CAAB bins third-terminal irregularity claims

The Civil Aviation Authority of Bangladesh (CAAB) has rejected recent media reports on the Hazrat Shahjalal International Airport's third-terminal project as partial, misleading and motivated, saying all expenditure incurred under the project was approved and remained within the government-sanctioned project cost.

In a press release issued on Saturday, CAAB said no money had been spent without approval and that all project expenditure had been made in accordance with the approved development project proposals and relevant contractual provisions.

According to CAAB, the project's original Development Project Proposal (DPP) was approved in 2017 at a cost of Tk13,610 crore. Following an international tender, the project cost was revised to Tk21,399 crore in the first revised DPP in 2019, based on the lowest valid bid.

Later, additional works worth Tk3,267 crore were incorporated into the project. The second revised DPP was approved on December 7, 2025, with the total project cost set at Tk21,365 crore. Expenditure on the project has so far reached Tk20,347 crore, CAAB said.

The authority also responded to various allegations concerning expenditure on tree planting, pond development, soil removal, diesel-powered pumps, uninterrupted power supply systems, fuel costs, additional works and extra payments made to accelerate construction.

CAAB said these expenditures were made in accordance with the main construction contract, the terms of the contract with the international engineering consultant, guidelines under the Japan International Cooperation Agency (JICA) loan agreement and approvals from the joint venture of international consultants NACO and other partners.

Regarding allegations of irregularities amounting to Tk6,300 crore, CAAB said the figure represented audit objections raised by the Directorate of Foreign Aided Project Audit and did not constitute a final decision.

The authority said it was preparing a response to the audit objections and that the matter was being addressed through the Dispute Adjudication Board and the Dispute Resolution Committee.

CAAB also said preparations for the operational launch of the third terminal were nearing completion, with work progressing towards the target of commencing commercial operations in December 2026.

The authority urged the media to verify information before publishing reports on the project and called for responsible and objective journalism.