A three-party Turkish consortium, the only bidder to take over the operations of Pakistan's Islamabad airport, has offered a concession fee below the minimum threshold, the chairperson of the bid evaluation committee said on Thursday, leaving the decision on a potential deal in the hands of international advisor on the matter.
The cash-strapped South Asian country is looking to generate revenue by speeding up a privatization push, including outsourcing the running of three major airports.
The consortium, comprising Terminal Yapı, ERG Inşaat and ERG U.K., bid to pay the government 47% of its revenue from operations as a concession fee, short of the 56% 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 outsourcing before Pakistan decides 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 chairperson of the bid evaluation committee and deputy director general of Pakistan Airports Authority.
Pakistan is also looking to offload a 60% stake in debt-ridden Pakistan International Airlines (PIA) to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program.
A failed attempt to privatize the national flag carrier in October also received a single offer, well below the asking price.
