By Staff Reporter
ISLAMABAD: Pakistan on Thursday approved hiring of World Bank’s International Finance Corporation (IFC) to provide transaction support as the country initiated a process to outsource operations at three major airports on a public private partnership.
The government has planned to outsource operations of three major airports of the country to Qatar and the United Arab Emirates (UAE) among other operators to improve airport service standards and bring in the much-needed foreign direct investment.
The decision to appoint IFC was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, chaired by finance minister Ishaq Dar.
A statement said the ECC considered a summary of the Ministry of Aviation on engagement of “IFC as transaction advisor for the outsourcing of three airports”.
“The outsourcing of three airports has been initiated within the scope of Public-Private Partnership Act-2017 to engage private investor/airport operator through a competitive and transparent process to run the airports, develop appertaining land assets and enhance avenues for commercial activities and to garner full revenue potential.”
The IFC has qualified as a transaction advisor.
“The ECC after detailed discussion approved the draft Transaction Advisory Agreement (TASA), reached with the IFC by PCCA for outsourcing of three airports,” it added.
The government has been in talks with Qatar for the partnership to jointly run terminals at Islamabad, Karachi and Lahore airports.
No details of the partnership, or any agreement have been made official.
Islamabad has been negotiating the deal with Doha for several months, that began as part of an effort to find much needed foreign investment for the country.
Separately, Railways Minister Khawaja Saad Rafique said Islamabad had acquired the services of the IFC that has provided consultancy for dozens of airports, in this regard and was already working on outsourcing operations of the Karachi, Lahore and Islamabad airports.
“The government has offered it to Qatar, perhaps the UAE will also be offered,” Rafique said at a news conference in Islamabad.
“Anyhow, these three airports are on the radar, they should be upgraded, citizens will get the best facilities, Pakistan will get an upfront amount and foreign direct investment will come to Pakistan.”
The minister said the same model was being followed all over the world, quoting examples of some major airports in the UK, Germany, France, Saudi Arabia, Turkey and India.
“We are trying to follow the same model in the country, which should have been done decades ago.”
“All concerned ministries are on board and we are jointly working with the Public-Private Partnership Authority of the government… There will be no privatization, not an inch is being sold out.”
Rafique said the government would invite the best operators in the world for a competitive bidding to outsource airport operations.
“After a certain time period, they will leave, handing over everything to us.”
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