The Aviation Division has extended the bid submission date for outsourcing of Islamabad International Airport (IIA) till March 15, 2024.
Sources told ProPakistani that the plan to outsource Islamabad International Airport has been delayed due to lack of interest.
Sources claim that initially, four companies showed interest in running the airport. However, the reason for the recent lack of interest from international parties is the stringent criteria.
The previous government had approved the plan of Outsourcing of Islamabad International Airport and asked bidders to submit bids till November 8, 2023.
It is pertinent to note that in August, ECNEC, on the summary of the Ministry of Planning approved outsourcing of IIA under Public-Private Partnership (PPP) mode.
The government was planning not only to raise capital but to undertake the modernization of the existing infrastructure of IIA and associated facilities by attracting private sector participation.
The Planning Commission had informed the ECNEC that the present value generated by the project under the proposed option-1 (PPP mode) is $434 million whereas in option-2 (traditional mode) the present value of the project is $409 million. Based on the present value, option-1 generates an additional net value of $25.65 million. The present value of project cash flows under both options has been estimated using a discount rate of 12 percent.
Planning Commission had also informed that the total concession period is 15 years and the estimated project cost is $135 million out of which $100 million is to be paid to the Civil Aviation Authority upfront by the successful bidder.