Montenegro and the United States (US) are preparing an intergovernmental agreement on cooperation in the implementation of strategic infrastructure and energy projects, among which the construction of the Adriatic-Ionian Combined Highway Network is highlighted as a priority. This project should connect Albania and Croatia through the territory of Montenegro and Bosnia and Herzegovina, thus bridging the coastal gap between Corridors 5 and 8 of the Trans-European Transport Network, while the construction of other new roads, fiber optic cables and energy projects such as a natural gas pipeline are mentioned as additional initiatives.
The American private company "Bechtel", alone or in a consortium with the Turkish company "Enka", is building or has built several highways in Albania, Kosovo, Macedonia and Serbia. Most of these jobs were not awarded through tenders, but on the basis of intergovernmental contracts between the USA and local authorities. "Bechtel" was also interested in building large projects in Montenegro during the DPS era, and they had their first contact with the new authorities in 2021 with the current Prime Minister and then Minister of Finance Milojko Spajić.
The Adriatic-Ionian Highway, which is supposed to connect Western and Central Europe with Greece, has already reached Čapljina in Bosnia and Herzegovina, and the design of the extension to the Montenegrin border at Nudo is underway. In Montenegro, the Ministry of Spatial Planning has issued urban and technical conditions to the Monteput company for the construction of the Adriatic-Ionian Highway, and documentation for several sections is being prepared.
Last week, the government established a proposed basis for conducting negotiations with the US to conclude this agreement with its draft.
According to the draft agreement, priority sectors and projects include security and technology, through the introduction of cargo scanning solutions at all border crossings of Montenegro with Albania, Kosovo, Serbia, Bosnia and Herzegovina and Croatia, as well as at the Port of Bar. The project is planned to be implemented through a public-private partnership with the Revenue and Customs Administration, with the establishment of an integrated scanning command center in Podgorica. The document also foresees other initiatives, such as the modernization of existing infrastructure along the Adriatic-Ionian corridor, including the Port of Bar, as well as the expansion of technological capacities through support for industrial data centers and fiber optic cables.
The agreement also stipulates that Montenegro will exempt transactions related to these projects from value added tax and customs duties, with the note that the manner of application of these exemptions will be regulated by the applicable Montenegrin legislation.
It further states that the United States, in order to facilitate commercial cooperation between the two countries, will seek, where appropriate, to promote Montenegrin projects to U.S. entities. Mechanisms through which the United States may learn of interested U.S. entities may include market surveys or instruments supported by the U.S. Department of Commerce, the Export-Import Bank (EXIM Bank), and the U.S. Trade and Development Agency (USTDA). At the same time, it is specified that the United States will not act as a broker or agent for any such project, nor will it transmit to Montenegro offers, proposals, or related documentation from U.S. companies, but may, through the Department of Commerce, share information about companies interested in projects in sectors covered by the agreement.
"The Parties agree that cooperation under this Agreement may include consultations and information exchange between the United States and Montenegro, as well as other forms of cooperation in the areas of infrastructure, energy, security, and technology, as may be proposed and approved by both Parties," the draft document states.
The document also states that the terms of cooperation, as well as possible financial support for the implementation of projects of strategic importance, may be further regulated by special agreements, if the need arises. It also specifies that Montenegro retains the option, where appropriate, to choose other forms of financing, in accordance with its domestic and international obligations.
The draft also states that the two sides may agree on additional priority sectors and projects, in addition to those already related to infrastructure and energy initiatives, as well as security and technology. It specifies that such new projects, if agreed, would also be covered by this agreement.
"Nothing in this Agreement shall be construed to supersede, modify, or in any way interfere with any laws, regulations, policies, procedures, or agreements governing the provision of financing or other public sector financing by the United States, or any grants or contracts for the provision of foreign assistance, whether issued, enacted, or concluded before or after the entry into force of this Agreement," the document states.
The agreement will enter into force after Montenegro confirms, through diplomatic channels, through a written notification sent to the US, that all internal procedures necessary for its activation have been completed. The document also provides for the possibility of termination at any time, if one of the parties provides the other with a written notification through diplomatic channels, whereby the termination would take effect 90 days from the date of sending such a note.
“Notwithstanding the termination of this Agreement, all commercially confidential or other non-public information received or created under this Agreement shall continue to be protected in accordance with the provisions of Article 6 of this Agreement,” the Draft states.
Protection of trade secrets in the agreement
The draft intergovernmental agreement stipulates that both parties will protect confidential information exchanged or generated during the implementation of strategic projects.
The document stipulates that data marked as "trade secret" will be protected in accordance with applicable laws and practices, and that all persons granted access to that information will be obligated to keep it confidential, especially if its disclosure could bring economic benefit or competitive advantage.
"In the event that information that is timely designated as 'trade secret' is received or created under this Agreement, each party will protect such information...", the draft agreement states.
This Agreement shall enter into force on the date of written notification by diplomatic note from Montenegro to the United States that all internal procedures necessary for its entry into force have been completed.
Bonus video:
