A Turkish consortium, the sole bidder to take over operations of Pakistan’s Islamabad airport, has 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, is offering to pay the government 47% of its operating revenue as a concession fee, less than the 56% minimum set by the government, the aviation authority said. and airports. .
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 Pakistan Airports Authority. .
Pakistan is also trying to offload a 60% stake in debt-ridden airline PIA to raise funds and reform state-owned enterprises as envisioned by a $7 billion International Monetary Fund program. A failed attempt to privatize the national flag carrier in October also received a single bid, well below the asking price.
