Vietnam’s regulations on national railway infrastructure lease

According to Decree No. 46/2018/NĐ-CP of Vietnam’s Government: 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.

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

Depending on the scope, the authority to approve the project will be different. To be specific:

- 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 subject to the Prime Minister's decision, as requested by the Minister of Transport, the Ministry of Finance and relevant agencies.

- 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.

Application requesting the approval for the Lease Scheme:

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

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

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

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

Authority to approve the Lease Scheme:

- The managing agencies shall prepare 01 application dossier for requesting the Lease Schemes and send this dossier to the Ministry of Transport.

- 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 to the Ministry of Finance and relevant agencies for getting their opinions on the Lease Scheme.

- 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.

- 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.

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

- 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.

The lease contract shall at least contain:

- Details of the lessor.

- Details of the lessee.

- A list of the infrastructure facilities to be leased.

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

- Rights and obligations of both parties;

- Implementation responsibilities.

View more details at Decree No. 46/2018/NĐ-CP of Vietnam’s Government, effective from March 14, 2018.

-Thao Uyen-

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