The Pakistan Airports Authority (PAA) has denied claims that a financial bid for the outsourcing of Islamabad International Airport has been approved.
A statement released by PAA’s spokesperson clarified that the news of the approval of the financial bid by the TERG consortium is “baseless” and “misleading”, reported Express News.
The statement further stated that the issue of outsourcing is still under legal proceedings and is yet to be concluded.
The PAA urged the media and all stakeholders to refrain from spreading unconfirmed reports and wait for the official announcement.
The spokesperson emphasized that premature and inaccurate reporting on national matters can be harmful and the final decision will be communicated when appropriate.
Last week, a Turkish consortium, the sole bidder to take over the operation of Islamabad airport, had 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 a privatization push, including outsourcing the operation of three major airports.
The consortium, comprising Terminal Yapi, ERG Insaat and ERG UK, offered to pay the government 47 percent of its revenue from operations in the form of a concession fee, below the minimum requirement of 56 percent, the Pakistan Airports Authority (PAA) said.
Established on August 9, PAA is an independent public sector body working under the Ministry of Civil 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 go through.
“The details of the financial proposal will … be presented and sent to 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 PAA.
Pakistan is also seeking to relieve a 60 per cent. 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 privatize the national flag carrier in October also received a single offer well below the asking price.
