Proposing many breakthrough policies to attract resources for railway construction

TPO - The draft Law on Railways (amended) aims to encourage the diversification of investment resources from localities and other economic sectors through PPP forms such as BOT, BT...

On the afternoon of May 27, Minister of Construction Tran Hong Minh, authorized by the Prime Minister, submitted to the National Assembly the Draft Law on Railways (amended), with many breakthrough reform contents.

The bill is built on the spirit of simplifying administrative procedures, enhancing decentralization, and at the same time creating a favorable legal corridor to promote the development of infrastructure, transportation and railway industry.

Minister of Construction Tran Hong Minh. Photo: Nhu Y

According to Minister Tran Hong Minh, the draft Law focuses on five important innovation groups: Investment in infrastructure development; infrastructure management and exploitation; transportation activities; connecting transportation modes; and industrial and human resource development.

One of the outstanding new points is the encouragement of diversifying local investment resources and other economic sectors through PPP forms such as BOT, BT...

The bill allows localities to use their budgets to invest in national railway infrastructure projects. This is an important step forward, helping localities to be more proactive in promoting urban railway projects.

In particular, investment procedures are also simplified by allowing the application of front-end engineering design (FEED) instead of basic design, and at the same time, provincial People's Committees are allowed to decide on investment in urban railway projects without having to carry out investment policy procedures as before.

These amendments are expected to speed up the implementation of metro lines in Hanoi and Ho Chi Minh City, contributing to the realization of Conclusion 49-KL/TW of the Politburo on urban transport development.

In addition, the new draft law also emphasizes the role of connecting railways with other modes of transport. Large airports and seaports are required to have plans to connect with railways.

Investors in port projects must also reserve land for railway infrastructure. This is a necessary step in the context of Vietnam's logistics costs remaining high compared to the region.

In addition, the bill also expands service and commercial activities in the station area, allowing effective exploitation of adjacent land funds (TOD), while encouraging the development of international intermodal transport by rail - an effective solution to increase the competitiveness of Vietnamese goods.

Cut 20% of administrative procedures , 33% of business conditions

Another notable new point is the inclusion of a number of railway products in the list of high technologies prioritized for development, while requiring foreign contractors to transfer technology and train human resources for the Vietnamese side.

In addition, businesses in the industry will be given priority to use domestic products if they meet technical requirements, thereby creating momentum for the development of supporting industries.

Chairman of the Committee for Science, Technology and Environment Le Quang Huy. Photo: Nhu Y

Compared to the 2017 Railway Law, the new draft has cut 20% of administrative procedures and 33% of business conditions. Thereby, only 6 important administrative procedures are retained, while strongly decentralizing to localities in granting construction permits, managing operations and registering vehicles.

This decentralization is expected to reduce the burden on the Government, while promoting the initiative of provincial and municipal authorities.

After reviewing, the Committee on Science, Technology and Environment basically agreed with the contents of the innovation. However, the Committee requested further clarification of some contents on transport connectivity, planning criteria and policies on exploiting railway station land funds.

In addition, the legalization of a number of specific mechanisms being piloted under the National Assembly resolution also needs to be reported to the competent authority for comments to ensure transparency and constitutionality.

Regarding the mechanism to support businesses in transporting for special missions and social security, the auditing agency proposed clarifying specific criteria for determining reasonable costs and the cost compensation process for businesses, including how to verify and check these costs.

The auditing agency also noted the addition of regulations on information disclosure during the process of financial support for enterprises performing special tasks and social security.

Luan Dung

Source: https://tienphong.vn/de-xuat-nhieu-chinh-sach-dot-pha-nham-thu-hut-cac-nguon-luc-lam-duong-sat-post1745971.tpo