Proposal for the lead agency to manage investment in the Phu Cat Airport Runway No. 2 Project.
The project to construct runway number 2, connecting taxiways, and other airfield facilities in the Phu Cat - Binh Dinh area has a total investment of approximately 3,013 billion VND.
| Phu Cat Airport – Binh Dinh Province. |
The Ministry of Transport has recently sent a document to the Government leaders regarding the identification of the managing entity for the investment in the construction of runway number 2 at Phu Cat Airport.
Accordingly, given the urgent need to construct the second runway at Phu Cat Airport and the fact that the Ministry of Transport and the Airports Corporation of Vietnam (ACV) are unable to allocate funds for immediate investment during the 2021-2025 period, the Ministry of Transport supports assigning the People's Committee of Binh Dinh province to organize the investment and construction of the second runway and other facilities in the airfield area.
Specifically, the Ministry of Transport proposed that the Prime Minister and Deputy Prime Minister Tran Hong Ha consider assigning the People's Committee of Binh Dinh province as the managing agency for the investment project to build runway No. 2 and synchronous works at the airport area of Phu Cat Airport; complete procedures, submit to competent authorities for consideration and approval of the investment policy according to regulations.
The Ministry of Transport proposes that the use of local budget funds by the People's Committee of Binh Dinh province be implemented according to regulations after the National Assembly approves the Law amending and supplementing a number of articles of the Law on Securities; the Law on Accounting; the Law on Independent Auditing; the Law on State Budget; the Law on Management and Use of Public Assets; the Law on Tax Management; and the Law on National Reserves .
The Government assigns the Ministry of Transport, the Ministry of National Defence, the Ministry of Planning and Investment, and the Ministry of Finance, according to their functions and duties, to guide and support the People's Committee of Binh Dinh province in the implementation process.
Previously, the Ministry of Transport had developed two investment options for the construction of the second runway at Phu Cat Airport.
Specifically, Option 1 – Phu Cat Airport Enterprise will organize and implement the investment. Since ACV is currently the Phu Cat Airport Enterprise, it is responsible for investing in and constructing runway number 2 according to the approved plan.
However, ACV stated that it is focusing its capital on investing in major, key aviation projects such as the Long Thanh International Airport construction project (Phase 1); the Tan Son Nhat International Airport Terminal 3 construction project; the Noi Bai International Airport Terminal 2 expansion project; and ACV has been and is currently investing in upgrading other airports such as Dien Bien, Cat Bi, Dong Hoi, and Ca Mau… Therefore, it cannot balance the capital to implement the construction of the second runway at Phu Cat Airport at this time.
The second option is for the state to directly invest in the construction of the second runway at Phu Cat Airport.
Regarding cases where the State directly invests, the Ministry of Transport stated that the law on civil aviation does not specifically stipulate the investment responsibility of the central or local budgets.
Therefore, in the case of the Ministry of Transport implementing the medium-term public investment plan for the period 2021-2025, the central government budget allocated to the Ministry of Transport by competent authorities should prioritize the development of key national transport projects in accordance with the 10-year socio-economic development strategy 2021-2030 and the Resolutions of the National Assembly.
Therefore, the Ministry of Transport currently lacks the funds to invest in the project at this stage.
Meanwhile, the People's Committee of Binh Dinh province has prepared to allocate approximately 1,513 billion VND (of which about 1,008 billion VND is for land clearance) to invest in the project right now.
Regarding the proposal for approximately 1,500 billion VND in support from the central budget, the Ministry of Planning and Investment stated that currently, the competent authorities have not yet issued principles, criteria, norms, and announced the total amount of projected public investment capital. Therefore, there is no basis for considering and reporting to the competent authorities to provide partial funding for the construction investment to the People's Committee of Binh Dinh province.
However, in cases where the project receives investment approval from the competent authority during the 2021-2025 period and extends its implementation to the 2026-2030 period, it will continue to be allocated capital in accordance with Clause 1, Article 52 of the Law on Public Investment (transitional projects included in the list of the previous medium-term public investment plan), ensuring compliance with the principles stipulated in Clause 2, Article 89 of the Law on Public Investment.
Regarding regulations on the use of local budget funds to implement the Project, according to the Ministry of Finance, the revised State Budget Law is currently being submitted to the National Assembly for consideration and approval at the 8th Session of the 15th National Assembly. This amendment allows the use of development investment funds from the local budget for infrastructure construction projects funded by the higher-level budget within the locality.
Therefore, the use of local budget by the People's Committee of Binh Dinh province is carried out according to regulations after the Law amending and supplementing a number of articles of 7 Laws under the state management functions of the Ministry of Finance was passed by the National Assembly, including: the Securities Law; the Accounting Law; the Independent Auditing Law; the State Budget Law; the Law on Management and Use of Public Assets; the Tax Management Law; and the National Reserve Law.
Previously, the People's Committee of Binh Dinh province submitted a proposal to the Government and the Prime Minister requesting approval of the investment plan for Phu Cat Airport. The planned projects include the construction of a second runway, connecting taxiways, and other facilities within the airfield; the relocation of military facilities to free up land for the expansion of the civil aviation area; and the construction of the civil aviation area itself.
In the immediate future, investment will be allowed to proceed with the construction of the second runway, connecting taxiways, and other facilities within the airfield, with a total investment of approximately 3,013 billion VND (including approximately 1,008 billion VND for compensation and land clearance), in order to meet the socio-economic development needs of the locality.
The People's Committee of Binh Dinh province has requested the Government to consider submitting to the National Assembly a special mechanism to entrust the People's Committee of Binh Dinh province with the responsibility of organizing the investment and construction of runway No. 2 and other facilities in the airfield area using provincial budget funds (including approximately 1,500 billion VND in central government support).






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