CAAB denies Third Terminal irregularity claims
Dhaka: The Civil Aviation Authority of Bangladesh (CAAB) has dismissed allegations of financial irregularities in the Hazrat Shahjalal International Airport's Third Terminal project, maintaining that all expenditures were incurred with proper government approval and in compliance with contractual procedures.
In a statement issued on July 25, the civil aviation regulator said several recent media reports presented "partial and context-free" information on the project's cost, variation works, contract implementation, and financial management, which could create public confusion.
CAAB said although construction of the Third Terminal was completed nearly two years ago, the start of commercial operations was delayed because of extensive operational readiness activities, technical testing, compliance with international aviation standards, and coordination among stakeholders.
According to the authority, these preparations are now nearing completion, with commercial operations expected to begin in December 2026.
Rejecting reports that BDT 3,200 crore had been spent without approval, CAAB said every expenditure followed the required approval process. It noted that the project's original Development Project Proposal (DPP), valued at BDT 13,610 crore, was approved in October 2017. Following an international tender, the government approved a revised DPP worth BDT 21,399 crore in December 2019.
A second revised DPP, valued at BDT 21,365 crore and incorporating BDT 3,267 crore for variation works, was approved by the Planning Commission on 7 December 2025 after recommendations from the Project Implementation Committee, Project Steering Committee, and relevant ministry. CAAB said BDT 20,347 crore has so far been spent, well within the approved project budget.
The authority also rejected allegations of inflated spending on landscaping, pond development, soil disposal, and Covid-era acceleration payments to the contractor. It said these expenditures were made under the FIDIC contract framework, with approvals from the project's international engineering consultant, NOCD JV, and the relevant government authorities.
Addressing audit observations by the Foreign Aided Projects Audit Department (FAPAD), which questioned BDT 6,300 crore in payments, CAAB said audit objections are common in large public projects and do not necessarily indicate corruption. It added that a ministry-formed amicable settlement committee had already excluded BDT 1,077 crore from project costs, while responses to the remaining audit observations are being prepared.
The authority urged media organizations to verify information with relevant agencies before publishing reports, warning that inaccurate reporting could undermine public confidence, harm Bangladesh's largest aviation infrastructure project, and affect international stakeholders ahead of the terminal's opening.
Meanwhile, State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat said the government will investigate all allegations of corruption and irregularities linked to the Third Terminal project during the tenure of the ousted Awami League government.
Speaking to reporters on Saturday, he said investigators would examine who authorized the alleged fake variation works, how much public money was misappropriated, and who was responsible.
"There will be no amicable settlement over corruption," the state minister said, adding that anyone found involved would face legal action in accordance with the law.
