The multi-billion contract to build and operate Vietnam’s Long Thanh International Airport in the southern province of Dong Nai will be up for grabs soon.
The Vietnamese government has approved the project at an estimated cost of $7.84 billion, the country’s local media reported.
Once completed, the international airport is slated to handle 100 million passengers and five million tonnes of cargo by 2030. Vietnam’s goal would be to challenge and also provide an alternative to Thailand’s Suvarnabhumi and Singapore’s Changi airports’ , the current international hubs for the region.
A contract of this size is set to draw interest from airport infrastructure companies in the region as well as from consortiums across the globe.
It is learnt that Aeroports de Paris, the airport authority that owns and manages the fourteen civil airports in the Paris area, is also interested in the project.
Earlier this year, seven bidders had joined the race to build an international airport in Cebu in Philippines, and these included San Miguel Corp., Ayala Corp., Metro Pacific Investments and JG Summit Holdings, Filinvest (partner of Singapore’s Changi) and the $390 million deal was bagged by a partnership of Megawide Construction Corp and India’s GMR Infrastructure. Philippines will soon invite bids for the construction of a low-cost terminal at Clark International Airport.
Long Thanh International Airport will have a two-stage investment process. The first, to be completed by 2025, will be to develop passenger terminals that can service 25 million passengers and 1.2 million tonnes of cargo annually, and this is expected to cost as much as $5.6 billion
According to the Airports Corporation of Vietnam (ACV), an amount of $2.7 billion for the first phase will be funded from the Government budget, bonds, and through loansfrom the Official Development Assistance (ODA) fund. Mobilized capital from businesses, joint-ventures, public-private corporation will make up for the remaining $2.9 billion to build the stations, parking lots, aircraft maintenance workshop, fuel system and commercial buildings.
The second phase will see the airport being expanded to the aforementioned maximum capacity.
Long Thanh Airport is considered one of Vietnam’s most important projects. It will take the pressure off the overloaded Tan Son Nhat International Airport in Ho Chi Minh City and also act as an international transit hub in Southeast Asia.
Data complied by CAPA Centre for Aviation reveals that about $385 billion worth of airport construction projects are either planned or in progress globally, with Asia accounting for about a third. China alone is slated to add 69 regional airports by next year in addition to the 193 that are already operational.
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