Airport management to go into pvt hands

Front view of Shah Amanat International Airport, Chittagong. Photo: Star

The international tender floated in this regard scheduled to open today (September 10) has been extended till September 30.

The time has been extended at the request of the intended bidders to facilitate them in finding more investors and operators, sources at Civil Aviation Authority of Bangladesh (CAAB) said.

It would also help the bidders come forward with better offers for us, they said.

Some 22 foreign firms including those from Thailand and Malaysia took the concept forms of the tender where any country other than the South Asian Association for Regional Cooperation (SAARC) enlisted ones was allowed to participate.

But many of them stepped back and refrained from submitting the tender due to number of flights which they reportedly found insufficient, sources said.

At present only the southern hemisphere is open for the private operators and the bidders urge for opening the other hemispheres as well, they said adding, the CAAB has already conveyed the demand to government.

Opening of all the hemispheres for the private operators could have increased the number of flights and revenue through different charges such as landing, parking, boarding and lodging as well, they said.

The private sector will take control of overall management except the regulatory works such as operation and control of flights, sources said.

The initiative was taken to increase income of the airport and start paying back the return of Japanese loan of Tk. 511 crore in an annual instalment of Tk. 36 crore from the next year.

The CAAB took the loan from Japan Bank for International Cooperation (JBIC) for modernisation and expansion of the airport that was completed in early 2001.

The airport manager Khorshed Alam Sarker said since its journey as modern international one on March 24, 2001, the airport was earning revenue of around Tk.13 crore on an average a year. But after meeting the expenditures the neat profit amounted to around Tk. 6 crore, he said.

As such payment of an annual return of Tk. 36 crore would be difficult for the authorities, Sarker said.

The international tender was floated for the first time shortly after the decision on private management in 2001. The offer for private management did not get sufficient response from the concerned quarters. It forced the authorities to extend time for floating the international tender for the second time in May last year. The time was extended at the request of some foreign firms, sources said.