Request to clarify investment level of more than 67 billion USD for North-South high-speed railway

The State Appraisal Council has requested the Ministry of Transport to review the total investment of more than 67 billion USD for the North-South high-speed railway project to calculate correctly and appropriately.

The above content is stated in the conclusion dated October 15 of the State Appraisal Council on the pre-feasibility study report of the North-South high-speed railway project.

In mid-September, the 10th Central Conference of the 13th tenure agreed on the investment policy for the entire high-speed railway project (350 km/h) on the North-South axis. According to the proposal of the Ministry of Transport, the North-South high-speed railway project has a total preliminary investment of more than 1.7 million billion VND (equivalent to 67.34 billion USD), a double-track line with a gauge of 1,435 mm.

In today's announcement, the State Appraisal Council requested the Ministry of Transport to review the total investment and the scale of investment for each item based on correct, sufficient and appropriate calculations at the stage of preparing the Pre-Feasibility Study Report. "This must be analyzed based on the framework of standards applied in practice to similar projects in the world and in accordance with the natural, economic and social conditions of Vietnam," the Appraisal Council noted.

The Ministry of Transport also needs to review the assessment of the project's socio-economic and financial efficiency. This agency must clarify the mobilization plan and the ability to balance capital for the project. This must ensure feasibility and compliance with regulations.

Previously, the Prime Minister requested agencies to review and propose specific, special mechanisms for the project, including resource mobilization and procedures for land, site clearance, and construction materials. This must follow the motto of "open mechanism, simplified procedures, and shortened construction".

Regarding this content, the State Appraisal Council requested the Ministry of Transport to review and clarify special mechanisms and policies to report to the National Assembly for consideration and decision. Other necessary mechanisms and policies that need to be clarified include support for enterprises in technology transfer, ODA loans, low-cost foreign incentives, as well as adjustments to urban planning and land use, etc.

The high-speed railway line is expected to start at Ngoc Hoi Station (Hanoi) and end at Thu Thiem Station (HCMC). The project will pass through 20 provinces and cities, with 23 passenger stations and 5 freight stations. This route will transport passengers, meet dual-use requirements for national defense and security, and can transport freight when necessary. In the announcement on October 6, the Government Standing Committee requested agencies to closely follow the investment policy for the entire line with a design speed of 350 km/h. The route needs to be as straight as possible to reduce costs, ensure operating speed, create new development space and save costs.

Therefore, the State Appraisal Council requested the Ministry of Transport to explain in detail the technical requirements of the route with a speed of 350 km/h in the operation of container freight trains. In addition, this agency needs to carefully review the forecast data on transport demand (passengers, goods) on the North-South corridor. They must clarify the scale of the station to meet ancillary activities such as parking lots, connections with other means of transport... The transport management agency is also requested to evaluate the advantages of public investment compared to other forms, especially for sections that do not have advantages in railway development.

Speaking to the press earlier this month, Deputy Minister of Transport Nguyen Danh Huy said that a design speed of 350 km/h would be more efficient. Mr. Huy analyzed that the train speed of 250 km/h was developed about 50 years ago and was popular about 25 years ago, suitable for short and medium routes. Speeds of 350 km/h and higher are the development trend in the world, suitable for long routes of 800 km or more, focusing on many urban areas with high population density such as the North-South corridor.

The North-South high-speed railway project will be considered for approval of the project investment policy during the 8th session of the 15th National Assembly, opening on October 21.

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