The estimated cost of constructing a third terminal at Hazrat Shahjalal International Airport has been increased by 40 percent. It is now a Tk-20,598 crore project.
The Cabinet Committee on Public Purchase yesterday approved the project at a cost much higher than what had been estimated at the outset.
The Executive Committee of the National Economic Council (Ecnec) in October 2017 approved the project worth Tk 13,610 crore.
Officials came up with the HSIA terminal construction project in 2016.
Delayed implementation has caused significant rise in the cost of different mega projects in recent years.
Aviation Dhaka Consortium (ADC), comprising Mitsubishi Corporation, Fujiata Corporation and Samsung C & T, has been awarded the job yesterday.
Although 22 tenders were sold, only two had been submitted. Following a negotiation process, ADC got the contract.
Finance Minister AHM Mustafa Kamal said the cabinet body approved the project proposal under the condition that the ministry concerned would take Ecnec approval by submitting the details of the additional cost in a revised proposal.
Of the total amount, Japan International Cooperation Agency (Jica) will finance around Tk 15,000 crore while the government will provide the rest.
Explaining why the projected cost has risen, Civil Aviation Secretary Muhibul Haque told The Daily Star that a separate cargo village was not included in the first plan.
Besides, all firefighting equipment at the HSIA will be replaced with new and modern ones.
He also said that when the Civil Aviation Authority of Bangladesh first estimated the project cost, it was around TK 9,200 crore.
The cost increased to around Tk 10,100 crore after Jica conducted a feasibility study, he added.
It was further raised to around Tk 12,400 crore during the tender process, Muhibul said.
An estimated Tk 5,000 would be needed as various charges including VAT.
Besides, around Tk 2,000 crore has been set aside to use in case of an emergency.
“We hadn’t made a single decision without Jica approval. It is all transparent,” he said.
Around 130 domestic and international flights carrying 25,000-30,000 passengers use the HSIA every day. There are 26 foreign airlines operating there, officials said.
Around 70 lakh passengers and 1.6 crore luggage are handled by the airport every year. But there are only eight luggage conveyor belts in the two international terminals.
Sales of Biman Bangladesh Airlines ticket alone increased to 110 percent in the last five years for domestic and international routes.
According to the specification, the third terminal will be on a space of 22,600 square metres. The new cargo terminal will be on 41,200 square metres, north and south rapid exit taxiway on 22,000 and 29,500 square metres, apron on 498,500 square metres, connecting taxiway on 66,500 square metres, and a multi-storey car parking on 62,000 square metres.
A water supply system, sewerage treatment plant, intake power plant distribution system, equipment of cargo complex, airfield ground lighting system and hydrant fuel system are also included in the project, sources at the civil aviation ministry said.
EQUIPMENT FOR ROOPPUR
The cabinet committee on purchase yesterday also approved another purchase proposal for physical security protection system for Rooppur Nuclear Power Plant.
The finance minister said the project was approved on Tuesday’s Ecnec meeting.
Anwar Hossain, secretary of the science and technology ministry, said the cabinet committee on purchase approved the proposal for purchasing different equipment by the Russian contractors.
DELAYED MEGA PROJECTS
Planning ministry officials said in almost every Ecnec meeting, four or five projects are placed with an aim to increase the cost and time.
The Padma Rail Link project was taken in 2016 at a cost of Tk 34,000 crore. It has now increased to Tk 39,246 crore. As of August, only 17.15 percent of the project has been implemented.
Sources at the railway ministry said the cost of the project might increase further.
The much-anticipated Padma Bridge project was taken in 2010 at a cost of Tk 10,000 crore. The cost of the project has now crossed Tk 30,000 crore.