If the draft law on strategic investments proposed by the Ministry of Finance (MF) is adopted, state and local authorities will be required to act swiftly in procedures related to the realization of strategic investments declared by the government.
This legislative proposal stipulates that interested investors must submit projects to the Investment Agency, including an investment plan for at least three years, financing details, potential risks, and proof of financial capacity.
Opinions from Institutions
When reviewing the application, the Agency will seek opinions from institutions depending on the area the investment pertains to, such as property and cadastre administrations and municipalities where the investment is planned, which will have eight days to submit their opinions.
According to the draft law, the Agency may also request opinions from the Protector of Property and Legal Interests or other bodies whose input may be relevant. If the Agency determines that the investment meets all conditions, it will be required to publish the draft decision on its website for public consultation for at least seven days.
A protocol will be signed with the investor regarding the preparation and implementation of the strategic investment, with an obligation to provide a bank guarantee of at least 5% of the estimated value of the investment to ensure the project’s successful execution. After the Ministry of Finance conducts a fiscal impact assessment, it will propose a decision to declare the investment strategic, which will be forwarded to the government.
State and local authorities, administrative bodies, public legal entities with administrative authority, and other bodies competent to issue administrative acts and opinions are obliged to do so within five days, and take administrative actions within three days from the receipt of a properly submitted request from the private investor, public investor, or the Investment Agency, as stated by the MF.
Procedures
If tenders are required, they will be conducted through an expedited procedure. The Environmental Protection Agency and the Directorate for the Protection of Cultural Heritage will have ten days to provide their opinions if needed. Employment and residence procedures for foreigners will also be expedited, as will decisions regarding state property, public infrastructure, and expropriation. The Protector will have 15 days to provide an opinion on the conclusion of property transfer agreements.
According to the Ministry of Finance, this regulation introduces a new approach to strategic investors in Montenegro and sends a message about the government’s efforts to make Montenegro an attractive option for strategic projects. A strategic investment can be private, regardless of whether the investors are domestic or foreign, and can also be carried out by a state authority or in the form of a public-private partnership.
For an investment to be declared strategic, it must contribute to regional development, environmental protection, job creation, the development of production conditions and new technologies, and improve the living standards of citizens.
The conditions are that the estimated project value is equal to or greater than five million euros excluding VAT, the possibility of financing the project from EU funds or other international sources amounting to three million euros or more excluding VAT, the investment is located in a municipality where tax reliefs of at least one million euros excluding VAT apply, and projects in agriculture, fisheries, and information technology must exceed one million euros excluding VAT, as stated by the MF.
They assess that there are no negative impacts from this regulation, but that it will have a positive effect by creating a unified legal framework, simplifying procedures before institutions, reducing administrative processing time, and contributing to better economic development.
The Ministry of Finance and the Investment Agency will carry out the monitoring and evaluation of the regulation. The draft law is open for public discussion until December 29, during which MF and the Competitiveness Council Secretariat will organize a roundtable next Wednesday.
