Corporación América Airports (CAAP) has extended its bank guarantee for Montenegro’s airport concession tender until August 2027, keeping its offer for operating Podgorica and Tivat airports under a proposed 30-year concession active after the withdrawal of the previously preferred bidder, Incheon International Airport Corporation.
The extension allows CAAP to remain in the process, but it does not automatically secure the concession. Montenegro must determine whether the existing tender framework allows negotiations with the remaining bidder, whether CAAP’s offer still represents market value, or whether the process should be terminated or restarted. The decision comes as Montenegro’s airports have strengthened their financial performance, passenger traffic has increased and the state-owned operator has improved its position compared with the beginning of the concession process in 2019.
CAAP Keeps Offer Valid After Incheon Withdrawal
CAAP confirmed that it has maintained all required security instruments under the tender, including the renewed bank guarantee. The company said the extension demonstrates its continued readiness to invest in Podgorica Airport and Tivat Airport and establish a long-term partnership with the Montenegrin government.
The bank guarantee prevents CAAP from withdrawing without potential financial consequences during the validity period, but it does not represent confirmation that the full financing package for the concession investment programme has been secured.
A bid guarantee covers obligations connected with the tender offer, while equity financing, project debt and construction financing would need to be arranged separately for the implementation of the concession. CAAP is currently the only remaining bidder from the final stage of the tender. The company and Incheon submitted their offers in May 2025 after a wider qualification process that included several international airport operators.
The initial group of interested companies included:
- GMR Airports from India
- the Groupe ADP–TAV Airports consortium
- Corporación América Airports
- Incheon International Airport Corporation
After several withdrawals, only CAAP and Incheon remained for the final evaluation.
Tender Outcome Changed After Preferred Bidder Exit
The Tender Commission awarded 96.18 points to Incheon and 65.15 points to CAAP during the evaluation process. In April 2026, the government accepted a proposal to move towards awarding the concession to the South Korean operator, although a final concession agreement was never completed. Incheon formally withdrew from the process on July 18, 2026, without publicly disclosing the reasons for its decision.
The withdrawal removed the highest-ranked bidder and left Montenegro with CAAP’s offer, which received approximately 31 points fewer in the tender evaluation. The difference in scores requires additional assessment, including whether it reflected differences in technical, operational or financial proposals or resulted from evaluation procedures challenged by CAAP.
The concession process had already faced difficulties, including commission resignations, allegations of unequal treatment, disagreements over technical scoring and legal proceedings. CAAP previously challenged the procedure before the Administrative Court, arguing that changes in evaluation methods affected its position. The company stated that an earlier technical assessment should have remained decisive and that this would have placed CAAP as the leading bidder.
Government Must Assess Legal Route and Financial Value
Montenegro now faces a decision on whether it can proceed directly with CAAP or whether a new competitive process is required. Moving forward with the remaining bidder may be legally possible depending on tender documents and concession legislation, but significant changes to the original offer could raise questions about equal treatment.
Potential changes involving tariffs, investment deadlines, passenger forecasts, concession payments, employment obligations or risk allocation would require careful review. A transparent legal assessment and updated financial evaluation are expected to be required before any final decision. The concession process involves strategic infrastructure and will be assessed in terms of competition, equal treatment, public value and procedural consistency.
CAAP Brings International Airport Operating Experience
CAAP operates 52 airports across Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy. The New York-listed company handled approximately 86.7 million passengers in 2025. Its experience includes airport operations in developed European markets, emerging markets in Latin America and long-term public concession projects. The company has also committed to major investment programmes, including a framework in Armenia involving a new master plan with potential investment of up to $425 million through 2033.
CAAP’s reported Montenegro proposal includes approximately €319 million in investment in Podgorica and Tivat airports, around €63 million more than the investment figure associated with Incheon’s offer. The company also proposed establishing low-cost airline bases, with one planned by 2029 and another by 2034.
Investment Plan Requires Updated Schedule
Over the full 30-year concession period, the proposed €319 million investment represents an average of approximately €10.6 million annually. Airport investment value depends on the timing and structure of spending, particularly in the early years when terminal capacity, runways, taxiways, aprons, parking areas, security systems and baggage facilities require expansion. The original CAAP investment schedule reportedly envisaged construction beginning in March 2026. Since that deadline has passed, the programme would require updated planning.
The revised assessment would need to consider:
- updated design documentation
- permitting timelines
- construction costs
- passenger forecasts
- financing arrangements
Changes in inflation, equipment prices, interest rates and aviation-security requirements may have affected the purchasing power of the original investment commitment.
State Airport Operator Reports Strong Financial Results
Montenegro’s negotiating position has changed because Aerodromi Crne Gore has improved its financial performance.
The state-owned airport operator reported for 2025:
- €57.44 million in revenue
- €29.4 million in expenses
- €15.24 million profit
The company’s 2026 plan projects:
- €65.93 million in revenue
- €32.2 million in expenditure
- €15.67 million pre-tax profit
Aerodromi Crne Gore plans to allocate approximately:
- €18.06 million for airline incentives
- €16.8 million for capital investment during 2026
Passenger traffic also reached record levels. The operator handled its one-millionth passenger of 2026 by mid-June, earlier than in previous years. By June 21, Podgorica and Tivat airports had served almost 1.2 million passengers, while 21 new routes had been introduced.
Concession Case Focuses on Investment Capacity and Risk Transfer
The improved financial position of Aerodromi Crne Gore reduces the argument that private involvement is required to address an underperforming operator.
The concession rationale would instead depend on whether a private operator can:
- accelerate investment
- improve services
- extend the tourism season
- attract based aircraft
- assume construction and traffic risks
Aerodromi Crne Gore has recently been valued in official discussions at close to €265 million, although previous assessments produced lower valuations. The value of the concession cannot be measured only by comparing this figure with CAAP’s proposed investment programme.
The government must consider:
- upfront and annual concession payments
- retained taxes and dividends
- delivered capital investment
- transferred risks
- asset value at the end of the concession period
Tivat and Podgorica Require Different Development Strategies
Tivat Airport remains the more immediate operational challenge because of its highly seasonal traffic pattern. Strong summer demand creates capacity pressure, while weaker winter utilisation complicates the financial justification for major fixed investments. Expansion without year-round traffic growth could result in infrastructure being used intensively only during limited periods.
Podgorica Airport provides a more balanced platform for scheduled, business, diaspora and low-cost airline traffic. A based-aircraft strategy could improve winter connectivity and support tourism outside the peak season, although such operations typically require airline incentive programmes. The transparency of incentive costs is relevant because Aerodromi Crne Gore already plans to spend €18.06 million on airline incentives in 2026.
Employment and Public Ownership Remain Key Issues
A private operator could seek productivity improvements through automation, outsourcing and staffing changes. Such measures could reduce operating costs but may also create labour and political challenges.
Any concession agreement would need provisions covering:
- employee protections
- training requirements
- transition arrangements
At the same time, maintaining public ownership would require the government to approve a funded airport development plan, enable multi-year investment and strengthen professional management. A decision against concession without a clear public investment programme could delay further capacity improvements.
Renewed Guarantee Gives Government Time for Assessment
A new tender could restore competition and attract operators that previously withdrew, but it would also delay investment and create the possibility of further legal and procedural disputes. Proceeding with CAAP would provide a faster route only if the existing legal framework allows it and the company’s proposal remains financially and technically valid.
The renewed bank guarantee until August 2027 provides a defined period for Montenegro to assess the legal and financial position of the remaining offer. CAAP’s continued participation keeps a private concession option available, while the final decision depends on updated valuation, procurement requirements and an enforceable investment programme for Montenegro’s airports.
