MINISTRY OF TRANSPORT
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|
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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|
No. 4907/QD-BGTVT
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Hanoi, December 24, 2014
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DECISION
APPROVING PROJECT " MOBILIZATION OF PRIVATE SECTOR
INVESTMENT IN RAILWAY INFRASTRUCTURE"
THE MINISTER OF TRANSPORT
Pursuant to the Law on Railways in 2005
Pursuant to the Law on
Investment in 2005
Pursuant to the
Government’s Decree No. 108/2009 / ND-CP dated November 27, 2009 on investment
in the form of BOT, BTO and BT contracts and the Government’s Decree No. 24/2011
/ ND-CP dated April 5, 2011, amending a number of articles of Decree No.
108/2009 / ND-CP;
Pursuant to the
Government’s Decree No. 107/2012 / ND-CP dated December 20, 2012 defining the
functions, tasks, entitlements and organizational structure of the Ministry of
Transport;
Pursuant to the Prime
Minister’s Decision No. 355 / QD-TTg dated February 25, 2013 on approving the
adjusted strategy for Vietnam’s transport development towards 2020, and the
orientation towards 2030;
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DECISION
Article
1. Approving project " mobilization of private sector
investment in railway infrastructure" ( hereafter referred as project)
shall be as follows:
1.
Viewpoints and targets
1.1. Viewpoints and
general targets
- Contribute to the
successful implementation of Resolution No. 13-NQ / TW dated 16/01/2012 in 4th
conference of the 11th Central Executive Committee of Communist
Party on constructing system of synchronous infrastructure aiming to our
country become a modern-oriented industrial country in 2020.
- Radically and
effectively mobilize all resources other than the state budget to invest in
development of the infrastructure of railway, gradually reduce the burden on
the state budget, and meet the target of socio-economic development,
industrialization - modernization of the country. Ensure compliance with all
policies and guidelines of the Party, the Government, the Ministry of Transport
and practical requirements set out in the restructuring of the sector reform
that shall focus on restructuring the investments, the transport and the
State-owned enterprises in the transport sector.
- Restructure the railway
sector investment, enhance private sector involvement investment ratio in the
railway infrastructure commensurating with other transport fields.
1.2. Specific targets
- Assess the reality of
mobilization of the resource in investment, development the railway
infrastructure.
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- Propose the list of
projects, works that need private sector involvement and schedule.
2.
Orientation for mobilization of private sector investment in railway
infrastructure"
Seek private sector involvement in investment in railway
infrastructure shall be under the following principles: The state shall focus
on the investment in construction of railway infrastructure items which
directly serve the train operation; other items like: stations, station depots,
station platforms, freight yards and other supportive services will be
invested, operated and developed in association with the private sector.
2.1. For existing
railway infrastructure
systems
Private sector
involvement in operation and development the railway construction shall be as
follows
- For terminals: Attract
investors in construction, renovation, upgrade, and expansion of terminals in
order to operate them in cooperation.
- For station depots,
freight yards and service areas: Attract investors in construction, renovation,
upgrade, and expansion. The investors shall be responsible for construction
maintenance and entitled to operate the constructions for a certain period of
time.
- Effectively develop the
land fund for railway.
b) Grant franchise for
railway route operation.
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2.2. For newly built
railway infrastructure systems
Call for and attract the investment
in the construction of a part or the whole project in the form of
public-private partnerships (PPP), built - owned - operate - transfer (BOOT)
... on the base of the mechanism and supportive policies of the State (taxes,
fees, interest, loan term, rate, ...); the capital of the State involved in
premises clearance, the investment capital of work items directly involved in
the train operation.
(The list of projects
called for private sector investment shall be provided in Appendix 1 of this
Decision)
3.
Solution for mobilization of private sector investment in railway
infrastructure"
3.1. Solutions for
legislative document system
Proposals for amending
and supplementing one law and one decree shall be as follows:
1. Amend and supplement a
number of articles of the Law on Railways: Specifically supplement the
provisions on granting franchise the railway infrastructure development
operation and management rights; Amend and supplement the provisions on the
rents for railway infrastructure which shall replace the provisions on use fee
of the railway infrastructure and fee of providing the service of operating
railway transport on the national railway constructed by the State.
