Mobilizing the private sector investment in railway infrastructure
In order to gradually reduce the burden on the state budget, and meet the target of socio-economic development, industrialization – modernization of the country and restructure the railway sector investment, enhance private sector involvement investment ratio in the railway infrastructure commensuration with other transport fields, on December 24, 2014, the Minister of Transport signed the Decision No. 4907/QĐ-BGTVT dated December 24, 2014 of the Ministry of Transport approving the Project “Mobilizing the 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. Attract investors in construction, renovation, upgrade, and expansion of terminals in order to operate them in cooperation. Besides, 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.
For railway route operation, select railway routes or segments suitable for pilot franchise for railway operation, which is the basis for improvement of franchise for other railway routes. Depend on the extent of the franchise, investors shall be entitled to operate and develop the railway infrastructure for a certain period of time and be responsible for the infrastructure maintenance; ensure safety for train operation and social security on the routes. Grant franchise for operation shall be flexible and specific for each segment and each route.
This Decision takes effect on the signing date.