Dear: Ministry of transportOn 02 July 2015, the rail project management Committee (Railway Board) received the text of the German reconstruction Bank Office-KFW in Hanoi suggested working with the Ministry of transport (SHORT-TERM Mission) on 20 July 2015 on proposed cooperation in the rail project potential of Vietnam. On the basis of the opinion exchange with KFW, the rail Board please report about the situation in cooperation with the German reconstruction bank KFW in the rail sector-from the past to the present time, as follows: I. THE PROJECT BY KFW FINANCING 1. Project: modernization of the operating centre of railway transport (OCC project):The loan agreement for the project of 2003 66 799 was signed on December 28, 2006 between the sponsor KfW (Germany), Vietnam's Finance Ministry and the Vietnam Railway Corporation with the total value of loans is 10,635,837,60 EUR, which include a financial contribution is not refundable (used for training of OCC staff) 410,000 value 12 EUR; Commitment fee is 0.25% per year for the value of the loan has not yet been disbursed. Interest rate 0.75% per year for the 7,669,378 loan interest rate 2.0% EUR and seselle 60/year with the 2,556,459 loan,41 EUR. Grace period of 10 years;-Project's goal: to invest in the infrastructure of information system of railway signal, promote effective projects for infrastructure investment in the current and future rail capabilities planning chart run ship, things running ship, goods, of rolling stock , allows to increase the operating capacity of rail transport, needs to provide better transport service for customers. The operating Center for rail transport are invested with the modern high level, capable of expansion, can connect with related systems on the ĐSVN network.-Organization of consultancy project: consulting company transport East-West Berlin (TEWET), Germany;-EPC contractor: company IVU Traffic Technologies, Germany-Implementation: at present the project has completed the survey and design work is in progress at scene.2. Project: train speed, phase IThe total value of loans was 96 million DM in Germany, the project has basically completed the main content and has been mined ĐSVN TCT, use 16 official D20E locomotives. Currently the project is being completed ĐSVN TCT stores redundant supplies for the locomotives.II. CHARACTERISTICS OF THE FUNDED CAPITAL FROM KFWIn the process of cooperation, implementing the project using the KfW loans mentioned above, the railway Board please report about the pros, cons, as follows:1. Pros-With the funding conditions have applied for funding from the OCC project KfW are reviews are more beneficial incentives for beneficiaries such as interest rates and low commitment fee, less binding conditions, requires clear on transparency, fighting corruption ...;-KfW financed by funds available in the process of implementing the project, there is no restriction on the annual disbursement plan. The related procedures are simple, clear, transparent, detailed instructions (Guidelines) of the sponsor with respect to each loan, specific contract types.-KfW is very interested in the benefits of beneficiaries from funding priorities, transparency, efficiency in the selection of contractors, suppliers and from which there are very few barriers, bound about the origins, origin of goods services, encourage widespread international bidding;-The nature of the projects by the KfW funding: The technical nature of the project, new technologies, with high automation, especially in capacity building projects, technical modernization of railway technology;-Advantages of the sponsors: always stars, urging attention to common problems as well as the specific issues of the project, are willing to support the owner, the contractor in the course of implementing the project when required; Regular periodic work sessions with investors to promptly update the project information as well as solve the problems occurred;2. The downside-Currently, KfW does not advocate funding for priority projects in transport infrastructure including railways, mainly focused funding for rural transportation, clean water, poverty alleviation etc.; However, the transport sector projects have high content of technical equipment, highly effective technology of system capacity, people continued to receive attention, KfW's priority;-Capital source of KfW financing available for transportation projects often have a large value (approximately 50 million Euros) but if there is appropriate and convincing KfW about the benefit for beneficiaries such as capacity building, access to modern technology team building, human resources development, KfW is willing to increase grants and/or actively campaigning, seeking funding from the sources that KfW management.III. THE PROPOSED PROJECT TO INTRODUCE WITH KFWOn the basis of the above mentioned content and the content of the particular work before with KfW, the rail Board please suggest and Ministry of transport recommended glass showcase with KfW a number of potential railway projects have relatively consistent properties with characteristics of KfW bank capital to mobilize funding , including:1. project information system for railway signals of the Hanoi-Haiphong line:-The goal of the project is to replace signaling information system engineering technology with systems that use the new modern advanced techniques, contribute to improving the efficiency of railway transport. From there each step of the implementation of the development strategy of the railway Industry in the coming years is to improve the speed of ships, shortening the journey and guarantee safety. To improve the quality of transport and guarantee the safe running of ships; capacity building through, carrying capacity to satisfy the transport needs by 2020, the project has two goals in sync: modernization of railway information system online-Hanoi-Haiphong on the basis of the application of the technology of transmission using optical cable, the information system of SDH synchronous transmission, electronic switchboard, specialized information systems and train radio system to the ground. modernization of railway signal system online Hanoi-Haiphong on the basis: applicable systems of centralized train running CTC, applied electrical interlocks system centralized gas using microprocessors, turning the record by the engine, the train detection on full online user count shaft technology the closed system, time zone line applies the technology of automatic lines, closed system protects the horizontal line.-Total investment expected of project: 34 million EUR, of which: ODA Capital: 30 million EUR reciprocal Capital: 4 million EUR (100 billion USD).2. The project to renovate and upgrade the railway of Hanoi-Thai Nguyen-Project's goal: to ensure safe running Board, shorten the time to run the ship through which the capacity and quality of railway transport. Each step brought the railway on the technical level.-Scale of project: renovate, upgrade all current railway has a length of about 75 Km with the following principal categories: build, renovate existing railway. constructed a number of railroad bridge, culvert and renovated train station on the line.-The expected total investment of the project was 30.5 million.3. safety enhancement project rail bridge on the Hanoi-Ho Chi Minh City, phase II -Project's goal: to build new, weak railway bridge improvements on the Hanoi-Ho Chi Minh City to enhance the safe running of the ship. Incrementally synchronizing load on the line from Hanoi to Ho Chi Minh City, proceed to the step by step bringing the railroad to Hanoi-Ho Chi Minh City on a technical level. Renovate, improve safety for other transport activities and livelihood either side rail in the scope of the project.-Scale of project: new construction in the bridge project list 56 with permanent scale, to ensure safe running Board and remove the speed limit points; Upgrade the way the ends of the bridge to ensure technical standards.-Total investment of the project is estimated at 75 million USD (+ construction joint consultation).4. The railway project of bien Hoa-Vung Tau-Project's goal: to build the railway, bien Hoa-Vung Tau, the goal to 2050 need put into exploitation the railway of bien Hoa-Vung Tau to serve socio-economic development of the locality, linking the railway down the large seaports to serve putting, getting off the load for road traffic.-Scale of project: new building 101, 6 km 1435 mm gauge double rail electrification, which:Main line 83.96. 17.64 Km long branch line length.-Total investment: 2,341 .3 million EUR (+ construction joint consultation).Rail project management reporting./glass.
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