2. Build up and
promulgate a new decree on the management, use and develop the national railway
infrastructure property constructed by the state, in order to closely manage
and efficiently develop the rail infrastructure and increase capital sources
serving the maintenance and development of railway infrastructure property.
Which shall include the mandate to manage and maintain the collector road
system along the rail constructed by the State?
3.2. Solution of mechanisms and policies
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1. Amend and supplement
the Prime Minister’s Decision No. 84/2007 / QD-TTg dated June 11, 2007 on the
charge’s method and level of the rents for the national railway constructed by
the State, under the direction:
- The rents for railway
infrastructure shall be depended on the level of actual use, instead of the
current charge based on the turnover of transport enterprises under the
contents of the Law on Railway (as amended).
- Strengthen inspection
and supervision of state agencies to improve the business efficiency of
national railway infrastructure invested by the state (in the direction of
strengthening the competitiveness of the lease of railway infrastructure and
being implementated or monitored by the state agencies).
2. Amend and supplement
the Minister of Finance’s Circular No. 21/2008 / TT-BTC dated March 04, 2008,
guiding the collection methods, fees and rents for the national railway
infrastructure invested by the State in accordance with the Prime Minister’s
Decision No. 84/2007 / QD-TTg dated June11, 2007 in the direction of
strengthening the competitiveness of the lease of rail
infrastructure to increase revenues for the State budget; ensure the publicity,
transparency and strengthen the inspection and supervision of state agencies.
3. Amend and supplement
the Minister of Finance’s Decision No. 1129 / QD-BTC dated May 27, 2014,
defining the minimum rent for the national railway infrastructure invested by
the State in the direction that the minimum charge must conform with the of
each regional market and be adjusted each year.
4. Promulgate provisions
and guidelines in implementing the sample project contract and investment for
PPP rail infrastructure projects.
(The list of legal
documents amended, supplemented or newly promulgated shall be provided in
Appendix 2 of this Decision)
3.3. Solutions for
management innovation
- Continue to promote the
implementation of the project of comprehensive innovation the State management
of Vietnam Railway Administration and the project of restructuring Vietnam
Railway Corporation on the correct route and quality assurance.
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3.4. Solution for
private sector investment in railway transport operation.
- Promote the
organizational separation between infrastructure business enterprises and
railway transport business enterprises to ensure a fair competitive
environment, do not discriminate in rail transport business, encourage
investors to invest in the field of railway transport business.
- Call for private sector
investment in locomotives, compartments to promote the efficiency in rail
infrastructure investment. Encourage the domestic or foreign-invested business
enterprises, railway industry organizations to invest or associate to invest in
new production of locomotives, compartments and in the rail transport development
and business.
3.5. Solution for
planning, plan and organizing the implementation
- Accelerate the
implementation of the adjusted strategy for development of Vietnam railway
transport up to 2020 with a vision toward 2050 on which completing the adjusted
master plan on development of Vietnam's railway transportation up to 2020, with
a vision toward 2030 shall be based so that the competent authorities shall
approve the detailed master plan to modernize north – south railway lines.
- Review, assess the situation and use purpose of current
land for railway and plan the use of land fund for the construction of
railways, land allocated to the railway enterprises for management; determine
land use rights for railway.
- Plan the system of
passenger terminals, cargo terminals to take advantage of the premises of the
unused goods yards within the land for the railway, make a list to call for
investment in such works.
4.
Organization of implementation
4.1. Vietnam Railway
Administration shall:
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Its head is the Deputy
Minister of Transport; the deputy heads are: PPP Leaders, Leader of Vietnam Railway
Administration; Members are leader representatives of the related departments
and the Corporation of Vietnam Railway.
b) Take charge to propose
the plan of inspecting and reviewing the system of legal documents related to
the private sector investment in railway infrastructure; develop the documents
under the approval decision of the Ministry of Transport.
c) Take charge to propose
the list of programs and projects calling for private sector investment and
request the Ministry of Transport. Organize the implementation the programs and
projects of private sector investment in railway infrastructure for the new
railway routes
d) Develop regulations
and guidances for implementing the sample project contract and investment for
railway infrastructure sector PPP projects.
