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Vietnam Today

Less capital needed for Long Thanh Airport

Released at: 08:38, 26/02/2015

Less capital needed for Long Thanh Airport

Most recent plan cuts capital by $1.2 billion.

by Son Ho

The lastest plan for the Long Thanh International Airport project has cut its investment capital by $1.2 billion, or 15 per cent compared to the previous plan.

The biggest change is the adjustment to capital for the first phase, according to a senior official from the Airport Corporation of Vietnam (ACV). “Estimated funds are only $6.6 billion, $1.2 billion less than in the previous plan submitted to the National Assembly,” he said.

The significant reduction in necessary capital is due to the construction of only one runway in the first phase rather than two.

Mr. Dinh Viet Thang, General Director of the Vietnam Air Traffic Management Corporation, said that despite having just one runway in the first phase the airport will still be able to handle 254,000 take-offs and landings each year, catering to a maximum capacity of 38 million passengers.

The plan was completed after a meeting on February 24 between the Ministry of Transport, ACV and other related parties. It will be submitted to the Standing Committee of the National Assembly on February 26. The change in calculation method, removing compensation for land formerly belonging to Defense Management and relying on funds from equitizations, will also save approximately $187.24 million.

Minister of Transport Dinh La Thang noted that once the National Assembly has given its opinion the plan needs comments from delegates and local and foreign experts. “This will make the project better and of higher quality, ensuring the implementation is effective and in accordance with the plan,” the Minister emphasized.

He also asked related parties to review the total investment for the project and identify any unnecessary items in the first phase. He also called for maximum socialization in investment. “It is important to specify that investment is for one terminal and one runway in the first phase,” he said. “The time for subsequent investments will be decided upon according to the plan, strategy and amount needed,” he said.

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