TRANSPORT CONNECTIVITY IN MONTENEGRO THE ROAD AHEAD 4 „TRANSPORT CONNECTIVITY IN MONTENEGRO - THE ROAD AHEAD“ Publisher European Movement in Montenegro For publisher Momčilo Radulović Editor Momčilo Radulović Author Marko Lubarda Design and printing Studio MOUSE- Podgorica Volume 300 European Movement in Montenegro (EMIM) Vasa Raičkovića 9, 81000 Podgorica Tel/Fax: 020/268-651; email: office@emim.org web: www.emim.org , www.eukonvencija.me This study was produced within the project ”SAGOV – South Adriatic Connectivity Governance“, implemented by the European Movement in Montenegro, Cooperation and Development Insti- tute from Albania, Ministry for infrastructure and energy of Albania, Ministry of transport and maritime affairs of Montenegro (Ministry for capital investments) and Region of Puglia, Italy. Note: This project is financed by the INTERREG Italia-Albania-Montenegro EU Fund, but this study presents solely opinions of the authors and not of the EU or INTERREG authorities. 5 TRANSPORT CONNECTIVITY IN MONTENEGRO THE ROAD AHEAD INTRODUCTION The transport sector in Montenegro is imbued with enormous potential, evident in its favorable geographical location, convenient access for trade, flight and maritime connectivity, as well as good railway and road connection to Eastern and Central Europe. Moreover, 2 international airports with year round and seasonal flights connects Montenegro to major European capitals and other regions of the world, whereas its maritime connectivity offers popular nautical, cruis- ing and yachting destinations, such as Port of Kotor, Port of Bar, Porto Montenegro, Marina Budva, Marina Bar, Lustica Bay etc. Also, Montenegro has an access to a market of around 800 million consumers, thanks to its participation in the World Trade Organization, the Stabi- lization and Association Agreement, CEFTA, EFTA, Russia, Turkey and Ukraine. According to the 2020 World Bank Doing Business Report, Montenegro is ranked 50 th out of 190 countries 1) 1) World Bank Group “Doing Business 2020”, http://documents1.worldbank.org/curated/en/688761571934946384/pdf/Doing-Business-2020-Com- paring-Business-Regulation-in-190-Economies.pdf 6 2) INSTITUTIONAL FRAMEWORK In December 2020, following the August 30 th Parliamentary elections, the Montenegrin ad- ministration underwent a structural overhaul, which includes the transport sector as well. The competence of what used to be the leading institution inthe sector,the Ministry of Transport and Maritime Affairs, has been transferred to the Ministry of Capital Investments, with the term “Transport” being entirely omitted from all Government bodies. Moreover, the new Act on the Organization and Systematization which will delineate directorates, departments and other institutional units in the Ministry of Capital Investments is still in the developing stage, and only after its adoption a clearer picture will be provided as to the extent of changes being made in comparison to the previous administrative structure. According to the new Decree on the Organization and Operability of the Public Administration ( “Official Gazette” no. 118/20 from 07.12.2020), the following bodies are involved in the Trans- port sector in Montenegro: 2) Transport Development Strategy of Montenegro 2019 – 2035 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2a- hUKEwjlrcehn4LvAhWhxIsKHScCDj4QFjAAegQIARAD&url=http%3A%2F%2Fwww.msp.gov.me%2FResourceManager%2FFileDownload.aspx%- 3FrId%3D369086%26rType%3D2&usg=AOvVaw0UU5KoEyAEtCD_bob5KjCE 7 Body Competence Contact Ministry of Capital Investments Development, management and coordination of different transport modes, including: railway transport, road transport, state roads, maritime transport and inland water navigation and air transport. www.msp.gov.me Transport Administration Management, development, construction, reconstruction, maintenance and protection of state roads in Montenegro, participation in strategy and long-term plan development, providing technical documentation, implementing public calls and tenders, providing technical assistance to motorized transport participants etc. https://www.uzs.gov.me/uprava Railway Administration Management, development, construction, reconstruction, maintenance and protection of the railway network in Montenegro, , participation in strategy and long-term plan development, providing technical documentation, implementing public calls and tenders, providing technical assistance to railway transport participants etc. https://uzz.gov.me/uprava Maritime Safety and Port Management Administration Maritime safety in the coastal area of Montenegro, management and maintenance of maritime traffic, inspection of maritime vessels safety, gathering oceanographic, hydrographic and meteorological data, providing technical expertise, implementing international and EU conventions in the maritime sector etc. https://www.pomorstvo.me/ Port Authority in Bar Construction, maintenance and management of the port; supervision of the operations of ports, providing of port services and other activities in