A joint venture has been proposed with the Airport Corporation of Viet Nam (ACV) to invest and construct new terminal T4 for the Tan Son Nhat International Airport.

Da Nang International Terminal Investment and Exploitation Joint Stock Company (AHT) and Thang Long Infrastructure Investment Joint Stock Company (TJC) will be part of the venture.

Airport operator ACV has proposed to the Ministry of Transport (MoT) an investment plan to build the T4 terminal through the privatisation model. The AHT-TJC alliance will partner with ACV to launch a project company to construct the terminal with investment capital of some VND4 trillion (US$177 million).

If the proposal is approved by the MoT, the company will be set up in June this year, paying adequate equity as prescribed, completing the signing of the credit contract for the project prior to commencement and ensuring all conditions are met to start the project in October and it can come into operation before the 2019 lunar calendar.

The project to expand the T4 terminal of the Tan Son Nhat International Airport has attracted a number of large investors, such as Imex Pan Pacific Group and Atad Steel Structure Corporation.

Vietjet Aviation Joint Stock Company was the first applicant to bid for construction of the T4 terminal, which will handle 10 million passengers annually, on a 21ha area next to the apron.

The airport, which was designed to have a capacity of 25 million passengers per year, handled 32 million last year, thus exceeding its capacity. It has been growing at 30 per cent annually and this growth is expected to continue for the next three years.

It needs to be upgraded to handle between 40 and 50 million passengers each year, Deputy Prime Minister Trinh Dinh Dung said during a meeting between the Government and local administrations at the beginning of this year. — VNS