Sunday 26 July 2026
           
Sunday 26 July 2026
       
CAAB rejects claims of unapproved spending in HSIA Third Terminal Project
Staff Correspondent:
Publish: Sunday, 26 July, 2026, 6:49 PM

The Civil Aviation Authority of Bangladesh (CAAB) has rejected recent media reports on the Hazrat Shahjalal International Airport (HSIA) Third Terminal project, calling them "partial, misleading and motivated." The authority said all expenditures have been made within the government's approved project budget and that no funds have been spent without official approval.

In a statement issued on Saturday, CAAB said the project's original Development Project Proposal (DPP) was approved in 2017 with a budget of BDT 13,610 crore. Following an international competitive bidding process and the selection of the lowest responsive bidder, the project cost was revised to BDT 21,399 crore under the first revised DPP approved in 2019.

The authority said a second revised DPP was approved on 7 December 2025, incorporating additional works valued at BDT 3,267 crore while setting the final approved project cost at BDT 21,365 crore. According to CAAB, total expenditure to date stands at BDT 20,347 crore, which remains within the approved allocation.

Addressing allegations related to landscaping, pond development, earthworks, diesel-powered pumps, uninterrupted power supply systems, fuel expenses, variation works and acceleration payments, CAAB said each expenditure was incurred in accordance with contractual provisions and approved project procedures.

The authority noted that all payments were processed under the provisions of the construction contract, recommendations of the engineering consultant, the financing guidelines of the Japan International Cooperation Agency (JICA), and approvals granted by the international consultant joint venture, NCD JV.

Regarding allegations of BDT 6,300 crore in financial irregularities, CAAB said the figure relates to an audit observation raised by the Foreign Aided Projects Audit Directorate and should not be interpreted as a confirmed finding. The authority said responses to the audit observations are being prepared, while the matter is undergoing review through the Dispute Resolution Board (DRB) and the Amicable Settlement Committee.

CAAB also said operational readiness for the Third Terminal is now in its final phase, with commercial operations targeted to commence in December 2026. The authority urged media organisations to verify information before publication and to maintain responsible, factual and objective reporting on the nationally significant infrastructure project.


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