Mobilizing maximum resources for investment in railway infrastructure

The draft revised Railway Law is expected to create an important boost in mobilizing maximum investment resources for railway infrastructure. Not only does it remove long-standing bottlenecks in the field of urban railway investment, the draft also paves the way for realizing the goal of completing the urban railway network in Hanoi and Ho Chi Minh City by 2035.

On the afternoon of May 27, the National Assembly listened to Minister of Construction Tran Hong Minh present the draft Law on Railways (amended). The draft law aims to institutionalize the policy of developing modern and synchronous railways, overcome shortcomings, create new driving forces, mobilize resources, and simplify procedures.

According to Minister of Construction Tran Hong Minh, the development of the Railway Law (amended) aims to continue institutionalizing the Party and State's policies and guidelines on modern, synchronous, sustainable, focused and key railway development.

Minister of Construction Tran Hong Minh presents a report on the Draft Law on Railways (amended). (Photo: People's Army Newspaper)

Regarding infrastructure investment, the draft adds regulations to mobilize maximum local resources and economic sectors. Encourage organizations and individuals to participate in investment through various forms of contracts, exploiting land funds in the vicinity of stations. Localities are allowed to use the budget to participate in compensation, resettlement support, and investment in some national railway items.

To speed up investment, the draft allows the application of overall technical design (FEED design) instead of basic design. For planned urban railways, the provincial People's Committee can decide to invest immediately, without needing investment policy procedures. Minister Tran Hong Minh emphasized that this is a breakthrough solution to remove procedural bottlenecks for urban railways.

The draft also adds a provision that, for urban railway routes included in the planning approved by competent authorities, the Provincial People's Committee is allowed to immediately decide to prepare, appraise and decide on project investment without having to carry out procedures for preparing, appraising, deciding on investment policies and other procedures related to deciding on investment policies according to relevant laws.

The Minister of Construction said that adding this regulation is one of the breakthrough solutions to remove bottlenecks in investment procedures for urban railway systems in localities.

The draft strongly decentralizes power to local authorities in investing in and managing the operation of railway infrastructure. (Photo: Quochoi.vn)

Regarding the development of railway industry and human resources, the draft supplements regulations that railway construction investment projects and railway industrial works with bidding packages organized for international bidding must have conditions binding foreign contractors to transfer technology and train human resources for Vietnamese partners to master management, operation, exploitation, maintenance and gradually master technology.

Contractors and investors of railway construction investment projects and projects to purchase and build new locomotives and carriages must prioritize the use of products, goods and services that can be produced and supplied domestically in order to create conditions to attract maximum investment resources and develop the railway industry, thereby creating a large enough market to contribute to the development of supporting industries.

The Minister of Construction also said that this revision has cut 4 administrative procedures; revised the implementing subjects of 10 administrative procedures to create more convenience and only inherited 6 administrative procedures.

The draft strongly decentralizes the authority to local authorities in the investment and management of railway infrastructure operations. Some authority from the Government and the Prime Minister has been revised and assigned to the Minister of Construction and local authorities for implementation.

Source: https://thoidai.com.vn/huy-dong-toi-da-nguon-luc-dau-tu-ha-tang-duong-sat-213838.html