Caab rejects irregularity allegations over 3rd terminal project, state minister vows probe

Highlights:

• Authority says project spending remained within approved budget
• Government targets December 2026 commercial launch
• State minister vows legal action over proven corruption
• Probe to examine variation works and fund misuse

The Civil Aviation Authority of Bangladesh (Caab) has rejected allegations of financial irregularities in the third terminal project at Hazrat Shahjalal International Airport, saying all expenditures were made with government approval and in accordance with contractual provisions.

In a statement issued today (25 July), Caab said recent reports by sections of the media contained "partial and context-free" information regarding the project's cost, variation works, contract implementation and financial management, which could mislead the public.

However, State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat told reporters yesterday that allegations of irregularities and corruption in the third terminal project during the ousted Awami League government's tenure would be thoroughly investigated, with those responsible facing legal action.

He said the government would examine who approved the alleged fake variation works, how much money was misappropriated or lost through irregularities and who was involved in the process.

The state minister said there would be no amicable settlement over the corruption allegations.

"Anyone found to have been involved will face legal action in accordance with the law," he added.

In its statement, Caab said that although construction of the third terminal was completed nearly two years ago, commercial operations had been delayed due to the time required for operational readiness, technical testing, compliance with international standards and coordination with stakeholders.

Caab said the preparations were now in their final stage and the government was working to begin commercial operations at the terminal by December 2026.

Responding to reports that Tk3,200 crore had been spent without approval, Caab said the allegation was "factually incorrect."

It said the project's original development project proposal (DPP), worth Tk13,610 crore, was approved in October 2017, while a revised DPP worth Tk21,399 crore received government approval in December 2019 following an international tender evaluation.

The second revised DPP, with a project cost of Tk21,365 crore, including Tk3,267 crore for variation works, was approved by the Planning Commission on 7 December 2025 following recommendations from the Project Implementation Committee, the Project Steering Committee and the ministry concerned.

According to Caab, Tk20,347 crore has so far been spent, remaining within the approved project cost.

The authority also denied allegations that ornamental trees had been procured at inflated prices, saying payments were made according to the unit rates specified in the international contract, which covers 14,824 items in its bill of quantities.

Caab said individual items could not be assessed separately from the overall contract pricing.

It also rejected claims of irregularities involving pond development, soil disposal, acceleration payments to the contractor during the Covid-19 pandemic and variation works, saying these were executed under the FIDIC contract framework and approved by the project's international engineering consultant, NOCD JV, with government authorisation obtained where required.

Regarding allegations that the Foreign Aided Projects Audit Directorate (FAPAD) had identified Tk6,300 crore in overpayments, Caab said audit objections were a routine part of public projects and did not automatically indicate financial irregularities.

It said an amicable settlement committee formed by the ministry had already excluded Tk1,077 crore from the project costs, while responses to the remaining audit observations were being prepared.