Proposal for the main investor of Phu Cat Airport Runway No. 2 Project

The project to build runway No. 2, connecting taxiways and other works in the airport area at Phu Cat - Binh Dinh site clearance has a total investment of about 3,013 billion VND.

Phu Cat Airport – Binh Dinh.

The Ministry of Transport has just sent an official dispatch to the Government leaders regarding the determination of the unit in charge of investing in the Project of constructing runway No. 2, Phu Cat Airport.

Accordingly, in view of the need to soon build runway No. 2 of Phu Cat Airport and in the context that the Ministry of Transport and Vietnam Airports Corporation (ACV) cannot balance capital for immediate investment in the 2021-2025 period, the Ministry of Transport supports the assignment of the People's Committee of Binh Dinh province to organize the investment in the construction of runway No. 2 and other works in the airport area.

Specifically, the Ministry of Transport proposed that the Prime Minister and Deputy Prime Minister Tran Hong Ha consider assigning the People's Committee of Binh Dinh province as the managing agency for the investment project to build runway No. 2 and synchronous works at the airport area of Phu Cat Airport; complete procedures, submit to competent authorities for consideration and approval of the investment policy according to regulations.

The Ministry of Transport proposed that the use of local budget by the People's Committee of Binh Dinh province be implemented according to regulations after the Law amending and supplementing a number of articles of the Law amending and supplementing a number of articles of the Law on Securities; Law on Accounting; Law on Independent Audit; Law on State Budget; Law on Management and Use of Public Assets; Law on Tax Management; Law on National Reserves are passed by the National Assembly.

The Government assigned the Ministry of Transport, Ministry of National Defense, Ministry of Planning and Investment, and Ministry of Finance to guide and support Binh Dinh Provincial People's Committee in the implementation process according to their functions and tasks.

Previously, the Ministry of Transport had developed two investment plans to build runway number 2 of Phu Cat Airport.

Specifically, option 1 - Phu Cat Airport Enterprise organizes the investment. Because ACV is currently the Phu Cat Airport Enterprise, responsible for investing in the construction of runway 2 according to the approved plan.

However, ACV said that this unit is focusing its capital to invest in large, key projects in the aviation industry such as the Long Thanh International Airport Construction Project Phase 1; Tan Son Nhat International Airport Terminal T3 Construction Project; Noi Bai International Airport Terminal T2 Expansion Project; At the same time, ACV has been and is carrying out the task of investing in upgrading other airports such as Dien Bien, Cat Bi, Dong Hoi, Ca Mau, etc., so it cannot balance its capital to implement the Project of constructing runway No. 2, Phu Cat Airport in this period.

The second option is that the state directly invests in the project to build runway No. 2 at Phu Cat Airport.

In the case of direct State investment, the Ministry of Transport said that the law on civil aviation does not specifically stipulate the investment responsibility of the central or local budget.

Therefore, in case the Ministry of Transport organizes the implementation of the investment in the Medium-term Public Investment Plan for the period 2021-2025, the central budget allocated by the competent authority to the Ministry of Transport will be prioritized to develop key national transport projects according to the 10-year Socio-Economic Development Strategy 2021-2030 and the Resolutions of the National Assembly.

Therefore, the Ministry of Transport is currently unable to balance capital to invest in the Project at this stage.

Meanwhile, Binh Dinh Provincial People's Committee is ready to allocate about 1,513 billion VND (of which about 1,008 billion VND is for site clearance) to invest in the Project right at this stage.

Regarding the proposal to support about 1,500 billion VND from the central budget, the Ministry of Planning and Investment said that currently, the competent authority has not yet issued principles, criteria, norms and announced the total expected public investment capital, so there is no basis for considering and reporting to the competent authority to support a part of the construction investment costs for the People's Committee of Binh Dinh province to carry out the investment.

However, in case the Project is approved by the competent authority for investment policy in the period 2021-2025 and the implementation period is extended to the period 2026-2030, capital will continue to be allocated according to the provisions of Clause 1, Article 52 of the Law on Public Investment (transitional projects in the list of the medium-term public investment plan of the previous period), ensuring the principles according to the provisions of Clause 2, Article 89 of the Law on Public Investment.

Regarding the regulations on the use of local budget capital to implement the Project, according to the Ministry of Finance, the amended State Budget Law is currently being submitted to the National Assembly for consideration, comments and approval at the 8th Session of the 15th National Assembly in the direction of allowing the use of development investment capital of the local budget for investment projects to build infrastructure works of the direct superior budget in the area.

Therefore, the use of local budget by the People's Committee of Binh Dinh province is implemented according to the regulations after the Law amending and supplementing a number of articles of 7 Laws under the state management function of the Ministry of Finance was passed by the National Assembly, including: Securities Law; Accounting Law; Independent Audit Law; State Budget Law; Law on Management and Use of Public Assets; Tax Management Law; Law on National Reserves.

Previously, the People's Committee of Binh Dinh province submitted a proposal to the Government and the Prime Minister to approve the investment plan for Phu Cat Airport. The planned items include the construction of runway No. 2, connecting taxiways and other works in the airport area; construction and relocation of military works to hand over land for the expansion of the civil aviation area; and construction of the civil aviation area.

In the immediate phase, it is allowed to immediately invest in the construction of runway No. 2, connecting taxiways and other works in the airport area, with a total investment of about 3,013 billion VND (compensation and site clearance value of about 1,008 billion VND), to meet the socio-economic development needs of the locality.

The People's Committee of Binh Dinh province proposed that the Government consider submitting to the National Assembly for approval a special mechanism to assign the People's Committee of Binh Dinh province to organize the investment in the construction of runway No. 2 and other works in the airport area from the budget capital managed by the province (including central support capital of about 1,500 billion VND).

Source: https://baodautu.vn/de-xuat-dau-moi-chu-quan-dau-tu-du-an-duong-bang-so-2-san-bay-phu-cat-d229944.html