Montenegro’s government has approved a project for awarding a 30-year concession contract to run the country’s two international airports, in Podgorica and Tivat, expecting investment of at least 200 million euro ($222.7 million), it said.
The government expects investment of at least 80 million euro during the first three years, and at least 200 million euro during the full term of the concession, it said in a statement on Thursday.
The government also said it plans to sign a concession contract with the best bidder in a tender to be organised with the support of the International Finance Corporation (IFC), it said.
The concession for Podgorica airport will cover an area of 2.516 million square metres, including the existing facilities and the zone for expansion as described in the airport’s master plan until 2030. The Tivat airport concession will cover an area of 846,596 square metres.
“The concessionaire’s obligations will be performance-based, which means that the concession agreement will set the minimum standard of services that it must fulfil, and the investments will be implemented in the manner and when necessary in the field of maintenance and capacity expansion, due to the increase in traffic,” transport minister Osman Nurkovic said.
All property and employees necessary for the maintenance of the airport will be transferred to the Montenegrin government after the expiration of the concession contract.
In April, the European Bank for Reconstruction and Development (EBRD) said it is ready to consider providing financing to the future concessionaire of Montenegro’s two international airports. A total of 20 companies have expressed interest in obtaining a concession contract for the operation of the airports, Nurkovic said in December.
Podgorica and Tivat airports served a total of 256,332 passengers combined in the first quarter of 2019, up 7.2% on the year, data from the country’s statistical office shows.