Corporación América Airports (CAAP) has reiterated its commitment to operate Montenegro’s airports under a 30-year concession, extending its bank guarantee until August 2027 following the withdrawal of the preferred bidder, Incheon International Airport Corporation from South Korea. This extension keeps CAAP’s offer legally and commercially viable, although it does not automatically grant them the concession.
The Montenegrin government now faces critical decisions regarding the tender process, including whether negotiations can occur with CAAP as the second-ranked bidder, if the remaining offer still reflects market value, or if it would be more prudent to abandon or restart the concession process altogether.
Montenegro’s situation is complicated by the profitability of its two airports and an increase in passenger traffic. The financial health of the state operator has improved since the concession process began in 2019, shifting the government’s focus from immediate private investment to a potential partnership with CAAP versus an increasingly viable state-funded development model.
CAAP has confirmed that it holds all necessary security instruments as required by the tender, including the renewed bank guarantee. The company emphasizes this extension as an indication of its readiness to invest in the airports in Podgorica and Tivat and to establish a long-term partnership with the government.
The validity of CAAP’s bid guarantee is significant, as it prevents the company from withdrawing without facing financial repercussions during this period. It also allows time for the government to clarify the legal status of the tender. However, it is important to note that this guarantee does not equate to secured financing for the entire investment program.
Currently, CAAP is the sole remaining bidder after Incheon and CAAP submitted proposals in May 2025. Initially, several established airport groups expressed interest in the tender. The final bidding stage saw offers from GMR Airports from India, and a consortium of Groupe ADP–TAV Airports alongside CAAP and Incheon; however, subsequent withdrawals left only two contenders.
The Tender Commission had awarded Incheon a score of 96.18 points compared to CAAP’s 65.15 points. Although a proposal was accepted in April 2026 to move toward awarding Incheon the concession, a final agreement was never finalized. Incheon formally withdrew on July 18, 2026, citing no public reasons for its exit.
This withdrawal removed the highest-scoring bidder and left Montenegro with an offer that was approximately 31 points lower than Incheon’s evaluation. The government must now determine whether this scoring gap indicates significant weaknesses in CAAP’s technical or financial proposals or if it stems from disputed evaluation procedures.
The tender process has already been marred by resignations from commission members, allegations of unequal treatment, disputes over technical scoring, and ongoing litigation. CAAP previously contested aspects of this process before the Administrative Court, claiming that changes in evaluation methods negatively impacted its standing as a bidder.
Despite CAAP’s continued interest in moving forward with its bid, Montenegro must carefully assess whether proceeding with this single bidder will result in securing optimal terms for investment, concession fees, service standards, and risk transfer.
While it may legally proceed with CAAP based on tender documents and Montenegrin concession law, any significant alterations to tariffs or investment plans could imply preferential treatment not afforded to other bidders. As such, a thorough legal opinion and updated financial assessment are crucial moving forward.
CAAP operates 52 airports across various countries and managed approximately 86.7 million passengers in 2025. Its proposal for Montenegro includes an investment plan estimated at €319 million for Podgorica and Tivat airports—€63 million more than Incheon’s offer—and aims to establish bases for low-cost airlines by 2029 and 2034.
The planned investment averages around €10.6 million annually over the proposed concession period; however, early-stage capital investment is essential for addressing current infrastructure constraints effectively. An updated construction schedule and financing plan will be necessary due to inflation and changing costs since initial tender assumptions were made.
Aerodromi Crne Gore reported revenues of approximately €57.44 million against expenses of €29.4 million for 2025, yielding a profit of €15.24 million. Projections for 2026 indicate revenue growth to about €65.93 million while maintaining similar expenditure levels.
As passenger traffic continues to rise—evidenced by reaching record levels in 2025—the argument for privatization shifts from rescuing an underperforming operator to enhancing investment capacity and improving service quality through private management.
Montenegro must weigh its options carefully regarding future airport operations while considering its strengthened negotiating position due to Aerodromi Crne Gore’s profitability and projected revenue growth.
With Tivat Airport facing seasonal operational challenges and Podgorica providing more stable traffic patterns, strategic planning will be essential for maximizing year-round connectivity while managing potential risks associated with private operation.
The decision on how to proceed with airport operations carries broader implications for Montenegro’s investment climate as it seeks alignment with EU standards. A transparent resolution process will be vital to maintain investor confidence moving forward.
