Providing credit of 1.8 billion USD for Component Project 3 to build Long Thanh Airport

Prime Minister Pham Minh Chinh attended the signing ceremony of a credit contract worth 1.8 billion USD for component project 3 of Long Thanh International Airport.

On the afternoon of June 1, in Hanoi, Prime Minister Pham Minh Chinh attended the signing ceremony of a credit contract worth 1.8 billion USD for the Component 3 project of Long Thanh International Airport. Also attending were Governor of the State Bank of Vietnam Nguyen Thi Hong, Minister of Finance Ho Duc Phoc, Secretary of the Party Committee of the Central Enterprises Bloc Nguyen Long Hai, and leaders of ministries, sectors, and central agencies.

The event was organized by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) - the capital arranger, together with the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), the Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV ) and the Airports Corporation of Vietnam (ACV).

Accordingly, banks will provide credit of 1.8 billion USD for component project 3 (essential works in the airport) of the Long Thanh International Airport construction investment project - phase 1 invested by ACV. Of which, Vietcombank will finance 1 billion USD, VietinBank will finance 450 million USD, BIDV will finance 350 million USD.

Previously, at the end of November 2022, the State Bank of Vietnam issued a document approving Vietcombank, VietinBank, and BIDV to lend medium- and long-term foreign currency to ACV to implement the project.

Speaking at the event, Prime Minister Pham Minh Chinh stated that the Party and State have identified the construction of a synchronous and modern infrastructure system as one of the three strategic breakthroughs for the country’s development and modernization. In particular, focusing on the development of the transport infrastructure system (highway system, airports, etc.) is an important pillar, creating new development space, a driving force for socio-economic development, ensuring national defense and security, promoting foreign affairs and international integration.

Practice has proven that the transport infrastructure system plays a pioneering role, leading and bringing practical results to socio-economic development in recent times. Wherever transport develops, it will open up new development space, creating new driving forces, new potentials, new values ​​and new momentum.

Prime Minister Pham Minh Chinh speaks at the event

More specifically, transport infrastructure will create momentum for the formation of urban areas, industrial parks, services, and tourism; promote the effective exploitation of land funds with higher added value, reduce logistics costs, reduce input costs for production and business, enhance product competitiveness; create favorable conditions for easier travel and trade, save time and costs, promote attracting investors, international tourists, and people-to-people exchanges.

The Prime Minister emphasized that the Long Thanh International Airport construction project is an important national project, a key project of the transport sector, a special-level project, of strategic significance to the socio-economic development of the Southern key economic region, as well as to the development of Vietnam's aviation industry and the socio-economic development of our country in the coming years.

The project was approved by the National Assembly in 2015 with the goal of building Long Thanh airport into an important international airport, the largest in Vietnam with an area of ​​over 5,000 hectares, the largest in Vietnam, with an operating capacity of 100 million passengers and 5 million tons of cargo/year, applying advanced and modern technologies in management and operation. The Long Thanh International Airport project is forecast to create 200,000 jobs and contribute 0.98% to Vietnam's GDP by 2030.

Together with Tan Son Nhat International Airport (expanded) and Bien Hoa Airport (under study for upgrading and civil exploitation), Long Thanh International Airport will form a modern international airport cluster with large scale and capacity, synchronous and quality exploitation capacity, becoming a leading regional and international aviation and logistics hub.

In 2020, the Prime Minister approved the investment decision for phase 1 of the Long Thanh International Airport project with a scale of 1 runway, 1 passenger terminal, a transport capacity of 25 million passengers and 1.2 million tons of cargo/year.

In particular, ACV was assigned as the investor of component project 3 - "essential works in the airport" - a particularly important component, with a large scale and the most complex technical nature for the entire phase 1 of the Long Thanh International Airport construction project.

The total estimated investment for the entire Long Thanh airport is more than 16 billion USD, divided into 3 phases. The total investment for phase 1 is more than 5.4 billion USD, of which component project 3 has a loan demand as of December 13, 2023 of 1.8 billion USD (33%).

On behalf of the Government, the Prime Minister warmly welcomed and commended the active efforts of Vietcombank, Vietinbank, BIDV, and the close monitoring and coordination of the State Bank of Vietnam, which quickly helped arrange a large amount of funding of 1.8 billion USD to promptly support the investor ACV in signing construction contracts with contractors, meeting the project implementation schedule as required and directed by the Prime Minister.

