The economic citizenship project that started in January 2019 has brought in 310 million euros so far. Of the total amount, 188 million is in a special account (ESCROW) where foreigners who wanted a Montenegrin passport had to pay money, while the rest was transferred to the accounts of the state and investors who build development projects in the field of tourism.
These are the data that "Vijesti" received from the director of the Investment Agency (Montenegro Investment Agency-MIA) Mladen Grgić.
According to the decision on this project, the state received part of the money based on taxes in the amount of 30 million, and until today it has not used a single cent to improve the development of less developed municipalities as planned because it did not adopt the criteria for that.
The Ministry of Economic Development and Tourism (MERT) announced for "VijestI" that "in the coming period, they will prepare analyzes that will show how to best use the money for balanced regional development."
MERT also indicates that certain investors who have been approved for development projects in the field of tourism within the project are late with the works, but they do not specify why and which investors, but that "will be the subject of further analysis and action".
The government's project to acquire Montenegrin citizenship in exchange for investments in some of the investment projects in the fields of tourism, processing industry and agriculture was scheduled to end at the beginning of this year, but at the end of last year it was extended for another year. Investors are asking for its extension in the next year as well, but Prime Minister Dritan Abazović recently emphasized at one of the Government sessions that there is no extension. The plan was to distribute a total of 2.000 passports.
Until MIA and MUP complete their part of the work, investors cannot get to 140 million, and the state to 47,8 million, which are in ESCROW accounts
The EC advised Montenegro to abolish the investor citizenship scheme due to the risks it poses (such as money laundering, tax evasion, terrorist financing, corruption and organized crime infiltration).
MIA rejected 73 passport applications
Grgić explained that there are 47,8 million euros in the municipality's ESCROW account for the development of less developed municipalities and another 22,8 million that have been transferred to another special account for the development of less developed municipalities, and he also states that the money has not yet been directed to financing specific projects until the criteria for that are determined.
"The total sum deposited in ESCROW accounts for the purpose of investing in the Innovation Fund is 7,5 million euros, while 30,25 million was paid in fees. Since the beginning of the program, the total amount paid to investors is 62,40 million, while a total of 140 million has been deposited in ESCROW accounts for that purpose," Grgić said.
MIA data show that a total of 779 applications for a "golden passport" were submitted, of which 166 were approved, while a total of 73 were rejected. The rest are being processed.
Grgić did not specify what MIA's position is regarding the continuation of this project, that is, whether it should be extended from January 1 of the following year
"In the preparation of the project analysis in the middle of last year, after a detailed analysis, the Agency was of the opinion that the program should be extended for the period during which the program stagnated - this refers to the delay in issuing licenses, the impossibility of obtaining citizenship for children of applicants under 18 years of age, and interruption caused by covid. Due to the mentioned problems, as well as due to poor promotion, there was little interest in the program, which could lead to the suspension of investment projects in the north. Precisely for these economic reasons, we considered the Government's position to extend the program to be correct," Grgić said.
MERT said that it is indisputable that the economic citizenship project brings numerous benefits, but that Montenegro has limited its application until the end of this year.
"Bearing in mind that a significant amount of unused money can additionally contribute to the adequate development of less developed municipalities, in cooperation with other relevant institutions, in the coming period we will prepare a proposal for a comprehensive analysis that will show the most optimal way of distributing money from the ESCROW account, with the aim of encouraging the even regional development of Montenegro Gore", they said from this government department.
12 hotels are being built
Investors were not interested in investing in projects of the processing industry and agriculture, but only in tourism, where the executive authority approved the construction of 12 hotels - seven in Kolašin ("Breza", "Bjelasica 1450", "K16", "D" with the annex "E ", "Montis hotel & resort", "Magnum" and "B"), one each in Žabljak ("Durmitor Hotel and Villas"), Tivat ("Boka Place") and Budva ("Cruiser") and two in Bar ( "Amma Resort" and "Liko Soho")
"Investors at the semi-annual level, in accordance with the obligations defined by the program, submit reports of independent controllers on the factual situation, which are continuously monitored. At the moment, a significant number of projects from the list of development projects in the field of tourism are being realized with satisfactory dynamics, and some deviations from the planned dynamics have been observed, which will be the subject of further analysis and action", said the MERT.
The total investments of investors in these hotels should be, as stated in MERT, 350,7 million euros, with a capacity of 2,333 accommodation units.
"In the business plans of those projects, it is defined that within the scope of their implementation, the possibility of opening 1,561 new jobs will be created. We emphasize that eight of the 12 projects on the list are being implemented in the northern region, and the value of these investments is projected at 113,89 million. It is planned that by putting them into operation, with a total capacity of 1,036 accommodation units, prerequisites will be created for the opening of 771 new jobs. The remaining four projects are being implemented in the southern region in the value of 236,85 million euros with a total capacity of 1,297 accommodation capacities and planned 790 new jobs", they stated in MERT.
The Ministry is analyzing six more applications for development projects in the field of tourism, three of which are in the final stage.
The MUP approved 372 passports, and is in the process of granting another 650
The Ministry of Internal Affairs (MUP) told "Vijesta" that as of September 29, the Prime Minister had submitted 420 proposals for the acquisition of Montenegrin citizenship by admission (for 420 applicants and 956 members of their families, which makes a total of 1.376 people).
"As of September 29 of this year, the Ministry of Internal Affairs is conducting proceedings for 650 persons who are covered by 200 proposals of the Prime Minister of Montenegro (200 applicants and 450 members of their families)", they stated in this department.
When asked by "Vijesti" when a decision will be made on the submitted requests from the Ministry of Interior, the answer was that the provision of Article 29 of the Law on Montenegrin Citizenship prescribes a deadline of one year for making a decision on the acquisition of Montenegrin citizenship by admission from the date of submission of the request to this ministry.
The Ministry of Internal Affairs announced that from the beginning of the application of the decision on the acquisition of economic citizenship on January 1, 2019, and ending on September 29, the Ministry of the Interior issued 372 Montenegrin passports in accordance with Article 12v of the Law on Montenegrin Citizenship and the Decision on Economic Citizenship .
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