Resolution No. 172/2024/QH15 dated November 30, 2024 on the investment guideline of North-South high-speed railway project

NATIONAL ASSEMBLY OF VIETNAM --------	THE SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ---------------
Resolution No. 172/2024/QH15	Hanoi, October 11, 2024

RESOLUTION

ON THE INVESTMENT GUIDELINE OF NORTH-SOUTH HIGH-SPEED RAILWAY PROJECT

THE NATIONAL ASSEMBLY

Pursuant to Constitution of the Socialist Republic of Vietnam;

Pursuant to the Railway Law No. 06/2017/QH14, which is amended by Law No. 35/2018/QH14 and Law No. 16/2023/QH15;

Pursuant to the Law on Public Investment No. 39/2019/QH14, which is amended Law No. 64/2020/QH14, Law No. 72/2020/QH14 and Law No. 03/2022/QH15;

Pursuant to Resolution No. 29/2021/QH15 dated July 28, 2021 of the National Assembly on the Midterm Public Investment Plan for the 2021 - 2025 period;

 In consideration of the Government's Proposal No. 767/TTr-CP dated November 10, 2024, the Verification Report No. 3339/BC-UBKT15 dated November 12, 2024 of the Economic Committee of the National Assembly, Report No. 1112/BC-UBTVQH15 dated November 30, 2024 of the National Assembly Standing Committee on accepting, revising and explaining the investment guideline of the North-South high-speed railway project, related documents and opinions of National Assembly deputies;

HEREBY RESOLVES:

Article 1

Decision on the investment guideline of North-South high-speed railway project (hereinafter referred to as “Project")

Article 2

1. Objectives

Building a modern and uniform high-speed railway to satisfy transportation needs, creating an important driving force for rapid and sustainable socio-economic development, promoting advantages on the North-South economic corridor, ensuring effective connection between the East-West corridors and countries in the region, in conjunction with ensuring national defense, security and international integration, protecting the environment, responding to climate change, promoting the process of industrialization and modernization, contributing to realizing the objectives and tasks specified in the Documents of the 13th National Party Congress and the Resolutions of the Communist Party of Vietnam.

2. Scope, scale, form of investment:

a) Scope The project has a total route length of about 1.541 km starting at Ngoc Hoi station (Hanoi), ending at Thu Thiem station (Ho Chi Minh City), passing through 20 provinces and centrally affiliated cities including: Hanoi, Ha Nam, Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Dong Nai, Ho Chi Minh City;

b) Scale: Investment in a new double-track line with a gauge of 1.435 mm, design speed of 350 km/h, payload of 22,5 tons/axle; 23 passenger stations, 05 freight stations; vehicles, equipment; a high-speed railway for passenger transport, meeting dual-use requirements for national defense and security, and capable of transporting goods when needed;

c) Form of investement: Public investment.

3. Technology: Applying rail technology, electrification technology; ensuring modernity, synchronization, safety and efficiency.

4. Estimated total land use demand and displaced population:

a) The estimated total land use demand of the Project is about 10,827 ha, including: about 3.655 ha of land for rice cultivation, about 2.567 ha of forestry land and about 4.605 ha of other types of land in accordance with the land law. Where: about 3,102 ha is land for paddy cultivation with at least 02 harvests is; about 243 ha is special-use forest, about 653 ha is protective forest, about 1.671 ha is production forest;

b) The estimated displaced population: about 120.836 people.

5. Estimated total investment and capital sources:

a) The estimated total investment of the Project: 1.713.548 billion VND (one million, seven hundred and thirteen thousand, five hundred and forty-eight billion dong);

b) State budget capital allocated in midterm public investment plans and other lawful sources.

6. Implementation progress: prepare a feasibility report from 2025, strive to basically complete the Project by 2035.

Article 3

The Project applies the following specific and special mechanisms and policies:

1. During the implementation of the Project, the Prime Minister shall decide the following:

a) Issuing Government bonds to supplement the annual budget and investment plan for the Project in case the annually allocated State budget estimate is insufficient;

b) Mobilizing official development assistance (ODA) capital and foreign concessional loans to implement the Project without having to prepare a Proposal to use ODA capital and foreign concessional loans for the Project; applying the regulations of foreign donors in case Vietnamese law does not regulate such matter or specifies different from the regulations of the foreign donors;

c) Using funds obtained from the increase in revenues and decrease in expenses of annual central government budget expenditure (if any) and other lawful sources of capital for the Project the annually allocated State budget estimate is insufficient. The use of funds obtained from the increase in revenues and decrease in expenses does not have to be implemented in the order of priority as prescribed by the law on the State budget.

