Decision No. 1777/QD-TTg 2020 the first construction phase of the Long Thanh Airport project

DECISION

On approving the first construction phase of the Long Thanh International Airport project

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Vietnam Civil Aviation dated June 29, 2006 and the Law Amending and Supplementing a Number of Articles of the Vietnam Civil Aviation Law dated November 21, 2014;

Pursuant to the Law on Environmental Protection dated June 23, 2014;

Pursuant to the Land Law dated November 29, 2013;

Pursuant to the National Assembly s Resolutions: No. 94/2015/QH13 dated June 25, 2015, on the policy on investment in the Long Thanh International Airport project; No. 38/2017/QH14 dated June 19, 2017, on separating compensation, site clearance and resettlement from Long Thanh International Airport project as sub-projects; No. 53/2017/QH14 dated November 24, 2017, on the feasibility study report of the project on land recovery, compensation, support and resettlement for Long Thanh International Airport; and No. 95/2019/QH14 dated November 26, 2019, on the feasibility study report for the investment project to build Long Thanh International Airport, phase 1;

Pursuant to the Government’s Decrees: No. 102/2015/ND-CP dated October 20, 2015, on management and operation of airports and airfields; No. 131/2015/ND-CP dated December 25, 2016, on providing guidance on national important projects; No. 59/2015/ND-CP dated June 18, 2015, on management of construction investment projects, and No. 42/2017/ND-CP dated April 05, 2017 on amending and supplementing a number of articles of the Government’s Decree No. 59/2015/ND-CP; No. 138/2016/ND-CP dated October 01, 2016, on promulgating the Working Regulation of the Government; No. 68/2019/ND-CP dated August 14, 2019, on the management of construction investment costs;

Pursuant to the Resolution No. 07/NQ-CP dated February 03, 2020, on the feasibility study report for the investment project to build Long Thanh International Airport, phase 1;

Pursuant to the Prime Minister’s Decisions: No. 909/QD-TTg dated June 14, 2011, on approving the plan of Long Thanh International Airport; No. 236/QD-TTg dated February 23, 2018, on approving the adjusted planning for development of air transport by 2020 and the orientation towards 2030; No. 1487/QD-TTg dated November 06, 2018, on approving the feasibility study report of the project on land recovery, compensation, support and resettlement for Long Thanh International Airport;

Pursuant to the Ministry of Transport’s Report No. 6525/TTr-BGTVT dated July 12, 2019, on the feasibility study report for the investment project to build Long Thanh International Airport, phase 1 and relevant documents;

According to the State Appraisal Council’s opinions at the Report No. 6359/BC-HDTDNN dated September 25, 2020, on the appraisal result of the feasibility study report for the investment project to build Long Thanh International Airport, phase 1 and the Ministry of Planning and Investment’s proposal at the Official Dispatch No. 7066/BKHDT-GSTDDT dated October 26, 2020, on clarifying a number of appraisal contents of the feasibility study report for the investment project to build Long Thanh International Airport, phase 1.

DECIDES:

Article 1.To approve the first construction phase of the Long Thanh International Airport project with the main contents as follows:

1. Project’s name: The first construction phase of the Long Thanh International Airport project.

2. Division of sub-projects: The first construction phase of the Long Thanh International Airport project is divided into 04 sub-projects, including: (1) Sub-project 1 - Constructions of state management agencies’ head offices; (2) - Sub-project 2 - Constructions in service of flight control; (3) Sub-project 3 - Essential constructions in an airport; (4) Sub-project 4 - Other constructions.

3. Project owner:

Sub-project 1 - Constructions of state management agencies’ head offices: Relevant state management agencies (customs authorities, police stations, border gate police stations, port authorities, medical quarantine authorities (animal/plant)) are assigned to allocate funding to invest construction within their schedules. In case such agencies cannot allocate funding, state management agencies shall carry out investor selection under the public - private partnership form (Build - Transfer - Lease (BLTL) contract or Build - Lease - Transfer (BTL) contract);

Sub-project 2 - Constructions in service of flight control: Vietnam Air Traffic Management Corporation (VATM) shall act as the project owner;

Sub-project 3 - Essential constructions in an airport performed by the investor: Airports Corporation of Vietnam - JSC (ACV) shall act as the project owner;

Sub-project 4 - Other constructions: The Ministry of Transport shall assume the prime responsibility for selecting the investor.

4. Investment objectives:

To build Long Thanh International Airport to become a level 4F important international airport of Vietnam (according to the decentralization of the International Civil Aviation Organization - ICAO), aiming to become one of the international air transit hubs in the area.

To invest Long Thanh International Airport, phase 1 with 01 runway and 01 passenger terminal with synchronous auxiliary items for receiving 25 million passengers and 1.2 million tons of cargo per year.

