Huge fine for airport’s third terminal

BD Digest Reporter

The International Dispute Resolution Board (IDRB) has ordered the Civil Aviation Authority of Bangladesh (CAAB) to pay around Tk 1,650 crore for delay in the construction and operation of the third terminal of Hazrat Shahjalal International Airport in Dhaka and breach of contract. The verdict was given following a dispute with the contractor, Aviation Dhaka Consortium (ADC), over slow work, delayed release of funds and long-standing maintenance issues.

This international board, consisting of three expert judges from Malaysia, the United Kingdom, and Germany, made this final decision after lengthy hearings from both sides and reviewing documents.

According to the details of the verdict, ADC will have to pay this huge amount towards the work done in various phases of the third terminal project and the second installment of retention money (maintenance deposit). To this, additional financing charges due to delay in payment of dues are also added, totaling about Tk 1,650 crore.

The long-standing legal dispute between the two parties over the responsibility for the maintenance of the infrastructure, the delay in the handover of the terminal, the slow pace of operational readiness and the failure to appoint an operator for the new terminal on time, has left the contractor, ADC, with no additional funding to carry out maintenance, operations and security responsibilities for a long time. This has caused the consortium to suffer significant financial losses.

Although the joint consortium (ADC) of Japan’s Mitsubishi Corporation, Fujita Corporation, and South Korea’s Samsung C&T Corporation successfully completed the main infrastructure work of the terminal, the state had to face this major financial loss due to the administrative complications and audit objections of the contractor.

Amidst this huge financial setback and legal complications, the government has confirmed the final inauguration date of the project.

At a press conference organized at the Directorate of Information on Tuesday (May 19) to highlight various activities of the government, Information and Broadcasting Minister Zahir Uddin Swapan said that after completing all the processes, the much-awaited third terminal will be officially opened to the public on the great Victory Day on December 16.

Modern networking and other necessary preparations are now progressing rapidly within the airport, keeping in view the scheduled time. It is expected that the passenger capacity of the airport will double once this terminal is operational.