2. Capital shall be allocated for the Project during the midterm public investment planning periods; the capital allocated for each midterm public investment planning period is consistent with the progress of the Project and there is no limit on the portion of capital of the Project carried forward to the next midterm public investment planning period. The Prime Minister shall make decision on revision of the midterm public investment plan and the annual central government budget capital between ministries, central agencies and local authorities to allocate capital for the Project.

3. The Project is not subject to an appraisal of the capital balance capacity in accordance with the Law on Public Investment.

4. Regarding the development, use of land banks and added value from land in the vicinity of high-speed railway stations;

a) The provincial People's Committee shall prepare and revise zoning plans and detailed plans for the vicinity of railway stations to determine the location, boundaries and area of ​​ repossessed land. In the vicinity, the Provincial People's Committee is allowed to decide the planning, architecture, technical infrastructure, social infrastructure indicators, and spatial requirements other than those prescribed in national technical regulations, but must ensure that they meet the requirements for technical infrastructure and social infrastructure systems; adjust the use of land in the vicinity of railway stations to use land banks and added value from land;

b) In case there are new proposals that are different from the approved content approved urban planning and land use planning when preparing or revising the planning for vicinity of railway stations, the decision on approval of the planning for the vicinity shall prevail and it is not required to follow the procedure to revise the previously approved planning;

c) The provincial People's Council shall make decision on using the local government budget to execute an independent public investment project for recompense, support and resettlement in accordance with the planning for the vicinity of the railway station to create a land bank for auction for urban development in accordance with law;

d) Regarding the proceeds from operation of the land bank in the vicinity of the railway station after deducting related costs as prescribed, the provincial local government is allowed to retain 50% of the proceeds and transfer the remaining 50% to the central government budget to balance the state budget for investment in the Project.

5. Regarding mineral extraction for common construction materials used for the Project:

a) For mines supplying the Project with common construction materials that have been licensed and are still in operation, or have exceeded the mining period but are still undepleted and have not undergone mine closure procedures, the Provincial People's Committee shall:

- Adjust the mining reserves, extend the mining period, increase the capacity according to the Project's needs without having to (i) revise the provincial planning, (ii) prepare an revised mining investment project to carry out procedures for deciding or approving investment guideline, and (iii) carry out procedure for appraisal and approval of appraisal results of environmental impact assessment report, and issuance of environmental permit;

- Cease capacity expansion after having provided sufficient resources for the Project;

b) For mines included in the dossier on survey of construction materials used for the Project but have not been granted a mining license:

- The Provincial People's Committee shall make decision to adjust, add these mines to the geological and mineral management plan in the provincial planning without having to carry out the procedures for revision of the provincial planning; use the Project's reserves to organize land repossession, recompense, support, and resettlement of the mine area after it has been surveyed and undergone reserve and quality assessment according to the Project's requirements and other contents in accordance with law on geology and minerals for the purpose of allocating mines to organizations, individuals extracting minerals for the Project; manage, supervise the implementation process and manage after the completion of the Project;

- Organizations, individuals extracting minerals for the Project do not have to carry out the procedures for issuance of mining licenses for mines of minerals used as common construction materials included in the dossier on survey of construction materials used for the Project; do not have to establish a mineral exploitation investment project and prepare an environmental impact assessment report but have to make an environmental protection commitment including the following contents: listing construction items and activities that are likely to have a negative impact on the environment; identifying affected objects, sensitive environmental factors at the mining site; identifying, assessing, and forecasting the main environmental impacts, waste generated; scale and nature of waste; impacts on biodiversity, natural heritage, historical - cultural relics and other sensitive factors; works, measures to minimize environmental impacts corresponding to technical regulations applied to each waste source; identifying, assessing possible environmental incidents and plans to prevent and respond to incidents; solutions, lists, volumes, implementation plans, and budget estimates for environmental renovation and remediation;

- Organizations, individuals extracting minerals for the Project shall pay taxes, fees and fulfill other financial obligations as prescribed;

- Mineral extraction and use shall be carried out until Project completion and must be managed and supervised as prescribed by law;

c) In cases where the mines included in the dossier on survey of construction materials used for the Project have been depleted but the demand for construction materials of the Project have not been met, the investor shall take charge in conducting a survey, propose to addition of new mineral mines to the dossier on survey of construction materials used for the Project to the Provincial People's Committee; management, extraction, use of minerals at these new mineral mines are carried out in accordance with this clause;

d) Based on practical conditions, the Provincial People's Committee shall review, provide guides to organizations, individuals extracting minerals for the Project to independently assess the impact to river beds, banks and terraces for river bed sand and gravel mines located in river and stream section with high risk of landslides to ensure compliance with regulations on river bed sand and gravel management and protection of river beds, banks and terraces; inspect and control mineral use in accordance with law.

