Dhaka Airport Third Terminal Needs Tk 902 Crore for Completion: Civil Aviation Minister

Star Online Report, Dhaka — Civil Aviation and Tourism Minister Rashiduzzaman Millat today said the Awami League government had merely inaugurated the building of the third terminal at Hazrat Shahjalal International Airport (HSIA) while presenting the project as complete — revealing that the $2.1 billion asset requires an additional Tk 902 crore to clear dues and complete works needed to begin full operations.

"When we assumed power, we saw that although a building had been inaugurated by the fascist government in the name of completion, many integral parts had not been finished. Machinery had arrived but was not integrated," he said while replying to a supplementary question from Abdul Hannan Masud MP at the parliament.

💰 Project Cost Escalation

Millat said the government learned after taking office that the terminal had been built at a cost of Tk 21,600 crore following three revisions to the project cost, up from an initial allocation of Tk 13,000 crore:

• 💰 Initial project allocation: Tk 13,000 crore
• 💰 After three revisions: Tk 21,600 crore
• 💰 Cost escalation: Tk 8,600 crore (~66% increase)
• 💰 USD equivalent: ~$2.1 billion asset
• 💰 Additional required: Tk 902 crore for completion

"In other words, a property worth $2.1 billion is on the verge of being wasted. It is essential to make it operational as quickly as possible to generate revenue and to repay the loan," the minister added — underscoring the strategic urgency of completing the project that has been plagued by delays and cost overruns.

💰 JICA Loan Repayment Pressure

He said the government had already repaid Tk 1,100 crore to the Japan International Cooperation Agency (JICA) as an instalment since taking office. The combination of:

• 💰 Tk 1,100 crore already repaid to JICA since government took office
• 💰 Tk 902 crore additional required to complete the project
• 💰 $2.1 billion asset at risk of remaining idle

...creates significant fiscal pressure on the government to complete the project and begin generating revenue through full terminal operations.

🏛 Aviation Dhaka Consortium (ADC) Works Incomplete

He added that several works by the Aviation Dhaka Consortium (ADC), the main contractor group for the third terminal, also remained incomplete. The government had calculated that Tk 902 crore was required to:

• 💰 Clear arrears, including ADC's dues
• 💰 Complete the work needed to launch the terminal
• 💰 Integrate machinery that had arrived but was not connected

Millat said the planning ministry had been approached and the finance ministry was arranging the necessary allocation. "If this is not done, the project will remain idle. In that case, it would be little more than a building without functionality, as it was under the previous government."

🚢 Strategic Importance

"To protect this $2.1 billion asset, the terminal needs to be made operational urgently. That is why we requested the allocation," the minister said. The strategic significance includes:

• 🚢 Passenger capacity doubling: terminal launch would double passenger handling capacity
• 💰 Revenue generation: additional revenue would help repay JICA loan
• 🌏 International aviation gateway: modern terminal critical for Bangladesh's international connectivity
• 💰 Foreign investor confidence: modern airport infrastructure affects FDI attractiveness
• 💰 Export logistics: air cargo capacity for high-value exports

✈️ Investigation into Aircraft Purchases

The government would investigate whether there were irregularities in the purchase of nine aircraft during the authoritarian Awami League government, the minister said during the question-and-answer session. The investigation will examine whether the aircraft procurement process followed proper procurement protocols and whether the prices paid were consistent with market rates.

He also said Bangladesh Civil Aviation Authority (CAAB) was working to boost revenue while ensuring safe air traffic and better airport services — signalling a broader reform agenda for the country's aviation sector.

👥 Passenger Service Improvements

Responding to another query, Millat said measures were being taken to prevent passenger harassment, luggage theft, and irregularities. These include:

• 👥 Help desks for passenger assistance
• 👥 Faster baggage scanning systems
• 👥 Immigration and check-in systems improvements
• 📸 CCTV surveillance with video storage
• 📷 Body cameras for ground-handling staff
• ⚖️ Mobile courts operating regularly around airports

He said ticket booking, refunds, and inventory management were also being further digitised — aligning with the broader government digital transformation agenda.

📜 Luggage Delivery Performance

In 2025-26, the first luggage was delivered within 18 minutes and the last within 58 minutes in 86 percent of cases, the minister added — providing a quantitative measure of the airport's current service performance. The remaining 14 percent of cases likely represent operational exceptions that the new measures aim to address.

📊 Strategic Context

The Dhaka Airport third terminal project represents one of the largest single infrastructure investments in Bangladesh's aviation sector:

• 💰 Total project cost: Tk 21,600 crore (~$2.1 billion)
• 💰 JICA financing: significant portion of project cost
• 💰 Already repaid to JICA: Tk 1,100 crore since government took office
• 💰 Additional required for completion: Tk 902 crore
• 🌏 Capacity impact: terminal will double passenger capacity
• 🌏 Soft opening planned: previously December 16 mentioned as target

🌏 Strategic Implications

The Dhaka Airport third terminal completion carries several strategic implications:

• ⚠️ $2.1 billion asset at risk: if not completed, massive investment goes wasted
• ⚠️ JICA debt servicing burden: ongoing repayments without revenue generation
• ⚠️ ADC contractor disputes: outstanding dues need resolution
• ⚠️ Machinery integration gap: equipment arrived but not operational
• ✅ Capacity doubling: terminal would double HSIA passenger handling
• ✅ Revenue generation potential: operational terminal generates aviation revenue
• ✅ FDI enabler: modern airport supports foreign investment
• ✅ Aircraft purchase probe: 9-aircraft procurement under investigation

The Dhaka Airport third terminal project therefore represents both a strategic infrastructure asset and a fiscal challenge for Bangladesh. The Tk 902 crore completion allocation, if approved by the planning and finance ministries, would unlock the operational potential of a $2.1 billion investment — generating revenue, doubling passenger capacity, and supporting Bangladesh's broader connectivity and FDI objectives through the LDC graduation transition period beginning November 2026. The aircraft purchase investigation, separately, could surface procurement irregularities from the previous government's tenure.