KARACHI: The head of the bid evaluation committee announced on Thursday that a Turkish consortium, the only bidder to assume control of Islamabad International Airport, had made a concession fee offer that was less than the required minimum.
The incumbent federal government has accelerated its privatization drive to increase the country’s revenue, which includes outsourcing the management of three major airports and selling the stake in Pakistan International Airline (PIA).
Reuters, citing Pakistan Airport Authority (PAA), reported that the consortium, which included Terminal Yapi, ERG Insaat, and ERG UK, offered to pay the government a concession fee of 47% of its operating revenue, falling short of the government-mandated requirement of 56%.
Before Islamabad decides whether the offer can proceed, the case will now be sent to the International Finance Corporation (IFC), a member of the World Bank Group that is advising Islamabad on the outsourcing.
The chairman of the bid review committee and deputy director general of the Pakistan Airports Authority, Sadiq ur Rehman, stated that the financial proposal’s contents would “be presented and forwarded to the IFC for further evaluation and submission of final reports.”
As part of a $7 billion International Monetary Fund (IMF) programme, Pakistan is also seeking to sell a 60% share in the indebted airline PIA, open a new tab to raise money, and overhaul state-owned businesses.
One bid, far less than the asking price, was also made for the October failed attempt to privatize the national flag carrier.
