Company “Crnagoraput” AD Podgorica deals with regular and investment maintenance of highways and regional roads in Montenegro. It was founded in 1962 under the name “Company for Roads”, but in the mid-nineties of the last century it was transformed into a joint stock company. In 2005, “Crnagoraput” had 911 employees, but only a year later it was privatized by the Austrian company “Strabag AG”, which laid most of employees in the following several years and led company into huge debts. The Study shows another example of poor privatization in Montenegro.
Company “Crnagoraput” AD Podgorica found itself in privatization plans for 2000 and 2001, when it was determined that it would be sold through a so-called batch method of sale, which represents a combination of the sale of shares in the tender and the recapitalization of the company. Exactly 30.01 percent of the state capital, estimated at 28.8 million of Deutsche marks, was planned for sale.
Privatization plan for 2003 envisaged privatization of the company through finding a strategic partner, for a total of 30.23 percent of the capital, which was estimated at €14.7 million. The privatization plan for 2004 marked “Crnagoraput” as an enterprise important for development of Podgorica municipality and the state, and that should be on the priority list for finding strategic partners due to the number of employees, structure of payabilites and claims. Through the privatization plan for 2006, 30.92 percent of the state capital of the “Crnagoraput” was designed for sale by public tender, with recapitalization. The main goals were creating conditions for efficient business of “Crnagoraput”, increasing competitiveness and investing in its modernization.
Complete study download HERE (PDF)
