The newly built third terminal at Dhaka’s Hazrat Shahjalal International Airport (HSIA) is in “ready for operation” condition. A Biman Bangladesh Airlines flight used the terminal on a trial basis in August. However, it will not open just yet. The Civil Aviation Authority of Bangladesh (CAAB) has not been able to finalize an agreement with the Japanese consortium that is to be appointed to operate the terminal. A source told Bonik Barta that the Japanese consortium is unwilling to sign the agreement during the final months of the current Interim Government and is deliberately delaying the process.

The consortium Bangladesh seeks to sign an agreement with is led by Sumitomo Corporation, one of Japan’s leading companies in business and investment. The six-member group also includes the Japan International Cooperation Agency (JICA) and Japan’s Ministry of Land, Infrastructure, Transport and Tourism. Once the agreement is signed, the consortium will handle operations and maintenance of the third terminal. In return, it will receive a share of the revenue generated from the terminal.

The terminal was built at a cost of BDT 211.39 billion. In October 2023, the then-Awami League government held a “soft opening” of the facility. At that time, discussions began with the Japanese consortium to run the terminal under a public-private partnership (PPP) model. CAAB officials said then that negotiations had advanced significantly to assign the consortium all operational responsibilities, including ground handling.

But the situation shifted after the fall of the Awami League government. Once the Interim Government took charge, it made a policy decision to assign Biman Bangladesh Airlines the ground handling work of the terminal for two years. CAAB officials said this decision angered the Japanese consortium. They noted that once a political government comes to power, the consortium will be in a stronger position to secure a revenue-sharing deal, including ground handling at the terminal. With the next parliamentary election announced for February 2026, the consortium is expected to wait until then before signing any agreement.

Sk Bashir Uddin, Adviser to the Ministry of Civil Aviation and Tourism, said the Japanese consortium had not given any such indication to the Interim Government. Speaking to Bonik Barta, he said, “We have not received any signal from the consortium we are negotiating with that they will refuse to sign the agreement with us.”

He added, “Our discussions with Japan are on a G2G (government-to-government) basis. As part of this, there are talks over the terms of the agreement. As recently as ten days ago, I held discussions with them and clarified our position. Now we are waiting to hear their latest stance. Once we receive their response, we will understand when the agreement can be finalized.”

Meanwhile, Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal MD Mostafa Mahmood Siddiq told Bonik Barta that the deal remained stalled due to unresolved negotiations over revenue sharing. He said, “The two sides have not yet reached an agreement. Efforts are ongoing. Only when we reach consensus on the contract and its conditions will we be able to say when the deal can be signed. It would not be right to comment on the timing before that.”

The CAAB Chairman further said, “There are some clauses under discussion. They are presenting their arguments, and we are presenting ours. The disagreement is over what share the Bangladesh government will receive and what share they will take. They have stated their position, and we have stated ours. Meetings are being held every other day. Let’s see how quickly we can reach an agreement.”

Alongside CAAB, Bangladesh’s Public-Private Partnership (PPP) Authority is also overseeing the appointment of an operator for the third terminal. The agency is implementing a project for the terminal’s operation and maintenance. According to PPP Authority sources, Bangladesh has issued a request for proposal, and the operator selection process is now underway based on that proposal.

The Japan International Cooperation Agency (JICA) financed the construction of the third terminal, while Japanese firms served as consultants and contractors. Following the construction, a Japanese contractor is being considered to operate the terminal. From the beginning, the process has involved only a single consortium. Infrastructure experts argue that if the appointment had been opened to competitive bidding, Bangladesh could have hired a world-class airport operator at a lower cost.

Professor Md Shamsul Hoque of Bangladesh University of Engineering and Technology (BUET) told Bonik Barta, “For operating and maintaining such an advanced and modern facility like the third terminal, a skilled foreign third party is needed. But why should we consider only one Japanese consortium? Why not go through a competitive tender process? Through open bidding, it is possible to get an operator at a reasonable and cost-effective rate, and no questions would arise about the process. If the work is awarded by negotiating with just one company, it will never be competitive or economical. I’ve heard that the Japanese company has demanded a huge sum for the work.”