The government should initiate a discussion with social partners and all pertinent entities, wherein all facets of the potential concession for Airports of Montenegro (ACG) will be thoroughly examined. This includes a detailed assessment of cost-effectiveness, long-term economic implications, and the potential impact on employment and economic growth.

This dialogue must also furnish clear answers to vital queries: what are the exact advantages the state would gain from granting the concession? What assurances will the concessionaire provide regarding investment in the development and modernization of infrastructure? What will happen to the employees? And, is there a genuine need for a concession model, considering that ACG is currently generating stable profits?

This sentiment is encapsulated in a letter crafted by the executive boards of the Independent Trade Union of Airports of Montenegro (NSACG) and the Trade Union of Airports of Montenegro (SACG) addressed to the Presidents of the State, Government, and Parliament—Jakov Milatović, Andrija Mandić, and Milojko Spajić—as well as the Minister of Transport, Maja Vukićević, the President of the Government Commission for Concessions, and all parliamentary groups. “Vijesti” has obtained this letter from the trade union organizations affiliated with the Union of Free Trade Unions of Montenegro.

This letter is set to be delivered to the highest state officials today and has been signed by NSACG President Milivoje Dragićević and SACG President Damjan Radulović.

“Airports serve not merely as transportation hubs but are also strategically significant economic assets that foster tourism growth, generate new employment opportunities, and enhance overall economic development within the country. Any resolution regarding their status needs to be made with utmost care, considering the long-term wellbeing of the state, its residents, and future generations,” the letter emphasizes, reflecting deep concern over the future of this essential state infrastructure.

Recently, the government opted to proceed with the pre-qualification tender from 2019, soliciting the three shortlisted bidders for the concession to submit final proposals. The top executive indicated that acceptance of these offers would depend on their quality; otherwise, the management of the airports in Tivat and Podgorica may remain under state control.

Following the pre-qualification phase, three bidders are still in contention for the concession: the South Korean firm “Incheon International Airport,” the Luxembourg-based “Corporacion America Airports,” and the French-Turkish consortium ADP-TAV.

The Necessity for Transparency

The letter from the trade union organizations articulates their stance as employee representatives: they find it unacceptable that crucial decisions pertaining to ACG’s future are made without thorough and transparent analyses of all available options, disregarding the perspectives of employees, professionals, and the public.

“Moreover, considering the transitional challenges faced by Montenegro and the widespread belief among citizens that no domestic privatization process has been conducted properly, the question arises whether the time has finally come to safeguard what remains of our national resources through a referendum process? While a concession is not directly equivalent to privatization, in the context of a neoliberal economy, it may essentially be viewed as such, given the 30-year duration stipulated in the concession procedure. In this light, the Union of Free Trade Unions, as a pivotal trade union center, has adopted a Resolution on the Protection of Economic Entities of National Interest. They are calling on citizens to exercise their constitutional rights and support the Proposal for initiating a state referendum, with one of the questions being: Are you in favor of the Montenegrin Parliament adopting a law to preserve Economic Entities of National Interest in Majority State Ownership?”

The unions indicate that Prime Minister Duško Marković’s government commenced the pre-qualification process for the thirty-year airport lease in 2019, which remains incomplete.

“In a 2020 letter to the Government, a consultant from the International Finance Corporation (IFC) voiced their lack of backing for the passenger flow analysis conducted prior to the pandemic, recommending that a new Airport Development Master Plan must be developed since the one from 2011 is obsolete. They also advised that ‘IFC’s stance is that the parameters defined by the Concession Act undermine the transaction’s feasibility and the integrity of the tender process, and that the proposed Concession Agreement does not safeguard the interests of the Government of Montenegro’. Additionally, various unresolved property concerns were raised, particularly regarding the near-complete real estate on which Tivat Airport is constructed and its projected expansion areas, as these could jeopardize the concession’s validity. The consultant further noted that ‘Montenegrin laws do not acknowledge tripartite contracts’, which might impede the receipt of final bids,” the letter states.

The strategic plan set forth by Airports of Montenegro predicts revenues of 120 million euros from their operations over the next seven years, with an estimated 17 million euros still required for full modernization.

