HSIA third terminal:: Selection of operator delayed over disputes

The Civil Aviation Authority of Bangladesh (CAAB) is facing hurdles in completing the process of selecting an operator for the third terminal at Hazrat Shahjalal International Airport (HSIA) following some disputes over the proposed agreement to this effect.

The negotiations between the CAAB and the Japanese consortium, which has been selected to manage the operation and maintenance of the newly constructed terminal, are yet to be completed following disputes over several key conditions, sources said.

As a result, the start of commercial operations at Tk 213.99-billion third terminal is facing delay although the project has almost been completed.

CAAB Chairman Air-Vice- Marshal Md Mostafa Mahmood Siddiq said: "We have already held extensive discussions with the consortium. But we could not reach any consensus on certain conditions of the proposed agreement."

Without mentioning any specific timeframe for launching the terminal, he said efforts are on to make the terminal fully operational very soon.

Earlier, the CAAB authorities had a plan to finalising the agreement by June this year, paving the way for commencing the commercial operations at the terminal by December, as the consortium requires a minimum of six months for its preparations for doing so.

Now, the CAAB Chairman expressed the hope that the negotiations would be completed shortly.

"Financial issues are involved in the agreement. The CAAB and the Ministry concerned are making their necessary efforts to ensure that no party is adversely affected and the interests of all the parties including the government are protected," said the CAAB Chairman.

A Japanese consortium, comprising four private companies and two government organizations, is likely to get operation and maintenance work of the third terminal for 15 years as the preliminary bid discussion went on successfully.

After completion of the negotiations, the consortium will require to accomplish some tasks including recruiting manpower and conducting training, which will take some time.

In January last, the then Chairman of the CAAB told a news briefing that 99 per cent works of the terminal was completed except for some works on its VVIP section.

The consortium of six Japanese firms is to oversee the terminal's operations and maintenance.

The national flag carrier Biman Bangladesh Airlines will continue to provide ground handling tasks at the terminal under the supervision of the consortium.

To this effect, a service level agreement (SLA) is to be signed between Biman and the consortium, it was learnt.

Biman Bangladesh Airlines has been rendering ground services since the country's independence, but there remain criticisms over its performance.

At present, the Hazrat Shahjalal International Airport has two terminals with taking almost 50 per cent additional burdens beyond the capacities.

It has a capacity of handling 8.0 million passengers in a year, but it is now handling average 12 to 13 million passengers, informed sources said. After the third terminal goes for full-fledged operations, the HSIA's annual passengers and cargo handling capacities are expected to double at 24 million (including the old terminals).

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