- Pakistan seeks to generate revenue by accelerating privatization.
- The matter will now be referred to the International Finance Corporation.
- The government also wants to shed 60% of its stake in debt-ridden airline PIA.
KARACHI: A Turkish consortium, the sole bidder to take over operations of Pakistan’s Islamabad airport, has offered concession fees below the minimum threshold, the chairman of the bid evaluation committee said on Thursday.
The cash-strapped South Asian country is seeking to generate revenue by accelerating its privatization efforts, including outsourcing the management of three major airports.
The consortium, made up of Terminal Yapi, ERG Insaat and ERG UK, has offered to pay the government 47% of its operating revenues in the form of concession fees, below the minimum of 56% set by the government, said the Aviation and Airports Authority. .
The matter will now be referred to the International Finance Corporation (IFC) – a member of the World Bank Group, which advises Islamabad on outsourcing – before Pakistan makes a decision on whether the bid will succeed. .
“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, chairman of the bid evaluation committee and deputy director general of the IFC. Airports Authority of Pakistan.
Pakistan also seeks to shed 60% stake in debt-ridden airline PIA, opens in new tab to raise funds and reform state-owned enterprises as envisaged in the International Monetary Fund’s $7 billion program dollars.
A failed attempt to privatize the national airline in October also saw only one bid, well below the asking price.