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November 2011

Tenders Tender for the Long-Term Lease of Lastavica Island and Mamula Fortress – Herceg Novi The Government of Montenegro announced a tender which invited experienced international investors to come forward and bid for the long-term lease of Lastavica Island and Mamula Fortress in Herceg Novi. The lease is being offered for a period of 30 years with a possible extension period of up to 90 years. Applicants must demonstrate proven financial solvency, experience in the design, construction and management of complex tourist facilities, and an interest in building up and managing this tourist resort. Bids should be submitted before the deadline date of 1600 (local time) on the 14th December, 2011.

Public Tender for the Long-Term Lease of Land for Developing a Golf Complex in Tivat Following a decision made by shareholders in Montepranzo - Bokaprodukt AD, Tivat, a joint stock company for agriculture, trade and services, the Privatization and Capital Investment Council announced a public invitation for domestic and international investors to participate an international public tender for the long-term leasing of land for a golf complex development in Tivat. Potential investors must be able to demonstrate adequate financial resources, experience in design, in construction and in the operation of large and complex resorts. At a later date it is possible that part of the associated land on which the buildings and facilities are built may be sold in accordance with the law. Bids should include plans for the construction and operation of a purpose built golf course and associated facilities (golf complex). A long-term lease is envisaged for a period of 90 years.

Public Tender for the Sale of the Company “Pobjeda” A.D. Podgorica The Tender Commission announced the initiation of a public tender process to sell 85.99% of the capital of “Pobjeda” A.D. Podgorica, expressed through a total of 3,142,950 shares. Applicants are expected to submit bids in accordance with the regulations and procedures outlined in the tender documentation. The tender deadline has been extended to December 10, 2011.

Amendment to the Tender for HTP “ULCINJSKA RIVIJERA” AD, Ulcinj The Privatization and Capital Investment Council announced an amendment to the public invitation to participate in the tender for the sale of 63.5273% of the capital of the Company HTP “ULCINJSKA RIVIJERA” AD, Ulcinj, Montenegro, expressed through 968,402 shares and a long term lease of 90 years. The lease refers to a plot of land where hotels and other HTP Ulcinjska Rivijera AD company buildings are located, along with a further plot of land that is expected to be used for the construction of tourist and other miscellaneous facilities. The amendment relates to the deadline for the submission of bids and says the following, “The bid for the tender must be submitted by 4 pm on the 4th November, 2011, at the latest.”

Tender for the Long-Term Lease of the Barracks Site, "Orjenski Battalion" in Kumbor The Tender Commission for the valuation of former military property announced a public invitation for investors to participate in an international public tender for the provision of a long-term lease at the barracks site "Orjenski Battalion" in Kumbor. Bids must be delivered to the aforementioned address no later than 1600 (local time) on the 14th December, 2011. Bids will be opened on the 15th December, 2011, starting at 1500 in the Ministry of Defense.

Tender for the Construction of Hydro Power Plants on the Morača Failed The tender for the construction of hydro power plants on the Morača River was not successful as none of the qualified bidders submitted an offer. After more than a year of waiting to establish qualifying bids for the construction of four hydropower plants, only the consortium of A2A, EPCG and Italian Enel remained in April 2011. The Montenegrin government once again extended the deadline for the submission of bids to the fall of 2011 at the request of the Italian company. Some economists highlighted the fact that the power plants could provide a significant threat to untouched natural resources.