DECREE

ON MANAGEMENT, USE AND OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE

Pursuant to the Law on Government dated June 19, 2015;

Pursuant to the Law on Management and Use of Public Property dated June 19, 2015;

Pursuant to the Law on Railway dated June 16, 2017;

At the request of Minister of Finance;

The Government promulgates the Decree on Management, Use and Operation of National Railway Infrastructure.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree sets forth management, use and operation of national railway infrastructure invested and managed by the State.

Article 2. Regulated entities

1. Railway authorities.

2. Authorities designated to manage national railway infrastructure (hereinafter referred to as “managing agencies”); wholly state-owned enterprises assigned to operate national railway infrastructure as prescribed in point c, clause 1, Article 5 hereof.

3. Agencies, units and enterprises which are designated to use or operate national railway infrastructure.

4. Other entities related to management, use and operation of national railway infrastructure.

Article 3. Principles of management, use and operation of national railway infrastructure.

1. All national railway infrastructures shall be handed over by the State to eligible managing agencies and operators as prescribed by laws.

2. State management of national railway infrastructure shall be consistent and present clear decentralization, responsibilities of each regulatory agency and responsibilities for cooperation between the regulatory agencies; and separation between roles of regulatory agencies and the business lines of the enterprises.

3. The operation of national railway infrastructure shall comply with the market mechanism and shall be effective.  The State encourages private sector involvement to mobilize social resources to maintain, develop and operate national railway infrastructure. 

4. The physical national railway infrastructure and its value shall be reckoned up and accounted adequately; those at high risks of facing natural disasters, conflagration and other force majeure events are eligible for finance risk management through insurance or other instruments as prescribed by laws of the state.  

5. The management and use of national railway infrastructure shall be disclosed and be transparent; there must be consistent and focused management of railway transportation to ensure clear, organized, safe, accurate and effective national railway operation; every violation against property management and use shall be dealt with in a timely and strict manner as prescribed by laws.

Chapter II

MANAGEMENT, USE AND OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE

Section 1. MANAGEMENT, USE AND OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE

Article 4. List of national railway infrastructure

1. The national railway infrastructure shall include the land area associated with the infrastructure and shall be divided into two types including the infrastructure associated directly with the train operation and the infrastructure not associated directly with the train operation.

2. The national railway infrastructures associated directly with the train operation are the railway works or railway items or other supporting railway works which serve the train operation, customer service activities and activities in loading and unloading cargos, including:

a. The national railways, bridges, culverts, embankments, level crossing, fences separating the national railways and the roads.

b. Railway station (the railways built in the station or the roads built in the station for serving the train operation; waiting rooms, warehouses, yards for storing the cargos transported by railway and related directly to train operation; control rooms, equipment rooms where signaling and telecom equipment is installed, platforms, railway roofs, platform crossings, overpasses for station's customers, guard rooms).  

c. Depot (is a place where trains are housed for maintenance, repair and other professional procedures are carried out).

d. Control rooms at the management centers of national railway transportation.

dd. Water supply and drainage systems; telecom and signaling systems; electricity supply systems which are associated directly with the train operation.

e. Contractors for construction of bridges, roads, national railway signaling systems, national railway signaling installations, bridge watch, tunnel watch and crossing watch posts.

3. The national railway infrastructures which are not associated directly with the train operation are railway works, railway items or other supporting works which are not associated with the infrastructure specified in clause 2 of this Article, including:

a. Internal roads within the railway station, not serving the train operation;

b. Station square.

c. Warehouses and yards which are not associated directly with the train operation.

d. Other service and commercial facilities (for selling products, resting and other services) in the national railway stations.

dd. Working offices of regulatory agencies in the railway stations.

e. Other works and items which are not associated directly with the train operation.

4. The national railway infrastructures which are associated directly with national defense and security specified in clause 1, clause 2, clause 3 of this Article shall be determined in accordance with the law on protection of important works associated with national defense and security.

5. During the operation process, if it is required to adjust the infrastructure classification between the groups specified in clause 2, clause 3 of this Article, the Prime Minister shall consider approving the adjustments as requested by the Minister of Transport and the Ministry of Finance.

Article 5. Handing over the management of national railway infrastructure

1. The Prime Minister decides to:

a. Hand over the national railway infrastructure to the railway infrastructure enterprises in form of investment of state capital in enterprises as requested by the Minister of Transport and other relevant agencies..

b. Hand over the national railway infrastructure to the agencies designated to manage the infrastructure specified in clause 2, Article 2 hereof (the regulatory agencies helping the Minister of Transport to carry out state management of railway) as requested by the Minister of Transport and other relevant agencies regarding the infrastructure associated with national defense and security and the property formed from projects subjected to the Prime Minister’s decision on investment..

c. Hand over the national railway infrastructure to the wholly state-owned enterprises assigned to operate national railway infrastructure, exclusive of the state capital portion of the enterprises.. 

Based on the actual process of managing and using national railway infrastructure, if this infrastructure must be handed over to the wholly state-owned enterprises assigned to operate national railway infrastructure, exclusive of the state capital portion within a certain period of time, the Ministry of Transport shall take charge and cooperate with the Ministry of Finance and relevant agencies to plan and send a scheme to the Prime Minister for consideration and approval.  The management, use and operation of the infrastructure which are handed over to the enterprises shall be carried out in accordance with Article 99 of the Law on Management and Use of Public Property; the Scheme approved by the Prime Minister shall comply with the regulations hereof and other relevant regulations; the Ministry of Transport shall promulgate the regulations on cooperation between the enterprises designated to manage the infrastructure and the regulatory agencies designated to perform state management of railway activities in order to manage, use and operate the infrastructure as prescribed by laws of the state.

2. The Minister of Transport shall decide to hand over the national railway infrastructure which is not specified in the regulations in clause 1 of this Article to the managing agency mentioned in clause 2, Article 2 hereof.

3. The application documents requesting the handover of management to the managing agency mentioned in point b, clause 1 and clause 2 of this Article shall consist of:

a. An application form of the managing agency: 01 original.

b. A record of infrastructure classification or dossier of infrastructure facilities being handed over or brought into operation: 01 original.

c. A list of infrastructure facilities to be handed over (description, quantity, state, input value, residual value): 01 original.

d. Other relevant documents (if any): 01 copy.

4. The procedures for handing over the national railway infrastructure to the managing agencies mentioned in point b, clause 1 and clause 2 of this Article:

a. Within 12 months from the date on which this Decree takes effect (in case of existing infrastructure) or 60 days from the date on which the handover of national railway infrastructure is completed and put into operation (in case of newly invested or procured infrastructure), the Ministry of Transport shall direct the managing agencies mentioned in clause 2, Article 2 hereof to cooperate with the agencies using the infrastructure in reviewing, classifying, valuing the infrastructure, and then send 01 set of application documents requesting the handover of infrastructure specified in clause 3 of this Article to the Ministry of Transport.  The funding for the review and classification of infrastructure shall be financed from the state budget as prescribed in the law on state budget.

b. Within 30 days from the date on which the completed application is received, the Minister of Transport shall consider approving the handover of national railway infrastructure within its authority.

c. Within 30 days from the date on which the completed application is received, the Minister of Transport shall send a consultation request (enclosed with copies of the dossier specified in clause 3 of this Article) to relevant agencies for getting their opinions on the plan for handing over the management of national railway infrastructure which is under the Prime Minister’s decision.

Within 30 days, from the date on which the completed application is received, the relevant agencies shall provide their opinions within their competence on the plan for handing over the management of national railway infrastructure.

Within 30 days from the date on which the opinions from relevant agencies are received, the Minister of Transport shall send a document (enclosed with a copy of the dossier specified in clause 3 of this Article and the opinions of relevant agencies) to the Prime Minister for him to consider approving the handover.

d. The main contents of the handover decision include: Name of the managing agency; a list of infrastructure facilities (description, quantity, state, input value and residual value); and the implementation responsibilities.

dd. Within 30 days from the date on which the competent authority's decision on handing over the management of infrastructure is received, the Ministry of Transport shall direct the handover and receiving of national railway infrastructure as prescribed.  The entrusting of facilities shall be recorded in writing, using form No. 01 in Appendix hereto.

