Islamabad (TDI): A Turkish consortium, the sole bidder to take over the operations of Islamabad airport, has offered a concession fee below the minimum threshold, the chairman of the bid evaluation committee revealed on Thursday.
Pakistan is looking to generate revenue by speeding up a privatisation drive, including outsourcing the running of three major airports.
The consortium, including Terminal Yapi, ERG Insaat and ERG UK, proposed paying the government 47% of their operational as a concession fee, falling short of the 56% minimum required, the Pakistan Airports Authority (PAA) said.
The Pakistan Airports Authority, established on August 9 is a public sector autonomous body working under the aviation ministry.
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The matter will be referred to the International Finance Corporation (IFC) – a World Bank Group member advising Pakistan on the outsourcing process- before Islamabad decides on the bid’s approval, according to media reports.
Pakistan is also seeking to sell a 60% stake in the debt-laden national carrier, PIA, as part of efforts to raise funds and reform state-owned enterprises as envisaged under a 7 billion dollars International Monetary Fund (IMF) programme.
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A failed attempt to privatise PIA in October also received a single offer well below the asking price.
