The move follows a proposal by Lao Cai Province People’s Committee to raise the state budget capital contribution to developing Sapa Airport in order to attract private investment into this project.
According to the proposal, the state budget will contribute VND3.456 trillion or 49.74 percent, instead of VND2.730 trillion or 39.29 percent as previously proposed.
Explaining the raise, Lao Cai Province People’s Committee said that no investor has registered to carry out the project so far, as the project requires large capital while it would take up to 44 years to recover the investment.
The Ministry of Planning and Investment has asked Lao Cai authorities to co-operate with the Ministry of Transport to ensure the feasibility of the project.
Under ta prime ministerial decision in October 21, 2021, Sapa Airport Project will need investment of nearly VND7 trillion (USD287.35 million) and be implemented under a public-private partnership model. Capital from the state budget will not exceed 50 percent of the project’s total investment.
The airport, covering over 370 hectares Bao Yen District, is to be developed into a joint-use airport, serving both military and civilian purposes with a capacity of serving 1.5 million passengers per year in the first phase and three million passengers once completed.
Bao Yen District has basically completed site clearance and relocation for the implementation of the first phase of the project which will need cost nearly VND4.20 trillion and be completed in 2028.