5. The procedures for handing over the national railway infrastructure to the wholly state-owned enterprises, in form of investment of state capital in enterprises, shall be carried out in accordance with the law on management and use of state capital invested in the enterprises' production and business, special law on railway and other relevant laws of the state.

Article 6. Management of national railway infrastructure counted as state capital portion of the enterprise

1. The management and use of national railway infrastructure counted as state capital portion in enterprises shall be carried out in accordance with the regulations of the law on management and use of state capital invested in enterprises' production and business, special law on railway and relevant laws.

2. The valuation of national railway infrastructure used for determining the state capital portion in enterprises shall be carried out in accordance with the law on management and use of state capital invested in enterprises’ production and business, law on prices and other relevant laws.  

Section 2. DOSSIER OF MANAGEMENT AND ACCOUNTING OF RAILWAY INFRASTRUCTURE

Article 7. Dossier of management of national railway infrastructure

1. The dossier of management shall consist of:

a. Documentation relating to the forming of and changes to the national railway infrastructure as prescribed in the regulations hereof and other relevant laws of the state.

b. A declaration and a report on management, use and operation of national railway infrastructure as prescribed in Article 27 hereof.

c. Railway infrastructure database prescribed in Article 28 hereof.

2.  Managing agencies shall:

a. Prepare dossiers of infrastructure facilities within their scope of management.

b. Manage and maintain adequate dossiers of infrastructure facilities under their management and send required reports to the Ministry of Transport and the regulatory authorities as prescribed in this Decree.

Article 8. Accounting of national railway infrastructure

1. Any national railway infrastructure which is structurally-independent or a system combining individual parts intended for performing one or certain functions is considered as subject matter to be recorded.

If one system is handed over to multiple managing agencies, the subject matter to be recorded shall be the part of infrastructure delivered to each agency.

2. The managing agencies shall:

a. Set up accounting book and apply accounting for national railway infrastructure as prescribed in the law on accounting and the regulations hereof. 

b. Make annual reports on the increase or decrease in quantity and the depreciation of national railway infrastructure as prescribed in law regulations.

3. The input value and residual value of national railway infrastructure shall be determined in accordance with the following principles:

a. If the national railway infrastructure is operated before this Decree comes into effect and its input value or residual value are known, such value shall be recorded in the accounting books; if the infrastructure’s input value or residual value remains unknown, the conventional price based to determine its input value shall be recorded in the accounting books; this conventional price shall be determined by the Minister of Transport.

b. As for the national railway infrastructure which is completed and brought into operation from the effective date of this Decree, its value determined in procurement or settlement shall be recorded in the accounting books as prescribed.

c. If the national railway infrastructure is newly built and brought into operation but its final accounts have not been approved by the competent authorities, its provisional input value shall be recorded in the accounting books.  The provisional input value in this case shall be selected according to the following order of precedence: proposed value in the final accounts; value stated in the taking-over A-B; the estimated value of the approved project.  If the final accounts are approved by the competent authorities, the managing agencies shall adjust the above value as prescribed in the law on accounting.

d. If the national railway infrastructure, during the operation period, is upgraded and expanded in accordance with the project approved by the competent authorities, an increase in value shall be recorded.

4. The Ministry of Finance shall take charge and cooperate with the Ministry of Transport to provide regulations on accounting and calculations of the depreciation of national railway infrastructure.

Section 3. MAINTENANCE OF NATIONAL RAILWAY INFRASTRUCTURE

Article 9. Maintenance of national railway infrastructure

1. The national railway infrastructure shall be maintained in accordance with the regulations hereof and other relevant regulations, shall comply with the prescribed procedures, plans and standards to keep it in good conditions for ordinary and safe operation.

2. Methods of maintenance of national railway infrastructure:

a. Performance-based maintenance:

Performance based maintenance is the maintenance carried out in accordance with the pre-determined quality standards within a specific time and with a certain amount of money specified in the Economic Contract. 

The managing agencies shall determine the fixed price of maintenance for each facility under its management and submit this price to the competent authorities for approval.  The fixed price of maintenance for national railway infrastructure shall be determined according to the economic and technical norm approach or average cost approach in the last 03 consecutive years plus inflation (if any) or the combination of both approaches.

The Ministry of Transport shall stipulate the criteria for supervising and inspecting the maintenance of national railway infrastructure based on its quality.

b. Quantity-based maintenance:

Quantity-based maintenance is the maintenance and payment made in accordance with the workload which has been performed in reality.

3. The Ministry of Transport shall decide or designate competent authorities to choose which maintenance approach is used as specified in point a, b, clause 2 of this Article associated with the maintenance of national railway infrastructure specified in this Decree, law on quality management and construction maintenance, special law on railway and relevant laws to ensure economical and effective factors.

4. The selection of maintenance provider for national railway infrastructure under the approach specified in clause 2 of this Article shall be carried out in accordance with the law on bidding, special law on railway and relevant laws.

The selection of maintenance providers for the cases specified in point a, b and c, clause 5 of this Article shall be carried out in accordance with relevant laws.

5. The funding for maintenance of national railway infrastructure shall be financed from the state budget as prescribed in the law on state budget and from other sources as prescribed by laws, unless:

a. The national railway infrastructure has been counted as state capital portion of the enterprise.

b. The right to operate national railway infrastructure has been leased to an operator which is obliged to carry out the maintenance as prescribed in the contract.  

c. The right to operate the national railway infrastructure has been transferred, within a specific time, to the transferee which is obliged to carry out the maintenance as prescribed in the contract. 

Article 10. State budgetary estimate of expenditures on the maintenance of national railway infrastructure

1. Procedures for preparing and giving budgetary estimates of expenditures on maintenance of national railway infrastructure shall be carried out in accordance with the law on state budget.

a. Based on the technical standards, technical regulations, economic and technical norms, unit prices, quantity of workload to be performed and the maintenance plan which is approved by the competent authorities, the managing agencies shall take charge and cooperate with the relevant agencies or enterprises to prepare the state budgetary estimate of expenditures on maintenance of railway infrastructure (except the cases specified in point a, b and c, clause 5, Article 9 hereof) and submit this estimate to the Ministry of Transport.

b. The Ministry of Transport shall review the budgetary estimate of expenditures on maintenance of national railway infrastructure in terms of priority; include this estimate in the annual state budget estimate and send it to the Ministry of Finance as prescribed in the law on state budget.

c. On the basis of the competent authority’s decision to provide state budgetary estimate, the Ministry of Transport shall provide this estimate, inclusive of the maintenance costs for national railway infrastructure, to the managing agency.

d. The managing agency shall initiate the budgetary estimates of expenditures on maintenance of railway infrastructure as prescribed by laws.

2. Procedures for preparing and providing budgetary estimates of 3-year or 5-year expenditures on the maintenance of national railway infrastructure shall be carried out in accordance with the law on 3-year and 5-year financial plans.

Section 4. OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE

Article 11. Operation methods and revenues sources from national railway infrastructure

1. Operation methods of national railway infrastructure:

a. The managing agencies shall operate the national railway infrastructure directly.

b. National railway infrastructure lease.

c. National railway infrastructure concession within a specific term.

2. The national railway infrastructure lease and concession within a specific term shall ensure uniformity in operation and ensure that the management of the regulatory agency is related to the national railway operation.

3. The revenue sources from the national railway infrastructure include:

a. Fees and charges in compliance with the law on fees and charges and other relevant laws.

b. Revenues earned from prices for using and providing services as prescribed by laws.

c. Revenues earned from national railway infrastructure lease or concession within a specific term as prescribed in this Decree.

