Strategic **Defence** ![0_image_0.png](0_image_0.png) ![0_image_1.png](0_image_1.png) Review of Montenegro July *2013* MONTENEGRO ![1_image_0.png](1_image_0.png) ![1_image_1.png](1_image_1.png) MINISTRY OF DEFENCE STRATEGIC DEFENCE REVIEW OF MONTENEGRO Podgorica, July 2013 It is our pleasure to have the chance to present to you the ![2_image_0.png](2_image_0.png) new Strategic Defence Review, which defines the modalities and pace of reforms in our defence system and identifies directions for further development of the Ministry of Defence and the Armed Forces of Montenegro. This document reflects the vision of the goals and values we aspire to, which need to be enacted and developed within the framework of structuring the defence sector, in order to be able to adequately respond to the ever more complex and demanding modern security and defence challenges and meet the expectations of the citizens of Montenegro, as well as our international partners and future allies. Given the dynamics of contemporary processes that strongly affect our security environment, the Strategic Defence Review presents an important document for all those who are participating in the process of developing the Ministry of Defence and the Armed Forces of Montenegro, as well as the citizens and the economy of Montenegro. The ever more changing security environment requires that we clearly define our goals and priorities. Only with this approach to defence reform will the efforts being made be visible and purposeful. Flexibility must be allowed in the work of the members of the Ministry of Defence and the Armed Forces of Montenegro, in line with the new global trends, security challenges of the 21st century and the need to manage the risks associated with modern lifestyle. Modern security threats call for a new approach to build our capacities and enhance our capabilities. Therefore, a new approach to governance and management in the field of defence and security is needed. In the spirit of libertarian Montenegrin tradition we have to find the smartest way to make the life of every citizen and well-meaning guest safe, because only a safe citizen can contribute to the overall security of the state and the broader international community. Despite the fact that significant and measurable progress has been made in the development of the defence capabilities in the previous period, it is clear that this process is conditioned by constant technological developments, changes in the security environment on a global scale and the economic strength of the state. That is why we have recognized this moment as the moment when it is necessary to react and prepare a document that would be a realistic platform for further development and progress in this sector. Expecting that the processes of European and Euro-Atlantic integrations of Montenegro will be more dynamic and demanding in the future, we have decided to draft the new Strategic Defence Review with the aim of resolutely directing our defence sector towards the system of collective security, supported by close and sincere cooperation with our partners, who are providing immense contribution in all the stages of our journey towards achieving the strategic objectives proclaimed. We believe that the efforts we invest will be recognized as such through our full NATO and EU membership. The Ministry of Defence and the Armed Forces of Montenegro have been recognized as a reliable partner in Montenegro and also in the wider international community. This strategic document has been created with the aim to be the best possible way to prepare the defence sector for the challenges that lie ahead, by defining the level of the existing capacities as well as ways for their improvement and development. Proud of our past and the right decisions which many generations made before us, I am convinced that we will find the proper way to respond to contemporary challenges and threats to security and continue to contribute to the progress of Montenegro, with readiness to participate in international missions, as far as our capacities allow to do so, in the areas where our knowledge, experience and commitment can contribute to peace in the world. ![3_image_0.png](3_image_0.png) ![3_image_1.png](3_image_1.png) # Contents | 1. | INTRODUCTION . | |---------------------------------------|----------------------------------------------------------------------------------------| | 2. | STRATEGIC ENVIRONMENT | | 2.1. | Security environment . | | 2.2. | Defence interests and goals of Montenegro | | 2.3. | Challenges, risks and threats | | 3. | CRITICAL RESOURCES . | | 3.1. | Defence costs | | 3.2. | Weapons and equipment | | 3.3. | Infrastructure . | | 3.4. | Human resources | | 4. | NATIONAL CHALLENGES | | 4.1. | Defence of the national sovereignty | | 4.1.1. | Montenegro's sovereignty on land . | | 4.1.2. | Sovereignty over the airspace of Montenegro | | 4.1.3. | Sovereignty of Montenegro at sea . | | 4.1.4. | Mobility, movement and transportation | | Ministry of Defence | | | 4.2. | | | 4.3. | Material resources | | 4.3.1. | Logistical support . | | 4.3.2. | Solving the problem of surplus military equipment and infrastructure .............. 18 | | ર. | REDEFINING DEFENCE MISSIONS AND TASKS | | 5.1. | Defence missions | | 5.2. | The tasks of the AFMNE | | 6. | LEGAL FRAMEWORK OF THE DEFENCE SYSTEM | | 7. | KEY PRIORITIES OF THE DEFENCE SYSTEM | | 7.1. | Ministry of Defence | | 7.2. | Reorganization of the Armed Forces of Montenegro . | | 7.2.1. | Land forces | | 7.2.2. | Air force | | 7.2.3. | Navy . | | 7.3. | Human resources | | 7.3.1. | Improving human resource management | | 7.3.2. | Improvement of staff education system. | | 7.4. | Material resources . | | 7.4.1. | Logistics support | | 7.4.2. | Weapons and Equipment | | 7.4.3. | Infrastructure . | | 7.5. | Defence expenses . | | KEY CHALLENGES AND RISK ASSESSMENT IN | | | 8. | SDR IMPLEMENTATION | | 9. | CONCLUSION 38 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------| | 10. | LIST OF ACRONYMS 40 | | A-1. HUMAN RESOURCES 42 | | | A-1.1. Human resources management 42 A-1.2. Personnel structure 43 A-1.3. Education and professional training of personnel 43 A-1.4. Situation Analysis 44 A-1.5. Planned Personnel Structure of the Armed Forces of Montenegro 46 | | | A-2. MILITARY INTELLIGENCE 48 | | | A-3. INFORMATION AND COMMUNICATION SYSTEMS 49 | | | A-4. PROJECTION OF FUTURE STRUCTURE OF THE AFMNE 50 | | | A.4-1. Projection of future size of the Armed Forces of Montenegro 50 | | | A-5. DEFENCE COSTS IN RELATION TO LOWER GROWTH OF GDP SCENARIO 51 | | | A-6. PROSPECTIVE LOCATIONS OF THE ARMED FORCES OF MONTENEGRO 53 | | | A-7. MAIN PRIORITIES OF MODERNIZATION 54 | | | A-8. ORGANISATIONAL STRUCTURE OF THE MINISTRY OF DEFENCE 55 | | ## 1. Introduction The need to further analyze the determining factors and base our defence sector on more realistic and sustainable grounds has initiated the drafting of the new Strategic Defence Review of Montenegro. In the process of developing the new strategic document, most efforts have been directed at identifying and supporting the positive features and activities of the defence system, identifying and eliminating the defects and deficiencies in its organization and functioning, as well as defining the main directions for the development, transformation and modernization of the defence system of Montenegro. This document should provide an answer to the key question: "In which direction and in what way should the defence system of Montenegro be further developed?" The process of drafting this document was preceded by months of consultations in which, apart from the representatives and experts of the Ministry of Defence (hereinafter the Ministry) and the Armed Forces of Montenegro (hereinafter the AFMNE), the representatives of other government bodies, non-governmental organizations, academia and other interested subjects had taken part. Simultaneously with the consultations at the national level, the consultations were also conducted with our international partners, especially the representatives of the defence sector from NATO member countries. In accordance with the new challenges, especially in the area of economy and security, by defining the new SRD we have sought to provide a more flexible system able to respond to the national needs and interests on the one hand, and contribute to the collective defence system on the other. The solutions proposed in this document are intended to reduce the difficulties and dilemmas ![6_image_0.png](6_image_0.png) we have been faced with in the course of the reform of the defence system and the AFMNE so far, as well as to create a platform on which new defensive capacities may be built and the existing ones improved. The ultimate goal of this document is to provide a strategic overview and general guidelines for the continuation of the defence sector reform, the drafting of the Long-Term Plan for the Military Development, further reorganization of the Ministry and the Military, as well as creating a basis for the improvement of our defence capacities. Members of the the Armed Forces of Montenegro, June 2006 The first part of the text presents the current security environment of Montenegro and the key resources, among which human resources, defence costs, material resources and infrastructure have been identified as the determining factors. The fact is that the defence costs as anticipated by the Strategic Defence Review adopted in 2010 were based on projections of gross domestic product (GDP) in a time of great economic growth. The crisis wave in the eurozone at the end of 2011 negatively affected the economic strength of Montenegro, which ultimately resulted in a negative impact on the defence spending. The intention in this document is also to present a more realistic projection of the allocation of financial resources for the defence purposes and to adjust other projections that affect the development of the defence system. Secondly, the SRD defines the national defence priorities with special emphasis on the protection of Montenegro's sovereignty, in terms of monitoring, controlling and protecting its land, sea and airspace. The national defence priorities are key areas that will determine the direction and focus which the further development of the defence system should aspire to. On the basis of the experience gained in recent years, the Strategic Defence Review proposes redefining defensive missions of Montenegro. The reason for the redefinition may be found in the fact that Montenegro, as a sovereign state, has the obligation to fulfil the basic state mission which is to protect its sovereignty, territory and independence. Also, an important benchmark for redefining future missions is the development of the defence system capacities that would contribute to improving the security of the state through participation in operations aimed at achieving peace in the world. The key part of the SRD has been dedicated to the reorganization of the Ministry of Defence ![7_image_0.png](7_image_0.png) and the AFMNE. It recommends the direction in which the development should be directed and what kind of structure the Ministry and the AFMNE should assume in order to be effective in the management of processes and programmes. That means finding a model for more efficient management of human and material resources, which will ultimately result in more efficient and cost-effective management of defence costs. The development of relevant military capacities and establishing a system of monitoring the sea and airspace represent the key challenges in the process of ensuring sovereignty over the territory of Montenegro and secure data exchange with partners and allies, in order to improve the security in the country and region. Members of the Armed Forces of Montenegro *in 2013* Certainly, the imperative is to ensure a stable defence budget in the current conditions of the economic crisis, in order to allow for the continuation of the defence system reform, modernization the AFMNE and reaching the required level of interoperability. Therefore, the most important solutions proposed in the SRD are aimed at solving and easing the difficulties, misunderstandings and doubts encountered during the reforms of the defence system and the AFMNE, and at providing a basis for the construction of the defence capacities that will enhance security and stability and thereby contribute to strengthening global peace and stability. ## 2. Strategic Environment For the creation and development of the defence system of Montenegro, it is essential to assess the influence of the strategic environment. With this in mind, we have taken into account the security environment, defence interests and goals, as well as challenges, risks and threats to the security of Montenegro. ## 2.1. Security Environment Changes in global security, which arose after the disappearance of bipolarity, have led to radical changes in approaching and assessing security and defence relations in the world. Montenegro finds that in the present, as well as in the upcoming period, conventional military threats to it are reduced to a minimum and that currently the dominant threats are the new forms of threat, which are primarily non-military in nature. Challenges in the management of the defence and security sectors in the 21st century are interconnected, often via cause and effect relations, and thus cannot be addressed effectively if considered individually. Countries have to modernize their defence and security sectors, not only to preserve their territorial integrity and sovereignty, but also to prevent all types of threats that are transnational in character. Bearing in mind the nature of the new defence and security phenomena, the fight against them may not be conducted at the national level solely. Asymmetric threats, as defined in the National Security Strategy, present a danger for states and their citizens, directly and indirectly, due to increasing interaction on a global scale. Bearing in mind the fact that no state can independently respond to these threats effectively, the international, regional and global political and security organizations such as the UN, NATO, EU, OSCE and others are getting ever more important. This state of security implies the necessity of change in the structure and organization of the national defence systems. In keeping with this reality, Montenegro too has decided to adapt and significantly redefine and reorganize its security and defence system. Global security dynamics and complex relationships among security factors, the geographic position of Montenegro, as well as the regional crisis, certainly have had a significant impact on the security situation in Montenegro. ![9_image_0.png](9_image_0.png) The processes of regional cooperation in the South East Europe and Western Balkans, demilitarization and reduction of military potential are the main indicators of stabilization in the region. This process is emphasised by the European and Euro-Atlantic integration tendencies of the regional countries, having in mind that some of the countries have joined the Euro-Atlantic integration and that the others have shown commitment to the NATO / PfP programme and the EU Stabilisation and Association Agreement. However, the region is still partially burdened by its past events and unresolved problems, which may cause certain forms of instability in the future. International organizations such as the UN, NATO, EU and OSCE are trying to find the most appropriate and effective responses to a wide range of threats that endanger the safety and stability in the world through their security concepts. Their role in this respect is all the greater and more important, which is why their responsibility for the global security is increasing by the day. Bearing in mind that Montenegro is deep into the process of accession and that it has started the negotiations with the EU, it is important to mention the Common Foreign and Security Policy (CFSP) and Common Security and Defence Policy (CSDP) as important achievements of the EU in this sector which have to be taken into account and which are the subject of the negotiations