5. 1994 - 1997 UN Sanctions; 1999 - NATO bombing; 2000 - 20% of total population were refugees; 2000 - introduced DEM; 2002 - introduced EUR; Montenegro – the only ex-YU republic on which territory there was no war and with the stable government for 16 years; 2006 – Montenegro recover its independency;

6. 1.The highest FDI per capita in Region (2007 & 2008); 2.According to Fraser Institute - the highest level of economic freedoms in the region; 3.Largest share of privatized capital in the region; 4.The most dynamic capital market in the region before crisis; 5.Budget surplus (2007 & 2008); 6.The only state in the region that use EURO; 7.The lowest unemployment rate in the region; 8.The lowest inflation rate in the region;

7. Telecommunication – 100% private (3 GSM); Banking – 100% private (11 banks); Capital market – 100% private (13 broker houses); Agriculture – 100% private; Services – 100% private; Oil import and distribution – 100% private; Tourism – mostly private; Industry – mostly private;

8. 1.Safe and stable; 2.Predictable macroeconomic policies; 3.Ability to remit profit, dividends and interest; 4.National treatment of foreigners; 5.Euro – no hidden inflation; 6.Flat Tax System (CT 9% - PIT 9% - VAT 19% ); 7.Easy Business Start Up (1 € + 4 days); 8.International Accounting Standards (IAS); 9.Location and climate; 10.Increasing economic freedom;

16. FDI’s are changing way of thinking; Speeding up the reform processes; Changing the structure of the economy; Contributing to GDP, GDP growth, employment, budget revenues, export/import… Developing regional cooperation – business language is unique language;

17. Investors are coming from 88 countries; There is no domination of any country relative to the number of registered investors ; Based on the value invested, investors from following countries are leaders: Norway, Austria, Russia, Slovenia, Hungary, Great Britain.

19. Unique investment opportunities; The reform of the financial services sector; The positive experience of existing investors; The ability to serve customers in Western and Central Europe; The quality of service MIPA provides

20. Global Economic and Financial crisis; Tenders that were cancelled, unrealized privatization plans and lack of spatial plans that encourage Greenfield investments.

23. Infrastructure Services Including banking Energy High Tech Tourism Investment Opportunities Investment Opportunities

24. MNE is using only 20% of its hydro potential. 25% of the primary energy in period 2000-04 was produced from renewable resources. GoM adopted Strategy for Energy Development (2010-25) and Action Plan. One of the goals is new 15-20MW from Small HPP on over 40 locations until 2015.

25. Solar energy – 2,500 hrs/year. Thermo energy – Coal pit Maoce, Pljevlja (2x250 MW) and Coal mine in Berane.

26. Legal framework exist (Law on Exploartions and Productions of Hydrocarbons and Rules on Safety at Work in Marine Seismic survaying); 311 km 2 of 3D seismic surveys are completed; Two deep exploration wells have been drilled: JJ-2 (3,700 m) oil was registered; JJU-1 contained oil traces AVO seisimic analyses estimate that the gas exploration risk is low.

28. AD “Montecargo” Podgorica “Budvanska Rivijera” AD Budva HTP “Ulcinjska rivijera” AD Ulcinj Electrodes plant “Piva” AD Plužine “Montenegro Airlines” AD Podgorica ICM Nikšić

29. During this year, the implementation of already published tenders has been continued, encompassing the following companies: Pobjeda AD Podgorica, Institut "Dr Simo Milošević" AD Igalo, Container Terminal and General Cargo AD Bar. Public tender procedure for the privatization of Container Terminal and General Cargo JSC Bar was closed. Following the successfully finalized negotiations with the bidder, Global ports Holding, Istanbul, Turkey, draft agreement on the sale of 62,09% of the company’s share capital was adopted.

30. Number of sites and establishments will be offered for lease through the establishment of private-public partnership. The emphasis is thereby placed on Ada Bojana, Velika Plaza, Bjelasica-Komovi, Skadar Lake, Morsko dobro, Durmitor etc.

31. Concessions shall be awarded under the equal, transparent and non-discriminatory requirements, for the usage of natural wealth, goods in general use and other goods of general interest, performing activities of the public interest, and enabling infrastructure development and functioning. The Concessions act regulates the conditions, manner and procedure for granting concessions.

32. Concessions shall be awarded by a public announcement. The process of public bidding and selection of bidders, according to the public notice, conducted by an ad hoc commission appointed by the tender competent body for the subject area to which the concession applies.

33. Montenegro has great potential for investment growth through the application of the concession model. Particularly stand out natural and social resources: large quantities unused water, forest and woodland, agricultural land, tourism potential, travel, rail, air and maritime transport.

35. Jovana Tomasevica 2A Podgorica 81000, MNE Phone: (00 382 20) 203-140; 203-141; 202-910 E-mail: Drazen.Vlaovic@ mipa.co.me@ Web site: www.mipa.co.me