The possibility of putting Mostar Airport under concession has opened a debate on the future of one of the key transport projects in Herzegovina. The Mostar City Council unanimously supported the decision that initiated the legal procedure, but this does not mean that the concessionaire has already been selected. This is just the first step.
The final decision on the concession will be made by the Government of the Federation of Bosnia and Herzegovina, and the procedure will be led by a special committee in which the City of Mostar, as the majority owner of Mostar Airport, will have two representatives.
Concessionaire not yet known
The City of Mostar believes that the current business model, which relies largely on subsidizing airlines, is not sustainable in the long term. It is expected that a serious concessionaire could attract new investments, open additional routes and use international business contacts to develop Mostar Airport. Mostar Mayor Mario Kordić (HDZ BiH) confirmed that there is a non-binding letter of intent from an interested American company.
“Somehow, the narrative is being imposed that they will be the ones to get the concession. However, this is a process defined by law and the question is who will be the concessionaire. I appeal to all those who will make decisions to choose a company that is serious, experienced and has successfully implemented similar projects in the world. I hope that we will choose the best one. I am quite sure that will be the case, because the entire process will be under the public scrutiny,” said Kordić.
City councilors are demanding that the interests of the public company and its employees be protected in the negotiations.
“As councilors, we have requested that the existing employees of the Airport, as well as the property of the public company during the negotiations, be protected,” said HRS councilor in the Mostar City Council Slaven Bevanda.
The content of the contract is key
NiP’s representative in the House of Representatives of the Parliament of the Federation of BiH, Admir Čavalić, believes that Mostar, with a well-prepared contract and clearly defined obligations of the future concessionaire, could get new low-cost carriers, more tourist arrivals and stronger economic development. However, he warns that the success of the entire project will depend precisely on the content of the concession contract and the protection of the public interest.
“Concessions are a practice that is applied throughout the countries of the Western Balkans, but also at European and international airports. What is important to emphasize is that a detailed, preferably in-depth analysis is needed before making a final decision,” said Čavalic.
He reminded that other airports in Bosnia and Herzegovina are considering a similar management model.
“Bihać Airport is also planning a concession. Tuzla Airport was not able to get a concession due to the unresolved issue of state property. We see that the issue of Sarajevo Airport is also open, while Mostar is currently making the fastest progress in this process,” explained Čavalic.
Business is stabilized
Despite a possible concession, infrastructure projects at Mostar Airport are continuing as if they will never happen. Mostar Airport Director Marko Đuzel points out that business has stabilized in recent years.
“If someone can provide the funds we need to address the numerous infrastructure constraints, then it is a good opportunity. Of course, it is necessary to carefully prepare the contract, protect the interests of the public company and analyze the experiences of others in order to avoid rookie mistakes, but I think a concession is not a bad opportunity,” said Đuzel.
He added that the airport is recording continuous growth in the number of passengers.
“Last year we had around 70,000 passengers, and this year in the first five months we are recording a growth of 10 percent. A somewhat more challenging summer is expected due to the cancellation of some flights to the Middle East due to the war,” said Đuzel.
Growth with state support
There are currently eight regular routes in operation, while the most popular destinations are Stuttgart, Düsseldorf and Belgrade. Although Mostar Airport is recording an increase in the number of passengers, its operations are still largely dependent on financial support from the Government of the Republic of Croatia and all levels of government in Bosnia and Herzegovina. This is precisely why many see an opportunity for more sustainable development and new investments in a potential concessionaire.