between Montenegro and the EU within the framework of Chapter 31. A significant political and security goal of the European Union is the continuation of stabilizing the Western Balkans, which was affected by the war at the end of the last century. Bearing in mind such a security status in the immediate and wider environment, as well as its demographic and overall economic potential, the optimum security defence model for Montenegro is for it to become part of the collective security system and collective defence. In addition, Montenegro is of the opinion that the political and security situation in the region can best be stabilized and eventually maintained as such through regional cooperation and joint projects, and the integration into the EU and NATO. ## 2.2. Defence Interests And Goals Of Montenegro ![10_Image_0.Png](10_Image_0.Png) By obtaining its independence, Montenegro has regained its function, i.e. sovereignty in the field of defence, which had previously been within the competence of the State Union of Serbia and Montenegro. After the Ministry of Defence had been established, the drafting of legislation and policy documents was started, including the documents such as the Defence Strategy of Montenegro and National Security Strategy, which provide an answer to how to Montenegro should realize its basic defence function, which is defined by the Constitution - the preservation of its independence, territorial integrity and sovereignty. The Armed Forces of Montenegro Additionally, Montenegro is focused on the preservation of its national interests, as defined by the Constitution and based on the principles of the development of democracy, rule of law, market economy, respect for human rights and freedoms, development of multiculturalism, nature conservation and environmental protection, sustainable and balanced development in all its regions, the commitment to cooperate on an equal basis with other nations and states, as well as commitment to European and Euro-Atlantic integrations. ## 2.3. Challenges, Risks And Threats A realistic and objective assessment of risks and threats is of great importance for the development of the defence system of Montenegro. The role of the defence system today has significantly changed compared to the traditional understanding of defence, given the wide range of security risks and threats which are unpredictable, asymmetric and unconventional in nature. Today's safety threats are less directed at the territory of a state and its military facilities, and more at the national infrastructure (embassies, airports, power plants, railways), the civilian population (mass meetings, stadiums etc.) and causing political and economic crises. Instability in some countries and regions, terrorism in all its forms, proliferation of weapons ![11_image_0.png](11_image_0.png) of mass destruction, religious and ethnic disputes, organized crime, illegal migration, computer crime, environmental pollution and climate change, epidemics, poverty, lack of food and drinking water and lack of strategic energy pose threats that no country may solve alone. At the global level, international terrorism has fast become a threat to democratic societies that creates uncertainty through various conventional and unconventional forms and methods. In formation Availability of weapons of mass destruction to non-democratic regimes, various organizations and groups, poses a security threat at the global level. In response to these threats, the whole society has to participate in dealing with them actively and thus stronger cooperation between states is needed. Given that these threats are constantly changing and evolving, and that they are characterized by continuity, unpredictability and dynamism, the security system has to be ready to react to the end of achieving welfare in society, as well as to respond to all the threats that go beyond the capabilities of other state institutions. As permanent and ever more present security risks, various natural and man-made disasters should also be taken into account. Global warming and climate change have introduced a new role for the AFMNE related to assisting civilian institutions during the rescue of people and property within the overall security system. In addition, in times of the expansion of information technology, social networks and virtual computer programmes, it is impossible to ignore the fact that all IT resources may be used against a society and that as such they represent a serious security threat. Such a wide range of threats requires constant adjustment and reform of the defence system, which will allow for building the necessary capacities and infrastructure to meet the interoperability requirements of the collective security and collective defence. ## 3. Critical Resources Achieving the necessary defence and military capacities in order to fulfil the assigned defence missions, requires modernization and acquisition of new weapons and military equipment, maintenance and improvement of the existing infrastructure and personnel training, in accordance with the needs of national defence and integration into NATO and the EU. Accomplishing a truly significant defence capacity will be possible only if adequate funding of the defence system is provided. ## 3.1. Defence Costs The existing structure of the defence costs distribution is unsustainable and does not allow for the development of relevant military capacities and modernization of the armed forces. The defence costs as anticipated by the Strategic Defence Review adopted in 2010 were based ![13_image_0.png](13_image_0.png) on the projections of gross domestic product (GDP) in a time of great economic growth in Montenegro, the projection of achieving the desired structure of the AFMNE, the projection of reaching the relevant military capacities, as well as meeting requirements of providing equipment and modernization. The current cost structure in the defence budget has been carried out in accordance with the Rulebook on Unique Cost Classification of the Budget of the Republic and it includes costs for personnel, as well as operating costs and capital costs. The new wave of the economic crisis in the eurozone which started in 2011 has had a negative impact on the economic performance in Montenegro, which ultimately resulted in a negative impact on the spending for the defence. Figure 1: Distribution of defence costs (blue: projected, red: implemented) After 2010, when the share of the defence budget (Figure 1) accounted for 1.29% of GDP, and 2011, when it stood at 1.12% of GDP, in 2012, after the adopted budget revision (which included the reduction of defence costs by €1.25 million), the planned allocation from the current state budget amounts to €36.4 million or 1.07% of GDP. Figure 2: Distribution of *personnel costs* ![13_image_1.png](13_image_1.png) A certain move forward was made in 2012 when the purposeful use of funds from the sale of arms and military equipment to their full amount1 was approved; these funds are intended for the realization of the Partnership Goals and the continued modernization and upgrading of weapons and military equipment. These proceeds may not be counted upon as part of the defence budget with certainty, due to the uncertainty of their collection. Although positive results were achieved in establishing a standard cost structure within the defence budget between 2006 and 2008, whereby the expenditure on salaries and wages decreased from 80% in the 2005 to 54% in 2008, the situation has significantly deteriorated over the last three years. In 2009, staff expenses amounted to 62%, in 2010 they accounted for 66% of the defence budget, whereas during 2011 and 2012 they increased significantly and reached 72%. The trend of increasing staff expenses in the ![14_image_0.png](14_image_0.png) structure of the defence budget (Figure 2) in recent years (despite a significant reduction in the number of staff members), has partly been due to a decrease in the total budget for the defence, and partly the result of the new expenses related to the benefits to soldiers participating in international operations. However, a significant reduction in military personnel, despite expectations, has not brought about an increased standard for the employees and an increase in modernization funds (Figure 3). Figure 3: Structure of defence costs distribution (remark: **green**- *equipment and modernisation,* red- operational costs, **blue**- *administration)* ## 3.2. Weapons And Equipment The current level of funds allocated for equipment and modernization does not allow for the execution of the national defence *tasks, the implementation of the Partnership Goals at* the anticipated pace, as well as reaching the required level of interoperability of the declared forces. In the previous period, the state of the weapon systems has relatively improved through the purchase of armoured vehicles, 5.56 mm calibre weapons, NBC equipment, modernization of helicopters, equipment for personal protection, communication equipment, radars for naval surveillance etc. ![14_image_1.png](14_image_1.png) Figure 4: Cost *of equipment provision* and modernisation from2008 to 2012 1 According to the original estimates, an inflow of €2.98 million was expected in 2012 from these proceeds. A third of the planned amount was collected. Despite the improvement, a significant portion of the armaments and defence equipment (ADE) in use, is of various types and origin; a part of this equipment is technologically outdated and at the end of its life cycle. Their use and maintenance is extremely demanding and does not allow for the necessary interoperability and compatibility with the ADE systems of NATO members. A particular problem is the constant reduction of defence costs for equipment and modernization, which were decreased from 23% in 2008 to only 4.12% in 2011 and 7.1% in 2012, despite the NATO policy on allocating 20% for equipment and modernization (Figure 4). The reasons for this state of armaments and defence equipment, which certainly do not meet even the national needs, may be found in the permanent reduction of funds for equipment, as well as inadequate procedures for the procurement of equipment. Namely, the acquisition of military equipment is carried out in unfavourable conditions. This primarily refers to the underdeveloped defence-military industry, which directly results in the increase of the purchase cost, because the equipment has to be provided via foreign companies, which are often uninterested in participating at tenders for small quantities, i.e. low-value tenders. A long-term development plan of defence should define the mechanisms for the procurement of combat systems and resources by signing long-term arrangements with domestic or foreign companies. ## 3.3. Infrastructure Most military infrastructure in military facilities has become outdated, substandard and does not meet the basic standards for life and work of the Military *members.* After its independence in 2006, Montenegro inherited the military infrastructure from the previous period, which was in a very bad condition. Since then, great efforts as well as significant resources have been invested in upgrading the infrastructure facilities, ranges and training grounds, in order to improve the quality of life for members of the Military and the Ministry of Defence. In this context, the reconstruction of the buildings of the Ministry of Defence in Podgorica has been carried out, and the same goes for the barracks in Danilovgrad, Kolašin and Golubovci. In addition, one of the challenges facing the defence sector in the improvement of the infrastructure capacity is the modernization of facilities in which ordnance is stored. It is significant to note that the warehouse Taraš2has been reconstructed and modernized. With the support of international partners, the works on the modernization of the Brezovik warehouse have also begun. Due to constant load and dilapidation of storage facilities, as well as the lack of adequate working conditions for the military personnel in some of the barracks, it is necessary to invest further efforts with a view to change the negative trend of investment in the infrastructure facilities and make it positive. 2 The reconstruction has been carried out within the MONDEM programme, with OSCE and UNDP support. Permanent reduction in funds that are invested in the infrastructure of the military facilities (Table 1) prevents the execution of rehabilitation and reconstruction of the buildings intended for the life and work of personnel in accordance with the planned schedule. | Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |----------|--------|--------|--------|--------|--------|--------| | Investment (in | 5.8 | 2.7 | 1.1 | 0.56 | 0.36 | 0.15 | | € mill.) | | | | | | | Table 1: Investments in the military infrastructure ## 3.4. Human Resources There is an urgent need to find a solution to the current situation, i.e. to find mechanisms that will enable a steady influx of young personnel. As in many other areas of the defence sector, the inherited policy of human resource management has led to an unbalanced structure in terms of the available personnel, i.e. a lack of available officers and common soldiers (Appendix 1). Although the officer corps is young on average, there is a need for continuous employment of officers at the initial, lower posts. A particular problem is the lack of common soldiers and their unfavourable age structure, as well as the excess of non-commissioned older officers and lack of younger non-commissioned officers. The existing organizational structure of the AFMNE is inconsistent with the principles of the armed forces of NATO members, especially when it comes to size, pyramidal structure of military ranks and age structure of the professional staff. When it comes to human resources and potentials, one cannot avoid the question of cadet ![16_image_0.png](16_image_0.png) education. In the previous period, the possibility of training cadets in foreign military academies has been accepted as a short-term solution. However, in the long run, this solution is not sustainable and its shortcomings are already being felt. Namely, the officers who have been educated in a variety of military educational institutions outside Montenegro return to the country with different habits and knowledge, whereby a uniform concept and approach to defending the country is not cherished and the Military operability is reduced. Coming back from schools from different countries, they bring with them different levels of knowledge and habits, which is why they need a longer period of adjustment and understanding of the parent defence system. Members of the AFMNE during the ISAF mission, talking with the President ## 4. National Challenges By defending the sovereignty, independence and territory of Montenegro, the defence system implements its constitutional role. To this aim, in conditions of economic crisis, special importance is placed on the management of defence resources. It is therefore essential that the MoD and the General Staff of the AFMNE establish appropriate organizational structures and relationships, in order to become more efficient. Achieving interoperability with NATO member countries requires improvement and adjustment of administrative, operational and material capacities. In addition, it is important to improve the logistics, resolve the excess of weapons, ammunition and equipment, as well as reduce the number of military sites and facilities to the required level. ## 4.1. Defence Of The National Sovereignty Bearing in mind the current safety environment, its unpredictability and the assessment of risks and threats, the defence of sovereignty, territory and independence of the state is the main priority of the defence system. The national sovereignty of Montenegro represents its right to exercise power on the state territory, implement laws and supervise and protect its land, territorial sea and the airspace above it. The sovereignty of Montenegro is particularly sensitive in one part of the sea and airspace of Montenegro, which is why it is necessary to further invest in the existing technical systems and acquire new ones, which requires a significant financial investment. Bearing in mind the current financial strength of the state to purchase and maintain these systems, it is clear that new mechanisms enabling the execution of the Military's mission and tasks must be sought. Given the outdatedness and state of the existing technical systems and the state capacity to purchase and maintain them in the long run, Montenegro will not be able to independently develop all the necessary facilities. Therefore, Montenegro's ability to protect its sovereignty will be built through regional initiatives, as well as cooperation with partners and allies. The participation in the system of collective security is the best framework for the protection of its sovereignty. ## 4.1.1. Montenegro'S Sovereignty On Land The Ministry of Defence intends to form and develop an infantry battalion of high combat capability. The government support is needed to find a solution for the construction of polygons for exercising *and combat training in accordance with the laws of Montenegro.