The process of granting concessions for Montenegro’s airports is entering its final stage. Among the leading candidates under consideration 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 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 could modernize the airports, increase their capacity, and improve overall operational efficiency.The Ministry of Transport of Montenegro stated that the potential concessionaires examined the current infrastructure, assessed operational capabilities, and considered the prospects for airport expansion. 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 grants 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 improved operational efficiency, and also pays certain fees to the state. After the concession period ends, the airports return to state management or a new agreement is signed with a private operator.
Who is bidding 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. It also operates airports in Manila, Jakarta, and Kuwait.Corporacion America Airports (CAAP) (Luxembourg)
– owns 52 airports in Latin America and Europe, including in Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy. It previously took part in the concession competition for Belgrade Airport.