Binh Thuan Provincial People’s Committee and Rang Dong Joint Stock Company have signed an agreement to terminate the BOT contract for the Phan Thiet airport project ahead of schedule. Currently, Binh Thuan province is waiting for the Prime Minister to approve the adjustment of the investment policy to carry out procedures for preparing, submitting for appraisal, approving the project feasibility study report, and organizing the selection of new investors according to regulations.
On October 29, at the October press conference organized by the Propaganda Department of Binh Thuan Provincial Party Committee, Mr. Huynh Ngoc Thanh – Deputy Director of the Department of Transport of Binh Thuan province – informed about the latest progress of the implementation of the Phan Thiet airport project, civil aviation category under the form of BOT contract.
Terminated from July 2023
Phan Thiet airport project was approved by the Ministry of Transport in Decision No. 3216/QD-BGTVT dated October 16, 2013 as a civil and military airport. The planned airport level is a 4C civil airport.
On September 18, 2014, the Government Office issued an official dispatch, notifying the Prime Minister’s opinion of agreeing to the investment policy of Phan Thiet civil airport under the form of build – operate – transfer (BOT contract)
On that basis, the People’s Committee of Binh Thuan province has organized the implementation of investment procedures, selected investors according to regulations and approved the results of selecting the investor to implement the project, which is Rang Dong Joint Stock Company.
During the implementation process, to ensure long-term development, exploit international routes, improve investment efficiency, and exploit the airport, with the permission of the Prime Minister, the People’s Committee of Binh Thuan province, the Ministry of National Defense, Rang Dong Joint Stock Company has adjusted the planning.
On February 23, 2018, the Prime Minister signed Decision No. 236/QD-TTg approving the adjustment of the planning for the development of aviation transport for the period up to 2020, with a vision to 2030. The Ministry of Transport also approved the adjustment of the detailed planning of Phan Thiet airport for the period up to 2020, with a vision to 2030 in Decision No. 1925/QD-BGTVT dated August 29, 2018.
Accordingly, Phan Thiet airport is planned as a level 4E domestic airport with the role of a shared civil and military airport, with a 3,050 m long runway, a passenger terminal with a designed capacity of 2 million passengers/year.
Due to the adjustment of the project scale from a level 4C airport to a level 4E airport, increasing the total investment, it is necessary to adjust the investment policy according to the provisions of the Law on Investment under the public-private partnership method No. 64/2020/QH14 dated June 18, 2020 (PPP Law).
Previously, the People’s Committee of Binh Thuan province and Rang Dong Joint Stock Company signed a BOT contract for the investment project to construct Phan Thiet airport, civil aviation item No. 2741/HD.BOT-UBND on September 20, 2016. However, due to the adjustment of the airport planning from level 4C to level 4E, the investment scale and total investment of the project have changed compared to the feasibility study report approved by the People’s Committee of Binh Thuan province in Decision No. 4236/QD-UBND dated December 29, 2014 and the signed project contract.
Based on the terms of the project contract, the actual situation of project implementation and legal regulations, on July 17, 2023, Binh Thuan Provincial People’s Committee and Rang Dong Joint Stock Company signed a document agreeing to terminate the project contract ahead of schedule.
How to adjust the project?
Currently, based on the comments of the members of the Inter-sectoral Appraisal Council and Report No. 4823/BC-HDTĐLN dated June 20 of the Inter-sectoral Appraisal Council, the Department of Transport of Binh Thuan has coordinated with the consulting unit and relevant departments to complete the pre-feasibility study report of the Phan Thiet airport project, civil aviation project under the BOT contract form.
On September 20, the People’s Committee of Binh Thuan province submitted Document No. 3513/TTr-UBND to the Prime Minister on approving the adjustment of the investment policy and terminating the contract ahead of schedule for the Phan Thiet airport project, civil aviation project under the BOT contract form.
On October 7, the Government Office issued an official dispatch assigning the Ministry of Planning and Investment to preside over and coordinate with relevant agencies to review and comment on the content of the acceptance and explanation of the People’s Committee of Binh Thuan province, and advise the Prime Minister on the recommendations of the People’s Committee of the province in the submission No. 3513.
The People’s Committee of Binh Thuan province also issued an official dispatch dated October 25 to the Ministry of National Defense and the State Bank to seek opinions on the content of the explanation of the dossier for adjusting the investment policy of the Phan Thiet airport project, the civil aviation item under the form of a BOT contract.
Currently, the Ministry of Planning and Investment is presiding over and coordinating with relevant agencies to review and comment on the content of the acceptance and explanation of the People’s Committee of Binh Thuan province in the submission No. 3513 to report and advise the Prime Minister to consider adjusting the approval of the investment policy and terminating the contract before the deadline of the Phan Thiet airport project.
After the Prime Minister approves the adjustment of the investment policy, the Department of Transport shall organize the implementation of procedures for preparing, submitting for appraisal and approval of the project feasibility study report and coordinate with the Department of Planning and Investment to organize the selection of new investors according to regulations.
