Socialization and investment in upgrading Tho Xuan Airport under PPP form

According to the Ministry of Construction, the mobilization of social capital to invest in and exploit airports based on the needs of localities will be carried out in accordance with current laws on investment under the PPP method and related regulations.

Tho Xuan Airport is oriented to become an international airport.

Specifically, in Decision No. 1121/QD-TTg dated September 22, 2022, the Prime Minister assigned a number of localities to develop a project to socialize investment and exploitation of airports within their localities, including Tho Xuan Airport.

In that spirit, the leaders of the Ministry of Construction recognized that mobilizing social capital to invest in and exploit airports based on the needs of localities will be carried out in accordance with current laws on investment under the PPP method and related regulations.

Therefore, the Ministry of Construction requested the People's Committee of Thanh Hoa province to study the provisions of the law on PPP investment to implement the procedures to report to the Prime Minister to assign Thanh Hoa province as the competent authority to invest in the project according to the provisions of the Law on Investment under the PPP method.

Thanh Hoa Provincial People's Committee synthesizes the researched contents in the project on socialization of investment and exploitation of Tho Xuan Airport to include in the pre-feasibility study report and submit for approval of investment policy according to regulations.

To include the researched contents of the project in the Feasibility Study Report, the Ministry of Construction requested the People's Committee of Thanh Hoa province to direct the units to research and update the contents stipulated in the draft Decree regulating the management, use and exploitation of aviation infrastructure assets and the promulgation progress for review and adjustment.

Thanh Hoa province reviews the use of public assets to participate in investment projects under the PPP method because according to regulations, state capital to support construction of works and infrastructure systems is arranged from public investment capital sources according to the provisions of the law on public investment.

Regarding the exploitation of works in the shared airport area managed by the Ministry of National Defense, the Ministry of Construction proposed that the People's Committee of Thanh Hoa province coordinate with the Ministry of National Defense to study and report to competent authorities to remove shared infrastructure works from the list of special assets and determine their nature as dual-use works according to the provisions of law on management and protection of defense works and military zones so that investors and airport enterprises can exploit and use them together.

Regarding the plan to handle the existing assets of Tho Xuan Airport Enterprise (Vietnam Airports Corporation - ACV), Thanh Hoa Provincial People's Committee coordinated with ACV to work on the proposed content of allowing the transfer and sale of fixed assets according to the provisions of law on management and use of State capital invested in production and business at enterprises; research and supplement proposals on the mechanism in which the new investor needs to take advantage of ACV's existing apparatus to ensure the continuous operation of Tho Xuan Airport.

Tho Xuan Airport is a dual-use military and civil airport, located in Tho Xuan district, Thanh Hoa province, about 35 km west of Thanh Hoa city. In terms of civil aviation, Tho Xuan Airport has been put into civil operation since 2013, invested and operated by ACV. Since its operation, the airport has always maintained a high growth rate.

According to the master plan for the development of the national airport system in the period of 2021-2030, with a vision to 2050, and the planning of Tho Xuan Airport in the period of 2021-2030, with a vision to 2050, Tho Xuan Airport will be an international airport meeting level 4E standards with a design capacity of 5 million passengers/year.

Source: https://vov.vn/kinh-te/xa-hoi-hoa-dau-tu-nang-cap-cang-hang-khong-tho-xuan-theo-hinh-thuc-ppp-post1163711.vov