4. As for the national railway infrastructure serving public interests but not applying the operation methods specified in clause 1, clause 3 of this Article, the managing agencies shall manage and use this infrastructure as prescribed; it is not required to prepare and submit an operation scheme to the competent authorities for approval as prescribed in this Section.  The Minister of Transport shall make a list of national railway infrastructure under his management to serve the public interests but not apply any of the methods specified in clause 1, clause 3 of this Article in consideration of the managing agency’s request.

Article 12. The managing agencies operating the national railway infrastructure directly

1. The managing agencies are designated to operate the infrastructure directly in the following cases:

a. National railway infrastructure is related to national defense and security. 

b. The method for operating the infrastructure is proved to be more successful compared to the method specified in point b, point c, clause 1, Article 11 hereof.

c. There are no maintenance providers register for the methods specified in point b, c, clause 1, Article 11 hereof.

2.  The authority to approve the Operation Scheme:

a. The Prime Minister shall consider approving the operation schemes of national railway infrastructure which are related to national defense and security or of the property formed from the project subjected to the Prime Minister’s decision, as requested by of the Minister of Transport, the Ministry of Finance and relevant agencies.

b. The Minister of Transport shall consider approving the Operation Schemes which are not specified in point a of this clause.

3.  Application for approval for Operation Scheme shall include:

a. An application form requesting the approval for Operation Scheme: 01 original.

b. An Operation Scheme, using form No. 07 in Appendix hereto: 01 original.

c. Other relevant documents (if any): 01 copy.

4. Preparation and approval for the Operation Schemes:

a. The managing agencies shall prepare and send 01 application dossier for requesting the operation of national railway infrastructure as prescribed in clause 3 of this Article, to the Ministry of Transport.

b. Within 30 days, from the date on which the completed application is received, the Minister of Transport shall consider approving the Operation Scheme within his authority or provide explanation in writing if the Operation Scheme is refused.

c. The Ministry of Transport shall send a request for consultation enclosed with copies of the dossier specified in clause 3 of this Article to the Ministry of Finance and relevant agencies regarding the infrastructure subjected to the Prime Minister’s decision.

Within 30 days, from the date on which the completed application is received, the relevant agencies shall provide their opinions within their competence about the Operation Scheme in question.

Within 30 days from the date on which the opinions from the Ministry of Finance and relevant agencies are received, the Minister of Transport shall send a report on the plan in question (enclosed with the copies of the dossier specified in clause 3 of this Article and the opinions of relevant agencies) to the Prime Minister; the Prime Minister shall consider approving the Operation Scheme or provide guidance if the Operation Scheme is refused.

5. According to the Operation Scheme approved by the competent authority, the managing agency shall operate the national railway infrastructure as per law. 

Article 13. National railway infrastructure lease

1. National railway infrastructure lease means the State enters into an agreement with the railway operator to assign the right to operate the national railway infrastructure for a given period in order to receive a fixed sum of money.  

2. The authority to approve the railway infrastructure lease scheme (hereinafter referred to as “Lease Scheme"):

a. The Prime Minister shall consider approving the Lease Scheme of national railway infrastructure which is related to national defense or security or of the property formed from the project subjected to the Prime Minister's decision, as requested by the Minister of Transport, the Ministry of Finance and relevant agencies.

b. The Minister of Transport shall consider approving the Lease Schemes which are not prescribed in the point a of this clause after receiving the opinions from the Ministry of Finance and relevant agencies.

3. The application requesting the approval for the Lease Scheme shall include:

a. An application form requesting the approval for the Lease Scheme: 01 original.

b. A Lease Scheme, using form No. 07 in Appendix hereto: 01 original.

c. Other relevant documents (if any): 01 copy.

4.  Authority to approve the Lease Scheme:

a. The managing agencies shall prepare 01 application dossier for requesting the Lease Schemes specified in clause 3 of this Article, and send this dossier to the Ministry of Transport.

b. Within 30 days from the date on which the completed application is received, the Ministry of Transport shall send a consultation request, enclosed with copies of the dossier specified in clause 3 of this Article, to the Ministry of Finance and relevant agencies for getting their opinions on the Lease Scheme.

c. Within 30 days, from the date on which the completed application is received, the Ministry of Finance and relevant agencies shall provide their opinions about: whether the application is completed or valid; whether the Scheme is deemed necessary and appropriate to the operator, regulations on management and use of public property, special law and relevant laws; whether the basis and method for valuation of leasing right to operate the national railway infrastructure is suitable; and whether the contents in the Scheme need modifications or not.

d. Within 30 days from the date on which the opinions from the Ministry of Finance and relevant agencies are received, the Ministry of Transport shall direct the managing agencies to adjust and complete the application.

dd. The Minister of Transport shall consider approving the Lease Scheme within his authority or provide explanation in writing if the Scheme is refused.

e. The Minister of Transport shall send a report on the Lease Scheme (enclosed with copies of the application dossier specified in clause 3 of this Article 3 and the opinions from the relevant agencies) to the Prime Minister for approval or for guidance if the Scheme is refused.

5. According to the Operation Scheme approved by the competent authority, the Ministry of Transport shall direct the managing agency to sign the lease contract with the wholly state-owned enterprises assigned to operate national railway infrastructure or hold an auction to select an enterprise satisfying the conditions for entering the lease contract as prescribed by laws.

The enterprises participating in the auction shall satisfy the conditions for qualifications in railway infrastructure business as prescribed in the special law on railway and relevant laws.

6. The lease contract shall at least contain:

a. Details of the lessor.

b. Details of the lessee.

c. A list of the infrastructure facilities to be leased.

d. The lease term; rent; payment method and period; maintenance responsibility prescribed in the contract and other necessities.

dd. Rights and obligations of both parties;

e. Implementation responsibilities.

7. The lessee has rights to:       

a. Operate the railway infrastructure in accordance with the law regulations and the signed contract.

b. Decide suitable methods for operating the national railway infrastructure in an effective manner.

c. Follow the technical process to use and operate the leased infrastructure with proper purposes, operate the construction items and to carry out right technical performance. 

d. Collect money from service charges and other relevant charges in accordance with laws and the signed contract. 

dd. Exercise other rights of the lessee as per law.

8. The lessee has obligations to:

a. Preserve the leased infrastructure (including the land); prevent loss and encroachment and other violations as prescribed by laws.

b. Use and operate the infrastructure with proper purposes; refrain from transfering, selling, giving, mortgaging and contributing it as capital.

c. Carry out maintenance of infrastructure as prescribed in the signed contract.

d. Make full payment for the rent on time as prescribed in the contract; if the payment period specified in the contract expires but the enterprise has not paid the rent fully, it shall pay for the late payment interest as prescribed in the law on tax administration.  The managing agency shall send a request document enclosed with a copy of the contract and its receipts (if any) to the Department of Taxation (in the province where the infrastructure is located) for consideration; the Department of Taxation shall determine the late payment interest amount and give notice of this amount as prescribed in the law on tax administration. 

dd. Be subjected to the inspection and supervision of the lessor; cooperate with the lessor to solve the arising difficulties.

e. Hand over the national railway infrastructure when the contract expires and when the cases specified in clause 9 of this Article arise.

g. Notify the managing agency of the infrastructure’s state on a regular or irregular basis to keep the railway transport operation safe and smooth. 

h. Carry out other obligations in accordance with laws and the signed contract.

9. During the lease term, if the enterprise voluntarily returns the infrastructure or breaks the terms in the contract or the State deems it necessary to revoke the infrastructure for national defense and security, national interests or public interests, the actions against parties’ rights and obligations (if any) shall be taken in accordance with the contract, civil law and relevant laws.

Article 14. National railway infrastructure concession for a specific term

1. National railway infrastructure concession for a specific term means the State enters into an agreement with an enterprise to assign the right to operate the infrastructure for a given period; the concession is associated with the upgrade and extension of the existing national railway infrastructure under a project approved by the competent authority to receive a fixed sum of money.

