VietNamNet Bridge – The Ministry of Transport is looking to raise a hefty VND712 trillion (some US$33 billion) for airport and expressway projects to be implemented between now and 2020 to meet rising demand for passenger and cargo transport and fuel growth.

The ministry put investments in airport projects in the period at more than VND230.2 trillion (US$10.7 billion). More than VND30.7 trillion (13.3%) would come from the State budget and proceeds from Government bond sales, VND23.96 trillion (10.1%) from the private sector, and the rest from official development assistance loans and other sources.

The ministry is working on a scheme to sell the operation rights to a number of airports and terminals to raise funds for new airports, including Long Thanh international airport in the southern province of Dong Nai.

The scheme has attracted the attention of domestic enterprises. Vietnam Airlines Corporation and VietJet Aviation Joint Stock Company (VietJetAir) have written to the ministry seeking to take over Terminal 1 (T1) at Noi Bai International Airport in Hanoi.

T&T Group has expressed its intention to own the operation rights to Phu Quoc International Airport off mainland Kien Giang Province while Jetstar Pacific Airlines wants to buy the old passenger terminal at Danang International Airport in the central region for 20-50 years to cater to low-cost services.   

A consortium of Thang Long Airport Services Corporation (TASECO), AOV Investment Corporation and Hanoi Construction Corporation (HANCORP) has submitted to the Ministry of Transport a plan to develop a new terminal for international flights at Danang International Airport under the build-operate-transfer (BOT) format.

Regarding expressway projects, the Ministry of Transport plans to build 150 kilometers between Quang Ngai Province and Quy Nhon City of Binh Dinh Province, 47 kilometers between Bien Hoa City of Dong Nai Province and Phu My of Ba Ria-Vung Tau Province, 200 kilometers between Nha Trang and Phan Thiet cities, 74 kilometers between Dau Giay Intersection and Tan Phu District in Dong Nai Province, and 52 kilometers between Halong City and Mong Duong in Quang Ninh Province.

The ministry reckoned more than VND482.2 trillion would be needed to build nearly 2,000 kilometers of expressway to raise the total length of expressway nationwide to 2,500 kilometers by 2020.

Mai Anh Tuan, general director of Vietnam Expressway Corporation (VEC), said many domestic and foreign enterprises have shown interest in the expressway projects, including Bitexco, Sovico and investors from the United States, Japan and France. Particularly, France’s Vinci Group wants to buy the operation rights to three expressways in the country.

Therefore, Tuan expected the country can have 2,500 kilometers of expressway by 2020 though he acknowledged financial constraints as one of the main barriers to realizing the target.

The ministry will review pricing regulations before working with investors over transferring the operation rights to airports and expressways. The ministry will hold auctions for the projects which attract at least two investors.

In addition to selling airport, expressway and seaport operation rights, the ministry is pinning high hopes that the Government’s new decree on public-private partnership (PPP) investment with clear regulations will woo many more investors to infrastructure projects in the years to come.

SGT