Vietnam Transport Minister Dinh La Thang has informed lawmakers that an estimated $18.7bn will be needed for the construction of the new Long Thanh International Airport, which will be carried out in three phases.
The minister communicated the details to lawmakers attending the ongoing National Assembly session in Hanoi through a signed report which includes details of current state of Ho Chi Minh City's Tan Son Nhat airport.
The new airport is expected to ease pressure off the existing airport. By the time the construction is complete, the airport is expected to handle roughly 100 million passengers every year.
The first phase of the project will cost the government approximately $7.8bn, while the investment required in the next two phases amounts to $3.8bn and $7bn respectively.
A total of $1.03bn required for the first phase will be funded by the state budget, which is a decrease of $94.14m from the previous estimate.
The government has also suggested allowing the Airports Corporation of Vietnam (ACV) to keep $235.34m from the amount it generates from its own privatisation and that of its subsidiaries for site clearance, compensation and relocation expenses.
A total of $2.25bn worth of official development assistance (ODA) loans will be borrowed by the government for the first phase. The ACV will borrow the loans from the government and repay them on its own.
The transport ministry has also hinted that the Ho Chi Minh City terminal will become overloaded in the next two years, due to which, there was an urgent need to build the new airport.
According to the report, the domestic and international terminals at Tan Son Nhat airport have a total capacity of 25 million passengers a year and the airport is expected to reach that number by 2016.
Image: Vietnam will carry out the construction of the new Long Thanh International Airport in three phases. Photo: courtesy of khunaspix from freedigitalphotos.net.