According to Serbian Economist, Montenegro’s President Jakov Milatović has called for a suspension of the process to transfer the airports in Podgorica and Tivat to a concession, stating that the current model could cost the state hundreds of millions of euros.
A statement from the President’s Office notes that the government is implementing the concession procedure for Aerodromi Crne Gore based on a model developed back in 2019, even though the value of the airports and passenger traffic have increased significantly since then. Milatović believes that the current process does not reflect the true value of the assets, does not protect the state’s interests, and leaves airport employees without sufficient guarantees.
The President’s Office has sent a request to Montenegro’s Ombudsman for an urgent legal and financial analysis of the concession. The statement emphasizes that this concerns strategic infrastructure, and that, according to Milatović’s assessment, the government is attempting to shift responsibility for the controversial decision onto parliament.
Montenegrin authorities had previously proposed transferring the airports in Podgorica and Tivat to a 30-year concession to the South Korean Incheon Airport Consortium. The government claims that upon the concession’s expiration, all infrastructure will remain state-owned, and the total benefits from the deal could exceed EUR 1 billion.
According to the government, the terms of the deal involve investments in the reconstruction and development of airport infrastructure, the construction of new terminals, and the modernization of existing facilities. Supporters of the concession believe that without a major foreign operator, the airports will not be able to quickly reach a new level of service and capacity.
Milatović, on the other hand, insists that the new deal must take into account the current value of the assets. According to the State Property Agency, the value of Aerodromi Crne Gore is approximately EUR264.4 million, which is nearly double the previous 2018 valuation.
The president proposes revising the terms of the deal. Among the parameters that, according to his office, should be included in a fair concession model are a minimum one-time payment of at least EUR200 million, a mandatory increase in passenger traffic of at least 7% per year, investments of at least EUR300 million, the preservation of existing employee rights, and a guarantee of no technological surplus in the first five years.
Milatović also warned that a poorly structured concession could lead to a reduction in the number of flights, higher airfare prices, and employee layoffs.
The airports in Podgorica and Tivat have different economic significance. Podgorica is the main business and administrative hub, while Tivat is critical for tourist traffic to the coast, including Budva, Kotor, Herceg Novi, and other resort areas. Therefore, the concession issue concerns not only airport management but also the entire model of tourism development, investment, and the country’s transport accessibility.
https://t.me/relocationrs/2819
