Bangladesh Considers Alternatives if Japanese Consortium Declines to Operate Dhaka Airport’s New Terminal

The government is prepared to approach other international operators to manage Hazrat Shahjalal International Airport’s (HSIA) newly built third terminal if the Japanese consortium decides not to take on the responsibility, Civil Aviation and Tourism Adviser SK Bashir said on Saturday.

Bashir told reporters that negotiations with the Japanese consortium have reached their final stage. “We have clarified all outstanding issues and are now waiting for their response. The decision is in their hands,” he said.

He added that if Sumitomo Corporation and its partners decline, the government will seek other operators. No formal offers from alternative countries have been received so far.

The International Finance Corporation (IFC), serving as transaction adviser, previously provided a framework for the terminal’s operation, and the government has responded to all pending questions. Bashir emphasized that the goal is to appoint a capable international operator to ensure high-quality services and efficient management.

The final round of three-day talks between the Civil Aviation Authority of Bangladesh (CAAB) and the Japanese consortium is scheduled for September 7–9 at CAAB headquarters. CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq will chair the first two days, while Bashir will oversee the final session.

The third terminal, constructed at a cost of Tk 21,139 crore with major financing from the Japan International Cooperation Agency (JICA), is ready for operation. A Biman Bangladesh Airlines flight conducted a trial run in August, but commercial operations are on hold due to pending negotiations with the consortium.

The consortium, led by Sumitomo Corporation along with Japan Airport Terminal Company, Narita International Airport Corporation, Sojitz Corporation, and Japanese government agencies, was originally promised operational control under a public-private partnership (PPP) model. However, the interim government assigned Biman Bangladesh Airlines to handle ground operations for two years, causing concerns within the consortium, which is seeking wider operational and revenue-sharing rights.

Sources say discussions have stalled over revenue-sharing arrangements, particularly the split between the government and consortium.

The terminal, inaugurated in a “soft opening” in October 2023, is designed to triple Dhaka airport’s passenger capacity from 8 million to 24 million annually and significantly increase cargo handling. It is also integrated with Dhaka’s metro rail, elevated expressway, and hajj camp, making it a key hub for future aviation growth.

Construction began in December 2019, covering 542,000 square meters with 230,000 square meters of floor space. The terminal includes 26 boarding bridges, 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks, and three VIP immigration desks.

Aviation experts warn that delays in appointing an operator could increase costs as equipment warranties expire, potentially undermining the project’s long-term benefits.