With the target to gradually reduce the burden on the state budget, and meet the target of socio-economic development, industrialization – modernization of the country; to restructure the railway sector investment, enhance private sector involvement investment ratio in the railway infrastructure commensuration with other transport fields; the Minister of Transport issued the Decision No. 4907/QD-BGTVT dated December 24, 2014 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. Investors shall be attracted in construction, renovation, upgrade, and expansion of terminals in order to operate them in cooperation. Besides, the State shall have the mechanism and supportive policies in the construction of a part or the whole project in the form of public-private partnerships (PPP), built – owned – operate – transfer (BOOT).
For railway route operation, the Minister also stressed, they shall 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.
This Decision takes effect on the signing date.
