1. Bilateral screening: Chapter 20 PRESENTATION OF MONTENEGRO M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 20– Enterprise and Industrial policy Brussels, 28 November 2012

2. Chapter 20: Enterprise and Industrial policy Working Group for Chapter 20: -Enterprise and Industrial Policy – Bilateral Screening: Chapter 20 Presentation of Montenegro Brussels, 28 November 2012 Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

3. Chapter 20: Enterprise and Industrial policy AUTOMOTIVE INDUSTRY AEROSPACE INDUSTRY MARITIME INDUSTRY Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Nusret Canović Advisor Ministry of Transport and Maritime Affairs nusret.canovic@msp.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

4. Chapter 20: Enterprise and Industrial policy Automotive Industry o There are no production capacities in Montenegro when it comes to production of cars and auto parts o Vehicles that are in use in Montenegro (imported as new and used )- Decisions about conditions that must be fulfilled for the used cars imported into Montenegro (2007) (EURO 3) o Traffic development strategy of Montenegro (2008)-promotion of energy efficiency and further improvements of environmental standards in transportation o Vehicles fleet renewal program for Montenegrin carriers (2011)- subsidies for the procurement of new, energy efficient and clean vehicles, system “old for new”. Program contains a comparative review of pollution levels in regard to EURO standard of vehicles, benefits of improved vehicles fleet in terms of access to the international transport market, and the audited financial statements and the possible ways and suggestions for the implementation of this program Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

5. Chapter 20: Enterprise and Industrial policy CRNA GORA Pregovaračka grupa za vođenje pregovora o pristupanju Crne Gore Evropskoj Uniji

6. Chapter 20: Enterprise and Industrial policy o Institutional cooperation and cooperation with NGOs - TNA Technology Needs Assessment (2012) - the possibility of introducing "alternative" vehicles on the market (hybrid vehicles, plug-in hybrids, electric vehicles, hydrogen-powered vehicles, improving the efficiency of diesel engines) o Fuel efficiency in Montenegro (2010-2012)-reducing fuel consumption, increase fuel quality, the elimination of leaded fuels, sustainable mobility o The draft Energy Strategy to 2030. year - in line with the Energy Efficiency Plan (2011) and Transport White Paper (2011) o program for implementation of energy efficiency and environmental criteria for investment in transport infrastructure o promote the use of energy-efficient means of transport o more efficient use of transport infrastructure and systems through the use of improved transportation management and information systems, advanced logistics and market measures o specific measures to improve energy efficiency in the public transport, freight companies, etc., including driver training, vehicle maintenance efficiently, EE criteria in the procurement of vehicles and vehicle modernization program o public campaign to raise general awareness regarding the purchase of energy-efficient vehicles, alternative fuels, vehicle maintenance, efficient, energy-conscious driving Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

7. Chapter 20: Enterprise and Industrial policy o Waste Management Act (2011) o Regulation on the procedure for the establishment of the system acquisitions, collection and treatment of waste vehicles and the operation of the system (2012) o Recycling yards and centres for recycling waste vehicles o 26 recycling yards in the territory of 21 municipalities o Center for waste vehicles in Podgorica o Capacity of Center - processing 20 cars per day o State waste management plan o Economic operators shall be required to the 1 st January 2020 ensure that the annual weight re-used or remanufactured component parts of waste vehicles, not less than 85% of the mass of waste assumed vehicle weight and recycled waste constituents vehicles, at the level of at least 80% by weight of all checked waste vehicles Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

8. Chapter 20: Enterprise and Industrial policy Aerospace Industry “AIRPORTS OF MONTENEGRO” “MONTENEGRO AIRLINES” o Public company established 1999 (2003), the Government's decision o Airport Podgorica o Airport Tivat o Development master plan for airports (2011) o defining a strategy of infrastructure development Podgorica and Tivat airports for the period since 2011 to 2030 with the aim of improving the capacity and quality of service compared to the forecasted traffic o establishing long-term and systematic management of development of airport capacity, which will provide a safe, efficient, economical and on environmental standards based the flow of air traffic in Montenegro o based on the standards adopted by the International Civil Aviation Organization (ICAO) Standards and Recommended Practices (SARPs) and the rules of the Convention on International Civil Aviation (Chicago Convention, 1944) o providing guidelines for the development of two phases, the first by 2017 year and the second in 2030 year. For the first phase of project of the Master Plan is necessary to provide 62,500,000.00 euros and for the second phase of project aditional 101,260,000.00 euros Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

9. Ch Chapter 20: Enterprise and Industrial policy “AIRPORTS OF MONTENEGRO” o Possible funding models o financing from the EBRD o private-public partnerships Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

10. Chapter 20: Enterprise and Industrial policy ““MONTENEGRO AIRLINES” o The national airline company (1994), joint-stock company o The Government of Montenegro is the owner of 2,897,408 (99.8895%) shares, and other shareholders have a total of 3205 shares (0.1105%) o Direct lines to 11 destinations in Europe, charter flights 8 aircraft in the fleet o High importance for the montenegrin tourism industry o Business of the company is significantly more difficult three years ago, due to the global economic crisis, which really affected the airline industry Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

11. Chapter 20: Enterprise and Industrial policy ““MONTENEGRO AIRLINES” o Restructuring Program "Montenegro Airlines" (2012) o sale and lease of aircraft o increase in the degree of capacity utilization o staff reductions, reduced material costs o review of all lines and closing unprofitable lines and branch o favorable conclusion of contracts with suppliers and others. o prepared a privatization model "Montenegro Airlines" and required tender documents o decision on the privatization? o it could be announced as soon as possible in accordance with the provisions of the Multilateral Agreement on the European Common Aviation Area and the Law on Air Traffic Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

12. Chapter 20: Enterprise and Industrial policy Martime Industry “ADRIATIC SHIPYARD BIJELA” o Established in 1927, joint-stock company o The majority ownership of state funds 61.58%, 38.42% minority shareholders o Ship repair activity, orientation towards foreign markets o Pronounced impact of the global crisis on the results of operations Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

13. Chapter 20: Enterprise and Industrial policy “ADRIATIC SHIPYARD BIJELA” o Strategic Business Plan 2010-2015 (2010) o Further technical-technological modernization (new equipment and improved procedures) that increase efficiency and significantly reduce the adverse effects of activities on the environment o Further restructuring of the labor force (optimization of the number, flexibility in hiring and acquiring new knowledge and skills) o develop constructive partnerships with leadership companies in the business of oil platforms overhaul and repair of yachts-partnerships will branding shipyard and contribute to greater utilization of improving profitability and gaining new experiences to increase competitiveness o Go to business predominantly linked to the white fleet for 5-7 years Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

14. Thank you for your attention! QUESTIONS