Page 112 - SE Outlook Regions 2024

Meanwhile, Montenegro and Bosnia agreed to launch the construction of a bridge over the Tara river connecting the two countries in 2024, which should connect the two countries at the Scepan Polje location.
The two countries have sent a joint request for grants to the World Bank and the European Bank for Reconstruction and Development in order to finance the project. The construction of the bridge will be financed jointly by the two countries.
5.8.4 Major Sectors & Companies
Tourism is an important contributor to Montenegro’s GDP.
In December, Montenegro’s government decided to secure funds for 40 tourist companies to buy equipment. The programme aims to support micro, small and medium-sized companies with €1.5mn.
Meanwhile, the government is trying hard to save the Dr. Simo Milosevic health institute, which is a major company involved in spa tourism. In October, the authorities decided to take over the debt of the Dr. Simo Milosevic clinic towards Jugobanka (in bankruptcy) for 2023, which was worth €1.366mn.
The debts of the Dr Simo Milosevic institute and spa centre in Montenegro's coastal town of Igalo pertain to loans taken out in 1981 and 1987 from Jugobanka AD and the Deposit Insurance Agency of Serbia, with legal proceedings having been in progress since 1994.
From 1987 onwards, the institute accrued a loan obligation to Jugobanka, initially amounting to approximately €3.7mn. Over time, this debt expanded to around €7.5mn, including accrued interest.
Due to the bank's subsequent bankruptcy, the claim was transferred to the state's Deposit Insurance Agency. In a significant legal victory, the agency successfully concluded a dispute regarding this claim in 2021, with the Montenegrin courts formally acknowledging its legitimacy.
Another major company – the power distributor EPCG – acquired in 2023 the Zeljezara Niksic steel mill for €20mn from its previous owner, Turkish Toscelik. Shortly after that, it started procedures of reviving the steel mill, engaging its former workers. Currently, they are building solar panels and solar installations to produce electricity for Zeljezara Niksic’s own consumption.
In December, EPCG launched a tender to pick a strategic partner for Zeljezara Niksic, looking for a company with extensive experience in steel production. The winner will be able to hire the steel mill and the necessary number of workers for at least five years in exchange for monthly rent paid to EPCG.
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