ISLAMABAD: The federal cabinet has rejected the offer of a bidding consortium for the outsourcing of Islamabad International Airport, mainly because the consortium could not meet the reserve price.
The consortium, consisting of Terminal Yapi Ve Ticaret Anonim Sirketi, Erg Insaat Ticaret Sanayi Anonim Serketi, and Erg International UK Ltd, had offered 46 per cent share in the gross revenue for the airport authority, falling short of the reserve price of 56 per cent set by the Pakistan Airport Authority.
The Board of the Pakistan Airport Authority had recommended the federal cabinet to reject the consortium’s offer. “Now the outsourcing of Islamabad International Airport will commence once again,” the relevant sources said, adding that it might take a few months.
The gross revenue of Islamabad International Airport is estimated at Rs34 billion on per annum basis, and after deduction of air navigation and other charges, the net revenues stands at Rs16-17 billion.