An analysis assessing the feasibility of a public-private partnership for the valorization of Aero-Park Berane has concluded that the investment is financially viable. This document will guide the evaluation of the conditions and funding sources needed for the airport’s revitalization.
The Ministry of Transport has confirmed to “Vijesti” that they have received the final version of this analysis, prepared by Ernst & Young and TCT Consulting from Belgrade. The Government’s approval is now required to move forward with the project.
“The analysis shows a positive outlook and recommends investing in Aero-Park Berane as a viable option. Once the Government is informed, the analysis will be made publicly available on the ministry’s website. It helps the public client assess whether and under what conditions the revitalization of the airport can be financed independently or in collaboration with a private investor. Additionally, the analysis aims to demonstrate the potential impact of such investment on the local community, including job creation,” stated the ministry led by Minister Maja Vukićević.
Relocation of houses necessary
The valorization of Berane Airport was initiated during Prime Minister Dritan Abazović’s administration in 2023. At that time, Mike Steinmiller, the owner of Elite Private Jet Service, a potential investor for the project, signed a memorandum for the airport’s valorization with Abazović and Vuko Todorović, the former president of the Municipality of Berane, in early April 2023. Abazović emphasized the need to establish the administrative conditions for the investment as quickly as possible. The project is expected to be funded by Future World Technologies, represented by Steinmiller.
Although construction was initially planned for that year, it has not commenced due to the need to address administrative barriers, including modifications to planning documents to properly designate facilities within the airport’s vicinity. Issues with existing structures on the site, some of which are illegally built, also need resolution, along with conducting a public-private partnership feasibility analysis for the new development. This analysis should outline all costs associated with the project and its impact on both the state budget and the Municipality of Berane. Furthermore, the airport must be included in the concession granting plan for the project to begin.
The Ministry of Transport clarified that the analysis does not address the mapping of essential infrastructure such as taxiways, terminals, parking areas, and fuel supply arrangements.
“To proceed, compliance with the Law on Public-Private Partnerships is necessary. Once the Government approves the project, feedback must be obtained from the Investment Promotion Agency, the Ministry of Finance, and the Protector of Property Rights of Montenegro. Ultimately, based on the approved proposal, the Government will decide on initiating the contract awarding process for the public-private partnership. The selection of the most favorable bidder will be based on the economically most advantageous offer,” the ministry explained.
Given the need to relocate households near the airport perimeter due to regulations, it was indicated that the private partner might also be interested in participating in building residential facilities for relocated families.
“The public client will bear the remaining obligations in accordance with expropriation regulations. However, we currently lack precise data on state costs, the number of apartments in the new buildings, or the allocation process. Regarding the bus station, the feasibility analysis has proposed its construction within Aero-Park Berane, with clearer information to be provided following detailed urban planning,” the Ministry noted.
They further emphasized that since there is no official Government stance yet on proceeding with the process, no expropriation has taken place, and no legal or illegal structures have been demolished or purchased.
Plans for food processing and nanotechnology factories
In April 2023, Mike Steinmiller told “Vijesti” that as soon as they receive the airport concession, they will commence initial construction efforts.
He explained that the airport’s business model will focus on passenger and cargo flights, as well as firefighting operations, and will include two factories for food processing and nano-solar technology.
“The food processing facility will produce items for the United Nations World Food Programme. The second factory will specialize in nano-solar technology. Our production will be fully automated and CO2-neutral,” Steinmiller stated.
He added that the Municipality of Berane has proposed locations for these factories, but no decisions have been finalized. The first production units for nano-solar products are planned to be built adjacent to the airport.
When asked about the estimated investment value, Steinmiller indicated it would be the largest project in northern Montenegro in decades, both in terms of new job creation and the investment amount.
“We are planning around 300-400 direct employees and an additional 500-600 jobs in the vicinity of the airport, as it will attract additional businesses. The airport serves as a magnet for job opportunities, requiring additional suppliers, taxi and bus drivers, and travel agencies. We are confident that the airport will draw other companies to Berane, leading to further job creation,” Steinmiller stated, without specifying the total investment.
He noted that Elite Private Jet Service, founded in 2005, offers private flights globally and provides services at over 400 airports.
Future World Technologies, financing the Berane Air Park project, is investing in various global projects, including nano-solar technology, water treatment, wind turbines, ocean cleaning, sustainable fuels from algae, geothermal energy and recycling rubber and plastics.
Investment project scope
According to the project specifications previously reported by “Vijesti,” the potential investment includes a fire station for six vehicles, a hangar for firefighting planes measuring 20 meters long, a helipad for rescue helicopters, a VIP taxi station about 26 meters wide, a cargo runway approximately 600 meters long, with a distance of 66 meters to the sea, a cargo center building of around 40,000 square meters, and 24 meters high.
Additionally, the terminal building will have two levels, 10 counters, approximately 21,000 square meters for short-term and long-term parking, a bus station, a building for flight equipment, a gas station, and more.
