Central Vietnam province Khanh Hoa plans $311 mln airport per PPP format

Khanh Hoa province in central Vietnam is preparing to build the Van Phong airport with an investment of VND7,892 billion ($311 million) under the public-private partnership (PPP) format.

In a draft document sent to the Ministry of Transport and the Civil Aviation Authority of Vietnam (CAAV), Khanh Hoa authorities noted the project was part of the province’s 2021-2030 master plan, with a vision until 2050.

The 497-hectare airport will be located in Van Ninh district, 101 kilometers away from the province’s Cam Ranh international airport and 49 kilometers away from Tuy Hoa airport in the neighboring province of Phu Yen.

The draft document envisages the project, which has a 47-year payback period, sourcing VND2,150 billion ($84.7 million), or 27.2%, from the State budget.

It also mentions a locational “advantage” for the project, since its entire area covers nearshore water surface, which means no residential area, protective forest, mangrove forest, historical relics or shelter area for boats will be affected. This will enable smooth site clearance. The airport’s Northeast-Southwest runway will be over 3,050 meters long.

In its 2023-2029 first phase, the airport will have an annual capacity of 1.5 million passengers and will meet 4E level standards of the United Nations’ International Civil Aviation Organization (ICAO).

For project implementation, Khanh Hoa authorities have suggested three options, the first of which will have the State handling site clearance and investors building the airport.

The second option will have investors building the terminals, aircraft parking areas and traffic infrastructure; while the State budget will cover land leveling, construction of runways and taxiways as well as flight operation facilities.

The third option will have the State budget help with the site clearance and citizen resettlement (if any), investment in flight operation facilities and part of the land leveling. The investors will level the area of the airport’s civil section, construction of civil aviation sections and traffic infrastructure. Provincial authorities have expressed their preference for the third option.

The project will boost the province’s socioeconomic growth in general and of the Van Phong economic zone, in particular, the draft document says. It can also speed up establishment of urban areas, industrial parks and tourism areas; as also form links between key economic areas.

The document also says that the proposed PPP format will reduce the investment burden on the State budget, while easing management pressures.