The Da Nang government has asked for permission from the Ministry of Planning and Investment to grant 500 billion VND (21.7 million US$), as soon as possible, from the national mid-term public investment budget for the 2016 – 2020 period, in order to start the construction work next year.

A view of the planned construction site of the Lien Chieu Port

The funding of 500 billion VND is expected to be spent on specific components, namely compensation, support and resettlement activities; the supply and installation of equipment; the building roads connecting to the Lien Chieu Port; levelling work outside the Port; electricity and water supplies; the lighting system; temporary facilities in used for the implementation of the project; finishing about 35% of the construction work of the coastal embankments or breakwaters; and other expenses in accordance with regulations on project management and construction investment consultancy.

According to the pre-feasibility study, the Lien Chieu Port covers a total planned area of 220ha, comprising 5 main functional areas, with a total investment of 32,861 billion VND (1.4 billion US$).

The construction of the project is expected to be broken down into 3 stages. The first stage is expected to be completed by 2022 at an estimated cost of 7,380 billion VND, with the second, worth 7,857 billion VND, finished in 2030, and the third completed by 2050 with a cost of 17,626 billion VND.

According to the project’s pre-feasibility study, Lien Chieu Port will become a major wharf area of an international gateway port in the central region, having the capacity to receive ships up to 100,000 dead weight tonnage (DWT), and container ships with capacity from 6,000 to 8,000TEUs.

Meanwhile, the current Tien Sa Port, which now serves both cargo and cruise ships, will be converted the into a special-use port for large cruise ships in the future years with an anticipated capacity of 250,000 tourists by 2030.

The infrastructure for the port’s two terminals is estimated to cost more than 3.4 trillion VND (147.8 million$), more than 2.99 trillion VND (130 million$) of which is construction costs, while the rest is the cost of equipment and site clearance, among others.

To finalise the project according to the approved scale, the Da Nang aithorities have urged the Prime Minister and the National Assembly’s Finance and Budget Committee to consider capital grants for the project when reviewing the mid-term public investment plan for the 2021 – 2025 period.

To lift the project off the drawing board, Da Nang proposes sourcing 87.4% of the total investment value from the national budget, equal to 2.99 trillion VND(130 million $).

The Ministry of Transport’s budget for the project would be sourced from the mid-term public investment plan for the 2016 – 2020 period, while 433 billion VND (18.8 million$), equal the remaining 12.6% of the total investment capital, will come from the Da Nang budget for the project’s implementation.

Da Nang expects investment preparation to be finalised next year, and the project will begin construction and be put into operation during 2020 - 2022.

Director of the municipal Department of Planning and Investment Tran Phuoc Son highlighted the national government’s determination in starting the implementation of the large-scale Lien Chieu Port project in a prompt fashion.

Meanwhile, Mr Nguyen Huu Sia, the General Director of Da Nang Port JSC, hoped that government grants of 500 billion VND will be passed at the 6^th session of the ongoing 14^th National Assembly in Ha Noi from 22 October until 19 November.