Turkish group bids below minimum fee for Islamabad Airport operations
1. Pakistan looks to generate revenue with privatisation push, including outsourcing three major airports
KARACHI: A Turkish consortium, the sole bidder for taking over the operations of Islamabad International Airport, has offered a concession fee below the government’s minimum threshold, according to Sadiq ur Rehman, chairman of the bid evaluation committee.
Facing financial challenges, Pakistan is aiming to boost revenue through an accelerated privatization initiative, including outsourcing the management of its three major airports.
The consortium—comprising Terminal Yapi, ERG Insaat, and ERG UK—proposed to pay the government 47% of its revenue from operations as a concession fee, falling short of the 56% minimum requirement set by the authorities, the aviation and airports authority confirmed.
The proposal will now be referred to the International Finance Corporation (IFC), a World Bank Group member advising Pakistan on airport outsourcing, for further evaluation and recommendations.
“The financial proposal details will be presented to the IFC for analysis and submission of a final report,” said Rehman, who also serves as the deputy director general of the Pakistan Airports Authority.
In addition to airport outsourcing, Pakistan plans to sell a 60% stake in its debt-laden national airline, PIA, as part of broader efforts to raise funds and restructure state-owned enterprises under a $7 billion International Monetary Fund program.
A previous attempt to privatize PIA in October also attracted only one bid, which fell significantly below the government’s asking price.
