Geographic setting of KombinatAluminijuma Podgorica

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2 Geographic setting of KombinatAluminijuma Podgorica Location: Southeastern Europe, Montenegro Montenegro is bordered by Croatia and Bosnia & Herzegovina to the west, by Serbia and Kosovo to the northwest, Albania to the east and by Italy across the Adriatic sea. Airports: Podgorica,Tivat Ports: Bar, Tivat, Kotor and Zelenika KAP is located in the business zone 10 km southern from Podgorica, 70 km away from bauxite mines in Nikšić, 3 km away from the airport Golubovci and 57 km away from the Port of Bar, in which its installations and warehouses for storing alumina and heavy fuel-oil are situated. KAP owns its own industrial spur connected to the Railway Infrastructure of Montenegro, including Bauxite Mines Nikšić and Port of Bar Total land area on which KAP is located and which is owned by the company UNIPROM doo Nikšićequals m².

3 Qualified labor forceavailable at competitive prices Business registration in the Central Registry of Companies (CRPS) take 4 business days, minimum share capital 1 Corporate profit tax :9% Personal income tax :13% i 9% Real property transfer tax is proportional and makes 3% of the tax base VAT19% and 7% VAT return Benefits from conducting business activities within the business zone of KAP Property tax is0.1 % -1% of the of the immovable property s market value State and local tax and administrative incetivesfor business operation within the business zone Financial incentives to encourage foreign investments No limit in terms of invested capital -foreign investors are allowed to invest in any branch of industry and freely transfer financial and other resources, including profits and dividends Montenegro is a full member of WTO, signatory to free trade agreements CEFTAand EFTA, while free trade agreements with the EU, Russia, Turkey and Ukraine are also applied

4 Financial incentives for direct investments Decree on fostering direct investment of the Government of Montenegro that became effective , under which funds for investment projects are allocated based on international public announcement Funds to promote investments Total funds: to per new job Minimum investment value: Minimum 20 new jobs within three years, i.e. within five years for large companies as of the day of concluding the agreement on usage of funds. Exeption for capital investment projects 10 mil euro investment and 50 new jobs that can be granted funds for promotion of investments equaling 17% of total value of investment project without prior implementation of the evaluation procedure, pursuant to the Decree.

5 State incentive measures Incentives for business activities within the business zone of KAP Exemption from compulsory social insurance contributions on wages for employing certain categories of unemployed persons (contribution rate for pension and disability insurance of 5.5%, contribution rate for health insurance of 3.8%, contribution rate for unemployment insurance of 0.5%, contribution rate for Labor Fund of 0.2%); Exemption from personal income tax; Exemption from paying allowances for pollution protection for the 30-year period, which implies provision of permits for Co2 emissions and other greenhouse gases, with no compensation Reduction or exemption from profit tax;

6 Incentives for business activities within the business zone of KAP Local incentive measures Partial exemption from fees for provision of utility infrastructure to construction land by 70%; Exemption from fees for use of road area for the periodof 10 years Exemption from the personal income surtax for the period of 10years; Exemption from immovable property tax for the period of 10 years; Exemption from utility charges for services of transportation andstorage of utilities waste; Possibility of defining a favorable public - private partnership model; Possibility to obtain construction permit within 30 days from submittion of complete documentation together with request of investor