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The dispute between the government and the contractor over the third terminal of Hazrat Shahjalal International Airport is set to drag on, with only the first phase of hearings on the contractor’s claims recently concluded.

Sources said the three-member dispute board completed initial hearings on allegations raised by the Aviation Dhaka Consortium during its visit on January 12–13. The process, which took more than a year and a half to begin, marks an early step in resolving a complex standoff that both sides failed to settle amicably.

The board is expected to deliver its verdict on the contractor’s claims on February 9. However, officials caution that several contentious issues remain unresolved and could prolong the process. If the decision is accepted, hearings on the government’s counterclaims will follow. If not, either party may seek arbitration.

The contractor has raised numerous complaints over unpaid bills and additional costs, which the Civil Aviation Authority of Bangladesh has rejected as unjustified. In turn, the authority has accused the contractor of violating contractual terms and inflating claims.

The dispute board, formed by the International Chamber of Commerce with consent from both parties, reviewed documents and held discussions with officials from both sides. According to sources, arbitration remains a likely option if either party refuses to accept the board’s findings.

At the centre of the dispute is the construction of two additional pier stations beyond the approved development project proposal. The contractor began the work following verbal instructions from senior officials toward the end of the project, aiming to boost aircraft boarding capacity. The additions were not included in the original proposal or contract.

Civil aviation officials said the work was later halted after a study found the quoted costs to be nearly three times higher than benchmark prices. The contractor reportedly submitted hundreds of claims, with tensions escalating over sharply increased quotations for the extension works.

Further complications emerged after a project review identified variations from tender conditions, including changes in the country of origin of high-value equipment and materials.

A senior official said that while the procedural groundwork has been completed, any major decision—particularly one favouring the contractor—would likely require approval from higher authorities, possibly including the cabinet. Rejection of the verdict by either side could send the dispute into arbitration, extending the timeline further.

The Aviation Dhaka Consortium, comprising firms from Japan and South Korea, signed the contract in August 2020. The project proposal was first approved in 2017 and revised in 2019. Despite completion of construction, the terminal was given a soft opening in October 2023, ahead of national elections, leaving key financial and contractual issues unresolved.