Govt announces Karachi and Lahore airport outsourcing plan
The Karachi and Lahore airport outsourcing plan has moved a step forward after the Privatisation Commission approved a consortium led by EY-Parthenon as the top-ranked interested party.
The consortium will serve as financial adviser for Allama Iqbal International Airport in Lahore and Jinnah International Airport in Karachi.
The development marks a major step in the government’s broader airport privatisation Pakistan plans.
Financial adviser approved for airports
The Privatisation Commission Pakistan has also formed a negotiation committee to finalise the Financial Advisory Services Agreement with the selected consortium.
The agreement will set out the responsibilities and terms under which the adviser will assist the government.
The EY-Parthenon Pakistan consortium will provide financial and transaction-related advice during the outsourcing process.
The government expects the advisory process to help prepare the two airport transactions and attract suitable private-sector participation.
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Islamabad airport also part of plan
The government has already taken steps regarding New Islamabad International Airport.
The Asian Development Bank was appointed last month as financial and transaction adviser for the planned outsourcing of the Islamabad airport.
With the latest decision, the Karachi and Lahore airport outsourcing process is now moving forward alongside the Islamabad airport initiative.
The EY-Parthenon Pakistan team is expected to play an important role in advising the government on the financial aspects of the Lahore and Karachi transactions.
Lesco and Mepco privatisation also discussed
The commission also reviewed the planned privatisation of Lahore Electric Supply Company and Multan Electric Power Company.
Both companies are included in the fourth batch of power distribution companies identified for privatisation.
The Privatisation Commission Pakistan will now begin the process of appointing financial advisers for the two companies in line with applicable regulations.
The privatisation of three earlier batches of distribution companies is already at different stages.
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Investors show interest in power companies
Faisalabad Electric Supply Company, which belongs to the first batch, has recently attracted around a dozen local and international investors.
Their expressions of interest are currently being reviewed by the commission.
The deadline for expressions of interest for two other companies in the first batch is around two months away.
The EY-Parthenon Pakistan consortium’s selection comes as the government continues to advance its wider privatisation programme.
