Corporación América Airports (CAAP) has challenged signals from the Montenegrin government that it could pursue an alternative to the long-running concession process for Podgorica and Tivat airports, bringing the financing and control of airport expansion into direct dispute. CAAP, the only remaining qualified bidder, said it was “extremely concerned” that Montenegro could abandon the private-concession model, under which the operator would finance airport expansion, in favour of a structure requiring the state or Aerodromi Crne Gore to secure the necessary investment.
The company said it submitted an improved bid on July 29, proposing an upfront concession payment of €101 million and annual payments equivalent to 35.21% of airport gross revenue throughout the concession period. The government is now considering the two investment structures while both airports require substantial capacity expansion. Under a concession arrangement, a private operator would finance a significant portion of the required investment in exchange for long-term operating rights and would pay concession fees to the state. A state-financed model would allow Montenegro to retain airport earnings and control, while requiring expansion to be funded through retained profits, borrowing, budget resources or another financing structure.
CAAP said airport management has estimated investment requirements at €250 million to €300 million. The government has not adopted that amount as its own financing estimate. The government said an interministerial group chaired by Prime Minister would accelerate the development of Podgorica and Tivat airports. The planned works include terminal expansion, additional gates and other infrastructure, with a target of completing works ahead of the 2027 summer season. Montenegro also plans to prepare a new long-term airport master plan after sustained passenger growth increased pressure on existing infrastructure.
The concession procedure had already faced uncertainty in July following the withdrawal of South Korea’s Incheon International Airport Corporation from the tender. CAAP maintains that the procedure remains legally unresolved and that terminating it after bidders had spent years completing qualification and tender requirements would undermine confidence among foreign infrastructure investors in Montenegro. The company has also connected the dispute with Montenegro’s EU accession ambitions. This represents CAAP’s position and has not been publicly endorsed as a conclusion by the European Commission. The concession procedure has lasted approximately seven years, making the handling of its continuation or termination relevant to procurement predictability as Montenegro advances toward EU membership.
At the same time, the investment decision is becoming more pressing as passenger traffic reaches record levels and airport capacity faces increasing pressure during the summer tourism season. The government therefore faces the need to secure airport investment regardless of the ownership and financing structure ultimately selected.
A state-control model would allow Aerodromi Crne Gore to retain future airport profits, while higher passenger volumes could provide greater capacity for the company to finance development itself. A concession would transfer more of the construction and financing risk to a private operator, while Montenegro would surrender part of the airports’ future cash flow in exchange for the concession arrangement. The decision consequently involves both the €101 million upfront payment proposed by CAAP and the financing and control implications of potentially funding between €250 million and €300 million of airport expansion through the state-controlled model.
