CAAP Challenges Montenegro’s Airport Tender Decision, Demands Transparency

The Luxembourg-American company Corporación América Airports (CAAP) has lodged a formal complaint with Montenegro’s government concession commission following dissatisfaction with the latest decision from the tender commission. In a recent reevaluation, the South Korean firm Incheon International Airport Corporation (IIAC) was once again ranked as the top bidder for the concession of Montenegro’s airports, as reported by Pobjeda.

On November 12, 2023, the Ministry of Transport published a new list of bidders for the concession of the country’s airports, which mirrored the initial rankings announced on July 17, 2023. IIAC secured a score of 96.18, while CAAP was rated second with 65.15 points.

Concerns Over Evaluation Process

Montenegro’s Minister of Transport, Maja Vukicevic, indicated to Pobjeda that the ministry has a 30-day period to submit documentation to the government for final consideration. This timeline may shift depending on whether any bidders challenge the concession commission’s rulings.

CAAP argues that the tender commission failed to rectify issues identified in the initial evaluation process, despite being obligated to do so. The company asserts that the commission did not adhere to the guidelines set forth by the concession commission and neglected to provide a thorough, independent explanation of each member’s voting decisions.

CAAP insists that individual voting records must be accessible. They emphasize that the analyses and reports generated by the International Finance Corporation (IFC) were completed prior to the first ranking, which CAAP believes was the only legally valid assessment. In that initial evaluation, CAAP ranked first with a score of 85, while IIAC received 79.7 points.

Rather than conducting a new evaluation, CAAP claims the tender commission merely replicated the content of the IFC report without carrying out a lawful evaluation of its own. They criticize this approach as absurd and contrary to relevant laws, highlighting the necessity for complete transparency throughout the tendering process.

Demand for Full Transparency

CAAP is calling for a thorough examination of all communications between the tender commission and the IFC, as well as the circumstances surrounding alleged executive interference. Unofficial reports suggest that Montenegro’s Prime Minister Milojko Spajic attended one of the tender commission meetings, advocating for a new evaluation of the bids.

The company maintains that they should have access to all meeting records, not just those selected by the responsible authorities. They assert that they will vigorously pursue the truth and legality of the process, believing they should have been declared the top bidder in both evaluations and will continue to defend their rights.

The IFC serves as an advisor to the Montenegrin government regarding the airport concession process, leveraging its extensive experience in public-private partnerships, including airport concessions. In early September, the government’s concession commission partially upheld CAAP’s complaint regarding the bid rankings, delaying a final decision on the long-term leasing of Montenegro’s airports until the tender commission could provide a new rationale.

Minister Vukicevic has commented that the bids for the airport concessions could have been significantly improved. She believes that Montenegro has the capacity to develop its airports and aviation independently, emphasizing that the government has demonstrated its ability to manage airport operations effectively.