The regional water supply will take a loan from Prva banka and Erste banka, a total of 10 million euros, with a government guarantee, and with that money they will pay off their debts, which have accumulated to the amount of about 9,29 million euros.
That public company, which last year had an income of 7,9 million euros, ran into problems in August of last year when the Austrian company Štrabag, after winning the dispute in international arbitration, blocked its giro account on August 12 million euros.
Two banks in the consortium offered five million euros each.
Due to blocked accounts, the Regional Waterworks had problems in regular business, so its due obligations by April 24 of this year reached the sum of 2,51 million euros.
At the last session before the Easter and May holidays, the government considered the information about the plan for the Regional Water Supply to borrow money from two domestic banks, but the public was not informed about this in a press release after the session. The document was not even in the proposed agenda for that session, but it is available on the website of the executive authority.
The blocking of accounts mostly affected the employees of that company who have not received their salary since July 26 last year. The debt for employees' wages, including taxes and contributions, reached the figure of 870.000 euros.
"According to the information received from the Regional Waterworks, on April 24, 4, for the 2019 days of the blockade, Štrabag collected EUR 253 million from the account, while the remaining debt amounts to EUR 5,69 million (not counting the associated interest that is estimated to over 6,28 euros)", it is written in the Government's information.
Among other due obligations is a debt to the Ministry of Finance of 775 thousand euros, which, instead of that public company, paid the installment for a loan taken from the European Bank for Reconstruction and Development (EBRD). The loan of 6,4 million euros was taken by the Regional Waterworks earlier with a Government guarantee, and if the February installment was not paid, there was a danger that the guarantee would be activated, which would cause damage to the state budget, because the entire amount of the debt would be collected. The loan was taken for the construction of the regional water supply system, and 2,3 million was also taken from Erste Bank for the same need.
Furthermore, the Regional Water Supply accumulated a debt of 110.000 for fuel and electricity, 130.000 for the maintenance of the regional water system, 100.000 for consulting services, a concession fee for the use of the Bolje sestra spring 60.000, and the April installment of the loan to Erste Bank 170.000 euros...
The Government's information states that the leadership and management of the Regional Waterworks considered several options to get out of the difficult situation and estimated that they needed 10 million euros for this.
Back in January, after the submitted offers from the banks, Vodovod chose the offer of Prva Bank, from which it planned to take all 10 million euros, but the Government postponed the procedure for issuing the state guarantee, which is why the validity period of Prva Bank's offer expired and the process of submitting the request was repeated again. to all banks for submitting a loan offer.
"Crnogorska komercijalna banka and the consortium of Prva banka Crne Gore and Erste banka responded to the request of the Regional Waterworks, dated April 11, 4, addressed to commercial banks. In the process of evaluation and evaluation of the offered lending conditions, the management of the Regional Water Supply chose the more favorable offer of the consortium of banks, which included a lower interest rate of 2019 percent with the three-month EURIBOR, as well as a lower one-time loan processing commission of 3,35 percent. "Prva banka and Erste banka each offered five million euros for a loan of 0,15 million with a repayment period of 10 years," the government information reads.
Guarantee defined by this year's budget
The law on the budget for 2019 and the decision on the borrowing of Montenegro for 2019 defined the issuance of a guarantee for a credit arrangement with a commercial bank for the needs of JP "Regionalni vodovod" in the amount of 11 million euros. In 2008, Štrabag and the Regional Waterworks signed a contract for the construction of a pipeline worth 17 million euros.
In the following year, the regional water supply unilaterally terminates the contract, and Štrabag initiates arbitration proceedings, and then a trial before the Montenegrin courts. Last year, Strabag received a final verdict in his favor.
Revenues in 2019 higher than planned
In the Government's information, it is stated that the Regional Water Supply has submitted data that in 2018, a record financial income was achieved, in the 44 years of its existence, in the amount of 7,9 million.
"In addition, the company informed the Ministry of Finance that the financial indicators for the first four months of 2019 show higher revenues than expected for this period of the year (about 20% more water delivery), and the overall expected results are more favorable compared to the work plan for 2019 . a year. During 2020 and 2021, as well as in the following period, an increase in revenue from the sale of water is expected due to the connection of the municipality of Herceg Novi to the regional water supply system, as well as due to the expected activation of existing and construction of new distribution branches in other municipalities of the Montenegrin coast", it is written in document.
Vodovod expects an increase in income from special fees on investments for the construction of facilities on the Montenegrin coast due to the expected legalization.
Regional water supply and Prva banka "cooperated" in 2010 as well
The regional water supply and Prva banka were in the public spotlight in 2010 when it was revealed that this bank had returned 11 of the total of 44 million euros of loans to the government.
The money for the first installment was returned by paying one million euros from the State Treasury to the account of the Regional Waterworks in Prva banka. The bank immediately paid that million to the Treasury to repay the loan, i.e. the first installment.
Within less than half an hour, the Treasury paid 11 million euros each to the Regional Waterworks in Prva banka, and the bank made 11 payments to the Treasury, each million euros, and "settled" the first installment of the loan.
Based on a special law, the government then helped Prva Bank, which fell into serious financial problems.
The first bank is controlled by Aco Đukanović, the brother-in-law of President Milo Đukanović. When the loan was approved, the Đukanović brothers and their sister Ana Đukanović had shares in Prva banka.
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