Dhaka Airport: 3rd terminal deal moves closer to approval

Detailed summary

The Civil Aviation Authority of Bangladesh (CAAB) is set to send the draft concession agreement with a Japanese consortium for operating Hazrat Shahjalal International Airport’s…

The Civil Aviation Authority of Bangladesh (CAAB) is set to send the draft concession agreement with a Japanese consortium for operating Hazrat Shahjalal International Airport’s third terminal to the civil aviation and tourism ministry for further approval.

The CAAB board cleared the draft for submission at a meeting on Tuesday, a source familiar with the development told The Daily Star yesterday.

The agreement will undergo further scrutiny, including legal and financial vetting by the relevant ministries, before being placed before the Cabinet Committee on Economic Affairs for final approval.

The move comes as authorities continue preparations to begin partial operations at the terminal on December 16, coinciding with Victory Day.

The initial phase will involve a limited number of flights, with operations gradually expanding as more facilities become available. Authorities are working to ensure that the infrastructure required for limited flight operations is ready by then.

Sources familiar with the developments said that, unlike the ceremonial inauguration in October 2023, after which the terminal remained closed to regular commercial operations, the latest plan envisages actual flight operations from December 16.

The proposed agreement had earlier faced disagreements over four contractual provisions concerning ground-handling responsibilities, revenue sharing, legal protections and liability for construction defects.

Another contentious provision was a proposed 15-year restriction on competing civilian airports commencing commercial operations within a 100-kilometre radius of the airport. The restriction concerns commercial operations, not construction.

However, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said on November 4 that the restriction would not prevent the government from planning or constructing another airport within the specified area.

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