On December 21, the Government Office announced that Deputy Prime Minister Tran Hong Ha has just signed Decision No. 1621/QD-TTg adjusting the investment policy for the Sa Pa Airport construction project in Lao Cai province under the public-private partnership model.
The Decision clearly states that the investment policy for the Sa Pa Airport construction project in Lao Cai province under the public-private partnership model has been approved by the Prime Minister in Decision No. 1773/QD-TTg dated October 21, 2021 with the following contents:
Regarding the expected project implementation time, according to the initial investment policy in Decision No. 1773/QD-TTg, the expected project implementation time is 50 years (expected construction time is 4 years; operation, exploitation and capital recovery time is 46 years).
Decision No. 1621/QD-TTg adjusts as follows: Estimated project implementation time: Component project 1 (Land clearance and resettlement) is 5 years.
Component project 2 (Airport construction): Contract term 47 years (time for technical design appraisal, construction drawing design, contractor selection: 1 year; time for operation, exploitation and capital recovery: 43 years 11 months; estimated construction time for phase 1 is 2 years 1 month).
The construction period of phase 2 is within the operation, exploitation and capital recovery period of the project (during the construction of phase 2, the project is still operating and exploiting, so it does not affect the financial plan of the project).
Project implementation schedule: Phase 1 from 2021; Phase 2 from 2028.
Regarding the expected land use demand: the expected land use demand remains at 371 hectares, however, Decision No. 1621/QD-TTg clearly states that the entire 371 hectares will be cleared in phase 1, to be completed in 2025; the construction area of phase 1 is 295.2 hectares; the construction area of phase 2 is 75.8 hectares.
The preliminary total investment of the project remains at 6,948,845 billion VND, however, the investment level is adjusted at each stage.
Accordingly, the total investment in phase 1 is 4,295,289 billion VND (an increase of more than 111 billion VND compared to the original plan), of which component project 1 - Site clearance and resettlement: 555 billion VND; Component project 2 - Airport construction: 3,740,289 billion VND.
Total investment in phase 2: VND 2,653,556 billion (a decrease of more than VND 111 billion compared to the original plan) to implement Component Project 2 - Airport construction.
The capital structure has also been adjusted. According to Decision No. 1621/QD-TTg, phase 1: Capital mobilized by investors (equity, credit capital) is 2,192,918 billion VND; State capital participating in the project is 2,102,370 billion VND.
Capital structure of phase 2: Capital mobilized by investors (equity, credit capital) is 1,339,845 billion VND; State capital participating in the project, self-balanced by the locality in the period 2026 - 2030, is 1,313,711 billion VND.
