Hanoi (VNS/VNA) - The Ministry of Transport (MoT) has proposed theGovernment allow the Airport Corporation of Vietnam (ACV) to invest in buildinga third passenger terminal at Tan Son Nhat International Airport in Ho Chi MinhCity.

Inthe proposal submitted to the Government recently, the MoT said theconstruction would be funded by the ACV.

Theinvestment funded by the ACV is one of four investment methods mentioned in theMoT proposal, which include investment funded by the State budget, establishingan economic organisation for investment and investment in the form ofpublic-private partnership (PPP).

Ofthe four methods, the ministry said it favoured the first one, which would assign theinvestment to the ACV in its entirety.

“TheACV is a State-owned enterprise which the State currently accounts 95.4 percentof the equity. It is also granted licence to exploit airports so that theallocation of investment projects with financial efficiency to preserve anddevelop State capital at the enterprise is necessary,” said Deputy Minister ofTransport Le Dinh Tho in the proposal.

Theministry said in order to ensure fairness and transparency, the ACV wouldconduct bidding procedures to select design consultants and constructioncontractors.

TheACV has demonstrated its capacity through important investment projects such asTerminal T2 at Noi Bai International Airport, Phu Quoc International Airport,the passenger terminal of Vinh International Airport, Tho Xuan Airport and CatBi passenger terminal.

TheACV has arranged enough capital to build terminal T3 at Tan Son Nhat Airportand if the proposal is approved, the ACV will immediately carry out the project,which is expected to be finished in three years.

Inthe document, the ministry also analysed other investment forms.

Investmentfunded by the State budget, the MoT said it was unfeasible because under theVietnam Civil Aviation Law and the Law on Public Investment, the MoT, whichrepresents the State, will implement investment when the capital is approved byNational Assembly and the Prime Minister, it said. However, the medium-termplan assigned for the ministry cannot balance the funding for this project.

Regardingestablishing an economic organisation for investment, the ministry said it usedthis method for passenger terminals projects at Da Nang and Cam Ranhinternational airports, however there are still disagreements on this method interms of legal basis, investment form, the selection of investors, landallocation and lease as well as benefits of the State and investors.

Inthe PPP form which selects investors through bidding, the ministry said thisensures fairness and transparency, creating opportunities for enterprises toparticipate in, thereby reducing investment costs and bringing benefits for theState and the society.

However,the ACV is currently managing the apron and passenger terminals T1 and T2 at theTan Son Nhat International Airport. Any new investor would have to be trainedand certified.

TheACV currently manages 21 airports across the country.-VNS/VNA