Bangladesh gets 3rd tranche of Japanese loans for airport terminal

Bangladesh signed an agreement with Japan yesterday to avail a loan of $540 million for the under-construction third terminal of Hazrat Shahjalal International Airport, a cargo terminal and associated facilities.

The interest rate is 1.30 percent while the repayment period 20 years after a grace period of 10 years, the Japanese embassy in Dhaka said in a statement.

IWAMA Kiminori, the Japanese ambassador to Bangladesh, and Shahriar Kader Siddiky, secretary to Economic Relations Division, inked the deal in Dhaka.

The fund is the third tranche of Japanese loans for the airport expansion project, amounting to a total of $2.21 billion.

Initiated in December 2019, the project is estimated to cost Tk 21,300 crore, of which Tk 15,000 crore is coming from Japan International Cooperation Agency while the rest from the government.

Prime Minister Sheikh Hasina inaugurated the terminal partially on October 7 this year, but it will be used by airlines later.

The goal is to meet the rising aviation demand, expand airport capacity, improve accessibility, and fortify security, contributing significantly to Bangladesh's economic growth, according to the statement.

The expanded airport will play a pivotal role in enhancing the connectivity in the region, it said.

Japan remains dedicated to supporting Bangladesh's development through a strategic partnership, fostering mutual prosperity, it said.

According to the Civil Aviation Authority of Bangladesh (Caab), the new terminal will be able to accommodate 37 aircraft and have 26 boarding bridges.

Currently, 120-130 airplanes of over 33 airlines take off from and land at the airport's other two terminals.

Every day about 30,000 to 35,000 passengers use the two terminals. Annually the airport serves around 8 million passengers.

It will be possible to serve an additional 12 million passengers once the third terminal fully opens.

For arrivals, there will be 59 counters, including five automated ones to provide fast and better service to passengers.

In addition, 16 baggage belts will be installed.

For departure, the terminal will have 115 check-in counters, including 15 self-service ones, and 66 departure immigration counters with 10 automatic passport control counters.

A multi-storey car parking with a capacity of accommodating 1,044 cars is also being constructed in the terminal, said Caab sources.