Airports Corporation of Vietnam (ACV) has asked the Ministry of Transport for approval a project worth VND3 trillion (some US$139 million) to improve the passenger handling capacity of Danang International Airport.

As part of the project, a new passenger terminal will be developed at the airport in the central coast city of Danang. The new facility is envisaged serving four million passengers a year, including two million in the first phase.

ACV has hired a Singaporean consulting firm to design the new terminal for international flights, according to local news site VnExpress.

In addition to the new terminal, ACV said it is a must to build a lounge for VIPs at the airport to serve guests of the APEC summit expected to take place in Danang in 2017.

ACV calculated that of the VND3 trillion, construction and equipment installation would account for VND2 trillion and equipment purchases the remainder.

ACV said the current terminal at Danang airport can handle a maximum of six million passengers a year. As more than 5.8 million passengers, including 800,000 international visitors, went through the airport last year, it could be overloaded in the next 1-2 years.

Earlier this year, a consortium of Thang Long Aviation Services Corporation (TASECO), AOV Investment Corporation and Hanoi Construction Corporation (HANCORP) sent the ministry a project to build a terminal for international flights at Danang airport.

The consortium wanted to carry out the project under the build-operate-transfer (BOT) format and expected the facility will service around four million passengers a year.

Jetstar Pacific Airlines has written to the ministry asking for permission to purchase the operation rights to the old terminal at Danang airport and will upgrade the facility for low-cost services.

Currently, Jetstar Pacific and two other local carriers Vietnam Airlines and VietJetAir operate daily flights to and from Danang airport in the economic hub in central Vietnam.

Besides the expansion of Danang airport, ACV is preparing a plan to raise the handling capacity of Cam Ranh International Airport in Khanh Hoa Province by two million passengers to at least 3.5 million passengers a year. The expansion costs some VND1 trillion.

At a recent meeting in Hanoi, Minister of Transport Dinh La Thang told ACV to work with the Civil Aviation Authority of Vietnam (CAAV) on improving the zoning plans for Danang and Cam Ranh airports and implement expansion projects at these airports as scheduled.

Thang urged ACV to complete the expansion of Danang airport ahead of the APEC summit in Danang in 2017.

Thang also agreed on plans to select domestic investors for the projects to develop new facilities at Danang and Cam Ranh under the BOT format.