Avoiding cost overruns in the implementation of North-South high-speed railway

DNHN - The North-South High-Speed Railway project is gaining significant attention from both the Government and the public, with promises to improve transport infrastructure and foster economic development.

Ensuring investment efficiency and transparency

According to a statement from the Government Office on October 7, the Government's Standing Committee emphasized that the North-South High-Speed Railway project must be meticulously calculated to avoid exceeding the total investment and cost overruns during its implementation. This is a key directive, reflecting the Government's determination to ensure transparency and efficiency in public investment.

The Ministry of Transport has been tasked with reviewing the investment rate to align with the country's natural conditions, socio-economic factors, and the specific characteristics of the project. The goal is to present the "most accurate, reliable, and convincing" total investment figure, thus facilitating the mobilization of necessary resources for the project.

To realize this project, the Government has determined that public investment will play a central role. These sources include the central and local budgets, loans, bond issuances, and other forms of mobilization such as BOT (Build-Operate-Transfer) and BT (Build-Transfer). Importantly, a special mechanism is needed to maximize resources and streamline investment procedures to ensure the project proceeds smoothly.

The Government Standing Committee also instructed relevant agencies to adhere to the investment plan for the entire route, with a design speed of up to 350 km/h. Route selection must be as straight as possible to reduce costs, ensure operating speed, create new development opportunities, and save costs for the project.

One critical aspect of the project is ensuring logical connectivity with major urban areas and other key transportation routes. The high-speed railway will be designed to avoid densely populated and urbanized areas but still ensure convenient connections to major airports and seaports. This not only facilitates travel for the public but also contributes to local economic growth, creating numerous new development opportunities.

The project will traverse 20 provinces and cities, starting from Ngoc Hoi Station (Hanoi) and ending at Thu Thiem Station (Ho Chi Minh City). The presence of this railway will not only alleviate the current burden on transportation but also create a new wave of development for the regions it passes through.

According to the Ministry of Transport, the preliminary total investment for the North-South High-Speed Railway project has been set at $67.34 billion. Ticket prices are expected to be divided into three tiers, corresponding to the public's affordability and the level of comfort. Specifically, first-class tickets are projected at $0.18 per kilometer (VIP cabin), second-class at $0.074, and third-class at $0.044. For the Hanoi – Ho Chi Minh City route, this translates to approximately VND 6.9 million for first-class, VND 2.9 million for second-class, and VND 1.7 million for third-class tickets. This shows that the project is not only aimed at improving service quality but also ensuring reasonable travel costs for the public.

A driver of sustainable economic development

One of the most notable aspects of the North-South High-Speed Railway project is its positive impact on macroeconomic indicators. The collaboration between the Ministry of Transport and the Ministry of Finance will not only help assess public debt and foreign debt but also propose optimal solutions to ensure the project's sustainability. Improving transport infrastructure will not only reduce travel costs for the public but also significantly lower logistics costs, thereby enhancing the economy's competitiveness. This will create a strong incentive for businesses, encourage investment, stimulate economic growth, and increase the country's added value.

In this context, sustainable development becomes an essential factor that cannot be overlooked. The North-South High-Speed Railway project must be designed not only to meet travel demands but also to focus on environmental issues. The Government has requested relevant agencies to propose special mechanisms for sourcing land and construction materials and to delegate maximum authority to localities in licensing and environmental impact assessments. These measures aim to ensure that the project not only brings economic benefits but also protects the environment and natural resources, contributing to sustainable development for future generations.

With the Government's strong commitment, the North-South High-Speed Railway project is not just a transport initiative but a symbol of Vietnam's development aspirations. The combination of improved infrastructure and environmental protection will create a solid foundation for long-term growth. This will not only strengthen connectivity between regions but also open up opportunities for socio-economic development, paving the way for a sustainable and prosperous future for all. The North-South High-Speed Railway project also represents Vietnam's ambition for development and global integration. With decisive leadership from the Government, a commitment to mobilizing maximum resources, and the solidarity of the community, this project promises to bring positive changes to transportation infrastructure, boost economic development, and improve the quality of life for the people.

With the continuous advancement of technology, the North-South High-Speed Railway will be a significant leap forward, helping Vietnam not only connect regions but also affirm its position on the global economic map.

Nghe Nhan