2. The Prime Minister shall consider approving the National Railway Infrastructure Concession Scheme (hereinafter referred to as “Concession Scheme”) as requested by the Minister of Transport, the Ministry of Finance and other relevant agencies.

3. The national railway infrastructure concession for a specific term shall be done through auctions.  Criteria for selecting auction participants include:

a. Their qualifications in railway infrastructure investment and business as prescribed in the special law on railway and other relevant laws.

b. Their financial capability to carry out the investment project in accordance with laws.

4. The specific transfer term shall be determined in each concession contract and shall not exceed 50 years.

5. Application for approval for the Concession Scheme shall include:

a. An application form requesting the approval for the Concession Scheme: 01 original.

b. A concession scheme, using form 07 in Appendix thereto: 01 original.

c. Other relevant documents (if any): 01 copy.

6. Approval for Concession Scheme:

a. The managing agency shall send 01 application dossier to the Ministry of Transport to request the approval for the concession scheme as prescribed in clause 5 of this Article.

b. Within 30 days from the date on which the completed application is received, the Ministry of Transport shall send a consultation request, enclosed with copies of the dossier specified in clause 5 of this Article, to the Ministry of Finance and relevant agencies for their opinions on the Concession Scheme.

c. Within 30 days, from the date on which the completed application is received, the Ministry of Finance and relevant agencies shall provide their opinions about: whether the application is completed or valid; whether the Scheme is deemed necessary and appropriate to the operator, regulations on management and use of public property, special law and relevant laws; whether the basis and method for valuation of transferring right to operate the national railway infrastructure is suitable; and whether the contents in the Scheme need modifications or not.

d. Within 30 days from the date on which the opinions from the Ministry of Finance and relevant agencies are received, the Ministry of Transport shall direct the managing agency to adjust and complete the application; on that basis, the Minister of Transport shall send a report on the plan in question (enclosed with the copies of the dossier specified in clause 5 of this Article and the opinions of the relevant agencies) to the Prime Minister; the Prime Minister shall consider approving the Concession Scheme or provide guidance in writing if the Operation Scheme is refused.

dd. According to the Concession Scheme approved by the competent authority, the Ministry of Transport shall direct the managing agency to hold an auction to select a railway infrastructure operator as prescribed in clause 3 of this Article and to sign the Concession Contract as per law.

7. The Concession Contract shall contain:

a. Details of the transferor.

b. Details of the transferee. 

c. A list of the infrastructure facilities to be transferred.

d. The transfer term; transfer price; payment method and period; sections to be invested and upgraded; and other necessities.

dd. Rights and responsibilities of both parties;

e. Implementation responsibilities.

8. Within 90 days from the date on which the concession contract is signed, the transferee shall make a payment on concession price for the managing agency as prescribed in the contract.  The managing agency shall send a payment on concession price to an escrow account within 03 working days from the date on which the payment on concession price is received.

Upon the expiration date of the payment period, if the transferee has not made the payment or has not paid the amount specified in the contract in full, then the managing agency shall send a written request enclosed with a copy of the concession contract and the receipts from the transfer (if any) to the Department of Taxation (of province where the infrastructure is located) for consideration; the Department of Taxation shall notify the managing agency of the late payment interest as prescribed in the law on tax administration. 

The specific payment period and the regulations on late payment interest shall be specified in the Regulation on auctions and in the concession contract.

9. The transferee has the rights to:

a. Use and operate the national railway infrastructure under the laws and the signed contract.

b. Receive investment incentives as prescribed in the law on investment and other relevant laws.

c. Use property rights and conceded property to contribute as capital as prescribed by laws. 

d. Collect money from service charges and other relevant charges as prescribed by laws and in the signed contract. 

dd. File complaints or lawsuits as per law if its rights and benefits are infringed.

10. The transferee has obligations to:

a. Invest in the concession project as planned, on schedule and in good quality; satisfy technical requirements for maintenance and other regulations in the signed contract.

b. Carry out maintenance for the infrastructure in accordance with the signed contract.

c. Notify the managing agency of the infrastructure’s state on a regular or irregular basis to ensure that the national railway transportation is carried out safely and smoothly.    

d. Take full responsibility before the law for any breach of the contract.

Article 15. National railway infrastructure rent and concession price

1. The national railway infrastructure rent and concession price means the sum of money paid by the transferee to the State for using and operating the national railway infrastructure under the signed contract.

2. The national railway infrastructure rent shall be determined as follows:

a. As for the national railway infrastructure that directly serves train operation (except the station), the rent shall be determined according to the length of the route, advantages of the route and other elements that affect the profitability of the asset during the lease period.

b. As for the national railway infrastructure which is not specified in point a of this clause, the rent shall be determined in accordance with the market rent of similar property or of the property having the same technical standards and quality and is rent for the same purpose as the railway infrastructure.

c. The rent specified in point a, point b of this clause is the price given to the wholly state-owned enterprise assigned to operate national railway infrastructure or the starting price of an auction which is held to select the infrastructure operator.

The Minister of Transport shall determine the rent or the starting price of an auction as prescribed in this clause.

3. The starting price of the railway infrastructure concession auction shall be determined based on the residual value of the property at concession time according to revaluation, remaining depreciation time, additional investment value, estimated expenses and revenues from the operation of railway infrastructure during the concession time.

The Minister of Transport shall consider deciding the starting price of railway infrastructure concession which is specified in this clause.

4. As for the national railway infrastructure associated with the land which is not used for business and service purposes, the railway infrastructure rent or concession price is not inclusive of land rents.

5. The Ministry of Finance provides specific guidelines in this Article.

Article 16. Operation of land resources to establish funds for the development of national railway infrastructure.

1. The operation of land resources to establish funds for the development of national railway infrastructure shall be carried out in accordance with Article 188 of the Law on Management and Use of Public Property and the legislations on land. 

2. The managing agency shall prepare and send a scheme for operating land to the Ministry of Transport; the Ministry of Transport shall request a consultation from relevant agencies and send the final scheme to the Prime Minister for consideration and approval.

3. The scheme for operating land shall at least contain:

a. Bases and the necessity of the scheme.

b. Area of land to be operated.

c. Methods for operating land.

d. The total investment in national railway infrastructure.

dd. The estimated proceeds to be collected from the operation of land resources.

e. Other information related to the operation of land resources.

g. Implementation responsibilities.

Article 17. Management and use of the proceeds earned by the managing agency

1. The proceeds from the operation of national railway infrastructure are the fees and charges specified in point a, clause 3, Article 11 hereof and shall be managed and used in accordance with the law on fees and charges, law on state budget and other relevant laws.

2. The proceeds from the operation of national railway infrastructure are collected from the prices for using and providing services which are specified in point b, clause 3, Article 11 hereof and managed and used in accordance with the financial mechanism applied to the managing agencies.

Article 18. Management and use of the proceeds from the operation of national railway infrastructure and the land resources to establish funds for the development of national railway infrastructure

1. Proceeds from the railway infrastructure lease and concession and from operation of land resources shall be remitted to an escrow account in the State Treasury held by:

a. The agency assigned to manage the property specified in clause 1, Article 19 of the Law on Management and Use of Public Property, regarding the infrastructure mentioned in the Operation Scheme approved by the Prime Minister.

b. Department of Finance (in the province where the infrastructure is located) regarding the infrastructure mentioned in the Operation Scheme approved by the Minister of Transportation.

2. The expenses related to the operation of national railway infrastructure and of land resources shall be estimated and submitted to the Ministry of Transport for approval, including costs of:

a. Stocktaking, valuation, auction holding and other relevant costs in case of railway infrastructure lease specified in Article 13 hereof.

b. Stocktaking, determination of starting price, auction holding and other relevant costs in case of railway infrastructure concession specified in Article 14 hereof.

c. Operation of land resources specified in Article 16 hereof.

3. The making of expense estimates and the procedures for paying expenses related to the operation of national railway infrastructure and the land resources shall be carried out in accordance with the regulations in Article 26 hereof.

