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Public-Private Partnerships in Montenegro

Accountability, transparency and efficiency

Although the cooperation between the public and the private sector in developing infrastructural sites dates back to the eighteenth century, it has reached its global expansion and popularisation only in the last decade of the previous century. The intense interactive link between the technically more developed private sector and the public authorities is largely determined by the lack of funds for capital investment in state budgets.

Public-private partnerships (PPP) in Montenegro are increasingly used as a mechanism for covering the budget deficit. Moreover, the government has opted to intensify the use of this model in the privatisation process, thus ‘opening’ all the sectors to PPP. However, as PPP is still in its developmental stage in Montenegro, the projects that have been completed through public-private partnerships do not mirror the positive examples from other European countries. Additionally, although the legislative framework of PPP has been enhanced by the adoption of the 2009 Law on concessions, it is still not fully harmonised with the EU’s directives regulating this area. The lack of harmonisation of legislative acts is most obvious in terms of the imprecise definition of concessions for public works. By the same token, the definitions of limited procedure and competitive dialogue have not been adequately transposed from the EU’s directives.

Despite the relatively high number of PPPs that were realised in Montenegro, the access to information about the contracts concluded is extremely difficult. Thus, there is an obvious need for the establishment of a central register that would contain all the PPP contracts concluded so far. In tandem with the limited transparency of the entire process, there is also a lack of democratic control. The public has no access to the annual payment schemes for PPP projects, and the financial reports of concluded projects are unavailable. Delays in the work of the authority specialised in concessions – the Concessions Commission – is also manifest.

The implementation of PPP has significantly been burdened by the violation of legislative procedures and the preferential treatment of certain private companies, which contributes to the participation of different parties to the tender procedure on an unequal footing. The failure of certain tenders and the problems that have emerged with certain private partners confirm the premature selection of partners and the poor risk assessment of such contracts. Very often, the partners that were preferentially treated during the bidding impose contract conditions, which are accepted and implemented even when they manifestly violate laws. In addition, the details of certain PPP contracts assume the development of infrastructural sites on the locations that are not included in the Spatial Plans.

Montenegro hardly ever relies on the experience of other countries, while failing to participate to the South East European Public Private Partnership Network. The activities of this association should lead to common initiative, so that some common projects could be financed through the EU’s special funds in the future.

At the local level, there is an obvious confusion in the distribution of competences for PPP in Montenegro. In some municipalities there are positions of ‘exclusive negotiators’ with foreign investors.

There is a growing interest in all Montenegrin municipalities for projects modelled after PPP. However, there are many municipalities where PPP has not been implemented so far.

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Only DPS is content

Stevo Muk claims the parliamentary oversight of the security sector to be weak

Podgorica – In carrying out the control and oversight of the security sector, results of the Parliament, its Committee for Security and Defense, are still weak, although there is some progress, states President of Institute Alternative’s Managing Board Stevo Muk.

“While heads of the defense and security institutions do appear before the Committee, submit certain reports and answer questions of the Committee members, it seems that only the representatives of the DPS are content. No one else is convinced that the work of these institutions takes place in accordance with the law”, said Muk for Vijesti.

Commenting on claims that a lack of political will is the reason for inadequate parliamentary oversight of the security sector, Muk said that such thing was obvious. The authorities, in his opinion, do not want to change the legal framework or the practice, while the opposition does not believe that changing the legal framework could result in change of the practice.

“I believe that the role of SDP is very important, because it can provide the opposition with a required majority for changes in this area,” said Muk.

The NATO integration process should be used to achieve more progress in that area, since it is an integral part of the reforms that must achieved, he added.

“It is known that the Montenegrin political ‘will’ is first created through tenacious demands of the international community. Therefore, this process is no exception,” said Muk, stating that a comprehensive contribution of the media and NGOs is required as well.

Commenting on the effectiveness of the Committee for Security and Defense in the exercise of its constitutional jurisdictions – democratic and civilian control of the security sector – Muk pointed to the fact that the types of information that are presented to this body are not clearly defined, so that its work depends on what the authorities decide to offer as information.

“Still, the Committee does not use the possibility of demanding special reports in order to get the information missing in the basic reports”, added Muk.

Muk said that an effective oversight of the security sector needs to focus on system issues, on the use of already legally granted possibilities, and greater use of public. Systemic issues include, e.g. defining the responsibilities of the Parliament to consider and adopt the conclusions of the Committee in plenary sessions, require statements and feedback from the Government, etc.

