The long-awaited third terminal of Hazrat Shahjalal International Airport is facing further delays in opening due to a contract deadlock between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium over operational revenue sharing, despite a government target to launch the facility in December, according to relevant sources.
Officials said it may take at least another year for the terminal to become fully operational after the signing of an operations contract and completion of trial activities.
Meanwhile, repayment of loans for the project will begin in June, with annual installments of around Tk 1,100 crore continuing until 2056.
Sources said CAAB and the Japanese consortium have yet to finalize an agreement because of disagreements over revenue sharing from passenger services, cargo handling and other income-generating operations once the terminal opens.
Even after nine rounds of discussions, the two sides have failed to reach a final agreement, with key sticking points including passenger departure fees, advance payments and revenue distribution.
The Japanese consortium has proposed allocating 25% of the revenue to CAAB, while the aviation authority is seeking a larger share, sources said.
Officials said that once both sides reach a consensus, the agreement could be signed within about three months. That would be followed by the Operational Readiness and Airport Transfer (ORAT) process, which may take six months to a year before trial operations begin.
CAAB officials said Prime Minister Tarique Rahman has directed authorities to expedite the terminal’s opening.
They said the Ministry of Civil Aviation and CAAB are working to launch the facility as quickly as possible while protecting national interests and ensuring the public is not burdened.
CAAB Chairman Air Vice Marshal Mostafa Mahmud Siddiqui said at a meeting that the first loan repayment installment will begin in June and continue until 2056.
He said it would take at least three months to sign the contract after negotiations conclude, followed by a test run lasting six months to one year.
Limited operations at the third terminal could begin about six months after trial operations start, he said.
The government is targeting December 16 for the terminal’s opening and is working toward that deadline.
The CAAB chairman said shifting airport operations is complex and risky, citing global research that shows around 74% of such transitions fail. Authorities are therefore proceeding cautiously.
The terminal’s operational management will be handled by a Japanese consortium comprising Japan Airport Terminal Company, Sumitomo Corporation, Sojitz Corporation and Narita International Airport Corporation.
CAAB will oversee security operations.
Around 6,000 personnel, including 4,000 security staff, are expected to be deployed at the terminal.
The $2.1 billion project, equivalent to Tk 25,846 crore, was reportedly 90% complete during the previous Awami League government. However, the interim government failed to finalize an operational contract.
After the BNP government took power in February, Prime Minister Tarique Rahman directed officials to speed up the terminal’s opening, prompting renewed efforts.
The project is financed by Japan International Cooperation Agency, and Japanese involvement in operating the terminal had long been expected.