ISLAMABAD: The Privatisation Commission and the Asian Development Bank have signed an agreement under which ADB will serve as financial adviser for the proposed outsourcing of Islamabad International Airport.

The arrangement is intended to support the government in structuring a transparent and competitive transaction aimed at attracting experienced international airport operators and investors while improving the airport’s efficiency, service quality and long-term financial sustainability.

The Islamabad International Airport outsourcing advisory agreement was signed on July 15 by ADB Pakistan Country Director Emma Fan and Privatisation Commission Director General Shahid Dayo.

The signing ceremony was attended by Adviser to the Prime Minister on Privatisation and Privatisation Commission Chairman Muhammad Ali, Privatisation Commission Secretary Usman Akhter Bajwa and Privatisation Division Secretary Hammad Shamimi.

ADB Deputy Country Director Syed Hussain Haider and senior officials from both organisations were also present.

ADB to Provide Technical and Financial Advice

Under the Transaction Advisory Services Agreement, ADB will provide technical, financial, legal, environmental and commercial expertise for the proposed transaction.

The advisory work will include support for the structure and implementation of the outsourcing process in line with international practices, according to the Privatisation Commission.

The government expects the process to be market-driven and competitive, with private-sector participation sought from established international airport operators and investors.

The commission said the agreement forms part of the government’s wider privatisation programme and is intended to support better management and service delivery at the capital’s main international airport.

The press release did not provide a timeline for completing the transaction or disclose the proposed commercial structure of the airport outsourcing arrangement.

Also Read: ADB Appointed Financial Adviser for Outsourcing Operations of Islamabad International Airport