“If we remember the situation with the conclusions concerning Operation Balkan Warrior, we will see that further communication between the Parliament and the Government were blocked because of the fact that further proceeding of the Committee’s conclusions is not legally defined”, states Muk. He adds that, according to the findings of Institute Alternative, the Parliamentary plenum has never adopted any conclusion of the Committee.

“The President and the Collegium of the Parliament will need to address this issue,” he adds.

Not everything ANB does is confidential

Looking at the recent session of the Committee for Security and Defence, which was closed to the public and dealt with the work of the National Security Agency’s (ANB) report for 2009, Muk says there no reason for keeping the most of that report out of public reach.

This, in his opinion, includes the disclosure of general information, evaluations and assessments, without specific data on persons, current events and details of operational nature, which should be kept confidential because of nature of ANB’s work.

Muk believes that the public should be familiar with the key threats to national security, which is the practice of relevant security services. He also suggests that the public should be informed about the number of prosecuted cases in which the data collected by the ANB has helped in investigating criminal offenses related to organized crime and corruption. In this regard, an information about implemented secret surveillance measures and their results would be especially important.

Muk claims that it is in the public interest to have information about the work of the ANB’s Inspector General available. This is particularly important in the context of earlier allegations about political and economic activities of individual officers of ANB, and their connections with individuals marked as ‘interesting’ in terms of security affaires.

Since ANB has earlier made parts of its annual reports available through requests for free access to information, there is no reason to make them publicly available immediately after the session of the Parliamentary Committee when the full report will be presented in secret, states Muk

“A significant step forward in public relations and building confidence in the work of ANB would be a press conference at which the Head of ANB would present those parts of ANB’s annual report for which there cannot be justification for keeping them secret”, claims Muk.

What about the Law on Parliamentary Oversight?

Commenting on the persistent delay in the adoption of the Law on Parliamentary Oversight of the Security Sector, despite the fact that in principle the text of the act is completed and that the Committee has committed to finalizing the task in numerous occasions, Muk said that the parliamentary majority apparently does not consider that adopting this law is in their interest.

This, in his opinion, may be evidence in support of claims that the defense and security sector have many negative sides that could not stand the control by the Parliament and the public.

“There is no justification for an almost two-year delay in adopting this act”, said Muk.

Statement of Institute Alternative’s President of the Managing Board to the daily newspaper Vijesti, 08/08/2010

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Public administration reform

The Government of Montenegro adopted Draft Agenda for Public Administration Reform in Montenegro for the period 2010-2014, entitled “Aurum”, in the end of June. It was put to public hearing and it is expected that the final text of the Strategy, together with the Action Plan for its implementation will be adopted by the end of September. These documents should provide a continuation of the process, which was begun by adopting the Administrative Reform Strategy for the period 2002-2009.

It is positive that the process of drafting a new strategy has been intensified since the beginning of the year and that relevant organizations and institutions, both domestic and international, have been included in process. Particularly important is the goal presented in the Draft, to adopt the laws on Ministries and other administrative bodies, civil service and public agencies. This is in accordance with the new Constitution of Montenegro, which provided that the Assembly of Montenegro is in charge of regulating the state administration system. Further, the reforms envisaged in the field of inspection service control are one of the straightforward places in the Draft. The problems are clearly defined, and measures are appropriate and specific. We should also point out the positive intention to “form a single body for inspection control”. The need for considering this option was indicated in the earlier studies of Institute Alternative.

Although the Draft strategy represents a solid basis for further work, it is obvious that its authors did not possess a serious analysis of the results of implementing the earlier Strategy. This fact is not the result of their negligence, but rather the result of the general condition of the public administration and its weak analytical capacities. In the preparation of analysis and information, state administration bodies almost exclusively outline positive aspects of the process and its products, rather than issues, failures, their causes and consequences. Although participation and orientation of public administration toward citizens and legal entities has been promoted as a principle, the approach in preparing the analysis show that the possibility of using feedback, information, opinions and attitudes obtained from the users of services themselves has not been used. For example, the substantiality and the types of information presented in the Analysis of implementing public administration reform (2007) and Information on the implementation of public administration reform (2009) are such that they can not serve as a good basis for work on a new strategy. In these documents, there is no clear and precise data on realized, partially realized and unrealized measures from the earlier strategy and action plan, nor on the achievement of goals and objectives of the earlier strategy.

