French firm wants to be ACV's strategic partner

Representatives of transport ministry and French group Aéroports de Paris at the meeting in Ha Noi. The two sides are expected to co-operate in investment and management of aviation infrastructure projects in Viet Nam. — Photo baogiaothong.vn

HA NOI (Biz Hub) — French group Aéroports de Paris (ADP) has expressed its wish to take part in the investment and management of aviation infrastructure projects in Viet Nam.

These projects include the equitisation of the Airport Corporation of Viet Nam (ACV) and the Long Thanh International Airport project in the southern Dong Nai Province.

Speaking in a meeting with Minister of Transport Dinh La Thang in Ha Noi on March 23, Chairman and CEO of ADP Augustin de Romanet said his firm could take the role of a long-term strategic partner of the ACV, providing support with experts, experience as well as capital for the ACV's equitisation plan.

As a strategic partner, the CEO said the ADP would be ready to contribute 25 to 30 per cent of the ACV's value before its initial public offering (IPO), in order to help the company develop its operational plans.

At the meeting, Minister Thang highly appreciated the ADP, which has experience in managing investment and operating airports. He said the ministry had been actively implementing the Government's guidelines to complete the ACV's equitisation in the second quarter of this year.

"We will submit the ACV's equitisation plan to the Government in April," Thang said. He also proposed the ADP should closely coordinate with ACV to update information and be a strategic partner of ACV after the Government approves its equitisation plan.

ACV has registered capital of nearly VND14.7 trillion ($700 million). It has 24 subsidiaries that manage businesses at 22 international and domestic airports nationwide. In 2014, the corporation earned an estimated VND8.57 trillion ($408 million) in revenue, 0.86 per cent higher than last year.

Earlier, the transport ministry approved the valuation of the ACV at nearly VND38 trillion (US$1.8 billion). Of the total capital, the State ownership in the parent corporation is VND20.77 trillion ($989 million), excluding the value of the assets in the service area for flight operations.

The State's share of funds collected during ACV's initial public offering will be invested in the first phase of the Long Thanh International Airport in HCM City.

Long Thanh Airport

The ADP representative also expressed the hope his firm could get involved in the Long Thanh International Airport project. After co-operating in ACV's equitisation, ADP and ACV could establish a public-private partnership model to build and operate the airport.

ADP CEO Romanet said ADP and financial consulting bank Credit Suisse – an experienced bank that can arrange about US$6 billion for Viet Nam – will work with the transport ministry and ACV to mobilise about $2.5 billion to $3 billion for the Long Thanh International Airport.

A image of Long Thanh International Airport in southern Dong Nai Province. It is designed to be the largest airport in Viet Nam with a capacity of handling 100 million passengers annually. — Photo vtv.vn

According to the Government's latest report on the Long Thanh Airport sent to the National Assembly Standing Committee, the airport's value is estimated at $15.8 billion, of which the first phase is worth $5.2 billion.

Thang said the Government planned to submit the airport project proposal to the National Assembly for approval in May this year.

"If it is approved by the National Assembly, it will be Viet Nam's largest airport project, requiring mobilisation of a huge amount of capital from sources outside the State budget," Thang said.

The airport, in Long Thanh District of Dong Nai Province, some 40km to the east of HCM City, is to be built in three phases. The airport, which will be able to handle 100 million passengers annually, is expected to be fully operational by 2035. — VNS