Montenegro is putting its airport concession process on hold for at least around 18 months and plans to invest up to €10 million in immediate improvements at Podgorica and Tivat airports before the 2027 summer season. Transport Minister said the government considers the concession issue closed in the near term, while a task force led by the prime minister is addressing urgent airport capacity and infrastructure requirements.
13 Priority Airport Measures
The task force is working on 13 priority measures, including reducing terminal congestion, improving electricity supply, adding parking and passenger canopies, and extending the runway at Podgorica Airport. The government aims to complete the immediate programme by the end of May 2027, ahead of the main tourism season. Zečević estimated the initial investment at up to €10 million. The decision follows years of discussions over whether Montenegro should grant long-term airport concessions to private operators. Earlier proposals envisaged private operators bringing capital, management expertise and faster airport development.
Under the current approach, state-owned Airports of Montenegro will address the most immediate infrastructure constraints while the government reassesses the long-term operating model.
Passenger Growth Increases Capacity Pressure
Podgorica and Tivat airports are expected to handle more than 3 million passengers in 2026, placing additional pressure on terminals, aprons, parking and other facilities. Tivat Airport faces particular constraints during the summer, when tourism traffic is concentrated within several months and available space is limited. Podgorica Airport has greater potential for physical expansion and is experiencing stronger year-round demand as airlines add routes. The immediate €10 million programme is significantly smaller than the estimated €200 million-€300 million potentially required for comprehensive long-term modernisation of both airports.
Long-Term Airport Investment
Longer-term development plans include substantial terminal, apron and runway investment. At Podgorica, plans include terminal expansion and runway improvements capable of accommodating larger aircraft, while Tivat requires more extensive reconstruction of terminal and airside infrastructure. A new master plan is expected to determine how these investments will be structured and financed. The 18-month pause in the concession process gives the government additional time to assess whether Airports of Montenegro can finance a larger share of the investment programme directly. The state-owned operator has argued that its borrowing capacity could support significant investment. Passenger growth also provides airport fees and commercial revenues as sources of cash flow.
State Financing and Concession Options
Direct borrowing would keep more investment risk within the public sector, while a concession would transfer part of the financing and operating risk to a private operator in exchange for long-term control over airport revenues. The immediate programme focuses on operational reliability, including electricity supply, terminal congestion and capacity constraints. Montenegro relies heavily on aviation for tourism, while road and rail alternatives remain limited. A significant share of visitor growth comes from European markets requiring direct air connections.
Airport capacity therefore affects hotel occupancy, tourism and real estate investment, airline route decisions and the extension of the tourism season. Improved airport infrastructure could also reduce delays and improve aircraft utilisation, while passengers would benefit from less congested terminals and improved ground access.
The government has set the May 2027 deadline for completing the 13 priority measures. Public infrastructure projects in Montenegro have faced delays related to permitting, procurement and land issues, while the prime minister-led task force is responsible for addressing the airport programme. The airport concession process has therefore been deferred while the state proceeds with the immediate infrastructure upgrade programme and considers the financing structure for the larger development programme.
