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Regularisation of informal structures - opportunity for constructors


Law on regularisation of informal structures, adopted on 30th July 2016, will be implemented as of 1st March 2017. The project regarding legalization and regularisation of these structures will start up the economy, especially this sector, it was said in the meeting of the Construction Industry Association Board of the Chamber of Economy of Montenegro (CEM).       

It is estimated that there are 100.000 of these structures in Montenegro, but only 40.000 have been registered in the cadastre. Most of them are in Podgorica. The Government of Montenegro adopted Action Plan of transforming informal structures into formal ones by 2018. The owners of informal structures should start the legalization process nine months following the implementation of the law and use the benefits.

- The owners of informal structures must fix up the façade and improve the environment, while municipalities will be in charge of roads and overall infrastructure. Since the aim of the project is to make these activities affordable to the owners of informal structures, it is necessary to reach the agreement with the economy on reasonable prices, says the representative of the Ministry of Sustainable Development and Tourism Mr. Marko Canovic.

He has urged domestic constructors to prepare for this activity and consider the models of realization which will be more favourable than of the competition abroad.  According to him, the ultimate goal of this demanding project is putting things into order, while revenues expected from the utilities are hundreds of millions EUR.

About five percent of structures will have to be removed since they do not fit into the plans, or fail to meet seismic and static standards. Head of the Department for General, Legal and Financial Affairs of the CEM Mr. Aleksandar Mitrovic says that the Law would be subject to the interpretation of experts in order to determine the time when informal structures were constructed, and whether fall under its implementation.

The Board Secretary Mr. Balsa Rakcevic believes that the forthcoming regularization provides an opportunity for the CEM to organize round tables where entrepreneurs would agree the best modalities of participation in the project.

Proposal for the 2017 Activity Program was presented at the meeting as well as information on business operation in this sector for six months of this year. Positive results in the construction industry recorded last year have continued in the beginning of this year.