RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/13 
30 May 2006 
 (06-2575) 
Working Party on the  
Accession of Montenegro Original:   English 
 
 
  
ACCESSION OF MONTENEGRO 
 
Privatization Report
 
 
 The following submission, dated 12 May 2006, is  being circulated at the request of the 
Republic of Montenegro.  
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   WT/ACC/CGR/13 
Page 2  
 
  Introduction
 
Privatization in 2005 presented a continuation of priva tization process from previous years.  From the 
beginning of privatization process to the end of December 2005, 80 per cent of company's capital has 
been privatized.  Of 386 companies that had in the past an element of State ownership, 
272 companies, or 70.5 per cent, are now completely privately owned.   
Share of private capital in capital structure % Total number of companies 
100 272 
75-99.99 25 
50-75 37 
25-50 39 
less than 25 13 
Total 386 
 
There are three methods of privatization that have  been applied: sale of shares and assets through 
public tender, public auc tion and stock exchange. 
Privatization Plan for 2006  
Implementation of announced  tenders for the following companies will continue: 
- Thermo power plant Pljevlja, as a part of EPCG assets and  "Rudnik uglja" AD Pljevlja; 
- "Pljevaljska banka" AD Pljevlja; 
- AD "Optel"Pljevlja; - AD "Jadran" Perast; - Shipyard Bijela; - AD Leather industry "Polimka" Berane; - Center for relaxation, recreation and health therapy "Igalo" AD; 
- AD "Montenegro Modern Shoes" Cetinje; 
- MMK "Standard" AD Nikši ć; 
- UTIP "Crna Gora" AD Podgorica; and - HTP "Boka" AD Herceg Novi. 
Privatization procedure will be activ ated for the following companies:  
- Institute "Dr Simo Miloševi ć" AD Igalo; 
- "Lov ćen osiguranje" AD Podgorica; 
- "Elektroprivreda Crne Gore" AD Nikši ć – small hydro power plants; 
- "Duvanski kombinat" AD Podgorica;  - "Crnagoraput" AD Podgorica; 
- "Nikši ćka banka" AD Nikši ć; 
- "Montepranzo-bokaprodukt" AD Tivat; - "Željezara Nikši ć" AD Nikši ć; and 
- AD Mlin "Muharem Asovi ć", Nikšić. 
Privatization strategies will be prepared a nd privatization will commence for the following 
companies:  
- "Elektoprivreda Crne Gore" AD Nikši ć; 
- "Željeznice Crne Gore" AD Podgorica; - "Plantaže" AD Podgorica; and - "Luka Bar", Bar.  WT/ACC/CGR/13 
 Page 3 
 
 
  Beside these companies, State-owned capital in tourism and wood processing companies is also going 
to be privatized. 
Privatization Activities in 2005  
Sale of shares and assets through public tender  
In 2005 tenders have been successfully finished for: 
- Telecom Montenegro;   
- "Centrojadran", AD Bar;   - "Podgori čka banka", AD Podgorica;  
- Aluminum Plant Podgorica (KAP); - "Rudnici Boksita" AD Nikši ć; and 
- HTP"Korali"Bar.  
Two major privatizations, the Aluminium Plant Podgorica (KAP) and Telecom Montenegro, have 
been initiated at the end of 2004.  Telecom priva tization has been finalized in March 2005, when 
representatives of the Government of Montenegro and Matav (Hungarian Telecom in German Telecom ownership)  signed a contract for sale of 51.1 per cent of shares.  The purchasing contract for 
Aluminium plant has been signe d the Russian Russal Company. 
Sale of shares and assets through the public auction
 
Sale of part of assets and shares of certain comp anies has been privatized through public auction 
procedure.  
Sale of shares through stock exchange  
Privatization through stock exchange sales is ongoi ng through normal sale-purchase procedure.  
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