The origin of the Montserrat Caballé Principality of Andorra International Song Competition is found in the proposal presented by Montserrat Caballé to Sant Julià de Lòria Town Council and to Òscar Ribas Reig, to hold an opera competition in the Principality of Andorra. On 2nd December 1997, an agreement was signed between Montserrat Caballé and Reig Fundació to sponsor the first five editions, and Sant Julià de Lòria Town Council.

The objectives set in the five-year agreement (1999-2003) were to promote up-and-coming opera singers by means of an international competition to take place in the town of Sant Julià de Lòria and, in second place, to enable foreigners to find out more about this town and, therefore, about the Principality of Andorra.

The competition had an honorary presidency, held by the co-princes of Andorra, and an honorary committee, made up of diverse political institutions, as well as personalities, events and musical groups from all over. Its director was Dr. Albin Hänseroth, the fomer general and artistic director of the Kölner Philharmonie in Cologne, Germany, who passed away in 2004.

The prizes for the competitors had a dual nature: monetary and musical, with participation in other competitions and concerts, which gave the competition added value and made it a platform for launching competitors.

The master classes given by Montserrat Caballé took place immediately after the competition. In recent editions, the sopranos Ileana Cotrubas and Mady Mesplé had also been teaching singing.