The Prime Minister assessed that the provision of a credit of 1.8 billion USD represents a breakthrough development of domestic commercial banks in arranging foreign currency capital for customers.

Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the signing ceremony

This is the project with the largest total funding amount, especially in foreign currency, ever by Vietnamese commercial banks, specifically by State-owned commercial banks.

This is also the first project to be fully financed with medium and long-term USD loans from Vietnamese commercial banks, with more competitive conditions than the option of borrowing directly from international financial institutions.

Along with contributing to promoting safe and sustainable credit growth, the funding of 1.8 billion USD for a large project such as Long Thanh Airport is a clear demonstration of the position and strength of Vietnamese commercial banks in arranging capital for complex and large-scale projects. At the same time, it creates a new positive precedent to encourage and promote the initiative of domestic investors not to depend on foreign loans in the future.

This also contributes to implementing the Party and State's policy of promoting the spirit of self-reliance and self-improvement, taking internal resources as the fundamental, strategic, long-term and decisive factor for building and developing the country, the Prime Minister assessed.

On this occasion, the Prime Minister commended the efforts and determination of ACV and related entities, congratulated the positive results in the construction of Long Thanh airport in recent times and the inauguration of many other airports, such as Phu Bai and Dien Bien.

However, the Prime Minister stated that this is only an initial result, although it is commendable and encouraging. In the coming time, the Prime Minister assigned the Ministry of Transport, the State Bank, the Ministry of Finance, the Ministry of Planning and Investment, the State Capital Management Committee at Enterprises, and relevant ministries and agencies to: Focus on implementing the following 5 important tasks and solutions:

Firstly, further focus resources on developing strategic transport infrastructure projects, especially highways, high-speed railways, airports, and ports, contributing to increasing investment attraction and creating new production capacity for the economy.

Second, mobilize and use all legal capital sources for strategic infrastructure projects, including investment capital from the State budget, social investment capital, the private sector, public-private partnership, foreign investment, etc. In particular, it is necessary to mobilize more effectively the remaining large capital source from the people for production and business development, serving socio-economic development goals.

Third, review, have appropriate mechanisms and policies, support, promote and encourage commercial banks and credit institutions to lend capital with preferential and appropriate conditions, focusing credit capital on developing infrastructure, production and business, priority areas...

Fourth, continue to expand the form of capital financing, promote the role of commercial banks, in which the core is the State commercial bank lending capital to large projects, playing an important role in the economy, contributing to proactively mobilizing domestic resources and capital, reducing dependence on external capital sources.

Fifth , focus on effective, systematic management of projects associated with sponsored and lent capital, ensuring the promotion of the role and responsibility of investors and sponsors and lenders, ensuring both the quality and efficiency of projects and helping commercial banks recover both principal and interest, minimizing risks, fighting corruption, negativity and waste in borrowing and using capital, thereby implementing the motto "working together, winning together, enjoying together, developing together", contributing to building a strong, prosperous country, happy and prosperous people.

Regarding Long Thanh International Airport, the Prime Minister requested relevant parties to continue to uphold their sense of responsibility, further promote the determination to "only discuss and do, not retreat"https://dangcongsan.vn/thoi-su/, "say and do"https://dangcongsan.vn/thoi-su/, "overcome the sun and overcome the rain"https://dangcongsan.vn/thoi-su/, "3 shifts, 4 shifts"https://dangcongsan.vn/thoi-su/, "eat and sleep quickly"https://dangcongsan.vn/thoi-su/, "work through holidays and Tet" to speed up construction progress, improve the quality of completion of works and items of the project, meet and exceed the set goals and targets.

Emphasizing some specific tasks for the Investor ACV and the State Capital Management Committee at Enterprises, the Prime Minister requested ACV to continue to coordinate and accompany the joint-capital banks to implement the Long Thanh International Airport project to meet the loan commitment, effectively disburse on schedule and ensure quality. In particular, special attention should be paid to the coordination of progress and completion time of the remaining packages to avoid conflicts and intersections during the construction process, ensuring the connectivity and progress of the entire project.

