Govt May Seek New Operator if Japan Declines HSIA Deal

Hazrat Shahjalal International Airport. File photo

The government is prepared to approach other international operators to manage Hazrat Shahjalal International Airport’s (HSIA) newly built third terminal if the Japanese consortium declines, Civil Aviation and Tourism Adviser S K Bashir said on Saturday.

“Our negotiations with the Japanese consortium are at the final stage. We have clarified all pending issues and expect their reply this week. Now the ball is in their court,” Bashir told reporters at the Secretariat.

He stressed that Bangladesh would look for alternatives if the consortium, led by Sumitomo Corporation, opts out. “If Sumitomo does not agree, we will definitely move to another operator. It could be Japan, or it could be another country, but I work for Bangladesh,” he said, adding that no alternative offers have yet been received.

Bashir noted that the International Finance Corporation (IFC), acting as transaction adviser, had earlier provided a framework and Bangladesh had given clear responses to all outstanding issues. “We want a competent international operator so that services and management are improved,” he said.

The final round of negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and the consortium is scheduled for September 7–9 at CAAB headquarters.

The Tk 21,139 crore terminal, financed largely by the Japan International Cooperation Agency (JICA), is technically ready for operation. A Biman Bangladesh Airlines flight conducted a trial run in August, but commercial use remains pending due to unresolved negotiations over revenue-sharing.

The consortium—comprising Sumitomo Corporation, Japan Airport Terminal Company, Narita International Airport Corporation, Sojitz Corporation, and Japanese government agencies—was initially promised the operational contract under a public-private partnership model by the former Awami League government.

Following the change of government, however, Biman Bangladesh Airlines was assigned ground-handling responsibilities at the new terminal for two years, creating unease within the consortium, which is seeking broader operational and revenue-sharing rights.

The third terminal, inaugurated through a soft opening in October 2023, is designed to triple HSIA’s annual passenger capacity from 8 million to 24 million and expand cargo handling. It also connects with Dhaka’s metro rail, elevated expressway, and hajj camp, making it a key hub for future aviation growth.

Aviation experts have warned that prolonged delays in appointing an operator could raise costs as warranties on installed equipment expire and diminish the project’s strategic advantages.