A revised proposal has been authorized by the Lao Cai Provincial Government for the Sa Pa Airport project, which will be built through a public-private partnership (PPP).

The project with an investment of over VND6.3 trillion (USD248 million) will be developed in two phases. Phase 1 involves the construction of an ICAO 4C-standard airport with an annual capacity of 1.5 million passengers and military airbase functions. Phase 2 enhancements will increase capacity to 3 million passengers, add aircraft parking spaces, and expand the terminal with new jet bridges.

The PPP contract covers capital recovery, operation, and construction for a period of almost 47 years. While Phase 2 will be carried out during the operational time, Phase 1 construction is anticipated to take somewhat more than two years. Phase 1 will get around USD 157 million, while Phase 2 will receive USD 94 million. The improved infrastructure is intended to promote wider economic growth in the Lao Cai region and enhance air connectivity to the popular tourist destination of Sa Pa.