4. Quarterly, the escrow account holder shall remit the remained amount of proceeds from the operation of railway infrastructure and land resources with costs already paid to the state budget as prescribed in the law on state budget.

5. The proceeds remitted to state budget shall be prioritized to be allocated from public investment plan and state budget estimate used for new construction investment, upgrade, improvement and development of national railway infrastructure as prescribed in the law on state budget, law on public investment and relevant laws.

Section 5. DISPOSAL OF NATIONAL RAILWAY INFRASTRUCTURE

Article 19. Forms of disposal of the national railway infrastructure

1. Withdrawal

2. Transfer.

3. Sale.

4. Use as payment for a BT contract.

5. Liquidation.

6. Settlement in case where the infrastructure is lost or damaged.

7. Other methods as prescribed by laws.

Article 20. Withdrawal of national railway infrastructure

1. The national railway infrastructure shall be withdrawn if:

a. There are changes in the plan or in decentralization.

b. The infrastructure is handed to improper entities that use it for improper purposes; it is borrowed.

c. The infrastructure is sold, leased, given, mortgaged, contributed as capital, and used in joint venture or association against the laws.

d. The infrastructure is handed over but no longer need for use or is operated in an ineffective manner.

dd. Other cases as prescribed by laws.

2. The authority to withdraw:

a. The Prime Minister is authorized to withdraw the national railway infrastructure which is related to national defense and security in consideration of the request from the Minister of Transport.

b. The Minister of Finance shall consider withdrawing the national railway infrastructure which is associated with land, except the infrastructure related to national defense and security; the withdrawal decision shall be made in consideration of the requests from the Minister of Transport and relevant agencies.

c. The Minister of Transport shall consider withdrawing the national railway infrastructure which is not prescribed in point a, point b of this clause.

3. The national railway infrastructure to be withdrawn shall be:

a. Transferred in accordance with the regulations in Article 21 hereof.

b. Sold in accordance with the regulations in Article 22 hereof.

4. Procedures for withdrawing the national railway infrastructure in case of voluntary return:

a. The managing agency shall prepare and send 01 application dossier to the Ministry of Transport.  The application for infrastructure withdrawal shall include: an application form of the managing agency: 01 original; a list of requested infrastructure, using form No. 06 in Appendix hereto: 01 original; other related documents (in any): 01 original.

b. Within 30 days from the date on which the completed application documents are received, the Minister of Transport shall consider approving the withdrawal or send a request (enclosed with the dossier specified in point a of this clause) to the competent authority mentioned in clause 2 of this clause for approval of infrastructure withdrawal.

c. The decision on withdrawing the facilities shall at least contain: The managing agency which has the facilities withdrawn; the authority who implements the Withdrawal Decision; a list of facilities to be withdrawn (description, quantity, input value, residual value); the reasons for withdrawal; the implementation responsibilities.

d. After receiving the Withdrawal Decision from the competent authority, the managing agency which is assigned to implement the Decision shall receive the infrastructure in question; plan the disposal of the withdrawn infrastructure as prescribed in clause 3 of this Article; dispose it using the method approved by the competent authority; maintain and protect the infrastructure while awaiting the actions.

5. Procedures for withdrawing the national railway infrastructure in cases other than those specified in clause 4, clause 6 of this Article.

a. According to the requests from the agencies that carry out inspection, assessment and audit and impose penalties for administrative violations and from other regulatory agencies, the Minister of Transport shall consider approving the withdrawal or send a written request to the competent authority mentioned in clause 2 of this Article for consideration and approval.

b. The contents of the Withdrawal Decision and the responsibilities of relevant agencies shall comply with the regulations in point c, point d, clause 4 of this Article.

6. Before withdrawing the land associated with the national railway infrastructure as prescribed in the law on land, the competent authority that makes the withdrawal decision shall send a written request to the Ministry of Finance for consultation.  The Ministry of Finance shall take charge and cooperate with relevant agencies to provide consultation on the withdrawal plan.

The request for consultation shall specify explanations for the withdrawal, area of land to be withdrawn, proof that the land withdrawal conforms to the land-use plan which is approved by the competent authority and other necessary contents.

Article 21. Transfer of national railway infrastructure

1. The national railway infrastructure shall be transferred when:

a. There are changes of managing agency or in decentralization.

b. The infrastructure is handed over but no longer need for use or is operated in an ineffective manner.

c. Other cases as prescribed by laws.

2. The authority to make transfer:

a. The Prime Minister shall consider transfering the national railway infrastructure from the managing agency under the Minister of Transport to another enterprise in form of investment of state capital to enterprises and the national railway infrastructure related to national defense and security, as requested by the Minister of Transport, Minister of Finance and other relevant agencies.

b. The Minister of Finance shall consider transfering the national railway infrastructure which is other than those specified in point a of this clause between the Ministry of Transport and the local or central ministries or agencies.

c. The Minister of Transport shall consider transfering the national railway infrastructure which is other than those specified in point a of this clause, between the inferior agencies.

3. The application dossier requesting the transfer of national railway infrastructure shall include:

a. An application form of the managing agency: 01 original.

b. An application form of the agency or enterprise receiving the infrastructure: 01 original.

c. An application form for transfering and receiving the infrastructure of the superior agency and enterprise (if any): 01 original.

d. A list of infrastructure facilities to be transferred, using form No. 06 in Appendix hereto (specifying the current use purposes and expected use purposes after the transfer if the transfer is associated with the switch of functional use): 01 original.

dd. Documents related to the switch of functional use (in case where the transfer is associated with the switch of functional use): 01 copy.

e. Other relevant documents (if any): 01 copy.

4. Procedures for transfering the national railway infrastructure:

a. If any national railway infrastructure is required to be transferred, the managing agency shall prepare and send 01 application dossier prescribed in clause 3 of this Article to the Ministry of Transport.

b. Within 30 days from the date on which the completed application documents are received, the Minister of Transport shall consider approving the transfer or send a written request enclosed with the dossier specified in clause 3 of this Article to the relevant agencies for consultation and forward these opinions to the competent authority mentioned in point a, point b of this Clause; this competent authority shall then consider approving the transfer or provide explanation in writing if the transfer is refused.

c. The decision on transfering the facilities shall at least contain: The managing agency which has the facilities transferred; the agency or enterprise receiving the transferred facilities; a list of transferred facilities (description, quantity, input value, residual value); the reasons for transfer; the implementation responsibilities.

d. Within 30 days from the date on which the transfer decision from the competent authority is received, the managing agency and the agency or enterprise which receive the infrastructure shall: transfer or receive the infrastructure facilities, using form No.01 in Appendix hereto; record the increase or decrease in property using the current accounting system; register for the property ownership or use (if any); make a declaration of the property variation as prescribed in Article 27 hereof.

dd. Reasonable costs which are associated with the transfer and receipt of railway infrastructure and are covered by the recipient as prescribed.

e. The infrastructure value shall not be paid during the transfer process.

Article 22. Selling national railway infrastructure

1. The national railway infrastructure facility shall be sold in the following cases:

a. The facility is withdrawn as prescribed in Article 20 hereof but no longer need for use.

b. The infrastructure is handed over but is no longer need for use or the operation is carried out in an ineffective manner.

c. The change in land-use purpose associated with the change in functional use of railway infrastructure takes place according to the plan approved by the competent authority.

d. Other cases as prescribed by laws.

2. The authority to sell the national railway infrastructure facilities:

a. At the request of the Minister of Transport, the Ministry of Finance and other relevant agencies, the Prime Minister shall consider selling the national railway infrastructure facilities which are related to national defense and security and facilities formed from the project subjected to the Prime Minister’s investment decision. 

b. The Minister of Finance shall consider selling the national railway infrastructure, which is associated with land and is not specified in point a of this clause, at the request of the Minister of Transport and relevant agencies.

c. The Minister of Transport shall consider selling the national railway infrastructure which is other than those specified in point c, point b of this clause.

