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 20 – Enterprise and Industrial policy Bilateral screening: Chapter 20 PRESENTATION OF MONTENEGRO Brussels, 28 November 2012

2. Working Group for Chapter 20 - Enterprise and Industrial policy- Poglavlje 25 Nauka i istraživanje Bilateral screening: Chapter 20 Presentation of Montenegro Brussels, 28 November 2012 Chapter 20: Enterprise and industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

3. Poglavlje 25 Nauka i istraživanje CONSTRUCTION Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Danilo Gvozdenović Deputy Minister Ministry of Sustainable Development and Tourism danilo.gvozdenovic@mrt.gov.medanilo.gvozdenovic@mrt.gov.me Tatjana Vujošević Construction engineer Chamber of Engineers tatjana.vujosevic@mrt.gov.metatjana.vujosevic@mrt.gov.me

4. MONTENEGRO Economy with a high degree of liberalization; A tourist destination; Small market comparing to markets in other European countries; Bid is less than the demand for labor in the construction sector; Global economic crisis has affected the investment construction. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy

5. Gross value of productionGross added value 2010 2011 Construction 566 991 548 109151 904 158 080 total 5 159 823 5 239 6142 587 237 2 704 668 Table 1: The gross output and gross value added at current prices, 2010 - 2011 (Source - MONSTAT)  Construction makes for about 10% of the total economy of Montenegro. (Source-Strategy Development Montenegrin construction until 2020) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and industrial policy Chapter 20: Enterprise and industrial policy in thousands of €

6.  Value of construction work in 2011 was 283,074,000 € (representing an increase of 10.2% comparing to 2010);  Value of effective working hours on construction work in 2011 was 14,973,000 € (increased by 18.6% comparing to 2010);  Value of new contracted works in 2011 was 104 558 000 €. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy (Source - MONSTAT) value of construction works in 000 € the value of new orders for buildings and other construction in 000 €

7.  Number of completed apartments in 2011 was 4.343, an increase of 6.1% comparing to 2010. Graph: Number of completed dwellings for period of 2006 - 2011 (Source - MONSTAT) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy 200920102011 Buildings242 446169 690188 243 Other construction119 984133 76494 831 Total362 430303 454283 074 Table: Value of completed construction works in 000 € (Source - MONSTAT)

8. Number of employees 200520062007200820092010 Construction7.5636.8536.6478.8319.9977.903 Total144.340150.800156.408166.221174.152161.742 %5,24,54,255,35,74,9 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy  The total number of employed in 2010 in the construction industry was 7.903, or 4.9%;  Number of employees in the construction sector in 2011 was 7103, which is 1.1% less than in 2010. Effective working hours, 000

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy YEAR SMALL MEDIUM LARGETOTAL 201016461441664 201118361621854 1/2 20121907117162040 Table: Businesses by class size (small, medium, large and total) in construction SME

10. In November 2010 was adopted the STRATEGY FOR DEVELOPMENT OF CIVIL ENGINEERING IN MONTENEGRO UNTIL 2020 with the Action Plan for Implementation The aim of the Strategy is:  to largely use its own resources in the most efficient manner;  the construction itself becomes an innovative and meets the needs of Montenegrin citizens and the economy in an efficient manner;  to become a part of the construction of the European Union;  to provide competitive services to international projects and deliver products with standard quality. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy 7 STRATEGIC ASSIGNMENTS 1. MONTENEGRIN INTEGRATION IN THE EU AND SUSTAINABLE DEVELOPMENT 2. LEGAL AND INSTITUTIONAL FRAMEWORK AS A BASE FOR CIVIL ENGINEERING DEVELOPMENT 3. TECHNICAL REGULATION AS A BASE OF THE SYSTEM QUALITY IN THE CIVIL ENGINEERING 4. STRENGTHENING OF THE COMPETITIVENESS OF THE CIVIL ENGINEERING COMPANIES 5. CONTINUITY OF THE CAPITAL INVESTMENTS 6. FORMING AN ADEQUATE LABOUR FORCE IN THE CIVIL ENGINEERING AREA 7. DEVELOPMENT OF THE INDUSTRY OF CONSTRUCTION MATERIALS BASED ON SUSTAINABLE DEVELOPMENT PRINCIPLES

