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Wednesday, July 24, 2024

Transport Ministry signs VND2,821 billion railway maintenance contract

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HCMC – The Ministry of Transport and the Vietnam Railway Corporation (VNR) on May 24 signed a contract worth VND2,821 billion for railway infrastructure maintenance in 2021.

The contract is valid until December 21, 2021, in which VNR will be in charge of providing maintenance services for the national railway infrastructure this year.

Addressing the signing ceremony, Minister of Transport Nguyen Van The asked the two sides to accelerate the maintenance of the national railway infrastructure to ensure smooth and safe rail transport and the income of people working in the railway sector.

The signing came one week after the prime minister assigned the Ministry of Transport to ask VNR to manage and maintain the railway infrastructure facilities this year instead of assigning the job directly to VNR.

The prime minister’s decision put an end to the argument between the Ministry of Transport and VNR on the handling of VND2,821 billion for railway maintenance.

In previous years, the Ministry of Transport handed over the railway infrastructure maintenance fund to VNR as it is under the ministry’s management.

However, since 2019, VNR has been under the Commission for the Management of State Capital at Enterprises, so the ministry did not hand over the fund to VNR as it went against the Law on State Budget.

Of the VND2,821 billion of the infrastructure maintenance fund, 10% will be used for the regular repair of broken constructions, 10% for the purchase of substitute materials, 2% for equipment and over 70% for paying the salaries of some 11,300 workers.

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