The process of transferring Montenegro's airports to concession is entering the final stretch. Leading candidates include Turkey's TAV, South Korea's Incheon International Airport Corporation and Luxembourg's Corporacion America Airports (CAAP). Representatives of these companies recently visited Podgorica and Tivat airports to see their infrastructure and discuss possible investments with Montenegrin authorities.
What does the concession mean for Montenegro airports?
Transfer of management of Montenegrin airports to long-term concession is seen as a key step to attract strategic investor, which will be able to modernize airports, increase their capacity and improve overall operational efficiency.
Montenegro's Ministry of Transport said potential concessionaires had studied the current infrastructure, assessed operational capabilities and expansion prospects of the airports. The main goal of the concession process is to attract investment in the development of airports that have not undergone significant modernization since 2019.
What is a concession?
A concession is a form of public-private partnership, in which the state transfers the right to operate and manage a facility to a private company for a specified period. Under this agreement, the concessionaire undertakes to invest in infrastructure, modernize and improve the efficiency of the facility, and also pays certain fees to the state. After the end of the concession, the airports are returned to state management or a new contract is concluded with a private operator.
Who is bidding to manage Montenegro's airports?
Among three main contenders The concession is awarded to leading international airport operators:
- Incheon International Airport Corporation (South Korea) – operates South Korea’s largest airport in Seoul. The company had already participated in concession tenders for the airports of Zagreb and Belgrade, but lost to the French Vinci. It also operates airports in Manila, Jakarta and Kuwait.
- Corporación America Airports (CAAP) (Luxembourg) – owns 52 airports in Latin America and Europe, including Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy. Previously participated in the competition for the Belgrade airport concession.
- TAV Airports (Türkiye) – one of the largest airport operators in the region. It operates Skopje and Ohrid airports in North Macedonia, and is involved in the operation of Zagreb Airport through a partnership with Aéroports de Paris.
Turkish operator TAV is considered as one of the strongest candidates thanks to its experience in the region and successful management of airports in South-Eastern Europe.
Why is the Montenegrin airport concession so important?
The transfer of Podgorica and Tivat airports to concession is an important strategic decision that should bring a number of key advantages:
- Infrastructure modernization – the new operator is investing in the reconstruction of terminals, runways and service areas.
- Increase in passenger traffic – an increase in the number of flights and expansion of the geography of flights is expected.
- Attracting new airlines – improved operating conditions will make Montenegrin airports attractive for international carriers.
- Economic growth – the development of airports will have a positive impact on tourism industry, business and general transport accessibility of the country.
Unions express concern
Trade unions of Montenegrin airports express concern regarding the possible transfer of management to private operators. They call on the government to engage in open dialogue and consider alternative options, including the possibility of holding a referendum on the issue. The workers stress the strategic importance of airports for the country's economy and the need for careful consideration in making a decision on the concession.
The importance of concession for the country's infrastructure
In his New Year's address, Montenegrin Prime Minister Milojko Spajic noted that 2025 will be the beginning of a major investment cycle, including the development of infrastructure such as roads, ports and airports. This underlines the importance of making an informed decision regarding the management of the country's airports.
When will the final decision be made?
The decision to transfer the concession of Montenegrin airports is key to the further development of the country's transport infrastructure and economy. Attracting an experienced international partner can help modernize airports, increase their capacity and improve the quality of passenger service. However, it is important to take into account the opinions of all stakeholders and ensure transparency in the decision-making process.
In the coming months, the Government of Montenegro will continue to evaluate proposals from potential concessionaires and will consult with the public and professional communities. The final decision will be made taking into account the interests of the national economy, security and welfare of citizens.
Thus, the process of transferring the concession of Montenegrin airports is at a decisive stage. Successful implementation of this project can significantly increase the country's competitiveness in the international arena and improve the quality of transport services for residents and visitors of Montenegro.
