Turkish Consortium Submits Bid Below Minimum Threshold for Islamabad Airport Takeover
A Turkish consortium, the only group bidding for the management of Pakistan’s Islamabad airport, has proposed a concession fee below the government’s required minimum, according to the chairman of the bid evaluation committee on Thursday.
As part of its privatization efforts, Pakistan is looking to accelerate the outsourcing of key airports, aiming to boost revenue.
The consortium, made up of Terminal Yapi, ERG Insaat, and ERG UK, has offered to pay the government 47% of its operational revenue in the form of a concession fee, falling short of the 56% minimum set by the government. The aviation authority confirmed the details of the bid.
The matter will now be forwarded to the International Finance Corporation (IFC), part of the World Bank Group, for further analysis before Pakistan decides whether to accept the bid.
Sadiq ur Rehman, chairman of the bid evaluation committee and deputy director general of Pakistan Airports Authority, stated that the financial proposal would be reviewed by the IFC, which will issue final reports on the bid.
In addition to airport privatization, Pakistan is aiming to sell a 60% stake in its financially troubled airline, PIA, as part of a strategy to raise funds and reform state-owned enterprises, in line with a $7 billion International Monetary Fund program. A previous attempt to privatize PIA in October only received one bid, which was well below the required price.
