ISLAMABAD: Pakistan has appointed the Asian Development Bank (ADB) as the financial and transaction adviser for outsourcing Islamabad International Airport under the IMF-dictated privatization program. The agreement marks the formal launch of the privatization process of the Islamabad International Airport.
Privatisation Commission Director General Shahid Dayo and ADB Country Director Emma Fan signed the Transaction Advisory Services Agreement. Moreover, senior government officials and ADB representatives attended the signing ceremony.
The ceremony included Adviser to the Prime Minister on Privatisation Muhammad Ali and Privatisation Commission Secretary Usman Akhtar Bajwa. Privatisation Division Secretary Hammad Shamimi and ADB Deputy Country Director Syed Hussain Haider also witnessed the signing.
Under the agreement, ADB will provide technical, financial, legal, environmental, and commercial advisory services. As a result, the airport outsourcing process will follow international standards and best practices.
Transparent Bidding Planned
The government said it will conduct the outsourcing through a transparent and competitive bidding process. Furthermore, officials expect the approach to attract leading international airport operators and investors.
Authorities aim to complete the outsourcing within nine months. Meanwhile, the due diligence phase will finish within three months. Officials also plan to finalize the transaction during the current fiscal year.
This appointment marks the first time a multilateral development institution has acted as a transaction adviser for a privatization project in Pakistan.
In addition, the government has started preparations to appoint a single financial adviser for outsourcing Karachi and Lahore international airports. Earlier estimates suggested both airports could attract more than $500 million each in fresh private investment.
