The Vietnamese Ministry of Transport has asked the central Government’s approval for seeking private investments for restoration of infrastructure for the Đà Lạt – Trại Mát Railroad, in Lâm Đồng Province. Private investment is considered necessary to maintain the railway and will also help the state cut management costs and earn more money from the operation of Đà Lạt Railway Station.
The private investment would take the form of BOOT (Build–Own-Operate–Transfer). The proposed BOOT project has a total investment of VNĐ 79.2 billion (EUR 2.9 million). The investor will be refunded in 25 years through train tickets and operation of facilities at the two railway stations on the railroad.
If the proposal is approved by the Prime Minister, the Việt Nam Railway Authority will complete procedures to hold a tender by the end of the year. The proposal is supported by several agencies, authorities and Lâm Đồng Province People’s Committee.
The railway section is part of the 84-km Tháp Chàm – Đà Lạt Railway, which was suspended in 1968. The 6.7-km Đà Lạt – Trại Mát section was restored in 1991 to serve the tourism industry. This stretch has been operating independently and is not connected with any railway network in the region. The state had earned VNĐ 196 million (EUR 7,302) in operating fees from the railway section, while spending VNĐ 2.4 billion (EUR 89.419) for management and maintenance services per year.
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