Hai Phong claims $77 million shortfall from state budget to cover airport upgrade

By Thanh Thanh Lan   May 4, 2016 | 06:07 pm GMT+7

The northern city of Hai Phong has sent a request to the Ministry of Finance to claim back more than VND1.7 trillion (about $77 million) that was invested in Cat Bi International Airport.

The investment plan approved by former Prime Minister Nguyen Tan Dung outlined that the state budget would allocate VND2.9 trillion ($130 million) to expand the airport. However, the government has only released 27 percent of the sum (VND800 billion).

To ensure construction ran according to schedule, Hai Phong allocated VND1.7 trillion (S76.5 million) from bonds and its municipal budget. The city said the Ministry of Finance should make up the sum by returning revenue that exceeded the city's import-export target.

The project to expand Cat Bi International Airport was launched in January last year and is scheduled for completion on May 12 this year with total investment of VND3.6 trillion ($164.6 billion). So far, 96 percent of the project has been completed.