The Ministry of Finance proposes to review the total investment in Sapa airport
The Ministry of Finance has just commented on the appraisal of the Feasibility Study Report (FS) of component 2 of the airport construction project (phase 1) of the Sa Pa airport construction investment project.According to the Ministry of Finance, the project has basically ensured the components according to the provisions of the law on PPP. Regarding the scale of investment, according to the FS report, the construction project of Sa Pa Airport Phase 1 meets the demand of 1.5 million passengers/year in line with the approved investment policy of the Prime Minister.
On March 3, 2022, Lao Cai province held a ground-breaking ceremony for the project of Sapa airport.
With a total investment of more than 3,650 billion VND, the Ministry of Finance proposed the Ministry of Planning and Investment to request the People's Committee of Lao Cai province to direct relevant agencies to review, calculate, and fully determine the cost contents as the basis to develop the financial plan and calculate the economic efficiency of the project.
In which, loan interest is calculated during the project construction period with an annual interest rate of 10%, however, the interest rate during the operation and exploitation period is unknown.
Construction area of Sa Pa airport in Cam Con commune, Bao Yen district.
The Ministry of Finance requests the Lao Cai Provincial People's Committee to clarify the basis for determining the above loan interest rate in the FS Report and determine the interest rate during the operation and exploitation period, and at the same time take responsibility for determining the Loan interest rate according to the Government's regulations on financial management mechanism of investment projects under the mode of public-private partnership.
Regarding capital sources, according to the FS Report, the local budget capital participating in the project is VND 661.21 billion, equity and credit loans are more than VND 2,990 billion.
The leader of the Ministry of Finance stated: According to the provisions of Article 77 of the Law on PPP, the owner must contribute equity of at least 15% of the total project investment, excluding state capital.
Perspective of Sapa Airport.
According to the FS report, the equity (in phase 1 is 752.1 billion VND, phase 2 is 396.6 billion VND), totaling 1,148.7 billion VND, meeting the equity ratio as specified in the Law on PPP.
Lao Cai Provincial People's Committee clarifies the ability to raise capital as a basis for assessing the feasibility of capital sources.
