Dhaka: The final round of a three-day negotiation between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium is set to commence this afternoon to finalize the operation of the newly constructed third terminal at Hazrat Shahjalal International Airport (HSIA).
According to Bangladesh Sangbad Sangstha, the initial two sessions of the talks will be led by CAAB Chairman Air Vice Marshal Mostofa Mahmud Siddiq, while the concluding day will be overseen by Civil Aviation and Tourism Adviser S K Bashir. Representatives from various stakeholders, including the International Finance Corporation (IFC) acting as the transaction adviser, will participate in the discussions scheduled 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 stated at the Secretariat, indicating the government’s readiness to consider other international operators if the Japanese consortium declines the 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,” Bashir emphasized. He added that no formal offers from other countries have been received yet.
Bashir mentioned that the IFC had earlier provided a framework, and Bangladesh has already addressed all outstanding issues transparently. “We want the terminal to go to a competent international operator so that the quality of services and management is improved,” he noted.
The third terminal, built at a cost of Taka 21,139 crore with major funding from the Japan International Cooperation Agency (JICA), is now “ready for operation.” A Biman Bangladesh Airlines flight utilized the facility on a trial basis in August, but full commercial operations are pending due to unresolved negotiations with the Japanese consortium.
The consortium, led by Sumitomo Corporation along with Japan Airport Terminal Company, Narita International Airport Corporation, Sojitz Corporation, and Japanese government agencies, was initially promised the operational contract under a public-private partnership (PPP) model. The previous Awami League government made this commitment as part of the JICA-funded construction package.
However, after the Interim Government took office, a policy decision granted Biman Bangladesh Airlines ground-handling responsibilities at the new terminal for two years. Sources revealed that this decision created discomfort within the consortium, which is seeking broader operational and revenue-sharing rights.
A senior CAAB official, familiar with the process, disclosed 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 explained.
The terminal, inaugurated with a “soft opening” in October 2023, is 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 cautioned 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 meters with a floor space of 230,000 square meters. 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.