Long Thanh Airport site clearance costs an estimated US$1 billion

Friday, 2017-10-27 16:40:52
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A rendering of Long Thanh Airport
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NDO - The costs of site clearance and compensation for Long Thanh Airport are estimated at VND23 trillion (US$1 billion), according to a feasibility report presented to the National Assembly by the Ministry of Transport (MOT).

Minister Nguyen Van The informed the parliament that approximately 5,585 hectares of land will be reclaimed for the project, which is designed to be the main airport serving Ho Chi Minh City.

The MOT estimates that 78.5% of the total costs will be spent on compensation and resettlements for displaced residents, while the remaining will go to other expenses.

With VND5 trillion (US$220 million) having already been approved, as part of the 2016-2020 public investment plan, the project requires an additional VND18 trillion for this section.

The acquisition of land will be carried out on a one-off basis to prevent price differences but could take several years to complete.

The transport minister stated that the first priority is to build infrastructure for the resettlement areas and pay compensation for residents within the boundary of the Long Thanh Airport’s first phase of development.

In order to help the displaced residents to quickly recover their incomes, the transport ministry recommended the provision of more financial support, in addition to the current policies on land compensation.

The Long Thanh Airport project was approved by Vietnam’s National Assembly in 2015 to replace the overloaded Tan Son Nhat Airport, which is located in downtown Ho Chi Minh City.

The new airport will be built in Long Thanh district in Ho Chi Minh City’s neighbouring province of Dong Nai and is expected to cost US$16 billion.

The first phase of Long Thanh, which is expected to be completed in 2025 and handle 25 million passengers and 1.2 million tonnes of freight a year, includes the construction of a runway, a terminal and supporting infrastructure.