Third terminal deal talks kick off today

Formal negotiations over the operation of the third terminal of the country's prime aviation point Hazrat Shahjalal International Airport begin today (September 8), with the government hoping to finalise a deal with a Japanese consortium ahead of a planned partial opening on December 16.

Earlier in the day, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said the talks between the Civil Aviation Authority of Bangladesh (CAAB) and the consortium would provide a clearer picture of whether the December deadline could be met.

“We are still hopeful that we will be able to begin partial operations on December 16,” he told reporters after inspecting the terminal, adding that the facility would initially handle around 20 flights, with operations gradually expanding as its capacity increases.

The Operational Readiness and Airport Transfer (ORAT) process is currently 57% complete, while the consortium and other relevant agencies will have to complete the remaining 43%, Millat continued.

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

Customs will install the required scanners, while immigration facilities under the Ministry of Home Affairs will be introduced in phases, he said.

Millat said the terminal had previously undergone a ‘soft opening’ under the former government, but essential preparations, including equipment integration and ORAT activities, remained incomplete.

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

Revenue share raised to 27%

Bangladesh’s proposed revenue share from the terminal’s operation has been raised to 27% from the earlier 15% 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 from the existing terminals and other aviation operations are currently being used to service the loan, making it important to bring the third terminal into operation without further delay, he added.

Biman in ground handling

On ground handling, Millat said the negotiations would determine how responsibilities would be divided between Biman Bangladesh Airlines and the overseas operator.

He stressed that Biman personnel should be trained and involved in the terminal’s operations.

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

Millat said equipment installed at the terminal was being tested and trialled daily and had performed well during his inspection.
Once fully operational, the third terminal is expected to nearly quadruple the airport’s capacity and eventually handle 200 to 250 flights, he said.

Describing an international airport as ‘the mirror of a country’, the minister said the new terminal would help project a modern and investment-friendly image of Bangladesh to international visitors.

He also clarified that there was no plan to rename the airport Zia International Airport, the name by which Dhaka airport was previously known.