Unions: The withdrawal of the South Korean company confirms that the concession model was not in the interest of ACG, employees and the state

The withdrawal of the consortium led by Incheon International Airport Corporation from the concession award procedure for Aerodrome Montenegro (ACG) is confirmation of everything that both unions have been systematically and argumentatively pointing out for many months now — that the concession model, as it was set up, was not in the interest of Aerodrome Montenegro, nor of the employees, nor of the state.

This was assessed by representatives of the representative unions of the Podgorica and Tivat airports in a statement submitted by the president of the Podgorica Airport union, Slobodan Martinović.

"The withdrawal of the consortium led by the Incheon International Airport Corporation from the concession award procedure for the Airports of Montenegro does not come as a surprise to the representative trade unions of the Company. On the contrary, it is a confirmation of everything that both unions have been systematically and argumentatively pointing out for many months now - that the concession model, as it was set up, was not in the interest of either the Airports of Montenegro, the employees, or the state," the statement reads.

The Government of Montenegro announced yesterday that it had received an official letter from a consortium led by the South Korean company Incheon International Airport Corporation stating that the group is withdrawing from further participation in the procedure for granting the concession for Airports of Montenegro.

The unions said today that they would like to remind the public that both representative unions have taken a clear and consistent position against the proposed concession model throughout the entire procedure and that, as they state, they have supported their opposition with detailed, expertly based comments on the draft concession agreement, which were timely and formally submitted to both the Government of Montenegro and the Parliament of Montenegro.

"These comments completely exposed the concession agreement — pointing out its essential shortcomings, the risks to the vital interests of the state, the uncertainty of the position of employees, and the fact that the offered model did not guarantee benefits commensurate with the value and strategic importance of this infrastructure. Time has, unfortunately, confirmed the validity of each of these comments," the statement said.

They welcomed the announcement of the Government of Montenegro and its, as they state, explicit position that it will not accept solutions that do not guarantee full protection of Montenegro's vital interests, as well as the clear recognition that Montenegro's Airports are recording exceptional business results.

"These are precisely the principles that unions have always advocated for, and we consider this commitment by the Government to be correct, responsible, and in full accordance with the long-term interests of the state and its citizens. We would like to remind you that throughout the entire procedure, both representative unions steadfastly protected the status of workers and defended their jobs and earnings, not agreeing to any solution that would bring these achievements into question, and we are pleased to note that the Government, with its latest statement, has also sided with the protection of these values," it states.

The unions also said that Incheon's withdrawal also confirms what the unions have consistently emphasized: Montenegro's airports have the capacity for independent development.

"The excellent business results of the Company allow the reconstruction of both airports to be financed from its own funds and from credit funds that the Company can independently provide and regularly repay from regular operations. At the same time, the withdrawal of the South Korean company from the procedure is also a confirmation that the multi-year wait for the outcome of the concession procedure has become a serious obstacle to the further development of Montenegrin airports and air traffic as a whole. Any further delay only deepens this damage. Therefore, both representative unions of the Airports of Montenegro (Podgorica Airport and Tivat Airport) call on the Government of Montenegro, in light of the newly emerging circumstances, to review the further course of the concession procedure and make a decision that will enable the investment cycle of modernization of state airports to begin without further delay," the union said.

They also announced that they unanimously and resolutely demand an urgent meeting with representatives of the Government of Montenegro and the Company's management, to discuss a development model that will enable the start of necessary investments without further wasting time on procedures that have been slowing down the company's development for years.

"The business results of the Airport of Montenegro today clearly show that the Company has the financial capacity to finance the modernization from its own funds and from credit funds that it can independently provide and regularly repay from regular operations. Such a model would enable the complete investment cycle to be implemented while preserving state ownership of one of the most important infrastructure systems in Montenegro. Therefore, we consider it necessary for the Government of Montenegro, through the adoption of appropriate decisions, to enable the Company to immediately begin the implementation of urgent investments in the reconstruction and expansion of runways, modernization of equipment and increase of terminal capacities at the airports in Podgorica and Tivat. This would ensure that any revenue generated would remain in Montenegro and be invested in the further development of the national aviation infrastructure and the domestic economy," the statement reads.

Therefore, as they state, they believe that the Government of Montenegro can, through the adoption of appropriate decisions, without delay enable the Company to implement urgent investments in the reconstruction and expansion of runways, modernization of equipment and increase of terminal capacities at the airports in Podgorica and Tivat. To this end, we propose the adoption of a special law (Lex Specialis) and the application of a model of exemption from public procurement procedures, modeled on the successful practice of the Air Montenegro company, which would enable the financing of these strategic investments from international credit arrangements, with the implementation of procurements according to the rules of international financial institutions.

"Such a model would significantly accelerate the implementation of projects, ensure their economic sustainability and legal certainty, including the possibility of obtaining a positive opinion from the Agency for the Protection of Competition for investments of public interest, while any revenue generated would remain in Montenegro and be invested in the further development of the national aviation infrastructure and the domestic economy. Employees at both airports have proven through their work and results that they can successfully manage this complex system even in the most challenging circumstances. We are convinced that development based on our own financial capacities and responsible credit financing is the best way to ensure the long-term sustainability of the company, preserve jobs, improve the position of employees and preserve full state control over strategic infrastructure," it states.

The union added that it is time for Montenegro to harness the power of its own state-owned enterprise.

"We have results, we have knowledge and we have the financial capacity to develop the Airports of Montenegro ourselves — with the support and decisions of the Government of Montenegro that will enable this development to begin immediately," it concludes.