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HSIA third terminal

Full operation unlikely before next June

GULAM RABBANI | Wednesday, 26 June 2024



The full-fledged commercial operation of the long-awaited Third Terminal of the Hazrat Shahjalal International Airport is likely to be delayed until June 2025 despite completion of 97.5-percent works.
However, the Civil Aviation Authority of Bangladesh (CAAB) had a plan to commence the operation of the terminal this October upon finishing the remaining 2.5-per cent work.
But it is getting delayed until the middle of the next year as further formalities are pending.
Aviation Dhaka Consortium (ADC), the contractor, was supposed to hand over the facility to the CAAB on April 06, but it failed to do so.
The handover may linger until October this year.
CAAB chairman Air Vice-Marshal M Mafidur Rahman said 2.5 to 3.0-per cent work was supposed to be completed by the contractor under the 'defects liability period' clause of the agreement.
Defect liability security is kept to cover any repair or defect found in the infrastructure built by the contractor.
However, the contractor has now sought time until October 2024 for completion, according to Mr Mafidur.
He told the FE that the CAAB was still undecided whether to accept the proposal or not. "If extended, the contractor may demand additional costs for the extended time."
In the circumstances, the CAAB has verbally informed the contractor that it would not pay any additional cost when considering time extension.
The remaining work includes testing, calibration and installing some equipment. Ten out of 12 boarding bridges of the terminal have already been installed.
The CAAB has plans not to install the remaining two due to fund shortages.
Meanwhile, as per government decision, the operation of the terminal will be maintained by a Japanese consortium comprising at least five companies.
However, the government is yet to enter into any agreement with the Japanese companies.
Mr Mafidur said they have prepared some terms and conditions through public-private partnership (PPP) for negotiations with the aspiring companies.
If the consortium agrees with the terms and conditions, only then will an agreement be done.
The deal is likely in August or September, said the CAAB chief. "After the agreement, the consortium will need six to nine months for their preparation."
Therefore, full-fledged operation would be possible by the middle of the next year, he added.
However, the CAAB was preparing with its own capacity to come into operation temporarily by October for a period, the government has not permitted it.


Ground handling, cargo handling, airport handling and some other functions will be operated by the consortium. The CAAB will do air traffic management (ATM), security, customs, immigration and other works.
Prime Minister Sheikh Hasina partially inaugurated the terminal on 07 October 2023.
The project, costing Tk 213.0 billion, was launched on 28 December 2019. The government contributed Tk 50 billion, while the Japan International Cooperation Agency (JICA) provided the rest.
Covering 542,000 square metres, the facility will boast a floor space of 230,000 square metres, housing 115 check-in counters, 66 departure immigration desks, 59 arrival immigration and three VIP immigration desks.
Upon its full operation, the airport's annual passenger and cargo handling capacity is expected to double.
The annual passenger handling capacity will be 24 million (including the old terminals), which is now only 8.0 million.
The airport can handle 500,000 tonnes of cargo each year.
The third terminal is designed to connect with a multimodal transport system to enable passengers to enter and exit the international airport smoothly.
The new terminal will be connected with the elevated expressway, underground railway (MRT-05, Kamalapur to airport portion) and also with the airport rail station through an underground tunnel.
Besides, hajj pilgrims will be able to access the facility from the Ashkona Hajj Camp through a similar tunnel.
Ahead of the new terminal's full operation, different foreign airlines are eyeing to start their operation from the HSIA, which is expected to play a great role in taking the country's aviation sector forward.
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