The Ministry of Finance held the inauguration ceremony of epoch-making PPIP at the NTUH International Convention Center today (14 November). There were over OOO attendees from industry, government, and academia gathered together. President Tsai Ing-wen, Premier Su Tseng-chang, and Li Meng-yen, Secretary-general of the Executive Yuan also came to celebrate the inception of epoch-making PPIP. It is expected that more diverse public infrastructure will be on the list and appeal to private businesses to invest together with the public sector and realize “Golden Thumb for PPIP, Common Good for Taiwan.”
Act for Promotion of Private Participation in Infrastructure Projects (referred to as the PPIP Act) was enacted in 2000. During the past 22 years, there have been over 1,500 PPIP projects, attracting private investment that amounted to over NTD 900 billion. The projects have covered all aspects of people’s daily life, including food, medicine, accommodation, transportation, education, and recreation. In addition, the draft amendment to the PPIP Act was passed by the Legislative Yuan, which is considered as an upgrade to version 2.0. This will introduce more technologies and funding from the civil society, accelerate the promotion of public infrastructure nationwide, and provide high-quality public services.
At this special moment that inherits the past and ushers in the future, the Ministry of Finance especially presents a certificate of appreciation to 22 private business teams who actively participated in PPIP projects in these 22 years. The enterprises include Radium, CTCI, Uni-President, Continental Holdings, Far Eastern Group, Epoque Corporation, Evergreen Marine, Cathay Life Insurance, China Medical University, and Lealea Group (see Appendix for more information). These 22 enterprises invested in more than 234 PPIP projects that amounted to NTD 345 billion. This contribution accounted for one third of the total investment amount of PPIP projects. The categories of public infrastructure include sewage systems, transit stations, reclaimed water, electric toll collection systems, large logistics centers, duty-free stores, exhibition halls, container harbors, libraries, incineration plants, highway service areas, parking lots, and sports centers. It can be said that almost everyone can enjoy the high-quality service in their daily life provided by the PPIP projects.
Premier Su Tseng-chang expressed that public infrastructure is the beginning of domestic economic growth. The government has limited resources, so it requires effort from both public and private sectors. This is also a critical objective of the policies developed by the Executive Yuan. The Executive Yuan set up the Promotion of Private Participation in Infrastructure Projects Workforce on 25 January 2021. The workforce will guide and encourage agencies to develop major public infrastructure, namely long-term care facilities, seawater desalination plants, sewage systems, reclaimed water plants, and diverse garbage treatment facilities, through PPIP projects. The purpose is to complete the construction as early as possible and provide citizens with services that really work. Today’s inauguration ceremony of epoch-making PPIP is particularly meaningful. People feel optimistic about the increasing opportunities of investing in the public infrastructure of Taiwan! The economy of different countries in the world has recovered, and therefore more resources need to be allocated to establish more public infrastructure and services. To do so, the power from the civil society is the strongest shield for the government. We hope that we can work together and put our joint effort into Taiwan.
The Minister of Finance Su Jain-rong pointed out that PPIP business was transferred to the Ministry of Finance from the Public Construction Commission, Executive Yuan in 2013. This is the 10th year, and the PPIP results have become better. According to the statistics of the Promotion of Private Participation, Ministry of Finance, the result for this year is especially excellent. There were 94 PPIP contracts signed in accordance with the PPIP Act and other regulations. It is estimated that private investment this year will reach over NTD 260 billion, which ranks the highest in history. This shows that introducing private participation in public infrastructure has become an important channel for business’ investment and the best solution to the insufficient sources of funding in public infrastructure. This year, the Ministry of Finance will amend the PPIP Act to a large extent which may be approved by the end of this year. A more comprehensive PPIP Act will create a better investment environment, opening up an epoch-making era of PPIP 2.0. The government, enterprises, and citizens will benefit more from the PPIP plan in the hope of achieving “Golden Thumb for PPIP, Common Good for Taiwan.”
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