PM approves cash for new airport

Prime Minister Nguyen Tan Dung has approved loans for a new airport terminal in Ha Noi and a new airport in the southern province of Dong Nai.

He said Ha Noi's Noi Bai Airport would receive 50% of its capital to build the four-storey T2 Terminal from the Viet Nam Development Bank and the remaining capital from commercial banks.

Lend funds

The State Bank of Viet Nam will ask State-owned commercial banks to lend funds to the project and the transport ministry will develop a management framework to ensure full return on the investment.

The T2 Terminal, with a total floor surface of 90,000sq.m, includes an aircraft parking area, a fuelling system, a multi-storey car parking building and an internal system of roads and passing bridges.

The project, worth around US$35 million, is due to be completed on the occasion of Ha Noi's 1,000th anniversary celebration in October 2010.

The PM said the new Long Thanh International Airport in Dong Nai Province would receive 70 per cent of its capital from the State-owned stakeholders and the remaining 30 per cent from strategic foreign partners as well as other stakeholders.

With its possession rate of 11%, the Bank of Investment and Development of Viet Nam is in charge of defining the distribution of each founding stakeholder's contributions. The bank will also help implement the first stage of the project.

The authorities of Dong Nai Province government have been tasked to find land to relocate the displaced population that must move to make way for the airport, and in addition, assess the levels of compensation for residents.

Long Thanh International Airport will span an area of 5,000ha in Dong Nai's Long Thanh District with a total investment of US$8 billion.

The airport is expected to be competitive with other airports in the region.
Source: VNS