The Ministry of Planning and Investment has just responded in writing to the Da Nang Port JSC about its proposals to time for conversing the Tien Sa Port’s function and invest in the Lien Chieu Port project in the city.

In the photo is a view of loading and unloading activities at the Tien Sa Port. Photo: PHUONG UYEN

Da Nang is planning to build the Lien Chieu Port as its major cargo port to meet the growing demand for maritime transportation. At the same time, the city is drawing up a specific roadmap to converse the existing Tien Sa Port into a tourist port.

Before the new investment plan for the Lien Chieu Seaport, the Da Nang Port JSC has written a proposal to participate in this project with a series of preferential offers, including appointing it as the investor of two terminals of the Lien Chieu Port project.

Additionally, the company has made proposals to extend the operation time of the project to up to 70 years, and converse the Tien Sa Port into a tourist port from 2026.

According to the Ministry of Planning and Investment, as part of the Lien Chieu Port project, the construction of the shared infrastructure, including embankments, breakwaters, ship channels and technical infrastructure, is slated for the 2021-2025 period.

Meanwhile, there are no plans yet to build such main items as container terminals, equipment used for loading and unloading operations, and warehouses, so it is not possible to determine the expected time of completion and operation of the Lien Chieu Port. Therefore, the Da Nang Port JSC-made proposal to deploy the conversion of Tien Sa Port’s function starting from 2026 is not suitable for the actual implementation of the Lien Chieu port project.

Regarding the proposal to appoint the enterprise as an investor to exploit the two terminals of the Lien Chieu Port according to the Law on Bidding, the Ministry of Planning and Investment replied to the Government decree detailing the implementation of a number of articles of the Law on Bidding.

The Law on Bidding stipulates the scope of regulation: "Investment projects using land to build urban areas; construction of civil works with one or more functions including commercial houses, headquarters, offices, commercial and service works".

Meanwhile, according to the classification, the soon-to-be-develop Lien Chieu Port belongs to the construction for transportation and not to the construction used for the above purposes. Therefore, the Ministry asked the company to contact the Da Nang authorities and relevant agencies to follow in accordance with the law.

Under the master plan on Viet Nam's seaport development during the 2021 - 2030 period, with a vision to 2050, the Da Nang Port, including Lien Chieu Port, is recognised as a first-class seaport. In which, the Lien Chieu Port will be the largest container port in Central Viet Nam serving the inter-regional and national socio-economic development.

The building of the Lien Chieu Port project in its startup phase is expected to cost nearly VND6,484 billion. Of this figure, VND 2,269 billion will be investor's cash contribution, whilst the rest will be borrowed from credit institutions.

Meanwhile, the Da Nang Port JSC’s project file shows that the value of fixed assets transferred from the Tien Sa Port to the Lien Chieu Port during the 2025-2026 period is VND500 billion. As such, the investor's capital is not entirely in cash. Therefore, the Ministry of Planning and Investment requests the company to clarify this content, and the plan to increase charter capital and the company's ability to raise capital to ensure investors' capital contribution to the project.

Also, the Ministry of Planning and Investment informed that the company’s proposal for a project operation term of 70 years is not consistent with the provisions of the national Land Law.

Reporting by GIA MINH - Translating by M.DUNG