6. Regarding the construction solid waste disposal site and topsoil of land for paddy cultivation:

a) The Provincial People's Committee shall make decision on land repossession, recompense, support, and resettlement with respect to the construction solid waste disposal sites specified in the Project survey dossier and hand over the land to the contractor for the disposal of construction waste of the Project;

b) The Provincial People's Committee shall manage the construction solid waste disposal sites of the Project in accordance with land laws, laws on environment, and other relevant laws;

c) The Provincial People's Committee shall develop a plan for using the topsoil of dedicated land for paddy cultivation repossessed from the Project. The development of the plan for using the topsoil of dedicated land for paddy cultivation repossessed from the Project shall be carried out in accordance with laws on crop production.

7. Development of science, technology, and human resource training for the Project:

a) Organizations and individuals participating in scientific and technological activities for the Project are entitled to the following policies:

- Organizations and individuals leading scientific and technological activities for the Project may decide limited bidding, direct contracting, order placement to select suppliers of services, goods;

- Enterprises are entitled to benefits as high-tech enterprises as stipulated by the high-tech laws during the execution of scientific and technological tasks for the Project;

- Corporate income tax, personal income tax on the performance of scientific and technological tasks for the Project is exempt;

b) Organizations and individuals participating in high-tech human resource training for the Project are entitled to preferential policies as stipulated by the high-tech laws.

8. Regarding industrial development and technology transfer:

a) The Government shall stipulate criteria for selecting organizations and state-owned enterprises to assign tasks or other Vietnamese enterprises to place orders on railway industrial services and goods; research, apply, and receive technology transfer;

b) The Prime Minister shall compile the list of railway industrial services and goods to be provided by state-owned enterprises and organizations by assignment or by Vietnamese organizations and enterprises by order placement;

c) General contractors and contractors must prioritize the use of domestic products, goods, and services;

d) In case of contract packages open to international bidding, the bidding documents must include commitment conditions of the general contractor and foreign contractor on technology transfer and human resource training for Vietnamese partners to take control of the management, operation, and maintenance work; and gradually take control of the technology.

9. The authority with the competence to make investment decisions shall decide the division of Project into component projects, sub-projects when approving the Project. The division of Project into component projects, sub-projects does not have to comply with construction laws.

10. Regarding the authority to decide the revision of the investment guideline of the Project and modification of the Project:

a) During the time the National Assembly is not in session, the National Assembly shall authorize the National Assembly Standing Committee to review and decide the revision of the investment guideline of the Project, except for cases of increasing the total investment of the Project;

b) The Minister of Transport decides to modify the Project if: the revision of the planning directly affects the Project; the Project is affected by due to the impact of natural disasters, fires, or other force majeure factors after the Project's insurance period has expired; the price index during the Project execution is higher than the price index used for calculation of contingencies in the total investment of the Project.

11. Architectural designs of high-speed railway station projects do not have to be selected through an architectural design competition.

12. Regarding recompense, support, and resettlement:

a) Vietnam Electricity (EVN) shall take charge in organizing implementation of the sub-projects for the relocation of power works with voltages of 110 kV or higher;

b) The People's Committees of the provinces where the Project passes through shall construct a resettlement area for the Project based on the preliminary design dossiers in the Pre-feasibility study report for which the National Assembly has decided on the investment guideline;

c) The head of the competent authority shall decide whether to apply direct contracting for consulting service, non-consulting service and construction contract packages for recompense, support and resettlement. The procedures for direct contracting shall comply with the law on bidding;

d) In case of necessity, at the request of local authorities, the Project investor shall develop and send a regulatory policy framework for recompense, support and resettlement to the Prime Minister for decision.

13. The Project may have a Front - End Engineering Design (FEED) to replace the basic design in the feasibility report of the Project.

