Pakistan Airport Authority denies approving bid for Islamabad airport outsourcing
The Pakistan Airports Authority
(PAA) has refuted reports claiming that a financial bid for outsourcing
Islamabad International Airport has been approved.
In a statement, the PAA spokesperson
dismissed the news about the approval of a bid by the T.E.R.G. consortium as
"baseless" and "misleading," according to Express News. The
spokesperson clarified that the outsourcing process remains under legal review
and has not been finalized.
The PAA urged media outlets and
stakeholders to avoid circulating unverified information, emphasizing that
premature and inaccurate reporting on national matters could have harmful
consequences. The spokesperson assured that an official announcement would be
made at the appropriate time.
Read More Turkish consortium
submits below-minimum bid for Islamabad Airport
Last week, the sole bidder for the
airport's operations, a Turkish consortium comprising Terminal Yapi, ERG
Insaat, and ERG UK, submitted a concession fee proposal below the minimum
threshold. The consortium offered to pay the government 47% of its revenue as a
concession fee, falling short of the required 56%, according to PAA officials.
Pakistan is pursuing a privatization
drive to generate revenue, including outsourcing operations at three major
airports. The issue regarding the Islamabad airport outsourcing bid will now be
referred to the International Finance Corporation (IFC), a member of the World
Bank Group advising Pakistan on the process. The IFC will evaluate the
financial proposal and submit a final report before any decision is made.
Sadiq ur Rehman, chairman of the bid
evaluation committee and deputy director general of the PAA, stated, "The
details of the financial proposal will be presented to the IFC for further
evaluation and submission of final reports."
The PAA, established on August 9,
operates under the Ministry of Aviation as a public sector autonomous body.
Read More Turkish company’s bid
for Islamabad Airport approved
Meanwhile, Pakistan is also seeking
to privatize 60% of its debt-ridden national airline, Pakistan International
Airlines (PIA), as part of its $7 billion reform program under the
International Monetary Fund. However, a prior attempt to privatize PIA in
October attracted only a single offer, which was significantly below the asking
price.
Source: Express Tribune