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ACV shareholders approve Long Thanh airport construction

By Anh Tu   December 18, 2020 | 10:35 pm PT
ACV shareholders approve Long Thanh airport construction
An artist's impression of the Long Thanh International Airport in the southern province of Dong Nai. Photo courtesy of the Airports Corporation of Vietnam (ACV).
Shareholders of the Airports Corporation of Vietnam have approved construction of Long Thanh International Airport at a cost of over VND99 trillion ($$4.27 billion).

The airport operator received the green light from 99.8 percent of them for the first phase of the mega airport in the southern province of Dong Nai with VND36.1 trillion coming from its resources and the rest from loans without sovereign guarantees and other sources.

The management of the company, which runs 22 airports, has said it will augment capital and issue bonds to fund the project, revealing that some financial organizations have shown interest and are committed to investing $5-6 billion in the airport.

Analysts at Ho Chi Minh City securities company VNDirect said last month that ACV would have to raise VND60 trillion through loans and bonds in the next five years for the project, increasing its debt-equity ratio from 0.4 at the end of this year to 1.3 by 2025.

The government approved construction of the $4.6 billion first phase in November.

It includes a four-kilometer runway, taxiways and aprons and a 373,000-sq.m passenger terminal designed to handle 25 million passengers and 1.2 million tons of cargo a year.

The airport will be built in three phases by 2040 with four runways, four terminals and auxiliary facilities to handle 100 million passengers and five million tons of cargo annually.

It will be situated 40 kilometers east of HCMC.

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