NewsMontenegro positions itself as a leader in public-private partnerships

Montenegro positions itself as a leader in public-private partnerships

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Montenegro is emerging as a model for bridging the gap between the public and private sectors, laying the groundwork for a dynamic, sustainable and modern economy ready to embrace new opportunities and tackle future challenges.

This message was conveyed at the opening of the Second Regional Conference on Public-Private Partnerships (PPP), organized by SIGMA, the Ministry of Finance and the Agency for Investment of Montenegro.

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Finance Minister Novica Vuković emphasized that Montenegro is not only developing its infrastructure but also setting an example for building robust connections between public and private sectors, establishing the foundation for a resilient and innovative economy capable of meeting tomorrow’s challenges.

Public-private partnerships are a strategic tool for achieving sustainable development goals. Through collaboration, we can enhance the execution of key infrastructure projects, mobilize resources, and encourage innovation. For a country like Montenegro, which is dedicated to its European path and improving the living standards of its citizens, PPPs are essential,” Vuković stated.

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He noted that the Ministry of Finance, along with the Investment Agency, recognizes the importance of creating a favorable and stable environment for public-private partnerships.

“Our task is to provide a transparent legal and fiscal framework that attracts investors while ensuring the protection of public interests. Through projects implemented via the PPP model, we can significantly alleviate pressure on the state budget and enable the private sector to take the lead in project management. Montenegro is determined to become a regional leader in developing modern and innovative solutions through PPPs. Our fiscal strategy also relies on this type of partnership to ensure the sustainability of public finances and achieve comprehensive progress,” Vuković highlighted.

Snežana Đurović, Director of the Investment Agency, remarked that leveraging the strengths of both sectors can address challenges, open new opportunities, and improve the quality of life for all citizens.

“At this crossroads of opportunities, our country is ready for significant advancement through cooperation between the public and private sectors. The PPP model allows us to harness innovation, efficiency, and investments critical for enhancing our infrastructure and public services. Montenegro has made significant strides toward creating a favorable environment for PPPs. Public-private partnerships provide a framework for innovation, efficiency, and shared responsibility, enabling us to build infrastructure, improve services, and stimulate economic development for the benefit of all,” Đurović stated.

She emphasized that collaboration between the Ministry of Finance and the Investment Agency is key to promoting economic development and infrastructure projects in Montenegro, improving planning, implementation, and management of PPP projects to align them with national economic goals.

“Regional cooperation is the foundation for successful public-private partnerships. By working together, countries and regions can pool resources, share expertise, and create synergies that lead to more efficient outcomes. Whether through the exchange of best practices, financial resources, or technological advancements, cooperation expands our capabilities. Knowledge sharing is vital for maximizing the efficiency of PPPs,” Đurović added.

Damir Cimer, a representative from SIGMA, mentioned that digital tools can optimize operations, enhance citizen engagement, and make public services more efficient.

“There is a strong emphasis on involving all relevant stakeholders throughout the project cycle. By identifying priorities within community needs, we can ensure that our stakeholders receive all the intended benefits. We are looking at tailored PPP models that better respond to new market conditions and societal needs, as well as financial, economic, and ecological trends,” Cimer explained.

According to him, governments are seeking innovative partnerships to enhance resilience and service quality in key areas.

“By exploring new financial mechanisms, we can create structures that allow for more sustainable project financing. This involves blended financing, combining public and private partnership investments to ensure profitability and project success. It’s crucial to highlight the importance of regional cooperation in the context of EU expansion,” Cimer stated.

He believes that improved connectivity will lead to greater economic growth and create new opportunities for businesses and communities.

“As we work towards common goals, we forge stronger ties, overcome political differences, and contribute to building a more cohesive territory in the Western Balkans. Clear communication, shared objectives, and transparency are essential for overcoming challenges,” Cimer concluded.

Ingve Engstrom, a representative from the EU Delegation in Montenegro, pointed out the need to utilize private capital, as much money remains unused in banks. “This capital could be leveraged for public goods and the benefit of businesses. It’s an ideal situation. From PPPs, we gain professional management, profitability, and reduced political influence, leading to greater sustainability and long-term profits. These are critical aspects, but we shouldn’t assume upfront that it will be cheaper, as companies involved in the system need to achieve a profit,” Engstrom stated.

He stressed the importance of building public trust in concessions and public-private partnerships, emphasizing the need for transparent procedures and processes to foster that trust.

“We must enhance expertise within public administration and ensure that staff in ministries engaged in public-private partnerships possess the necessary competencies. Our goal is to achieve the best value for the money invested for all involved partners and parties,” Engstrom concluded.

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