Milatović's Cabinet: Government is implementing the ACG concession according to the rules of the former regime, the procedure is compromised, workers are unprotected

The Cabinet of the President of Montenegro, Jakov Milatović, announced today that the Government of Montenegro is implementing the concession of the Airports of Montenegro (ACG) according to the rules of the former regime, and that the airports are worth almost twice as much today.

Milatović's cabinet also said that the concession procedure was compromised, that workers were unprotected, and that the damage to the state was measured in hundreds of millions of euros.

"We, the protectors of the property and legal interests of Montenegro, have sent a request for an urgent legal and financial analysis of the concession for the Airports of Montenegro, because the Government chose a company with a concession from the old regime, and now it is shifting responsibility for the poor performance to the Parliament of Montenegro. This is not serious state management, but an attempt to present the old price, the old model and the old political agreements as a new development decision," the statement states.

Milatović's cabinet added that if something was worth 140 million euros and is worth 264,4 million today, then it is not being sold at the old price.

"If the revenues of the Airport of Montenegro have increased from 37,5 million to 55 million euros, if the number of passengers has increased from 2,4 million to 3,1 million, if the company is more valuable today than seven years ago, then the state has no right to act against the interests of the state. The real market value of ACG today is estimated at 300 to 350 million euros. If in 2019 the minimum one-time concession fee was 100 million euros, today it had to be at least 200 million euros. It is like if a householder wanted to sell a family house today at the price of seven years ago, even though the entire family knows that it is worth almost twice as much today. No householder does this with their own house, and likewise, the Government has no right to do this with the property of all citizens," reads a statement from Milatović's office.

They state that citizens are being told a fairy tale about "a billion euros", while "the real calculation shows that, if the minimum price is not 200 million euros, in 30 years we will be in the red between 150 and 200 million euros".

"This is the money used to build schools, kindergartens, roads and hospitals. This is the difference between a government that knows how to protect the state's interests and one that continues its bad business to the detriment of all citizens. The government did not say that Airports of Montenegro subsidizes airlines with 10 million euros per year through discounts and benefits, so that there would be more flights, more passengers and more tourists. The concessionaire has no interest in maintaining the same level of subsidies. This could mean fewer flights, more expensive tickets and fewer tourists. Air Montenegro, which uses 4,5 million euros in subsidies per year, is particularly at risk. This leads us to higher ticket prices for the national airline, fewer routes and lower tourist traffic. It is obvious that the government is not interested in this, because we use the airport in Tirana more anyway," said Milatović's office.

According to them, more than a thousand people work at the Airports of Montenegro.

"The concessionaire always aims to increase profits by reducing operating costs. In translation, there will be layoffs, because social programs for worker protection have not been provided. The practice from the past is being repeated, leaving our people without any protection and support when they lose their jobs. The government is also keeping quiet about the fact that the entire procedure has been compromised. ADP TAV withdrew, while the World Bank IFC consultant announced its withdrawal during the process, assessing that the principles of the tender procedure were being grossly violated. The resignations of commission members were mentioned due to the lack of training and inequality of bidders, and arbitrations were announced. If the state loses these disputes, the price will again not be paid by those who made this deal, but by the citizens of Montenegro," said Mialtović's office.

They said that Montenegro needs investments and strategic partnerships, but that the country does not need bad jobs, compromised procedures, and an attempt to present an old political project from the time of the former regime as a development decision today.

"The solution is to suspend the procedure, because the state must not confirm a deal over which serious legal, financial and procedural issues hang. Then we must conduct a full legal and financial analysis to determine why the rules and prices from 2019 are still being insisted on and to show the public the full truth about the risk to the budget, tourism, workers and international disputes. We have officially requested this from the Protector of Property and Legal Interests of Montenegro," said Milatović's office.

They also said that the new concession procedure must be completely different and contain conditions that protect Montenegro, not the investor at the expense of the state:

• A minimum one-time fee of at least 200 million euros,

• The obligation for the number of passengers to grow at a rate of at least seven percent per year,

• The obligation that the participation of low-cost airlines will not be lower than the agreed level in 2026,

• The obligation that subsidies and discounts are not less than the expected share in 2026,

• A precise annual dynamics of at least 300 million euros of investments, with projects, amounts and deadlines,

• A guarantee that there will be no redundancies or layoffs in the first five years

• Full recognition of seniority and contracts that must not be worse than the existing ones,

• Taking over the valid collective agreement and the concessionaire's work regulations,

• Permanently resolve the status of outsourcing workers who already have certificates and training paid for by ACG.

"This is what a fair deal for the state must look like. It is not a question for citizens whether we are for or against a concession? The question is whether we will allow twice as valuable state property to be given away at the old price, through a compromised procedure, without worker protection and with the risk that citizens will pay the consequences of another bad deal for years? The government must answer these questions before it concludes a bad deal, and not later, when it is too late for the state," said the Cabinet of the President of Montenegro, Jakov Milatović.