* The existing land forces are organized at a brigade level. This organization is not in accordance with the organization of modern armies in terms of number and size and it reflects the inherited structure. Due to such organization and inherited habits, the main shortcomings of the land forces are an insufficient number of soldiers in the units, large number of levels involved in the decision-making process, complexity of relations and unfavourable personnel structure. Military currently lacks large quantities of modern military systems, equipment and vehicles, which significantly affects the efficiency of operations in a variety of spatial and temporal conditions. The mobility and logistical support to land forces is characterized by limited manoeuvring capacity, due to the outdated means of transport and inadequate levels of protection. In the previous period, the activities were focused on the adoption of standards in training and equipping the declared infantry company, which allows for the operational capability concept (OCC). In addition, significant progress has been made in training and equipping the mountain units to perform operations in extreme weather conditions. An insufficient number of vehicles with the necessary level of protection and lack of ![18_image_0.png](18_image_0.png) polygons for live fire exercises and training, present a major constraint to continuing the training and assessment of the declared forces in accordance with NATO procedures. Experiences and lessons learned, primarily from the participation in the ISAF mission and the engagement during the period of the state of emergency due to a large snowfall which afflicted Montenegro in 2012, when the members of the Military provided assistance to civilian institutions, foreground the need for modernization and structural changes in the forces. Welcoming members of the AFMNE *after their participation in* the ISAF mission Since the restoration of Montenegro's independence, land forces were focused on training and equipping units and teams declared to the Partnership Goals. However, the current structure is not sufficiently modular and adaptable to meet national needs as well as to meet the criteria of the forces that are declared for international operations. A new interoperable infantry battalion will be established out of the existing land forces, featuring the appropriate structure, training and equipment. ## 4.1.2. Sovereignty Over The Airspace Of Montenegro Sovereignty over the airspace will be secured the by building a sustainable system of control, supervision and protection of airspace together with partners and allies. Sovereignty over the airspace will be secured by building a sustainable system of control, supervision and protection of airspace together with partners and allies. The current capability of the Air force of the AFMNE to carry out the assigned tasks is very limited due to a lack of adequate technology and limited national capacity for its maintenance at all the prescribed levels. The lack of combat systems and air defence resources (artillery, missile systems and aircraft), helicopters and modern radars for air surveillance is especially evident. The existing capacities of the Air force do not allow for the execution of the assigned Military's missions and tasks and tactical transport of a large number of people, resources and technological equipment by air. The "Gazelle" helicopters and related equipment enable acting during the day, while acting in complex weather conditions and at night is limited. In addition, in accordance with the assigned tasks, the air force features limited technical and operational capacities for search and rescue missions (SAR) from the air, over land and sea and is not able to adequately support these activities in all weather conditions. Due to a lack of multipurpose medium helicopters the Air Force of the AFMNE is not able to provide adequate support to civilian institutions in reaction to emergency situations (search and rescue, fire fighting, medical evacuation-MEDEVAC, transport, etc.). Also, due to a lack of adequate helicopters it is not possible to reach the required mobility of land forces, which, given the terrain configuration, can be crucial for efficient and adequate response to the possible security challenges. Bearing in mind the features of G-4 aircraft, cost of training, operation and maintenance of aircraft and weapons, and limited service life, it is irrational to continue to keep them in operational use. For safe and secure execution of the flight tasks, the air force has the ability to maintain the existing helicopters, which includes all types of repair and service to the level of their full overhaul. ## 4.1.3. Sovereignty Of Montenegro At Sea The focus of ensuring the sovereignty over the sea will be placed on achieving *the* necessary capabilities of the navy, integration of the national system of maritime security, regional cooperation and Euro-Atlantic integration. The focus of ensuring the sovereignty over the sea will be placed on achieving the necessary capabilities of the navy, integration of the national system of maritime security, regional cooperation and Euro-Atlantic integration. Currently, the navy has a limited capability to carry out tasks due to the fact that its ships and surveillance and communication systems are outdated, that its existing equipment does not meet standards and that it is impossible to provide its adequate primary and periodic maintenance. The navy has limited capability for maritime surveillance due to the technical outdatedness of the coastal surveillance radars, the inability to supply spare parts and the fact that the repairs are expensive. There is no possibility to transmit radar images electronically from the coastal radar observation points to the navy operative headquarters. The existing systems are not compatible with the systems used by the EU and NATO member states, which prevents the exchange of data and information in real time. The naval control of the territorial sea and the outer sea belt is another big challenge for the ![20_image_0.png](20_image_0.png) defence of the sovereignty of Montenegro. No institution in Montenegro, military or civilian, possesses the ability to effectively perform this mission. Currently, the navy performs the control of the outer marine belt with large patrol vessels of "Kotor" class, however, the costs of maintenance are high, and the funds for training and staying aboard ships at sea are insufficient. This is why two smaller patrol boat of "Končar" class and one ship for universal support have been brought back into operational use on a temporary basis, although they are more than 20 years old, in order to reduce the operational costs and achieve a more effective control of the sea. Navy, boarding teams while *boarding a ship* The tug PR-41 is the only vessel which is equipped with modern navigational, commercial and communication equipment, which allows for full interoperability with partners and the ability to search and rescue in case of accidents involving military and civilian ships or aircraft. Because of inadequate and obsolete equipment, the navy has limited capacity for special actions (antiterrorist, antisabotage) and underwater scouting. There are no options for demining in ports and anchorages, except for counter-sabotage control, due to the fact that the navy does not own the equipment for detection and removal of explosive devices and mines. Boarding teams, which are part of the maritime detachment, are capable of boarding, seizing and controlling vessels and sea facilities, but cannot inspect personnel and resources, since they are not fully equipped with professional standard personal and collective equipment for surveillance, communications and security. ## 4.1.4. Mobility, Movement And Transportation The purchase of multipurpose medium helicopters to carry out operational tasks presents the main priority of the Ministry of Defence. The defence system should have the ability to react in crises and carry out its missions, both within Montenegro and at the regional level. Currently, the defence forces have a very limited ability to transport forces and resources to tactical destinations by air, especially in emergency situations and the fight against terrorism. Most countries use medium transport helicopters in order to provide operational mobility. These medium helicopters are the best ![21_image_0.png](21_image_0.png) solution for Montenegro, having in mind the terrain, their ability to be used above water surfaces, specific conditions caused by extreme weather conditions and harsh conditions for the use of road and rail infrastructure. Medium helicopters are vital for reacting in case of emergency, especially in natural disasters. This was confirmed during the great snowfall in Montenegro, where we did not have the right solution alone. Exercise of the declared troops In addition, it is of vital importance that the Military members be familiar and have experience with the procedure of using helicopters as primary means of tactical transport in international operations. Also, the movement and transport of the land forces has been limited due to a lack of modern transport vehicles as well as vehicles with the required level of protection. This is a critical moment in the deployment of forces, where their limited manoeuvring speed may affect the outcome of the whole operation. ## 4.2. Ministry Of Defence The aim is that the Ministry of Defence and the Military *reorganize and comply with the* best NATO practices, especially in establishing the adequate management structure and efficient performance of duties, and ultimately become more efficient and effective. The Ministry of Defence was established in 2007. The previous period showed that there are several serious shortcomings in the management and leadership of the defence resources. The management and administration of the existing processes in the Ministry are characterized by excess paperwork, lack of a clear division of responsibilities and unclear functional links among organizational units. The current organization is a highly centralized system with a very complex organizational structure and overlapping responsibilities, which ultimately reduces the efficiency of the system and efficient management of the resources. In accordance with the Law on Civil Servants, the Government of Montenegro adopted a new Rule book on the Internal Organization and Systematisation of the Ministry of Defence, which came into force in early April 2013 (Appendix 8). The new organization established three directorates: the Directorate for Defence Policy, the Directorate for Human Resources and the Directorate for Material Resources, all managed by their respective directors. In addition, the function of the Secretary of State and separate organizational units for public relations were introduced as well. The introduction of a separate organizational unit of the Ministry of Public Relations will enhance the communication with the public, media and non-governmental organizations, as well as provide better informing of the public about the activities of the Ministry and the reform process of the defence system. Pursuant to the Amendment of the Law on Defence from 2012, the Department for Military Intelligence and Security Affairs was established within the Ministry of Defence. In order to improve the management of defence costs and better define the priorities, it is necessary to work on improving the function of internal audit and building integrity. The General Staff of the AFMNE is an organizational unit of the Ministry, but experience shows that it lacks better systems for controlling everyday operations as well as stronger integration with other organizational units, primarily due to a lack of quality GS personnel. Also, there is a need to improve the skills of crisis management and command of the AFMNE in crisis management and operations. To this end, a command and operations centre will be established within the General Staff of the AFMNE, by engaging the available operational and intelligence personnel. ## 4.3. Material Resources The Directorate for Material Resources of the Ministry of Defence is the carrier of the management and logistics planning in the Ministry of Defence and the Military, whereas the Logistics Centre represents the executive unit for logistical support. The Directorate consists of the Directorate for Logistics, infrastructure, information and communication systems, standardization and codification. In order to use material resources more efficiently, the Directorate for Material Resources took over the logistics duties from the General Staff (J-4), which was closed through previous organizational changes. The brigade commands of the land forces, navy and air force include logistics departments (administrative authorities), which have the task to monitor the state and availability of resources and propose their maintenance. Despite the progress made in the previous period, the current logistics organization does not allow for a sufficiently efficient use of human and material resources. The duplication of functions, dual command and ambiguous relationships between the administrative and executive bodies present major gaps that do not allow for efficient functioning. Also, the lack of doctrinal logistics documents significantly hinders the efficient and effective functioning of logistical support, and, as a result, we have vague competencies and responsibilities within the organizational units in this system. ## 4.3.1. Logistical Support The existing logistical capacities are very limited and are characterized by outdatedness and unreliability of resources and equipment, which significantly complicates the execution of the basic functions of logistical support. The transport facilities of the Logistical Centre do not have the necessary capacity to carry forces and resources, considering that the average age of the vehicles is over 20 years. Current maintenance of movables is burdened by numerous problems: the engagement of manpower to wrong purposes; inadequately trained personnel, especially when it comes to their skills to maintain newly acquired assets; disproportionate ratio of administrative and executive logistics bodies, as well as inadequate age structure of the staff. Also, the material base is underdeveloped (stationary and portable workshop equipment is outdated, there is a lack of spare parts, etc.) and the same can be said of the national logistics, especially concerning the maintenance of military equipment. Storing ammunition and military equipment is done in accordance with the prescribed ![23_image_0.png](23_image_0.png) standards. For all ammunition which is in the Military's warehouses, the stability of the gunpowder is monitored based on the gunpowder collection, which is located in the ordnance warehouse "Sasovići". The resources are stored in compatible groups, which meet the appropriate safety standards in all respects. Vehicles of the AFMNE The current state of