5,1 million euros of state aid to railway transport

Last year, the government allocated 19,74 million euros on the basis of state aid. The central region again received the most money, 11,28 million euros
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State company with big losses: Railway transport, Photo: Boris Pejović
State company with big losses: Railway transport, Photo: Boris Pejović
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 20.12.2018. 19:28h

Railway transport, which is on the list of tax debtors for employee contributions of 4,48 million euros, received aid worth 5,1 million euros from the state.

These are the data from the report on the state aid granted for 2017, which arrived in the parliamentary procedure almost six months late.

The report did not explain in detail what exactly this state aid refers to, except that based on European rules it was treated as aid based on a service of general economic interest.

The total state aid awarded last year was 19,74 million euros, which is a decrease of 4,7 percent compared to 2016, when 20,71 million euros were awarded.

"The percentage of reduction of state aid in GDP decreased from 0,52 percent in 2016 to 0,47 percent in 2017," the report says.

When looking at state aid by region, the most money went to the central region, 11,28 million, while 3,2 million each went to the coastal and northern regions. Of the cities, Podgorica received 7,2 million, Budva 1,7 million, Bijelo Polje 1,4 million, Cetinje 1,2 million.

The report contains more detailed information about individual companies that received state aid based on special contracts concluded with the Government. Thus, as an unsuccessful state, the aid to the company MB Turist from Žabljak, which in 2016 was enabled to pay 98 thousand in debt for taxes and contributions to employees and for VAT, in installments. That company manages two catering facilities in Žabljak, and was the tenant of the Savin Kuk ski resort in 2012, 2013 and 2014. The tax administration determined that installments for debts were not paid regularly, so last year 30 was forcibly collected for taxes for contributions to employees and another 13,6 for VAT.

The ski resort Kolašin 1450, owned by businessman Zoran Bećirović, has so far partially realized the planned investments for which the state canceled the aid to pay 2014 thousand euros in taxes in seven installments from 2020 to 240. So far, 137,66 thousand have been properly settled.

On the list of beneficiaries of state aid is the Carine company owned by Cedo Popović, which received a subsidy from the Ministry of Tourism for a loan it took from the Investment and Development Fund (IRF) worth 3,5 million for the completion and furnishing of the Park Hotel. The subsidy was 20.000 euros, and the hotel, as stated in the report, is open and operating successfully. And the company Helada Mont received 10 thousand aid as a subsidy for the interest rate for a loan of one million euros. That loan was approved by the IRF for the purchase of office space and a hotel, and the obligations are being properly serviced so far.

According to the report, the Hemomont company, which in mid-2016 concluded a contract with the Government for aid worth 216 thousand euros for the project "sterilon nasal spray, racks with mobile supports, waste water treatment system and optimization of the production process", has so far complied with the obligation to employ 30 workers. It is established that 1,57 million of the planned 2,1 million have been invested in that project so far. This project should be implemented in a period of three years.

The company Franca has fully realized the project of building a factory for the production of permanent meat products without smoke, for which it received 560 thousand euros of aid from the state, based on the contract from July 2016. The obligation was for the company owned by Himlija France to employ 70 workers for an indefinite period, and 72 workers were employed.

Help for the Brown Coal Mine was profitable

The dark coal mine from Beran received state aid from the Ministry of Economy in the form of a write-off of obligations based on the concession fee, postponement of obligations for contributions to pension and disability insurance. The government assumed debts for taxes and contributions, and money was allocated from the budget for partial financing of the social program.

"Receiving this type of assistance significantly relieves the business of the company and gives more chances for an investment plan. The goal of complete revitalization of all the Mine's facilities was achieved, 155 workers were employed, work was carried out in three shifts and production was brought to 5.000 to 6.000 tons per month," the report says.

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