Final round of talks with Japanese consortium on 3rd terminal begins
NN ONLINE:
The final round of a three-day negotiation between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium will begin here this afternoon to decide the operation of Hazrat Shahjalal International Airport’s (HSIA) newly built third terminal.
CAAB officials said the first two sessions will be chaired by CAAB Chairman Air Vice Marshal Mostofa Mahmud Siddiq, while Civil Aviation and Tourism Adviser S K Bashir will preside over the concluding day of talks.
Representatives from all stakeholders, including the International Finance Corporation (IFC) as transaction adviser, will take part in the discussions to be held at 3 pm at the CAAB headquarters in the capital.
“Our negotiations with the Japanese consortium have reached the final stage. We have clarified all issues that were previously unclear. Now the ball is in their court… we are waiting,” Adviser Bashir told BSS at the Secretariat on Thursday.
He hinted that the government is prepared to look for alternative international operators if the Japanese consortium declines to take responsibility.
“If Sumitomo does not agree, then we will definitely have to move to another operator. Why not? I work for Bangladesh-it could be Japan or it could be another country, but I work for Bangladesh,” the adviser stressed, adding that no formal offers from other countries have been received so far.
Bashir said the IFC had earlier provided a framework, and Bangladesh has already given transparent responses to all outstanding issues. “We want the terminal to go to a competent international operator so that the quality of services and management is improved,” he noted.
The long-awaited third terminal, constructed at a cost of Taka 21,139 crore with major financing from the Japan International Cooperation Agency (JICA), is now “ready for operation.”
A Biman Bangladesh Airlines flight used the facility on a trial basis in August, but full commercial operations remain pending due to unresolved negotiations with the Japanese side.
The consortium, led by Sumitomo Corporation along with Japan Airport Terminal Company, Narita International Airport Corporation, Sojitz Corporation and Japanese government agencies, was originally promised the operational contract under a public-private partnership (PPP) model.
The commitment was made by the previous ousted Awami League government as part of the JICA-funded construction package.
After the Interim Government assumed office, however, a policy decision assigned Biman Bangladesh Airlines ground-handling responsibilities at the new terminal for two years.
Sources said this decision created unease within the consortium, which has sought broader operational and revenue-sharing rights.
A senior CAAB official familiar with the process told BSS that negotiations have stalled over revenue-sharing arrangements.
“The disagreement is over what share the Bangladesh government will receive and what share they will take,” he said.
The terminal, inaugurated through a “soft opening” in October 2023, was designed to triple HSIA’s passenger capacity, from 8 million to 24 million annually, and significantly expand cargo handling. Integrated with Dhaka’s metro rail, elevated expressway and hajj camp, it is expected to become a central hub for the country’s aviation growth.
Aviation experts have warned that further delays in finalizing an operator could escalate costs as warranties on installed equipment expire and undermine the strategic benefits of the project.
Construction of the third terminal began in December 2019, covering 542,000 square metres with a floor space of 230,000 square metres.
The state-of-the-art facility will feature 26 boarding bridges, 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks and three VIP immigration desks.