Final Round of Talks Begins Over Operation of Dhaka Airport’s Third Terminal

The final round of three-day discussions between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium has begun to decide on the operation of the newly constructed third terminal at Hazrat Shahjalal International Airport.

The talks started at 3 p.m. on Sunday at CAAB’s headquarters in Dhaka, with all stakeholders present, including representatives from the International Finance Corporation (IFC), which is acting as a consultant.

Sheikh Bashir Uddin, Advisor to the Ministry of Civil Aviation and Tourism, said last Thursday:“Our discussions with the Japanese consortium have reached the final stage. The issues that were previously unclear have now been clarified. The ball is now in their court, and we are waiting.”

He also indicated that if the Japanese consortium refuses to take responsibility, the government is prepared to seek an alternative international operator. However, no formal proposal has yet been received from any other country.

The advisor stressed:“If Sumitomo does not agree, of course we will look for another operator. Why wouldn’t we? I work for Bangladesh. Whether it is Japan or another country, Bangladesh’s interests come first.”

He added that Bangladesh has already provided clear responses to all outstanding issues in line with IFC’s earlier framework. “We want the terminal to be managed by a skilled international operator to ensure better service quality and management,” he said.

The much-anticipated third terminal of Hazrat Shahjalal International Airport has been built with Tk 21,139 crore in funding from the Japan International Cooperation Agency (JICA). The facility is now “ready for operation.”

A test flight by Biman Bangladesh Airlines used the terminal in August, but commercial operations have yet to begin due to the lack of an agreement with the consortium.

The consortium—led by Sumitomo Corporation—includes Japan Airport Terminal Company, Narita International Airport Corporation, Sojitz Corporation, and a Japanese government agency. They had been promised the contract to operate the terminal under a Public-Private Partnership (PPP) model.

The agreement was made during the tenure of the now-ousted Awami League government as part of the JICA-funded project. However, after the interim government assumed office, Biman Bangladesh Airlines was given ground-handling responsibilities at the new terminal for two years.

Sources say this decision has created discontent within the consortium, which is now demanding greater control and a larger share of revenue from the terminal.

A senior CAAB official said the unresolved issue in negotiations with the consortium is revenue sharing—specifically how much of the earnings will go to the government and how much to the consortium.

The terminal, which had a “soft opening” in October 2023, is expected to increase the airport’s passenger-handling capacity from 8 million to 24 million annually, while significantly boosting cargo operations.

It is directly connected to the Dhaka Metro Rail, the Elevated Expressway, and the Hajj Camp, and is expected to emerge as a central hub for the country’s aviation sector.

Aviation experts, however, have warned that delays in finalizing the operator could drive up costs, as the lifespan of installed equipment may expire, undermining the project’s strategic advantages.

Launched in December 2019, the third terminal project covers an area of 542,000 square meters, with a floor space of 230,000 square meters.

The state-of-the-art facility features 26 boarding bridges, 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks, and three VIP immigration desks.