The long-idle 3rd terminal of Hazrat Shahjalal International Airport may finally see a breakthrough today, as government officials meet a Japanese consortium to resolve a dispute over revenue sharing and ground handling.
The terminal has remained unused for about 15 months, primarily due to disagreements over commercial terms. Officials estimate that the delay has already cost around Tk8,000 crore in potential revenue, while also complicating loan repayment.
Earlier on Friday, both sides sat for a meeting to address key sticking points, including embarkation fees, upfront payments and revenue-sharing arrangements. Both sides are aiming to settle the issues in today’s meeting.
At the previous meeting, State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat urged the Japanese consortium to reconsider Bangladesh’s proposal and submit a revised offer.
According to officials of the Civil Aviation Authority of Bangladesh (Caab), the consortium has since updated its proposal and is expected to present it today. Representatives from the ministry and Caab will attend the afternoon meeting, with both sides reportedly close to an agreement.
Once a deal is finalised, the consortium will install the remaining equipment and infrastructure, allowing the terminal to become operational within six months or less. The Japanese consortium—comprising Japan Airport Terminal, Sumitomo, Sojitz, and Narita Airport—has been tasked with operating the terminal.
If a deal is struck, the long-delayed terminal could finally move from a costly standstill to operational reality.
Built at a cost of Tk21,399 crore, the terminal was initially scheduled to open in December 2024. However, the process stalled following the ouster of Sheikh Hasina’s government in August 2024. The subsequent interim administration led by Muhammad Yunus failed to reach a deal during its 18-month tenure.
An adviser’s bid to engage his chosen firm to operate the third terminal made the process even more complicated, sources in the ministry said.
After assuming office, Prime Minister Tarique Rahman directed authorities to resolve the remaining bottlenecks and expedite the terminal’s launch, leading to renewed negotiations.
The financial stakes are significant.
Former Caab chairman Mafidur Rahman said the terminal could have generated around Tk5,000 crore annually, but prolonged delays now risk losses of at least Tk8,000 crore, with implications for loan servicing.
“The expectation was to capitalise on high passenger and cargo capacity to generate significant revenue and improve service quality,” he said.
By comparison, the airport’s existing two terminals generate about Tk3,000–3,400 crore annually.
To strengthen its negotiating position, Caab hired an independent consultant with global experience. The International Finance Corporation acted as transaction adviser, assessing traffic projections, commercial revenues and profit-sharing structures.
The aim was to align with international standards while ensuring Bangladesh can repay project loans, cover Caab costs, and fund future expansions.
Rahman noted that mechanical wear and tear could pose additional challenges. “Many machines came with two-year warranties. Since the terminal was ready in early 2024, those warranties are already expiring. Equipment can deteriorate if not used or properly maintained,” he said.
Operational readiness also remains a concern. The new terminal will add capacity for 12 million passengers annually to the existing 10 million, raising the airport’s total capacity to 22 million.
However, aviation expert ATM Nazrul Islam warned that runway constraints could limit the benefits. “We have already reached runway saturation. Adding more flights now may only increase congestion,” he told TIMES.
Despite these concerns, experts stress the urgency of opening the facility. “The terminal must start operations. The cost of delay is simply too high,” Nazrul Islam said.
