Dhaka airport third terminal contract talks with Japanese consortium begin today: Minister

Formal negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium over an operating contract for Hazrat Shahjalal International Airport’s third terminal will begin today (8 September), Civil Aviation and Tourism Minister M Rashiduzzaman Millat has said. 

Talking to reporters after inspecting the terminal today, the minister said the government is targeting a partial opening of the terminal on 16 December.

He added that the negotiations will offer a clearer picture of whether the deadline can be met.

“We are still hopeful that we will be able to begin partial operations on 16 December.”

Initially, the terminal will be able to handle around 20 flights, with operations gradually expanding as capacity increases, Millat said. 

Initially, the terminal could handle around 20 flights, with operations gradually expanding as its capacity increases, Millat said.

He said the Operational Readiness and Airport Transfer (ORAT) process is currently 57% complete, with the consortium and other relevant agencies to complete the remaining 43%. 

Full-scale operations could begin three to five months after the partial opening, he said, expressing hope that the terminal would be fully operational by March or April next year. 

Customs will install the necessary scanners, while immigration facilities under the Ministry of Home Affairs will be introduced in phases, the minister added. 

Millat said the terminal earlier underwent a “soft opening” under the erstwhile government, but essential preparations, including equipment integration and ORAT activities, have not been completed. 

The interim government resumed the stalled work after taking office and began discussions with the Japanese consortium, he added. 

Revenue share raised 

Bangladesh’s proposed revenue share from the terminal’s operation has been raised from 15% to 27% following several rounds of discussions involving the Ministry of Foreign Affairs and other relevant authorities, Millat said. 

“This is good news, as the increased revenue share will help us repay the loan taken out for constructing the terminal,” he said. 

CAAB has already paid around Tk1,100 crore in loan instalments from its other earnings and is due to pay another Tk900 crore in December, the minister said. 

Revenues generated from existing terminals and other aviation operations are currently being used to service the loan, he added, making it important to bring the third terminal into operation without further delay. 

Ground handling

On ground handling, Millat said the negotiations will determine how responsibilities are divided between Biman Bangladesh Airlines and the foreign operator, stressing that Biman personnel should be trained and involved in the terminal’s operations. 

The operating consortium will also have to ensure passengers receive their baggage within 15 to 40 minutes, he said, adding that CAAB could impose fines if the timeframe is not maintained. 

Millat said the terminal’s installed equipment is being tested and trialled daily and has performed well during the inspection. 

Once fully operational, the third terminal is expected to nearly quadruple the airport’s capacity, eventually enabling it to handle 200 to 250 flights, he said. 

Describing an international airport as “the mirror of a country,” the minister said the new terminal will help project a modern, investment-friendly image of Bangladesh to international visitors. 

Millat also clarified that there is no plan to rename the airport as Zia International Airport, which Dhaka airport was once called.