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| Now and for the Future |
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Underlying Principles The Act for Promotion of Private
Participation in Infrastructure Projects, which was promulgated on
Feb. 9, 2000, espouses the spirit of vigorous innovation and, from
the aspect of creating benefit, establishes partnership relations
between the government and the private sector. The main features of
this Act include the following: |
- Embodiment of general-type legislation: The Act applies alike to all types of industries,
sectors, and development plans; it maintains flexibility of
articles, and expands the delegation of administrative authority
to the government officials implementing the projects.
- Embodiment of the civil contract concept: The Act adopts the principle of civil contracts
under which rights and obligations between the government and
private sector shall be stipulated in the concession agreement to
reflect the partnership spirit of equal cooperation and create
"win-win" investment conditions.
- Maximization of private participation: Not only is the scope
of infrastructure development in which private participation is
permitted extremely broad and the methods of participation
diverse, but private entities may also carry out their own
planning of proposals for participation in infrastructure
projects; this allows the private sector to discover investment
opportunities, and to give full rein to its creativity in planning
investment projects.
- Maximization of government carefulness: In the interest of
completeness, feasibility studies and preliminary planning should
be conducted for all infrastructure projects which the government
plans for private participation; from the viewpoint of private
sector, the feasibility of private investment should be evaluated
carefully and, in consideration of the special characteristics of
the infrastructure project, commercial incentives should be
incorporated in the formulation of the preliminary plan.
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Scope of Infrastructure
Projects
- Transportation facilities
- Common conduit
- Environmental pollution prevention facilities
- Sewage lines
- Water supply facilities
- Hydraulic facilities
- Sanitation and medical facilities
- Social welfare facilities
- Labor welfare facilities
- Cultural and educational facilities
- Major facilities for tour-site
- Power facilities
- Public gas and fuel supply facilities
- Sport facilities
- Parks facilities
- Major industrial facilities
- Major commercial facilities
- Major hi-tech facilities
- Development of new town
- Agricultural facilities
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Models of Private Participation
- The private institution invests in the building and operation
of the infrastructure project, and upon expiration of the
operation period, transfers the ownership to such infrastructure
project to the government. (Build-Operate-Transfer, or BOT model.)
- The private institution invests in the building of the
infrastructure project and upon completion of the building,
relinquishes the ownership to the government without compensation.
The government then commissions the operation of the
infrastructure project in question to the same private
institution. Upon expiration of the operation period, the right to
operate reverts back to the government. (Build-Transfer-Operate,
or BTO model.)
- The private institution invests in the building of the
infrastructure project and upon completion of the building, the
government acquires the ownership through the payment of the
construction expenses, either by a lump sum payment or by
installment payments. The government then commissions the
operation of the infrastructure project in question to the same
private institution. Upon expiration of the operation period, the
right to operate reverts back to the government.
(Build-Transfer-Operate, or BTO model.)
- The government commissions the private institution, or the
private institution leases from the government, existing
facilities for operation after making renovations or expansions.
Upon expiration of the operation period, the right to operate
reverts back to the government. (Rehabilitate-Operate-Transfer, or
ROT model.)
- The government invests in the building of the infrastructure
project and then commissions the operation thereof to the private
institution. Upon expiration of the operation period, the right to
operate reverts back to the government. (Operate-transfer, or OT
model.)
- To support the national policy, the private institution
invests in the building of the infrastructure project and owns the
ownership thereto upon completion of the building, and then either
operates the facility by itself or commissions a third party for
operation. (Build-Own-Operate, or BOO model.)
- .Any other model as may be approved by the competent
authority.
