From the ACG concession of one billion euros over 30 years, they are investing 132 million in Tivat and Podgorica by the end of 2029.

Montenegro will generate one billion euros in revenue over the next 30 years through infrastructure renovation, investments and one-time payments from the concession of Tivat and Podgorica airports to the South Korean company "Incheon International Airport Corporation" (IAC).

It is planned that the South Koreans will pay the state 35 percent of their annual gross revenues during this period, of which 600 million euros are expected, 100 million after signing the contract, and 300 million through investments and improvements to airport infrastructure...

The largest investments are planned in the first years of the lease of the Airport of Montenegro (ACG), while 54 million euros would be invested in Podgorica Airport and 78 million in Tivtar Airport - by the end of 2029.

This was announced at a press conference held after a thematic session of the Government. The Government today approved a draft decision on granting concessions for Montenegrin airports, which will ultimately be decided by the Parliament.

European Commission without objections

Coordinator of the Ministry of Transport and Minister of Maritime Affairs Filip Radulović emphasized that they have chosen "Incheon International Airport Corporation" as the concessionaire, and that the Government still has to get the green light from parliament for this decision.

Radulović stressed that the duration of the tender procedure for ACG since 2019 sent a bad message to investors interested in Montenegro, and reiterated that it was not about privatization or sale, but rather a lease.

Asked about the European Commission's (EC) position on granting a concession to ACG, he stressed that the EC is interested in the future of the airport, that they are aware that the situation must be improved, and that the concession is not disputed due to infrastructure limitations.

He emphasized that the planned investment in Podgorica Airport is 54 million euros over the next three years, while 78 million euros would be invested in Tivat Airport by the end of 2029, and that he expects the benefits for citizens to be visible immediately.

Asked about the comments of the Deputy Prime Minister, President of the Tender Commission for the ACG Concession and Minister of Economic Development Niko Đeljošaj, who said that no European country has given airports to a company that is not a member of NATO, Radulović stressed that South Korea is a close associate of that alliance, that they are a member of the "Indo Pacific Four" and that there are no obstacles.

This alliance consists of four countries from that part of the world, which cooperate with NATO, including Japan, New Zealand and Australia.

They expect four times the capacity

Advisor to the Prime Minister for Economic Policy Milena Milović emphasized that at least one billion euros are expected from the long-term lease of ACG over 30 years, and that most of the 300 million euro investment is planned for the first six years.

"We will have four times the capacity than currently, as the area will be increased to 40.000 square meters, with twice the parking space and 13 new aircraft parking spaces. The concessionaire is committed to paying an annual fee of 35 percent of gross revenue, which is estimated at 600 million euros over 30 years, or more than 20 million euros per year," she pointed out, adding that the South Koreans will also pay a one-time fee of 100 million within a month of signing the contract.

Milović emphasized that ACG will remain state-owned and will supervise this concession with the Ministry of Transport, while IAC will establish a new management company and be obliged to retain existing employees for five years.

"Due to planned investments, capacity expansion and a larger workload, we can say that more workers will be needed. The bidder is a renowned investor and has been in the top five best airports in the world for decades. The concessionaire is owned by the South Korean state," she said.

Milović stressed that they also considered issuing a new tender for the concession, but that IAC offered 35 percent of annual gross revenues, although the procedure required ten percent. She added that the speed of the process now depends on the Parliament, but that the effects should be felt quickly, while Tivat and Podgorica - would receive new terminals in the next three to four years...

She also said that after signing the contract with IAC, Montenegro will have a year to ensure all prerequisites and hand over ACG to management.

The state would take longer to do the same job

ACG CEO Roko Tolić emphasized that business for them continues as before, and that they are aware that the company is currently limited in infrastructure development and that they have therefore had to turn down demand.

He stressed that all contracts with operators are being maintained regardless of the concession, and that the bidder would not be able to be monitored in terms of payments and budget, nor in terms of the speed of infrastructure development. He explained that ACG's investments would mean borrowing and that there would be no high payments to the state treasury.

"I feel the greatest responsibility towards our employees and partners. Our financial performance has never been better, but this indicates that what we planned was modest and that it would take us longer. IAC has been declared the best airport and they are not market speculators," he said.