return icon Vietnamnet.vn

Phase 1 of Long Thanh airport faces cost overruns

The cost of the first phase of the Long Thanh International Airport is roughly US$1 billion higher than the estimate previously cited and approved by the National Assembly (NA), according to the NA Standing Committee.

 

{keywords}

A house is within an area zoned for the construction of the Long Thanh International Airport in the southern province of Dong Nai. The airport’s first phase may cost roughly US$1 billion more than the initial estimate, due to land compensation increases – PHOTO: VNA

 

 

 

In a report in response to a draft resolution on the feasibility study for the first phase, the committee said the total investment, as stated in the NA’s Resolution 94 on in-principle approval for the project issued in 2015, was VND336.63 trillion, or US$16.03 billion applicable to the reference exchange rate of Vietnamese dong versus the U.S. dollar that year.

Of the figure, phase one accounted for an estimated VND114.45 trillion, or US$5.45 billion, including the cost of site clearance for some 5,000 hectares in the southern province of Dong Nai at VND14.139 trillion, or US$673 million.

In 2017, the legislative body adopted another related resolution, which allowed for land acquisition, compensation and resettlement support as a separate subproject.

The subproject cost an additional VND8.8 trillion, due to the addition of 379.35 hectares of land and a hike in compensation prices, raising the total cost of land clearance to VND22.938 trillion.

However, the Government noted in its latest report that the total cost of the first phase would amount to US$4.779 billion, excluding compensation and resettlement support costs.

Compared with investment restructuring in Resolution 94, the first phase now requires an additional US$1 billion.

According to the NA, the previous calculations were all estimates. The first phase is expected to develop several construction items with shared use, such as two roads, the flight management system and air traffic control.

Thus, the NA has asked the Government to decide on the total cost of the first phase, including land compensation and site clearance costs, providing that the overall investment for the three phrases does not surpass VND336.63 trillion, as approved in 2015.

The NA Standing Committee admitted that the current progress of land compensation and site clearance has been slow, so the handover of cleared land for the airport’s construction by the end of 2020 is a major challenge.

The Long Thanh International Airport is expected to meet the 4F standards of the International Civil Aviation Organization and become a major airport in the country and air transshipment hub in the region.

The airport is designed to handle up to 100 million passengers and five million tons of cargo per year once the three construction phases are complete.

In the first phase, slated for completion by 2025, the airport will have a runway and a passenger terminal that can accommodate 25 million passengers and 1.2 million tons of cargo per year.

One more runway and passenger terminal will be built as part of the second phase to serve some 50 million passengers and carry 1.5 million tons of cargo. The other construction items will be developed in the final phase. SGT

Long Thanh airport project heats up NA debate

Long Thanh airport project heats up NA debate

The feasibility study report for the first phase of the Long Thanh International Airport was deliberated on November 12 morning as part of the eighth sitting of the 14th National Assembly.

Commencement date nears, but capital sources for Vietnam's giant Long Thanh airport still unclear

Commencement date nears, but capital sources for Vietnam's giant Long Thanh airport still unclear

The Long Thanh International Airport project is scheduled to kick off in 2021, with the first phase of the project expected to be completed by 2025.

MORE NEWS

Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.

Huge real estate projects seek new investors

Many investors have quit large-scale investment projects capitalized at trillions of dong.

VIETNAM NEWS HEADLINES SEPTEMBER 24

Work starts on Tan Van-Nhon Trach section of HCM City’s Ring Road No.3

Three Vietnamese airlines named among world’s best air services

Vietnam Airlines, Vietjet Air, and Bamboo Airways have been honoured in different categories by Skytrax, a UK-based site which ranks airlines and airports.

Vietnam Days Abroad 2022 to take place in Austria, India, RoK

Vietnam Days Abroad 2022 will be held in Austria, India, and the Republic of Korea (RoK) on the occasion of the anniversaries of diplomatic relations between Vietnam and these countries.

UN backs Vietnam’s development priorities: Secretary-General

The United Nations (UN) will continue paying attention to and support Vietnam's development priorities towards green and sustainable orientations, and just transition, especially in terms of financial access.

Vietnam merits seat at UN Human Rights Council: Washington Times

The Washington Times has published an article in which it supports Vietnam's candidacy for the United Nations Human Rights Council (UNHRC) for the 2023-2025 term.

Storm Noru to enter East Sea, localities warned to stay alert

The National Centre for Hydro-Meteorological Forecasting has predicted that storm Noru will enter the East Sea on September 25 evening, and recommended coastal localities to brace themselves for the storm.

Vietnam plans to vaccinate under-5 children against COVID-19 if there’s scientific basis

The Ministry of Health has asked provinces to calculate the number of children from 6 months old to under 5 years old to prepare a plan on COVID-19 vaccination for them when there are enough conditions and scientific basis.

VIETNAM BUSINESS NEWS SEPTEMBER 24

Untapped opportunities for Vietnamese pepper exports to UK
back_to_top