3. The national railway infrastructure shall be sold in accordance with the regulations of the law on property auction. 

4. An application dossier requesting the sale of national railway infrastructure shall include:

a. An application form of the managing agency: 01 original.

b. A list of facilities to be sold, using form No.06 in Appendix hereto (stating reasons for sale and current use purposes): 01 original.  

c. Other relevant documents (if any): 01 copy.

5. Procedures for selling the national railway infrastructure:

a. If there is national railway infrastructure needed to be sold, the managing agency shall prepare and send 01 application dossier prescribed in clause 4 of this Article to the Ministry of Transport.

b. Within 30 days from the date on which the completed application documents are received, the Minister of Transport shall consider approving the sale or send a written request enclosed with the dossier specified in clause 4 of this Article to the relevant agencies for consultation and forward these opinions to the competent authority mentioned in point a, point b, clause 2 of this Article; this competent authority shall then consider approving the sale or provide explanation in writing if the sale is refused.

c. The decision on selling the infrastructure shall at least contain: The managing agency which has the infrastructures sold; a list of facilities to be sold (description, quantity, input value, residual value); the reasons for sale; and the implementation responsibilities.

d. According to the Decision on Sale of the competent authority, the managing agency shall determine and submit the starting price to the competent authority for approval and start selling the facilities as prescribed by laws. 

dd. Within 90 days from the date on which the Sale Contract is signed, the purchaser shall make a repayment on the facilities to the managing agency as prescribed in the contract.  Within 03 working days from the date on which the payment is received, the managing agency shall send this payment to an escrow account.

Upon the expiration date of the payment period, if the purchaser has not made the payment or has not paid the amount specified in the contract in full, then the managing agency shall send a written request enclosed with a copy of the Sale Contract and the payment documents (if any) to the Department of Taxation (of province where the infrastructure is located) for consideration; the Department of Taxation shall then notify the managing agency of the late payment interest as specified in the law on tax administration. 

The specific payment period and the regulations on late payment interest shall be specified in the Regulation on auctions and in the sale contract.

e. The managing agency shall issue sale invoice of public property to the purchaser as prescribed in the law on management and use of public property.  The facilities shall be handed to the purchaser at the place where the facilities are located and after he/she makes the full payment.

g. Within 30 days from the date on which the auction is completed, the managing agency shall record the decrease in property and make a declaration on the property variation as prescribed in Article 27 hereof.

Article 23. Liquidation of national railway infrastructure

1. The national railway infrastructure shall be liquidated if:

a. The facilities are damaged but cannot be repaired or the repair does not work.

b. The old national railway infrastructure is demolished for building new national railway infrastructure under the project approved by the competent authority. 

c. The regulatory agency adjusts the plan making part of or the whole of national railway infrastructure facility unable to use and not function normally.

d. Other cases as prescribed by laws.

2. The Minister of Transport shall consider approving the liquidation or empower other authorities to perform such action. 

3. The national railway infrastructure shall be liquidated in form of demolishment or destruction.   The materials withdrawn from the demolishment or destruction shall be:

a. Handed over to the agency acquiring the facilities which are liquidated or used for maintenance if they are usable: The Minister of Transport shall consider bringing the withdrawn materials into operation; in this case, their value shall be deducted from the cost estimate and in the Maintenance Contract.

b. Transferred to the agencies, organizations or units for management and operation.  The Minister of Transport shall consider transfering the materials to inferior agencies or units; The Minister of Finance shall consider transfering the materials to the agencies, organizations or units unaffiliated to the Ministry of Transport as requested by the Minister of Transport, the Ministers and Heads of central ministries, the Chairpersons of relevant People's Committees in the provinces.

c. Sold if they are no longer need for use.

4. The application dossier requesting the liquidation shall consist of:

a. An application form of the managing agency: 01 original.

b. A list of facilities to be liquidated, using form No.06 in Appendix hereto (stating reasons for liquidation): 01 original.  

c. Other relevant documents (if any): 01 copy.

5. Procedures for liquidating the national railway infrastructure:

a. The managing agencies shall prepare 01 application dossier for requesting the liquidation and send it to the competent authority mentioned in clause 2 of this Article.

b. Within 30 days from the date on which the completed application is received, the competent authority mentioned in clause 2 of this Article shall consider liquidating the facilities or provide explanation in writing if the request is refused.  If the materials withdrawn from the liquidation are transferred to the agencies, organizations or units unaffiliated to the Ministry of Transport, this Ministry shall send a written request to the Ministry of Finance for consideration and approval.

c. The decision on liquidating the infrastructure shall at least contain: The managing agency which has the infrastructures liquidated; a list of facilities to be liquidated (description, quantity, input value, residual value); liquidation methods;  disposal of the withdrawn materials; manage and use of proceeds from the liquidation; and implementation responsibilities.

d. According to the Liquidation Decision of the competent authority, the managing agency shall demolish or destroy the facilities and dispose the withdrawn materials as prescribed.  These materials shall be sold in accordance with the regulations in Article 31 of the Government's Decree No. 151/2017/ND-CP dated December 12, 2017.

dd. After completing the liquidation process, the managing agency shall record the decrease in property and make a declaration on the property variation as prescribed in Article 27 hereof<0

Article 24. Settlement of national railway infrastructure in case of loss or damage

1. The national railway infrastructure is considered lost or damaged if it is due to natural disasters or conflagration or other reasons.

2. The Minister of Transport shall consider approving the settlement or empower other authorities to perform such action as prescribed in clause 1 of this Article.

3. An application dossier requesting the settlement of the facilities in case of loss or damage shall include:

a. An application form of the managing agency: 01 original.

b. A report confirming that the facilities are lost or damaged: 01 original.

c. A list of lost or damaged facilities, using form No. 06 in Appendix hereto: 01 original.

b. Documents proving the facilities are of lost or damaged: 01 copy.

4. Procedures for settling the national railway infrastructure in case of lost or damaged:

a. Within 30 days, from the date on which the loss or damage is detected, the managing agencies shall prepare and send 01 application dossier requesting the settlement to the competent authority mentioned in clause 3 of this Article for consideration and approval. 

b. Within 30 days from the date on which the completed application is received, the competent authority mentioned in clause 2 of this Article shall consider settling the national railway infrastructure in case of loss or damage.

c. The Decision on settling the lost or damaged facilities shall at least contain: name of the managing agency; list of damaged or lost facilities of which a decrease is recorded (description, quantity, input value, residual value according to accounting records); reasons for loss or damage; and implementation responsibilities.

5. Within 30 days from the date on which the aforesaid decision of the competent authority is received, the managing agency shall record the decrease in property as prescribed in the law on accounting; make a declaration on the property variation as prescribed in Article 27 hereof.

6. The state budget shall finance sufficient funds for rectifying the loss or damage in order to keep the train operation safe and smooth.

If the national railway infrastructure is lost or damaged and the insurance company or relevant entities pay for this damage, such amount shall be managed in accordance with clause 1, Article 26 hereof after deducting the relevant costs (if any) which are remitted to state budget and then allocated to public investment project or state budget estimate to build replaced infrastructure as prescribed in the law on state budget, law on public investment and other relevant laws.

Article 25. Management and use of national railway infrastructure in form of public – private partnership

1. The building, management and operation of national railway infrastructure shall be carried out in form of public-private partnership (hereinafter abbreviated as "PPP") and the transfer of these facilities shall be done in form of PPP by the state as prescribed in Article 95, 96 of the Law on Management and Use of Public Property.

2. The railway infrastructure shall be used for making repayment to the investor while executing the construction investment project under a BT contract as prescribed in the regulations of the Government’s law on public property paid to investors.

3. The use of national railway infrastructure to participate in investment project under PPP, other than the contract specified in clause 2 of this Article, shall be stipulated as follows:

a. The Prime Minister shall consider using the existing national railway infrastructure to participate in the investment project under PPP as requested by the Minister of Transport, Ministry of Finance and other relevant agencies.

