have learned from their mistakes.

The minister announced large investments in road and railway infrastructure, as well as in port authorities and safety at sea.

He said that the ring road project around Budva worth 80 million euros will start next year, of which 40 million will be a non-refundable grant from the European Commission.

Rail transport will be better in three years

When asked whether the announced investments of 70 million euros in railway infrastructure, half of which are non-refundable grants, will mean that trains will be less late and will be faster, Nurković said that the railway is in bad condition and that so far around 50 percent.

"When these investments are finished, in three years, we will have a better quality railway, which will enable faster and safer traffic. For that, we also need better quality trains, for which we cannot get grants, but we will have to provide money from the budget. A frequent cause of delays is the situation on the railway from Serbia, but I received assurances that they will also reconstruct the disputed sections," said Nurković.

More attention to sailors because they bring 200 million euros

He stated that his ministry wants to pay special attention to seafarers and to have discussions with their representatives in order to make it easier for them to work and apply for jobs on ships from as many countries as possible.

"Soon we will sign contracts with the Netherlands and Ukraine to enable work on their ships as well. We are also working on new forms for their documents so that they are not written in ordinary handwriting as they are now, but so that they look like a document of a serious state, the credibility of which no one can trust to doubt. Montenegro has between six and a half and seven thousand seafarers who annually earn and send home around 200 million euros, which is a very large income and the state must pay more attention to them," said Nurković.

The minister stated that they have drawn up a plan for the unification of Montenegrin and Barska plovidba and that it will be offered to the Government. The goal of unification is to reduce costs and create conditions for better business. The government is now paying debts for the purchase of ships to Crnogorsk plovidba. Nurković said that he expects higher revenues from this company because the prices of ship rentals are rising on the maritime market.

They will try to eliminate the bad road builders

When asked why jobs for the construction and reconstruction of roads are given to companies that are constantly late with works, such as "Tehnoput" which was late with the Mekavac tunnel, works on the road to Budva and now with the construction of the boulevard through Donja Gorica, Nurković admitted that there is a problem but that they have a major limitation in the law on public procurement.

"We cannot choose a company that we know is of better quality, if someone else has offered a lower price. How would the media criticize us for giving a job to someone who is more expensive even though we know it is of better quality. I also talked to colleagues from the region about this problem. We have to find a way to eliminate bad performers," said Nurković.

The director of the Traffic Directorate, Savo Parača, reacted to this issue, stating that there are many objective problems that are causing delays in works, such as unresolved property disputes and the need for subsequent works, as well as that time is needed for all these changes.

"We are under pressure to carry out the works with traffic diversions, and all this causes additional problems and delays," said Parača.

He did not explain why these problems are not solved before contracting the work.

When asked if 24 years is a sufficient period for them to prepare and start the announced construction of the Cetinje-Čevo-Nikšić road, Parača admitted that the project has been announced for a long time and is being delayed, but that the construction of the first section could start next year.

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