Seizing the Initiative: Expediting Handover of the Long Thanh Airport Project Site by July 15th

The Government Office has released a notice regarding the conclusions of Deputy Prime Minister Tran Hong Ha at the meeting of the Task Force for the Long Thanh International Airport Construction Investment Project, Phase 1.

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The Long Thanh International Airport project is making significant progress, with key components of the project under the management of the Vietnam Air Traffic Management Corporation (VATM) and the Airports Corporation of Vietnam (ACV) achieving and surpassing their contractual schedules. On behalf of the task force, the Deputy Prime Minister commended the efforts and dedication of the investors in ensuring the timely and quality implementation of the project packages.

However, there are delays in some components of Project Component 1, which falls under the responsibility of the Ministry of Agriculture and Rural Development. These delays are due to a lack of capital allocation and the absence of bidding for contractor selection. Additionally, Component Project 4 is progressing very slowly, and there is no feasible plan for bidding and selecting investors, posing a risk of missing the deadline and impacting the operations of the airport, resulting in wasteful investment costs.

To address these challenges, the Deputy Prime Minister has directed the functional units and relevant localities to focus on several key tasks in the coming time. Specifically:

On the project for land retrieval, compensation, support, and resettlement for Long Thanh International Airport:

The Deputy Prime Minister requested the People’s Committee of Dong Nai province to urgently complete land retrieval and site clearance for the remaining area, with a deadline of July 15, 2024.

The People’s Committee of Dong Nai province is also instructed to guide the Southern Aviation Authority in obtaining land allocation and land use rights certificates for the remaining area of phase 1.

Long Thanh International Airport model.

On the investment project for the construction of Long Thanh International Airport, phase 1:

For Component Project 1 (Headquarters of state management agencies): The Ministry of Transport is to coordinate with the Ministry of Agriculture and Rural Development, the People’s Committee of Dong Nai province, and relevant agencies to promptly invest in the construction of health quarantine stations and animal/plant quarantine stations with appropriate scales, ensuring compliance with planning and the functions of the works.

Regarding the works necessary for the operation of the airport, which are not yet included in the planning and approved investment project, the Ministry of Transport is requested to synthesize and report to the competent authority before July 15, 2024.

Component Project 4 (Other works): This component includes very important works for the airport, directly related to technical safety and operation. Especially, the investment in the aircraft maintenance and repair center must meet the requirements of technology, capacity, and governance in accordance with international standards.

The Prime Minister and the Deputy Prime Minister – Head of the Task Force have provided specific directions to address the difficulties faced by Component Project 4. However, the Ministry of Transport and the Vietnam Aviation Administration have not presented feasible solutions for selecting investors. The main reason for this delay is the limited capacity and experience of the staff, along with a lack of discipline in implementing the conclusions of the Prime Minister and Deputy Prime Minister. The Ministry of Transport bears full responsibility for the slow progress of Component Project 4, which affects the overall operation of the airport and the investment efficiency of the project.

The Task Force agreed to assign the Ministry of Transport to coordinate with relevant agencies and report to the Government at the nearest session on the implementation of Component Project 4, identifying challenges and proposing specific and feasible solutions. This includes recommending the engagement of international consultants with experience in large international airport projects to advise on the overall design and selection of investors for the works under Component Project 4.

The selection of international consultants should maximize the provisions of the Law on Bidding to ensure transparency and efficiency. The Ministry of Planning and Investment is to closely coordinate with the Ministry of Transport in the process of selecting international consultants, developing bidding documents for selecting investors, evaluating bids, and preparing a report for the Government.

The State Capital Management Committee at Enterprises directs ACV to consider using appropriate international consultants to support or coordinate with the overall consultants of Component Project 4 to ensure the synchronization and effectiveness of the entire project.

Regarding the selection of investors, the Deputy Prime Minister requested the completion of the invitation to bid within July 2024. The selection of investors for Component Project 4 should include criteria for dividing the production and business efficiency of investors according to a suitable ratio, considering the scale and development level of the airport through different phases.

For the investor providing aircraft maintenance and repair services: The investor must have international investment experience (prioritizing capacity, experience, and governance, while also considering the overall project). The development of evaluation criteria for investor selection should refer to data and surveys of investment and business efficiency at some major international airports, as well as ACV’s experience in investor selection.

Regarding the following items: Cargo Terminal 2, Express Cargo Terminal, Cargo Handling Warehouse (logistics area), Airport Hotel, and Airport City: The Ministry of Transport is to review the approved investment project and agree with the State Capital Management Committee at Enterprises on assigning ACV to take the lead in implementing the investment, reporting to the competent authority.

The Deputy Prime Minister requested the Ministry of Transport to promptly prepare a report for the Prime Minister on the overall progress of the project, including the construction commencement and completion schedules of the investors of Component Project 1 (headquarters of state agencies). The report should also propose procedures for transferring certain tasks to ACV, including suggesting adjustments to the Prime Minister’s decision approving the project (if necessary), with a deadline of July 15, 2024. Additionally, the report should clarify the reasons and responsibilities for the delays in Component Project 4 and propose urgent and feasible solutions for the immediate implementation of the following contents and tasks.

ACV is to assign capable and experienced officers in bidding to support the Vietnam Aviation Administration in organizing the bidding for selecting investors. ACV is also requested to promptly receive and implement the contents and tasks of Component Project 4 transferred by the Ministry of Transport.

The Deputy Prime Minister requested the Ministry of Transport, the State Capital Management Committee at Enterprises, the People’s Committee of Dong Nai province, relevant ministries and branches, and investors to seriously implement the directions of the Prime Minister and Deputy Prime Minister. They are urged to expedite the implementation of the components, ensuring safety and quality, and completing the works simultaneously to put them into operation, promoting the efficiency of the entire project.

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