Authority to appraise public service prices in the field of national railway infrastructure management from November 1, 2023 in Vietnam

Authority to appraise public service prices in the field of national railway infrastructure management from November 1, 2023 in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On September 15, 2023, the Minister of Transport issued Circular 25/2023/TT-BGTVT amending Circular 11/2021/TT-BGTVT on guidance on methods of pricing and managing public service prices in the field of management and maintenance of national railway infrastructure implemented by the order method using the State budget from regular funding sources.

Authority to appraise public service prices in the field of national railway infrastructure management from November 1, 2023 in Vietnam

According to point a, clause 3, Article 5 of Circular 11/2021/TT-BGTVT (amended in Circular 25/2023/TT-BGTVT), the Vietnam Railways Department is assigned to evaluate and approve the public service price plan in the field of management and maintenance of national railway infrastructure. This is carried out by the ordering method using the State budget from regular expenditure sources.

In addition, the time limit, procedure for appraisal and decision on price plan comply with the provisions of Decree 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding the implementation of a number of articles of the Price Law and Decree 149/2016/ND-CP dated November 11, 2016 of the Government amending a number of articles of Decree 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding the implementation of a number of articles of the Price Law.

Circular 25/2023/TT-BGTVT takes effect on November 1, 2023.

Principles for determining public service prices in the field of national railway infrastructure management in Vietnam

Prices for public services in the field of management and maintenance of national railway infrastructure are determined to ensure:

- Reasonable actual costs to complete a unit of public service volume specified in the management and maintenance of national railway infrastructure.

- In accordance with standards, technical regulations, norms issued by competent state agencies, and the technical status of each project or specific work item.

- Suitable for the market situation of the construction site and the volume and quality of public service services.

- Costs that have been guaranteed by the state budget are not included in the price of public service services.

(Article 3 of Circular 11/2021/TT-BGTVT)

Regulations on structure and methods for determining prices of public services in the field of national railway infrastructure management in Vietnam

Specifically, Article 4 of Circular 11/2021/TT-BGTVT regulates the structure and method of determining public service prices in the field of national railway infrastructure management as follows:

(1) The public service price structure for railway project maintenance is carried out according to the instructions in Appendix I issued with Circular 11/2021/TT-BGTVT.

The method for determining public service prices for railway project maintenance is carried out according to the instructions in Appendix II issued with Circular 11/2021/TT-BGTVT.

(2) Method for determining public service prices for management and supervision of railway construction maintenance:

Prices for public service services for management and supervision of maintenance of railway projects are determined according to the norm of the cost of management and supervision of maintenance (%) multiplied by the total cost of maintaining railway infrastructure without value-added tax.

The method for determining the rate of management and monitoring the costs of maintenance is carried out according to the instructions in Appendix III issued with Circular 11/2021/TT-BGTVT.

(3) Structure and method of determining public service prices for overcoming the consequences of incidents and natural disasters for step 1 of railway projects in case of implementation by the ordering method, it shall be carried out according to the instructions in Appendix IV issued with Circular 11/2021/TT-BGTVT.

(4) For the method of determining the prices of public administrative services for tasks other than those specified in (1), (2), and (3), in the case of implementation by the ordering method, the price of public service services is calculated separately for each specific job and carried out in accordance with current law.

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