PPP funding, special mechanism proposed for $363 mln central Vietnam airport

Vietnam’s central province of Khanh Hoa has proposed developing Van Phong international airport through a public-private partnership with an initial estimated cost of VND9.2 trillion ($363 million).

According to a proposal submitted by the provincial People’s Committee to the Ministry of Transport, the state will oversee relocation, land clearance, and certain flight operation infrastructure, while public-private partnership (PPP) investors would be responsible for building airport facilities, civil aviation areas, and a connecting traffic system.

The provincial government also asked for a special mechanism for the project. It proposed a state budget contribution of VND2.15 trillion ($84.75 million), or 23.3%, and private investment of VND7.06 trillion ($287.4 million) with an estimated payback period of 44 years.

The Van Phong international airport will be located in Van Thang commune in Van Ninh district, 65 km south of Nha Trang town, 108 km south of Cam Ranh international airport, and 48 km south of Tuy Hoa airport in neighboring Phu Yen province. Its northeast-southwest runway will be 3,050 meters long.

The airport will span 497 hectares, including 10 ha managed by the military. Notably, it will be built on land reclaimed from the sea

The project will have an initial capacity of 1.5 million passengers a year. It will meet level 4E design standards and also function as a level 1 military airport.

If approved, work will start as early as this year and the completion deadline will be by 2029.

The construction of Van Phong international airport is in line with the national airport development master plan for the 2021-2030 period, with a vision to 2050; the master plan of Khanh Hoa province; and the adjusted general plan for Van Phong Economic Zone approved by the prime minister.

Van Phong is one of three key economic zones in Khanh Hoa province. According to the master plan of Khanh Hoa, the 150,000-hectare zone plays a leading role in attracting investment and is a driving force for the economic development of neighboring regions and the whole country.