The decision to outsource Islamabad International Airport was finalised on Tuesday. According to the details, the airport will be under third-party management for 15 years, with a non-refundable advance payment of $100 million in case of any third-party violations.
Administrative, financial, design, and construction responsibilities will be handled by the third party. They will also have the authorisation to construct shopping malls and brand shops within the airport. The third party will retain control over service charges, exchange rates, and shop rents as per the agreement.
According to ARY News, Customs, site security, and immigration services, on the other hand, will continue to be managed by the Civil Aviation Authority (CAA), according to sources.
Previously, the Aircraft Owners and Operators Association of Pakistan (PAOOA) expressed opposition to the government’s unilateral decision to outsource the country’s major airports without adhering to PPRA rules.
The association criticised the government for awarding contracts to IFC and the World Bank (WB) for the outsourcing of three airports. The association’s statement questioned the secrecy surrounding the outsourcing process, raising doubts about its transparency.
