railway to provide important north-south link
Bang of Viet Nam Railway Corporation spoke to Thoi bao Kinh Te Viet Nam (Vietnam
Economic Times) about obstacles facing the North-South Express Railway Project.
you reveal the progress of the North-South Express Railway Project thus far?
The project of the
North-South Express Railway is one of the strategic projects of Viet Nam’s
railway sector. The Vietnamese government has permitted to set up an investment
report and select consultant institutions.
The project will be
divided into 3 phases of building 1,630km of double railway.
In the first phase, from
2007 to 2009, investment reports will be mapped out and approved.
In the second phase, from
2010 to 2015, construction of the section of railway between Ha Noi-Hue and Nha
Trang-HCM City section will begin.
The section of railway
between Hue-Nha Trang will be carried out in the third phase after 2015.
project’s capital investment is estimated to be about US$33 billion. How much
of counterpart capital is contributed by Viet Nam? How will the capital be
The investment capital of
$33 billion is really big and a difficulty to the project. Included in the total
capital, $23 billion that is invested in infrastructure is an official
development assistance (ODA) preferential loan.
The Viet Nam Railway
Corporation and other businesses will invest $10 billion into means of
present, Japan and South Korea take part in the project’s study and
investigation. How is the co-operation between the partners?
The South Korean
consultants have mapped out a feasibility study for 2 sections of Ha Noi-Vinh
City and HCM City-Nha Trang. But financial funding from South Korea is
At present, the Ministry
of Planning and Investment in co-ordination with the Ministry of Transport and
Viet Nam Railway Corporation has been working with the Japanese partner seeking
financial assistance to hire international well-qualified consultants to draw up
investment reports. The project will use the Japanese Shikansen technology.
While drafting the
investment reports, the corporation will use the results of research compiled by
the South Korean consultants to save on expense and time.
the financial difficulties are there any other obstacles for the project?
Ground clearance and
compensating the people whose land will be taken are both problems.
The corporation is
co-operating with local authorities and relevant offices to determine the proper
measures to solve the problems.
Besides, the project
requires advanced technology while Viet Nam railway technology and
infrastructure is very poor and staff capacity is insufficient. These factors
will undoubtedly cause obstacles to the project.
The big scale of the
project will also cause difficulties for management activities.
these obstacles make the Japanese partner think it will be difficult to start
the construction in 2009 if progress in this project preparation has not been
That’s true. The
Japanese partner asked the corporation to complete the work needed in defining
direction of new railway route, sections of priority, total capital, the ODA and
other assistance, role of old route, dealing with ground clearance, compensation
and environment impacts, and fulfil related legal documents, as soon as
an investor, how will the corporation deal with the difficulties and obstacles
so as to ensure the project stays on schedule?
We are pushing to fulfil
not only the investment report, but also process procedure of selecting
consultants and also the calculation of the expenses for consultation required
to draft the investment reports.
We also strive to realise
the requirements of the Japanese partners to ensure their assistance.
The corporation asked the
Japanese partners to train a skilled staff.
A special policy for the
project has been set up and submitted to the Vietnamese government for approval.