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Thursday, February 25, 2021

Investment in Long Thanh Airport slashed by VND2.5 trillion

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HCMC – The State Appraisal Council has completed the assessment of a feasibility study over Long Thanh International Airport, stating that the total investment for the project has been slashed by more than VND2.5 trillion compared with the initial proposal, according to Thanh Nien Online website.

The report is eligible to be submitted to the Prime Minister for approval, said the council.

Earlier, a report prepared by the Airports Corporation of Vietnam and presented by the Ministry of Transport suggested a total investment of over VND111.6 trillion or over US$4.7 billion.

However, during the assessment process, the Government issued a decree leading to major adjustments to investment costs in the project. Therefore, the State Appraisal Council asked relevant units to review the report recalculating the figure.

The assessment result put the total investment for the airport at over VND109 trillion, down by over VND2.5 trillion compared to the initial estimation. Of this, the building cost dropped by over VND2.2 trillion and equipment cost increased by VND443 billion, while consulting, management and backup expenses were cut by VND677.9 billion.

For the first component project, State management offices will be built at a combined value of VND293.3 billion, using the budgets of project management units and mobilizing capital under the public-private partnership format.

For the second subproject, the Vietnam Air Traffic Management Corporation will develop flight management facilities worth over VND3.1 trillion including half of its own and the remaining from other sources.

According to the council, the construction of the project may last between 2020 and 2025, or even longer due to its large scale and complicated technical requirements.

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