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Application and Evaluation
Procedures
- Government-planned projects
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- Unsolicited proposal – the proponent provides
land for project utilization
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- Unsolicited proposal – the government provides
land and/or facilities
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Note: Excluding time required for the
private applicant to submit project documents in accordance with
Article 46 of the Act, for solicitation of other private investors
by the arranging authority, and for private investors to provide
additional required documents. |
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*"Major infrastructure projects"
refers to those infrastructure projects which are important and with
certain scale. The scope of the major infrastructure projects shall
be determined by the competent authority in conjunction with the
relevant authorities. |
- Government Promotion Mechanism
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The Executive Yuan established the Committee for the Promotion
of Private Participation in Infrastructure Projects at the end of
2002 in order to provide a cross-ministerial coordination mechanism
for such projects. The Committee is headed by the premier and is
composed of the heads of central-government ministries and
commissions. An coordination task force was also set up, with the
competent authority (the Public Construction Commission) handling
staff operations, for the task of promoting private participation in
infrastructure projects by central government ministries and local
governments, and for intensified coordination in removing investment
obstacles that require cross-ministerial cooperation. The ministries
and commissions, as well as county and city governments, have also
set up their own private participation promotion committees to
oversee coordination and resolution of problems encountered in
carrying out private participation projects within their
jurisdictions. |
| Government Coordination and Promotion Mechanism |
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After years of vigorous implementation, large amounts of
infrastructure construction that was once dominated by the
government works budget has been released to private construction
and operation. From just a few tens of millions of NT dollars in the
beginning, the accumulated value of projects for private
participation has reached more than NT$300 billion. In 2003 private
investment amounted to NT$62.47 billion, an eight-fold increase over
the NT$7.27 billion recorded the previous year. In addition to
benefiting the government budget to the tune of hundreds of billions
of NT dollars, this effort has also created over 20,000 jobs and has
allowed the public to enjoy high-quality infrastructure facilities
earlier than would have otherwise been possible. This is a
win-win-win result, for the government, for private enterprises, and
for society at large. nn nIncreased in Signed Private-Participation
Infrastructure Projects
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Transportation facilities and common conduit
- -- Metropolitan mass rapid transit systems: Taipei
MRT loop line, etc.
-- Metropolitan light rail systems: Taipei,
Xinyi District light rail system; Kaohsiung, harbor area light
rail system; Tainan, light rail transportation system; etc. --
Intelligent transportation systems: Kaohsiung intelligent city,
etc. -- Transportation and terminal facilities: Suao-Hualien
highway, second-stage construction; Direct Taipei-Yilan railroad;
Taiwan Railway, Nangang Station building; Miaoli railroad
exhibition gallery; Taipei Railway Station, 2nd floor vendor area;
etc. -- Parking lots: Banciao, Jhongsiao parking lot; Hsinchu
City parking lot, new construction, etc. -- Freeway rest areas:
Jhongli Rest Area, Hukou Rest Area, Guansi Rest Area, Taian Rest
Area, Siluo Rest Area, Sinying Rest Area, Rende Rest Area,
Guanmiao Rest Area, etc. -- Port facilities: Keelung Free Port,
outer harbor construction; Port of Taipei, second cargo hub;
Taichung Harbor, West Wharf No. 8 and rear-line construction;
Kaohsiung Harbor, second logistics center at Third Container
Terminal; Kaohsiung Harbor, water recreation and business area;
Anping Harbor, hydrofoil terminal; etc.
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Environmental pollution prevention facilities
- -- Garbage incinerators: Incinerators in Nantou
County, Hualien County, etc.
-- Final landfill for general
industrial waste: Landfills for Taoyuan County, Miaoli County,
Keelung City, etc. -- Kitchen waste recycling plant:Recycling
plants for Taoyuan County, Kaohsiung city, etc. -- Auto
emissions testing stations: Encouragement of the private sector to
propose auto emissions testing stations. -- Soil regulation
centers: Dirt regulation centers for the Da-an Dirt Bank in
Taichung County, etc.
