The government has announced it will start constructing two new airports, one each in Islamabad and Gwadar, costing Rs 18 billion and Rs 8 billion respectively towards the end of current year by utilising indigenous resources.
At the Public Accounts Committee (PAC) meeting here on Tuesday, a top official said the expansion project of Multan airport at Rs 3 billion would also be initiated the same time.
Defence Secretary Lieutenant General Tariq Wasim (Retd) told the meeting the government and the Civil Aviation Authority (CAA) had enough resources to initiate and carry forward all three projects at least for two initial years. The secretary, however, said if need arose the government would go for borrowing to complete these projects after two years.
Whether the government would prefer borrowing from within the country or outside Tariq did not mention. "The CAA and the government together have enough resources to run these projects for two years and after that we will look for borrowing," Wasim said.
The government's new position on the construction of new airports is contrary to what has been the part of un-contradicted media reports in the past. Some officials in the recent past have been saying new airports would be constructed on Build Operate and Transfer (BOT) basis. The defence secretary said the government had acquired some 3,200 acres of land for Islamabad airport and had made payment to the owners.
Secretary Tariq revealed the government was in the process of selecting design consultants and short listing contractors to execute these projects. Out of the total of Rs 18 billion for Islamabad airport, the CAA was likely to invest Rs 12 billion while rest would come from the government and borrowing, he added.
Similarly, for Gwadar both Pakistan and Oman governments would provide finances along with the CAA, Tariq told the meeting.
And the government and the CAA would share 50 percent each of Rs 3 billion for the expansion project of the Multan airport, he said. About the financial health of the CAA, the secretary said the entity was likely to have a surplus of Rs 5 billion next year. During 2006, he added, the CAA had total revenue collection of Rs 10 billion against the expenditure of Rs 5.4 billion.