Aside from the inadequacies highlighted by the IFC in the ongoing concession procedure, analyses shared by trade union members also indicated “potentially vague conditions in the public call for bidders, outdated passenger flow assessments, and a notable absence of so-called minimum technical requirements for future concessionaires, which are essential for comparability of their proposals for the development of Montenegrin airports.”

The Political Stability Challenge

In recent years, Montenegro has encountered several changes in government, which, as the letter articulates, can severely complicate and even obstruct the planning and execution of significant infrastructure projects like the airport concession.

“Critical decisions, such as this concerning the airport’s future, are politically charged, as differing political factions and interest groups often maintain drastically opposing viewpoints. This reality underlines the necessity for achieving the broadest possible consensus on matters of national interest,” the letter underscores.

According to 2024 data, ACG reportedly generated around 10 million euros in profit, demonstrating the company’s capacity for continued independent operations and growth. When projected over the 30-year concession period, that equates to a potential figure of 300 million euros.

“Considering anticipated air traffic growth in Europe, as indicated by Eurocontrol and other authorities, ACG’s expected revenue over the next three decades could soar to approximately 689 million euros, which surpasses the financial returns Montenegro would likely gain through concession fees and investments.”

The trade unionists express cautious optimism regarding the positive statements made by Minister of Transport Maja Vukićević and ACG Executive Director Rok Tolić, which suggest a preference for keeping the airports under state ownership; however, they still convey apprehension and a call for a reassessment of the concession process, emphasizing the inclusion of all stakeholders, particularly employees whose futures are directly linked to ACG’s fate.

“We want to highlight Roko Tolić’s public remark: ‘I would not be pleased about that because that is likely where my story concludes. Personally, I lean towards the option of continuing independently, as I have great confidence in all ACG employees,’ which has resonated well among ACG staff, especially as he advocates for investing in existing personnel,” the trade union organization affirms its total confidence in the current ACG executive director.

Regional Examples Serve as Caution

The letter points out that historical experiences with concession models in the region have not consistently yielded the promised advantages.

“The situations of airports in Ljubljana, Belgrade, and Pristina exemplify various implementation challenges, such as limited investment, layoffs, and declining service quality. Conversely, state-owned airports in Split, Dubrovnik, and Sarajevo are achieving outstanding business outcomes. While there are also successful concession instances in the region, such as Tirana Airport, their achievements are largely attributed to a significant diaspora presence,” the letter elaborates.

It notes that approximately 30 percent of Albania’s populace resides abroad according to United Nations statistics, which significantly influences traffic and operations at Tirana Airport.

“Furthermore, the current condition of ACG also considerably affects Tirana Airport’s operations. Analyses indicate that the majority of airports in Western Europe and the European Union remain state-owned. For example, all airports in the Czech Republic, Slovakia, Lithuania, Latvia, Estonia, Finland, Monaco, and Luxembourg are either state or publicly owned. Similarly, Greece boasts 98 percent public ownership of airports, Poland has 88%, Sweden 86%, Austria 83%, and Croatia 75%. Not a single airport in Germany, the Netherlands, or Denmark is completely privately operated,” the unionists declare.

They also highlight that after over a year of intense negotiations, on June 6, 2024, the Hungarian government regained majority ownership of Budapest’s Liszt Ferenc International Airport, as stated in the letter.

“The Minister of National Economy Marton Nagy remarked: ‘We have regained control over the airport, and after almost twenty years, it is back in Hungarian hands. Ownership of the airport is a matter of sovereignty, vital not just for passenger traffic and tourism, but also for cargo transport, serving as a key conduit for economic circulation…The current government has managed to rectify this significant error and reacquire the airport, even amidst the ongoing war situation,’” reads the letter.

Weighing Arguments For and Against

The letter outlines compelling arguments against the concession, including the state’s ability to self-develop the airport, potential drastic hikes in passenger service fees, the risk of losing control over Montenegro’s air access, the possibility of transferring state monopolies into private hands, excess profits exiting Montenegro, and the public’s distrust based on past privatization or concession experiences.

“Conversely, proponents of the concession model commonly cite advantages such as the private operator’s flexibility and efficiency, improved human resource management, greater innovation readiness, and guaranteed income from concession fees.

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