Decision No. 47/2015/QD-TTg On Mechanism and Policies to Encourage the Development of Inland Waterway Transport

Pursuant to …;

Regarding mechanisms and policies to encourage the development of inland waterway transportation

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Inland Waterway Transport dated June 15, 2004; the Law Amending and Supplementing Certain Provisions of the Law on Inland Waterway Transport dated June 17, 2014;

Pursuant to the Law on State Budget dated December 16, 2002;

Based on the Enterprise Law dated November 26, 2014;

On the basis of the Investment Law dated November 26, 2014;

Pursuant to the Law on Public Investment dated June 18, 2014;

At the proposal of the Minister of Transport,

The Prime Minister issues a Decision on mechanisms and policies to encourage the development of inland waterway transportation.

Article 1. Scope of Regulation

Article 3. Mechanisms and policies to incentivize the development of inland waterway transportation

Article 2. Applicability

This Decision applies to agencies, organizations, and individuals related to investment, training, management, and exploitation activities in the field of inland waterway transportation in Vietnam.

Article 3. Explanation of Terms

In this Decision, the following terms shall be understood as follows:

1. The infrastructure of inland waterway transportation includes inland waterways; navigation channel protection zones; inland waterway ports and wharfs; anchorage areas outside ports; revetments, traffic dams, inland waterway signage, and other auxiliary works.

2. Inland waterways are channels, harbors, structures for vessel passage over dams, waterfalls on rivers, canals, creeks, or channels on lakes, lagoons, bays, coastal areas, islands, connecting islands within the internal waters of the Socialist Republic of Vietnam that are organized for management and exploitation of transportation.

3. Inland waterway vessels are ships, boats, and other floating structures with or without engines, specifically operating on inland waterways.

4. High-speed passenger vessels are ships or boats with the maximum speed calculated in meters per second (m/s) or knots (kt) equal to or greater than the value determined by the following formula:

V ³ 3,7 Δ^0,1667 (m/s)

or V ³ 7,1992 Δ^0,1667 (kt)

Where:

Δ: Displacement volume corresponding to the highest designed waterline (m³).

5. Container transportation on inland waterways involves using inland waterway vessels to transport containers on inland waterway routes.

6. Passenger transportation on inland waterways involves using inland waterway vessels to transport passengers on inland waterway routes.

7. Particularly difficult communes, border communes, and safe area communes are those communes meeting criteria specified in Decision No. 2405/QĐ-TTg dated December 10, 2013, of the Prime Minister and having inland waterway transportation activities.

Article 4. Mechanisms and Policies on Investment Development Management and Maintenance of Inland Waterway Transportation Infrastructure

1. Mechanisms and policies on investment development of inland waterway transportation infrastructure include:

a) Prioritizing sufficient budget allocation from the state budget for planning adjustment and implementation of approved inland waterway transportation development plans, in accordance with the state budget's balancing capacity;

b) Prioritizing access to preferential loan sources: Official Development Assistance (ODA) loans and preferential credit for investment in inland waterway transportation infrastructure serving passenger and container transportation;

c) For income generated by enterprises from new infrastructure investment projects in inland waterway transportation, regulations at Point b Clause 1 Article 15 Decree No. 218/2013/NĐ-CP dated December 26, 2013, of the Government detailing and guiding the implementation of the Law on Corporate Income Tax shall apply.

2. People's Committees of provinces and centrally governed cities shall be responsible for:

a) Based on local resources, prioritizing funding for investment in ferry terminal infrastructure in economically disadvantaged areas where such infrastructure has not been developed and other forms of transportation are not feasible;

b) Considering exemptions and reductions in land and water surface rental fees for new construction of inland waterway ports, renovation of warehouse systems, piers, drainage systems, and internal roads of inland waterway ports according to current regulations; reporting to the Prime Minister issues exceeding authority;

c) Considering interest rate support for loans from financial institutions for projects investing in inland waterway transportation infrastructure based on local resources.

