On Tuesday, it was decided to hire an outside company to manage Islamabad International Airport. This arrangement will last for 15 years. The external company has to pay $100 million upfront, which they won’t get back if they break any rules.
As per the provided information, the Islamabad International airport will be handed over to an external party for a period of 15 years, with a non-refundable upfront payment of $100 million to cover any third-party violations.
Furthermore, it has been indicated that the third-party entity will take charge of administrative matters, finances, design, and construction. They will also have the authority to build shopping malls and branded stores within the airport premises.
Under the agreement, the third party will also manage service charges, exchange rates, and the rent for these shops.
However, responsibilities concerning customs, site security, and immigration services will remain under the authority of the Civil Aviation Authority (CAA).
Earlier, the Aircraft Owners and Operators Association of Pakistan (PAOOA) expressed opposition to the government’s unilateral decision to outsource major airports without adhering to the PPRA rules. The association criticized the government’s secretive approach to the outsourcing process, which raised doubts about its transparency and legitimacy.
Former Federal Aviation Minister Khawaja Saad Rafiq stated that Islamabad Airport is being outsourced for 15 years to improve its operations. He clarified that this doesn’t mean selling the airport or job losses for employees.
Former Minister made it clear that this is not privatization. But a way to bring in skilled operators to enhance airport functions. He assured that runway and navigation operations won’t be part of the outsourcing.
The minister stressed that a fair bidding process will be followed, with the best bidder chosen to run the airport. The International Finance Corporation will guide this process, and several companies are interested in bidding.
He highlighted the success of outsourced airports in countries like India and Turkey. Mentioning that even the Medina airport has seen better services through outsourcing.
