According to Thursday’s bid evaluation committee’s chairman, a Turkish consortium has bid to take over operations at Islamabad’s airport but offered a concession fee below the required minimum.
Pakistan, facing financial difficulties, aims to boost revenue through a privatization initiative, including outsourcing the management of three major airports.
Comprising Terminal Yapi, ERG Insaat, and ERG UK, the consortium proposed paying the government 47% of its operational revenue as a concession fee, failing to meet its 56% minimum, stated the aviation and airports authority.
The International Finance Corporation (IFC), part of the World Bank Group advising Islamabad on this outsourcing effort, will review the bid to determine its viability.
Sadiq ur Rehman, the bid evaluation committee’s chairman and deputy director general of the Pakistan Airports Authority, noted, “We will present the financial details to the IFC for further assessment and the submission of final reports.”
Additionally, Pakistan plans to sell a 60% stake in the financially troubled airline PIA as part of efforts to raise funds and reform state enterprises, aligning with a $7 billion International Monetary Fund program. A previous attempt to privatize the national flag carrier in October also drew only one offer, significantly below the expected price.