the supply management system is burdened by a substantial surplus of assets, old equipment and lack of logistical information system which would encompass the information about the current state of resources, their quality, customer requirements and the possibility of efficient inventory management. By adopting the amendments to the Law on Defence in early 2012, the legal basis for standardization in the field of defence was created. Although the process of formally accepting NATO standards has not begun yet, the standards are already being implemented in terms of learning foreign languages, training the units by the NATO operational capabilities concept (OCC concept), as well as in purchasing equipment that is compatible with the allies' equipment. In order to achieve interoperability with partners in the financial sphere and logistics, Montenegro has decided to accept the NATO codification system. In accordance with the existing legislation, the Ministry has the authority to organize primary health care. However, this solution proved to be irrational and inadequate for the needs of the AFMNE. A particular problem is the impossibility of providing adequate health care for the members of the special forces, naval commandos and aeronautical personnel. In addition, this solution requires considerable financial resources so that medical examinations and any other examinations prescribed by the law for the members of the AFMNE may be performed. It is very important to emphasize that this legislation does not enable adequate monitoring of the health status of the military personnel, which may have very negative effects. ## 4.3.2. Solving The Problem Of Surplus Military Equipment And Infrastructure Solving the problem of surplus military equipment and infrastructure is to be continued. The Ministry of Defence expects the continuation of the government policy prescribing that part of the funds from the sale of arms and former military real estates be allocated to the purpose of modernizing and equipping the AFMNE as well as building the necessary infrastructure in military facilities. Following the independence of Montenegro, large quantities of weapons and military equipment were found in military depots, including around 12,000 tons of ammunition of various calibres. These amounts represent a major problem, especially in terms of safety (Figure 5). The process of solving the outdated military equipment, ammunition and other equipment, which started a few years ago, is implemented through neutralization, sale or conceding certain assets to civilian institutions. Special attention is paid to the process of neutralization, which has so far been implemented successfully through the MONDEM Programme (UNDP and OSCE), the Technical Agreement with the U.S. Government and our own capacities. In addition, the destruction of surplus ammunition will be carried out in cooperation with NATO. Bearing in mind the safety aspect, significant efforts have been made to transfer all surplus ordnance from outdoor into indoor facilities. The process of neutralizing surplus ordnance has slowed down due to a lack of polygons on which the explosive ordnance could be destroyed through outdoor explosions. If funds are provided and the neutralization process continues at the current pace, it is expected that the destruction of ordnance (over 4,000 surplus tonnes) will be completed by the end of 2018. Apart from the security aspect, the completion of this process will result in a decrease in the spending for securing and maintaining storages, having in mind that these represent a burden for the defence budget at the moment. Figure 5: Ordnance surplus (in tonnes) (remark: **blue** - *ordnance)* Currently, the AFMNE has a surplus of 950 motor vehicles and machines, 8 aircraft and 8 vessels, and it is necessary to resolve these surpluses by the end of 2016. In Montenegro there are 242 locations used by the AFMNE, with about 1450 buildings. A certain number of sites are actively used, whereas a larger number of the facilities are not operational. ![24_image_0.png](24_image_0.png) "Brezovik" after the reconstruction Buildings, as well as electrical, plumbing and other installations at these sites are mostly outdated, unusable and require a significant amount of maintenance. The military sites that are no longer used have been handed over to the Privatization Council of the Government of Montenegro to dispose of them, in order to complete their appraisal, but the Military still has the duty to secure and maintain them. According to the analysis conducted by the Ministry of Defence, 23 military compounds are needed for the functioning of the defence system (Appendix 6). Of these, 19 locations have a long-term perspective, while 4 are temporary locations. It is important to note that in the process of securing the surplus locations a significant number of the Military members are hired on a daily basis, and the same goes for other temporarily employed members. The total costs of securing these facilities amount to approximately €220,000 annually and these funds are provided from the defence budget. In addition to the financial costs, hiring the Military members to secure the facilities has a negative impact on their training and performing of basic tasks. ## 5. Redefining Defence Missions And Tasks Bearing in mind the foreign-policy goals, estimated risks and threats, as well as constant changes of the security environment and insufficient capacities of the defence system, it is necessary to redefine the mission and tasks defined in the most important strategic documents. ## 5.1. Defence Missions Defence missions represent a baseline for the development of the AFMNE, as well as all other subjects in the field of defence. The AFMNE is an essential element of the defence system and the pillar of the defence of Montenegro. The defence missions provide an answer to the question of the aim and purpose of the establishment, development and utilization of the defence system in the preservation of national defence interests. On the basis of the role of the AFMNE, as defined by the Constitution, foreign policy goals of Montenegro, estimated risks and threats to security and concept of Montenegro's defence, three missions have been recognized. ## Defence Missions Of Montenegro ![26_Image_0.Png](26_Image_0.Png) ![26_Image_1.Png](26_Image_1.Png) ![26_image_2.png](26_image_2.png) 3. Support to civilian institutions in crisis situations ## 1. Defence Of Montenegro Through Active Cooperation With Allies And Partners The defence of independence, sovereignty and territorial integrity is the most important mission of the defence of Montenegro. Aware of its real defence capacities, Montenegro expects help from partners and allies in the event of an armed threat, although it is not a NATO member. Bearing in mind that this is a two-sided process and that Montenegro shares common security values with its allies and partners, it is necessary to achieve the capability and readiness of its forces to act with the partners and be engaged in accordance with Article 5 of the Washington Agreement. The probability of an armed threat to Montenegro is small; however, having in mind the consequences of such an aggression, it is necessary to develop an effective defence capability and capacity to support the allied forces to operate on the territory of Montenegro for the purpose of its defence. ## 2. Contribution In Achieving And Maintaining Peace In The Region And In The World Democratization of society, free movement of people and capital, rule of law and stable environment are core values that provide peace and prosperity in the world. By participating in the ISAF mission and other international operations, Montenegro shows willingness to assume responsibility for international security, in order to stabilize the crises and prevent the suffering of people and destruction of goods. By participating in international operations, we show that we are a credible partner to our allies and that we make a full contribution to the development of partnership, cooperation and peace in the world. ## 3. Support To Civilian Institutions In Crisis Situations Bearing in mind the risks and threats to the welfare of society, the Military will use its capacities and capabilities to provide the necessary support to civilian institutions and individuals in handling various risks and threats that are not military in nature. The Military will be engaged in situations where civilian capabilities are not sufficient for timely and effective protection and rescue of people and property. This will be achieved through an efficient and rational use of national resources in the event of natural and man-made disasters, the fight against terrorism, the use of weapons of mass destruction, etc. ## 5.2. The Tasks Of The Afmne The key tasks of the AFMNE are defined on the basis of its defence mission. The tasks are further broken down into military activities, for the full realization of the assigned defence missions. Within the defence mission no. 1, the AFMNE will execute the following tasks: ## A) Protection Of The Independence, Territorial Integrity And Sovereignty Of Montenegro The AFMNE will protect and defend its sovereignty, independence and territorial integrity, in cooperation with other elements of the defence system, as well as its partners and allies. In defence of its territory and sovereignty, Montenegro will use all Military units and other resources to enable the increase of the forces to the required level and the admission of the allied forces, which would be deployed in the defence of Montenegro. ## B) Achieving The Required Level Of Interoperability Of Its Forces With Allies And partners The interoperability with allies and partners is a key prerequisite for the functioning of the AFMNE within the system of collective defence. This especially refers to achieving standards in equipping and training the forces which build key capabilities of the AFMNE. Therefore, the training and equipping of the forces declared as per Partnership Goals represents one of the priority tasks. ## C) Host Nation Support The participation in the collective defence requires identifying and preparing certain infrastructure capacities, as well as securing logistical support to allied forces during the defence of Montenegro, in accordance with Article 5 of the Washington Treaty, or when they perform operations near Montenegro. In order to prepare a complete review of the options available for this purpose, the Ministry of Defence will develop a catalogue of capabilities, which will include the most important national and institutional capacities of Montenegro. ## Within The Defence Mission No. 2, The Afmne Will Execute The Following Tasks: A) Participation In International Operations And Missions Montenegro has recognized the fact that acting outside its territory to extinguish crisis hot spots in the world represents a contribution to peace and security at the national and international level. To that end, Montenegro will provide trained and equipped forces that will participate in international operations together with the allies, in accordance with the international law and within its capability. ![28_image_0.png](28_image_0.png) the commander of the unit *deployed in ISAF* b) Arms control in accordance with the international agreements Montenegro is dedicated to the implementation of international agreements on arms control, disarmament and the fight to prevent the spread of weapons of mass destruction, as an important factor of international security and stability. Montenegro is an active participant in: - The activities and initiatives of international organizations that want to eliminate any possibility of illicit arms trafficking, - Initiatives of international organizations that limit the proliferation of small arms and light weapons in developing countries, - Agreements that prohibit the proliferation of weapons of mass destruction. In this way we contribute to building trust and security in the world, as well as to protection of people and property. ## C) Participation In International Military Cooperation In Order To Develop Trust And Partnership The key pillars of Montenegro's military cooperation are the AFMNE and defence part of the mission of Montenegro to NATO, military envoys and MoD representatives in international organizations. Beside regular military and diplomatic missions, military cooperation is implemented through the following activities: military delegations led by top military leaders, working and expert groups in certain areas of bilateral and multilateral military exercises, visits to ships, specialized studies, conferences, symposia and seminars in the field of defence and security. ![29_image_0.png](29_image_0.png) Within the defence mission no. 3, the AFMNE will execute the following tasks: ## A) Support To Civilian Institutions In Natural And Man-Made Disasters The AFMNE will provide support to state institutions and citizens in the event of natural and man-made disasters, when they are unable to adequately respond to them using their own resources. Military *members providing assistance to households* b) Support to the police in the fight against terrorism The AFMNE will support the police and other state authorities in case of endangering national security by terrorism, in accordance with the Constitution and laws of Montenegro. ## C) Support In Search And Rescue Operations The AFMNE will assist civil services (police and forces acting in emergency situations) in search and rescue operations when they do not have enough capacities on their own, in order to prevent or reduce the suffering of people and destruction of property. # 6. Legal Framework Of The Defence System The existing legislation in the field of defence *needs to be adjusted in the following areas:* - The area of involvement of the security forces of Montenegro outside the national territory, - *Scope of regulations in the area of financial regulation.