T3 gets one-year extension despite 99.95% progress

Sources said the extension became necessary because an international terminal operator has yet to be appointed

T3 gets one-year extension despite 99.95% progress
File photo shows workers performing a last-minute inspection of counters and instruments inside the newly-built third terminal of Hazrat Shahjalal International Airport. Photo: Syed Zakir Hossain/TBS

The government has extended the implementation period of the Hazrat Shahjalal International Airport (HSIA) Third Terminal project by one year until June 2027, despite the physical construction reaching 99.95%, as several key operational and administrative issues remain unresolved.

The extension was approved without any increase in the project cost following a review by the Planning Commission, which attached three conditions to the revised deadline, according to officials familiar with the decision.

The conditions require the Civil Aviation Authority of Bangladesh (CAAB) to complete all remaining project activities within the extended period, settle audit objections amounting to Tk 6,322.83 crore, and resolve all financial, technical, contractual and administrative issues before formally handing over the project.

Officials said the extension became necessary because an international terminal operator has yet to be appointed, while several critical systems, including the sewage treatment plant, water treatment plant and other utility and operational facilities, have not undergone full testing, commissioning and performance verification.

A planning commission official told the Aviation and Tourism Times that the proposal for extending the project period was reviewed after considering recommendations from the Economic Relations Division (ERD) and the Implementation Monitoring and Evaluation Division (IMED). The additional time was deemed necessary to address the remaining complexities before the terminal becomes fully operational, he added.

At a review meeting held on 16 June, Planning Commission Member (Physical Infrastructure Division) Dr Neyamat Ullah Bhuiyan said that although the construction work was virtually complete, several outstanding issues, including the appointment of an operator, audit objections and implementation of decisions by the dispute board, required resolution before the project could be concluded.

CAAB Chairman Air Vice Air Vice Marshal Md Mostafa Mahmood Siddiq told the meeting that negotiations with a Japanese consortium for appointing an international operator were still under way and would require additional time to finalise.

Without an operator in place, he said, it would not be possible to complete comprehensive testing and commissioning of the terminal's operational systems in line with international standards.

Project Director AKM Maksudul Islam said audit objections worth Tk6,322.83 crore had been raised by the Foreign Aided Project Audit Directorate. Of the amount, Tk1,077 crore has already been recovered from the contractor, while responses to the remaining objections have been submitted in line with decisions of the dispute board.

He said a tripartite meeting would be held soon to resolve the remaining audit issues.

The HSIA expansion project was initially approved at a cost of Tk13,610 crore, which was later revised to Tk21,399 crore. Around Tk20,347 crore has already been spent on the project, which is being implemented with financial assistance from the Japan International Cooperation Agency (JICA).

Originally scheduled for completion within five years from 2017, the project deadline had earlier been extended to June 2026. The latest extension pushes the completion date to June 2027 without any additional cost.

Officials said the third terminal is expected to significantly enhance Bangladesh's aviation capacity and improve passenger services once all operational requirements are fulfilled and the facility is opened for commercial use.