Fidelity has previously carried out an analysis of ACG's business performance, the perspective of increasing the price of airport services in Montenegro, with an overview of the opportunities in the environment and the draft concession contract prepared by MSPs engaged by the airports. According to Fidelity's analysis, the future tenant of the airport in Tivat and Podgorica will realize a clean profit of at least 289 to 584 million euros, depending on the scenarios for increasing the number of passengers and increasing the amount of airport taxes and other revenues. MSP, headed by Osman Nurkovic (BS), prepared drafts of concession and concession contracts for ACG, which he put on public discussion by September 10th. The member of the ruling coalition, SD is against the lease of the airport, as well as workers at airport Tivat, who have announced protests.
PHOTO: Boris Pejović
Fidelity states that Dean Capital was founded in Vienna in December 2015. In 2016, it had an accumulated a loss of 106,379 euros and a negative capital of 22,379 euros.
"Most of the assets of this company are investments worth EUR 122,360, which are related to the (poor) production of beer. They have one employee, which means that only one character made an economic analysis by which ACG's value for the quarter (25 years) was estimated at EUR 200.2 million, and this in case they remain in state ownership where nothing would be invested," Fidelity published on Facebook.
As they add, Dean Capital is, according to information from their official site, linked by its ownership structure to a brewing and beer distribution and company.
"The Brand of their beer is Non-Grata and have four types of, we must admit, lucidly-exotic beers called Gold digger, Exotic dancer, Bad bad banker and Shady shady diplomat (Suspicious diplomat). According to the available data, having one employee and judging from information from their Facebook profile, Non-Grata has been looking for new investors since 2016," states Fidelity.
Please note that none of the two sites of the Non-Grata beer producers can be viewed. "Still, Dean Capital Strategies will not be judged on the basis of, more than evident, unsuccessful beer business, but of their rather sketchy and ivast economic analysis of our ACG concession, which has been packed on a couple of trivial pages," says Fidelity. They add that, on the other hand, the company SteerDavies & Gleeve, represented by the European Bank for Reconstruction and Development (EBRD) for the economic analysis of the airport Tivat, was established in 1978 and in 2017 had a revenue of 44.4 million pounds (48 million euros ) and profit after tax reduction of one million pounds (1.1 million euros). The company's capital was £15 million. SteerDavies & Gleeve wrote that the net present value of economic benefits for Tivat airport alone is EUR 400 million for the period of 15 years. Therefore, only Tivat airport has twice the value of the total ACG value and that, for 1.5 times shorter time period," warns Fidelity Consulting.
They wonder how Dean Capital Strategies have come up with the numbers they presented to the MSP as an alleged argument that the state should put resources such as airports in concession. "We suppose that one employee in Dean had no physical capacity to do so, given that the analysis was done for a very short period of time, judging by the available data. Therefore, we ask: who should we believe more - the broke beer producers who are taking on consulting or a reputable consulting company? In the case of an airport valuation in Austria, would the Austrian Ministry of Transport engage Dean Capital Strategies to write such an analysis that does not have anything to do with the real state of affairs? How would the public in Austria feel if a consultant company from Montenegro came to them and did the valorization of their airport?" the consultancy company from Podgorica asks.
Fidelity tells the decision-makers of the Government that "if we are seen as a third-rate country in which some non-respectable consultant amateurs from the West can pass, we do not have to feel that way about ourselves." Fidelity announced the participation of its experts at the upcoming roundtable on the draft concession act and concession contract for the September 10th in Podgorica where, as they said, representatives of Dean Capital will be asked "a couple dozen questions extracted from the masterpiece embedded in the concession act valorization of ACG".
The Fidelity Consulting analysis has shown that Airports should be kept, invested in from company funds and applied for EU non-refundable grants. They say that in that way, everyone would make a profit, except the concessionaires, and if the government would remain with the plan to give the airports to the concessionaires, Fidelity suggested that much more money should be required from the concessionaires than projected by MSP.
The government, according to the proposal of the concession act, plans to charge 100 million euros in advance from the airport concession, and the concessionaire will make up for the money he does not charge from Montenegro Airlines. The draft does not eliminate the possibility for the state to come to a situation where it would pay the future airline concessionaires in Tivat and Podgorica more money than it will earn from it annually on behalf of the concession fee. SD said earlier that Nurkovic allegedly lobbies for the Turkish company TAV, which is the concessionaire for several airports in the region and has been intrigued to take on Montenegro as well. Nurkovic told them that everything will be lawful and will not "lead to the interests of the Social Democrats". Among the interested candidates to take over Tivat airport, are the new owner of the elite nautical-tourist center of Porto Montenegro, the investment fund of Dubai ICD, and investors from France, Canada and Israel.
Prime Minister Dusko Markovic said that Montenegro is not selling the airports.
"In the media and among the opponents of this approach, there is talk about the sale. No, that's a concession, we'll see in 25 or 30 years," Markovic said, answering questions from journalists in Villa Gorica. The procedure, as he explained, has a legal procedure, the public discussion lasts until September 10th, after which the prequalification procedure and the tender will take place.
Marković PHOTO: Gov.me
"There is still plenty of time for everyone in Montenegro to make a clear picture of the model proposed and its benefits," Markovic said. He said that for him personally, there is no dilemma that Montenegro should go in that direction, as it is an undeniable benefit to the state and its economy.
"Those who criticize can remain on the other side of the stage. I am prepared to talk to them very carefully," Markovic added. He also said that he would not comment on the management's ratings of the Montenegro Airport and said that their job was to manage the company during their mandate.
The Montenegrin Communist Alliance has said that the government should unify Montenegro Airlines and the Airports, so there would be no dispute between them. "Any decision by the Government to resolve this alleged problem by leasing the airport would be a big mistake. We believe that we do not have to sell or lease everything among the goods that Montenegro owns because it has been too much of this so far," the Communists said.
Text by Biljana Matijasevic and Sinisa Lukovic, on September 4th, 2018, read more at Vijesti