The Prime Minister’s decision on using the existing national railway infrastructure to participate in the investment project under PPP is the basis for the Prime Minister to decide or request another competent authority to decide investment policies as prescribed in the law on investment and the law on public investment.

b. According to the Prime Minister's decision on using the existing infrastructure to participate in the investment project under PPP which is approved by the competent authority or under the signed contract, the managing agency shall hand over the facilities to the investor of the project.  The handover shall be recorded in writing, using form No. 01 in Appendix hereto.

Article 26. Management and use of proceeds from the disposal of national railway infrastructure

1. All of the proceeds collected from the disposal of national railway infrastructure shall be sent to an escrow account in the State Treasury held by:

a. The managing agency mentioned in clause 1, Article 19 of the Law on Manage and Use of Public Property, regarding the public property subjected to the approvals of the Prime Minister and the Minister of Finance. 

b. Department of Finance (in the province where the infrastructure is located) regarding the infrastructure subjected to the Minister of Transportation’s approval.

2. The escrow account of each managing agency shall be monitored individually.

3. The managing agency shall make a budget estimate of the expenditures related to the disposal of infrastructure and submit it to the Ministry of Transport for approval.  The expenditures related to the disposal of national railway infrastructure shall include:

a. Stocktaking, drawing.

b. Relocation, demolition and destruction. 

c. Valuation and appraisal.

d. Sale holding.

dd. Other relevant expenditures.

4. Grounds for making estimates prescribed in clause 3 of this Article:

a. The expenditures with quotas and policies prescribed by the competent authority shall be estimated in accordance with the corresponding regulations of such authority.

b. The services related to the disposal of railway infrastructure shall be provided in accordance with the contract signed between the managing agency and the unit providing the services.  The unit providing such services shall be selected in accordance with laws.

c. The expenditures other than those specified in point a, b of this clause shall be determined by the head of the agency empowered to sell and liquidate the railway infrastructure in accordance with the current finance management regulations; this person shall also take full responsibility for such determination.

5. Within 30 days from the date on which the disposal of infrastructure is completed, the managing agency shall prepare and send 01 application document requesting the payment to the holder of the escrow account.   The head of the aforesaid agency shall take full responsibility before the law for the accuracy of the requested payment.  The application dossier shall consist of:

a. An application form of the managing agency (specifying the proceeds collected from the disposal of railway infrastructure, total expenditure for disposal, details of the account receiving payment) enclosed with the specific list of expenditures: 01 original.

b. The competent authority’s decision on disposing the infrastructure: 01 copy.

c. Proofs of expenditures: approved expenditure estimate; contracts for valuation, auction and demolishment; invoices (if any): 01 copy.

6. Within 30 days, from the date on which the completed application is received, the holder of the escrow account shall be responsible for giving money to the agency empowered to sell or liquidate the infrastructure in order that this agency will pay for the expenditures related to the disposal of national railway infrastructure. 

7. Quarterly, the escrow account holder shall remit the remained amount of proceeds from the disposal of railway infrastructure with costs already paid to the state budget as prescribed in the law on state budget.

8. If the proceeds from the sale or liquidation of railway infrastructure are insufficient to cover the costs, the deficit shall be financed from the state budget estimate fund managed by the managing agency.

Section 6. REPORTING REGIME AND DATABASE OF NATIONAL RAILWAY INFRASTRUCTURE

Article 27. Reports on national railway infrastructure

1. The national railway infrastructure shall be declared and updated to the national railway infrastructure database for consistent management.

2. Forms of declaration include:

a. The initial declaration of the infrastructure under management on the effective date of this Decree. 

b. Additional declarations of new arising railway infrastructure or of the railway infrastructure being changed or having its managing agency changed after the effective date of this Decree. 

3. The managing agency shall make a declaration on the railway infrastructure, using form No. 02 in Appendix hereto and send it to the Ministry of Transport for confirmation; such declaration shall then be inserted into the national railway infrastructure database.  The declaration shall be submitted within 30 days from the date on which the railway infrastructure is handed over in accordance with the decision of the competent authority or if any change of the managing agency or the infrastructure itself arises.

4. Reports on the management, use and operation of national railway infrastructure: Every year, the managing agencies shall make an annual report on the management, use and operation of national railway infrastructure of the previous year and irregular reports as requested by the competent authority. 

5. Forms of reports:

a. Report on the management of infrastructure, using form No. 03 in Appendix hereto.

b. Report on the process of disposing the railway infrastructure, using form No.04 in Appendix hereto.

c. Report on the operation of railway infrastructure, using form No. 05 in Appendix hereto.

6. Deadline for sending the annual reports on management, use and operation of national railway infrastructure:

a. The managing agency shall prepare and send the report before February 28.

b. The Ministry of Transport shall send a final report on management, use and operation of national railway infrastructure to the Ministry of Finance before March 15.

c. The Ministry of Finance shall send the report on management, use and operation of national railway infrastructure nationwide to the Government for reporting to the Assembly as required to announcing the public property.

Article 28. National railway infrastructure database

1. The national railway infrastructure database is an integral part of the national database regarding the public property, which is built and managed consistently nationwide; its contents are considered as lawful as the hard copies.

2. The Ministry of Transport shall take charge and cooperate with the Ministry of Finance and other relevant agencies in building and managing national railway infrastructure database to satisfy the following requirements:

a. In conformity with Vietnam electronic government architectural framework; satisfy the national database technical standards, technical standards and regulations for information technology, information safety and security, and economic - technical norms.

b. Ensure interoperability, the ability to integrate with the national database of public property; information sharing and extensibility of data fields in system design and application software.

3. The Ministry of Transport shall direct the managing agency to make declarations and insert them into the national railway infrastructure database as prescribed.

Chapter III

IMPLEMENTATION

Article 29. Implementation responsibilities

1. Responsibilities of the Ministry of Transport:

a. Take charge to promulgate the regulations on maintenance of national railway infrastructure.

b. Direct and provide guidelines for making specific lists of national railway infrastructure facilities for the purposes of accounting, depreciation determination, reporting and building railway infrastructure database.

c. Take charge and cooperate with the Ministry of Finance to build national railway infrastructure database to integrate it into the national database of public property; make a report on the management, use and operation of national railway infrastructure, payment in responsibility and adequacy, as prescribed in the law on management and use of public property and as requested by the competent authorities. 

d. Cooperate with the Ministry of Finance in providing guidelines to determine the rent and starting price of national railway infrastructure in form of lease or concession.

dd. Perform other tasks and exercise other rights as prescribed in this Decree.

2. Responsibilities of the Ministry of Transport:

a. Provide regulations on accounting of national railway infrastructure.

b. Provide regulations on management and depreciation of national railway infrastructure.

c. Provide guidelines for determining rent or starting price for auction of national railway infrastructure in form of lease or concession.

d. Take charge and cooperate with the Ministry of Transport to provide guidelines for integrating the national railway infrastructure database into the national database of public property.

dd. Perform other tasks and exercise other rights as prescribed in this Decree.

3. The relevant ministries, central agencies, People’s Committees of provinces and central affiliated cities shall cooperate with the Ministry of Transport and Ministry of Finance in managing, using and operating the national railway infrastructure as prescribed in this Decree.

Article 30. Transitional regulations

1. Within 12 months, from the date on which this Decree comes into effect, the Ministry of Transport shall direct the managing agency mentioned in clause 2, Article 2 hereof to cooperate with relevant agencies, organizations or enterprises in checking, classifying and determining the value of existing national railway infrastructure in order to manage, use and operate the infrastructure in accordance with this Decree. 

While checking, classifying, preparing and approving the plan on handing over the management of national railway infrastructure, the Ministry of Transport shall direct the relevant agencies or organizations in managing and using the aforesaid infrastructure as prescribed in the law on public property, special law on railway and other relevant laws to keep the train operation smooth and safe.

