The Standing Committee of the National Assembly has approved the government's proposal to submit for parliamentary consideration an investment policy for the Lao Cai - Hanoi - Hai Phong railway project, which will connect with China and is estimated to cost $8.369 billion.

On the afternoon of February 10, the Standing Committee of the National Assembly reviewed the investment plan for the Lao Cai - Hanoi - Hai Phong railway line.

Minister of Transport Tran Hong Minh presented the proposal, stating that the government is requesting parliamentary approval for the project. The railway will begin at the border rail connection between the new Lao Cai Station and Hekou North Station in China and will end at Lach Huyen Port in Hai Phong. The main railway line will stretch approximately 390.9 km, with an additional 27.9 km of branch lines.

The project will span nine provinces and cities: Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong.

The railway will be newly constructed as an electrified, single-track system with a 1,435mm gauge. It will serve both passenger and freight transport, with a design speed of 160 km/h for the main route, 120 km/h through Hanoi's rail hub, and 80 km/h on the connecting and branch lines.

The total estimated investment is approximately 203.231 trillion VND ($8.369 billion), sourced from the state budget (central and local), domestic funds, foreign loans (including from the Chinese government), and other legal financial sources.

The government plans to conduct a feasibility study starting in 2025, with the project targeted for substantial completion by 2030. It has also requested special mechanisms and policies for implementation.

Comprehensive assessment to minimize risks

During the review process, Vu Hong Thanh, Chairman of the Economic Committee, noted that the government has estimated an initial support requirement of $109.36 million over five years to maintain railway infrastructure, similar to current funding for the national railway system.

Additionally, the high-speed North-South railway project is expected to incur an operational deficit of about $778 million in its first four years. Combined, these two railway projects would require preliminary state financial support of around $887.36 million.

Given the substantial investment scale, the Economic Committee has urged the government to comprehensively assess the financial feasibility and long-term operational impacts of planned railway projects to minimize risks.

Regarding funding sources, the government has allocated approximately 128 billion VND ($5 million) for the project in the 2021-2025 public investment plan. From 2026 to 2030, it will require around 177.282 trillion VND ($7.3 billion), with an additional 25.821 trillion VND ($1 billion) needed from 2031 to 2035.

The government has proposed a combination of domestic funds, foreign loans, and other financial sources to support the project.

Special policies deemed necessary

According to Chairman Thanh, the special mechanisms and policies requested by the government have been previously approved by the National Assembly and reviewed by competent authorities, making them a justified request.

However, the Economic Committee has stressed the need to ensure macroeconomic stability and national debt security during implementation.

To enhance project feasibility and efficiency, the committee supports the government’s request for special policies, including adjustments to related planning, concurrent evaluation of feasibility studies, and direct contractor selection. However, it insists that strict oversight be maintained to prevent negative consequences and ensure competent contractors are selected.

Regarding the government's proposal to exempt or reduce liability for officials involved in project execution, the Economic Committee has raised concerns over the lack of clear guidelines on its scope and implementation. It warns that such a policy could set a precedent and create inconsistencies with other projects.

Additionally, the government already has policies to encourage and protect proactive and accountable officials. The committee has urged careful consideration of this policy before seeking higher-level approval.

Concluding the discussion, Vice Chairman of the National Assembly Nguyen Duc Hai announced that the Standing Committee has agreed on the necessity of the project and will present it for parliamentary review during the ninth extraordinary session, scheduled to open on February 12.

Thu Hang