14. Regarding forest repurposing and suspension of use of forests:

a) The forest repurposing guideline shall be carried out in the phase of conducting a feasibility study of the Project. The Proposal of the forest repurposing guideline is a component of the feasibility report of the Project. The Project approval decision is also the Decision on the forest repurposing guideline;

b) The Government shall provide for the suspension of use of forests and the return of forests to carry out the construction of temporary works serving the Project.

15. Regarding the establishment of total investment and contract package estimates:

a) For existing work items that are not suitable or are not included in the system of construction norms and unit prices issued by competent authorities, the Project may apply the system of construction norms and construction prices of similar railway projects in the world and such values shall be converted to the time of calculation;

b) For items with costs that cannot be determined in accordance with Point a of this Clause, it is allowed to determine costs in accordance with the investment capital ratio of similar railway projects in the world and such values shall be converted to the time of calculation;

c) For costs that are not yet regulated by Vietnamese law or have been regulated but are not suitable for railway projects with similar nature and implementation conditions, costs of railway projects with similar nature and implementation conditions in the world may be applied.

16. After the National Assembly issues the investment guideline decision, the Project shall be added to the list in the midterm public investment plan and be allocated capital in the annual public investment plan to carry out pre-implementation activities, including:

a) Expenditure targets of the investor, the Project Management Board; training of human resources of state agencies, project management units, operating units, training facilities, and research facilities;

b) Payment for consulting services for the Project;

c) Recompense, support, and resettlement tasks specified in Points b and c of Clause 12 of this Article;

d) Publicity-related tasks and other tasks serving the preparation of investment in the Project.

17. Mechanisms and policies to ensure the anti-corruption, waste and misconduct prevention and combat:

a) When selecting contractors for EPC packages and contract packages for consulting services using foreign contractors, the composition of the Appraising team shall comply with the law on bidding and include representatives of the Ministry of National Defense, the Ministry of Public Security, the Ministry of Planning and Investment, the Ministry of Finance, the Government Inspectorate and the State Audit Office;

b) The investor shall send the total investment dossier completed in accordance with appraisal report of the investment decision-making authority to the State Audit Office to conduct an audit as a basis for approving the Project.  The State Audit Office shall send the audit results to the investment decision-making authority within 30 days from the date of receipt of the complete audit application.

18. During the time the National Assembly is not in session, the National Assembly shall authorize the National Assembly Standing Committee to review and decide the amendments to specific and special mechanisms and policies for the Project.

19. The Government shall issue a Decree detailing the contents, procedures, and authority to implement specific and special mechanisms and policies of the Project.

Article 4

1. The Government shall be accountable to the National Assembly for:

a) Implementation and management of the Project investment in accordance with this Resolution and relevant laws; ensuring the Project is on schedule and of good quality;

b) Managing and using capital and resources economically and effectively, preventing corruption, waste and misconduct; carrying out a publicity campaign to obtain the people’s support for the Project’s investment guideline;

c) Directing the management, operation and maintenance to ensure safety and efficiency.

2. During the operation process, based on proposals from local authorities, the Prime Minister shall invest in additional stations in urban areas with high transportation demand.

3. Local authorities and EVN are accountable to the Government for ensuring the progress and quality of tasks of recompense, support, resettlement and sub-projects assigned.

4. The specialized project management board shall be brought to full strength to be capable for investment management of the Project

5. Vietnam Railways shall take over the management and maintenance of infrastructure and organize operation; mobilize investment in vehicles from other enterprises; continue to restructure and develop a model of management and maintenance of infrastructure ensuring unity, modernity and efficiency; participate in the development of the railway industry.

Article 5

1. The Vietnam Fatherland Front and its member organizations, within their jurisdiction, shall carry out a publicity campaign to obtain the people’s support for the Project’s investment guideline and supervise the implementation of the project in accordance herewith.

2. The National Assembly Standing Committee, the Economic Committee, the Ethnic Council, other National Assembly Committees, National Assembly delegations, and National Assembly deputies, within their jurisdiction, shall supervise the implementation of the project in accordance herewith.

3. The State Audit Office, within their jurisdiction, shall audit the implementation of the Project in accordance herewith.

This Resolution was ratified in the 8th National Assembly’s session by the 15th National Assembly of the Socialist Republic of Vietnam, on November 30, 2024.

PRESIDENT OF THE NATIONAL ASSEMBLY Tran Thanh Man