The Ministry of Transport (MoT) has submitted to the Prime Minister a construction plan for Dong Nai-based Long Thanh International Airport, with the first phase estimated to cost US$5.6 billion.
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The Ministry of Transport (MoT) has submitted to the Prime Minister a construction plan for Dong Nai-based Long Thanh International Airport, with the first phase estimated to cost US$5.6 billion.
The MoT proposed building a terminal capable of serving 25 million passengers a year and two parallel runways in the first phase. Together with compensation for approximately 5,000ha land clearance, total budget for the first phase was estimated at US$7.8 billion.
The ministry insisted it is difficult to mobilise such a huge amount of capital in the current context of domestic and global economic slowdown.
It later decided to divide phase 1 into phase 1A and 1B. Accordingly, more than 2,500ha of land will be acquired for a runway and a terminal capable of receiving 17 million passengers a year in Phase 1A, costing US$5.6 billion.
An additional US$2.2 billion will be mobilized for the acquisition of the remaining 2,400ha of land to build the second runway in phase 1B.
In phase 1A, approximately US$2.7 billion will be sourced from the State budget, government bond sales, and official development assistance (ODA). The remaining US$2.9 billion will be mobilised from businesses and through joint venture and public-private partnership (PPP) models.
MoT Dinh La Thang has revealed a number of foreign investors from Japan, France and the Republic of Korea are keen to invest in the project in the form of PPP or BOT (build-operate-transfer).
Phase 1A is scheduled to get off the ground in 2017 and complete by 2023.
(Source:VOV)
