The Pakistan Civil Aviation Authority (CAA) has engaged the International Finance Corporation (IFC) for transaction advisory services to outsource operations and maintenance of Islamabad International Airport under P3A Board approval. The project involves conducting technical and legal due diligence, with the aim of selecting a commercial operator through a competitive process. Upon completion, the outsourcing initiative is expected to enhance efficiency and service quality at Islamabad International Airport, contributing to the overall development of aviation infrastructure in Pakistan.
Salient Features
Implementation Modality
O & M
Government Contributions
Airport Building
Government Return
The government's returns from outsourcing operations and maintenance of Islamabad International Airport will primarily come from the improved efficiency and service quality, leading to increased passenger traffic and revenue generation. Additionally, the government may receive financial benefits through asset monetization and the lease agreement or revenue-sharing arrangement with the selected commercial operator. Moreover, outsourcing can lead to cost savings for the government by transferring operational responsibilities to the private sector. Overall, the government stands to benefit economically and operationally from this outsourcing initiative.
Private Party Return
The private operator can generate revenue through retail and commercial leasing within the airport premises, parking fees, and other ancillary services.
By efficiently managing airport operations, the private party can reduce operating costs and increase profitability.
Successful management of Islamabad International Airport can enhance the private operator's reputation and attract future business opportunities in the aviation sector.
