FLC partners with US company to study upgrading Phu Cat and Pleiku airports.
FLC Group has just signed a preliminary agreement with the American company HASDC to jointly research and invest in upgrading Phu Cat and Pleiku airports in Gia Lai province.
FLC Group, together with its American partner, will study investment and upgrade projects at Phu Cat and Pleiku airports in Gia Lai province.
On the afternoon of July 22nd, FLC Group and HAS Development Corporation - HASDC (USA) signed a framework agreement for investment and upgrading of Phu Cat and Pleiku airports in Gia Lao province
According to the agreement, the two sides will jointly study investment options for upgrading and expanding the two airports to increase service capacity and improve aviation service quality to international standards. The parties expect the project to contribute to the completion of transportation infrastructure and promote socio economic development in Gia Lai and the Central Coastal region.
Established in 2001 and headquartered in Texas (USA), HASDC operates in the fields of airport investment, development, management, operation, and consulting. The company has 25 years of experience in airport privatization projects, concession agreements, and public-private partnerships (PPP) in Central and South America.
Mr. Agustin Arellano, Chairman and CEO of HASDC, stated that the company had conducted preliminary research and practical discussions with FLC before deciding to cooperate. HASDC will collaborate with FLC to study solutions for developing aviation infrastructure according to international standards, aiming to promote economic growth and create more jobs in the local area.
On FLC's side, Mr. Trinh Van Quyet, Chairman of the Group, highly appreciated HASDC's experience and capabilities. According to him, the American company had spent a lot of time researching and surveying aviation infrastructure and the investment environment in Vietnam before proceeding with the cooperation.
FLC stated that it has recently worked with the leaders of Gia Lai province on the direction of upgrading the two airports, and also introduced HASDC's international capabilities and experience to create a foundation for cooperation.
Previously, on July 10th, the Gia Lai Provincial People's Committee agreed in principle to allow FLC to research and propose investment plans for upgrading and expanding Phu Cat and Pleiku airports using the PPP (Public-Private Partnership) method.
However, the approval of the new policy is still at the research and proposal stage and does not mean FLC has been selected as the investor. The company still has to complete the dossier, clarify the scale, total investment amount, capital mobilization plan, repayment mechanism, and socio-economic effectiveness for the competent authorities to review.
According to the plan approved by the Ministry of Construction in early July, Pleiku Airport is planned to be classified as a 4C airport, with a capacity of approximately 2 million passengers per year by 2030 and 5 million passengers by 2050. The total investment capital required according to the plan is approximately 12,660 billion VND for the period up to 2030 and 2,420 billion VND for the period after that.
Meanwhile, Phu Cat Airport is planned to reach level 4E, with a capacity of approximately 3 million passengers per year by 2030 and 7 million passengers by 2050. The estimated investment capital requirement is approximately VND 8,785 billion by 2030 and VND 6,308 billion for the subsequent period.
At today's signing ceremony, Mr. Michael Vu Nguyen, Director of Boeing Vietnam, was also present. According to FLC, he has been a partner with the group and Bamboo Airways, connecting the business with many international partners, including HASDC. Previously, FLC and HASDC collaborated on field surveys and research regarding Phu Cat and Pleiku airports through this connection.
Mr. Vu Tu Thanh, Acting Regional Managing Director and Chief Representative of the US-ASEAN Business Council (USABC) in Vietnam, stated that this is the first time a US company has invested in the aviation sector in Vietnam. He expects the cooperation to open up more opportunities to attract capital from the US and internationally into Vietnam's aviation infrastructure.