ports. www.lukabar.me Ministry of Ecology, Spatial Planning and Urbanism Spatial planning, environmental protection, accessibility of Montenegro as a tourist destination www.mrt.gov.me Ministry of Interior Traffic safety, border crossings, drivers and vehicles records, emergency response. www.mup.gov.me 8 Office for European Integration Oversees the EU accession process and is tasked with horizontal monitoring of expenditures from pre-accession funding and from other EU instruments. www.kei.gov.me “Monteput” LLC Management and construction of Bar- Boljare motorway, management and maintenance of “Sozina” tunnel, and other important state infrastructure projects. www.monteput.me LEGISLATIVE AND STRATEGIC FRAMEWORK As with most of the sectors in Montenegro, legal framework regarding Transport is dependent on the EU integration process and EU acquis transposition. Overall remark can be made that most of the legislation in all transport sectors is transposed, with significant room left for further adoption of bylaws and implementation. Moreover, Montenegro’s transport sector is expected to undergo a gradual integration process in the EU transport market based on the relevant acquis, including the areas of technical stan- dards, interoperability, safety, security, traffic management, social policy, public procurement and environment, for all modes of transport. Adoption of related legislation shall apply to the extent that they concern road, rail, inland wa- terways, maritime transport and transport networks, including airport infrastructure. This will be conducted according to the Treaty on establishing the transport community between the EU and South Eastern European Countries (of which Montenegro is a co-signatory) 3) 3) The Adriatic Beltway: Transport Connectivity in South-Adriatic Area, page 37 , financed by EU Interreg Italy-Albania-Montenegro, project SAGOV 9 The overview of key findings in each sub-sector can be shown as follows: Area Current state Needs to be done Rail Transport Part of the EU legislation has been fully adopted, moderate improvement made. Montenegro has created regulatory and institutional preconditions for opening of the railroad market, partly in 2008, and finally in 2013, by adopting the Law on Railways and accompanying bylaws on licensing and certification of infrastructure managers and rail transport operators. No new operators entered the market due to a low level of freight transport. All stipulated licensing and certification procedures have been completed. New safety management concepts within transport companies have been approved. Harmonized approach directed by EU legislation is being conducted through regional coordination, while functional and operative Network statements have been made. Newly adopted Law on Railway Transport, Safety and Interoperability, which is expected to enter into force in 2019, will primarily harmonize regulatory affairs in accordance with Recast Directive 34/2012, which aims to promote a single European railway market and provides all actors with all necessary instructions. Further legislation to be introduced in the following areas: • Market access, • Train driver licensing, • Criteria for the recognition of training centers, • Criteria for the recognition of examiners of train drivers and criteria for the organization of examinations, • Interoperability of the rail system and sub-systems (infrastructure, energy, rolling stock, control command and signaling sub-systems), safety in the railway tunnels, telematics applications for freight and passenger services, operation and traffic management, • Railway safety, on the use of a common European format for safety, the validity of safety certificates, the certification of entities in charge of maintenance of freight wagons, • Inland transport of dangerous goods, and • Working conditions and working hours Road Transport Montenegro has adopted 49% of EU directives and regulations, although some are still only partially aligned. adoption and implementation of EU legislation established common rules for conducting of road transport operations, common rules for access to the international freight road transport market, common rules for access to the international regular and tourist agency bus transport market, as well as for qualifications and training of drivers of certain road vehicles for public transport of freight and passengers. Adoption of EU legislation is important for companies operating freight and passenger transport, and for uses of such services, since defining of common standards for the entire EU territory removes a number of bureaucratic barriers and simplifies public transportation. Further legislation to be introduced in the following areas: • Certain aspects of vehicle tachygraphy, i.e. the requirements for the construction, testing, installation, operation and repair of tachographs and their components, • Road worthiness with respect to roadworthiness tests for motor vehicles and their trailers and the technical roadside inspection of the roadworthiness of commercial vehicles • Driving license, technical requirements with regard to driving licenses which include a storage medium • Cross-border exchange of information, • Clean vehicles and/or alternative fuels infrastructure, • Standardization of ITS in urban areas, the framework of deployment of ITS in the field of road transport and for interfaces with other modes, • Harmonized provision of an interoperable EU-wide e-Call • The provision of information services for safe and secure parking places for trucks and commercial vehicles • The provision of EU-wide real-time traffic information services, • Interoperability of electronic road toll systems, and on type approval. 