Super Long Thanh International Airport project: No shortage of capital

It was confirmed by Deputy Minister of Transport – Transport Pham Quy Tieu the feasibility of funding of up to $ 7.8 billion to build an international airport in Long Thanh phase I.

Not difficult to raise capital

Speaking at a seminar online titled “Long Thanh International Airport Project: Opportunities and Challenges” by Web portal Government held last weekend, said Pham Quy Tieu, there are many mobilizing channel feasible project is high for many items subject to the investment and construction – mining – transfer (BOT) or of public – private partnership (PPP) this.

Super Long Thanh International Airport project: No shortage of capital
Perspective Project International Airport Long List
Specifically, although the amount of ODA for the project is not specified, but in the joint statement dated 31/10/2010 and 12/15/2013 result day talks between the Prime Minister of Vietnam and Prime Minister of Japan, the Japanese side expressed interest, commitment to investment and development cooperation airports Long Thanh International.

Also, in recent years, the authorities of the two governments have repeatedly promoted and sent many missions, such as the International Cooperation Agency of Japan (JICA), working with Vietnam for the supply of capital ODA for the PPP for capital flight and other items.

Reportedly, the explanatory report on additional investment report investment project built an international airport in Long Thanh sent Economic Committee of Congress, said the Ministry of Transport, Aeroports de Paris Group (France) proposed to Airports Corporation of Vietnam (ACV) expressed interest in investment and credit to the project.

Leadership MOT certified, Samsung (South Korea); Narita, Taisei, Mitsubishi, JAC (Japan) … had written to express concern and desire to invest in the project.

Deputy Pham Quy Tieu said, raising investment capital building international airport in Long Thanh associated with the project will invest in specific categories, according to the principle of state support only investment or investment part of the infrastructure is not capable of payback; encourage capital investment by the state budget in the items component extraction services, with the ability to recover their investment.

At the information session to introduce the project in Ho Chi Minh City in mid-week, Vice Minister Nguyen Hong Truong said that at about 2.07 billion in ODA for the first phase, scheduled introduction of Government loans, business loans, the planned disbursement of each year, the impact of these loans to GDP is negligible, particularly in the period 2016-2019.

“The project results analysis shows that the economic internal rate of completion (EIRR) is 22.1%, higher than the social discount rate (EIRR standards for public buildings in Vietnam for 10 – 12%), should work with good repayment capacity, “he confirmed cases.

Share this perspective, the independent expert Luong Hoai Nam, CEO of JSC Seagull Aviation said, if the investment project is to ensure the internal rate of return of 15%, the cash flow project to repay the loans.

“If the project achieved the internal rate of return is calculated as, or slightly lower than calculated, the ability to pay debts no matter what,” said Nam evaluation.

Needless to say, in a report to the Economic Committee of the National Assembly, Minister of Planning and Investment Bui Quang Vinh, as Chairman of the Council of State that can be reviewed, approved assessing the economic effects – social as above analysis.

“In the stage of feasibility study report on the project, to continue research and surveys, further evaluation as a basis for the evaluation and approval of the project”, Minister Bui Quang Vinh recommendations.

Unsolvable problem of overloading the Tan Son Nhat airport

According to Vice Minister Nguyen Hong Truong, 2013, Tan Son Nhat airport served 20.035 million passengers, while the design capacity is only 20 million passengers / year.

Even Airports Corporation of Vietnam ongoing renovation and expansion, the maximum capacity at the airport can only meet 25 million passengers / year.

“If we continue to keep growth at present, Tan Son Nhat will reach maximum capacity after 3 years,” said Truong said.

Appreciate the effort “newly expanded” of all airports, but Mr. Lai Xuan Thanh, Director of Vietnam Airlines said that the quality of airport services will inevitably decline as the land is no longer for the development service activities.

If on the ground, the Corporation may also be “stirred” a little, but the lifting capacity of the receiving aircraft landing on the air traffic at the airport was not possible. Do not store overlap with the military airport in Bien Hoa, Tan Son Nhat airport should only be able to receive 29 flights going to / hour, when in fact it is now time to receive up to 34 trips.

According to Mr. Tat Cang, Vice Chairman Ho Chi Minh City Tan Son Nhat airport has a total area of 1,500 hectares, with 590 hectares are being exploited, combined with military operations, but in urban areas high population density. With a capacity of 20 million passengers / year, the transportation system connects with the existing airport was often overloaded.

He Cang said that if the total capacity to 50 million passengers / year, the Tan Son Nhat Airport will be extended north to indemnify area 641 ha, total investment is expected to be 9.152 billion . With this expanded scale, transportation systems around the existing airport will be overloaded, leading to severe traffic congestion on a large scale, will require investment of at least 3 metro lines, one line above, 1 monorail, with a total cost of about US $ 8.31 billion …

“On the other hand, the expansion of Tan Son Nhat airport will break all the planned urban development is constrained by the static, hopper fly,” he Cang analysis.

Meanwhile, the use of the Bien Hoa airbase civil airports do not have to build Long Thanh International Airport is also not feasible. The reason is, Bien Hoa airport is located on the flight corridor, at Tan Son Nhat airport and “disputes” the sky to Tan Son Nhat airport. Thus, if the variable Bien Hoa airport into a major civil airports to resolve congestion airport infrastructure underground, they do appear congestion routes heaven, that is causing waste of money can not achieve any significant improvement.

“The aviation industry is faced with a very difficult problem solving overcrowding at Tan Son Nhat airport in year period 2017 – 2023, the Long Thanh International Airport was put into operation,” said Thanh said.