12. OBJECTIVES OF THE EU STRATEGY = MNE MAIN STRATEGIC ASSIGNMENTS M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy STIMULATING FAVOURABLE INVESTMENT CONDITIONS 5. Continuity of the capital investments 4. Strengthening of the competitiveness of the civil engineering companies IMPROVING THE HUMAN-CAPITAL BASIS 2. Law and institutional framework as a skeleton for civil engineering development 6. Forming an adequate labour structure in the civil engineering area IMPROVING RESOURCE EFFICIENCY, ENVIRONMENTAL PERFORMANCE AND BUSINESS OPPORTUNITIES 2. Law and institutional framework as a skeleton for civil engineering development 7. Development of the building industry materials based on the principles of the sustainable development STRENGTHENING THE INTERNAL MARKET FOR CONSTRUCTION 2. law and institutional framework as a skeleton for civil engineering development 3. Technical regulation as a base of the system quality in the civil engineering 5. Continuity of the capital investments FOSTERING THE GLOBAL COMPETITIVE POSITION OF EU CONSTRUCTION ENTERPRISES 1. Integration of Montenegro in the EU and sustainable development 3. Technical regulation as a base of the system quality in the civil engineering

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy REGULATIONS  Law on spatial development and construction of structures („Official Gazette of Montenegro", No:51/08 from 22/08/2008, 40/10 from 22/07/2010, 34/11 from 12/07/2011):  ‘’one stop shop’’;  shorter terms for urban-technical conditions and construction permits;  reduce costs for investors.  Law on Construction Products (drafting in process)  The Regulation 305/2011 European Parliament and Council on March 09, 2011 on establishing harmonized conditions for placement of construction products on the market, will be implemented into the national legislation.

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy LAW ON ENERGY EFFICIENCY  According to the Law on energy efficiency, basic requirements of Directive on the Energy Performance of Buildings (Directive 2002/91/EC of the European Parliament and of the Council on the energy performance of buildings) have been transposed. The process of harmonization will be finalized through the adoption of appropriate set of bylaws;  Amendments to the Law on Energy Efficiency that is planned for the fourth quarter of this year, will transpose requrements of inovated directive for buildings -Directive 2010/31/EU on the energy performance of buildings.

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy EUROCODES  Project „Achieving highest safety and technical quality of construction “ - 18 months (implementation began on April 27, 2012);  The results of the project: → Action plan for adoption of the Eurocodes ; → Action plan for implementation of the Eurocodes; → National Annex to Eurocode 8 part 1.

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy EDUCATION Strategy for development of engineering recommends a reform in education with an aim to:  Comply with current, and future needs of the labor market ;  Be available to everyone: students, adults, people with disabilities, unemployed;  Lifelong learning –through various forms of professional training;  Flexibility - mobility within and outside the system;  Effectiveness - to enable the achievement of the desired level of qualifications;  Rationality - that makes optimal use of available resources;  Functionality - simply in terms of organizational structure;  Orientation towards the achievement of sustainable development.

17.  On 7 July 2012 the Government of Montenegro has adopted: The 2012-2016 Strategy for Sustainable Economic Growth of Montenegro through introduction of clusters, Action Plan for the implementation of Strategy for Sustainable Economic Growth of Montenegro through the introduction of clusters for 2012 -2013. and the Indicative Action plan by the end of 2016.  The construction industry is mainly located in the central and southern region of the country, and is a very significant sector for Montenegro;  The construction sector comprises clusters involved in the construction of buildings, roads, tunnels, bridges, and removing construction materials;  7 clusters identified in the construction sector: 2 clusters - stone production, 2 clusters - manufacture of metal parts and metal structures, and 3 clusters - manufacture of metal doors and windows.  Identified clusters together make 76 companies with a total of 1.047 employees and estimated annual turnover of 22 million € and 628 dependent households. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy CLUSTERS

18. FIDIC ACEM - Association of Consulting Engineers MONTENEGRO, member of:  FIDIC (International Federation of Consulting Engineers) since 2010;  CEEC (Central East Engineering Commitee) since 2011;  EFCA (European Federation of Engineering Consultancy Associations) since 2012. ACEM has 34 members :  engineering consulting companies;  state institutions (Ministries, departments);  universities. ACEM is accredited by FIDIC for maintenance of local and international trainings:  held six FIDIC Training - Module 1 ‘’FIDIC knowledge'' and  Certificate ACEM has received 137 applicants. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 20: Enterprise and Industrial policy Chapter 20: Enterprise and Industrial policy

19. Thank you for your attention! QUESTIONS