Third-Terminal Costs Rise for Third Time: Additional Tk 848 Crore Added Despite 99.93% of Work Being Completed

Special Correspondent

Dhaka, Bangladesh — The construction of the third terminal of Hazrat Shahjalal International Airport is almost complete, yet the government has increased the cost of the project by another Tk 8.48 billion. The third round of amendments has also extended the period by one year to June 2027.

The amendment was approved at a meeting of the Executive Committee of the National Economic Council (ECNEC) at the Secretariat on Tuesday (September 29). Prime Minister Tarique Rahman presided over the meeting and a total of 13 projects were approved. After the amendment, the total cost of the projects stands at over Tk 22,213 crore.

According to the proposal of the Ministry of Planning, the financial progress of the project is 95.23 percent and the actual progress is 99.93 percent. The government has announced the partial opening of the terminal on December 16.

Journalists’ questions at the briefing after ECNEC

After the ECNEC, journalists want to know how reasonable it is to increase costs and time again when less than one percent of the work remains.

Planning Ministry Secretary SM Shakil Akhtar responded by saying that the terminal needs to have essential features like high-speed internet facilities and immigration equipment, which are still incomplete. He said that even after the partial inauguration on December 16, the cost and deadline for completing these works would need to be extended.

State Minister for Planning Jonayed Abdur Rahim Saki gave an account of the additional expenditure. According to him:

• Maintenance costs from January 2026 to June 2027 are 667.48 crore taka. This expenditure is ongoing even though the terminal is not operational.
• The amount to be spent on resolving disputes related to contractor changes is increasing by 294.66 crore taka on the recommendation of the compromise committee.
• To move forward with the work, the accumulated arrears must also be paid.
• The consultancy cost for supervising the remaining work, including VIP facilities, goods transportation system, water and sewage treatment plant inspections, is increasing by Tk 20 crore.
• Expenditure on government financing, including customs, taxes and VAT, is decreasing by Tk 134.23 crore.

The total net increase is 847.58 crore taka.

Expenses have increased by more than 60 percent compared to the beginning.

At the time of approval in 2016, the project cost was estimated at Tk 13,610 crore. The project started in July 2016. The original duration was till June 2022, but it has been extended several times.

The current expenditure is about 8,600 crore taka or 63 percent more than the original expenditure.

Questions about unfinished business

Civil Aviation and Tourism Minister M Rashiduzzaman Millat had told parliament that although the building was constructed, some important work related to it was not completed, and about 57 percent of the terminal’s operational readiness and airport transfer (ORAT) was completed. The exact date of the minister’s statement could not be verified.

In February 2023, officials at the time said that even though bored piling was being used instead of screwed piling due to soil conditions, the design was not changing and it would save about Tk 750 crore. At that time, discussions were underway to increase the cost again.

Government action

The ECNEC meeting discussed holding accountable those involved in negligence in project feasibility studies. It was also decided to formulate a policy in feasibility studies so that the time and cost of the project can be saved. On the same day, the Prime Minister also directed to reduce the cost of consultants in development projects.