CAAP Challenges Concession Decision for Montenegrin Airports

The Luxembourg-American company Corporación América Airports (CAAP) has formally lodged a complaint against the Government’s Concession Commission in Montenegro. This action follows the commission’s recent decision to rank the South Korean firm Incheon International Airport Corporation (IIAC) as the top bidder in the re-evaluation process for the concession of Montenegrin airports. According to local reports, CAAP is dissatisfied with the outcome announced on November 12, 2023, which maintained the initial rankings established in July.

The Ministry of Transport released a new list of bidders for the concession of airports in Montenegro, confirming IIAC’s score of 96.18 points compared to CAAP’s 65.15 points. Minister of Transport Maja Vukicevic stated that the ministry has 30 days to submit documentation to the government, which will lead to a final decision. This timeline may change depending on whether any bidders challenge the commission’s ruling.

Concerns Over Evaluation Process

CAAP has raised concerns that the Tender Commission did not address shortcomings identified during the initial bidding process. They argue that the commission failed to comply with guidelines issued by the Concession Commission and did not provide an independent and detailed explanation of each member’s voting rationale. CAAP insists that individual voting transparency is essential for the process.

Specifically, the company highlights that analyses and reports from the International Finance Corporation (IFC) were produced before the first ranking, which CAAP believes should have been the only legally binding evaluation. In the initial round, CAAP’s proposal had been ranked first with 85 points, while IIAC received 79.7 points.

CAAP contends that, instead of conducting a new evaluation, the Tender Commission merely replicated content from the IFC report without implementing its own lawful assessment. They describe this approach as absurd and contradictory to relevant laws, emphasizing the need for complete transparency in the evaluation and verification of the entire tender process.

Call for Transparency and Investigation

In light of these issues, CAAP has called for a thorough examination of all communications between the Tender Commission and the IFC. They have also raised concerns about alleged interventions by executive authorities, noting that Prime Minister Milojko Spajic reportedly attended a Tender Commission meeting to request a new evaluation of the bids.

CAAP asserts that it must access all recorded minutes of meetings, not just those selected by the competent authorities. The company has vowed to continue its efforts to uncover the truth and legality of the commission’s stance, maintaining that it should have been declared the top bidder in both rounds of evaluation.

The IFC was engaged as an advisor in the concession process based on an agreement with the Government of Montenegro. As a part of the World Bank Group, the IFC has extensive experience in providing advisory services related to public-private partnerships, including airport concessions.

Earlier in September, the Concession Commission accepted a partial complaint from CAAP regarding the ranking of bidders for the Podgorica and Tivat airports. This decision delayed the final verdict on whether Montenegro’s airports would be leased for a multi-year period, as the government awaited a new explanation from the Tender Commission before making a conclusive determination.

Minister Vukicevic indicated that the bids for the Montenegrin airport concessions could have been more competitive, suggesting that the state possesses the capacity to develop its airports and air traffic independently. She emphasized that the government has demonstrated its ability to manage airports in the past.