110 billion rupees project approved including partial outsourcing of Islamabad Airport

110 billion rupees project approved including partial outsourcing of Islamabad Airport
Source: File Photo

ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC) approved six projects worth over Rs 110 billion, including partial outsourcing of Islamabad Airport under Public Private Partnership.

The meeting of the committee was held under the chairmanship of Finance Minister Ishaq Dar, in which a summary of the partial outsourcing of Islamabad Airport affairs was presented by the Ministry of Planning, Development and Special Measures. Officials of the Ministry told the meeting that the purpose of outsourcing is not only to raise capital but also to adapt the infrastructure of the airport to the modern requirements through private sector partnership, through which investment, provision of services by the private sector. And will help in the implementation of global aviation standards.

The meeting was told that according to the outsourcing project, the management of maintenance, maintenance, passenger terminal, cargo and parking etc. at Islamabad Airport is being handed over to the private sector, while air traffic control, runway, taxiway, fuel, aircraft, etc. Areas like rescue and emergency assistance in case of fire will remain with the Aviation Authority.

Sources, the current value of the outsourcing project under the proposed first option (PPP method) is 434 million dollars, while in the second option (conventional mode) the project value is 409 million dollars and in both, about 256 million dollars. There is a difference of 50 thousand dollars. Cash flows are estimated with a discount rate of 12 percent.

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The Planning Commission told the meeting that the total concession period for outsourcing is 15 years and the cost of the project is about $135 million, of which $100 million will be paid to the Civil Aviation Authority by the first successful bidder.

Sources said that the government wants to make Islamabad Airport profitable under this project. This will not only eliminate the problems but also reduce the responsibilities of the government agencies and help in finding solutions to the problems in innovative ways.

ECNIC approved a municipal services project of the Punjab government at a cost of around Rs 64 billion, of which around Rs 51 billion ($180 million) will be provided by the Asian Development Bank and Rs 12 billion 80 billion by the Punjab government. will Under this project, about 2.9 million citizens of Rawalpindi and Bahawalpur will face climate change, improve urban life and health conditions.

The meeting also deliberated on a project under the Prime Minister’s National Program for the conversion of agricultural tube wells in Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan to solar energy and the rural areas of the Islamabad Capital Territory (ICT) under the scope of the program. Allowed to add.

ECNIC has approved the Sindh government’s revised plan of “Karachi Neighborhood Improvement” after deliberation, the total cost of which is Rs. Bank is providing Under this project, infrastructure development will be done in Karachi South, Korangi and Malir districts.

ECNIC has approved Gilgit-Baltistan Government’s Rural Development and Climate Change Project with a cost of around Rs 16 billion, of which Rs 11 billion will be provided by external aid. Under this project, steps will be taken to deal with climate change and natural calamities in Gilgit-Baltistan.

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The project of making Sialkot Aymanabad Road upto Kamonki a dual carriageway was also approved. It will be connected to the motorway through a 65-km link road and will be completed jointly by the Punjab and federal governments.




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