Bangladesh has moved closer to unlocking the long-delayed Third Terminal of Hazrat Shahjalal International Airport, as fresh negotiations with a Japanese consortium gather pace with a revised, lower-cost proposal now on the table.

Senior officials of the Civil Aviation Authority of Bangladesh confirmed that the consortium has responded to Dhaka’s concerns by offering a recalibrated financial proposal with reduced pricing, addressing one of the key obstacles that stalled earlier discussions.

The latest progress follows a segment-wise technical meeting held last Monday, where CAAB and consortium representatives reviewed pricing structures and operational components in detail, marking a transition from broad policy dialogue to final-stage negotiations.

Officials described the discussions as “focused and converging”.

High-level meeting set to seal deal

A crucial second round of high-level negotiations is scheduled for April 3 at the Ministry of Foreign Affairs, expected to determine the final outcome of the deal.

The Bangladesh side will be represented by a top-tier delegation, including Foreign Minister Dr Khalilur Rahman, Civil Aviation and Tourism Minister Afroza Khanam (Rita), 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, among others.

Officials indicated that the meeting is likely to be decisive. “A final agreement is expected to be reached this week following the 3rd April meeting,” a senior CAAB official told The Aviation Express, signalling that negotiations have entered their concluding phase.

From delay to decisive action

The renewed momentum marks a sharp departure from the prolonged stagnation under the previous interim administration, whose policy indecision and rigid stance delayed the operationalisation of the terminal despite near-completion.

Industry stakeholders have repeatedly criticised that period as one of missed opportunity and administrative inertia, which left a strategic national asset unused.

The shift came swiftly after the formation of the new government, when Prime Minister Tarique Rahman directed authorities to immediately resume negotiations with the Japanese consortium, prioritising a practical, outcome-driven solution.

That directive triggered the March 13 breakthrough meeting, resetting the negotiation process and paving the way for the current progress.

Japan responds with revised proposal

Following Bangladesh’s request during the March 13 meeting, the Japanese consortium -comprising Japan Airport Terminal Company, Sumitomo Corporation, Sojitz Corporation and Narita International Airport Corporation - has now returned with a revised offer.

The proposal reportedly addresses concerns over service charges, operational control and revenue-sharing mechanisms, which had been at the centre of earlier disagreements.

Officials said the revised pricing has narrowed differences significantly, creating a pathway towards a mutually acceptable “win–win” agreement.

A terminal waiting beyond completion

Despite being over 99 percent complete, the Third Terminal has remained idle due to unresolved operational arrangements, an issue that has drawn increasing criticism from industry stakeholders.

Constructed at a cost of around Tk 21,398 crore with financing from the Japan International Cooperation Agency (JICA), the terminal spans approximately 542,000 square metres and is designed to handle 12–16 million additional passengers annually, along with nearly 900,000 tonnes of cargo.

The delay has not only deferred capacity expansion but also constrained airline operations at a time of rising passenger demand.

Strategic urgency for aviation growth

The urgency to operationalise the terminal has intensified as Bangladesh seeks to position itself as a regional aviation hub in South and Southeast Asia.

Without the third terminal, airlines continue to face congestion, slot limitations and operational inefficiencies at existing facilities. Passengers, meanwhile, endure overcrowded terminals and reduced service quality, highlighting the cost of prolonged delay.

Final countdown begins

With revised pricing on the table, technical negotiations progressing and a high-level political meeting imminent, the process has entered its final stretch.

If the 3rd April meeting delivers consensus, Bangladesh could finally activate one of its most critical aviation infrastructure projects, ending years of delay and signalling a new phase of aviation expansion.