The existing system does not provide for an obligation to direct part of the revenue from the concession fee in a clear and targeted manner towards the development of local infrastructure and projects of strategic importance for the municipality in whose territory the airport is located, the Government of Montenegro announced today.
The statement states that the Government, at its 112th session held today, chaired by Deputy Prime Minister for Security, Defense, Fight against Crime and Internal Policy Aleksa Bečić, adopted the Draft Law on Amendments to the Law on Financing Local Self-Government.
"The discussion highlighted that the current legal solution does not provide for a sufficiently precise and development-oriented distribution of revenues from the concession fee for the use of airports. Although airports, as goods of general interest, are located on the territory of specific local self-government units, the existing system does not provide for the obligation to direct part of the revenues from the concession fee in a clear and targeted manner towards the development of local infrastructure and projects of strategic importance for the municipality in whose territory the airport is located. This misses the opportunity to more directly link the revenue generated by using local resources to local development," the statement said.
The Government said that the proposed amendments to the Law on Local Self-Government Financing achieve the following key objectives:
• ensuring a more functional distribution of revenues from the concession fee for the use of airports, taking into account the fact that airports, as goods of general interest, are located on the territory of specific local self-government units;
• establishing a clear dedicated component of the fixed part of the concession fee for the use of the airport, which directs part of the generated revenues to financing infrastructure projects of strategic importance for the municipality in which the airport is located.
"The proposed changes contribute to the achievement of the Government's strategic goals in terms of more efficient use of public resources and strengthening the developmental role of local self-government," the Government said.
The announcement states that the Proposal for a Law Amending the Law on Concessions has been established.
"The proposed amendment to the existing legal solution, namely by introducing the possibility for the concession fee to consist of a fixed and variable part, improves the normative framework for regulating concession relations and provides greater flexibility in contracting. Bearing in mind that concession contracts of different duration, investment scope and economic structure are concluded, such a solution enables the adaptation of the concession fee structure to the specifics of each individual project. The fixed part of the concession fee provides stable and predefined income during the concession period, thereby strengthening the predictability of public revenues. The variable part enables the amount of the concession fee to be tied to the achieved economic effects of the concession activity or other relevant business parameters, in accordance with the contract. In this way, a balanced relationship is achieved between revenue security and the state's participation in the results of the concession project. The proposed solution does not change the basis for calculating the concession fee, but rather specifies its structure. This ensures the protection of the public interest while preserving an encouraging and predictable framework for the implementation of concessions," the Government said.
The Government, as added in the statement, adopted the Information on the Basis for Negotiations on the Conclusion of a Loan Agreement with the International Bank for Reconstruction and Development (IBRD) for the Financing of the Project "Forests of Montenegro for Shared Prosperity", in the amount of up to 18 million euros.
"The project was prepared through cooperation between the Ministry of Agriculture, Forestry and Water Management and the World Bank in the period 2024-2025. The project was created to respond to dual challenges: increasing the sustainability of the forestry sector and increasing the economic profitability of the forestry sector. The project applies an integrated approach focused on sustainable resource management, more economical use of higher-value wood, improving the quality of employment in rural areas, and improved outcomes of carbon sequestration and nature conservation. As stated in the Information, the project is planned to be financed through a loan arrangement with the IBRD, in the total amount of up to 18 million euros, over the next six years (2026-2032), with regular monitoring of progress in implementation and reporting to the Government of Montenegro and the Board of Directors of the World Bank," the Government said.
They state that the legal basis for concluding the credit arrangement in question is the Law on the Budget of Montenegro for 2026 and the Decision on Borrowing of Montenegro for 2026, which stipulate that the State, for the purposes of financing projects, among other things, may borrow for the purposes of financing this Project in the specified amount, in accordance with the general lending conditions prescribed by the IBRD. The credit arrangement provides for a variable interest rate consisting of the six-month EURIBOR, increased by a variable interest margin that is determined or fixed quarterly.
"For a loan arrangement with a repayment period of 15 years and a grace period of 2 years, the variable interest margin is currently 0.55%. In addition, a one-time loan processing fee (so-called front-end fee) is foreseen in the amount of 0,25% of the total loan value, as well as a commitment fee in the amount of 0,25% of the amount of unused funds at the time of calculation. The calculation of the commitment fee begins 4 years after the approval of the Loan Agreement by the bank. All financing conditions, including the final text of the Loan Agreement, will be subject to further definition and coordination during official negotiations with the IBRD," the executive authorities said.
The Information on the subscription and payment of ordinary (regular) shares of the 3rd issue of the issuer Institute for Physical Medicine, Rehabilitation and Rheumatology "Dr Simo Milošević" AD Igalo was adopted.
