Hanoi (VNS/VNA) - TheGovernment has the right to choose an investor for the Long Thanh InternationalAirport project in the southern province of Dong Nai, according to the NationalAssembly (NA) Standing Committee.

The decision followed recent heated debateat an NA meeting over the Government’s preferred investor for the project, asthe firm will have to borrow billions of dollars to build the airport.

The NA Standing Committee, in its reportsent to NA deputies last weekend, noted that, under the Bidding Law, investorselection is under the jurisdiction of the Government, but it said that theGovernment should ensure that its chosen investor abide by principles ofnational defence and security, national interests and financial efficiency.

In addition, the airport investment mustnot exceed 336.63 trillion VND (16 billion USD) at the time of approval by theNA, the committee said.

The NA Standing Committee has demanded the Governmentspeed up land clearance for the huge project, saying that the current processwas too slow and that land for construction would not be available by the endof next year.

As authorised by the PM, Minister ofTransport Nguyen Van The had submitted a feasibility report in the first phaseof the airport at a cost of 111 trillion VND to the NA.

The feasibility report said the Governmenthad proposed naming the State-owned Airports Corporation of Vietnam (ACV) asthe main investor, but lawmakers expressed concern over the ACV’s financialcapability to pay for the project, which could cost up to 16 billion USD.

According to a feasibility study, the ACV,which runs 21 airports nationwide, will invest in the first runway, taxiways, aterminal, an aircraft parking space, and other major infrastructure at theairport.

The ACV will need to raise about 98trillion VND for the project. It is expected to have 36.6 trillion VND (1.57billion USD) by 2025, or 37 percent of the investment. The ACV has been workingwith 12 domestic and international organisations to borrow the remaining at aninterest rate of 5-5.5 percent a year with a loan term of 15 years.

In addition, the Government has alsoproposed naming the Vietnam Air Traffic Management Corp (VATM) as the investorin the control tower and other safety features. The VATM would need to raise anestimated 3.22 trillion VND for the purpose.

The VATM has 2.12 trillion VND, or 66 percent,of the needed money. The VATM would borrow the rest from local credit institutionswith an interest rate of 11 percent a year.

The Long Thanh airport was approved by theNA four years ago, but funding has remained a big question, even asconstruction of the first phase is set to start next year. To be built in threephases over three decades, it is expected to become the country’s largestairport.

The first phase is scheduled for completionin 2025, with a capacity of 25 million passengers a year. The next two phaseswould run from 2030 to 2035 and from 2040 to 2050. Once completed, it wouldhave an annual capacity of 100 million passengers and five million tonnes ofcargo.

Located 40km to the east of HCM City, theLong Thanh airport is expected to relieve overloading at Tan Son NhatInternational Airport in HCM City, the country’s largest airport./.