Montenegro has effectively put its airport concession process on hold for at least around 18 months and will instead invest up to €10 million in immediate improvements at Podgorica and Tivat before the 2027 summer season.
Transport Minister Radoš Zečević said the government now considers the concession issue closed in the near term while a task force led by the prime minister focuses on urgent airport capacity and infrastructure problems.
The group is working on 13 priority measures, including relief of terminal congestion, improved electricity supply, additional parking and passenger canopies and an extension of the runway at Podgorica Airport.
The government wants the immediate programme completed by the end of May 2027, before the main tourism season.
Zečević estimated the initial investment could cost up to €10 million.
The decision provides greater clarity on Montenegro’s airport strategy after years of debate over whether the country should grant long-term concessions to private operators.
For at least the next tourism season, the state will focus on incremental improvements rather than a fundamental change in operating structure.
That is a significant policy shift.
Earlier concession discussions were based on the argument that private operators could bring capital, management expertise and faster development to the airports.
The alternative now being pursued assumes that state-owned Airports of Montenegro can address the most urgent constraints itself while the government reassesses the long-term model.
Passenger growth has made delay increasingly difficult.
Podgorica and Tivat are expected to handle more than 3 million passengers in 2026, placing heavy pressure on terminals, aprons, parking and other infrastructure.
Tivat is particularly constrained during summer, when tourism traffic is concentrated into a few months and the airport struggles with limited space.
Podgorica has greater physical expansion potential but is also seeing stronger year-round demand as airlines add routes.
The immediate €10 million programme is small compared with the estimated €200 million-€300 million potentially required for full long-term modernisation of both airports.
It should therefore be viewed as a capacity-relief package rather than a comprehensive solution.
The larger development programme still envisages significant terminal, apron and runway investment.
At Podgorica, longer-term plans include terminal expansion and runway improvements capable of handling larger aircraft.
Tivat requires a more extensive reconstruction of terminal and airside infrastructure.
A new master plan is expected to determine how those investments are structured and financed.
The 18-month concession pause gives the government time to test whether the state-owned operator can finance more of the programme directly.
Airports of Montenegro has argued that its own borrowing capacity could support significant investment.
Strong passenger growth strengthens that case because airport fees and commercial revenues provide relatively predictable cash flow.
But borrowing directly would keep more investment risk within the public sector.
A concession would instead transfer part of the financing and operating risk to a private operator in exchange for long-term control over airport revenues.
That choice is likely to return once the immediate upgrade programme is complete.
The near-term priority is operational reliability.
Power-supply security, congestion and insufficient terminal capacity have become increasingly visible as traffic expands.
Failure to address those constraints before summer 2027 could undermine tourism growth and airline confidence.
Montenegro depends heavily on aviation for high-value tourism.
Road and rail alternatives are limited, while much of the country’s growth in visitors comes from European markets that require direct air access.
Airport capacity therefore affects the wider economy.
It influences hotel occupancy, foreign investment in tourism and real estate, airline route decisions and Montenegro’s ability to extend the tourism season.
For airlines, better infrastructure could also reduce delays and improve aircraft utilisation.
For passengers, the most immediate gains should come from less crowded terminals and improved ground access.
The question is whether the government can deliver all 13 measures within eight months.
Montenegro’s public infrastructure projects have frequently encountered delays linked to permitting, procurement and land issues.
The prime minister-led task force appears designed to cut through some of those obstacles.
That gives the May 2027 deadline greater political weight.
The concession debate has not disappeared.
It has simply been deferred while the state tries to demonstrate that it can stabilise airport infrastructure itself.
If the €10 million programme is delivered on time, Montenegro will enter the 2027 tourism season with more capacity and more time to decide how to finance the much larger expansion ahead.
If it slips, the argument for bringing in a private operator could return quickly.
