Konjević: Professional Management is Best Solution for AMN

By , 10 Sep 2018, 12:32 PM Business
How much will the investments increase the capacities at airport Tivat?: Konjevic How much will the investments increase the capacities at airport Tivat?: Konjevic Savo Prelevic

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September 10, 2018 - The best solution for the required investments in the airports is the engagement of professional management with international reputation, which would have the ability to bring the company to the required level of efficiency and to realize the necessary investments with its own funds, a favorable credit arrangement without state guarantees and knowledge, said SDP deputy Raško Konjević.

He added that with the intention of concluding a concession arrangement for the Airports, the Government acknowledged that the management, which had been set up only a year ago by the Social Democrats (SD), is not capable of running this company with the monopoly business and realize the necessary investments.

"It would be good if the Prime Minister (Duško) Markovic affirms this important matter to the relevant Assembly Committee for Economy and Finance since the parliament president will not do it, no matter how the public debate ends, which has been inappropriately published during the annual vacations. Thus, the delegates and the citizens would be better acquainted with the model proposed. Would it be wrong that the relevant committee, through a number of consultative and controlling hearings, raised a dialogue on this important issue? Well, it would probably affirm controlling role of the Assembly," said Konjevic.

He recalls that in mature political societies the lease of an important state property is guided by a broad dialogue between the professional and political public. The 25 to 30-year concession, as he adds, is not a sale, but is a long period that will forbid the future generations to manage this resource.

"It is important for the delegates to receive investment responses and many other issues to make decisions based on valid information, not just political attitudes and daily talks. How much investment will increase the capacities at Tivat Airport and will it be comfortable for passengers and airline companies for the duration of the concession, bearing in mind that it is an airport with a seasonal character? The investment plan to be implemented by the concessionaire must ensure that during the duration of the concession and a certain period thereafter, it guarantees the capacities that will accompany the growth assessments of the passengers in that time period," Konjević said. According to him, generally in concession arrangements, it is important, inter alia, that the leased property cannot be put as mortgage by the concessionaire, that there is a clear investment plan and the terms of realization, the amount of the annual concession fee that represents the direct benefit of the budget, the obligation of current and capital maintenance of the existing and newly-built property, a signed collective agreement to let the workers know their rights. 

"Certainly, the quality of the contract is a key issue, as well as the fact that a potential concessionaire should be from states that share the strategic international aspirations of Montenegro. The problem of Montenegro airlines must not be the subject, either directly or indirectly, of a concession arrangement," Konjević said. B. Ma. 

The concession fee to be at least 15 million a year 

Considering that the net profit of the Airports in 2017 amounted to over EUR 5 million, almost nothing was returned to the budget of the citizens, Konjević considers that the minimum amount of the concession fee should be set by the tender. 

"It should not be less than EUR 15 million per year (expressed as the equivalent of the total gross income with the minimum absolute amount clause). For that period, for example, in 30 years, a minimum of 450 million euros would be invested directly in the budget. There would certainly also be other effects of paid taxes on all the bases that are now paid by the airports as well as realized investments. This amount of concession fee could be called a useful job for the state. All these and other issues must be discussed in the parliamentary committee," Konjević said.

Text by Biljana Matijasevic, on September 10th 2018, read more at Vijesti

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