MANS: Do a new analysis for airports

"There are no important parameters that would show whether the planned concession arrangement is in the state's interest"
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Tivat Airport, Photo: Siniša Luković
Tivat Airport, Photo: Siniša Luković
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 15.09.2018. 17:23h

According to MANS, the Ministry of Transport and Maritime Affairs should conduct a new independent analysis of the economic justification of the valorization of the Airport of Montenegro (ACG), which would include a scenario in which the company would only invest in further development.

In its remarks on the drafts of the concession contract and act for ACG, MANS stated that the full transparency of the procedure was not ensured, because incomplete documents were put up for public discussion, which did not specify important economic parameters, which would clearly show whether the planned concession arrangement in the state interest or not.

"The Ministry launched a public discussion on the concession arrangement for ACG during the annual holidays and organized only one round table, even though it is an issue of exceptional economic importance for the country, which further violated the principle of transparency and the right of the public to be timely and fully informed about with the announced concession arrangement", MANS said.

It is necessary to define the minimum amount of planned investments, and also to define whether the investments, in addition to real estate, would also include movable property, and that movable property after the expiration of the concession arrangement remains owned by the grantor, that is, the state.

They also believe that it is necessary to define the minimum amount of the fixed fee that is paid in advance, as well as the minimum amounts of the annual concession fees and exclude the possibility that the potential concessionaire will be exempt from paying the annual concession fee in the first five years.

"When defining the minimum technical and financial criteria for qualification in a potential tender, which the concessionaire must fulfill, it is necessary to apply the best experiences from the region and Europe. It is also necessary to rule out the possibility that, if only one bidder appears at the tender, negotiations will continue with him, it is necessary to conduct the tender again", states MANS.

They also believe that the concession contract should clearly foresee the amounts of guarantees for the closing of the transaction and good execution of the work, regulate the price policy of ACG, involve the Assembly of Montenegro, as well as establish an appropriate control system that would enable the transparency of public bidding and control of the implementation of the complete business arrangement.

You need to protect yourself from cash withdrawals

From MANS, they state that the Ministry should present an estimate of the annual amounts of obligations of Montenegro Airlines, which it intends to take over, and a clear division of risk between the Government and the potential concessionaire.

"It is necessary to envisage a clear control mechanism for concluded subcontracts (permitted subcontracting), especially with related business entities, and this is especially so because such contracts can represent a pattern for extracting money from the company", according to MANS.

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