The Montenegrin government has announced a suspension of its airport concession initiative for approximately 18 months. Instead, the state plans to allocate up to €10 million for immediate enhancements at Podgorica and Tivat airports ahead of the summer season in 2027.
Transport Minister Radoš Zečević stated that the government views the concession discussions as closed for the foreseeable future. A task force, led by the Prime Minister, is now addressing urgent capacity and infrastructure challenges at the airports.
This task force is focused on implementing 13 priority measures aimed at alleviating congestion in terminals, improving electricity supply, adding parking facilities and passenger canopies, and extending the runway at Podgorica Airport. The government aims to complete these improvements by the end of May 2027, prior to the main tourism influx.
Zečević indicated that the investment required for these initial upgrades could reach €10 million. This decision marks a significant shift in Montenegro’s airport strategy after prolonged discussions about granting long-term concessions to private entities.
For the upcoming tourism season, the focus will be on incremental enhancements rather than a comprehensive overhaul of airport operations. Previous concession proposals had suggested that private operators could provide necessary capital and management expertise for faster development of airport facilities.
The current approach assumes that Airports of Montenegro, the state-owned entity, can manage urgent needs independently while the government reevaluates its long-term operational model. The projected passenger traffic indicates that Podgorica and Tivat airports are expected to accommodate over 3 million passengers in 2026, creating significant pressure on existing infrastructure.
Tivat Airport faces particular constraints during peak summer months due to concentrated tourism activity, while Podgorica Airport has more potential for physical expansion alongside growing year-round demand from airlines adding new routes.
The proposed €10 million upgrade is relatively modest compared to an estimated €200 million to €300 million needed for comprehensive modernization of both airports. This program is intended primarily as a temporary relief measure rather than a full-scale solution.
Longer-term plans for Podgorica include terminal expansions and runway upgrades to accommodate larger aircraft, whereas Tivat will require extensive reconstruction of its terminal and airside facilities. A new master plan is anticipated to outline how these investments will be structured and financed.
The pause in concession discussions allows time for the government to assess whether Airports of Montenegro can self-fund a larger portion of these upgrades. The entity claims it has sufficient borrowing capacity to support significant investments, particularly given strong passenger growth which contributes predictable cash flow through airport fees and commercial revenues.
However, direct borrowing would maintain more investment risks within the public sector. In contrast, a concession would shift some financial and operational risks to a private operator in exchange for long-term control over airport revenues. This option may resurface after completion of the immediate upgrade program.
The primary focus remains on ensuring operational reliability as issues such as power supply security and terminal congestion have become increasingly apparent with rising traffic levels. Failing to resolve these issues before summer 2027 could hinder tourism growth and impact airline confidence.
Aviation plays a crucial role in Montenegro’s high-value tourism sector, with limited alternatives available via road or rail. Much of the increase in visitor numbers comes from European markets reliant on direct air access. Therefore, airport capacity directly influences broader economic factors including hotel occupancy rates, foreign investment in tourism and real estate, airline route decisions, and efforts to extend the tourism season.
Improved infrastructure could also lead to reduced delays and enhanced aircraft utilization for airlines while providing passengers with less crowded terminals and better access to ground transportation.
The challenge remains whether the government can effectively implement all 13 measures within an eight-month timeframe. Montenegro’s public infrastructure projects have often faced delays due to permitting, procurement, and land acquisition issues. The establishment of a Prime Minister-led task force aims to streamline these processes and ensure adherence to deadlines.
While discussions around concessions may have temporarily subsided, they are not entirely off the table as the state seeks to demonstrate its capability in stabilizing airport infrastructure independently. Successful execution of the €10 million program would enable Montenegro to enter the 2027 tourism season with enhanced capacity while allowing more time for deliberation on financing future expansions. Conversely, any delays could quickly revive arguments in favor of involving private operators.
