Govt, project contractor to sit together after two years

In a move to open the 3rd Terminal of Hazrat Shahjalal International Airport (HSIA), the government and the project's contractor have finally agreed to sit together - after two years of break - for resolution of the disputes regarding hundreds of claims raised by both the sides.

Sources said the Japan-led consortium has already given a letter to the Civil Aviation Authority of Bangladesh (CAAB), showing interest to sit together for discussion to resolve the issues of dispute, as both the sides claimed variations and reservations in the payment and supply of materials.

Over 400 small to big claims and reservations were placed by the CAAB and the Aviation Dhaka Consortium (ADC) after the Tk 214-billion 3rd Terminal Construction Project completed in 2024.

Official sources said the Ministry of Civil Aviation and Tourism has formed a committee to do internal homework before starting discussion with the ADC.

"We need to sit first internally, as the disputes are wide. We also need to reach an agreement on where and what kind of compromise and demands will get priority during the negotiation," said an official, preferring not to be named.

The dispute started after the CAAB carried out undue work, including for the third terminal's soft opening by the previous Awami League government at the end of 2023 - before end of the project.

But it continued to intensify after the consortium claimed variation of the work to construct two new pier stations on both sides of the terminal building beyond the development project proposal (DPP), which the ADC carried 'on request from the CAAB'.

However, the CAAB's project office said they stopped the work at initial stage when it found that the estimated cost for the variation work was three times higher than its study finding.

It also brought allegation of not supplying country origin materials or quotation according to the tender document against the consortium.

The two sides tried to resolve the issues internally, but failed. Later, a three-member dispute board was formed by the International Chamber of Commerce, based on an agreement from both the parties, which gave the first verdict in favour of the ADC in March last.

The CAAB appointed the ADC, comprising Japan's Mitsubishi and Fujita and South Korea's Samsung, after signing a contract on August 23, 2020. The Executive Committee of the National Economic Council (ECNEC) approved the DPP on October 24, 2017, and revised one on December 10, 2019. The project ended in April 2024.

smunima@yahoo.com