* The legal framework of the defence system of Montenegro is regulated by the Constitution of Montenegro, National Security Strategy, Defence Strategy, Law on Defence, Law on the Armed Forces of Montenegro and Law on Deployment of the Armed Forces of Montenegro to the International Forces and Participation of Members of Civil Defence, Police and Public Administration Employees in International Missions and Other Activities Abroad. The Parliament of Montenegro decides on the deployment of the AFMNE units in international forces, at the proposal of the Council for Defence and Security, whereby the units are enlisted by volunteers. The legislation provides that the decision on the deployment of the AFMNE units in the international forces cannot be made during a state of emergency or war in Montenegro. It also stipulates that if circumstances change significantly for the implementation of activities of the AFMNE units in the international forces, or if the AFMNE units are exposed to extreme danger or in the case of a declared state of emergency or war in Montenegro, the decision to continue participation or withdraw the AFMNE units shall be made by the Parliament, at the proposal of the Council for Defence and Security. In the next stage of the Euro-Atlantic integration, it is necessary to adapt the legislation to participate in international missions and operations, especially in the part relating to the obligation of participation of Montenegro in collective defence operations. The current legislation in the field of finance does not allow for the transfer of responsibilities from the Secretary of Defence to lower levels, which reduces efficiency in decision-making and slows down the implementation of these decisions. ## 7. Key Priorities Of The Defence System The reorganization of the Ministry of Defence and the AFMNE is a key priority that will establish adequate structures to ensure efficient operation and management of processes and programmes. This includes finding the right model for more efficient management of human and budgetary resources, which will ultimately enable more efficient and cost-effective management and allocation of defence costs. The development of relevant military capabilities and establishment of the sea and airspace monitoring system is a key challenge for ensuring sovereignty over the Montenegrin territory and the efficient exchange of information between partners and allies. The reorganization of the AFMNE and changes associated with its battalion organization will provide a more efficient structure of the AFMNE units adapted for a wide spectrum of security challenges and standards of modern militaries. With modernization, equipping and training, the AFMNE will focus on the implementation of Partnership Goals and achieving necessary skills to carry out assigned missions and tasks. ## 7.1. Ministry Of Defence In order to achieve a more efficient utilization of resources, including the improvement in the management of programmes and processes, the process of adjusting and improving the existing structures of the Ministry will consist of the following: - integration of certain parts of the Ministry and the General Staff in such a way that functional units in human and material resources, intelligence security and financial services are formed integrally while simultaneously ensuring the functions of the General Staff; - decentralization of the management of processes and transfer of some competencies to lower levels; - improving the capacity to fight corruption, in line with the national *Strategy for* Fight against Corruption and Organized Crime as well as with international obligations. Special emphasis will be placed on improving the training of civilian and military personnel in the field, to enhance the capabilities in countering corruption and organized crime, improving the coordination of agencies responsible for the control and strengthening of the transparency of administration and implementation of defence procurement costs. Development priorities will be: - development of the military-intelligence system (Appendix 2), - development of the newly established organizational unit for public relations at the Ministry, - establishing a command operations centre for continuous commanding of the Military operations and crisis response within the General Staff. The functional reorganization of the Ministry of Defence is to facilitate networking and improve different defence operating capabilities within the system, as well as to ensure optimal and efficient use of resources and reduce administration. ## 7.2. Reorganization Of The Armed Forces Of Montenegro The future structure of the AFMNE is required to enable a harmonized relationship between the needs of defence and the development of possibilities for modernly equipped and trained forces that will be able to respond to security challenges. Taking into account the demographic capacity of the country and its commitment to membership in Euro-Atlantic institutions, the AFMNE will retain already constituted military branch units without conventional military branch commands. The size of the peacetime Military will continue to be in line with the needs and capabilities of Montenegro and will range within about 0.3% of the population. In the new organization of the AFMNE, a strategic and tactical level will be maintained. In a normal situation, the General Staff will ensure continuity of command, development and maintenance of combat capabilities of the AFMNE through the implementation of its defence policy, development of doctrine documents, military cooperation and other matters related to defence. The General Staff would be both main expert and advisory body to the Minister of Defence and the Council for Defence and Security for Military Affairs. As part of the General Staff of the ![32_image_0.png](32_image_0.png) AFMNE, the Command Operations Centre (COC) will be established in order to provide continuity of command over the AFMNE units and the execution of its ongoing operations in the country and abroad. After the abolition of the brigade organization of the AFMNE, the basis of the organizational structure will be a battalion, or the equivalent structures present in the navy and air force. Members of the AFMNE *on duty* In order to effectively command all Military forces in the country and abroad, a unified system of command and control will be provided through the completion of the project of the integrated sea and air control system. A unified command and information system will come to fruition with the formation of the Command Operations Centre (Appendix 3). Therefore, the integration of all components of the AFMNE and its incorporation into the modular structure suitable for joint action in the execution of operations of various types will be ensured. The structure of the AFMNE (seen in Appendix 4) will lead the way for modelling and fusion of the forces, depending on the specific tasks and challenges. The basic unit for modelling will be a declared company that is trained and evaluated in accordance to NATO standards. ![33_image_0.png](33_image_0.png) Figure 6: Future structure of the AFMNE The dynamics of the process of reorganization of the AFMNE and its future concept of defence will depend on the amount of funds allocated for defence costs, solving the problem of surplus military equipment, infrastructure, as well as the projected development of staff required to participate in assigned missions and operations. Ministerial development planning will determine the pace and direction of the reorganization of the AFMNE. It is reasonable to expect that the establishment of a new organizational structure of the AFMNE will have been completed by the end of 2014. ## 7.2.1. Land Forces The land *forces will develop small, mobile, sustainable, deployable and interoperable units.* The land forces are the most numerous servis of the AFMNE and are intended to defend the land of Montenegro in cooperation with the air force, navy and other defence forces. The organization and development of the land forces is affected by estimated challenges, lay of the terrain, the size of the country, the characteristics of modern armed conflict and crises, and international commitments. The new structure of the land forces will allow more efficient command by reducing the number of levels in decision making, more balanced manning of military units, and a more efficient, economical training and modernization of the force. ![33_image_1.png](33_image_1.png) The basis for the creation of a new organizational structure of the land forces will be composed of the declared Military units, in accordance with Partnership Goals, which are trained and evaluated alongside NATO standards. It will not adversely affect the quality of decisions, but create the possibility of a more favourable distribution of professional staff in key posts and close the gap between decisionmakers and decision executors. It is to be expected that the transition to the battalion level of organization will provide more favourable conditions for a planned, organized, unified, meaningful and successful use of force in a concrete operational situation in a given time and space. The land forces (Appendix 4) consist of the infantry battalion, military police company, intelligence and reconnaissance company, and an honour guard. The land forces will not have a single command, but will operate as independent units that will be subordinate to the Chief of General Staff. The infantry battalion and the military police company members will be assigned to engage in international missions and operations. The core of the infantry battalion will consist of two companies, both of whom are trained in accordance with NATO standards, which, pursuant to the commitments defined in the Partnership Goals, should achieve readiness to perform tasks within the NATO framework by 2017. Through the new organizational structure of the AFMNE, part of the Special Forces Company will be integrated with the Military Police Company to form a military police unit. A Military Police Company is intended for police3and military police operations in the area ofimplementation of the prescribed technical measures to identify and prosecute the perpetrators of crime (via forensics), physical security of the Minister of Defence, Chief of General Staff, foreign military and government officials and delegations visiting the Ministry of Defence and the AFMNE. With this new organizational structure, the AFMNE will integrate the reconnaissance unit of the Special Forces Company and that of the Electronic Surveillance into a single Intelligence and Reconnaissance company. The Intelligence and Reconnaissance Company is an organic capability of the AFMNE which, in order to achieve interoperability within the field of military intelligence and in accordance with the accepted Partnership Goals, develop skills to gather military intelligence information necessary to make decisions about the use of Military units. The Intelligence and Reconnaissance Company is the basis for the creation of temporary military intelligence structure, which would be used for providing intelligence support to units of the AFMNE when engaged in international missions and operations. An honour guard is designed to carry military honours tasks arising from state protocol and protection of persons and objects of particular importance in emergency situations. The reorganization of the land forces will be carried out through planned reduction of units, leaving and scaling down unnecessary infrastructure sites, reducing the number of command staff and manning of the newly formed units with missing personnel. ## 7.2.2. Air Force The reorganization of the air force will enable monitoring, control and protection of airspace in cooperation with allies, improving mobility of units, and improving the ability to respond to crises. The air force is a Military branch intended to monitor, control and protect the airspace of Montenegro in cooperation with the countries of the region, partners and allies. In addition, it 3These include control of the military order, and discipline and crime prevention in the barracks and military facilities, control of military road transport and escort of military transport and classified documents. will provide support for the land forces, navy and civilian institutions. The air force will be equipped with helicopters, light air defence systems, and a system for airspace monitoring. The main challenge is the establishment of a modern operations centre which will have a capacity to continuously monitor all types of situations in the airspace through collecting data from its own resources and their exchange with the Montenegrin civil aviation entities, NATO, neighbours and future operational command centre. This involves the purchase of a new, modern radar system that will enable the integration of radar images at national and regional level and data exchange with NATO. In light of several consultations and recommendations from NATO experts, the Government of Montenegro has assigned the Vrsuta site (north of Bar) as an optimal solution for the installation of a military radar system to monitor airspace. Protection of airspace ("air policing") is one of the most important and complex challenges ![35_image_0.png](35_image_0.png) facing the country. Bearing in mind the location and size of the area, potential threats endangering airspace, as well as sustainability and the state of existing aircraft, Montenegro chose not to have combat aircraft and to protect its airspace within the collective security system. The existing aircraft (G-4) will be withdrawn from operational use. Helicopter Unit of the AFMNE When necessary, the air force will develop the capacity of tactical transport, search and rescue on land and sea, medical evacuation and firefighting. Therefore, a major objective is the procurement of medium-sized, multipurpose helicopters. While executing the tasks of protecting the airspace, the air force will provide control of navigation of allied aircraft through Montenegrin airspace and develop other elements of support; particularly in search and rescue capabilities. Since it is not rational that Montenegro have a full capacity of the territory air defence, the aviation will develop a system of antiaircraft ground protection of units and vital facilities of the state, alongside the existing systems that need to be modernized. The capacities of the air force of the AFMNE will be realized by adapting organizationformational structures for integration into a collective security system and equipping this system with multipurpose helicopters. This will provide a means of monitoring and controlling airspace through a regional approach. Given the economic possibilities of the country, the capacity of the air force, along with the current state of technology and its unprofitability, the issue of airspace protection (AS) will be resolved within the framework of a collective security system. ## 7.2.3. Navy Supervision at sea will be provided by building the capacity of the navy and the efficiency of the protection of Montenegro at sea will assume a new quality by purchasing new patrol boats through the sale or conversion of the existing vessels of the navy. The navy is a military branch intended to monitor and protect the sovereignty of internal waters and territorial sea, as well as the protection of the sovereign rights of the Montenegro Outer Sea Belt and the Continental Shelf. The sovereignty at sea includes the smooth performance of the functions of command, control and communications (C2I), electronic monitoring and control of the territorial sea, and the function of the navy presence at sea. The implementation of the "Maritime Information Management System - MIMS", in cooperation with the U.S.A., will provide the necessary conditions for an integrated supervision at sea and the C2I system. The C2I system will provide continuous monitoring of Montenegro's territorial waters, the continental shelf, electronic exchange of data in real time with state institutions and countries in the Adriatic-Ionian region, NATO and the EU. It will be part of the national command information systems in the future Command Operations Centre. Until the purchase of two new or modern patrol boats is completed, the navy presence will be ensured by introducing two vessels of the "Končar" class and one universal transport ship into operation. Patrol boats will be withdrawn from operational use4. Providing funds for the purchase of two new or more modern patrol boats is a major challenge, but tackling it would solve the problem of functionality of the presence of the navy in long term, that is, the protection of the sovereignty of the territorial sea, the rights and interests in the outer sea belt (12-24 NM) and the continental shelf of Montenegro in an economically efficient and operationally effective manner. Providing the necessary resources and the implementation of the project is planned to be carried out through the sale or conversion of the existing vessels of the navy. ![36_image_0.png](36_image_0.png) The navy will plan to equip and develop mine divers for mine action in order to protect the ports and anchorages from possible terrorist attacks. The navy, in cooperation with relevant civil institutions and countries in the region, will develop the capacity to respond to different crisis situations, particularly in search and rescue (SAR), environmental incidents and the fight against terrorism. 