5. Construction investment contents and scale of phase 1:

Airfield infrastructure: To build the runway with a length of 4,000 m, a width of 75 m (B_m= 45 m, b_lề(shoulders width) = 2 x 15 m) and a system of taxiway and apron for receiving 25 million passengers and 1.2 million tons of cargo per year.

Passenger terminal: To build a passenger terminal with a designed capacity of 25 million passengers per year and a total floor of 373,000 m².

Constructions in service of flight control: To build a control tower with a height of 123 m and auxiliary items.

Auxiliary constructions: To build parking garages; cargo terminals for receiving 1.2 million tons of cargo per year; areas for providing airline meals; establishments providing services of equipment maintenance, airplane cleaning, stations supplying fuel, drainage and wastewater treatment stations, etc.

Constructions of state management agencies and units in the airport: Customs authorities, local police stations, border gate police stations, airport authorities, medical quarantine authorities (animal/plant); units managing and exploiting the airport; air traffic control units; airlines; aviation service providers, etc.

Transport directly linked to the airport: Route No. 01 linked the airport to national highway 51, and route No. 02 linked the airport to the Ho Chi Minh City - Long Thanh expressway, with a scale of 04 lanes and intersections.

6. Consultancy organization for formulation of the feasibility study report:

Japan - France - Vietnam joint venture (JFV JV), including Japan Airport Consultants, Inc. (JAC), ADP Ingeniere (ADPi), Nippon Koei Co., Ltd (NK), Oriental Consultants Global., Ltd (OCG), Airport Design and Construction Consultancy Company (ADCC), Transport Engineering Design Incorporated (TEDI).

7. In charge of making the feasibility study report: Mr. Ryohei Yamada.

8. Consultancy and verification organization:

Joint venture of Consultant and Inspection Joint Stock Company of Construction Technology and Equipment (Coninco); Netherlands Airport Consultants Company (Naco); ARUP International Limited Company (ARUP); Airport Engineering Consultancy and Services Joint Stock Company (AEC).

9. Construction location: Long Thanh district, Dong Nai province.

10. Land use area:

Land demand in phase 1: Land use area and land demand in phase 1 is about 2,668 ha, including 1,810 ha for construction of Long Thanh International Airport, phase 1; about 136 ha for the traffic system connecting route No. 01 and route No. 2 (outside the area of 5,000 ha); 722 ha of surplus land for construction of phase 1 to reserve for construction in the next phases (within 5,000 ha).

11. Construction plan: To synchronously build construction items of Long Thanh International Airport project, phase 1 to ensure technical, fine arts and quality in accordance with international technical standards and relevant technical standards, ensuring the objectives, scale, capacity, economic-technical criteria, investment efficiency, not exceeding the total approved investment and the directing opinions of the National Assembly, the Government and the Prime Minister.

12. Technology equipment:

To apply modern and open technologies to easily update the most advanced technologies in the construction investment, management, operation and exploitation of airports according to international standards and equivalent to the advanced international airports in the world, ensuring efficient, accurate, highly reliable operation with full backup functions and saving energy.

13. Compensation, ground clearance and resettlement plan:

To comply with plan approved by the Prime Minister in the Decision No. 1487/QD-TTg dated November 06, 2018, on approving the feasibility study report of the project on land recovery, compensation, support and resettlement for Long Thanh International Airport, and the People’s Committee of Dong Nai Province is assigned to assume the prime responsibility for, and coordinate with ACV and relevant agencies to carry out the compensation, ground clearance and resettlement for 02 linked traffic routes in accordance with current law provisions.

14. Total investment:

Total investment for the project is VND 109,111.742 billion, equivalent to USD 4,664.89 million (at the exchange rate of 23,390 VND/USD announced on May 25, 2020 at Vietcombank). (Details in the attached Appendix).

15. Funding sources:

- Sub-project 1: To use the state budget capital of the agencies managing the construction or mobilize investment capital under the public-private partnership form (in the form of BTL or BLT) in case the agencies managing the construction cannot allocate capital.

- Sub-projects (2), (3), (4): To use investors’ capital but not government guarantee.

16. Investment form:

- Sub-project 1: Public investment or public-private partnership (PPP) (in the form of BTL or BLT) in case the agencies managing the construction cannot allocate capital.

- Sub-projects (2), (3), (4): Direct investment in accordance with law provisions.

17. Project management form:

The project owner shall organize to manage the project in compliance with current laws, ensuring the quality and progress of the project implementation.