10 Maritime Transport Montenegro has implemented 70% of EU directives and regulations although many are still only partially aligned. Montenegro has become a member of the European CleanSeaNet satellite detection system for sudden sea pollution and the EU LRIT Data Center for satellite monitoring of ships under the Montenegrin flag. In 2017, the Montenegrin systems for training and certification of seafarers were recognized by the Commission through Commission Implementing Decision (EU) 2017/727 of 23 March 2017. As a result of this recognition, EU Member States may decide, with respect to ships flying their flag, to endorse seafarers' certificates issued by Montenegro and thus allow such seafarers to work on board their ships. Therefore, it is crucial for Montenegro that its systems comply with the requirements at all times in order to ensure the continuity of EU recognition. Due to a lack of Montenegrin commercial fleet and Montenegrin maritime companies, Montenegrin seafarers are forced to enter the global market and sail on ships under the flags of EU or other countries. In order for this to be possible Montenegro has to fulfil standards of STCW Convention (The International Convention on Standards of Training, Certification and Watch keeping for Seafarers) in the field of education and training related to issuing maritime authorizations. It also needs to constantly maintain a good level of quality of issued authorizations for its seafarers. Control of these activities is conducted by a technical body of EC / EMSA (European Maritime Safety Agency). When EC confirms fulfilment of STCW Convention standards through EMSA audit in a certain country, the body publishes the name of the country through an EC Decision and EC puts it on the White List of recognized states. Further legislation should be introduced to satisfy fully the Community Treaty requirements on: • Maritime policy, establishing a Program to support the further development of an Integrated Maritime Policy, • Market access, the transfer of cargo and passenger ships between registers within the Community, • Coordination of action to safeguard free access to cargos in ocean trades, • Unfair pricing practices in maritime transport, • Criteria to be followed in order to decide when the performance of an organization acting on behalf of a flag State can be considered an unacceptable threat to safety and the environment, • Imposition of fines and periodic payments and the withdrawal of recognition of ship inspection and survey organizations, • Liability of carriers of passengers by sea in the event of accidents, • Ship-source pollution and on the introduction of penalties, • Training of seafarers and mutual recognition of authorizations issued by member states; • Social aspects, with respect to certain authorities of the flag state to conduct harmonization with the Maritime Labour Convention and its implementation; • Establishment of a European Maritime Safety Agency, • Establishment of a Committee on Safe Seas and the Prevention of Pollution from Ships, • Besides this, Montenegro is expected to become a part of the European system of maritime safety as soon as possible, namely through: • Full membership in the Paris MoU (ship inspections) and SafeSeaNet system (data exchange system on ships and freight on EU level), • Establishment of the National Single Window System – national data exchange for ships aiming to sail to Montenegrin ports (Directive 2010/65/EC). Air Transport Legislation on air transport and airports is fully compliant with EU directives and requirements, but there are still a few open issues under the first transitional phase of the ECAA that the country should address. Full alignment with European regulation in the field of air transport assumes complete implementation of EU acquis as it relates to air transport through laws and other regulations. A positive example of this practice is implementation of so-called One Stop Security standards in Montenegro, as a way for the EU to acknowledge security standards in non-member states. This means that Montenegro has reached a high level of alignment with the acquis under the first transitional phase of the European Common Aviation Area (ECAA) Agreement and the Single European Sky. Montenegro has almost fully met the conditions required to complete Phase I of the ECAA Agreement. Two issues remain open: • adaptation of the Air Transport Act in order to fully implement the provisions of Regulation 1008/2008 required for Phase 1, on freedom of pricing and non- discrimination, as well as the adoption of penalties for violations of all provisions of Chapter IV of that Regulation; • adaptation of the Labour Law to the relevant legislation laying down working time arrangements in order to fully and correctly implement several basic requirements of the Working Time Manual (Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organization of working time). 