Concerns grow over deal with Japanese consortium to run third terminal as experts object to its conditions

Talks are under way to hand over the operation and maintenance of the third terminal of Dhaka's Hazrat Shahjalal International Airport to a consortium of four Japanese companies.

The Civil Aviation Authority of Bangladesh (CAAB) has said the deal is almost final. The authority also said that after the Bangladesh government's final approval, the agreement will be signed within this month.

Multiple sources have said that in the negotiations with the Japanese consortium, the Bangladesh government has agreed to several of its 'tough conditions'.

These include stopping international flights from the other two terminals once the third terminal opens, unequal terms on sharing profits, and a condition that no other airport be opened within 100 kilometres of Hazrat Shahjalal International Airport in Dhaka for the next 15 years.

Many aviation experts believe that several of the conditions Bangladesh has agreed to with the Japanese consortium conflict with the country's interests.

The civil aviation minister, the aviation secretary and the chairman of the parliamentary standing committee were contacted for their comments on the matter, but their comments could not be obtained.

However, a ruling-party member of parliament on the parliamentary standing committee on civil aviation, speaking on condition of anonymity, said, 'In the deal being made with the Japanese company, the country's interests have been sacrificed.'

The third terminal of Hazrat Shahjalal International Airport was built at a cost of more than 22,000 crore taka. Although its construction is complete, it had remained stuck for so long because of complications over its operation. CAAB has said the third terminal will formally begin its journey on 16 December.

According to information from CAAB, international flights are currently operated from terminals one and two of Dhaka's Hazrat Shahjalal International Airport. The annual passenger handling capacity of these two terminals is about eight million. The third terminal, by contrast, has an annual passenger handling capacity of 12 million.

A CAAB official said that once the third terminal opens, all international flights will have to be operated from this terminal under the terms. Only Hajj flights, chartered flights and budget flights will operate from the first and second terminals. Aircraft on domestic routes will also operate from the first and second terminals, he said.

On Wednesday, Aviation Minister M Rashiduzzaman Millat visited the airport and told journalists that even after the third terminal opens, the two Dhaka terminals will not be closed fully. Domestic, chartered and Hajj flights will operate from them.

Questions have also been raised about the logic of including such conditions in an operation agreement with a foreign institution. Aviation experts believe that even after the third terminal opens, other international flights should not be stopped from the first and second terminals. Aviation expert Wing Commander (retd) ATM Nazrul Islam said, 'Alongside Hajj flights and chartered flight operations, some other flights on international routes must also operate. International flight operations cannot be stopped from terminals one and two.' Experts say that in terms of passenger numbers, it will be difficult to ensure proper use of the old terminals' capacity by running only domestic operations through them.

Although formal operations are scheduled to begin in December, CAAB has said it may take a few more months before full operations and flight handling begin.

The main dispute with the Japanese consortium arose over revenue sharing. CAAB said several rounds of meetings were held, especially over the revenue condition put forward by the Japanese consortium. A senior CAAB official said, 'The Japanese consortium's initial proposal was to give Bangladesh 15 percent of the profit. From there, Bangladesh has increased this amount through negotiations over the past few days.' The official declined to say by how much it had been increased. However, a member of the parliamentary standing committee on civil aviation said the Japanese company has agreed to give Bangladesh 27 percent of the profit. The ruling-party MP blamed the weakness of the Civil Aviation Authority of Bangladesh in this regard.