CAA to Outsource Management of New Airport of Islamabad, Lahore Airport and Karachi Airport

[Abbas Ali]

The plan to outsource airport management has been cancelled, according to following public notice in July 24 newspaper:



Abbas

[Abbas Ali]

Chief Justice of Pakistan has taken suo motu notice of plan to outsource airports' management/services. The hearing will take place on April 24.

Abbas

[Abbas Ali]

Qatar aspires to acquire the management of three big airports of Pakistan in Karachi, Islamabad and Lahore.

Info source: https://www.thenews.com.pk/print/488141 ... n-pakistan

Abbas

[Abdulrafeysiddiqui]

I hope this happens. The current management is totally useless and those who can perform well aren't allowed to make decisions and implementations.

[Abbas Ali]

Today, Prime Minister Imran Khan received briefing on interest shown by foreign investment companies/groups in acquiring management of Pakistani airports.

Abbas

[Abbas Ali]

Federal Cabinet meeting chaired by Prime Minister Imran Khan today received briefing on outsourcing management of Pakistan's major international airports.

The meeting was informed about offers received from various companies

Further decision on outsourcing airports management to be taken after bifurcation of Pakistan CAA into aviation regulatory and airport services bodies.

A committee to be headed by Aviation Minister Ghulam Sarwar Khan to process outsourcing of airports management on fast track.

Abbas

[Abbas Ali]

Cabinet forms committee to fast-track outsourcing of airports

ISLAMABAD, May 19 (APP): The Federal Cabinet after a thorough discussion on Tuesday constituted a committee to prepare a legal framework by June 30 to outsource the country’s major airports to bring them at par with the international standards.

Briefing the media persons about the decisions of cabinet meeting chaired by Prime Minister Imran Khan, Minister of Information and Broadcasting Senator Shibli Faraz said the government was looking for some international firm that had an experience to operate and manage the airports.

The objective of the move was to bring Pakistan’s airports up to the international standards with the provision of all those facilities that were available at the major airports of the developed countries, he added.

Shibli Faraz said the cabinet meeting was informed that some firms had already shown interest in the matter. A legal framework would be devised before the start of tendering process starts. The committee headed by Aviation Minister Ghulam Sarwar Khan and comprising Special Assistant to the Prime Minister on Overseas Pakistanis Zulfiqar Bukhari, Adviser to the PM on Parliamentary Affairs Babar Awan, Adviser to the PM on Commerce, Trade and Industry Abdul Razzak Dawood and the Board of Investment (BoI) chairperson as members, would fast-track the process.

Source: APP

[Abbas Ali]

Qatar refuses to invest in Pakistan’s three major airports

ISLAMABAD: The Qatar Investment Authority (QIA) has excused from investing in Pakistan airports mainly because of deviation from model of 2017 by authorities concerned in Pakistan under which they don't want to hand over airport operations to professional management.

Now authorities in Pakistan desire to outsource individual services like parking services, tuck shop services, restaurant services, so that they could retain operational control. “The deviation by the authorities concerned from the earlier model carved out in 2017 under which expression of interests were sought for ‘Operation Management and Development Agreement’ and ‘Airport Services Licence’ is the main reason of refusal by Qatar Investment Authority to invest in major airports of Pakistan,” reveal the official documents.

Qatar wanted government of Pakistan to transfer the ownership of three airports, which include Islamabad Airport, Jinnah International Airport, Karachi and Allama Iqbal Airport, Lahore through purchasing the stakes of the government owned company up to 40 percent. The Qatar Investment Authority under new scenario has shown no interest in the government’s offer of outsourcing the commercial activities of the said airports.

This was told to Prime Minister of Pakistan by the authorities concerned in the federal cabinet meeting, as per the documents, when the top man of the country asked about the fate of the offer made by Qatari government in outsourcing of airports. The prime minister was told that Qatari side is no more interested in airports operations, instead it had asked for shareholding in all the three major airports. However, prime minister expressed his anguish over failure of authorities concerned in alluring investment from Qatar.

Qatar Investment Authority had desired GoP to transfer the ownership of the three airports in the name of the government owned company and buy 35-40 percent strategic stakes in that company.

According to the official documents available with The News, during the visit of Prime Minister of Pakistan Imran Khan to Qatar, the Qatari Ameer had expressed desire for investment in Pakistan’s major airports, but necessary efforts are not made in that direction and on top of that mere commercial concessions airport of Islamabad were offered for outsourcing. However, Qatar Investment Authority did not show interest in new plan of Aviation Division.