18. Implementation time: 2020 - 2025.

19. Other contents:

a) Technical regulations and standards to be selected: To apply international advanced standards and domestic standards suitable to the nature and scale of the construction. To comply with the law on construction and relevant laws to ensure the construction’s quality and the project’s investment objectives and scale.

b) Regarding the land handover mechanism: The People’s Committee of Dong Nai Province is assigned to assume the prime responsibility for, and coordinate with the Ministry of Transport, ACV and relevant agencies in implementing current law regulations, ensuring the project schedule.

c) Requirements for human resources: To train high-skilled human resources to manage and exploit Long Thanh International Airport in phase 1, to given priority to develop young human resources in localities. The project owner shall coordinate with aviation management agencies in training human resources for further investment, management and exploitation.

d) Plan for environmental protection, fire and explosion prevention: To comply with current laws according to international standards.

Article 2. Implementation organization

1. Implementation of sub-projects:

After the general project is approved to be invested by the Prime Minister, project owners shall deploy the following steps to implement decisions on investment of sub-projects in accordance with law provisions, ensuring the project’s quality, schedule and investment efficiency.

To assign the authority of the investment decider to the units in charge of state management agencies for Sub-project 1, VATM for sub-project 2, ACV for sub-project 3, and project owners selected by the Ministry of Transport for sub-project 4. Such mentioned units shall be responsible for their assigned tasks according to the current laws.

2. Responsibilities of sub-project owners:

- To receive opinions from the State Appraisal Council at the Report on the appraisal results during the project implementation.

- To comply with regulations and procedures for construction investment, regulations on standards, technical regulations and economic and technical norms. To strictly manage project construction costs, ensure the economical, efficient, and proper use of the investment capital, in accordance with the regulations but not exceed the total approved project investment.

- To take responsibility before the National Assembly, the Government, the Prime Minister and inspection and audit agencies as prescribed, ensuring the project is implemented in accordance with current laws, avoiding negative, loss, corruption, and waste. To organize to implement the project according to the National Assembly’s Resolutions and the Prime Minister’s directions.

- To take responsibility for supervising and evaluating the project investment in accordance with law provisions.

- To develop a plan for training and developing qualified human resources to manage the efficient operation and exploitation of the project.

- To fully perform tasks and responsibility of environmental protection, fire and explosion prevention in accordance with current law provisions.

3. The Ministry of Transport shall:

- To take responsibility with ACV for the quality of the feasibility study report for the project and the accuracy of the dossier submitted for appraisal in accordance with law provision and the Prime Minister s directions.

- To direct sub-project owners to make the basic design of items without basic design, completing the feasibility study report, approve and implement sub-projects in accordance with law provisions.

- To take responsibility with the Commission for the Management of State Capital at Enterprises for proposing to the State Appraisal Council the contents of assigning ACV, VATM as an investor to implement the project with the capital of the enterprise; taking responsibility for organizing the investor selection to invest in other items, ensuring that the project is invested in a synchronous manner, with the right quality and exploitation schedule under the direction of the National Assembly, the Government and the provisions of law. To fully perform rights and responsibilities of the agency representing the owner for VATM in investing construction items of the project.

- To coordinate with relevant state management agencies in selecting investors, or assigning ACV to invest sub-project 1 in the PPP form in accordance with law provisions and the National Assembly’s Resolution No. 95/2019/QH14.

- To coordinate with, and guide ACV to review and complete the project dossier and urgently deploy the following designing steps, fully ensure project implementation conditions and project investment efficiency.

- To organize and implement the specialized state management function with the project in the investment and management of exploitation and use of the Long Thanh International Airport in accordance with law provisions.

- To assume the prime responsibility for and coordinate with the Ministry of National Defense in directing the determination of boundaries of areas exclusively used for civil activities and areas commonly used for civil and military activities under civil management as prescribed.

- To assume the prime responsibility for, preparing the tasks and proposing to establish the Interdisciplinary Working Group of Long Thanh International Airport to help the Government perform well the function of state management in the process of implementing the project to ensure proper technique, fine arts, quality, progress and investment efficiency.

4. The Ministry of Natural Resources and Environment shall:

- To support and provide guidance to the People’s Committee of Dong Nai Province and the Ministry of National Defense, the Ministry of Transport and relevant agencies in land allocation, land lease and land use purpose transfer for implementing the project in line with the land use plans approved by competent authorities according to law provisions on land.

- To support and provide guidance to ACV in implementing the environmental impact assessment procedures of the project in accordance with law provisions on environmental protection; to comply with regulations on water resource protection according to the law on water resource in the implementation of the project.

5. The Ministry of National Defense shall:

- To coordinate with the Ministry of Transport, the People’s Committee of Dong Nai Province, ACV and relevant agencies in implementing order and procedures for handing over land for the project implementation in accordance with law provisions.

- To assume the prime responsibility for and coordinate with the Ministry of Public Security, the Ministry of Transport and ACV in ensuring flight safety and aviation security in accordance with law provisions on aviation.

6. The Ministry of Public Security shall:

To perform the state management function and coordinate with the Ministry of National Defense, ACV and relevant agencies in managing the assurance of security and safety for aviation activities in accordance with law provisions.

