The Pakistan Airports Authority (PAA) has denied allegations that a financial bid for outsourcing Islamabad International Airport has been approved.
A statement issued by the PAA spokesperson clarified that the news regarding the approval of the financial offer of the TERG consortium is “baseless” and “misleading”, Express News reported.
The statement further said that the matter regarding outsourcing is still subject to legal procedures and is not yet finalized.
PAA urged the media and all stakeholders to refrain from spreading unverified information and wait for the official announcement.
The spokesperson stressed that premature and inaccurate reporting on national issues could be detrimental, and the final decision will be communicated where appropriate.
Last week, a Turkish consortium, the only bidder to take over operations of Islamabad airport, had proposed concession fees below the minimum threshold, the chairman of the bid evaluation committee said on Thursday.
Pakistan is seeking to generate revenue by accelerating its privatization efforts, including outsourcing the management of three major airports.
The consortium, comprising Terminal Yapi, ERG Insaat and ERG UK, offered to pay the government 47 percent of its operating revenue in the form of concession fees, below the minimum of 56 percent, the Authority said Pakistan Airport (PAA).
The PAA, created on August 9, is an autonomous public 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 outsourcing – before Pakistan makes a decision on whether the bid will proceed. .
“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, chairman of the bid evaluation committee and deputy director general of the PAA.
Pakistan is also seeking to shed a 60% stake in debt-ridden airline PIA to raise cash and reform state-owned enterprises, as envisaged in the $7 billion International Monetary Fund program.
A failed attempt to privatize the national airline in October also received a single offer well below the asking price.
