Port of Bar Pre-privatisation

The EBRD is considering providing a €8.5 million sovereign loan to the Republic of Montenegro to finance priority capital expenditure of the AD Container Terminal and General Cargo Operator (the “Company”) at the Port of Bar. The proceeds of the loan will be used to purchase cranes and cargo handling equipment and to and to support the Company’s voluntary redundancy programme. The Company is majority state-owned and the proposed investments will be made with a view to facilitating the Company’s privatisation.

Supporting the privatisation process of the container and general cargo operator would enhance the overall competitive advantage of the Port of Bar and increase its efficiency, thus allowing the Port to: a) fulfil its strategic role for the country; b) ensure its long-term viability and financial self-sustainability; and c) attract new business for the country.  Having a strategic private investor operating the key terminal facilities at the Port would also foster competition and create value via enhanced transparency and increased efficiency in both operational and financial performance of the Port as a whole.

news source: EBRD link: article