Govt initiates outsourcing of three airports, ECC told
The Economic Coordination Committee (ECC) has approved the draft Transaction Advisory Agreement reached with the International Finance Corporation for outsourcing of three airports.
Finance Minister Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) today.
It was informed that the outsourcing of three airports has been initiated within the scope of Public-Private Partnership Act-2017 to engage private investor 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, Radio Pakistan reported.
READ: GOVT SPEEDS UP OUTSOURCING OF ISLAMABAD AIRPORT
The International Finance Corporation, a part of the World Bank Group, has been qualified as a transaction advisor.
In January, the federal government had formed an eight-member committee to begin process of outsourcing three major airports of Pakistan – Islamabad, Karachi and Lahore.
According to details, the committee would be headed by Director-General Civil Aviation Authority (CAA) Khaqan Murtaza.
In this connection, the committee has written a letter to managers of all three major airports, directing them to provide data of airports aviation ministry.
READ: PM SHEHBAZ ORDERS INITIATING OUTSOURCING OF THREE MAJOR AIRPORTS
The letter stated that the committee would also collect information from all directorate branches of three airports.
CAA issues clarification
Pakistan Civil Aviation Authority (PCAA) also clarified that the authorities commenced the outsourcing process of the country s airports but not privatisation.
The PCAA spokesperson said in a statement that the media reports regarding the privatisation of the airports are false. The government planned to upgrade the country s airports to the international standard to facilitate the nationals.
It added that the purpose of outsourcing airports is providing best services to the passengers at the airports. The outsourcing process will be based on competitive auctions, the PCAA said.
According to sources, the government has planned to prefer friendly countries for airports outsourcing. “The firms from Saudi Arabia, UAE, Qatar, China and Turkey will be invited on preferential grounds,” sources said.
Sources citing the Planning Division have said that the country will earn 250 to 300 US million dollars in a year from outsourcing of airports.
The government will contract to outsource airports for 25 years, sources said. Under the agreement airport terminal services, parking, airport storage, cargo handling and cleaning sections will be outsourced, sources said.
Civil aviation will keep airport security and air traffic control with it. The CAA earns Rs 30 bln per annum from the three largest airports in the country, sources added.