Staff Reporter :
Negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and the Japanese consortium selected to operate Dhaka airport’s Tk21,000 crore third terminal have collapsed again, with key differences over revenue sharing and financial models remaining unresolved.
The latest two-day discussions held on 24–25 November, ended without progress, according to sources involved in the talks.
Consortium representatives said CAAB is reluctant to share revenue from major income streams, instead proposing “an India-style income-expenditure model” that they consider incompatible with international standards.
The terminal, soft-launched in October 2023, was initially scheduled for full operation by December 2024.
Delays in equipment imports, frequent leadership changes, and political transitions have already pushed the expected launch to December 2025, and CAAB now says it cannot commit to a firm date.
With negotiations stalled, the government may now consider opening an international tender for a new operator.
Prolonged delays risk taxpayers having to begin servicing the Tk15,000 crore JICA loan for a terminal that remains largely idle.
“We have officially informed the civil aviation ministry and PPP Authority about the situation,” CAAB spokesperson Muhammad Kawsar Mahmud told the media.
A senior CAAB official, speaking anonymously, added, “The core hurdle is financial alignment… the consortium’s proposal is not feasible for us.”
The Japanese consortium—comprising Japan Airport Terminal Company, Sumitomo, Nippon Koei, and Narita International Airport Corporation was selected by the previous government, likely due to Japan’s financing support.
Since the change in government in August 2024, discussions on revenue, operational oversight, and costs have stalled.
PPP Authority CEO Chowdhury Ashik Mahmud Bin Harun confirmed talks are ongoing but inconclusive.
CAAB admits revenue sharing is the main hurdle. The consortium has expressed concerns that the government framework makes the project financially unviable.
Officials are reportedly unwilling to share earnings from two of the airport’s most lucrative streams—the passenger safety fee and the airport development fee.
“Without these fees, operating expenses cannot be balanced through secondary income sources,” a consortium source said, noting that the business model aims to meet international standards rather than regional benchmarks.
CAAB has warned that warranties on expensive imported equipment are expiring or have already lapsed, increasing potential losses.
The terminal, built with Japanese assistance and financed with Tk15,000 crore from JICA and the remainder from the government, was designed to handle 24 million passengers annually.
Aviation analyst Kazi Wahidul Alam said the idle facility poses financial and operational risks, noting that loan repayment begins within a year despite zero revenue.
Partial operations have begun, with Biman Bangladesh Airlines conducting trial runs. Full operation will require around 6,000 personnel, including 4,000 security staff.
Once functional, the terminal will triple passenger capacity and double cargo handling at Dhaka airport, featuring 26 boarding bridges, a fully automated baggage system, and enhanced passenger amenities.
