The Montenegrin government has approved a draft decision to grant a 30-year concession for Podgorica and Tivat airports to the highest-ranked bidder – the South Korean Incheon International Airport Corporation / Incheon Airport Consortium – according to the Telegram channel Serbian Economist. However, the final decision has not yet been taken: it must be approved by the Montenegrin Parliament.
Parliamentary approval is required because the value of Aerodromi Crne Gore’s assets is estimated at approximately EUR265 million, and in Montenegro, decisions regarding state property of such value fall within the remit of the legislature. Transport Minister Filip Radulović has separately emphasised that this is not a matter of sale or privatisation, but rather a management model under which the land, existing infrastructure and all newly constructed facilities remain the property of the state upon the expiry of the concession.
The financial model presented by the government amounts to a total of around EUR1 billion, but there is an important caveat here. This is not just direct budgetary revenue, but the cumulative financial effect of the deal: EUR100 million as a one-off payment upon signing the contract, around EUR600 million in variable concession fees amounting to 35% of the airports’ annual gross revenue over 30 years, and a further EUR300 million in mandatory investments in the modernisation and expansion of infrastructure.
According to the published parameters, by the end of 2029 the concessionaire must invest EUR132 million, including EUR54 million in Podgorica Airport and EUR78 million in Tivat Airport. The overall investment programme provides for the construction of new terminals, the modernisation of existing facilities, the expansion of the total area of airport infrastructure to approximately 40,000 square metres, and an increase in passenger throughput.