Along with that, promptly research and propose plans to implement preparations for the construction of phase 2 so as not to affect the exploitation activities of phase 1, on the basis of adjusting the investment policy of the phase 1 project.

The Prime Minister requested the State Bank to direct State-owned commercial banks in particular and the banking sector in general to continue researching and participating in arranging capital for important national projects; encourage domestic investors to promote a proactive spirit, enhance autonomy and endogenous capacity in investment and development cooperation.

The State Bank shall facilitate credit institutions to provide foreign exchange services in accordance with the provisions of law; at the same time, it shall inspect and supervise foreign exchange activities to stabilize the value of currency and exchange rates and improve the international balance of payments, contributing to strengthening macroeconomic stability and promoting socio-economic development.

The Prime Minister directed the Ministry of Transport to be responsible for overall coordination, discipline and implementation in updating, monitoring progress and connecting all component projects of Long Thanh airport. In particular, it is important to ensure the overall nature and connection of the component projects with the infrastructure construction packages connecting Long Thanh International Airport with provinces and cities.

The Ministry of Transport is also assigned to preside over and direct the selection of investors for component project 4 "Other works", ensuring that the Long Thanh project phase 1 is put into operation on schedule as committed. Early report on the implementation of the investment policy for the construction of resettlement areas serving the Long Thanh Airport project; study and propose adjustments to the investment policy for the project phase 1 to effectively utilize resources in preparation for the implementation of the construction phase 2 of the Port.

For the People's Committee of Dong Nai province, the Prime Minister requested to speed up the progress of site clearance to complete the handover of the site; must commit not to delay the construction progress of the project.

In particular, it is necessary to urge the completion of site clearance and relocation of technical infrastructure for 02 connecting traffic routes and 02 drainage routes outside the project boundary, in which connecting traffic route No. 1 is the main route to ensure the transportation of goods, materials, and construction equipment serving the construction of the Passenger Terminal and other construction items.

Along with that, strengthen direct work with people, carry out well mass mobilization work to grasp their aspirations, flexibly and effectively apply legal regulations to resolve complaints and recommendations; select locations and build resettlement areas with better living conditions and at least equal to the old place of residence; ensure legitimate and legal rights and interests, take care of people's lives, create stable livelihoods for people after giving up land, houses, and fields to build projects.

Coordinate with investors to prioritize site clearance at locations that are critical to construction progress (such as weak soil treatment areas, large bridge and tunnel projects, and construction access road areas).

Support and coordinate businesses in the process of surveying, researching, proposing investment in the construction of upstream warehouses and pipelines for supplying aviation fuel, providing construction materials, training and recruiting human resources to meet management and operational needs.

The Prime Minister hopes and believes that, with the determination, intelligence, solidarity and innovation of the Investor ACV and the joint venture of contractors for the Long Thanh International Airport project, together with the support and close coordination of the State Bank of Vietnam, the State Capital Management Committee at Enterprises, the Ministry of Transport, the Ministry of Planning and Investment, the Ministry of Finance, the People's Committee of Dong Nai province and relevant agencies, we will definitely complete the construction and technical exploitation of the runway of Long Thanh airport before April 30, 2025 (3 months ahead of schedule compared to the contract), making excellent achievements to celebrate the 50th anniversary of the liberation of the South and national reunification (April 30, 1975 - April 30, 2025), and focus on completing, handing over and putting into operation the entire Long Thanh International Airport project in the first 6 months of 2026. At the same time, ensure quality, technique, aesthetics, labor safety, environmental sanitation and care for the lives of officers, workers and laborers participating in the project.

The Prime Minister highly appreciated the recent successful capital arrangement coordination of three banks Vietcombank, Vietinbank and BIDV for the project and believed that this would be a positive first step, creating an important premise to encourage Vietnamese commercial banks to continue to proactively cooperate in large, important national projects, contributing to enhancing the prestige and position of the Vietnamese banking sector and further promoting the role of State-owned enterprises in the country's development./.

Source: https://dangcongsan.vn/thoi-su/cap-tin-dung-1-8-ty-usd-cho-du-an-thanh-phan-3-xay-dung-san-bay-long-thanh-666241.html