1. 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 14 – Transport Bilateral screening: Chapter 14 PRESENTATION OF MONTENEGRO Brussels 27-30 May 2013

2. Chapter 14: Transport PUBLIC SERVICE Tanja Dašić Adviser for rail transport Ministry of Transport and Maritime Affairs tanja.dasic@msp.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 14: TRANSPORT

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union CONTENT  Regulation 2007/1370/ECC  RAIL TRANSPORT  ROAD TRANSPORT  AIR TRANSPORT Chapter 14: Transport  Institutional Framework  Legislative Framework  Current and Future Activities

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT I RAIL TRANSPORT IN NEW LAW ON RAILWAYS – was passed Assemby second weak of May 2013 Regulation 2007/1370/ECC on public service transport by rail and road  Full compliance: 67%  Partly compliance: 11%  Inapplicable:17%  Not transferable: 5%

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT  An operator performing public passenger transport may be obliged to provide public passenger transport services on specific lines  The public interest to provide services of passenger transport shall be defined based on the following criteria:  meeting economic and social needs  transport on the stretches where other types of transport are not available  the amount of cost to provide transport compared to other types of transport  qualitative and quantitative possibilities of the public service provider

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT MANNER OF ASSIGNING AN OBLIGATION TO PROVIDE PUBLIC PASSENGER TRANSPORT SERVICES  Agreement on providing public service  The agreement shall be concluded based on public invitation or the Government’s decision  An agreement which is concluded indirectly based on the Government’s decision shall be concluded for a time period of up to 10 years by the administrative body  Contracts concluded on the basis of a public invitation shall be concluded for a period of 15 years, and if the planned investment in railway rolling stock contract shall be concluded for a period of 22 years

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT FEE FOR PROVIDING PUBLIC SERVICE  A fee shall be paid for the provision of public service to cover a part of the operator’s costs which the operator is not able to provide from his/her income achieved at specific distance  The funds to be disbursed shall be provided from the Budget of Montenegro  The amount of the fee shall not exceed the amount of a part of the costs for provision of public service  Compensation for the obligation to provide transport services of public interest, calculated in accordance with the methodology established by the Government on the proposal of the ministry  The operator who provides public services shall keep separate bookkeeping for public services

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT AGREEMENT ON PROVIDING A PUBLIC SERVICE The agreement on providing public service shall include particularly provisions which:  rights and obligations of the operator  type of public service and public service period  providers of public services  geographical areas to which public service obligation refers  parameters according to which the fee amount is calculated and the manner of paying the fee for the provision of public service  arrangements for the share of costs relating to obligation of providing public service, which particularly include costs for staff, energy, fees for infrastructure, maintenance and repair of rolling stock and installation necessary for providing public service and fixed costs

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT  arrangements for the share of profit from ticket sale, that is, profit kept by the operator and/or divided and returned in the Budget of Montenegro  the duration of agreement on providing public services  service quality provided by the operator  obligation of the operator to inform the administrative body about the implementation of contractual obligations  the consequences of failure to fulfil or untimely perform contractual obligations  sanctions for non-fulfilment of the obligations by the operator  manner of dispute settlement, and  other elements of importance for providing public service

10. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT II ROAD TRANSPORT  According to the Law on Road Transport of the local community on the basis of open competition, made a contract for regular passenger transport in urban transportation line. The contract is valid for three years

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PUBLIC SERVICE Chapter 14: Transport Chapter 14: TRANSPORT III AIR TRANSPORT  Law on air traffic (OGM30/12)  Article 37 Public Service Obligation (PSO)  In cases where the air carrier would not have a commercial interest in providing air services on a specific route, and if that route is considered vital for the economic and social development of a specific region, the Government can impose a public service obligation (PSO) on that route

12. Thank you for your attention QUESTIONS