Ensuring modernity, synchronization and sustainability
According to the Draft Law on the Capital (amended), investment in urban railway development in Hanoi City is given priority to apply the urban development model according to the public transport orientation (TOD) and ensure modernity, synchronization and sustainability. The establishment, decision and management of urban railway system planning and TOD areas are carried out according to the following provisions and other relevant legal provisions.
Based on the Capital Planning and the Capital Master Plan, the Hanoi People's Committee is allowed to adjust the land use functions for the TOD area to exploit land funds and increase the added value of land in the TOD area, develop urban railways, and develop urban areas in the TOD area. In the TOD area, the Hanoi People's Committee is allowed to decide to apply architectural planning criteria, technical infrastructure, social infrastructure, space requirements and land use other than those specified in the national technical regulations on construction planning, ensuring compliance with the Capital Master Plan.
For areas with approved zoning plans or equivalent, but when preparing the route plan, location of urban railway construction works and planning for TOD areas, the organization assigned to prepare the plan and planning has new proposals, different from the approved planning content, submitted to the City People's Committee for consideration and decision. This approval document or decision has the value of replacing the relevant area planning content in the approved zoning plan or equivalent and does not require the procedure to adjust the entire previously approved planning project.
The Hanoi People's Council decides on the investment policy for the urban railway project following the TOD model according to the investment phases in each stage; decides on separating the compensation, support, and resettlement contents into independent projects. The Hanoi People's Committee decides on the investment in land acquisition, compensation, support, resettlement projects and component projects for urban railway lines. The contents, order, procedures, and authority to appraise the projects specified in Clause 3 and Clause 4, Article 31 are implemented similarly to Group A projects under the authority of the provincial People's Council according to the law on public investment. The Hanoi People's Committee is allowed to decide on the application of standards and norms for the city's urban railway lines.
In the TOD area, Hanoi City is allowed to collect and use 100% of the following revenues to reinvest in the construction of urban railways, public transport systems, and technical infrastructure connecting to the urban railway system: a) Revenue from increased construction floor area of civil construction projects due to increased land use coefficient according to TOD area planning; b) Revenue from exploiting added value from land in the TOD area; c) Infrastructure improvement fees.
The Hanoi People's Council shall detail the management, operation and exploitation of urban railways and TOD areas; methods for determining collection levels, authority, order and procedures for collecting fees for the fees specified in Clause 7 of this Article.
Responding to urgent needs for public transport development in the capital
On March 22, 2024, the Law Committee of the National Assembly reported on a number of major issues in explaining, accepting, and revising the Draft Law on the Capital (amended). According to the report, TOD development is a new model, currently being piloted in Ho Chi Minh City according to Resolution No. 98/2023/QH15 of the National Assembly.
Based on the opinions of National Assembly deputies, consulting with experts and managers, and to ensure feasibility, conformity with the goals and roadmap for the development of the urban railway system of Hanoi, the Draft Law was absorbed and revised in the direction of focusing on decentralizing power to the city in adjusting land use functions in TOD areas, selecting and applying standards and norms for urban railway lines and some specific policies in investment, construction, management, exploitation and operation of the urban railway system and TOD areas, etc. (clauses 2, 4, 6, 7, 8, Article 31).
To simplify administrative procedures, shorten project preparation time, and increase local autonomy, the Draft Law submitted by the Government proposes to assign the Hanoi People's Council the authority to decide on investment policies for urban railway projects regardless of capital sources and total investment (Clause 3, Article 31). Incorporating the opinions of the National Assembly Standing Committee, the Draft Law has been revised in the direction that urban railway projects following the TOD model will be decided by the Hanoi People's Council on investment policies if only using the city budget, with no limit on total investment.
During the discussion, some opinions said that urban railway projects and TOD projects often have very large total investment; local budgets can hardly guarantee it and need support from the central budget and ODA capital, preferential loans from foreign countries. These are all contents that require permission and decision from the National Assembly and cannot be completely decentralized to localities.
Therefore, these opinions propose to regulate that in case of using a combination of public investment capital from the Central Government, the National Assembly will consider and decide on the investment policy for the overall project of urban railway construction in the direction of TOD of Hanoi according to investment phases, in which the maximum total amount of central budget needed for investment, ODA capital, loans, other mobilized capital that can be used, along with a number of specific mechanisms and policies to invest in construction, management, operation of the urban railway system and urban development in the TOD area will be determined.
Based on the resolution of the National Assembly, the Hanoi People's Council will decide on the investment policy for TOD projects for each specific railway line. The decision on the investment policy for the overall TOD project also needs to be carried out according to special procedures compared to the provisions of the Law on Public Investment to ensure feasibility and meet the urgent requirements for public transport development in Hanoi.
"The TOD mechanism brings great benefits to people, businesses, the State and the overall development of the Capital. TOD will create a mechanism for Hanoi to soon connect with new growth spaces, promoting the potential of other key projects being implemented. Notably, TOD is not only a mechanism to promote endogenous resources for infrastructure development but also an outstanding mechanism in harmonizing the interests of all parties when exploiting added value from land.
The TOD mechanism as stipulated in the Draft Law on the Capital (amended) will create a basis for accelerating the completion of the urban railway network of the Capital, contributing to realizing the vision of building Hanoi into a smart, modern, green, clean, and beautiful city as set out in Resolution 15-NQ/TW of the Politburo" - Dr. Le Duy Binh - Economic expert, CEO of Economica Vietnam
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