3. On management and maintenance of inland waterways: From 2016 to 2020, prioritizing economic service funds for inland waterway maintenance work according to plans approved by competent state authorities, with an annual increase of at least 1.3 times compared to the previous year's allocated funds to ensure the maintenance of infrastructure and enhance safety measures, reducing inland waterway accidents.

Encouraging socialization in implementing dredging projects on inland waterway routes without using state budget funds; revenue from dredged products will be handled according to current regulations.

4. Pilot implementation of management and maintenance mechanisms for inland waterways for a period of three years, from 2016 to 2018; funding for implementation comes from national economic service funds for inland waterways according to approved economic-technical standards, specifically as follows:

a) Applying limited bidding methods to select contractors for managing and maintaining inland waterways on the Son La reservoir route (175 km long) from above the Son La hydroelectric dam to below the Lai Chau hydroelectric dam, the Vam Co Dong river route (131 km long) from the Vam Co Dong - Tay junction to Ben Keo port, and the Hong River route from Ba Lat buoy number 0 to Viet Tri junction (253 km long); each route consists of one tender package;

b) Applying ordering and design procedures when implementing dredging projects to ensure inland waterway traffic on rivers: Lower Ha Ly River, Nghen River, Len River, Lam River, and Cu Da - Cu Lao Cham route; environmental impact assessments are conducted only once per route;

c) Applying ordering methods to prevent floating of bridges: Duong Bridge, Binh Bridge, Ho Bridge, Viet Tri Bridge, Ha Mong Dragon Bridge, Yen Xuan Bridge, Ky Lam Railway Bridge during flood season and regulating traffic control at locations: Km 19 Kinh Thay River, Gheng Bridge on Dong Nai River, Hong Nghe Bridge on Hong Nghe Canal, An Long Bridge on Thap Muoi Canal No. 1, Dong Lan Shoal area on Huu River, Quan Liao Canal, Lower Ha Ly River, Moc Ai River, Den Han Falls on Len River;

d) Applying bidding methods as currently prescribed to manage and maintain inland waterway routes for the remaining national inland waterway routes.

Article 5. Mechanisms and policies encouraging investment in inland waterway vessels

1. Exempt stamp duty on inland waterway vessels for high-speed passenger transport and container-carrying inland waterway vessels.

2. Provincial People's Committees and municipal people's committees under the central government shall base their actions on local resources:

a) Provide interest rate subsidies for loans from credit institutions for projects to build new inland waterway vessels with a carrying capacity of 1,500 tons and engine power of 250 horsepower or more; self-propelled inland waterway vessels and specialized inland waterway vessels with a carrying capacity of 800 tons or more for transporting goods via inland waterways, in accordance with the operating conditions of the inland waterway route;

b) Provide interest rate subsidies for loans from credit institutions for the construction of new inland waterway vessels for river-crossing passenger transport in areas with difficult economic conditions where other forms of transportation have not yet developed.

Article 6. Mechanism and policies to support operations in inland waterway transport and transportation services

Provincial People's Committees and municipal people's committees under the central government shall base their actions on local resources:

1. Subsidize prices or costs for public passenger transport via inland waterways.

2. Exempt ticket fees for children under six years old.

3. Reduce ticket prices for those who have rendered meritorious service to the revolution, severely disabled persons, extremely severely disabled persons, elderly persons, and Vietnamese citizens who are students or university students.

Article 7. Mechanism and policies to support training of inland waterway vessel drivers

Support 100% of the training costs for guiding drivers of inland waterway vessels in particularly difficult communes, border communes, and safe zones in provinces and centrally-administered cities.

Article 8. Conditions for benefiting from mechanisms and policies

1. Enterprises must ensure operational conditions in the field of inland waterway transport in accordance with the provisions of the law.

2. Projects for investment in inland waterway vessels and infrastructure development projects for inland waterways must have approved planning.

