Government terminates concession process for Montenegro's airports, final decision moves to Parliament
The Government of Montenegro has cancelled the tender for the concession of Podgorica and Tivat airports and forwarded the proposal to Parliament for approval.
The decision was adopted at an electronic government session held on Thursday.
- The Ministry of Transport, which is responsible for the concession procedure, informed the Government and proposed that the process be terminated. The Ministry concluded that the bid received was inadequate and recommended that the Government adopt a proposal to formally end the concession tender launched in 2019. The Government accepted that recommendation and submitted a proposal to Parliament to terminate the procedure and cancel the public call for the concession of Montenegro's airports - Deputy Prime Minister Aleksa Bečić said at a press conference yesterday.
Last week, the Government announced that it had received an official letter from the consortium led by South Korea's Incheon International Airport Corporation (IIAC), informing the authorities that the consortium was withdrawing from the concession process for Airports of Montenegro.
- We recall that the process of considering a possible airport concession was launched with a clear objective - to secure investment, improve the quality of services, and ensure the further development of air transport, while fully safeguarding Montenegro's national interests. Should any interested investor conclude at any stage of the process that it is unable to meet the high standards required, this does not alter the Government's firm commitment that, in this or any future procedure, it will not accept any solution that fails to guarantee the full protection of Montenegro's vital interests - the Government said in a statement at the time.
Following the announcement, Luxembourg-American airport operator Corporación América Airports (CAAP) stated that it remained „fully committed to investing in Montenegro through the concession process for Airports of Montenegro“ and was „ready to continue participating in the procedure in accordance with the applicable legal framework and the decisions of the competent authorities“.
- From the outset, CAAP has participated in the tender process in full compliance with the requirements of the Request for Proposals, as well as the applicable legal and regulatory framework, with the objective of establishing a long-term partnership with the Government and investing in Airports of Montenegro in order to foster sustainable growth, enhance competitiveness, and achieve internationally recognised standards - the company said.
The concession procedure was launched in 2019 by the government of then-Prime Minister Duško Marković, despite opposition from parties that are now part of the ruling majority.
The government of Prime Minister Milojko Spajić had estimated the concession would generate around €1 billion over a 30-year period, including a one-off concession fee of €100 million, approximately €300 million in capital investment, and around €600 million in variable concession fees. Incheon International Airport Corporation offered to pay a variable concession fee equivalent to 35% of gross revenue.