Bangladesh, Japan Renew Talks on HSIA Third Terminal

Bangladesh and Japan on Friday resumed negotiations with a Japanese consortium in a renewed effort to operationalise the long-delayed third terminal of Hazrat Shahjalal International Airport (HSIA) through a mutually beneficial arrangement.

Civil Aviation and Tourism Minister Afroza Khanom Rita said the government is working to make the terminal operational as soon as possible.

“We had a good meeting. We are trying to make the third terminal operational quickly in line with the instructions of Prime Minister Tarique Rahman. We hope to reach a win-win deal with Japan to open the new terminal,” she told BSS after the meeting.

The high-level discussion was held at the Ministry of Foreign Affairs (Bangladesh) and marked the first formal negotiation under the newly formed BNP-led government, signalling a renewed push to resolve contractual and operational issues that have kept the nearly completed facility idle.

Foreign Minister Khalilur Rahman, Prime Minister’s Foreign Affairs Adviser Humayun Kabir, State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat and State Minister for Foreign Affairs Shama Obaed Islam were among those representing Bangladesh at the meeting.

Speaking to journalists afterwards, Kabir and Millat described the talks as positive and expressed optimism that a mutually acceptable solution could be reached soon.

Millat said both sides were seeking a solution that protects Bangladesh’s interests while addressing shortcomings in earlier agreements to ensure a “win-win” outcome in managing HSIA’s third terminal.

He noted that complications had arisen over certain charges and operational arrangements under the proposed management framework.

According to Millat, civil aviation agreements generally include three categories of charges, and differences had emerged between the two sides over some of these components.

“Both sides discussed the issues in detail. Bangladesh presented its proposals and the Japanese side also shared their position,” he said.

The Japanese consortium has agreed to review Bangladesh’s proposals and submit a revised offer shortly, after which further negotiations will be held to finalise the arrangement.

Kabir said the government is evaluating the issue with national interest as its top priority.

“The discussions are progressing positively, and we hope to see meaningful progress soon,” he added.

The renewed negotiations follow Prime Minister Rahman’s directive to reopen talks with the Japanese consortium to operationalise the long-delayed terminal, which is more than 99 percent complete but has yet to begin full commercial operations.

Officials at the Civil Aviation Authority of Bangladesh (CAAB) said the delay largely stemmed from indecision during the previous interim administration, when negotiations over terminal management, operational control and revenue-sharing arrangements failed to reach consensus.

The consortium involved in the project includes Japan Airport Terminal Company, Sumitomo Corporation, Sojitz Corporation and Narita International Airport Corporation. The terminal project was largely financed by the Japan International Cooperation Agency (JICA).

Approved in 2017 and launched in 2019 at an estimated cost of Tk 21,398 crore, the terminal spans around 542,000 square metres and is designed to handle an additional 12–16 million passengers annually, along with nearly 900,000 tonnes of cargo.

Industry stakeholders say operationalising the facility is critical to easing congestion at Dhaka airport and advancing Bangladesh’s ambition to emerge as a regional aviation hub linking South and Southeast Asia.