4 Two rocket launchers and an auxiliary armoured boat PO-91, which in earlier amendments were pulled out of operational use. ## 7.3. Human Resources The process of human resource management is necessary to develop in the direction of acquiring and retaining staff, and creating conditions to facilitate the professional development of each member of the MoD and the AFMNE, as well as quality of life and care of their families. ## 7.3.1. Improving Human Resource Management The Ministry of Defence should direct their efforts towards the development of HR policies, while implementation of these policies should be set forth by the AFMNE. Through long-term planning, a system should be built for professional development and envisioned career of each member of the AFMNE, which will allow development planning according to the "next duty - professional training" principle. Modifying the existing organizational structure and formation of the AFMNE, a "formation position - officer rank" should be harmonized in order to achieve an adequate pyramidal structure of ranks. In order to establish a sustainable hierarchy of officer ranks, it is necessary that the Ministry of Defence make additional efforts to recruit more officers in a relatively short period and thus create a variety of career paths so that highest-rated officers are promoted. The existing solution for the advancement of officers automatically after the completion of their formal application is prescribed by the provisions of the Law on Military. The existing legislation needs to be tailored to meet the real needs of the AFMNE. Accordingly, it is necessary to develop mechanisms that will allow only the best among the officers to advance in their careers based on individual abilities and results displayed in the performance of tasks. When it comes to recruiting NCO corps, the process of recruiting the best contract soldiers will continue. A NCO career begins to develop after attending the Basic NCO Course, and ends with attending an advanced NCO school, where NCOs acquire the ability to function as major non-commissioned officers and non-commissioned officers to staff duties at all levels. In order to develop a mechanism of real measurability and objectivity in assessing the AFMNE, it is necessary to further improve the AFMNE's Assessment Regulations. In this way, evaluation of Military members will be a stimulus for the successful execution of tasks with the ultimate goal of establishing a system that favours knowledge, training and skills. Analyzing the existing personnel structure, we expect a balanced structure to be reached by 2020 in the following ratio: officers: NCO: contract soldiers = 1 : 2.5 : 3.5. However, special attention should be paid to the specifics of certain types of services and, where it is not possible to fully implement this ratio. In addition, it is very important to establish mechanisms of a planned outflow of the existing staff. This would allow admission of young officers and contract soldiers thus providing an optimal structure of personnel, which would be consistent with the missions and tasks of the AFMNE. In this way, a more favourable age structure of the AFMNE will be attained. Taking into account the efforts which the Ministry of Defence has invested in developing initiatives for gender equality in the defence and security sector, it is important to note that progress has been made in increasing the number of women in the defence system. Speaking on the gender structure of contract soldiers, women's participation in the AFMNE is at the level of that in modern militaries. Although progress has been made, there are still fewer women in the structure of non-commissioned officers and officers. For this reason, it is necessary to develop mechanisms to ensure a fairer representation of women in the structure of NCO and officer corps. In the effort to improve the quality of the management of human resources, the Ministry of Defence will continue to take into account the quality of living standards of their members and address the housing needs of the MoD employees and the AFMNE personnel through valorisation of non-perspective military property. ## 7.3.2. Improvement Of Staff Education System One of the priorities of the future system of military education of officers is its capacity to develop a professional military education for officers within the current higher education system of Montenegro. Accordingly, education programs in institutions of higher education will include military education. In this way, future officers could gain licensed education. This type of education would be facilitated by finalization of appropriate partnership arrangements between the Ministry of Defence and the University of Montenegro. The partnership would also encompass the training of cadets at military academies in partner countries, provide a sufficient number of young military personnel and adequate recruitment for branches and services of the AFMNE. When it comes to the highest levels of training, the command staff training and staff training (War College) shall be provided for the personnel planned for leadership responsibilities only. The personnel who will be managing policies and programmes will be provided training in master's and doctoral studies. In order to improve leadership skills, Montenegro will not develop a special military education system, rather, it will use the resources available in NATO and partner countries. Montenegrin cadets ## 7.4. Material Resources Dependent on the needs and changes of the AFMNE, the organizational and functional structure of logistics will change, all with the aim of rational and efficient management of resources. The Department for Material Resources is responsible for developing policies in processes of management, logistics improvement, equipment and modernization, standardization and capital maintenance. In addition, it is proposed that the AFMNE should take the executive office and the implementation of operational missions of support and maintenance and improvement of military capabilities. To achieve a more efficient use of resources it is necessary to: - Integrate management of logistics support, in a way that the Department for Logistics performs tasks within a functional component of the Directorate for Material Resources, and is subordinate to the Chief of General Staff, - Reduce the number of functional relationships and decision-making levels, - Clearly define responsibilities, powers and authorities at all levels of decision making, - Normatively regulate the logistics system and to model its structure. ## 7.4.1. Logistics Support The development of logistics support will depend on changes in the existing structure of the AFMNE, that is, the assigned logistics functions which will no longer be performed by the Ministry of Defence. The structure of the Logistics Base will be adapted to assigned missions and tasks and will be organized at the battalion level. In the navy and air force, current elements of logistics support will be kept. To achieve more efficient inventory management and supply improvement an introduction of an integrated logistics information system is planned. Optimization of infrastructure facilities used by logistical support elements will be carried out. One of the first steps in this direction is to reduce the number of storage capacities (from current 9 to 3), and to phase out a number of objects that cannot be used in the future. In addition to the primary level of care, it is necessary, through the Amendments to the Law, that the unit for the medical support is assigned responsibility for implementation of certain specific health care issues. Primarily, these relate to the possibility of monitoring the health status of employees and implementation of health examinations for Military members. These health examinations will occur on a systematic basis and will take place prior to deployment, as well as periodically. In addition to improving the health of the military personnel, this will increase the capacity to engage medical personnel in the module ROL-1 in international missions such as aiding civil authorities in emergencies. Host country support capacities will be defined when needed for the reception of allied forces. Providing logistical support to forces deployed outside the territory of Montenegro shall be governed by appropriate agreements with partners and allies. ## 7.4.2. Weapons And Equipment ![39_image_0.png](39_image_0.png) - *Procurement of modern radar for air surveillance and building an operations centre in* - Purchase of patrol boats. ![39_image_1.png](39_image_1.png) ![39_image_2.png](39_image_2.png) ![39_image_3.png](39_image_3.png) ![39_image_4.png](39_image_4.png) In terms of equipping the AFMNE, the main priorities will be directed towards increasing mobility, movement and protection of the individual and the unit, addressing the sea and airspace surveillance and improving command and information systems. Long-term development plans for defence will define the dynamics and development of future capabilities through: - Equipping forces declared for participation in international operations in accordance with the schedule of Partnership Goals, - Using development projects available through international cooperation, - Development of a unified command and control system. Equipping and modernizing the declared forces within a ten years period will cost approximately €70 million (not including infrastructure costs as seen in Appendix 7). Financing of equipment is planned to be provided from the defence budget, donations and income from the sale of arms and military equipment. ![40_image_0.png](40_image_0.png) ## 7.4.3. Infrastructure In the next period, the development of infrastructure will be focused on: ## A) Optimizing Infrastructure It is planned that by 2017 the land forces have 4-5 barracks, the navy will be stationed in Bar, while the air force will remain at the existing location. The logistic base is to develop its capacity at three locations. b) Raising the standard of accommodation of the AFMNE's *members* In order to raise labour standards and improve training, the process of infrastructure planning of barracks and training areas will continue. c) Improving storage of ordnance The process of improving the safe storage of ordnance ammunition will continue in modernization of the "Brezovik" warehouse, where the pace of work depends on available funding. It is necessary to accelerate the phase-out process and reduce the number of individual storage capacities. d) Raising the standard of living of the AFMNE's *members* Regarding the need to improve the standard living of professional soldiers and their families, construction of housing units will continue. ## 7.5. Defence Expenses For the continued success of the defence reform, modernization of the AFMNE and achieving the required level of interoperability, a stable defence budget becomes imperative in times of economic crisis. In order to achieve balanced and sustainable defence budgets it is necessary to: ## A) Provide A Sustainable Cost Structure In The Ratio 50:30:20 The Ministry of Defence is committed to establishing the following structure of defence costs: about 60% for personnel, about 25% for operating costs and about 15% for equipping and modernization. The target structure of defence costs in relation 50:30:20 is planned to be reached by 2020. ## B) Provide Allocation For Defence Budget Of 1.4% Of Gdp Given the fact that economic growth has slowed down due to the economic crisis and that the GDP growth will not take place at a projected rate, it is necessary to ensure a balanced and sustainable structure of defence costs. During the period of lower GDP growth (next two or three years), it is necessary to try to achieve a 1.2-1.3% GDP share for defence spending with a positive and progressive trend of growth and reaching the amount of 1.4% of GDP (excluding military pensions). This approach would establish a balanced structure of the defence costs, which would enable the implementation of major projects in order to achieve relevant military capabilities, particularly in terms of equipment and modernization. In order to show the projected allocations for defence costs, a scenario of lower GDP growth rate has been envisioned (Appendix 5). | Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |----------------|---------------------------------------------------------------------------------|--------|--------|--------|------------------------------------------------|--------|--------|--------|--------|--------| | Administration | 28.47 € 28.88 € 27.86 € 28.60 € 28.95 € 30.40 € 30.99 € 34.06 € 36.11 € 38.27 € | | | | | | | | | | | Operations | 9.49 € 11.00 € 12.28 € 14.30 € 15.01 € 16.95 € 18.59 € 20.44 € 21.66 € 22.96 € | | | | | | | | | | | Modernization | 5.18 € | 5.96 € | 7.08 € | 8.17 € | 9.65 € 11.11 € 12.39 € 13.62 € 14.44 € 15.31 € | | | | | | | Total | 43.14 € 45.84 € 47.21 € 51.07 € 53.62 € 58.47 € 61.97 € 68.12 € 72.21 € 76.54 € | | | | | | | | | | Table 2: Defence budget expenses (in €mill.) # 8. Key Challenges And Risk Assessment In Sdr Implementation Inefficiency in managing these challenges could lead to the risk of not meeting long-term development objectives and priorities of the AFMNE, thereby reducing its ability to carry out assigned missions and tasks. Inefficiency in managing these challenges could lead to the risk of not meeting long-term development objectives and priorities of the AFMNE, thereby reducing its ability to carry out assigned missions and tasks. Changes in the security environment, global security challenges and technological developments require constant adjustment of defence and the AFMNE. A planned long-term development and equipping the AFMNE will be made in accordance with the key challenges: - achieving the necessary structure and organization of the AFMNE, - preparation and participation in international operations, - achieving readiness of the declared forces, - equipping the AFMNE to meet the needs of national security and NATO integration. The most significant risks in achieving the required military capabilities are: - adoption of the projected defence costs below the level defined by the SDR or a substantial reduction of the defence budget, - reduction or withdrawal of the funds from the projects defined in the defence budget for the modernization of the infrastructure, - redefining the goals and priorities, - implementation of unplanned projects or tasks (directly reducing the resources available). ## 9. Conclusion The AFMNE will be developed as a reliable cohort of armed forces for protecting national security and Montenegro's integration into the system of collective security and defence. As a starting point for the development of the AFMNE, the following has been taken: the assessment of risks and threats to national security, joining NATO and the EU (as top foreign policy priorities) and international commitments. The key factors for the development of the defence system of Montenegro are: low probability of a military threat to the security of Montenegro, achieving the required level of interoperability with NATO, asymmetric and non-military threats to the security of the country and unfavourable economic conditions. Missions and objectives have been redefined, which are the basis for the development of skills and normative documents: 1) the defence of Montenegro through active cooperation with allies and partners; 2) contribution to building and maintaining peace in the region and the world; and 3) support to civil authorities in crisis. Viewing the current situation and the progress made realistically, future development goals of the defence system and risks that could slow down or jeopardize achieving the required level of development of military capabilities clearly present themselves. Due to the commitment of the concept of collective security and defence, the AFMNE does not need to develop a wide range of capabilities, rather its focus will be placed on reaching capabilities that will enable an effective response to threats of national security and the system of collective security. In this way, high cost of development of the AFMNE are avoided, which would be necessary in the event of the country having to take care of its own self-defence. Montenegro will continue to contribute to strengthening international and regional security through participation in international operations led by the UN, NATO and EU. For this purpose, a special emphasis will be placed on developing the capacity of the declared forces and reaching their readiness by 2017. Despite abandoning the brigade for battalion organization, the AFMNE will continue to keep the three branches, but without a unified headquarter. The focus in the development of land forces will be on equipping and training the infantry battalion, which will be the largest and strongest combat unit. In addition, the infantry battalion