Thus, although the first of eight key goals of administrative reform was defined as “substantial transfer of powers to the lower levels, achieving a higher degree of flexibility of the entire administrative system”, the Draft did not give any answers to fundamental questions of content and dynamics of these reforms. The strategy requires a clearer definition in this section.

Among other things, the Draft anticipates rationalization of the number of employees in public administration as one of the major tasks, but fails to sufficiently explain the principles on which this tedious task will rest, as well as responsibility for implementation of this process. In a situation where there are no clear criteria for admission and promotion of civil servants, it is questionable whether and to what extent the process of reducing the number of employees can be based on objective criteria and requirements.

The Draft notes the need for “further development of the system of disciplinary responsibility”. It explains that “effective public administration implies greater individual responsibility of officials and employees in achieving the set goals,” and that the goal set forth is “accountability of public administration to other administrative, legislative or judicial authority, which is aimed at ensuring respect for the rule of law.” However, specific problems in this field are not identified, nor have strategic directions for their solution been defined.

If the Government wants the public administration reform strategy to be applicable and functional, then the key problems in current functioning of public administration must be clearly identified and strategic goals and objectives defined. Only on the basis of such a strategy, it is possible to prepare high-quality action plan, which will contain precise measures, timelines and responsibilities. Mutual relations (hierarchy, coherence, coordination and monitoring) of this Strategy and other Government’s strategic documents dealing with issues of importance to public administration should be resolved within the framework of this Strategy. Also, it is important that the strategy fully recognizes and correctly anticipated the needs of public administration in the process of European integration. That is why it is important to harmonize the Strategy and the National Plan for Integration of Montenegro into the European Union (NPI). Of importance to the success of the Strategy is also that the division of political coordination, operational activities and advisory roles is functional and a subject of full consensus in the Government. Last but not least, the Government should determine the amount of public funds for the implementation of the Strategy and thus further confirm the commitment to this process. Dynamics of the reform should not depend on the success of raising funds from foreign sources.

Stevo Muk
President of the Managing Board

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ANB has an obligation towards the public

Law on National Security Agency (ANB) provides that the session of the Parliamentary Committee that will discuss its annual report for 2009 is completely closed for public.

However, there is no valid reason that most of the aforementioned report on the work of ANB is made available to the public. This includes disclosure of information in principle, evaluations and opinions. No information on specific individuals, actions or details of operational nature is needed to be disclosed, since this data must remain secret so it does not hamper the work of ANB.

The public should, however, be informed about the key threats to national security, which is the practice of relevant security services.

Also, the public should be familiar with the number of prosecuted cases in which the data collected by the ANB helped in investigating criminal offenses related to organized crime and corruption. In this regard, it is especially important to reveal information about the secret surveillance measures implemented and their results. It is in the public interest to have information about the work of the ANB Inspector General available. This is particularly important in the context of earlier allegations about political and economic activities of individual officers of ANB, and their connections with individuals marked as ‘interesting’ in terms of security affaires.

Since ANB has earlier made parts of its annual reports available through requests for free access to information, there is no reason to make them publicly available immediately after the session of the Parliamentary Committee when the full report will be presented in secret.

A significant step forward in public relations and building confidence in the work of ANB would be a press conference at which the Head of ANB would present those parts of ANB’s annual report for which there cannot be justification for keeping them secret.

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Capacity building of the Parliamentary service

Capacity building of the Parliamentary service should be the subject of a long-term plan, grounded on real needs of the committees and parliamentarians. The analysis of Institute Alternative published in January this year, concludes that, although there is a will to increase the number of employees in the Parliamentary service, personnel policies and deployment of new employees do not equally meet the needs of all parties and committees.

Larger number of officers directly responsible for providing services to members of the committees on certain topics is essential for greater focus on parliamentary debate in the committees. This is particularly important in relation to the exercise of the Parliament’s control function.

Parliamentary service should be freed of personnel with inadequate capacities for meeting obligations in the process of EU integration. However, this has to be done in a planned and gradual manner.

Hiring new employees must be based on objective criteria of competence and knowledge, freed from the party affiliation criterion. There are serious objections that the hitherto admission of new employees has been based on biased, political criteria. This seriously impairs the long-term prospects of the Parliament building a professional and expert service.

Additionally, Parliamentary service cannot be predominantly based on trainees. It should develop mechanisms to attract experienced and qualified personnel from other institutions and sectors. In this sense, the Parliament has no excuse for the absence of funds for these needs, because it has the final say in adopting the state budget.