"The Information states, among other things, that on January 29 of the current year, the Government of Montenegro exercised its pre-emptive right in the first round of recapitalization and paid EUR 4.605.189,48 to the designated account for the recapitalization of the Institute, thus subscribing to 29.723 shares from the new issue. Given that the state funds did not exercise their pre-emptive right in the first round, because they did not have funds allocated in the budget for that purpose, the Government of Montenegro should purchase another 63.457 shares in the second round for the amount of EUR 9.831.830,87, up to the amount projected to cover due liabilities under the adopted Restructuring Plan of EUR 21.436.957,15. Furthermore, the Law on the Budget of Montenegro for 2026 has planned funds for the settlement of liabilities based on the Restructuring Plan of the Institute, i.e. for its recapitalization. The implementation of the aforementioned activities represents a key prerequisite for the settlement of due liabilities "The Institute's obligations, the stabilization of its financial operations, and the creation of conditions for the continuation of the implementation of the Restructuring Plan, including the next phase of the investment cycle. On this occasion, the Ministry of Finance is tasked with redirecting the necessary funds for the subscription and purchase of shares in the second round in order to successfully complete the Institute's recapitalization process," the Government said.
The Government adopted the Information on the establishment of the Commission for the Control of the Use of Tax Exemptions in Agricultural Activities.
"The establishment of this Commission represents a necessary institutional prerequisite for the implementation of legal provisions in the field of tax incentives in agriculture. The adoption of the Decision enables the continuation of action on received requests, ensures transparent and lawful application of regulations, as well as more efficient control of investments in the agricultural sector. The Ministry of Agriculture, Forestry and Water Management has received a large number of requests from legal entities to exercise the right to tax exemption in accordance with Articles 31d, 31e and 31f of the Law on Corporate Income Tax. The total value of the requests received amounts to 2.611.967,96 euros, which indicates a significant interest of economic entities in using this legal measure to encourage investment in agricultural activity. The Ministry, in accordance with applicable regulations, does not have the authority to independently decide on the merits of the received requests, but the decision-making can be made exclusively through the Commission established by the Government of Montenegro," the statement reads.
The Government said that the Commission for Controlling the Use of Tax Exemptions will play a decisive role in ensuring the legal and transparent application of tax exemptions in agriculture.
"It is necessary that the Commission consists of representatives of the Ministry of Agriculture, Forestry and Water Management, the Ministry of Finance, the Tax Administration and the Agency for the Protection of Competition. The aforementioned multidisciplinary composition enables a comprehensive review of the requests, while simultaneously respecting fiscal, development and state aid rules. The Commission checks the fulfillment of the legal conditions for tax exemption, inspects and assesses the factual situation of investments in the field, analyzes their contribution to the development of agricultural activities, and assesses the correctness of statements on state aid received, in order to prevent distortion of market competition. In this regard, the Government has adopted a Decision on the establishment of the Commission for the Control of the Use of Tax Exemption in Agricultural Activities," the Government said.
The statement also states that the Information regarding the conclusion of the Agreement between the Financial Administration of Slovenia and the Customs Administration of Montenegro on the donation of software for the customs information system has been adopted, and that the text of the Agreement has been accepted.
"Given that within the framework of Negotiating Chapter 29, there is a significant number of IT systems that should be implemented, as well as the need to achieve a sufficient level of compliance with this benchmark by the end of 2026, the Customs Administration has previously established communication with the Financial Administration of the Republic of Slovenia (FURS), which continuously provides support to the Customs Administration in the negotiation process through expert support and donation of IT systems. The Customs Administration has expressed the need for the donation of the latest developed FURS systems in accordance with the Customs Law of the Union and the latest technical specifications of DG TAXUD, in order to implement the system in the Customs Information System after the conclusion of this Agreement. Expert support from the Financial Administration of the Republic of Slovenia has also been requested during the implementation period. The Financial Administration of the Republic of Slovenia has expressed its willingness to continue donating customs systems to the Customs Administration as well as expert support during the period of implementation/upgrading the system," the Government said.
They stated that the aim of this Agreement is to continue the activities of the Customs Administration for the implementation/upgrading of the CIS with the aim of temporarily closing Chapter 29 of the Customs Union and thus ensuring:
- enabling the implementation of all legal standards regulating the international movement of goods;
- interoperability and connectivity with EU customs systems,
- facilitating legal trade,
- simplification of customs procedures;
- more efficient collection of customs and tax duties;
- collection and analysis of data on international trade; - prevention of dangerous and illegal activities.
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