will be the basic unit for assigning troops for international operations and operations related to collective defence when Montenegro becomes a member of NATO. The air force will keep its helicopters particularly in developing air transport facilities and aviation operations centre, the reason for this being that the ASDE programme and future involvement in the NATO Integrated Air and Missile Defence System can be established. The plan is to acquire medium multipurpose helicopters which will have the capacity to carry out military and civilian tasks and in the long-term a military surveillance radar system will be procured as well. In cooperation with neighbouring countries and NATO, the issues of monitoring and the control of airspace will be addressed, while the issue of airspace protection will be addressed within the collective security system. The focus in developing the navy will be on purchasing patrol boats, completing the coastal system of radar marine surveillance and the national marine operations centre. The long term goal is the development units of the AFMNE so that they are deployable, efficient, equipped and staffed by trained and motivated personnel. Decentralization of command function is planned, by allocating/assigning daily commanding over the AFMNE to the Command Operations Centre, while the General Staff will be the professional and staff entity of the Ministry of Defence and will deal with the implementation of defence policy, planning the use of the AFMNE, development of military cooperation, doctrine and normative documents. In terms of legislation, focus will be placed on adapting national legislation to enable participation of the AFMNE units in collective defence and amending legislation that will improve the management and disposal of the defence budget. By implementation of key development priorities of the Strategic Defence Review, the Ministry and the AFMNE will be able to meet the challenges and responsibilities in accordance with the Constitution, laws and international commitments. # 10. List Of Acronyms | AEO | - | Ammunition/Explosive ordnance | |-------------|------------------------------------------------|------------------------------------------------------------------------| | AFMNE | - | Armed Forces of Montenegro | | AMDS | - | Air and Missile Defence System | | AME | - | Armaments and Military Equipment | | AS | - | Airspace | | ASDE | - | Air Situation Data Exchange | | BULCOD | - | Bulgarian Codification (software used by the Bulgarian military in the | | | system of codification) | | | C2 | - | Command & ControlC2I - Command, control, information | | C3I | - | Command, Control, Communication, Information | | CBRN | - | Chemical, Biological, Radiogical, Nuclear | | CFSP | - | Common Foreign and Security Policy of the EU | | CIS | - | Command Information System | | CL | - | Civilian | | COC | - | Command Operations Centre | | CS | - | Contract Soldier | | CSDP | - | Common Security and Defence Policy of the EU | | EI | - | European Integrations | | EU | - | European Union | | FM | - | Formation Position | | GDP | - | Gross National Product | | GS AFMNE | - | General Staff of the AFMNE | | HF | - | High Frequency | | HRIS | - | Human Resources Information System | | ICT CORE | - | Information Communication System | | ISAF | - | International Security Assistance Forces | | LF | - | Land Forces | | MEDEVAC | - | Medical Evacuation | | MIMS | - | Maritime Information Management System | | MMC | - | Military Medical Centre | | MoD | - | Ministry of Defence | | MONDEM | - | Montenegro Demilitarization (Programme for the destruction of surplus | | | weapons and ammunition in Montenegro) | | | NATINAMDS - | NATO Integrated Air and Missile Defence System | | | NATO | - | North Atlantic Treaty Organisation | | NCB | - | Nuclear, Chemical, Biological | | NM | - | Nautical mile, 1 852 m | | OCC | - | Operational Capability Concept | | OSCE | - | Organization for Security and Co-operation in Europe | | PfP | - | Partnership for Peace | | PG | - | Partnership Goals | | ROL-1 | - | Medical support of small units, including first aid and triage | | SAR | - | Search and Rescue | | SCH | - | Stationary Connectivity Hub | | SDR | - | The Strategic DefenceReview | | UN | - | United Nations | | UNDP | - | United Nations Development Program | USA - The United States of America VHF - Very High Frequency ## A-1. Human Resources Human resources are a key factor in all organizations and, in the defence system of Montenegro, are the most important resource that the state possesses. In addition, this must be seen as a key resource for meeting national goals, such as the Euro-Atlantic and European integration. Bearing in mind that a professional member of the AFMNE besides military education must have knowledge of international relations, cultures of other nations and that they must be ready to be engaged outside the territory of Montenegro, attracting, recruiting and retaining quality personnel who can deliver the assigned tasks will be the main challenge for the management of the Ministry of Defence and the Directorate for Human Resources. For this purpose, it is necessary to pay special attention to each and every member of the Ministry of Defence and the AFMNE in terms of professional development, career advancement, quality of life and care of their families. ## A-1.1. Human Resources Management Given the importance of human resources, the Ministry of Defence is making efforts to create an integrated, modern, transparent, efficient and effective human resources management system. To this end, human resource management will be implemented through four programme areas: provision of staff, professional development, personal support and outflow of personnel. Staff provision is implemented through planning and assessment of staffing needs, as well as recruitment and selection of personnel. The current method of staff provision is regulated by the Law on the AFMNE and the by-laws. Due to the size of the AFMNE and the limited resources (human and financial), recruitment of officers will be performed in two ways. The first method involves sending the most successful high school students to military academies in partner countries, while the other involves admission of non-military university graduates who would have later completed an officer course, and continue building their careers in the AFMNE. The NCO corps is recruited among those military contractors who while in the AFMNE showed the best results and the development of their military and NCO career is viewed as a single process. A soldier's career begins in units, starting from basic military training, where soldiers gain initial military skills and knowledge, and ends with an advanced military course, where soldiers acquire the knowledge and skills necessary to function as leaders at a team/group level. Civil servants are employed by announcing vacancies by the Human Resources Management Authority, based on the expressed needs by the Ministry of Defence. Serving in the reserve is regulated by the Law on Defence, Regulation on Military Work and Regulation on Material Obligation. The AFMNE Reserve Forces can be divided into an active and inactive reserve. The active reserve is a trained reserve corps, which is engaged in operations and missions when skills of special interest are needed, but it is not cost-effective to have them as permanent personnel. An adequate model of engagement of an active reserve has not been found yet. Professional development will enable education, training and professional development of staff, which will lead way to a much greater mobility of staff. Professional development is regulated by the Law on the AFMNE and other regulations in the field of defence. The Department for Human Resources has developed a unique information system for monitoring and directing staff (CIS and COC), which is an essential prerequisite for routing, tracking and human resource development. Personal support is a set of activities aimed at meeting the needs of each individual, especially the care of one's physical and mental health, as well as quality of life, which includes taking care of the family. A significant improvement in order to improve the living standards of those employed with the Ministry of Defence and the AFMNE has been made by addressing housing needs, which is a significant motivating factor for hiring young staff. ## Personnel Outflow A coordinated inflow and outflow of personnel will enable professional development of junior staff, improve staff quality and rejuvenate personnel. A planned discharge, with the care of the employees whose jobs were terminated within the AFMNE organization, will build a positive image of the company as an employer that cares about its employees, which will provide inflow of much better personnel in the future. ## A-1.2. Personnel Structure The Ministry of Defence systematized 241 job posts (not including the General Staff), of which 47 jobs are intended for officers and non-commissioned officers and 35 for either civil servants or military personnel. Currently, the Ministry of Defence consists of 202 persons of whom 33% are military personnel and 67% civil servants and employees. The share of women within the Ministry of Defence employees is 40.39%, half of whom are university graduates. The Government of Montenegro adopted the Decree on the Organization and Formational Structure and Size of the AFMNE, which was reduced from 2,356 to 2,094 formation positions (64 Formation positions in the General Staff). The AFMNE currently has 1,858 people deployed, of whom 232 officers, 803 NCOs, 555 contract soldiers and 261 civilians. The Decree of the Government of Montenegro prescribes the number and size structure of the active reserve of 400 people. Due to lack of funding, introduction of an active reserve is planned for 2017. In this planning stage introduction of inactive reserves will not be considered. ## A-1.3. Education And Professional Training Of Personnel Constant changes of the security environment and future obligations within the system of collective defence call for continuous staff training. The education and training of staff is adopting new knowledge, skills and habits. These newly acquired skills serve as the basis for admission to the security system and career development. Officers' education Training of officers is conducted through basic academic education and professional training. Basic academic education is carried out through training of cadets in foreign military ![49_image_0.png](49_image_0.png) academies and scholarships to civilian universities in Montenegro. Command-staff and general staff training, as well as higher levels of military education are exclusively conducted abroad at prestigious military educational institutions. Montenegrin cadets Current legislation stipulates that in order to receive a commission one is required to have completed a four year higher education. For promotion to the rank of colonel one should have completed a staff command level or hold a master's degree. In consideration for promotion to the rank of general, one should have a school of operational and strategic level completed, or hold a doctoral degree. Development of non-commissioned *officers* NCO career development begins after completion of the Basic NCO Course, where the most advanced soldiers acquire the necessary knowledge and skills to function as a commander of a department and are promoted to an initial non-commissioned rank. The second stage of development of non-commissioned officers continues at a leadership course for the first duties of non-commissioned officers at the platoon level and as specialized instructors. In further career development, NCOs are trained for the tasks of the first non-commissioned officers at the company level, non-commissioned officers at the battalion level and higher specialized instructors. Development of non-commissioned officers ends at the higher school for non-commissioned officers, where non-commissioned officers acquire skills to function as the first/major NCOs of a battalion, a brigade/base and the General Staff, as well as for certain NCO staff duties in units of the AFMNE at a brigade and General Staff levels, and NATO command staffs. The Basic and Leadership courses are held at the training centre, while Advanced and Senior NCO course are held in military educational institutions of NATO and partner countries. ## A-1.4. Situation Analysis The main features of the existing system of human resource management are: a) Integrated management of human resources By previous amendments to the organizational structure of the Ministry, the Department of Human Resources took over the duties as defined by the framework J-1. In this way, the efficiency and productivity of human resources and the AFMNE has improved. The Ministry of Defence should direct their efforts towards the development of HR policies, while their implementation should lie within the responsibilities of the AFMNE. ## B) Unbalanced Organizational Structure In Relation To The Standards And Principles Of Organization Of Nato Member Countries Of the total number of professional members of the AFMNE, 13.8% are officers, 41.7% noncommissioned officers, 33% contract soldiers and 11.5% civilians. The current structure of the staff in the AFMNE who are: non-commissioned officer - officer - contract soldier is in the ratio of 1:3:2 and is not in accordance with the needs and best practices of developed countries. ## C) Unplanned Outflow Of Personnel The current organizational structure is characterized by a surplus of non-commissioned officers and civilians, and a lack of officers and contract soldiers. The current situation indicates a problem in an insufficient number of contract soldiers and is currently around 20%, while the percentage of officers is 25% compared to what is envisaged by the AFMNE formation. | Year | 2008 | 2009 | 2010 | 2011 | 2012 | | | | | | |-------------------|--------|---------|--------|---------|--------|---------|--------|---------|----------------|----| | Inflow/Outflow | Inflow | Outflow | Inflow | Outflow | Inflow | Outflow | Inflow | Outflow | Inflow Outflow | | | Officers | 9 | 7 | 17 | 6 | 9 | 52 | 5 | 82 | 14 | 12 | | Contract soldiers | 172 | 98 | 109 | 24 | 74 | 36 | 41 | 38 | 2 | 14 | Due to an unplanned outflow of personnel caused by amending the Law on Pension and Disability Insurance, it was impossible to provide adequate new personnel. ## D) Current Pyramidal Structure Of Officer Ranks And Age Structure Of The Professional ![50_Image_0.Png](50_Image_0.Png) Staff Is Unfavourable Organizational structure of the AFMNE does not allow establishment of the proper pyramidal structure of officer ranks since the projected number of high ranks is disproportionate to the overall structure. ![51_image_0.png](51_image_0.png) The average age of professional military personnel is 39 years, of which the average age of officers and non-commissioned officers is 39 years and 48 years of civilians. The age structure of contract soldiers, which is 29 years of age, is particularly unfavourable. Over 35% of the contract soldiers are older than 30 years. Age structure of Military staff | Up to age 30 | 31-40 | 41-49 | | |-------------------|---------|---------|----| | Contract soldiers | 338 | 198 | 18 | Table 4: Age structure of contract soldiers The current method of monitoring and evaluation of each member of AFMNE, which occurs quadrennially, has not provided an adequate assessment of the professional staff - both of that which is above the standard and the one which does not satisfy. Based on our own experience and the experience of developed countries - NATO members, a new Regulation on the Evaluation of Military Personnel has been adopted. Through an annual assessment and a changed structure of the elements of assessment, a more realistic picture of the work performance of each individual will be obtained. Due to an underdeveloped system of career predictability and an underdeveloped "abilityfunction" principle, in some cases, the best qualified and most capable personnel do not hold adequate posts, which is a demotivating