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Islamabad: A Turkish consortium, the only bidder for the management of Pakistan’s Islamabad airport, has proposed a concession fee that falls below the required minimum threshold, according to the chairman of the bid evaluation committee on Thursday.
This development is part of Pakistan’s broader strategy to expedite privatization efforts, which encompasses the outsourcing of operations at three key airports, aimed at enhancing national revenue.
The aviation and airports authority has reported that the consortium, comprising Terminal Yapi, ERG Insaat, and ERG UK, proposed a concession fee of 47% of its operating income. This offer does not meet the government’s stipulated requirement of 56%.
Before a decision is made regarding the offer, the case will now be forwarded to the International Finance Corporation (IFC), which is part of the World Bank Group and is providing guidance to Islamabad on the outsourcing matter.
“The details of the financial proposal will … be presented and forwarded to the IFC for further evaluation and submission of final reports,” said Sadiq ur Rehman, the chairman of the bid evaluation committee and deputy director general of Pakistan Airports Authority.
As part of a $7 billion International Monetary Fund initiative, Pakistan is also seeking to sell a 60% share in the indebted airline Pakistan International Airport(PIA) to generate money and overhaul state-owned businesses.
The government’s previous attempt to privatize PIA in October was unsuccessful, receiving a single bid that was well below the asking price.