2. As for the contract for operation of national railway infrastructure signed by the competent authority before the effective date of this Decree, the regulations in the aforesaid contract shall continue to be implemented until its expiry date.   All amendments made to the aforesaid contract from the effective date of this Decree shall comply with the regulations hereof.

3. The disposal of national railway infrastructure stated in the decision issued by the competent authority before the effective date of this Decree shall continue to be completed; other tasks remain unperformed until the effective date of this Decree and the management and use of proceeds from such disposal shall be carried out in accordance with this Decree.

Article 31. Entry into force

1. This Decree shall come into force from March 14, 2018.

2. The Ministers, Heads of ministerial agencies, Heads of governmental agencies, Chairpersons of People’s Committees of provinces and central affiliated cities and Heads of relevant agencies shall implement this Decree.

APPENDIX

(Enclosed with the Government's Decree No. 46/2018/ND-CP dated March 14, 2018)

Form No. 01

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

RECORD ON THE HANDOVER AND RECEIPT

OF NATIONAL RAILWAY INFRASTRUCTURE

Pursuant to the Government’s Decree No. 46/2018/ND-CP dated March 14, 2018 on management, use and operation of national railway infrastructure.

Pursuant to the Decree No. ................dated..........................on .........................(1)

Today, date:........................., the handover and receipt of national railway infrastructure shall be carried out as follows:

A. PARTIES PARTICIPATING IN THE HANDOVER AND RECEIPT

1. Representative of the handover party:

Mr. (Mrs.):............................................... Position:………………………….

Mr. (Mrs.):............................................... Position:………………………….

2. Representative of the receiving party:

Mr. (Mrs.):............................................... Position:………………………….

Mr. (Mrs.):............................................... Position:………………………….

3. Representative of the witness agency (if any)

Mr. (Mrs.):............................................... Position:………………………….

Mr. (Mrs.):............................................... Position:………………………….

B. CONTENTS

1. List of facilities to be handed over or received:

2. Dossiers related to the management and use of the property being handed over or received:

………………………………………………………………………………………………………

3. Responsibilities of both parties:

a. Responsibilities of the handover party:………………………………………………………..

b. Responsibilities of the receiving party:………………………………………………………..

4. Opinions of both parties:………………………………………………………………………..

REPRESENTATIVE OF THE WITNESS AGENCY (if any)
(Signature, full name)

____________________________

Note:

(1) Write the number, date and abstract of the Decision issued by the competent authority to hand over/ withdraw/ transfer/use the infrastructure to participate in the investment project under PPP.

(2) The land area declared in column 6 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is specified in the decision on handing over or leasing land or in the document issued by the competent authority or is managed and used in reality.  

(3) The usable floor area, which is declared in column 7, is applied to the building associated with land.

(4) Input value and residual value, which are declared in column 8 and 9, shall be determined in accordance with clause 3, Article 8 hereof. 

(5) The state of property specified in column 10:  “currently use or cannot be used"

DECLARATIONS ON NATIONAL RAILWAY INFRASTRUCTURE

I. Contents: Initial declaration/ additional declaration

II. List of railway infrastructure being declared:

Note:

- The land area declared in column 7 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is the area specified in the decision on handing over or leasing land or in the document issued by the competent authority or is the area managed and used in reality.  

- The usable floor area, which is declared in column 8, is applied to the building associated with land.

-  Input value and residual value, which are declared in column 9 and 10, shall be determined in accordance with clause 3, Article 8 hereof. 

-  The state of property specified in column 11: specifying “currently use or cannot be used"

REPORTS ON THE MANAGEMENT OF NATIONAL RAILWAY INFRASTRUCTURE

Reporting period:…………………

Note:

- The land area declared in column 7 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is the area specified in the decision on handing over or leasing land or in the document issued by the competent authority or is the area managed and used in reality.  

- The usable floor area, which is declared in column 8, is applied to the building associated with land.

-  Input value and residual value, which are declared in column 9 and 10, shall be determined in accordance with clause 3, Article 8 hereof. 

-  The state of property specified in column 11: specifying “currently use or cannot be used"

REPORTS ON THE DISPOSAL OF NATIONAL RAILWAY INFRASTRUCTURE

Reporting period:…………………

Note:

- The land area declared in column 7 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is the area specified in the decision on handing over or leasing land or in the document issued by the competent authority or is the area managed and used in reality.  

- The usable floor area, which is declared in column 8, is applied to the building associated with land.

-  Input value and residual value, which are declared in column 9 and 10, shall be determined in accordance with clause 3, Article 8 hereof. 

-  The state of property specified in column 11:  specifying “currently use or cannot be used"

-  The disposal of the infrastructure in colum12 shall be specified in accordance with Article 19 hereof. 

REPORTS ON THE OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE

Reporting period:…………………

Note:

- The land area declared in column 5 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is the area specified in the decision on handing over or leasing land or in the document issued by the competent authority or is the area managed and used in reality.  

- The usable floor area, which is declared in column 6, is applied to the building associated with land.

-  Input value and residual value, which are declared in column 7 and 8, shall be determined in accordance with clause 3, Article 8 hereof. 

LISTS OF NATIONAL RAILWAY INFRASTRUCTURE FACILITIES REQUESTING TO BE DISPOSED.

Actions: Disposal/Transfer/etc.

Note:

- The land area declared in column 7 is applied to the infrastructure associated with land (except the rail area and the area of rail corridor) and is the area specified in the decision on handing over or leasing land or in the document issued by the competent authority or is the area managed and used in reality.  

- The usable floor area, which is declared in column 8, is applied to the building associated with land.

-  Input value and residual value, which are declared in column 9 and 10, shall be determined in accordance with clause 3, Article 8 hereof. 

-  The state of property specified in column 11: specifying “currently use or cannot be used"

Form No. 07

SCHEME

for operation of national railway infrastructure

Operation methods:………………….(1)

I. BASIS FOR IMPLEMENTATION

1. Legal basis

- Law on Management and Use of Public Property dated 2017;

- Law on Railway dated 2017;

- Government’s Decree No. 46/2018/ND-CP dated March 14, 2018 on management, use and operation of national railway infrastructure.

- Other documents related to the management, use and operation of national railway infrastructure.

2. Practical basis

2.1. Functions and tasks of the managing agency.

2.2. Rules, roles and responsibilities of the managing agency.

2.3. Managing agency’s task results within the last 03 years and its development plan for the following years. 

II. MAIN CONTENTS OF THE SCHEME

1. Management, use and operation of national railway infrastructure in reality

1.1 Management, use and operation of national railway infrastructure in reality:

a. Overview of national railway infrastructure

b. Management, use and operation of national railway infrastructure in reality

1.2. Operation in reality: Describing the operation of railway infrastructure in reality and the proceeds from such operation following different methods such as direct operation or lease or concession for a specific term, and other operation methods (if any). 

2. Suggesting operation plan of national railway infrastructure (2)

2.1. Operation plan:

a. List of infrastructure requesting the operation: description, quantity, input value, residual value, property state; operation methods (direct operation/lease/concession for a specific term); operation period; period in registration and accuracy.

b. The Scheme shall be necessary and suitable with the functions and tasks, regulations on management and use of public property, special law on railway and other relevant laws of the state.

2.2. Preliminary assessment of operation plan:

a. Expected results of the operation: Proceeds and expenditures related to the operation (specifying the bases and methods for determining proceeds and expenditures; bases and methods for determining the rent and concession price if the infrastructure is being leased or transferred).

b. Expected amount of payment which is remitted to state budget.

c. Expected amount of money which is allocated from the payment remitted to state budget (from the operation) under the public investment plan and state budget estimate used for new construction investment, upgrade, improvement and development of national railway infrastructure.

III. SUGGESTIONS FOR CARRYING OUT THE SCHEME

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Note:

(1) Each scheme shall have 01 operation method as prescribed in the Government's Decree No. 46/2018/ND-CP dated March 14, 2018.

(2) Explanation for the suggested operation plan.