factor. ## A-1.5. Planned Personnel Structure Of The Armed Forces Of Montenegro Based on the planned reorganization of the AFMNE and the transition from brigade to battalion organization, the number of personnel will amount to 1.950 people, which is a 5% decrease. It is planned to establish a new infrastructure by the end of 2014. It is anticipated that the problem of surplus military equipment and infrastructure will have been solved by 2018. This will allow rationalization of military strength in terms of personnel and its reduction to 1,800 persons. The reduction will apply primarily to the navy and logistics. It is evident that the main problem when improving the personnel structure is a lack of officers and common soldiers. The designed structure is based on the ratio of noncommissioned officers - officers - soldiers 1:2.5:3.5 and primarily refers to the land forces. The projected structure of personnel in the navy and the air force because of the specificity and the required level of technical knowledge will include a much smaller number of troops in relation to the structure of officers and non-commissioned officers. It is planned to replace formation positions of NCOs by soldiers in order to establish the desired structure of personnel. | Category of | (+) Surplus | | | | | |---------------|---------------|-------------------|----------------------|-----------|------| | personnel | Formation | Current staffing | (-) Lack | Projected | | | | | | structure from 2015 | Projected | | | | | | structure from 2018 | | | | Officers | 289 | 232 | - 57 | 260 | 240 | | NCOs | 872 | 803 | - 69 | 780 | 640 | | Soldiers | 693 | 555 | - 138 | 670 | 720 | | Civilians | 240 | 261 | + 21 | 240 | 200 | | Total | 2094 | 1831 | - 264 | 1950 | 1800 | ## A-2. Military Intelligence The Defence Law provides that military intelligence, counterintelligence and security activities will be organized and carried out by the Department of Military Intelligence and Security Affairs as an organizational unit of the Ministry of Defence. The government has established Regulation Amending the Regulation on Internal Organization and Job Classification of the Ministry of Defence in relation to the internal organization and job classification in the Department of Military Intelligence and Security Affairs, thus being formed by the Department of Military Intelligence and Security Affairs. Within the implementation of the Law, the Regulation on the Manner of Military Intelligence, Counterintelligence and Security Activities and the Regulation on the Form and Manner of Issuing Identification Cards have been adopted. With its implementation, preconditions have been created for development of military intelligence, counterintelligence and security elements in the units of the AFMNE, in accordance with its mission and objectives, which will result in raising the level of readiness and capability of military intelligence personnel. Cooperation and coordination within the national security system is imposed as a priority. Already in its initial phase, the Department coordination with government agencies and institutions will be initiated, primarily with the National Security Agency and the Ministry of Interior (MoI), the Police Directorate and the Directorate for Emergency Situations of the Ministry of Interior, and bilateral agreements on cooperation will be signed, in which the procedures and areas of future cooperation at the strategic and operational level will be specified in detail. Construction of the full operational and functional capabilities of the elements of the intelligence architecture involves achieving effective and optimal use of intelligence capabilities through: - Establishing intelligence architecture at the Ministry of Defence; - Filling key positions with adequate personnel (clerks, employees and professional military personnel); - Adoption of the necessary by-laws, doctrinal documents, standard operating procedures and other documents regulating the work in this field; - Creation of dedicated military and intelligence capabilities in the AFMNE; - Establishing mechanisms for coordination and cooperation at the national level; - Planning the education and training of military intelligence personnel at home and abroad; - Equipping the AFMNE intelligence capabilities with dedicated equipment to achieve the capabilities taken over through the Partnership Goals (PGs); - Achieving interoperability with NATO forces and the possibility of using dedicated military and intelligence capabilities to support Military units in missions abroad. ## A-3. Information And Communication Systems Since the establishment of the Ministry of Defence the first Master Plan for the Development of Information and Communication Systems in the Ministry of Defence for the period 2008 - 2012 had been implemented to a high extent. The implementation of the Master Plan created the foundation for further development of modern communication, information and communication and command and information systems. The most technically and technologically obsolete telecommunications equipment and systems were put out of operational use. An ICT CORE that is compliant with NATO standards and a server farm for implementation of IT services was established. Also, by introducing new telephone exchanges, the phone system was upgraded, and a telecommunication infrastructure was built at several locations. The processes of digitization of radio-relay networks, acquisition of NATO-compatible radio equipment within the HF band and devices called tactical radios in the VHF band for the declared land forces and modernization of the control of the local waters are under way. All needs in this area can be met by achieving a proper balance of national and NATO compatible systems. NATO compatible systems should be implemented in accordance with the dynamics of the integration process, when and where there is a real need, especially with the declared forces acting jointly or in the vicinity of the NATO structure, and in the monitoring system of the local waters and airspace. For this purpose, it is necessary to continue the development of military telecommunications infrastructure to achieve full digitization, with adequate protection of transmission routes until achieving a satisfactory level of C3I capability. Equipping units with information and communication (hereafter IC) devices and systems will continue. Adequate links to the stationary communication centres will be provided, in order to meet the required CIS functionality in the area of temporary deployment of units (inside and outside the borders of Montenegro), as well as continuous and smooth command operations in real time. The navy and air force will be equipped with appropriate communication and command and information systems for transmission of data and management of situations in real-time so that they can carry out national tasks and duties within the EU and NATO. It is planned to build the capacities of the operations centre up to the CIS level with a unique recognizable operational picture (JCOP). The development and implementation of military information systems and systems for managing the flow of information (office work), systems for material and financial operations, operational logistics, personnel issues, supply and maintenance will continue. ![55_image_0.png](55_image_0.png) A-4. PROJECTION OF FUTURE STRUCTURE OF THE **AFMNE** A.4-1. Projection of future size of the Armed Forces of Montenegro | | Intelligence and Reconnaiss ance Company | | | | | | | | | | |-----------------------|-----------------------------------------------|--------------------|-------------|-----------|-----|----|-----|----|----|----| | | The Air | | | | | | | | | | | Units | GS of the | Infantry | The Navy of | Logistic | | | | | | | | | Force of | | | | | | | | | | | | AFMNE | Battalion | AFMNE | Battalion | | | | | | | | | AFMNE | Military Training | Honour | Signal | | | | | | | | | Police | Centre | Guard | Company | | | | | | | | | Company | | | | | | | | | | | Personnel projection | 85 | 600 | 350 | 200 | 325 | 80 | 110 | 50 | 80 | 70 | | for 2015 TOTAL | 1950 | | | | | | | | | | # A-5. Defence Costs In Relation To Lower Growth Of Gdp Scenario The basic year taken for planning is 2013, based on projections of the Ministry of Finance. The projections are the basis for the development of the Strategic Defence Review, and the starting point for the Long Term Defence Development Plan. The projection consists of three main parts: I - Macroeconomic projections of GDP for the period 2014-2023; II- Projected cost structure of the defence budget for the period 2014-2023 - expressed in monetary terms; III - Projected cost structure of the defence budget for the period 2014-2023 - expressed in percentages. It is necessary to point out that an unstable international environment makes future economic development unreliable and difficult to predict. Factors affecting the uncertainty of macroeconomic projections in Montenegro are the need for consolidation of the banking system, slower economic activity and its decrease caused by weaker demand, uncertainty about the future economic growth and necessary fiscal adjustment in the peripheral countries of the eurozone with which our country has strong economic ties. | Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |----------------|-----------------------------------------------------------------------|----------------------|-----------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------| | Administration | €28.47 €28.88 | €27.86 €28.60 €28.95 | €30.40 €30.99 €34.06 €36.11 | €38.27 | | | | | | | | Operations | €9.49 €11.00 | €12.28 €14.30 €15.01 | €16.95 €18.59 €20.44 €21.66 | €22.96 | | | | | | | | Modernization | €5.18 | €5.96 | €7.08 | €8.17 | €9.65 €11.11 €12.39 €13.62 €14.44 | €15.31 | | | | | | Total | €43.14 €45.84 €47.21 €51.07 €53.62 €58.47 €61.97 €68.12 €72.21 €76.54 | | | | | | | | | | | Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------| | GDP growth | 1.5% | 2% | 3% | 4% | 5% | 5% | 5% | 5% | 5% | 5% | | Amount | €3,595 | €3,667 | €3,777 | €3,928 | €4,125 | €4,331 | €4,591 | €4,866 | €5,158 | €5,467 | | Defence share | 1.20% | 1.25% | 1.25% | 1.30% | 1.30% | 1.35% | 1.35% | 1.40% | 1.40% | 1.40% | | Amount | €43.14 | €45.84 | €47.21 | €51.07 | €53.62 | €58.47 | €61.97 | €68.12 | €72.21 | €76.54 | | Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------| | Administration | 66% | 63% | 59% | 56% | 54% | 52% | 50% | 50% | 50% | 50% | | Operations | 22% | 24% | 26% | 28% | 28% | 29% | 30% | 30% | 30% | 30% | | Modernization | 12% | 13% | 15% | 16% | 18% | 19% | 20% | 20% | 20% | 20% | | Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | Table 6: Real GDP growth and defence share *(in € mill.)* Table 7: Cost structure of the defence budget (in € mill.) Table 8: Cost structure of the defence budget (%) Given the high share of administrative-personnel costs (66-70%) of the total budget, it is evident that the current structure of the budget is inadequate. It is also obvious that allocations for the modernization of equipment do not meet the needs for equipping the AFMNE. The tendency is to increase spending on modernization to the projected level of 20%, in line with the expected increase in GDP. With GDP rise and an increasing defence budget, the share of allocations for administrative and personnel expenses should gradually decrease. A-6. PROSPECTIVE LOCATIONS OF THE THE ARMED FORCES OF MONTENEGRO | | BUILDING | | | | | | | |------------------|-------------|-------------------------------|---------------------|---------------------|----|---------|---------------------| | | LAND (ha) | CONSTRUCTIONS | Prospects | | | | | | No. | MUNICIPALITY | FACILITY | FACILITY PURPOSE | RMNE (ha) | No | Area m2 | | | 1 | Žabljak | Veliki Štuoc | Stationary | | | | | | connectivity hub | 4.1292 | 11 | 1,590 | Good | | | | | 2 | Berane | Bjelasica | Stationary | | | | | | connectivity hub | 3.4659 | 12 | 1,493 | Good | | | | | 3 | Danilovgrad | Barracks "Milovan Šaranović" | Barracks | 91.2663 | 37 | 25,418 | Good | | 4 | Danilovgrad | Taraš | Ordnance Warehouse/ | 9.9827 | 13 | 1,792 | Good | | 5 | Kolašin | Barracks "Breza" | Barracks | 4.0497 | 0 | 3,163 | Good | | 6 | Nikšić | Brezovik | Mixed | | | | | | Warehouse | 141.4277 | 37 | 11,124 | Good | | | | | 7 | Nikšić | Barracks "13. jul" | Barracks | 19.3813 | 40 | 11,742 | Good | | 8 | Nikšić | Kapino Polje | Warehouse | 4.0196 | 7 | 566 | Temporary Location | | 9 | Nikšić | Trebjesa 1 | Warehouse | 5.3261 | 7 | 7,367 | Temporary Location | | 10 | Nikšić | Trebjesa 2 | Warehouse | 0.9106 | 2 | 462 | Temporary Location | | 11 | Podgorica | Podgorica - MoD Building | MoD building | 0.7154 | 1 | 3,893 | Good | | 12 | Podgorica | Podgorica - MMC | Health facility | 0.3091 | 1 | 5,557 | Good | | 13 | Podgorica | Barracks Golubovci | Airport | 83.5966 | 91 | 25,787 | Good | | 14 | Pljevlja | Židovići | Warehouse | 59.6414 | 17 | 3,063 | Good | | 15 | Bar | Crni Rt | Stationary | | | | | | connectivity hub | 58.6866 | 9 | 1,950 | Good | | | | | 16 | Bar | Barracks "Pero Ćetković" | Barracks | 13.9632 | 29 | 13,568 | Good | | 17 | Bar | Navy Command Building | Command | 1 | 1 | 1,662 | Good | | 18 | Cetinje | Lovćen | Stationary | | | | | | connectivity hub | 3.4222 | 3 | 188 | Good | | | | | 19 | Herceg Novi | Obosnik | Maritime | | | | | | surveillance | 7 | 1,182 | Good | | | | | | 20 | Ulcinj | Mavrijan | Maritime | | | | | | surveillance | 25.2918 | 8 | 819 | Good | | | | | Barracks | | | | | | | | | 21 | Barracks | ''V.K.Volođa'' | Barracks | 8.0000 | 10 | 3,000 | Good | | Pljevlja - part | | | | | | | | | 22 | Dobre Vode | - | Warehouse | Temporary location | | | | | 23 | Bar | Vrsuta | Air control | Good | | | | | A-7. MAIN PRIORITIES OF MODERNIZATION Capacities Estimated costs | Means | | |---------------------------------------------------------------------|----------------------------------------------------|-----------------------------------------------------------------------------------------------| | | LAND FORCES | | | | Mobility and Movement | | | Tactical air transport | - | Multipurpose helicopters | | Fire support to land forces | - | | | Search and rescue | - | | | Increasing toughness and force protection | 8-10 million Euros | Light Armoured Vehicles | | | Command and Control | | | Unified system of command and control | 1 million Euros | Reconstruction of existing infrastructure and the | | Capacity of secure | establishment of the command operations centre | | | communication with NATO | Declared forces | | | The mine action | 0.5 million Euros | Equipping engineering unit with detection devices | | Tactical communication | 1.5 million Euros | Equipping with means of communication, II declared company | | Protection of CBRN | 2.5 million Euros | CBRN personal and collective equipment | | | AIR FORCE | | | | Sovereignty over the airspace | | | Command and control | 0.5 million Euros | Forming Air Force Operations Centre. Means of communication, information and other equipment | | Technical accuracy reconnaissance, | 0.4 million Euros | Repair of "Gazela" helicopters and modernization | | transportation | Radar for airspace surveillance with the necessary | | | Air surveillance | 17-20 million Euros | infrastructure | | SAR activities - Air Policing support | 30 million Euros | Multipurpose helicopters | | | NAVY | | | | Sovereignty at Sea | | | Sea Supervision | 0.4 million Euros5 | X Band Radars for Sea supervision | | Maritime Control | 1.8 million Euros | Small repairs with docking, 2 RTOP and PO 91 | | Maritime Control | 25 million Euros 6 | Purchase of two new or more modern patrol boats | | "Boarding" capacity | 0.5 million Euros | Equipment for personal and collective maritime raiders and divers | | T O T A L | cca 70,00 mill. Euros | | 50.4 million Euros remain to be paid in 2013 for the project of maritime supervision "Maritime Information Management System - **MIMS**", which includes a radar acquisition. 6Funds will be provided from the sale or conversion of the existing vessels. # A-8. Organisational Structure Of The Ministry Of Defence ![60_image_0.png](60_image_0.png)