January 02, 2025 (MLN): A Turkish consortium, the sole bidder for taking over operations of Pakistan's Islamabad airport, has submitted its proposal, as Reuters reported.
However, the concession fee offered is below the minimum threshold, according to the chairman of the bid evaluation committee on Thursday
The cash-strapped South Asian country is looking to generate revenue by speeding up a privatisation push, including outsourcing the running of three major airports.
The consortium, comprising Terminal Yapi, ERG Insaat and ERG UK, bid to pay the government 47% of its revenue from operations in the form of a concession fee, short of the 56% minimum set by the government, the aviation and airports authority said.
The matter will now be referred to the International Finance Corporation (IFC) a member of the World Bank Group, which is advising Islamabad on the outsourcing before Pakistan takes a decision on whether the bid can go through.
"The details of the financial proposal will … be presented and forwarded to the IFC for further evaluation and submission of final reports," said Sadiq ur Rehman, the chairman of the bid evaluation committee and deputy director general of Pakistan Airports Authority.
Pakistan is also looking to offload a 60% stake in debt-ridden airline PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.
A failed attempt to privatise the national flag carrier in October also received a single offer, well below the asking price.
