PPP investment for Na San airport after ACV's withdrawal

PPP early investment in Na San Aviation port

According to the Information of the Investment Newspaper, the Ministry of Transport has just sent an official letter to the People's Committee of Son La province about the investment in the construction of Na San Aviation port by PPP method.

The most important highlight in this official letter is that the state management agency in charge of transportation supports the policy of calling for the resources to invest in Na San Aviation port, including mobilizing from the PPP method.

Said Mr. Le Anh Tuan, Deputy Minister of Transport, dealing with the great demand for investment capital for transport infrastructure in general and Aviation ports in particular, the Ministry of Transport has researched and proposed the orientations to mobilize the social capital for investment in each group of Aviation ports in Vietnam’s Aviation port system.

Specifically, the Project on financing orientation of the social capital for investment in Aviation port infrastructure, which is being submitted by the Ministry of Transport to the Prime Minister for approval, Na San Aviation port of the Aviation port groups in mountainous areas, islands is hard to balance income - expenditure and has a planned capacity of fewer than 5 million passengers/year. This group of Aviation ports is oriented by the Ministry of Transport to transfer the infrastructure works to the locality to actively mobilize the resources for investment and development.

“After the Project is approved by the appropriate authority, Son La Province People's Committee needs to actively coordinate with the relevant agencies to implement the investment procedures according to the regulations in order to mobilize the investment resources to develop Na San Aviation port," said Deputy Minister of Transport.

In mid-March 2022, Son La Province People's Committee sent an official request to the Prime Minister, The Ministry of Transport approved the investment policy of Na San Aviation port Project in PPP form valued at about VND 2,000 billion and Son La Province People's Committee is assigned to be the state appropriate authority to implement immediately in the period of 2020 - 2025.

According to Son La Province People's Committee, Na San Aviation port plays an important role in the main airport network of the Northwest region, and it is the main airport in the national military Aviation port network (airport of line No. 2). Besides, this Aviation port is also identified as an important driving force project that plays an important role in promoting the province’s socio-economic development, thus it should be invested in soon.

"To ensure the feasibility, Son La Province People's Committee will balance and allocate about VND 300 billion from the local budget to promote the investment attraction and speed up the project progress," affirmed Mr. Hoang Quoc Khanh, Chairman of Son La Province People's Committee.

ACV withdrew

It should be further said that the investment socialization is the only door for Son La Province People's Committee to start the Na San Aviation port project as soon as possible.

In July 2019, the Aviation ports Corporation of Vietnam (ACV) - The entity is assigned to manage Na San Aviation port and the pre-feasibility study report of the Na San - Son La Aviation port Construction Project has been submitted to the appropriate authority for approval.

Thereof, ACV proposes to invest in a new runway, dimension of 2,600 x 45 m, cement concrete structure, to ensure to receive A320/321 aircraft or equivalent; the system of taxiways, apron; navigation signal, synchronous meteorology. For the civil aviation area, ACV proposes to build a linear terminal with an area of 8,365 m2, meeting the capacity enough for 1 million passengers/year to arrange the standard functional areas and service business areas, to serve passengers; 3-story port operating house, a total area of 2,817 m2.

This project with a total estimated investment of VND 2,295 billion will be fully invested by ACV with corporate capital, with the implementation period for the period of 2020 - 2025.

However, by March 2022, ACV reported to the Ministry of Transport on the review, and development of investment capital allocating ability for the 2021-2025 period for the essential works at Aviation ports managed and operated by ACV. Which, ACV has not yet planned to invest Na San Aviation port Construction Project during this period and proposed the Ministry of Transport consider proposing and calling for appropriate investment forms as prescribed.

“Covid-19 epidemic results in a decrease in revenue and profit, ACV will only prioritize resources to implement 6 key projects including Long Thanh airport of phase I; T3 terminal of Tan Son Nhat aviation port; expanding Noi Bai T2 terminal; T2 terminal and Phu Bai apron; investing in expanding Dien Bien Aviation port; passenger terminal and apron at Cat Bi Aviation port", said Mr. Lai Xuan Thanh, Chairman of ACV's Board of Directors.

In fact, the withdrawal of ACV at Na San Aviation port Construction Project is not a big obstacle, even opening up the opportunities for other private investors to participate in.

Clause 1, Article 48, the Government’s Decree No. 05/2021/ND-CP dated January 25, 2021, on the management and operation of aviation ports and aviation ports stipulates: “Aviation port enterprises are responsible for investing in the construction, upgrading, and expansion of essential works. In case the Aviation port business is unable to invest according to the Aviation port development plan approved by the state appropriate authority, the Ministry of Transport proposes and calls for appropriate investment forms in accordance with the law.

According to Son La Province People's Committee, this locality has recently promoted to call for investment in the construction of Na San Aviation port. Currently, there are such investors as Him Lam Capital Joint Stock Company, and FLC Group Joint Stock Company ... are interested in researching and investing in the project in the form of a BOT contract.

“The area of Na San Aviation port has been marked according to the approved and updated detailed planning in the provincial land use planning, to create favorable conditions for private investors to deploy after the investment policy in PPP form approved by the appropriate authorities", informed the leader of Son La People's Committee.

Na San aviation port has stopped operating since 2004 because the degraded infrastructure system and facilities are impossible to meet the operating and user requirements.

According to the master plan document on the development of the aviation port and airport system across the country in the period of 2021-2030, with a vision up to 2050, which is being submitted to the Prime Minister, Na San aviation port is planned with a capacity of about 1 million passengers/year by 2030, with a 2050 expected capacity of about 2 million passengers/year.

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