In its proposal to the Government leader, the provincial authority stated that the project can be financed by the State budget and private funds under public-private partnerships through build-operate-transfer contracts.
Accordingly, leaders of the Northern province asked the PM and relevant ministries and central agencies to allocate more than VND 3.08 trillion from the central State budget to the construction of the flight zone, including runways, taxiways and aprons, as well as arterial roads to and from the Sa Pa airport.
Meanwhile, the province will use VND 910.6 billion from its own budget to finance bomb and mine clearance, site clearance, and resettlement.
Also, some VND 131 billion from the Hanoi-based Vietnam Air Traffic Management Corporation will be used to develop flight management tasks.
In addition, Lao Cai People's Committee will call for private investors to invest in the construction of civil aviation zone and fuel depots, with total estimated capital of VND 1.7744 trillion, under the the PPP form and BOT contract.
The airport will be located in Cam Con Commune of Bao Yen District on some 371 hectares of land, roughly 100 kilometers away from the frontier township of Sapa and will be used for both civilian and military purposes.
The early construction of the airport is deemed necessary and aligned with a number of master plans, according to the local government.
The airport is expected to meet the zoning plan criteria for airports by 2020, with a vision toward 2030, as approved by the prime minister.
As planned, Sa Pa airport will reach level 4C according to ICAO standard, with capacity from 2.5 to 3 million passengers per year. A320, A321 or equivalent aircrafts can land the airport. Total investment capital of Sa Pa airport is expected at VND 5.9035 trillion.
Previously, in July 2018, local People's Committee proposed the construction of Sa Pa airport in Cam Cung commune, Bao Yen district, with a total capital of more than VND 5.7 trillion.
Lao Cai is situated in the economic corridor of Kunming-Lao Cai-Hanoi-Haiphong that boasts strong trade links with southwestern China.
The province’s transport system incorporates only roads and railways. Therefore, an airport is expected to play an important role in improving the local transport network and to act as a catalyst for the development of Lao Cai Province, and the northwest mountainous provinces in general.