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Sewage channels, water supply, and water conservancy
facilities
- -- Sewage channels: Sewage channels for Danshuei,
Ban-Sin (Sansia, Yingge, Puding), Taibao, Shihlong River (Dashe,
Renwu), Luodong, Beigang, Taitung, Jiali, Neipu, Taichung,
Changhua, Dounan, Gueiren, Magong, Yanshuei, Tainan, Gangshan,
Ciaotou, Rueifang, Daliao, Yuli, Jhongli, Chiayi, Nantou, Puli,
Caotun, Jhushan, Yongkang, Toufen, Fongyuan, Hemei, Lugang,
etc.
-- Water supply: Pingding water treatment plant,
etc. -- Small Hydroelectric Plants: Small hydroelectric plant
Mudan Reservoir, etc. -- Flatland reservoirs: Dahu in Yunlin,
Dahu in Kaohsiung-Pingtung, Dahu in Tainan, etc. -- Seawater
desalination plants: Desalination plants in Kinmen (2,000 tons),
Matsu (2,000 tons), Penghu (10,000 tons), Hsinchu (30,000 tons),
Taoyuan (120,000 tons), etc.
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Sanitation and medical facilities
- -- Outsourcing of operation of certain facilities:
Taipei Hospital: Cooperation of Catheterization; Changhua
Hospital: magnetic resonance imaging machines; Puzih Hospital:
Hemodialysis room; Cishan Hospital: respiratory care ward;
Fongyuan Hospital: breast magnetic resonance imaging equipment;
Nantou Hospital: Gyroidal tomography equipment; Chenggong
University Hospital: linear accelerator; Veterans General
Hospital, Taipei: Palliative and Hospice services; Veterans
General Hospital, Taichung: magnetic resonance imaging examination
center; Veterans General Hospital, Kaohsiung: positron emission
tomography center; Veterans General Hospital, Kaohsiung: chronic
disease clinic and care center of the subtropical medicine center;
Chenggong Branch, Taitung Hospital: nursing home; Beimen Branch,
Sinying Hospital: nursing home; Chiayi Hospital: center of
cosmetic medicine; Tainan Hospital: Living Square; etc.
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Social and labor welfare facilities
- -- Social welfare facilities: Senshu Nursing
Center of the Malan Veterans Home, Renai Hall of the Pingtung
Veterans Home; children's wing, nursing building of theTaipei
County Senior Citizens Home of Compassion; Taoyuan County
consolidated welfare service center for the mentally and
physically disabled; Taoyuan County funeral parlor; Danhai New
Town senior citizens' housing construction project; Kaohsiung New
Town senior citizens' housing construction project; Pinglin senior
citizens' healthy living park; etc.
-- Labor welfare
facilities: Skills rating hall of the Tainan Vocational Training
Center, etc.
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Cultural and educational facilities
- -- School facilities: Swimming pools at Changhua
Girls' Middle School, Taichung Girls' Middle School, Tainan Girls'
Middle School, Wenhua Senior Middle School, Tainan Marine
Vocational High School, Sanchong Commercial and Industrial School,
Sindian Primary School, and National Taiwan University of Science
and Technology; training hotel at Tainan Commercial High School;
youth academic exchange center at National Taiwan University;
innovation incubator at National Central University; innovation
incubator at National Tsinghua University; etc.
-- Social
education facilities: National Museum of Prehistory, Sept. 21
Earthquake Education Park, National Museum of Marine Technology,
Jhongshan Building at Yangmingshan, etc. -- Cultural
facilities: Popular music centers in northern, central, and
southern Taiwan; Taipei Art Center; Culture Park of the Hualshan
Creative Park; New Greater Taipei Opera House; Taichung Opera
House; Weiwuying Popular Arts Center; Taoyuan County Indigenous
Peoples Cultural Hall; Nankan New Town Art Center; Taoyuan Hakka
Culture Hall; Dasi Club House and Chiang Kai-shek House;
etc.