11 4) The overview of the legislative and strategic framework of the Transport sector in Montenegro can be shown as follows: Legislation/Strategy Outline Comments Law on Railway Transport, Safety and Interoperability In accordance with Recast Directive 34/2012, which aims to promote a single European railway market and provides all actors with all necessary instructions, with the focus on regulatory affairs and non- discriminatory approach to the public railway network for all providers Drafted, to be adopted in 2020. Further legislation needed, in order to regulate market access, train driver licensing, criteria for the recognition of training centers, criteria for the recognition of examiners of train drivers and criteria for the organization of examinations, interoperability of the rail system and sub-systems etc. Law on Roads Regulates the legal status, development, maintenance, protection, management and financing of public roads. Construction and reconstruction of public roads is carried out in accordance with the Law. New Law on Roads is in Parliamentary procedure. Montenegro has adopted 49% of EU directives and regulations, although some are still only partially aligned. Focus on adoption and implementation of EU legislation establishing common rules for conducting of road transport operations, common rules for access to the international freight road transport market, common rules for access to the international regular and tourist agency bus transport market, as well as for qualifications and training of drivers of certain road vehicles for public transport of freight and passengers etc. Law on Maritime and Inland Waterway Transport Prescribes that “maritime navigation” is navigation at sea, on the rivers of the Adriatic basin to the point where these rivers are navigable on the coastal side, at Skadar Lake and Crnojevic River. The same law defines the inland navigation as navigation on rivers, canals and lakes, except for rivers of the Adriatic basin, Lake Skadar and Crnojevic River. Montenegro has implemented 70% of EU directives and regulations. it is necessary to adopt following legislation: Law on Rights of Passenger in Maritime and Inland Waterway Transport; Amendments to the Law on Maritime Transport Safety; Amendments to the Law on Protection against ship-source pollution, etc. 4) Ibid 12 Law on Air Transport Regulates conditions for the functioning of air transport in the airspace of Montenegro, conditions for air transport safety and security, air transport management, as well as other issues important for air transport. The law is harmonized with obligations under the Chicago Convention on Civil Aviation (Chicago 1947) that were accepted by Montenegro through succession, as well as documents of the International Civil Aviation Organization (ICAO). Montenegro has reached a high level of alignment with the acquis under the first transitional phase of the European Common Aviation Area (ECAA) Agreement and the Single European Sky. Montenegro has almost fully met the conditions required to complete Phase I of the ECAA Agreement. Only two issues remain open: adaptation of the Air Transport Act in order to fully implement the provisions of Regulation 1008/2008 required for Phase 1, on freedom of pricing and non-discrimination, as well as the adoption of penalties for violations of all provisions of Chapter IV of that Regulation; and adaptation of the Labour Law to the relevant legislation laying down working time arrangements in order to fully and correctly implement several basic requirements of the Working Time Manual (Directive 2003/88/ EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organization of working time). Transport Development Strategy Montenegro 2019-2035 with Action Plan 2019-2020 Lays out strategic and specific (operative) objectives for transport sector development, in order to ensure a basis for future development of this sector, in a manner which fulfills socio-economic needs of Montenegro, while being aligned with EU policy, TEN-T guidelines and standards. TDS determines current state in a variety of transport fields, defines development concepts of infrastructure and transport system, sets long-term objectives for transport infrastructure development and advancement of standards, including standards related to safety and security and environmental protection Harmonization of TDS with the key strategic national documents, both in its drafting and its future implementation, is essential for its successful implementation and ability of this document to contribute to economic