3. In cases where multiple contents have overlapping support policies from different programs and projects at the same time, beneficiaries may choose to apply the most beneficial policy.

Article 9. Implementation Organization

1. The Ministry of Transport

a) Take the lead in evaluating the implementation of this Decision and annually compile and report to the Prime Minister the results of its implementation;

b) Take the lead in implementing pilot management and maintenance of inland waterways as stipulated in Clause 4, Article 4 of this Decision, ensuring simple procedures that are suitable for practical requirements and enhancing the role, responsibility, and effectiveness of state management; organize interim evaluations and reports to the Prime Minister on the results of implementation;

c) Take the lead and coordinate with relevant ministries, sectors, and agencies to guide the procedures and processes to encourage socialization in dredging of inland waterway channels combined with product recovery without using state budget funds;

d) Coordinate with the Ministry of Finance and the Ministry of Planning and Investment to allocate the annual budget to implement policies for developing inland waterway transport;

đ) Coordinate with the Ministry of Finance to guide the implementation of policies for developing inland waterway transport as stipulated in this Decision.

2. Ministry of Finance

a) Take the lead and coordinate with relevant ministries to guide the exemption of stamp duty on inland waterway vessels for high-speed passenger transport and container-carrying inland waterway vessels;

b) Take the lead and coordinate with the State Bank of Vietnam to guide the implementation of interest rate subsidies for loans from credit institutions for projects to invest in vessels and infrastructure for inland waterway transport;

c) Take the lead and coordinate with relevant ministries, sectors, provincial people's committees, and municipal people's committees under the central government to guide the implementation of policies to exempt and reduce land rental and surface water rental fees for new port construction projects, renovation of warehouse systems, wharf systems, drainage systems, and internal roads of inland ports;

d) Take the lead and coordinate with relevant ministries and sectors to guide the application of income generated from new infrastructure development projects for inland waterway transport according to Point b, Clause 1, Article 15 of Decree No. 218/2013/ND-CP dated December 26, 2013, of the Government detailing and guiding the implementation of the Law on Corporate Income Tax;

đ) Take the lead and coordinate with the Ministry of Transport to arrange state budget funds for economic works related to the maintenance of inland waterways from 2016 to 2020 as stipulated in this Decision.

3. The Ministry of Planning and Investment

Take the lead and coordinate with the Ministry of Finance and the Ministry of Transport to balance the state budget and prioritize allocation of capital for the development of infrastructure for inland waterway transport until 2020.

Study and guide localities to establish specific conditions for investing in and constructing inland waterway transportation infrastructure, new and repaired inland waterway vessels outside the area, to ensure effective operation during the rainy season.

a) Guide the allocation of land funds for port construction projects within the planning and land use plans; guide the registration of the volume of sand recovered during the implementation of dredging projects under the product recovery model;

b) Take the lead and guide relevant agencies and units to organize the implementation of environmental protection regulations for dredging activities in inland waterway channels.

5. The State Bank of Vietnam

Coordinate with the Ministry of Finance and the Ministry of Transport to guide the implementation of interest rate subsidies for loans from credit institutions for projects to invest in vessels and infrastructure for inland waterway transport.

6. Provincial People's Committees and Municipal People's Committees under the Central Government

a) Implement approved plans for the development of inland waterway transport strictly;

b) Issue specific interest rate subsidy levels for loans from credit institutions for investment in vessels and infrastructure for inland waterway transport and ticket price subsidies for users in their respective regions;

c) Coordinate with the Ministry of Transport and the Ministry of Natural Resources and Environment to allocate land funds for port construction projects within the planning and land use plans of their respective regions;

d) Coordinate with the Ministry of Planning and Investment and the Ministry of Transport to balance the annual budget for the development of inland waterway transport.

Article 10. Effective Date

This Decision takes effect from December 1, 2015.

Article 11. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government shall be responsible for implementing this Decision./.