A rendering of the proposed Long Thanh International Airport to be built in the southern province of Dong Nai (Photo courtesy of the Airports Corporation of Vietnam) Hanoi (VNA) - The National Assembly (NA) hasissued a resolution that requires the investor of the proposed Long ThanhInternational Airport to use its own funds instead of money from the Government.
The NA’s Resolution 95/2019/QH14 states that the Governmentmust ensure that the investor abide by principles of financial efficiency andnational defence and security.
In a feasibility study submitted to the NA by the Ministry ofTransport, the Government said it preferred to assign the State-owned AirportsCorporation of Vietnam (ACV) as the investor for the mega airport project to belocated in southern Dong Nai province.
The ACV, which manages 21 airports across the country, wouldinvest in the first runway, taxiways, a terminal, an aircraft parking space andother major infrastructure at the airport.
It needs to raise about 98 trillion VND (4.2 billion USD) forthe project. The ACV said it expected to have 36.6 trillion VND (1.57 billionUSD) by 2025, or 37 percent of the investment.
The ACV has been working with 12 domestic and internationalorganisations to borrow the remaining amount at an interest rate of 5-5.5percent a year with a loan term of 15 years.
However, lawmakers have expressed concerns over the financialcapacity of the ACV to build the country’s largest airport, saying that itcould add 2.63 billion USD to the public debt.
Vu Hong Thanh, Chairman of the NA’s Economic Committee, saidthat the ACV’s plan to borrow nearly 2.63 billion USD of the 4.2 billion USDneeded for the project would likely be guaranteed by the Government, thusadding to the public debt.
Because the ACV has already been tasked with expanding Tan SonNhat International Airport and other airports, the Government should evaluate theACV's ability to raise more capital, he added.
Long Thanh is a massive project that will affect nationaldefence and security, and the appropriate investor must be chosen to assureefficiency and socio-economic development, according to Thanh.
Ninety percent of NA deputies approved Resolution 95/2019/QH14which addresses the feasibility report for a runway, terminal and othercomponents in the first phase of construction, with the aim of serving 25million passengers and 1.2 million tonnes of goods each year by 2025.
Total investment of the airport should not exceed 336.63trillion VND (16 billion USD) as approved in June 2015, with the first phasecosting around 111.69 trillion VND (4.8 billion USD), it said.
The NA also agreed to divide the national defence area of1,050 hectares into two main parts. An area of 480 hectares will be used todevelop the airport with military actions prioritised.
Under the NA resolution, two roads connecting the airportwith Highway 51 and HCM City – Long Thanh – Dau Giay expressway will be added.
The Government is expected to build a transport systemconnecting the airport area with the Southern Key Economic Region.
The NA has also urged the Government to speed up landclearance for the huge project, saying that the current process was too slow.
The airport proposal was approved by the NA four years ago,but funding has remained a significant issue.
Construction was expected to start early next year. To bebuilt in three phases over three decades, it would be the country’s largestairport.
The first phase is scheduled for completion in 2025, with acapacity of 25 million passengers a year. The next two phases would run from2030 to 2035 and from 2040 to 2050.
Once completed, it would have an annual capacity of 100million passengers and five million tonnes of cargo.
Located 40km east of HCM City, the Long Thanh airport isexpected to relieve overloading at Tan Son Nhat International Airport in HCMCity, the country’s largest airport./.
VNA
