Turkish group bids below minimum fee for Islamabad Airport operations

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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 said on Thursday.

Pakistan 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, the Pakistan Airports Authority (PAA) said.

The PAA, established on August 9 is a public sector autonomous body working under the aviation ministry.

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 the 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 programme.

A failed attempt to privatise the national flag carrier in October also received a single offer well below the asking price.

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