Montenegro awarded a 30-year concession to its largest shipyard Jadransko Brodogradiliste Bijela to operate the Adriatic port of Bijela, local media said. Transport Minister Andrija Lompar said most of the potential strategic partners for the shipyard’s Business considered the usual port concession term of 11 years too short for a return on investment, which was one of the main reasons why the shipyard could not find a strategic buyer, TV and radio broadcaster RTCG reported on Friday when the contract was signed.
The government, which still controls a majority stake in the company, made several unsuccessful attempts to privatize it in the past years. Lompar said the concession fee will consist of a fixed and a variable rate. The fixed rate of 36,000 euro ($50,000) yearly, which was also part of the earlier concession contracts, will not change within the first 21 years of the new concession. The variable rate will be equal to 5.0% of the shipyard’s profit if the profit is below 5.0 million euro. It will drop to 3.0% if the profit is higher than 5.0 million, Lompar said.
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