and overall social development of Montenegro. Special focus is placed on cooperation with Italy (Puglia) and Albania (Adriatic Ionian highway and Railway between Podgorica and Tirana) 13 The Railway Development Strategy for the period 2017-2027 The field of safety in road transport was the subject of the Strategy on Improving Safety in Road Transport (2010-2019) in the previous period, which defined guidelines related to road transport safety in Montenegro with measures which need to be taken to implement given aims. The Strategy also defined development and functioning of road transport safety system in Montenegro. The current Strategy on Improving Safety in Road Transport was adopted towards the end of 2009 with a foreseen period of implementation starting in 2010 and ending in 2019. For the forthcoming period, Ministry of Interior Affairs is drafting a Program on the Improvement of Safety in Road Transport for the period from 2020 to 2023. As a public policy document, the Program will elaborate in detail the manner in which current issues in the field of safety in road transport are to be resolved. WBIF AND TRANSPORT CONNECTIVITY The potential of Montenegrin Transport Sector can also be demonstrated in complex project activities undertaken within the scope of the Berlin Process, namely in the absorption of West- ern Balkan Investment Framework funds, where the sector of Transport plays a major role and accounts for 72% of project value, out of 5 sectors in total: With regards to the implementation progress of projects financed by WBIF grants, the Transport sector stand as follows, compared to the progress in all sectors: 14 The largest project in the transport sector of Montenegro concerns the rehabilitation of the R4 of the Orient/East-Med Corridor: Belgrade-Bar Railway line, project code PRJ-MNE-TRA-004, with the total grant amount of 49,650,600 EUR (with EIB as the lead IFI). The project consists of the following grants: Title of operation 5) Grant amount (EUR) Status Completion date Reliability of Safety Improvement of Bar-Vrbnica Railway Line (Rail Route 4) 1,005,000 Finalized 29/06/2016 Special Inspection of 106 Tunnels and Development of the Main Designs for their Rehabilitation 2,512,500 Finalized/Execution 10/10/2020 Orient/East-Med Corridor (R4) Reliability and Safety Improvements Phase 2 (Concrete bridges) 3,015,000 Execution 30/10/2019 Orient/East-Med Corridor (R4): Montenegro-Serbia Rail Interconnection, Section Bar-Vrbnica 20,400,000 Execution 30/09/2020 Rehabilitation of the Vrbnica-Bar Railway Line in Montenegro Along the Main Belgrade-Bar Railway (R4) 1,507,500 Execution 31/05/2020 Orient/East-Med Corridor, Route 4, Railway Line Vrbnica-Bar, Replacement of the Signal-Safety System in the Northern Part: Connection to Central Command and Main Design for Rehabilitation of Landslide Ratac 1,929,600 Execution 31/11/2020 Orient/East-Med Corridor: Montenegro-Serbia R4 Rail Interconnection, Bar-Vrbnica Section 16,266,000 Preparation 01/12/2022 Orient/East-Med Corridor, Route 4, Golubovci – Bar Section of the Bar-Vrbnica Railway Line: ESIA, Pre- liminary Design, Detailed Design, PIU Support, Other. 3,015,000 Preparation 30/09/2022 5) WBIF Monitoring Report, November 2019. 15 These grants are a part of the “2015 Connectivity Project”, aiming to rehabilitate the most important section of the Montenegrin rail network, carrying about 20% of all passenger and about 60% of cargo. So far, only the special inspection of tunnels, main designs for their re- habilitation and a reliability study have been finalized. The construction of 29 concrete bridges is being executed, as well as the replacement of the signal-safety system. This means that the first tangible results of the largest WBIF investment in Montenegro are to be seen by the end of 2020, while the whole project will not be completed sooner than the end of 2022. The second largest project is the construction of the Mediterranean Corridor (Road R1)/Adriat- ic-Ionian Highway, project code PRJ-MNE-TRA-003, with the total grant amount of 47,233,075 EUR (with KfW as the lead IFI). The project consists of the following grants: Title of operation 6) Grant amount (EUR) Status Completion date Mediterranean Corridor (Road R1), Adriatic-Io- nian Highway, Construction of Budva Bypass: Preliminary design 2,512,500 Execution 09/07/2021 Mediterranean Corridor, Montenegro – Croatia – Albania R1 Road Interconnection, Budva Bypass: Preliminary design, ESIA 2,125,575 Execution 09/07/2021 Mediterranean Corridor, Montenegro – Croatia – Albania R1 Road Interconnection, Budva Bypass 42,095,000 Prepara- tion 31/12/2023 Priority Bypass on the Montenegrin Coast 500,000 Finalized 31/12/2017 The Budva bypass is part of an EU driven initiative to develop a modern transport route on the extension of the Mediterranean Core Network Corridor in the Western Balkans. Also known as the Adriatic–Ionian Expressway or the Blue Highway, the new development will create a seamless route from Trieste in Italy to Greece, while branching out to Slovenia, Croatia, Mon- 6) Ibid 16 tenegro, and