4.2. Vietnam Railway
Administration shall :
a) Take charge to
complete the project of management, development and business of the national
rail infrastructure.
b)
Cooperate with Vietnam Railway Administration to propose the list of programs
and projects calling for private sector investment.
c) Organize the
implementation the programs and projects of private sector investment in
railway infrastructure for the existing works and railway routes under the
hierarchy and mandate by the Ministry of Transport Coordinate with the
central-affiliated cities and provinces in planning of infrastructure
development in the existing station to call for private sector investment.
4.3. Related Departments under the
Ministry
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- Take charge to advise,
monitor the implementation of the project; review, report and propose to the
leader of the Ministry of Transport for solving difficult problems arising.
- Take charge to advise and
review the mechanisms and policies to request the Government, ministries and
regulatory bodies for consideration and settlement.
- Take charge to advise
the Ministers of departments or coordinate with ministries and regulatory
bodies to promulgate provisions guiding the implementation of the sample
project contract and investment for railway infrastructure sector PPP projects
- Take charge to advise
to request the Minister to approve the list of projects calling for investment
in the form of PPP.
b) Legal Department
shall: Take charge to advise to request the leader of the Ministry of
Transport to approve the plan of inspecting, reviewing and systematizing of
legal documents related to the private sector investment in railway
infrastructure requested by the Department of Vietnam Railway.
c) Finance Department shall : Take charge to advise the
legal documents so that the Ministry of Transport shall request the Government,
the Ministry of Finance to amend and supplement the contents related to
property and charge related to the railway infrastructure and other relevant
contents.
d) Planning – Investment
Department shall:
- Take charge to advise
the development of the content related to planning and strategy in the railway
infrastructure.
- Take charge to advise
the including the State capital on support PPP projects.
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Article
2. This
Decision takes effect after the date of signing.
Article
3. The Chief of the Ministry Office,
the Chief Inspector of Department, the Directors, Heads of Investment
Management Board of public – private projects, the Director of Vietnam Railway
Administration, Department of Construction Management and Quality of transport
works, General Director of the Vietnam Railway Corporation and heads of
agencies and units under the Ministry of Transport shall implement this
Decision
MINISTER
Dinh La Thang
APPENDIX
1:
PROPOSAL LIST OF RAILWAY
PROJECTS FOR PRIVATE SECTOR INVOLVEMENT.
(Enclosed with the Minister of Transport’s Decision No. 4907 / QD-BGTVT
dated December 24, 2014)
No.
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Size
Proposed private sector involvement form
Estimated total cost (million dong)
Research start time
Competent state authorities
Agencies in charge
I
Existing railway
construction
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1.
b) Pilot franchise of
operation and management rights of Lao Cai-Ha Noi-Hai Phong railway.
398.05 km
Franchise
Defined during project planning
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Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
2
b) Pilot franchise of
operation and management rights of Kep-Ha Long-Cai Lan railway.
111 km
Franchise
> 0}
Defined during project planning
2015
Ministry of Transport
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3
Pilot franchise of
operation and management rights Yen Vien warehouse
30,500 m2
Franchise
>
Defined during project planning
2015
Ministry of Transport >
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
4
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According to the research project
PPP
Defined during project planning
2016
Ministry of Transport >
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
5
Call for private sector
investment in the system of terminal and warehouse of 06 stations: Song Than,
Bim Son, Giap Bat, Yen Vien, Lao Cai, Dong Dang, Cai Lan cargo terminal and
port, Xuân Giao A.
