A Turkish consortium, the sole bidder to take over Islamabad airport operations, has offered a concession fee below the minimum threshold, the chairman of the bid evaluation committee said on Thursday.
Pakistan is seeking to generate revenue by accelerating the privatization process, including outsourcing the operation of three major airports.
The consortium, formed by Terminal Yapi, ERG Insaat and ERG UK, proposed paying the government 47 percent of its operating revenue in the form of a concession fee, below the minimum of 56 percent, the Airports Authority said. Pakistan (PAA).
The PAA, established on August 9, is an autonomous public sector body under the Ministry of Aviation.
The matter will now be referred to the International Finance Corporation (IFC), a member of the World Bank Group, which advises Islamabad on the outsourcing, before Pakistan makes a decision on whether the bid can be made.
“The details of the financial proposal… will be submitted and sent to the IFC for further evaluation and final reporting,” said Sadiq ur Rehman, chairman of the bid evaluation committee and deputy director general of the PAA.
Pakistan is also trying to offload a 60 percent stake in debt-ridden airline PIA to raise funds and reform state-owned companies, as envisaged in a $7 billion program by the International Monetary Fund.
A failed attempt to privatize the national flag carrier in October also received a single bid well below the asking price.
