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Parliament Adopts Tara Resolution
would flood part of the Tara River canyon, the deepest and longest canyon in Europe . non-governmental organizations and signed by 10,000 people. Parliament's vote was not binding, but puts added pressure on the government. "This is a great victory for Montenegro 's environmental conscience. The river Tara has won freedom for ever," said Sinisa Stevovic of the NGO which started the petition.
They fear a dam to be built in neighbouring Bosnia would turn the rapid Tara waters loved by rafters into "a swamp". The Tara river canyon, part of the Durmitor National Park , features one of the deepest gorges in Europe , swathed in dense pine forests and lined with deep, clear lakes. It is one of Montenegro 's main tourist attractions. Parliament was debating a declaration on protection of the site, launched by a non-government organisation. More than one hundred activists gathered outside, distributing Tara calendars with the words "Tara, the tears of Europe " written on them. The declaration was likely to be backed by the opposition parties and a junior coalition partner of Prime Minister Milo Djukanovic's Democratic Party of Socialists (DPS). Djukanovic said that even if adopted, the declaration was not binding. He said the public was reacting emotionally and without the necessary facts. "We do not need emotions but reason. We should protect our environmental heritage but we should not block future generations from building energy facilities," Djukanovic said. Tara defenders said their concern was not purely emotional. "The citizens did not sign the declaration on a whim, when we lose Tara we lose something we will never get back," said Sinisa Stevovic, one of the project's opponents. The dam would be built on the River Drina in the Serb half of neighbouring Bosnia and flood about 12 km of the Tara canyon. The Montenegrin government has said that would provide enough power to cut the republic's energy deficit by one third. The Bosnian Serb government said its power company had spent $26 million in a feasibility study for the $480 million project but financing was still uncertain and an environmental report was also pending. Djukanovic said the Montenegrin government was struggling to overcome a growing power shortage. He said power imports this year cost the tiny republic of 650,000 people some 50 million euros ($65.20 million). A government spokesman said Montenegro, a self-declared "environmental state", would base its decision on the opinion of the U.N. Educational, Scientific and Cultural Organisation (UNESCO) who were called to assess the plan. "The government has clearly said it would build nothing if the UNESCO stand is negative," he said. Bosnia has also said that approving the project hinges on its environmental impact. (additional reporting by Daria Sito-Sucic in Sarajevo)
From the report of the International crisis group Djukanovic is facing the first ever real challenge to his power in Montenegro . This is caused by tremendous negative public reaction to his government's decision to cooperate with the RS government in building a hydroelectric dam on the scenic Tara river , whose canyon is on the UNESCO heritage list. The canyon -- the second deepest in the world after the Grand Canyon -- is considered an ecological treasure. The public has responded across party lines in its opposition to the dam, and the DPS is isolated politically in the parliament. If any issue can bring down Djukanovic, this will be it. Yet Djukanovic may find it difficult to back down, as he enjoys support from two powerful financiers, Vuk Hamovic and Vojin Lazarovic, who have essentially monopolised the electricity resale market in the Balkans. Both men favour the dam, and both stand to earn enormous profits from its construction and from electricity resale. At present both Hamovic and Lazarovic also appear to be financing the DSS. Should Djukanovic fail to back down, his government might face a vote of no confidence in the parliament, which it would certainly lose. Should he back down, he faces retaliation from the two electricity magnates, both of whose support he depends on. Either way he faces a lose-lose scenario. Djukanovic is further threatened by the electricity issue on another front. In order to operate profitably, the Podgorica aluminum plant ( KAP ) must purchase electricity at below market costs. Should Montenegro's Electric distribution company (EPCG) raise prices to market levels, KAP would be forced to lay of possibly more than a thousand workers, and even then might have difficulty being profitable. The Montenegrin government is under strong and ever-increasing pressure from the Word Bank, IMF, EU, and EBRD to raise electricity prices for KAP to market levels. These organizations appear to be moving closer to restricting support to Montenegro , should the government fail to raise electricity prices. If this happens a series of schemes crucial to Djukanovic's patronage network could unravel. These include any arrangements he may have to dispose of the profits made on reselling electricity to foreign countries. It could also damage any schemes connected to disposing of the profits accrued from selling subsidized aluminum. In other words, if Djukanovic succumbs to international pressure and raises prices, it could lead to the collapse of a house of cards and seriously damage his patronage network, costing him and his party political support.
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