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Major facilities for tour-site
- -- Northern Taiwan: Budget hotels in Taipei City,
Beitou cable car, Lengshueikeng Recreation Area, Yangmingshan
Guest House, Mt. Guanyin cable car, Lover's Lake Park, Fulong
Beach Resort, Yeliou Geo-Park, Shihmen Reservoir Scenic Area,
Syuejian Recreation Area in Shei-Pa National Park,etc.
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Central Taiwan: Lishan Guest House, Houli Horse Farm, Mt. Bagua
Resort, international hotel at Sun Moon Lake, etc. -- Southern
Taiwan: Chukou Camping Resort, Guanshan Green Garden Eco-Park and
Kending Art Village in Kenting National Park, Hutoubei tourist
hotel, Baolai resort hotel, Saijia Air Park, Liouciou Scenic Area,
etc. -- Eastern Taiwan: Nanao Farm, Dongshan River Recreation
Area, Liou Clubhouse and Visitor Center, Fonglin Resort,
Sansiantai hotel area, Jinlun Hot-spring Area, Hongye Hot-spring
Recreation Area, Chihshang Visitor Center, Liyu Lake Visitor
Center, etc. -- Offshore islands: Yuwong Islet Resort, Jibei
Resort Hotel and Recreation Area, Kinmen National Park Visitor
Hall, etc. . |
Power facilities and public gas and fuel supply
facilities
- -- Wind generators: Beimen Coastal Wind Power
Project (3,500KW), etc.
-- Hot-spring generators: Cingshuei
Hot-spring Power Project, etc.
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Sport facilities -- County and city sports facilities: Taipei
County Sinjhuang Gymnasium swimming pool, Taoyuan County
Multi-purpose Sports Park, Taoyuan County General-purpose Gymnasium,
Tainan City Sports Center, Hsinchu County Sports Park, Yunlin County
Baseball Stadium, Taichung City Baseball Stadium, etc. Parks
facilities-- County and city park and green area facilities:
Chenggong Camp Water Park in Changhua County, Taichung Metropolitan
Park, Kaohsiung Metropolitan Park, etc.
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Major industrial, commercial, and hi-tech facilities
- -- Retail markets: Jhonglun Market at Fongshan,
Kaohsiung County; Shenaokeng Market in Keelung; etc.
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Industrial zones and science parks: Southern Taiwan Science Park,
Far Eastern Digital Communications Park, etc. -- International
exhibition hall and international conference center construction
projects
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New town development
- -- Integrated new town development: Danhai New
Town, Kaohsiung New Town, etc.
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Agricultural facilities
-- Agriculture recreation facilities: Donghe Branch of Taitung
Farm, Cilan Forest Recreation Area, Mingchih Forest Recreation Area,
Alishan Forest Railroad and Forest Recreation Area, Aowanda Forest
Recreation Area, Mt. Hehuan Forest Recreation Area, Guanwu Forest
Recreation Area, Tengjhih Forest Recreation Area, Mt. Dongyan Forest
Recreation Area, Mt. Dasyue Forest Recreation Area, Chihnan and Mt.
Mugua cable cars, etc. -- Agriculture promotion facilities:
Changhua Flower Exposition Hall, Taipei Flower Market, Miaoli
multi-function agriculture promotion and education facilities,
etc. -- Agriculture technology parks: Tainan Orchid Biotechnology
Park, Yilan Marine Biotechnology Park, Chiayi County Herbal
Medicines Biotechnology Park, etc. -- Fishing harbor facilities:
Anping Harbor live fish shipping hub, Jhuwei Fishing Harbor and
Coastal Recreation Area, Houlong Coastal Recreation Area, Waipu
Fishing Harbor in Miaoli County, Jiangjyun Harbor Holiday Fish
Market, Dongshih Fishing Harbor, Wushih Fishing Harbor, Gulf Hotel
at Penghu Third Fishing Harbor, Anping Harbor Live Fish marketing
and transshipment area, Donggang Fishing Harbor direct sales center,
etc.
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