Pakistan Airports Authority (PAA) has denied claims that a financial bid for subcontracting of Islamabad International Airport has been approved.
A statement released by the PAA spokesperson clarified that the news about the approval of the TERG consortium’s financial offer is “unfounded” and “misleading,” Express News reported.
The statement further states that the issue regarding outsourcing is still under legal process and is not yet finalized.
The PAA urged the media and all interested parties to refrain from spreading unverified reports and wait for the official announcement.
The spokesperson stressed that premature and inaccurate reporting on national issues could be detrimental, and the final decision will be communicated when appropriate.
Last week, a Turkish consortium, the sole bidder to take over Islamabad airport operations, had offered a concession fee below the minimum threshold, the chairman of the bid evaluation committee said on Thursday.
Pakistan is seeking to generate revenue by accelerating the privatization process, including outsourcing the operation of three major airports.
The consortium, formed by Terminal Yapi, ERG Insaat and ERG UK, proposed paying the government 47 percent of its operating revenue in the form of a concession fee, below the minimum of 56 percent, the Airports Authority said. Pakistan (PAA).
The PAA, created on August 9, is an autonomous public sector body that depends on the Ministry of Aviation.
The matter will now be referred to the International Finance Corporation (IFC), a member of the World Bank Group, which advises Islamabad on the outsourcing, before Pakistan makes a decision on whether the bid can be made.
“The details of the financial proposal… will be submitted and sent to the IFC for further evaluation and final reporting,” said Sadiq ur Rehman, chairman of the bid evaluation committee and deputy director general of the PAA.
Pakistan is also trying to offload a 60 percent stake in debt-ridden airline PIA to raise funds and reform state-owned companies, as envisaged in a $7 billion program by the International Monetary Fund.
A failed attempt to privatize the national flag carrier in October also received a single bid well below the asking price.
