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On October 21st, Deputy Prime Minister Le Van Thanh, acting on behalf of Prime Minister Pham Minh Chinh, signed a decision on the investment policy for the construction of Sa Pa Airport (Lao Cai province). The project will be divided into two investment phases, with an estimated land area of 371 hectares (phase 1: 295.2 hectares and phase 2: 75.8 hectares).
Phase 1, implemented from 2021, includes the construction of Sa Pa Airport to meet the standards of a 4C-class airport (according to the International Civil Aviation Organization - ICAO standards) and a Class II military airport, with a capacity of 1.5 million passengers per year.
Phase 2 of the construction and investment, starting in 2028, will complete the items to increase capacity to 3 million passengers per year.
The projected view of Sa Pa airport.
According to the Prime Minister's decision, the investment, construction, and operation period for the Sa Pa airport project is 50 years, including an estimated 4 years for construction and 46 years for operation, exploitation, and capital recovery.
Because the investment is in the form of a public-private partnership (PPP), the entire project will be divided into two component projects: a land clearance project funded by public investment and an airport construction project using the PPP method, specifically a BOT contract.
The estimated total investment for this project is VND 6,948 billion, of which phase 1 accounts for 60% (VND 4,183 billion); the remaining 40% is in phase 2, VND 2,765 billion. The State will contribute approximately VND 2,730 billion to this project in the areas of land clearance, resettlement, infrastructure construction support, etc. The remaining VND 4,218 billion will be raised by the investor.
Previously, according to the approved plan, Sa Pa domestic airport had a capacity of 3 million passengers per year, capable of accommodating aircraft equivalent to Airbus A320 and Boeing 737. The airport had a two-level passenger terminal. To the south, there was reserved land for the construction of an additional passenger terminal in the period after 2030.
By mid-2020, the People's Committee of Lao Cai province requested the Government to consider approving the investment policy for the Sa Pa airport project under the PPP (Public-Private Partnership) model. The Ministry of Planning and Investment subsequently assessed the pre-feasibility study of this project.