The possibility of committees to hire paid staff (secretary and a number of consultants), from its own party structures should not be a substitute for the professional Parliamentary service.

The whole human resource management should be placed in the jurisdiction of the Parliament. Full participation of all parties in monitoring of legality and objectivity of the process should be enabled.

In the process of establishing a more numerous, competent and more professional Parliamentary service, possibilities of cooperation with civil society organisations independent experts should be significantly more utilized.

The Assessment of Legal Framework and Practice in the Implementation of Certain Control Mechanisms of the Parliament of Montenegro

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Go to the polling stations and vote

The elections are an opportunity for us to express our own stance, every citizen’s vote counts, to vote means to show a responsible attitude toward the community in which we live.

Elections are important

I do not consider every single elections to be “historic”, which is what politicians often like to exclaim. Through years of activities in the nongovernmental sector, I have tried to increase the number of those people who are citizens always, and not just on the day of elections. However, I think that the elections are important or perhaps even most important political process, and advocate for the increased participation of citizens in the elections. Importance of local elections is growing, bearing in mind the increased commitments to decentralize power in the country and move to the level of local government. Local government resolves most of the practical, existential problems of citizens, and citizens’ participation in elections is important. By electing deputies in the local assembly, you are influencing the election of the President of the municipality, the secretary of the municipal secretariat, members of management boards and directors of public companies and institutions.

Issues decided upon through local elections

The municipality adopts plans and development programs; building land editing programs; spatial and urban plans; budget and the final calculation of the annual budget; capital improvements plan and investment policy, program of development and protection of the environmental. Municipalities regulate and provide conditions for the conduct and development of utility services; conditions for entrepreneurship development; performing the duties of planning, utilization and protection of building land; use of office space; conditions for the preservation and protection of natural values, social protection, which applies to home care and house care for the elderly and disabled persons, addressing housing issues for those in social need and additional forms of social protection, child protection, which refers to the recreation of children, accommodation, meals and other additional forms of child protection, the conditions for conservation, utilization, management and improvement of areas with natural healing properties, public transport of passengers in local traffic, establishing operations, billing and control of local revenues; relations in the fields of housing, creates conditions for the maintenance and protection of housing and protecting the rights of the owners; terms of construction and use of facilities, requirements for informing local population, the conditions for protection against natural disasters, fires, explosions, accidents and other accidents and extraordinary events and creates conditions for their elimination.

The municipality regulates the conditions for the promotion of sport and physical education, recreation of children, adolescents and adults, construction and building physical culture and sports objects, development of inter-municipality cooperation, stances in connection with the construction and setting up temporary and other facilities; conditions for the protection of monuments and memorials of local significance; oversight and noise control; conditions for the development of libraries and archival services of local importance; conditions for the development of publishing activity, the conditions for linear navigation in its territory, working hours and working conditions for facilities that provide services to citizens; conditions for taxi transport; conditions for the realization of public exhibitions of local significance.

Your vote is your responsibility

When you go to the polling place, you are left alone, without someone being able to affect or know how you voted. You can encircle one of the offered options, or cross away the entire ballot. I believe it is better to trust the best or the least bad option, than to throw away your ballot.

By choosing a specific option, you are taking responsibility for the work of the chosen preference, both as government and as opposition.

The choice of a particular candidates in elections is a proof that you are able to follow political developments, assess the quality of the listed parties and candidates, and support those who are closest to your views, beliefs, values.

Don’t sell your vote

I know that the practice of buying votes is common in Montenegro. Among other things, this practice is a result of a number of people realizing that they can gain more by selling their vote than through actual voting. Vote-traders often to the citizens who are in social need. Such practices are reducing the elections to the opportunity to acquire a one-off gain. Such profit does not last long. I call upon you not to sell your vote, your identity card, your rights and your dignity. Be proud, save your voting right. One day you’ll be proud for acting in such a manner.

No regrets after the elections

For those of you who forget, do not have the will or the strength to go to the polls, cannot decide your minds until the closing of the polls, sell your vote or have already found some other reason not to vote – there remains a second chance in two, three or four years. Then, new elections will take place along with a new opportunity to use your right.

Until then, with more or less right, you will be able to grumble and complain about the expensive parking fees, poor urban traffic, less green space, inaccessibility of local institutions to persons with disabilities, the slowness of local services, lack of sport facilities designed for citizens, corruption in local government, a number of levies imposed to citizens and enterprises, irrational spending of taxpayers’ money and other local issues.

Stevo Muk
President of the Managing Board