Albania. The new 14 km road, built to expressway standards, is expected to significantly decrease travel time along the Croatia – Montenegro – Albania route and bring other tangible benefits, such as better living conditions for more than 60,000 people living in Budva and nearby areas by reducing emissions, reduction in the accident rate and vehicle operating costs, creation of 350 jobs during the construction and operation and maintenance periods, and improved trade flows with countries in the region and thus a positive impact on the broader economy of Montenegro, to name but a few. However, the tangible results of this project are to be visible not sooner than 2024, with only Priority Bypass in Budva realized so far. 7) Comprehensive network (Road R2b): ScepanPolje (B&H border) – Pluzine , project code PRJ-MNE-TRA-001, with the total grant amount of 4,971,692 EUR (EIB and EBRD as main IFIs). The project consists of the following grants: 7) Completion of the EU-funded Preliminary Design and Environmental and Social Impact Assessment for Budva Bypass, 24.01.2019. https://wbif. eu/news-details/completion-eu-funded-preliminary-design-and-environmental-and-social-impact-assessment-budva-bypass 17 Title of operation 8) Grant amount (EUR) Status Completion date Reconstruction of Main Road Scepan- Polje – Pluzine (B&H border) 150,000 Finalized 01/06/2010 Construction of Main Road ScepanPolje – Pluzine (B&H border) 550,000 Finalized 01/04/2014 Detailed design and Tender Documents for Reconstruction of the ScepanPolje – Pluzine Road 4,271,692 Execution/Pend- ing ToR 31/08/2020 The connecting road is the shortest connecting line between the two capitals: Sarajevo and Podgorica. So far, the technical documentation has been prepared for the construction / re- construction of the 20km long section of the new border crossing of Paklice to Plužine. For the 3km length from the Paklice to the new bridge over the Tara River (not including the bridge itself) at the border between Montenegro and Bosnia and Herzegovina, the project documentation is only prepared at the level of the conceptual solution, so further development is required, including environmental impact assessment. 9) Again, the tangible results of this grant, besides preparatory road upgrades are yet to be visible to the general public. Also, the WBIF finances the preparation of the preliminary design and ESIA for the section Matesevo - Andrijevica, approximately 21 km long (12.43% of the total length of the highway Bar-Boljare), which extends across the mountainous part of Montenegro: between Matesevo (at an altitude of 1,200 m) and Andrijevica (at an altitude of 730 m). 8) Ibid 9) Ministry of Transport and Maritime Affairs, Main project and tender documentation for reconstruction of the main road Šćepan Polje-Plužine, 14.12.2018. http://www.msp.gov.me/en/news/195020/Main-project-and-tender-documentation-for-reconstruction-of-the-main-road-scepan-Pol- je-Pluzine.html 18 OTHER PROJECTS AND INITIATIVES ROAD TRANSPORT BAR-BOLJARE HIGHWAY As mentioned, this project can be labelled as the most important infrastructural project in Montenegro. The Bar-Boljare highway is a 169.2km long stretch of motorway between Mon- tenegro and Serbia, with the goal of ultimately connecting the ports on the Adriatic Sea in the West with ports on the Danube River in Serbia. A 41km stretch of this road (from Smokovac to Mateševo) was agreed to be built with the China Road and Bridge Corporation (CRBC, a subsidiary of the China Communications Construction Company CCCC)in a contract signed on October 30, 2014. The Smokovac-Mateševo stretch is still under construction, with the estimate of around 93% of works to have been completed. Of the 809.6 million EUR total required for the construction, the EXIM Bank is providing a 689 million EUR loan given for a 20-year period and a 2% fixed interest rate, while Montenegro is responsible for paying 121.44 million EUR. However, this agreed price has been increased by another 90 million EUR for the subsequent construction of access roads to podogrica and communal infrastructure along the highway. Around 30% of the work is required to be implemented by the local companies. 10) Moračica bridge, part of the future highway 11) The latest developments regarding the construction of this section of the motorway, entails the possibility of signing a new annex to the contract between the Government of Montene- gro and the CRBC, the main contractor. According to the previous annex to the contract, the 10) LAD Case Study: The European Silk Road: Montenegro’s Decision to Build a New Highway https://fsi-live.s3.us-west-1.amazonaws.com/s3fs-public/ montenegro_highway.pdf 11) Total Montenegro News, Breaking of Highway Construction Deadline Requires Additional Contract Annex https://www.total-montenegro-news. com/business/5912-highway-construction-deadline-s-breaking-requires-the-contract-annex 19 Smokovac–Mateševosection was supposed to be completed by the end of September 2020. The whole project has lately been under a significant amount of scrutiny due to allegations of a lack of transparency and the fact that previous agreements between the Government of Montenegro and CRBC had been declared a business secret. Also, there is an impending postponement of the start of the loan payment and a question whether the grace period in 2021 will be extended, with numerous experts believing that Montenegro will have to refinance the loan installments. 