Montenegro’s proposed 30-year concession for Podgorica and Tivat airports remains outside the formal parliamentary procedure nearly three months after being submitted, delaying a planned €300 million airport investment programme and prolonging uncertainty over the country’s largest transport infrastructure transaction. The government of Prime Minister Milojko Spajić approved the concession proposal on 8 April 2026 and sent it to the Parliament of Montenegro on 17 April. The agreement would transfer the operation and development of the country’s two international airports to the Incheon Airport Consortium, led by South Korea’s state-owned Incheon International Airport Corporation.
By 14 July, the proposal had still not been published as an official parliamentary document, preventing committee review, independent financial analysis and a parliamentary vote.
Parliamentary procedure remains pending
Parliament requested additional documentation from the Ministry of Transport, including more than 700 pages related to airport asset valuation and an English-language version of the concession agreement. The ministry, headed by Filip Radulović, is understood to have submitted the requested materials at the end of April or beginning of May, but the proposal remained outside the formal legislative agenda.
The government had requested consideration under an urgent procedure that could have allowed approval within seven days. The published conclusions did not initially provide the reasons for accelerated treatment and instead instructed the ministry to submit additional justification. The proposed concession requires parliamentary approval because a new valuation placed the fixed assets of Aerodromi Crne Gore, the state-owned airport operator, at approximately €265 million. This exceeds the government’s independent authority threshold of €150 million for state property decisions.
Concession package includes fees and infrastructure investment
The government estimates that the concession would generate at least €1 billion in benefits over 30 years. The figure consists of three separate elements: a €100 million upfront concession fee, approximately €600 million in variable payments, and €300 million in infrastructure investment by the concessionaire.
The initial payment would be made within one month after signing the agreement. The concessionaire would also pay 35 per cent of gross annual airport revenue to the state, with the government estimating that these payments could reach at least €600 million during the concession period.
The planned €300 million investment programme represents capital expenditure rather than direct budget revenue. It includes new terminals, reconstruction of existing facilities, aircraft stands, parking capacity and related infrastructure. Ownership of the airports and newly built facilities would remain with Montenegro, with all new infrastructure returning fully to the state after the concession expires. The investment schedule foresees around €132 million during the first three years, with the majority of the wider programme completed within six years. Planned investments by 2029 include approximately €54 million at Podgorica Airport and €78 million at Tivat Airport.
The programme would expand airport infrastructure from just under 11,000 square metres to around 40,000 square metres, add 13 aircraft parking positions, double vehicle parking capacity and introduce a maritime terminal at Tivat.
Passenger growth increases pressure on airport capacity
Montenegro’s airports recorded more than 3.08 million passengers in 2025, the strongest annual result achieved by Aerodromi Crne Gore. During the first half of 2026, passenger traffic increased by approximately 17 per cent, reaching nearly 1.5 million passengers before the main summer season. Aerodromi Crne Gore expects 3.63 million passengers in 2026, representing growth of around 18 per cent compared with 2025. Aircraft movements are forecast at 14,384, an increase of 15 per cent.
Growth is expected to be concentrated at Podgorica Airport, where passenger numbers are projected to rise 31 per cent to approximately 2.29 million, while aircraft movements are forecast to increase 25 per cent to 8,786. Tivat Airport is expected to handle around 1.34 million passengers and 5,598 aircraft movements, broadly unchanged from the previous year. The opening of a Wizz Air base at Podgorica Airport in late March 2026 expanded the country’s air connections through 17 new routes. Traffic has also been supported by airlines including British Airways and Iberia, along with additional seasonal and charter services.
Aerodromi Crne Gore reports profitable operations
Aerodromi Crne Gore expects 2026 operating revenue of €47.3 million, up 8 per cent, with projected EBITDA of approximately €18.3 million and net profit of €13.37 million. Labour costs are expected at €23.7 million, representing around half of operating revenue, while other operating expenses are forecast at €5.2 million.
The company has allocated €21.3 million for equipment, works and services during 2026, showing that state-led investment remains an alternative to concession-based development. At current revenue levels, a 35 per cent gross-revenue concession payment would equal approximately €16.6 million annually based on projected 2026 revenue. This exceeds the company’s forecast net profit, although the comparison does not include differences in ownership structure, investment obligations and risk allocation.
Under state ownership, Montenegro retains economic benefits from retained earnings, dividends and asset appreciation while financing operations and investment. Under the concession model, the private operator would assume investment obligations and operating costs in exchange for concession payments and revenue-sharing arrangements.
Valuation and contract conditions remain central issues
The concession process began in 2018, while original concession documents were adopted in 2019. The proposed €100 million upfront payment remains linked to expectations formed when airport traffic was lower and asset values were different. Since then, passenger numbers have recovered, Aerodromi Crne Gore has returned to profitability, Podgorica secured a Wizz Air base and airport fixed assets were valued at €265 million.
The government argues that the current offer is stronger than the original tender requirements, particularly because planned investment increased from approximately €80 million to €300 million. The proposed 35 per cent gross-revenue share would also provide the state with participation in future airport growth.
Parliamentary review is expected to examine the definition of gross revenue, treatment of related-party transactions, inclusion of commercial income from retail, parking, advertising and property activities, as well as state audit rights. The agreement would also require clear investment milestones, performance guarantees, construction deadlines, passenger-capacity requirements and penalties for non-compliance.
Incheon consortium selected after extended tender process
The selected bidder is led by Incheon International Airport Corporation, which is wholly owned by the South Korean state and operates one of the world’s major international airports. Seven companies originally entered the prequalification phase. The process was later narrowed to Incheon and Luxembourg-registered Corporación América Airports.
Incheon ranked first in July 2025, after which Corporación América submitted appeals challenging elements of the evaluation process. The prolonged tender has delayed major capital decisions, complicated airline planning and created uncertainty regarding future airport development.
The concession decision remains a significant infrastructure and investment-policy issue as Montenegro advances towards EU membership. The outcome will determine whether airport expansion proceeds through a private concession model or through continued state ownership and financing.
