The Tender Commission for granting the concession for the use of Podgorica and Tivat airports has called, with the support of the International Finance Corporation (IFC), for interested parties to submit bids for the long-term concession of these airports. This step represents the second phase of the tender process and is a clear indication of the 44th Government’s commitment to completing the process initiated in 2019 for the further economic development of Montenegro, according to a statement from the Tender Commission, chaired by Nik Đeljošaj.
Public-private partnership model
The commission reminded that five years after the start of this process, only the prequalification procedure has been completed, during which three international bidders were qualified for the second phase.
“Given the importance of the airports for Montenegro’s tourism and economic development, continuing this process is crucial for making a strategic decision regarding the long-term development of Montenegro’s airports, whether through a public-private partnership model, if suitable bids are received, or through state-led development of the airports,” the statement concluded.
The current Minister of Transport, Maja Vukićević, previously told Pobjeda that when it comes to state assets, careful consideration is required, and every decision should be made in the best interest of Montenegro.
“This process is ongoing, and we still do not have a final decision. I will personally review all the facts before a decision on the concession is made. I believe that the state should retain some level of control over the airports, and I will be an advocate for this idea,” Vukićević had previously said.
On April 4 this year, the government approved a contract for advisory financial services between the government and the International Finance Corporation (IFC). The contract concerns the continuation of the second phase of the tender process for granting concessions for Montenegro’s airports.
The IFC is an international financial institution from the World Bank Group, with experience in providing advisory services in public-private partnerships, including aviation sector concessions and airport management.
“Given that IFC fulfilled its obligations during the first phase of the process according to the agreed schedule, which involved preparing the tender documentation, managing the tender procedure, assisting with communication with bidders, and prequalifying potential bidders, the government concluded that continuing cooperation with this institution would yield the best results in the shortest possible time,” the government stated.
Prequalification process
On July 25, 2019, the government of Duško Marković approved the concession act and agreement for the use of Tivat and Podgorica airports. The concession act at that time foresaw a one-time payment of €100 million for the budget and €200 million in investments over the next 30 years. The Ministry of Transport, under Minister Osman Nurković, issued a public call for prequalification applications for the concession on October 11, 2019.
Seven applications were received for the prequalification tender, four of which met the criteria and were marked as qualified bidders. The prequalification process saw the qualification of four bidders: South Korea’s Incheon International Airport, India’s GMR Airports, Luxembourg’s Corporacion America Airports, and the French-Turkish consortium ADP-TAV, all of which met the prequalification criteria for the concession. A few months later, the Indian company GMR announced that it would not continue with the concession process for Montenegro’s airports.
GMR withdrew after French company ADP, which, along with TAV, also wanted to manage the airports in Podgorica and Tivat, purchased 49% of the shares from the Indian company. After the prequalification phase, the next step was to issue a tender and invite the qualified consortia or companies to submit their bids. In late October 2021, the three bidders who had previously passed the prequalification stage presented themselves and their plans for the Montenegrin airports to the government representatives of Zdravko Krivokapić’s administration.
At the time, the Minister of Capital Investments, Mladen Bojanić, announced that the interest of potential concessionaires in the airports had not waned, despite the ongoing challenges posed by the COVID-19 pandemic.