7. The Ministry of Construction shall:

To perform the state management function and coordinate with the Ministry of Transport and the Committee for Management of State Capital at Enterprises in guiding and supporting ACV and related project owners in the project implementation in the next steps according to law provisions on construction.

8. The People’s Committee of Dong Nai Province shall:

- To take responsibility for carrying out the compensation and ground clearance for the construction area for 02 linked traffic routes (about 136 ha) in accordance with law provisions, ensuring item implementation schedule upon the project owner’s request.

- To assume the prime responsibility for, and coordinate with the Ministry of Transport, the Ministry of National Defense, the Ministry of Natural Resources and Environment and relevant agencies in handing over land for the project construction in accordance with the land law and current laws according to the progress of the project, ensuring the efficient use of land after the ground clearance, avoiding the waste of resources while the project has not been implemented.

- To coordinate with the Ministry of Natural Resources and Environment in directing ACV and relevant agencies to comply with the procedures for assessing the environmental impacts of the project in accordance with law provisions on environmental protection. At the same time, to ensure the project implementation according to law regulations on environmental protection.

- To coordinate with the Ministry of Finance and direct relevant units and guide ACV to implement tax incentives and related policies in accordance with current law provisions; to coordinate in timely settling difficulties arising in the project implementation and organization.

- To develop the synchronous plan, and coordinate with the Ministry of Transport, the People s Committee of Ho Chi Minh City and relevant localities in organizing the investment of transport works connecting Ho Chi Minh City and Long Thanh International Airport.

- To coordinate with ACV in studying and planning a fuel pipeline from the upstream port to the boundary of Long Thanh International Airport.

9. The People’s Committee of Ho Chi Minh City shall:

- To develop the synchronous plan, and coordinate with the Ministry of Transport, the People s Committee of Dong Nai Province and relevant localities in organizing the investment of transport works connecting Ho Chi Minh City and Long Thanh International Airport.

- To research and develop public transport options connecting Ho Chi Minh City (especially the central area and Tan Son Nhat International Airport) with Long Thanh International Airport to serve travel needs when putting Long Thanh International Airport into operation.

10. The Committee for Management of State Capital at Enterprises shall:

To request a representative for capital share at ACV:

- To invest the sub-project 3 and relevant contents in accordance with law provisions, manage the project, ensure the project implementation progress and the efficient use of the State s capital investment at the enterprise; carefully control production and business plans, investment plans for each period to develop financial plans for the project implementation, ensure investment efficiency, efficiency in use, preservation and development of state capital and manage, operate Long Thanh International Airport in accordance with law provisions.

- To organize the supervision and assessment of project investment in accordance with law provisions, and timely report on violations (if any).

11. The Airports Corporation of Vietnam - JSC (ACV) shall:

- To complete, appraisal, approve and organize the implementation of sub-projects in accordance with law provisions, ensuring efficient investment and within the total investment of such sub-projects.

- To allocate sufficient capital to invest in essential constructions at Long Thanh International Airport to ensure quality, on schedule as required, to preserve capital and construction investment efficiency.

- To take responsibility for information and data reported in the project dossiers, project investment efficiency, and efficiency of use, preservation and development of state capital according to law provisions.

- To receive opinions from the Appraisal Council and relevant agencies in the appraisal report. To organize to implement and manage the project in accordance with current provisions.

- To allocate sufficient funding for the People’s Committee of Dong Nai Province to carry out the ground clearance for 02 linked traffic routes.

- To closely coordinate with the Ministry of Public Security and Ministry of National Defense in ensuring aviation security at airports and airfields; ensuring economic development in association with national defense and security, improve the efficiency of operation of Long Thanh International Airport.

12. The Vietnam Air Traffic Management (VATM) shall:

- To complete, appraisal, approve and organize the implementation of sub-project 2 in accordance with law provisions, ensuring efficient investment and within the total investment of the project.

- To allocate sufficient capital to invest in constructions in service of flight control to ensure quality, on schedule as required, to preserve capital and construction investment efficiency.

- To coordinate with the Ministry of National Defense and relevant agencies in ensuring flight mode safety, organizing airspace and exploitation plan during the project s operation.

Article 3.This Decision takes effect on the date of its signing.

Article 4.The ministers of Planning and Investment, Finance, Construction, Natural Resources and Environment, Transport, National Defense, Public Security; President of the Committee for Management of State Capital at Enterprises; Chairperson of People s Committee of Dong Nai Province; Chairperson of the Board and General Director of Airports Corporation of Vietnam; Chairperson of the Member s Council and General Director of the Vietnam Air Traffic Management, heads of concerned agencies and units shall take responsibilities for implementing this Decision./.

For The Prime Minister

The Deputy Prime Minister

Trinh Dinh Dung

* All Appendices are not translated herein.