The documents unfolded that a committee comprising Adviser to PM on Commerce and Investment, Minister for Aviation, Adviser to PM on Parliamentary Affairs, Special Assistant to PM on Overseas Pakistanis, Chairman Board of Investment and Secretary Aviation has been consisted to evaluate the available options and recommend the way forward. The committee, according to the documents, has also been directed to complete by June 30, 2020 segregation of regulatory and operational functions of Civil Aviation Authority along with two drafts legislation. The segregation of regulatory and operational functions of Civil Aviation Authority is must to allure the investment in aviation industry of Pakistan.

Source: The News

[Abbas Ali]

Airports may be outsourced on competitive bidding basis

MUSHTAQ GHUMMAN

June 05, 2020

ISLAMABAD: The government is likely to outsource major airports on competitive bidding basis instead of to any specific country, well-informed sources told Business Recorder .

On Thursday, Advisor to the Prime Minister on Commerce & Investment, Abdul Razak Dawood chaired the first meeting of the committee formed by the cabinet on outsourcing of major airports of Pakistan. The meeting was attended by the Advisor to PM on Parliamentary Affairs, Zaheer-ud-din Babar Awan, SAPM on OP&HRD, Sayed Zulfikar Abbas Bukhari, and Secretary Aviation Division. The Chairman Board of Investment, Atif Riaz Bokhari, also attended the meeting through a video link.

Last month, during a cabinet meeting, Prime Minister Imran Khan enquired about the fate of the offer made by Qatar for participating in the outsourcing effort. It was explained that the Qatari side was not interested in airport operations and instead desired shareholding in all of the three major airports. So far no serious offer had been made by the Qatari side.

One of the members pointed out that during Prime Minister’s visit to Qatar, the hosts had expressed genuine investment interest in Pakistan’s major airports, however, necessary efforts were not made in that direction. The cabinet has directed the committee to finalize recommendations to outsource major airports by June 30, 2020.

The committee deliberated upon two aspects of airport operations namely regulatory part of Civil Aviation Authority and the commercial part of operations. During the meeting, various options, along with the associated legal aspects, were discussed in detail, keeping in view the segregation of regulatory and commercial sides.

Representatives from the Privatization Commission were also consulted during the meeting on their perspective regarding the available options for outsourcing of airport operations.

Referring to the importance of outsourcing of commercial operations of airports in Pakistan, Razak Dawood said that there is a big potential in the airport-related commercial activities, which can be exploited by bringing in knowledge and experience from major international experts in the aviation industry. He added that the gap in non-aeronautical activities at major airports of Pakistan, including duty free shops, restaurants and commercial outlets, can be efficiently filled by such expertise, thereby bringing our airports at par with leading airports globally.

Razak Dawood also said that interest was being shown by different global investors in Pakistani airports. He underscored that international best practices would be ensured in overall operation and management of various activities by bringing in international investors and generating overall goodwill of Pakistan among various stakeholders as well as in the aviation industry around the world.

Underlining the significance of bringing in foreign investment, Razak Dawood said that the foreign direct investment always acts as a catalyst to socio-economic development in the country, as it results in creating thousands of jobs in the country. He further said that the move would restore the confidence of private sector of Pakistan as well, which, in turn, will also invest in airport related industry

After deliberations, the Committee decided to meet again after one week to finalize proposals for the Cabinet.

The sources said, the government will approach the Qatari government to remind it about previous commitments at high level meetings. The committee will also recommend different options to outsource airports and segregation of operational and regulatory functions.

Source: brecorder.com

[Abbas Ali]

Pakistan CAA employees at Islamabad Airport staging protest against plan to outsource management of the airport.





Abbas

[Abbas Ali]

Federal Cabinet meeting on August 11 to be chaired by Prime Minister Imran Khan to receive briefing on outsourcing of airports' management.

Abbas

[Abbas Ali]

Today, federal cabinet meeting advised authorities to complete legal work in ninety days for legislation on outsourcing airports' management.

Information Minister Shibli Faraz also informed that there are around twenty-seven airports in Pakistan. However, only airports of Islamabad, Karachi, Lahore, Peshawar and Multan are earning profit, he said.

Abbas

[arshad.altaf]

There should be a correction to Mr Faraz's statement. The aforementioned airports were earning a profit before the coronavirus pandemic. I doubt if they are currently running in profit and will do so in the near future. But who is checking.

[Abbas Ali]

Adviser to Prime Minister of Pakistan for Commerce and Investment Abdul Razak Dawood has presented to Prime Minister Imran Khan finalized report on outsourcing of major airports of Pakistan.





Abbas

[Abbas Ali]

Briefing on outsourcing management of major airports of Pakistan is part of the agenda of federal cabinet meeting on September 1.

Abbas