Vietnamese budget air carrier Vietjet’s proposal to expand Dien Bien Airport in the northern mountainous province of Dien Bien has received support from the Ministry of Transport (MoT).
The airline wants to build a new passenger terminal at the airport at a projected cost of nearly VND1.85 trillion (US$79.6 million) under the build-operate-transfer format, with a contract term of 55 years, reported Vietnam News Agency.
Vietjet plans to put up a 16,000-square-meter passenger terminal that can accommodate two million passengers a year as well as an 18,000-square-meter parking lot. The development of a road connecting Nguyen Huu Tho Street and the terminal is also being proposed by the airline.
In a recent report, the MoT said Vietjet has asked Dien Bien’s People’s Committee to set aside VND1.21 trillion to fund site clearance and the resettlement of affected families. Local budget is also needed to cover the cost of building of new facilities such as runways, a taxiway, an apron, and roads for VND1.34 trillion, and a new air traffic control tower worth VND60 billion, as per the report.
Vietjet has estimated that the expansion program will take 24 months, the report noted.
Under Vietjet’s proposal, the airport’s expansion will cover 145 hectares. It will include a taxiway with a length of 2,400 meters and a width of 45 meters, two runway turn pads, a 15-meter way connecting the parking area, and four aprons for A320/B737 aircraft covering a total area of 21,000 square meters.
The Airports Corporation of Vietnam (ACV) will remain as the operator of the airport. ACV will reportedly sign a contract with Vietjet on providing new passenger terminal operation and management services. Vietjet will also pay ACV a mutually agreed franchising fee annually.
A representative from ACV said that it has sufficient capital to invest in the entire airport system. However, after the company embarked on equitization, airport traffic infrastructure investment has remained in the hands of the state, so ACV is not allowed to invest in upgrading airport traffic infrastructure works.
The provincial People’s Committee had in a document sent to the MoT stressed the importance of upgrading the airport.
But according to MoT, Dien Bien Province needed to balance its budget for the clearance work amid state budget constraints. The central budget can only set aside VND1.34 trillion for the project.
The ministry also suggested that the Prime Minister assign the Commission for Management of State Capital at Enterprises and the ACV to work out an effective funding solution for the airport’s expansion if the province failed to get sufficient financing from the state.
Photo: [Tycho]