According to the research project
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Defined during project planning
2015-2016
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
6
Ha Noi-Ho Chi Minh City
railway line
Firstly, franchise
development right on some unused lines and depot-to-depot section
Then franchise the
operation and development right of infrastructure in each line or
depot-to-depot section:
- Ha Noi-Vinh
section
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- Dong Hoi- Da Nang
section
- Da Nang – Nha Trang
section
- Nha Trang – Ho Chi
Minh City section
1.726.2 km
PPP
Defined during project planning
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
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Kep-Ha Long-Cai Lan line
Firstly, franchise the development right of railway, depot in Cai Lan station
and port; call for investors to complete the project and develop the entire
line for the remaining sections
112.2 km
PPP
Defined during project planning
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
8
Ha Noi-Dong Dang line
Encourage to franchise the operation and development right of infrastructure
in the whole line or each work item
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PPP, state budget
Defined during project planning
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
9
Dong Anh-Quan Trieu
line Encourage to franchise the operation and development right of
infrastructure in the whole line or each work item
54.6 km
PPP, state budget
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2015-2020
Ministry of Transport >
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
10
Bac Hong-Van Dien line
Encourage to fracnchise the operation and development right of infrastructure
in the whole line or each work item
38.7 km
PPP, state budget
Defined during project planning
2015-2020
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PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
11
Kep-Luu Xa line
Encourage to franchise the operation and development right of infrastructure
in the whole line or each work item
55,7 km
PPP, state budget
Defined during project planning
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
...
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Cau Giat-Nghia Dan line
Encourage to frachise the operation and development right of infrastructure
in the whole line or each work item
30,5 km
PPP, state budget
Defined during project planning
2015-2020
Ministry of Transport >
PPP Board, Vietnam Railway
Administration, Vietnam Railway Corporation
13
Dieu Tri-Quy Nhon line
Encourage to franchise the operation and development right of infrastructure
in the whole line or each work item
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PPP, state budget
Defined during project planning
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration, Vietnam Railway Corporation
II
New railway
constructions
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1
Call for private sector
investment in new construction Dak-Nong-Chon Thanh-Vung Tau railway
182 km
BOT
USD 702 million in the first stage
2015-2020
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PPP Board, Vietnam
Railway Administration
2
Call for private sector
investment in relocation
Danang station
According to the research project
BOT
Usd 380 million
2015-2020
Ministry of Transport >
PPP Board, Vietnam
Railway Administration
...
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Call for private sector
investment in building the project of railway to Hai Phong international
gateway ports.
35,7 km
BOT
usd 1.554 million in the first stage
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration
4
Call for private sector
investment in upgrading and modernization of Hanoi - Ho Chi Minh City railway
line.
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BOT, ODA
2015-2020
Ministry of Transport
PPP Board, Vietnam
Railway Administration
-
Improve Hai Van Pass
railway route
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-
Trang Bom-Hoa Hung
railway project
68.483
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-
Upgrade Hanoi - Vinh
section to appropriate technical class
13.170
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Upgrade Nha Trang
– Ho Chi Minh City section to appropriate technical class
22.129
APPENDIX
2:
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No.
Content
Presiding agency
Drafting agency
Estimated time to complete
I. Law
1
Amend and Supplement the Law on Railways.
Vietnam Railway Department
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2016
II. Decree
1
Promulgate the
Government’s new Decree, defining the management, use and development of
national railway infrastructure property constructed by the State.
Ministry of Finance
Finance Department
2015
III. Circular
1.
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Vietnam Railway Department
Legal Department
2016
IV. Decision
1
Amend and supplement
the Prime Minister's Decision No. 84/2007 / QD-TTg dated June 11, 2007 on the
charge's method and levels of the rents for the railway transport
infrastructure.
Vietnam Railway Department
Finance > Department
2016
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Amend and supplement
the Ministry of Finance's Decision No. 1129 / QD-BTC dated May 27, 2014 , defining
the minimum rental prices of using the national railway infrastructure
constructed by the state.
Vietnam Railway Department
Finance Department
2015
V. Planning
1
Make plans to use the land
fund for railway construction, land allocated to the railway enterprises for
management; determine land use rights for railway.
Vietnam Railway Corporation
Infrastructure Department
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2
Make detailed plans of the
terminal, depot and goods yard on the national railway lines.
Vietnam Railway Department
Plan and investment Department
2015
VI. Provisions
1
Promulgate provisions and
provide guidelines of implementing the sample project contract and investment
for railway infrastructure sector PPP projects.
Vietnam Railway Department
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2015
Notes: Based on the contents of Appendix 1 and Appendix 2, agencies,
units shall research and register a specific time in program of building annual
legal documents, proposals, projects of Ministry of Transport.