The Luxembourg-American company Corporación América Airports (CAAP) plans to invest 319 million euros in the reconstruction of the airports in Podgorica and Tivat, which is 63 million more than the competing South Korean company "Incheon International Airport Corporation" (IIAC). CAAP also has the advantage when it comes to the start of work - they would start in March 2026, while IIAC would start work in January 2027. The Luxembourgers would complete the first phase of work by December 15, 2028.
CAAP also intends to establish an air base for low-cost carriers at both airports (three Wizz Air aircraft in Podgorica and two EasyJet aircraft in Tivat), the first would be ready for use in 2029, and the second in 2034.
The South Korean company does not plan to establish these bases, but would encourage low-cost companies to reduce or withdraw their services from Montenegrin airports, or to redirect them to neighboring airports, such as Dubrovnik and Tirana, where more attractive incentive programs are in effect.
This is stated in the Report on the Evaluation of Technical, Investment and Air Transport Proposals, which is the chairman of the Tender Commission for the Concession of Airports Nick Djelosaj prepared for last night's Government session, so that it would be clearer how the commission scored the technical bids.
"Vijesti" has access to this document.
DEADLINE FOR TENDER COMMISSION REPORT JULY 9
The government, as announced by the Prime Minister last night, Milojko Spajic on the IKS social network, unanimously accepted the Tender Commission's proposal to extend the deadline for the evaluation of technical bids by 30 days, i.e. until July 9th.
The session was held due to the drastic difference in the scoring by which the Tender Commission for Concessions and its consultant from the World Bank - IFC evaluated the technical part of the two bids.
"Vijesti" announced yesterday, citing sources familiar with the tender process so far, that the Koreans received 95 out of a possible 100 points from the IFC, which provided a separate opinion on the technical offers, and the Luxembourg-American company received 80 points, which is the minimum for moving on to the continuation of the procedure for granting the airports in Tivat and Podgorica a thirty-year concession. On the other hand, the Tender Commission evaluated the Korean offer with 79,7 points - which would eliminate "Incheon" from the race - while the CAAP company was given 85 points. At least 80 points are needed for bidders to qualify for the next phase of the tender procedure in which financial offers are evaluated, which carry 80 percent of the total points, according to "Vijesti" sources.
The scoring also caused a rift in the Tender Commission.
Three members of the Tender Commission from the Prime Minister's Office and the Ministry of Finance, as well as the Mayor of Tivat Željko Komnenović, believe that the Koreans were unfairly scored. The rest of the commission consists of representatives of the ministries of transport (six members, including the minister Maja Vukicevic), defense and spatial planning.
Due to the split, a meeting of the parliamentary majority leaders was held yesterday before the Government session, at which, as "Vijesti" unofficially learned, it was agreed that the Tender Commission, due to its lack of technical knowledge, would engage an advisory body. This body would allegedly consist of experts from the University of Montenegro, and it would prepare a report on how the commission scored the bids and whether its members were right when they gave zero points for certain parameters within the technical bid. This was later concluded at the Government session.
"Vijesti" sources say that the opinion of the advisory body is important, due to the different positions of the IFC and the Tender Commission, but also to avoid the tender procedure being illegal and giving someone a reason to appeal.
LUXEMBOURGIANS MAKE FIVE ADDITIONAL INVESTMENTS, SOUTH KOREANS MAKE ONE
The Report indicated that both bidders met the minimum investment requirements specified in the Request for Proposals (RFP), but that CAAP, in real terms, planned to invest 63 million euros more than IIAC.
It is stated that an important aspect remains the additional investments that the winning bidder will undertake, and that CAAP plans a total of five investments (three in Podgorica and two in Tivat), while IACC plans one in Podgorica.
"The most significant investment that CAAP is planning in Podgorica is the Real Estate Masterplan, which aims to transform the airport into a multifunctional hub offering a wide range of commercial, recreational and service activities for businesses and travelers," the document states.
It is explained that the Koreans' exclusive focus on cargo and logistics at Podgorica Airport increases the financial risk associated with the feasibility of the proposed investment.
