The process of granting Montenegro’s airports a concession is entering its final stretch. Among the leading candidates are the Turkish company TAV, South Korea’s Incheon International Airport Corporation, and Luxembourg-based Corporacion America Airports (CAAP). Recently, representatives of these companies visited the airports in Podgorica and Tivat to familiarize themselves with their infrastructure and discuss possible investments with the Montenegrin authorities.
What does a concession mean for Montenegro’s airports?
The transfer of management of Montenegro’s airports into a long-term concession is seen as a key step toward attracting a strategic investor, who will be able to modernize the airports, increase their capacity, and improve overall operational efficiency.
The Ministry of Transport of Montenegro stated that the potential concessionaires studied the current infrastructure, assessed operational capabilities, and the prospects for expanding the airports. The main goal of the concession process is to attract investment in the development of the airports, which 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 to a private company the right to operate and manage an asset for a specified period. Under this agreement, the concessionaire undertakes obligations to invest in infrastructure, modernization, and improving the efficiency of the asset, and also pays certain fees to the state. After the concession period ends, the airports return to state management or a new agreement is concluded with a private operator.
Who is vying to manage Montenegro’s airports?
Among the three main contenders for the concession are leading international airport operators:
- Incheon International Airport Corporation (South Korea) – operates South Korea’s largest airport in Seoul. The company has already taken part in concession tenders for the airports in Zagreb and Belgrade, but lost to France’s Vinci. In addition, it operates airports in Manila, Jakarta, and Kuwait.
- Corporacion America Airports (CAAP) (Luxembourg) – owns 52 airports in Latin America and Europe, including Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy. It previously took part in the tender for the concession of Belgrade Airport.
- TAV Airports (Turkey) – one of the largest airport operators in the region. It manages the airports in Skopje and Ohrid in North Macedonia, and also participates in the management of Zagreb Airport through a partnership with Aéroports de Paris.
The Turkish operator TAV is considered one of the strongest candidates thanks to its experience in the region, as well as its successful management of airports in Southeast European countries.
Why is the concession of Montenegro’s airports so important?
The transfer of the airports in Podgorica and Tivat into concession is an important strategic decision that should bring a number of key benefits:
- Infrastructure modernization – the new operator will invest in the reconstruction of terminals, runways, and service areas.
- Passenger traffic growth – an increase in the number of flights and an expansion of the route network is expected.
- Attracting new airlines – improved operating conditions will make Montenegro’s airports attractive to international carriers.
- Economic growth – the development of the airports will have a positive impact on the tourism sector, business, and the country’s overall transport accessibility.
Trade unions express concern
The trade unions of Montenegro’s airports express concern about the possible transfer of management to private operators. They are calling on the government for open dialogue and consideration of alternative options, including the possibility of holding a referendum on this issue. Workers emphasize the strategic importance of the airports for the country’s economy and the need for a careful approach to making a decision on the concession.
The importance of the concession for the country’s infrastructure
In his New Year’s address, Montenegro’s Prime Minister Milojko Spajić noted that 2025 will mark the beginning of a major investment cycle, including the development of infrastructure such as roads, ports, and airports. This underscores the importance of making a well-founded decision regarding the management of the country’s airports.
When will the final decision be made?
The decision to grant a concession for Montenegro’s airports is key to the further development of the country’s transport infrastructure and economy. Bringing in an experienced international partner could help modernize the airports, increase their capacity, and improve the quality of passenger service. However, it is important to take into account the views of all stakeholders and ensure transparency in the decision-making process.
In the coming months, the Government of Montenegro will continue evaluating proposals from potential concessionaires and hold consultations with the public and professional communities. The final decision will be made taking into account the interests of the national economy, security, and the well-being of citizens.
Thus, the process of granting a concession for Montenegro’s airports is at a decisive stage. Successful implementation of this project could significantly increase the country’s competitiveness on the international stage and improve the quality of transport services for the residents and visitors of Montenegro.