Dhaka Airport Third Terminal contract negotiation with Japan begins

Dhaka: Formal negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium over the operating contract for Hazrat Shahjalal International Airport’s Third Terminal will begin on September 8, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said.

“The negotiations between CAAB officials and the consortium will begin today (September 8),” he told the media on September 8 at Dhaka Airport after inspecting the terminal.

The government is targeting partial operations at the terminal from December 16, with Millat saying he remains hopeful the deadline can be met.

Initially, the terminal could handle around 20 flights, with operations gradually expanding, he said.

The Operational Readiness and Airport Transfer (ORAT) process is 57 percent complete, while the consortium and other agencies will complete the remaining 43 percent.

Full operations could take another three to five months after the partial opening, with the minister hoping for full-scale operations by March or April next year. Customs will install scanners and immigration facilities will be introduced in phases.

Millat said the terminal had undergone a “soft opening” under the previous government, but equipment integration and other ORAT preparations remained incomplete. The current government resumed the stalled work and began discussions with the Japanese consortium.

Revenue share rises to 27pc

Bangladesh’s proposed revenue share from the terminal’s operation has increased from 15 percent to 27 percent following discussions with the Ministry of Foreign Affairs and other authorities.

“This is good news, as the increased revenue share will help us repay the loan taken for constructing the terminal,” Millat said.

CAAB has already paid around BDT 1,100 crore in loan instalments from its other earnings and will have to pay another BDT 900 crore in December, he said.

On ground handling, Millat said the negotiations would determine how responsibilities are divided between Biman Bangladesh Airlines and the foreign operator. He stressed that Biman personnel should be trained and involved in operations.

The operator will also have to deliver passengers’ baggage within 15 to 40 minutes, with CAAB able to impose fines for failing to meet the timeframe.

The terminal’s equipment is being tested daily and was found to be in good condition, Millat said.

Once fully operational, the terminal is expected to nearly quadruple the airport’s capacity and eventually handle 200 to 250 flights.

Calling an international airport “the mirror of a country”, Millat said the terminal would project a modern and investment-friendly image of Bangladesh.

He also said there is no plan to rename the airport as Zia International Airport.

State Minister for Foreign Affairs Humaiun Kobir, Invest Bangladesh Chairman Ashik Chowdhury and senior CAAB and Biman officials were present during the inspection.