“Furthermore, IIAC’s own cargo traffic forecast for this airport is not optimistic enough to sustain the demand needed for the e-commerce fulfillment center, raising concerns about the occupancy rate of the proposed rental space,” the report said.
CAAP OFFERS MORE PARKING AND A LARGER TERMINAL AREA
It was further noted that CAAP proposed a significantly better integrated solution for the new and existing terminals at the airports in Podgorica and Tivat, with the use of environmentally friendly materials and modernization of equipment, which contributes to sustainability and energy efficiency. In the final phase, the total area of the terminals planned by CAAP is about 40 percent larger than the IIAC proposal - in Podgorica 30.700 m2 compared to 21.972 m2, and in Tivat 24.000 m2 compared to 18.509 m2.
CAAP plans to build a significantly larger number of parking spaces at both airports - 2.000 in Podgorica and 921 in Tivat, while IIAC anticipates 1.301 and 885 spaces, respectively, as well as a large number of additional works at both airports.
“As a critical component of airport operations, ground handling requires a strategic approach to ensure operational efficiency without compromising customer experience. CAAP’s strategy involves the transfer of ground handling services to a sub-concessionaire, thereby liberalizing the market. The aim is to improve performance while meeting the requirements for the liberalization of the ground handling market in accordance with Directive 96/67/EC, taking into account Montenegro’s expected accession to the European Union. In contrast, IIAC plans to perform ground handling services internally, despite acknowledging the possibility of Montenegro becoming part of the European Union by 2028,” the report stated.
It is also stated that CAAP planned to start construction work within three months of the execution date and that this short preparation period demonstrates CAAP's good familiarity with the aviation market and construction practices in Central and Eastern Europe.
“In contrast, IIAC has scheduled its preparatory studies over a one-year period between the execution date and the start date. This extended timeframe significantly delays the start of construction, with the projected start of works in January 2027 and completion by December 2029. It is important to emphasize that such a delay could be detrimental to the project and to the goals of the Government of Montenegro, which seeks to have airports operational and efficient as soon as possible in order to accommodate passenger traffic and improve Montenegro’s position as a competitive tourist destination,” the report states.
THE FOCUS MUST BE ON EUROPEAN TOURISTS
The document states that “IIAC appears to be ignoring the potential demand for based aircraft from low-cost carriers at Montenegrin airports.”
“The proposal to increase the number of routes operated by full-service carriers (FSCs) is not supported by clear assumptions or market studies demonstrating sufficient demand for such services. Looking at regional trends in countries such as Croatia, Serbia and Albania, a significant increase in passenger traffic has been observed, primarily due to low-cost airlines, with a decreasing share of traditional carriers. This trend is largely due to the nature of tourism in the Balkans, which tends to attract budget-conscious travelers. The key assumption is Russian tourists. Despite the potential impact of Russian tourists, Incheon cannot base its passenger traffic assumptions on developments in Eastern Europe and Asia, especially given Montenegro’s aspiration to join the European Union by 2028. European tourists should be the primary focus and strategic target for both the airport operator and the Government. Furthermore, a concrete risk mitigation plan addressing the potential extension or intensification of sanctions against Russia is lacking, which could significantly undermine the projected plan air traffic. Moreover, a short-term route development strategy that proposes the creation of new routes while maintaining the current traffic ratio between low-cost airlines and full-service carriers, in particular keeping low-cost airlines at only 40 percent of total traffic, seems unrealistic given market dynamics and regional benchmarks.”
The tender was announced in 2019.
CAAP completes the first phase by December 2028.
When it comes to route development, the commission's report notes that CAAP has a competitive advantage because it already manages airports in Italy, which allows them to conduct market analyses more quickly and start work in Montenegro earlier.
CAAP's construction works at the airports in Podgorica and Tivat are planned to begin no later than the beginning of the second quarter of 2026, while the first phase should be completed, according to the Tender Commission, by December 15, 2028.
On the other hand, the Koreans plan to start work in January 2027, "without clearly defined market research and without aggressive incentives for low-cost airlines."
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