Sole Turkish group bids below threshold for Islamabad airport

Published January 3, 2025 Updated January 3, 2025 09:39am

KARACHI: A Turkish consortium, the sole bidder to take over the operations of Islamabad International Airport, has offered a concession fee below the minimum threshold, the chairman of the bid evaluation committee said on Thursday.

The government 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 per cent of its revenue from operations in the form of a concession fee, short of the 56pc 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 (PAA).

Pakistan is also looking to offload a 60pc stake in debt-ridden airline PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund programm.

Parking milestone

Meanwhile, the Islamabad airport management has successfully tested the parking of narrow-body aircraft on wide-body stands, said a spokesman for the PAA.

This milestone, configuring 8 out of 9 wide-body stands for narrow-body operations, marks a significant improvement in operational flexibility, reduced turnaround time, enhanced passenger convenience, and increased revenue for PAA.

Published in Dawn, January 3rd, 2025

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