director - Ministarstvo finansija

Relations with World Bank
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006
tor institutions. In December 2004, the first
tranche of the SAC II credit funds was disbursed
by the IDA to Montenegro.
Disbursement of the second tranche of
the SAC II has been postponed until the end
of the first half of 2006, when the only one
unfulfilled condition required for the realization
of the SAC II second tranche is expected
to be met: signing of an agreement on electric
energy supply between new owner of the
Aluminum Plant -Solomon Enterprise Limited
and Montenegrin Electric Power Company
Inc, Nikšić.
WB Country Assistance Strategy for
period 2005-2007
World Bank adopted the Country Assistance
Strategy for Serbia and Montenegro for
FY 2005-2007 with the aim of supporting the
EU Stabilization and Association Process as
well as the Poverty Reduction Strategy process.
The Country Assistance Strategy (CAS) is
aimed at promoting economic growth and
development by means of: creating a smaller,
more sustainable and efficient public sector;
creating larger and more dynamic private
sector; reducing the poverty level and improving
social security and access to public services.
Under the World Bank CAS for Montenegro,
the following funds are envisaged for
2006:
" Level "base case": for development of
tourism and agriculture, the credit amounting
USD 12 million (6 million IDA, 6 million
IBRD) and for the Regional Energy Project,
the credit amounting USD 3 million (IDA)
" Level "high case": for development of
tourism and agriculture, the credit amounting
USD 15 million (6 million IDA, 9 million
IBRD) and for the Regional Energy Project
World Bank
USD 3 million (IDA)
Identified areas that currently represent
obstacle for the development of Montenegro,
where the World Bank may offer its assistance
either by providing credit funds or expert
assistance for related reforms are as follows:
- Infrastructure - waterworks and roads,
representing obstacle for tourism development,
- Regional energy market as the World
Bank project
- Pension system and further reforms -
already launched using existing credit
- Healthcare system and further reforms
- already launched using existing credit
- Reform of judiciary
In the negotiations with the World Bank
representatives, possibility for the Central
Bank of Montenegro to become certified to
conduct transactions with the World Bank is
under consideration. In addition to promoting
the very institution, the transaction
costs would be significantly cut, given the reduced
number of intermediaries. The WB representatives
were advised to consider possibility
of opening a WB Office in Montenegro
(in addition to the existing Office in Belgrade)
for the purpose of establishing a higher
quality co-operation and exchange of information
with the World Bank. For the time
being, the only representative of the World
Bank works with the Central Bank of Montenegro.
Sector for Economy, Finance,
International Co-operation
and Games of Chance System
JADRANKA RADUNOVIĆ, Coordinator,
International Co-operation Department
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