Airport Unions Call for Involvement in Concession Award Tender Process
Tender initiated in 2019: Tivat Airport, Photo: ACG
The trade unions representing Podgorica and Tivat airports have urged the Government to conduct a thorough analysis and engage in extensive consultations with all stakeholders before making a definitive decision regarding the potential thirty-year concession of the airports.
In a letter addressed to “Vijesti” yesterday, they expressed dissatisfaction with the Government’s approach, feeling that they have been overlooked in addressing critical issues surrounding the Aerodromi Crne Gore (ACG) company’s status. The unions believe their inclusion in this decision-making process is vital, as the employees are the company’s most essential asset, providing reliable, safe, and high-quality service daily.
“It is unacceptable and extremely trivial for employees and trade union organizations, as their representatives, to learn about crucial company matters through media reports. The latest piece revealed that the second phase of the tender has commenced, with requests sent to potential concessionaires for their offers. While we acknowledge the Government’s right as the founder to evaluate the best future models for ACG’s status and development, we assert that any decision must be preceded by a comprehensive analysis and sound rationale that informs both professionals and the general public, inviting their feedback and suggestions,” states the union’s letter to “Vijesti,” signed by presidents Ljubiša Džudović and Slobodan Martinović.
Recently, the government has sought final offers from the three shortlisted bidders for the ACG concession, which originated in 2019. The executive has indicated that the acceptance of any offer will depend on its quality, determining whether the management of the airports in Tivat and Podgorica will continue under state control. According to the concession act from 2019, established by then-Prime Minister Duško Marković (DPS), the state expected to receive at least €100 million as one-time compensation from the airport lessee, alongside €200 million in investments over 30 years, plus at least 10% of the airports’ profits as part of the concession fee. Following the pre-qualification process, the remaining bidders for the concession include the South Korean firm “Incheon International Airport,” the Luxembourg-based “Corporacion America Airports,” and the French-Turkish consortium ADP-TAV.
The ACG union members reiterated that Montenegro, being primarily an air destination, relies heavily on its airports as key tourist gateways and significant economic assets. Thus, they advocate for careful decision-making regarding any potential concession. They also highlighted the need for meaningful investments in airport infrastructure to enhance service quality.
However, the unions stressed that the implementation method must reflect serious consideration about whether ACG can independently improve its operations, ensuring the economic resource remains under state control and management.
According to relevant statistics, ACG achieved a profit of at least €2024 million in 10 years, and projecting this level over the next 30 years indicates a possible profit of €300 million, given current traffic levels.
“This figure would significantly increase if we consider growth data and projections from Eurocontrol and other civil aviation authorities, as we observe daily growth in passenger numbers and aircraft operations at Podgorica and Tivat airports,” the union’s position articulates.
Combined, both airports reported over 2.8 million passengers in the previous year.
The union conveyed that considering these figures and growth forecasts, “the proposed investment obligation of €100 million for the future concessionaire seems somewhat trivial.” They asserted that ACG could independently seek loans that would be paid back with generated profits. They noted that Montenegro’s ongoing alignment with the EU opens many avenues for accessing European structural and investment development funds, following a similar pattern observed in regional countries during their EU integration.
“In light of all this, and the apparent critique from a segment of the professional community regarding the rationale behind such arrangements, we find it crucial to engage in a comprehensive dialogue with all stakeholders, including trade unions representing employees—who are indeed the company’s most valuable resource and ensure safe and efficient operations,” the letter emphasizes. “Any decision made without considering professional critiques and in haste would likely result in unfavorable arrangements with long-lasting repercussions for the company and its workforce,” it concludes.
Is the French-Turkish consortium leading?
While remaining relatively discreet in public forums, there are indications, based on unofficial sources from “Vijesti,” that Prime Minister Milojko Spajić’s government supports airport concession, perceiving it as an informal condition from EU leaders for furthering Montenegro’s European integration.
Unofficially, the French ADP Group (Aéroport de Paris), which holds a substantial stake in the Turkish TAV, is reportedly being favored for acquiring Montenegrin airports for a 30-year lease.
TAV, part of the ADP Group, already manages “Franjo Tuđman” airport in Zagreb and the airports in Skopje and Ohrid within the former Yugoslavia region.
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