A corner of Tân Sơn Nhất International Airport in HCM City. Photo courtesy of ACV

HCM CITY — Prime Minister Nguyễn Xuân Phúc has assigned State-owned Airports Corporation of Việt Nam (ACV) to be the investor of the third passenger terminal at HCM City’s Tân Sơn Nhất International Airport.

The new terminal with a capacity of 20 million passengers a year has a total investment of more than VNĐ10.99 trillion (US$472.42 million).

ACV’s investment will come from all corporate capital with no State budget money. 

The terminal with a lifespan of 50 years is expected to be completed within 37 months as assigned by the Government. 

According to ACV chairman Lại Xuân Thanh, the corporation will also invest in parking lots and related constructions for the new terminal at Tân Sơn Nhất airport.

The PM has asked HCM City People’s Committee to be responsible for information about the project appraisal and report it to the Ministry of Planning and Investment.

The PM has asked the Ministry of Transport to ensure that ACV complies with provisions on management of aviation infrastructure assets invested in and managed by the State.

In Việt Nam, runways are managed by the State, while terminals and parking lots are managed by ACV.

The Ministry of Transport last year asked the Government to allow ACV to invest in the new passenger terminal, saying the construction would be 100 per cent funded by the ACV.

The ministry said in order to ensure fairness and transparency, ACV would have to conduct bidding procedures to select design consultants and construction contractors.

ACV has demonstrated its capacity through important investment projects such as Terminal T2 at the Nội Bài International Airport, Phú Quốc international airport, the passenger terminal of Vinh international airport, among others.

The Ministry of Transport in 2018 approved Tân Sơn Nhất airport’s expansion of its capacity to 50 million by 2025, with 20 million from the third terminal and 30 million from the upgrade of two existing terminals.

In a related issue, the Government has proposed naming ACV as the main investor for the first phase of Long Thành International Airport in the southern province of Đồng Nai.

Minister of Transport Nguyễn Văn Thể has submitted a feasibility report on the first phase of the airport at a cost of VNĐ111 trillion ($4.779 billion) to the National Assembly (NA).

According to the report, ACV will invest in the first runway, taxiways, a terminal, an aircraft parking space and other major infrastructure at the airport.

The National Assembly Standing Committee said the Government has the right to choose an investor for Long Thành airport as long as it ensures its chosen investor abides by principles of national defence and security, national interest and financial efficiency.

ACV operates 22 airports in Việt Nam, including nine international airports and 13 domestic airports. — VNS