Dr. Akhtar Gulfam, Editor-in-Chief, Daily Dawn, Director News, Dawn TV
ISLAMABAD: Following the sale of PIA, the Privatization Commission has announced that the outsourcing operation for the country’s three major airports, Islamabad, Lahore and Karachi, will be conducted on open bidding mode following a high level of interest from various investors.
The commission said that the aim of the change from government-to-government (G2G) mode to open bidding is to create a competitive process in which all domestic and foreign investors will have a level playing field to participate in the bidding process.
According to a statement by the commission, the competitive process welcomes the participation of all eligible entities, including those from partner countries, while providing equal opportunities to local and foreign investors.
The Commission said that this approach is designed to promote transparency and fair competition, deliver highly beneficial outcomes for Pakistan’s economy and strengthen relationships with international partners.
The government is considering options for Islamabad International Airport, Jinnah International Airport in Karachi and Allama Iqbal International Airport in Lahore through appropriate modalities, including management contracts and long-term commercial concessions.
As part of this strategy, Islamabad Airport has been included in the active privatization program in line with the ongoing process for Karachi and Lahore airports.
This follows constructive discussions with institutions from partner countries, including the United Arab Emirates, Turkey and Saudi Arabia, as well as other international stakeholders.
The Commission noted that the primary objectives are to enhance efficiency, improve service delivery, generate maximum revenue, upgrade infrastructure and attract private sector investment. These efforts are in line with the country’s economic vision to promote cooperation to modernize the aviation sector.
Roosevelt Hotel
Separately, the Privatization Commission has invited technical and financial proposals for the appointment of a financial advisor for the Roosevelt Hotel in New York, which aims to create a joint venture for the mixed-use development of an elite Manhattan property owned by the Pakistani government.
Proposals can be submitted until February 16, according to the commission’s website. The government plans to complete the transaction for the Roosevelt Hotel within a year.
The commission intends to offer the property for the establishment of a joint venture through the “best-suited transaction structure and privatization mode.”
The appointed financial advisor will be tasked with organizing market soundings to validate investor interest in the hotel.
The advisor should identify potentially interested parties and assess the level of interest in the transaction structure options included in the transaction structure report and the recommendations of the previous financial advisor.
In addition, the financial advisor will develop and implement an effective marketing strategy, subject to the approval of the Privatization Commission.
This includes developing and implementing a plan to introduce the Roosevelt site and project its image to enhance its prominence, “enabling potential investors to express interest in the property.”
The advisor will also be required to arrange meetings with potential investors to develop investor profiles and a better understanding of the investment environment.
Located in Midtown on Madison Avenue, the Roosevelt Hotel is the only real estate entity in the government’s privatization program.
The 19-story property is considered one of Manhattan’s elite hotels, with 1,025 rooms spread over 600,000 square feet. It is wholly owned by PIA Investments Limited (PIAIL), which is owned and managed by the Government of Pakistan.
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