Caab rejects 3rd terminal irregularity claims, state minister vows corruption probe

Highlights:

• Authority says project spending remained within approved budget
• Government targets December 2026 commercial launch
• State minister vows legal action over proven corruption
• Probe to examine variation works and fund misuse

The Civil Aviation Authority of Bangladesh (Caab) has rejected allegations of financial irregularities in the Hazrat Shahjalal International Airport Third Terminal project, insisting that all expenditures were made with government approval and in accordance with contractual provisions.

In a statement issued today (25 July), Caab said recent media reports contained “partial and context-free” information on the project’s cost, variation works, contract implementation and financial management, which could mislead the public.

The authority said although construction of the Third Terminal was completed nearly two years ago, commercial operations had been delayed due to operational readiness, technical testing, compliance with international standards and coordination among stakeholders.

According to Caab, these preparations are now in their final phase and the government aims to begin commercial operations at the terminal by December 2026.

Responding to reports that Tk3,200 crore had been spent without approval, Caab described the allegation as “factually incorrect”.

It said the original Development Project Proposal (DPP), worth Tk13,610 crore, was approved in October 2017, while a revised DPP worth Tk21,399 crore received government approval in December 2019 following the completion of the international tender process.

Caab added that the second revised DPP, with a total project cost of Tk21,365 crore, including Tk3,267 crore for variation works, was approved by the Planning Commission on 7 December 2025 after recommendations from the Project Implementation Committee, the Project Steering Committee and the ministry concerned.

According to the authority, Tk20,347 crore has so far been spent, remaining within the approved project cost.

Caab also dismissed allegations that ornamental trees had been procured at inflated prices, saying payments were made strictly according to unit rates stipulated in the international contract, which covers nearly 14,824 bill-of-quantity items.

It further rejected claims of irregularities involving pond development, soil disposal, acceleration payments made during the Covid-19 pandemic and variation works, saying all such activities were carried out under the FIDIC contract framework and approved by the project’s international engineering consultant, NOCD JV, with government authorisation where necessary.

Addressing allegations that the Foreign Aided Projects Audit Department (FAPAD) had identified Tk6,300 crore in overpayments, Caab said audit observations are a routine part of public projects and do not automatically indicate financial misconduct.

The authority said a ministry-formed amicable settlement committee had already excluded Tk1,077 crore from project costs, while responses to the remaining audit observations were being prepared. It added that all payments to the contractor were made in line with contractual obligations and approved procedures.

Caab urged media organisations to verify information with the relevant authorities before publishing reports, warning that inaccurate reporting could undermine public confidence, damage Bangladesh’s largest aviation infrastructure project and affect the country’s international credibility ahead of the terminal’s commercial launch.

Meanwhile, State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat said the government would thoroughly investigate allegations of corruption and financial irregularities in the Third Terminal project during the tenure of the ousted Awami League government.

Speaking to reporters today, the state minister said investigators would examine who approved the alleged fake variation works, how much public money had been misappropriated or lost through irregularities, and who was responsible.

“There will be no amicable settlement regarding corruption allegations. Anyone found to have been involved will face legal action in accordance with the law,” he said.