12) MARITIME SECTOR The Vessel Traffic Monitoring and Information System (VTMIS) The VTMIS is an extension of the Vessel Traffic Service (VTS), in the form of an Integrated Maritime Surveillance, which incorporates other telematics resources to allow allied services and other interested agencies in the direct sharing of VTS data or access to certain subsys- tems in order to increase the effectiveness of port or maritime activity operations as a whole, but that do not relate to the purpose of the VTS itself.Monitoring and management of maritime navigation (VTMIS) includes: • Gathering data on vessels and maritime navigation; • Providing data to all vessels; • Providing navigational advice and support for vessels; • Organizing navigation and management of maritime navigation; • Control over the safety of navigation. The general objective of the VTMIS is to collect all the necessary information on maritime traffic in the Montenegro waters through different on-shore sensors, thus making possible to process, analyze, display in real time, store and replay all collected data, to share and distribute such information to the competent national and international authorities and institutions. In addition, the Montenegro VTMIS is assigned the task to control and manage the maritime traffic in the Montenegro part of the Adriatic Sea on everyday basis as well as in case of incidents or acci- dents anywhere within the internationally recognized area of the responsibility of Montenegro. In order to implement VTMIS a sound investment has to be done. Maritime Safety Department (MSD) of Montenegro implemented some subsystems of VTMIS and technical requirements that Montenegro had to do as coastal state (VHF, GMDSS, AIS, LRIT, ADRIREP mandatory reporting etc.) through regular budget, despite budgetary limitations experienced in the past years. This project allows MSD to allocate sufficient basic equipment to local industry to re- spond to spills identified in the risk assessment as likely to occur within their individual areas of responsibility. This gives each region the independence both to deal with minor spills and to mount a credible first response to more significant incidents. Considering the aforementioned, the aim of this project is to provide support to the MSD to improve monitoring of Montenegro coastal zone and to combat, minimize and eliminate the consequences of oil spill incident. Costs of implementation of the first phase of VTMIS on Montenegrin coast were 1.8 million euros. The second phase will include installation of addi- tional CCTV sensors on existing VTMIS locations, new sensor locations in Lake Skadar and 12) Ibid 20 Boka Bay and the implementation of the “Single Window” information system (EU Directive 2010/65). Estimated costs for introduction of first two actions amount to 1.6 million euros and for the third action 500,000 euros. Also, with the support of the EU, VHF telecommunication coverage of the navigation of vessels on the Skadar Lake is planned and the introduction of the so-called AIS base stations to monitor the movement of passenger boats on the lake. 13) Rehabilitation of Volujica quay construction (length of 554m) and construction of Volujica quay extension (166m) in Port of Bar In the Port of Bar, an extension of the coast at the passenger terminal is planned. The project involves extending the existing coastline at the passenger terminal for 432.85 m in length and a 30 m in width, and its implementation would eliminate the existing limitations associated with low water depth along the existing operational coast (the maximum water depth is currently at the berth 54 - 5.9 m) and it would enable the acceptance of medium and large passenger ships (including combined ships for both passengers and cargo), as well as cruise ships. There is a plan to extend the operational part of the coast at the terminal for dry bulk cargo for 166 m. Through the project Second Phase of Quarry Volujica in the Port of Bar, it is planned to permanently rehabilitate the northern slope of Volujica hill in order to protect infrastructural and supra-structural objects which are located in the base of the hill, and in order to secure a new zone of 7.8 ha for transhipment and storage of dry bulk cargo. The Port of Bar 14) 13) Contributions of Mr. Djordjije Otasevic and Mr. Djoko Raicevic, experts from the Ministry of Capital Investments 14) Transport Development Strategy of Montenegro 2019 – 2035 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2a- hUKEwjlrcehn4LvAhWhxIsKHScCDj4QFjAAegQIARAD&url=http%3A%2F%2Fwww.msp.gov.me%2FResourceManager%2FFileDownload.aspx%- 3FrId%3D369086%26rType%3D2&usg=AOvVaw0UU5KoEyAEtCD_bob5KjCE