Govt to find new operator if Japanese consortium refuses to run 3rd terminal
NN ONLINE:
The government is prepared to seek other international operators to run Hazrat Shahjalal International Airport’s (HSIA) newly built third terminal if the Japanese consortium declines to take up the responsibility, Civil Aviation and Tourism Adviser S K Bashir said today.
“Our negotiations with the Japanese consortium have reached the final stage. We have clarified all issues that were previously unclear. We hope that within this week we will receive a reply from them. Now the ball is in their court… we are waiting,” Bashir told newsmen at the Secretariat.
“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 of other countries have been received so far.
Bashir said the International Finance Corporation (IFC), acting as transaction adviser, 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 final round of three-day negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and the Japanese consortium will take place from September 7 to 9 at CAAB headquarters.
CAAB officials told BSS that the first two sessions will be chaired by the CAAB chairman, while Civil Aviation and Tourism Adviser S K Bashir will preside over the concluding day.
The long-anticipated third terminal at HSIA, constructed at a cost of Tk 21,139 crore with major financing from the Japan International Cooperation Agency (JICA), is “ready for operation.”
A Biman Bangladesh Airlines flight used the terminal on a trial basis in August, but commercial operations remain pending due to unresolved negotiations with the Japanese consortium.
The consortium, led by Sumitomo Corporation and joined by 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 for ground-handling responsibilities at the new terminal for two years.
Sources said this decision created unease within the consortium, which is seeking broader operational and revenue-sharing rights.
The negotiations between the government and the consortium have stalled over revenue-sharing arrangements, a high official of Civil Aviation Authority of Bangladesh (CAAB) familiar with the negotiation process told BSS.
The disagreement is over what share the Bangladesh government will receive and what share they will take, he added.
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.
It is also integrated with Dhaka’s metro rail, elevated expressway and hajj camp, making it a central hub for future aviation growth.
Aviation experts have cautioned that prolonged delays in finalizing an operator could increase costs as warranties on installed equipment expire and could undercut the strategic benefits of the project.
The construction of the third terminal project began in December 2019, covering an area of 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.