Dhaka airport third terminal contract talks with Japanese consortium begin today: Minister
Dhaka Airport Third Terminal Contract: Japan Talks Begin
Bdbusinessdaily.com – The Dhaka airport third terminal contract enters its final commercial stage as formal negotiations with a Japanese-led operating consortium open on 8 September. Civil Aviation and Tourism Minister M Rashiduzzaman Millat confirmed the schedule after inspecting the partially built facility at Hazrat Shahjalal International Airport earlier that day. The move places Bangladesh's largest aviation infrastructure project squarely in its closing commercial phase, with a phased partial opening targeted for mid-December.
For years the existing two terminals have run near saturation, producing chronic congestion, extended baggage waits, and constrained route growth. A fully operational third terminal would nearly quadruple daily throughput to between 200 and 250 flights, repositioning Dhaka among South Asia's busiest gateways. The Dhaka airport third terminal contract is therefore not merely a procurement exercise; it is the single lever that determines whether the country's aviation capacity keeps pace with a rapidly expanding domestic and international travel market.
Phased Opening and Operational Readiness
Millat outlined a two-stage activation plan. Under the first stage, roughly 20 flights would be processed beginning 16 December, with capacity scaling upward as staffing, IT systems, and regulatory clearances mature. Full-scale operations could follow three to five months later, placing complete activation in the March-to-April window of the following year.
"We are still hopeful that we will be able to begin partial operations on 16 December."
The minister cautioned that the outcome of the ongoing Dhaka airport third terminal contract negotiations would provide a clearer read on whether that timeline holds. The Operational Readiness and Airport Transfer (ORAT) process — the structured handover of systems, procedures, and responsibilities from construction contractors to the operating entity — stands at 57 percent completion. The remaining 43 percent falls to the consortium and associated agencies, including customs and immigration authorities.
Revenue Share and Loan Servicing
A central commercial shift in the talks concerns the revenue share Bangladesh extracts from terminal operations. After multiple rounds of negotiation involving the Ministry of Foreign Affairs and other departments, the government's proposed cut has been lifted from 15 percent to 27 percent. Millat framed the increase as fiscally essential: the Civil Aviation Authority of Bangladesh (CAAB) has already disbursed approximately Tk 1,100 crore in loan instalments drawn from its own operating earnings, and a further Tk 900 crore installment falls due in December.
"This is good news, as the increased revenue share will help us repay the loan taken out for constructing the terminal."
Until the new facility generates its own income, CAAB must service the construction debt from revenues of the existing terminals and other aviation operations. Any further delay in bringing the terminal online, the minister noted, constitutes a direct fiscal risk to the authority's balance sheet.
From Stalled Work to Active Negotiation
The terminal's history is marked by interruption. Under the previous government the facility underwent what Millat described as a "soft opening" — a limited, non-revenue-generating trial — but critical preparatory steps such as equipment integration and ORAT activities were never completed. When the interim government assumed office it revived the dormant workstream and re-engaged the Japanese consortium, which had been involved in the project's earlier phases.
The consortium's role extends beyond day-to-day terminal management. Ground-handling responsibilities — baggage handling, ramp operations, and passenger flow management — will be divided between the foreign operator and Biman Bangladesh Airlines. Millat stressed that Biman personnel must receive adequate training and retain a meaningful operational role, ensuring the national carrier does not become a peripheral participant in its own country's largest airport.
Service Standards and Regulatory Oversight
Operational benchmarks are being written directly into the contract framework. Passengers must receive checked baggage within a 15-to-40-minute window; CAAB retains authority to levy fines if the operator fails to meet that standard. Customs will install dedicated scanners at the terminal, while immigration facilities overseen by the Ministry of Home Affairs will be introduced in phased increments aligned with the ramp-up schedule.
Frequently Asked Questions
When will the third terminal at Dhaka airport open?
A partial, limited-capacity opening is targeted for 16 December, processing roughly 20 flights initially. Full-scale operations are expected three to five months later, contingent on the outcome of the Dhaka airport third terminal contract negotiations and completion of the remaining ORAT milestones.
Who will operate the terminal?
A Japanese-led consortium will assume day-to-day terminal operations under the contract. Ground-handling duties will be shared between the consortium and Biman Bangladesh Airlines, with the national carrier retaining a defined operational role.
What changed in the revenue-share terms?
Following renewed negotiations, the government's share of terminal operating revenue has been raised from 15 percent to 27 percent. The additional income is earmarked to help CAAB service the outstanding construction loan, of which approximately Tk 900 crore is due in December.
What is the current status of construction?
The physical structure is substantially complete. The ORAT process — the formal handover of systems and procedures to the operating entity — stands at 57 percent. The remaining work involves equipment integration, staffing, and regulatory clearances that fall to the consortium and government agencies.