The government is understood to be reconsidering plans to build a new airport at Islamabad and a new passenger terminal at Lahore, industry sources say.

The Civil Aviation Authority (CAA) had invited companies to bid for the work on a build-operate-transfer (BOT) basis. Shortlisted companies were due to submit proposals for both projects by 13 August. However companies are understood to be interested in the two schemes on a contractor financing as opposed to a BOT basis, the sources say. The CAA has put the bidding process on hold and is understood to be reconsidering the terms of the projects. The government still has a strong preference for the BOT approach but industry sources question the attractiveness of the schemes to potential investors.

The proposed new airport in Islamabad will comprise runways, taxiways, terminal buildings and all associated facilities. At Lahore a new passenger terminal complex and related facilities is planned.

Shortlisted companies for both projects are understood to include Japan's Mitsubishi Corporation, Hyundai Engineering & Construction Company of South Korea, the Saudi/Lebanese Al Mabani General Contractors Company and Black & Veatch of the US. Other shortlisted companies are understood to be from the US and Turkey (MEED 6:6:97).