The much-anticipated third terminal of Hazrat Shahjalal International Airport remains shrouded in uncertainty, with multiple operational and financial challenges delaying its long-awaited inauguration.
The latest advisory from the Ministry of Civil Aviation and its secretary failed to provide concrete information, creating uncertainty over when the terminal will become operational.
Investigations reveal that 99% of the terminal’s construction is complete. However, the Civil Aviation Authority (CAAB) cannot open it because several problems remain unresolved.
Stalemate with Japanese companies
Sources indicate that CAAB fell into uncertainty at the last moment due to contracts with six Japanese companies assigned for terminal operations. Some stringent conditions from these Japanese firms have created the current situation. The ministry is now exploring alternative companies.
Meanwhile, the Korean contractor, Samsung, has demanded extra payment for additional work at the terminal, creating further complications regarding disbursement. As a result, equipment installed at the terminal is lying idle, reaching expiration, and some components are losing functionality.
CAAB sources said that from the beginning, discussions had been ongoing with the Japanese companies regarding the operation of the third terminal. A ‘specialized company,’ formed by two Japanese government and four private firms, had negotiated to manage and maintain the terminal for the next 15 years.
However, CAAB officials could not reach a decision despite multiple meetings with the company owners. The process became complicated when the companies introduced several rigid conditions.
Unrealistic conditions
In this situation, discussions have also taken place about finding an alternative operator. A principled decision has been made to begin contract negotiations with another company if necessary.
A CAAB official, speaking on condition of anonymity, said that the Japanese companies’ conditions included control over the terminal’s shops and lounges, parking fees, billboards, rent for various offices, aircraft landing charges, passenger travel fees, security charges, and other types of charges. The official described these demands, along with other conditions, as “unrealistic.”
He told the Bangla Tribune: “The conditions given by the Japanese companies are impossible to accept. They want to control everything. Then what will our role be?”
He added: “In the meetings, all of us opposed their conditions. We will now hold discussions with other countries. Simultaneously, discussions with Japan will continue.”
Samsung’s dues dispute
In addition to the Japanese companies’ conditions, CAAB is also facing a crisis regarding the contractor’s dues. The official said: “We are in trouble over the Korean Samsung company’s dues. The amount is substantial. We are discussing how this money will be paid. Discussions with the company are ongoing.”
It is reported that Samsung claimed it had carried out an additional 605 tasks at the third terminal as requested by CAAB. For this, the company demanded nearly Tk1,000 crore beyond the contract. However, CAAB cannot pay this amount.
The company issued a notice on August 15 demanding payment by September. The notice warned that failure to pay within this period could lead to a case in an international court.
EU inspection and ministry’s stance
Meanwhile, the European Union recently inspected the terminal to assess its latest preparation and immigration status. Sources said the EU representatives expressed satisfaction with the terminal’s readiness. Senior CAAB officials were present during the inspection.
On Thursday, the Ministry of Civil Aviation and Tourism Adviser Sk Bashir Uddin and Secretary Nasreen Jahan spoke to journalists about the third terminal. The secretary said that they could not specify when the terminal would be inaugurated.
Secretary Nasreen Jahan said: “Launching an international-standard airport requires time to complete all processes. All necessary steps have been taken. However, the operational maintenance part, which is the core of aviation, is still ongoing. Once we receive clearance for that, we will immediately inaugurate the terminal. An official announcement can only be made when it is fully ready.”
Adviser Sk Bashir Uddin said: “Completing this process has two stages. The first stage is selecting an operator, as the secretary mentioned. We are in the process of this. After operator selection, the operation readiness test will take a few months. Once the advisers complete the readiness test, the airport will be inaugurated.”
He added: “Our efforts to launch it are relentless. Tk21,000 crore has been invested here. This investment is ours, not Japan’s. To recover this expenditure, we must launch it as soon as possible. This is not only about improving passenger service but also about our economic interest. The ministry and civil aviation authorities are working together to expedite this.”
Project background
On October 24, 2017, the executive committee of the National Economic Council approved the Shahjalal Airport expansion project.
The terminal construction was estimated at Tk21,398.59 crore, with the Bangladesh government contributing Tk5,257 crore. The construction is financed by JICA. Two Japanese companies, Shimizu and Korea’s Samsung, are jointly implementing the project under the Aviation Dhaka Consortium (ADC).
