Vietnam: 03 financial sources for the flood and storm management and remediation of their consequences in the railway sector

Vietnam: 03 financial sources for the flood and storm management and remediation of their consequences in the railway sector (illustrative image)

The financial sources for the flood and storm management and remediation of their consequences in the railway sector in Vietnam are regulated in Articles 31, 32, and 33 of Circular 01/2010/TT-BGTVT:

- Financial sources include:

- Funds allocated by the state budget.

- Relief funds from organizations and individuals within and outside the country when floods, storms, accidents, and natural disasters occur.

- Funds raised or voluntarily contributed according to legal regulations.

- Contingency funds:

- Annually, railway infrastructure management companies must allocate 5% of the regular maintenance budget to strengthen and repair preventive measures before the rainy, storm, and flood seasons.

- Vietnam Railways Corporation must reserve 1% to 2% of the total state budget estimates for the handling of accidents, natural disasters, traffic accidents, and rescue; this fund is used for immediate recovery to ensure step 1 traffic; if it is insufficient, report to the Ministry of Transport for balancing additional contingency funds from the state budget (if available).

- Management and use of financial resources:

The financial resources for flood and storm management and remediation of their consequences; response to incidents and natural disasters, and rescue are used for:

- Remedying the consequences of floods and storms; responding to incidents and natural disasters and rescue, ensuring step 1 and step 2 traffic;

- Repairing and upgrading works to serve flood and storm prevention, dealing with incidents and natural disasters, equipment for forecasting and directing, commanding flood and storm prevention; incident and natural disaster response and rescue operations;

- Rescuing people and properties; rescuing works and transportation means affected by floods, storms, incidents, and natural disasters; salvaging sunken means;

All expenses for flood and storm management and remediation of their consequences; response to incidents and natural disasters, and rescue operations are paid according to the current regulations.

In case the contingency fund for flood and storm management; response to incidents and natural disasters, and rescue operations is insufficient to perform the tasks, Vietnam Railways Corporation will report to the Ministry of Transport (through the Steering Committee for flood and storm management, and Search and Rescue of the Ministry of Transport) to balance and supplement from the state budget's contingency fund.

More details may be found in Circular 01/2010/TT-BGTV, effective from February 25, 2010.

Nguyen Phu

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