The Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Government of Montenegro and the Government of the United Arab Emirates (UAE) raises issues of compliance with the Constitution, the Law on Protection of Competition and the Law on State Property, which the competent institutions should state and require responses from the competent institutions, but also raises the question of whether it could affect the process of Montenegro's accession to the EU.
This was told to "Vijesti" by the President of the country. Jakov Milatovic who emphasized that he looks forward to every investment and that he considers it important that Montenegro improves economic cooperation with other countries, including the United Arab Emirates (UAE).
The governments of Montenegro and the United Arab Emirates (UAE) signed agreements on economic cooperation and joint investment at a ceremony at the presidential palace in Abu Dhabi last week.
The agreements were signed by the Montenegrin Prime Minister Milojko Spajic and Deputy Prime Minister of the UAE and Minister of Foreign Affairs Sheikh Abdullah Bin Zayed Al Nahyan, with the presence of the President Sheikh Mohammed bin Zayed Al Nahyan.
"Montenegro has enormous development potential, natural, social and economic, and it is up to us to use it in the best interest of its citizens, current and future generations. In this regard, I strongly support all activities that contribute to sustainable economic development. Since the beginning of my mandate, I have focused special attention on the economic promotion of Montenegro, striving to present our country as an attractive, open and safe destination. I look forward to every investment that creates new jobs, strengthens the economy and contributes to our economic development. In this context, I consider it important that Montenegro improves economic cooperation with other countries, including the United Arab Emirates, with which we have excellent bilateral relations, based on mutual appreciation and respect," Milatović emphasized.
When it comes to the signed Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Government of Montenegro and the Government of the UAE, it is important to point out, according to Milatović, several questions that require clear answers from the competent institutions.
"Article 3a of the Agreement with the UAE provides for a derogation from the application of domestic legislation relating to public procurement, tenders and competition procedures. In contrast, the provision of Article 140, paragraph 3 of the Constitution of Montenegro stipulates that it is prohibited to distort and restrict free competition and to encourage an unequal, monopolistic or dominant position in the market, so the question of the compliance of the signed Agreement with the Constitution of Montenegro is justifiably raised. It should be borne in mind that the area of cooperation in this case is not defense or national security, but the tourism and real estate development sectors, which are based on free competition and competition, which calls into question the model of direct negotiations in the selection of investors provided for in the Agreement. At the same time, the question arises whether the aforementioned norms of this Agreement are in contradiction with the Law on Protection of Competition", Milatović emphasized.
According to him, it is necessary to emphasize that state property is the foundation of state sovereignty, and that it belongs to all citizens, current and future generations, and its disposal must be under strict control mechanisms, as stipulated in the Law on State Property.
"Article 40 of the Law on State Property provides that leasing state property by direct negotiation, which implies a signed Agreement, can be carried out in the event that the leasing fails even after three consecutive announcements of a public call for public tender or collection of bids," Milatović pointed out.
Potential concerns, he believes, are caused by the possible incompatibility of key parts of this Agreement with the Stabilization and Association Agreement (SAA) between Montenegro and the European Union (EU), which is the basic contractual relationship between Montenegro and the EU, as well as between Montenegro and all EU member states.
"Namely, according to the SAA, any state aid that distorts market competition by giving an advantage to a certain participant is prohibited. At the same time, Montenegro is obliged to provide non-discriminatory conditions to domestic and EU companies in procedures related to the award of state contracts. This raises the question of whether such an Agreement could affect the process of Montenegro's accession to the EU," Milatović pointed out.
He emphasized that in a period when important decisions are being made regarding the direction Montenegro will take, it is especially important to remind people of the responsibility that decision-makers have.
"It is necessary that every decision made be based on legality, transparency and a long-term vision of the development of Montenegro as a future EU member. Given all of the above, I call on the competent authorities to clarify to the public all existing doubts related to the signed Agreement," said Milatović.
Montenegro has committed to unknown costs in advance
Milatović said that the Agreement with the UAE obligates the state of Montenegro to incur unknown costs in advance that may exceed its financial capabilities and are not planned in the medium-term fiscal framework, as has already been pointed out in the opinion of the Ministry of Finance.
"Namely, the Agreement states that the UAE will designate the project contractor, for whose benefit Montenegro is expected to provide land and make the necessary investments in public infrastructure. Therefore, it is important to have a clear assessment of the obligations undertaken regarding the provision of land, but also investments in public infrastructure.
"In a period when important decisions are being made regarding the direction Montenegro will take, it is particularly important to remind ourselves of the responsibility that decision-makers have. It is necessary that every decision made be based on legality, transparency and a long-term vision for the development of Montenegro as a future EU member," Milatović emphasized.
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