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3rd terminal project at Dhaka airport

Govt has to go to dispute board to settle undue claim

MUNIMA SULTANA | September 10, 2024 00:00:00


At the fag-end of the expensive 3rd terminal-development project, the government has to go for dispute board to settle “undue claim” by joint-venture foreign contractor of Hazrat Shahjalal International Airport expansion.

A disagreement over claims of at least Tk 30 billion has been created between the two parties which the employer finds illogical but the contractor remains adamant on those.

"Yes, it is now confirmed that the issues will now go to the dispute board (DB) for settlement as amicable solution is not come after trying for a long time," said an official engaged in the project.

He also said half of the claims are not valid.

The FE also confirmed the issue from the contractor site. The CAAB and the Ministry of Civil Aviation and Tourism were talking with different stages of officials. It is found that dispute was longtime matter as the Aviation Dhaka Consortium placed various claims though the project office rejected.

They remain stick on the claims, sources added.

Among the claims, the big dispute is centered with development of two piers stations on both sides of the 3rd terminal airport building which the contractor started beyond the approved DPP.

The additional pier stations were proposed to increase the capacity of aircrafts boarding through bridge.

A source of the contractor said the CAAB had given written permission to start work in the middle of the implementation after they placed a quotation on the work. Besides, delay cost and variation in design and work were also claimed.

But, CAAB source said the authorities forced the work stopped after its own study carried by IFC found the quotation three times higher than the contractor price.

The CAAB reviewed the project work and also found many variation like change of country of origin, addition beyond tender document. The 213.99-billion project to construct the third terminal of Hazrat Shahjalal International Airport was approved by the Executive Committee of the National Economic Council (ECNEC) on October 24, 2017 and revised development project proposal on December 10, 2019.

The Aviation Dhaka Consortium which includes Japan's Mitsubishi and Fujita, and South Korea's Samsung, signed a contract on August 23, 2020. Although soft opening of the third terminal was done by ousted Prime Minister Sheikh Hasina on October 7, 2023, it is yet to be opened due to delay in the project completion.

Sources said the two parties started reviewing all the contracts from the logical points of views, rates of claims as well as quantity and measurements so far supplied.

They, however, claimed that syndication has been working in carrying and demanding claims in absence of the loophole in the contractors.

CAAB Chairman Mohammad Monjur Kabir Bhuiyan, however, said it was a regular matter in any big project.

"Of the disputes which could not done amicably we will try will do after meetings. When there will not be possible, then think of the DB," he told the FE. Sources said under the FIDIC rule, both sides have already started working on proposing the names of the DB. Though some names were proposed from the two sides, those were rejected.

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