Indian company GMR gives up on Airports of Montenegro – Three companies remain, tendering expected soon

The Indian company GMR will not participate in the further procedure for obtaining a concession for the Airports of Montenegro, TV Nova M learns. The company is out of the race, because the French ADP, which, along with the Turkish TAV, also wants to run the airports in Podgorica and Tivat, has bought 49% shares from the Indian company.

Three companies will enter the race for the concession for the airports of Podgorica and Tivat – the French-Turkish consortium ADP/TAV, the South Korean Incheon International Airport Corporation and Corporacion America Airports.

Although the Indian GMR passed the pre-qualification procedure, the company is out of the race, as it recently sold 49% of its shares to the French ADP, thereby breaking the rules defined by the government.

The pre-qualification documentation says that a potential bidder cannot apply for pre-qualification if it or one of its members owns more than a 5% stake/share in another member of the potential bidder or any related company.

Also, the potential bidder cannot apply if any of its members has direct or indirect legal or ultimate interest in a 5% stake/share in another member of the potential bidder or any related company.

The potential bidder cannot apply if another member of the potential bidder or one of its related companies has direct or indirect legal or ultimate interest of more than a 5% stake/share in one of its members.

Although the sale of shares followed the pre-qualification public call, the rules also apply to continued negotiations, it was confirmed for TV Nova M.

The French ADP, together with TAV, will remain in the race for the Montenegrin airports, whereas GMR is out of the race.

The preparation of the tendering documentation is in progress, and the Ministry of Transport is expected to soon open a tender where the remaining three companies should apply.

The future bidder is obliged to pay at least EUR 100 million in advance and to pay at least 10% of the Airports' annual income to the state over the next 30 years.

The expected amount of investments is at least 80 million in the first three years and at least EUR 200 million during the investment period.

Airports of Montenegro

GMR India

ADp France

TAV Turkey

Incheon International Airport Corporation South Korea

Corporacion America Airports

Government of Montenegro

Ministry of Transport and Maritime Affairs

concession for the Airports of Montenegro

Airports of Montenegro concession