Third Terminal contract talks begin, 20 flights a day planned initially 

Formal negotiations between the Civil Aviation Authority of Bangladesh (Caab) and a Japanese consortium over the operating contract for Hazrat Shahjalal International Airport's Third Terminal began today (8 September), with the government targeting partial operations from 16 December, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said.

Initially, the terminal could handle around 20 flights a day, with operations gradually expanding as capacity increases, Millat told reporters after inspecting the terminal today.

Caab officials said the negotiations could continue for several days before a final settlement.

"The techno-financial evaluation of the proposal submitted by the Japanese Sub-working Group has already been completed. Negotiations have now started based on that evaluation and may continue for a few days," Muhammad Kawsar Mahmud, spokesperson for Caab, told TBS.

"Work is also underway at the ministry level to obtain the Letter of Assurance required for the successful operation of the Third Terminal. We hope to complete all the processes soon," he added.

A source familiar with the Japanese consortium told TBS, "The revenue-sharing issue has already been settled. The new round of negotiations has started to finalise the contract documents. It's not a major issue, and we expect to conclude the process by the end of this week."

The government is targeting a partial opening on 16 December, while the ongoing negotiations will provide a clearer picture of whether the deadline can be met, Millat said.

The Operational Readiness and Airport Transfer process is 57% complete, with the consortium and other relevant agencies expected to complete the remaining 43%, he said.

Full-scale operations could begin three to five months after the partial opening, with Millat hoping the terminal will be fully operational by March or April next year.

The terminal had undergone a "soft opening" under the previous government, but essential preparations, including equipment integration and Operational Readiness and Airport Transfer activities, had not been completed, he said.

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

Revenue share raised

Bangladesh's proposed revenue share from the terminal's operation has increased from 15% to 27% following 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 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, according to the minister.

Revenues from 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 said.

A source familiar with the Japanese consortium told TBS, "The revenue-sharing issue has already been settled. The new round of negotiations has started to finalise the contract documents. It's not a big issue, as we want to conclude the process by the end of this week."

Ground handling

The negotiations will also determine how ground-handling responsibilities will be divided between Biman Bangladesh Airlines and the foreign operator, Millat said.

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

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

The terminal's installed equipment is being tested daily and performed well during the inspection, Millat said.

Once fully operational, the Third Terminal is expected to nearly quadruple the airport's capacity and eventually enable it to handle 200 to 250 flights, he said.

The minister also said there is no plan to rename the airport to Zia International Airport.