Montenegro Consul Presents Opportunities for Slovenian Companies (interview)
Ljubljana, 24 January (STA) - Montenegro's Honorary Consul Vojislav
Kovač has told the STA in an interview that Slovenia and Montenegro have
very good political and economic relations, and that there are still plenty
of opportunities for Slovenian companies in his country. Energy and
infrastructure projects have the biggest potential.
Kovač, a successful businessman, noted that Slovenian companies and
investors have been present in Montenegro since the earliest phases of the
transition and privatisation in the young country.
Respected
Slovenian companies and financial institutions are present in Montenegro,
including the NLB bank, gaming company Hit, insurer Zavarovalnica Triglav,
reinsurer Sava Re, logistics company Intereuropa, retailer Mercator and
fuel retailer Petrol.
Slovenian capital has been invested in numerous
companies and funds, while the number of Slovenian tourists is on the rise.
Trade between the countries before the economic crisis reached EUR 160m, he
added.
$Given all these indicators and the good relations, I
believe that there are plenty of opportunities for cooperation in the
future,$ Kovač said, mentioning investments in energy as an
example.
According to him, the energy sector will be a great
opportunity for Slovenian companies, as a 1,000-megawatt submarine cable is
planned between Montenegro and Italy, transferring electricity to
Italy.
Much is also expected from agriculture and tourism. Major
investments are planned in the construction and modernisation of the
utility and road infrastructure and waste water management. $It is
expected from Slovenian companies to show interest and participate in the
projects.$
Kovač noted that Montenegro had mainly developed
private entrepreneurship in the recent years. Food industry is also
growing, so $I believe that we will soon have companies competitive
outside the Montenegro borders.$
Asked about the decline in
bilateral trade, which last year stood at EUR 100m, he assessed that the
financial and economic crisis, which has hit the entire region, was the
main reason.
However, cooperation between Slovenia and Montenegro
should not be measured only by trade figures. $Montenegro's economy is
dominated by tourism and other services, and this is where major income is
recorded, including from Slovenian tourists$.
The country has a
very attractive tax policy, as corporate tax stands at 9%, but the minuses
emphasised by Slovenian executives are the lack of liquidity and payment
discipline. But in the time of recession, this is a problem faced by the
entire region. Kovač said.
Asked about the chances of the faltering
Slovenian construction sector to win deals in Montenegro, he noted that
Slovenian builders had constructed some of the most important structures
there, such as the Sozina tunnel (SCT) and the Millennium Bridge
(Primorje), one of the landmarks of the capital Podgorica.
Montenegro
will continue to use the know-how and experience of Slovenian builders in
the construction of the most demanding structures. $Montenegro has
been an important market for Slovenian builders, and their presence is also
expected in the future.$
The majority of privatisations
involving Slovenian companies were successful, according to Kovač.
Slovenian companies carry out their projects professionally and in time, so
the predominant image of Slovenian entrepreneurship in Montenegro is
positive, he added.
$It is interesting that I get a lot of
questions from Montenegro regarding the situation and prospects of the NLB
bank, which acquired Montenegrobanka in 2003 and enjoys big respect and
credibility in the Montenegrin business world$.
Despite the
abundant natural resources, Montenegro, as a small and open economy, is
aware that it cannot develop without foreign capital. This is why emphasis
will be put this year on attracting new investors, Kovač concluded.
