Japanese Consortium to Operate Third Terminal of Hazrat Shahjalal International Airport

The Civil Aviation Authority of Bangladesh (CAAB) has approved a proposal from a Japanese consortium to operate the much-discussed third terminal of Hazrat Shahjalal International Airport.
At a board meeting held on Tuesday, the authority gave final approval to the procurement proposal and terms and conditions of the operation contract after a lengthy review. The meeting’s decision and relevant documents have been sent to the Ministry of Civil Aviation and Tourism for necessary action and final approval.
According to CAAB sources, the proposal was approved in accordance with existing government procurement laws and regulations. Two separate certificates signed by CAAB Chairman Air Vice Marshal Md Mostafa Mahmud Siddique were also attached to the official documents. The certificates confirmed that procurement procedures had followed the relevant rules and that the proposal was consistent with the original tender documents.
The first certificate stated that the official estimated cost for the procurement had been prepared in accordance with Sub-rules 1 and 2 of Rule 9 and Sub-rules 5 and 9 of Rule 25 of the Public Procurement Rules, 2008.
The second certificate stated that existing laws, rules and regulations had been followed in processing the operation contract proposal and that no rules had been violated. It also confirmed that the recommended Japanese consortium’s proposal was consistent with the original tender documents and that no important information had been omitted from the summary.
However, despite CAAB’s approval, controversy over several conditions proposed by the Japanese consortium remains unresolved. The main objections concern a proposed restriction on operating international flights through the existing first and second terminals after the third terminal becomes operational, a condition barring the establishment of any new civilian airport within a 100-kilometre radius for the next 15 years, and special concessions on revenue sharing during the interim period.
Relevant sources said the proposed contract provides for the Japanese consortium to receive 13.5 per cent of revenue during an interim eight-month operation period. However, the revenue-sharing rate has been set at 27 per cent under the long-term contract. This discrepancy has also raised questions. The terms and conditions of the contract were recently discussed and questioned at a parliamentary standing committee meeting.
CAAB sources said the decision was taken quickly with the aim of launching the third terminal’s operation on December 16, Victory Day. For this reason, the proposal was approved at the board meeting and subsequently sent to the ministry. Progress on the contract now depends on the ministry’s next decision and completion of the necessary formalities.
Built at a cost of around Tk 21,300 crore, the third terminal is a major addition to the country’s aviation infrastructure. Although an initiative has been taken to hand over its operation and maintenance to a Japanese consortium, questions remain over the contract terms, revenue distribution and the use of existing airport infrastructure.
As a result, all eyes are now on the ministry’s decision following CAAB’s approval.