Dhaka airport’s 3rd terminal’s cost rises to Tk 22,213cr

State Minister for Planning Zonayed Abdur Rahim Saki said the additional expenditure also includes costs for settling contractual disputes, completing outstanding works and installing facilities that were not included in the original project scope.

Briefing reporters after Tuesday’s ECNEC meeting, Saki said the government has set December 16 as the target for opening the third terminal, but some essential works will continue until June 2027.

The meeting approved enhancement of Tk 847.57 crore further that in total costs Tk 22,213.09 crore in the third price amendment, whereas it was Tk 21,365.51 crore in the second price amendment.

“The terminal will be inaugurated partially on December 16, but some works that are essential for operation will be completed by June 2027,” Saki said.

Saki said the latest revision includes Tk 667 crore for 30 months of maintenance from January 2025 to June 2027 following the expiry of the defects notification period.

He said another Tk 294 crore has been added following recommendations of an amicable settlement committee to resolve disputes arising from variations in the construction contract.

The revised project also covers several outstanding components, including VIP and VVIP facilities, performance testing of the cargo handling system, the baggage handling system, water and sewage treatment plants, the explosive detection system (EDS) and UPS supply for EDS.

Additional expenditure has also been incurred for equipment maintenance and consultancy supervision, he said.

The state minister said 228 consultants, including 16 foreign and 212 local consultants, are involved in the relevant works, with the additional consultancy cost estimated at Tk 19.67 crore.

The project’s tax component has meanwhile been reduced by Tk 134 crore, he said.

Saki said some facilities essential for operating a modern international airport were absent from the original project scope.

“For example, high-speed internet connectivity across the terminal area is essential. Immigration facilities also require equipment and systems, not simply personnel standing at counters,” he said.

He said such omissions could occur even after feasibility studies, as the detailed design stage can reveal requirements that were not adequately reflected in the initial project documents.

The state minister said the government was therefore working to reform the feasibility study process so that project estimates and designs are more accurate from the beginning.

He said the government has already initiated steps to make agencies conducting feasibility studies more accountable and prevent feasibility studies from becoming a routine exercise carried out merely to fulfil procedural requirements.

Saki said proposals for these reforms had been prepared based on the experience of the Planning Ministry and line ministries and would be placed before the National Economic Council for approval.

He also said the government had issued clear instructions that project deadlines should not be extended without valid reasons.

“Whenever a project is extended without a logical reason, those responsible will be brought under accountability,” he said.

The Implementation Monitoring and Evaluation Division has already submitted investigation reports on eight projects, while reports on another three to four projects are expected shortly, he said.

The reports are being sent to the Prime Minister and concerned ministries for necessary action, he added.

Regarding major cost increases in other large projects, including MRT Line-1 and MRT Line-5 North, Saki said changes between preliminary feasibility studies and detailed designs can significantly affect project costs.

He cited underground construction as one factor behind the increased cost of metro rail projects, saying the geological characteristics of Dhaka have required some stations to be constructed at substantially greater depths than initially envisaged.

For the third terminal, however, he stressed that the latest increase had been broken down into specific components, including maintenance costs, additional facilities and settlement of contractual disputes, reports UNB.