VZCZCXRO5124
PP RUEHAG RUEHAST RUEHBW RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPOD #0141/01 1260906
ZNR UUUUU ZZH
P 050906Z MAY 08
FM AMEMBASSY PODGORICA
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHPOD/AMEMBASSY PODGORICA 0859

UNCLAS SECTION 01 OF 02 PODGORICA 000141 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ETRD ECON PREL RU MW
SUBJECT: UNPRECEDENTED INVESTMENT OPPORTUNITIES IN MONTENEGRO 
 
PODGORICA 00000141  001.2 OF 002 
 
 
¶1. (U) Summary: Montenegro is entering the largest investment 
cycle in its history, a cycle that creates serious potential 
opportunities for U.S. and other Western investors.  The GoM 
plans tenders totaling between 15 and 20 billion euros in 
infrastructure, tourism, energy, and the privatization of the 
remaining state-owned companies over the next two years. Eager 
to change the impression that only Russians are investing in 
Montenegro, the GOM is carrying out an aggressive "invest in 
Montenegro" campaign around the world. As part of this campaign, 
Minister for Economy Gvozdenovic will be in the U.S. this week 
to pitch several large projects to potential U.S. investors. 
End summary. 
 
 
 
¶2. (U) The types of investments and projects, including their 
estimated worth (in Euros), which the GoM plans to release in 
the next two years are as follows (this is not an exhaustive 
list): 
 
 
 
     Infrastructure and Energy 
 
 
 
          Highways       -- 3.2 billion Euros 
 
          Water Supply/Waste water and Solid waste 
                 -- 150 million Euros 
 
          Energy projects/5 Hydro plants and 2nd block of 
        Thermo plant  -- 2.5 billion Euros 
 
 
 
     Privatizations 
 
 
 
          Port of Bar        -- 125 million Euros 
 
          Railway (Bar - Belgrade, Niksic - Capljina, and 
            Berane - Pec) -- 450 million Euros 
 
          Airports of Montenegro (Podgorica and Tivat) 
                          -- 60 million Euros 
 
          Vineyard Plantaze  -- 150 million Euros 
 
          Tobacco Company    -- 15 million Euros 
 
          Institute Simo Milosevic     (a health and wellness 
             center)       -- 125 million Euro 
 
          Montenegro Airlines -- 60 million Euros 
 
 
 
     Greenfield investments in the tourism sector 
 
 
 
          Ada Bojana    -- 200 million Euros 
 
          Velika Plaza -- estimated between 3 and 10 
                billion Euros 
 
          Valdanos       -- 150 million Euros 
 
          Ostrvo cvijeca      -- 75 million Euros 
 
          Kumbor         -- 90 million Euros 
 
          Lustica        -- 1,000  million Euros 
 
          Bigova         -- 40     million Euros 
 
          Zabljak former Military site -- 12 million Euros 
 
          Jaz           -- 500 million Euros 
 
          Buljarica      -- 1 billion Euros 
 
 
 
 
 
¶3. (SBU) The presidential elections dominated the GoM's schedule 
in March and early April, but since incumbent Filip Vujanovic's 
convincing victory on April 6, ministers with responsibility for 
the upcoming tenders have been touring the country and the globe 
 
PODGORICA 00000141  002.2 OF 002 
 
 
looking for investors.  Economic Development Minister 
Gvozdenovic and Tourism Minister Nenezic were in Dubai during 
the week of April 21, Minister Gvozdenovic and a team from the 
Ministry of Economic Development head to the U.S. for a week to 
promote projects in the energy sector and one very large tourism 
project -- Velika Plaza -- on May 5, and Minister Gvozdenovic 
will follow up his U.S. trip with a stop in Paris the following 
week. Transport Minister Lompar will promote the highway project 
in London at the end of May. 
 
 
 
¶4. (SBU) Back in Podgorica, DPM Gordana Djurovic is focused on 
strengthening the country's overall international economic 
standing, most notably moving Montenegro full steam ahead into 
the WTO. Having reached agreement with the EU on terms of its 
WTO accession, the U.S. is now the main remaining bilateral 
partner with whom the GOM must reach an accord prior to joining 
the WTO. In a meeting with the Ambassador on April 29, the DPM 
proposed holding "technical-level" discussions to resolve 
remaining bilateral issues and noted that the GOM would be 
delighted to welcome a U.S. team to the Montenegrin coast, 
perhaps on the eve of the next Working Party -- which she hopes 
will be in July -- or earlier. She also said that Geneva or 
Washington would work as venues for such discussions. Djurovic 
said Gvozdenovic may raise this idea in his Washington meetings 
this week. 
 
 
 
¶5. (SBU) Comment: By the end of May, the GoM will have 
approached at least six countries with in-person 
Ministerial-level delegations to promote investment 
opportunities in Montenegro.  Officials have also been promoting 
the opportunities widely in the Montenegrin press and through 
local and regional conferences, such as the Vienna Economic 
Forum in mid April, and are working hard to strengthen 
Montenegro's economic standing internationally. It is clear that 
building on the impressive economic growth that Montenegro has 
seen over the last few years is a significant priority for the 
GoM.  It is also an area in which Prime Minister Djukanovic has 
told us he expects to see tangible results by the end of the 
GoM's current mandate (Fall 2009). Central European and Russian 
investors are already aware of the possibilities in Montenegro, 
and the challenge is to spread this awareness, particularly to 
U.S. investors.  Minister Gvozdenovic's trip to the U.S. in May 
will be a positive step in this direction. 
RMOORE