International dispute settlement board has ordered Civil Aviation Authority of Bangladesh (CAAB) to pay over Tk 1,000 crore to Aviation Dhaka Consortium for third terminal construction at Hazrat Shahjalal International Airport (HSIA).

Three-member international board issued the ruling in Dhaka last week, ending a prolonged financial dispute between CAAB and the consortium. Decision marks a significant setback for aviation authority, which had withheld payment citing audit objections.

Senior CAAB official, speaking anonymously to media, confirmed that accumulated dues were blocked primarily due to audit concerns. “This amount accumulated over time, but we weren't making payments due to audit objections. Now CAAB has 28 days to challenge this ruling. If the issue isn't resolved within this timeframe, it will move to formal arbitration, and the arbitration court's decision will become binding”, the official said.

Aviation Dhaka Consortium comprises Japan’s Mitsubishi Corporation and Fujita Corporation alongside South Korea's Samsung C&T Corporation. Consortium was responsible for implementing the third terminal project.

Dispute board consisting of judges from Malaysia, United Kingdom and Germany examined financial claims and counter-claims from both parties before delivering the verdict.

Ambassador from one consortium member country wrote to Aviation Adviser on July 20 highlighting that third terminal project, though a milestone for Bangladesh's infrastructure development, now faces uncertainty due to unresolved financial issues. Letter stated Samsung C&T fulfilled all contractual obligations but has not received a significant portion of payments.

Consortium confirmed project completion on January 2 in 2024 despite global crises including Covid-19 pandemic and Russia-Ukraine war. However, CAAB failed to make payments according to contract terms.

Ambassador’s letter noted that failure to appoint terminal operator on time has forced consortium to continue maintenance work without any compensation. This has continuously increased contractor's operational expenses and financial losses.

Another ambassador expressed concern over unpaid bills in a separate message. Letter warned that CAAB has not formally taken over the facility despite construction completion, forcing contractor to bear entire maintenance burden. Quick resolution was urged, with warning that contractor may pursue legal action or international arbitration.

Ambassadors cautioned that such situations could damage Bangladesh's image in international arena and negatively impact future foreign investment.

Officials said the ministry will be informed in detail about the ruling, and next steps will be taken according to ministerial guidance.