National Railways: Clarify cost management before investment decisions

Xuyên Đông |

The Ministry of Construction is seeking comments on regulations related to national railways.

The Ministry of Construction is seeking opinions on the Draft Decree detailing and implementing measures on the overall technical design of the national railway line and local railway line investment project. The deadline for seeking opinions is until the end of January 21, 2026.

One of the notable contents of the draft is the specific regulation of costs for activities carried out before deciding to invest in a railway project, according to the Railway Law.

According to the draft, Chapter I clearly stipulates the scope of regulation and subjects of application of the Decree, focusing on FEED design in the Construction Investment Feasibility Study Report.

The draft also explains the terms used in the Decree such as FEED design, Mid-term Report of the Feasibility Study Report, technology plan, project preparation agency, component project.

General principles and regulations in project implementation are also clearly stated, including supplementing regulations on preparing and approving estimates for activities allowed to be carried out before project approval.

Chapter II stipulates the survey of construction, preparation, appraisal and approval of projects. In Section 1, the draft outlines the survey tasks and technical survey plans to serve the preparation of the Feasibility Study Report, with requirements according to the specifics of the survey to serve FEED design.

The responsibilities of the subjects in preparing, approving and adjusting the tasks and technical survey plans are specifically stipulated. The content and survey results are shown in the Survey Results Report for each stage, accompanied by specific requirements meeting the FEED design for the railway project. The authority and responsibility for controlling and approving construction surveys are also clearly defined.

In Section 2, the draft stipulates the tasks, requirements for FEED design, the level of detail of FEED design serving the preparation of the Mid-Term Report and the entire FEED design.

The draft clearly states the subject of formulation, confirmation and adjustment of design tasks, and at the same time stipulates the content of the Investment Feasibility Study Report. For the mid-term report, the draft only requires formulation for important national projects using public investment capital and investment projects in the form of public-private partnerships decided by the National Assembly on investment policies. The content of the mid-term report aims to select the optimal option in terms of technology, route direction and project location on the route.

Section 3 of Chapter II stipulates that the appraisal is carried out in parallel with the process of preparing the Feasibility Study Report, with corresponding appraisal content according to the requirements of the Feasibility Study Report. The draft stipulates the appraisal authority, the Appraisal Council, and the giving of appraisal opinions for the mid-term Report.

The order and content of the Feasibility Study Report appraisal are specified, including FEED design appraisal and total investment appraisal. The content of the Project Approval Decision and project adjustment are also clearly stated.

Chapter III stipulates the preparation, appraisal and approval of construction designs deployed after FEED designs. According to the draft, construction designs deployed after FEED designs are prepared on the basis of approved FEED designs. Appraisal and control of construction designs deployed after FEED designs are carried out between the investor and EPC, EC, EP contractors. The draft assigns appraisal consultants to assess the load-bearing safety of works for EPC, EC contractors to approve, without requiring appraisal at specialized construction agencies because the FEED design has been appraised in the Feasibility Study Report. The investor shall control the conformity of the deployed design with the approved FEED design.

Chapter IV regulates cost management. The draft clearly states the costs for activities carried out before deciding to invest in a railway project according to Clause 1, Article 19 of the Railway Law. The determination of the estimated total investment level in the Mid-Term Report and the total investment level of the entire project are specified, which allows reference and use of the database of norms, unit prices, and data of railway works and projects in the world. The cost is converted to the calculation time using the consumer price index, and at the same time converted construction costs to the construction location.

The draft also stipulates construction estimates, construction package estimates, including EPC, EC, EP package estimates, and the use of construction norms, construction costs, and cost data according to the provisions of the Railway Law. In addition, trial operation costs are determined in the total construction investment, in accordance with the trial operation plan in the Feasibility Study Report.

Chapter V stipulates the implementation clause, which clearly states the responsibilities of the Ministry of Construction, the Provincial People's Committee, the investor and contractors. The draft also stipulates the amendment and supplementation of a number of articles of Decree No. 123.2025.ND-CP, Decree No. 175.2024.ND-CP, Decree No. 06.2021.ND-CP, along with transitional regulations and the effectiveness of the Decree.

Xuyên Đông
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