State-owned properties are assets that belongs to all citizens. The Ministry of Finance therefore adopts diverse methods such as invitation to tender for superficies rights, participation in urban renewal, improvement and lease by tender in cooperation with the competent authorities in charge of relevant industries to activate state-owned non-public use real estate with the goal of enhancing the utilization efficiency of state-owned property, activating state-owned assets, create sustainable financial resources, and leveraging functions such as support for industries and economic invigoration in line with national policies. State-owned real estate is released in full support of social housing and long-term care policies adopted by the government. The specific practices and accomplishments can be described as follows:
1. Invitation to tender for superficies rights: Usage rights are released for private development to invigorate the economy, increase employment opportunities, raise tax revenues, and create sustainable financial resources provided that such rights are owned by the government. In 2019, invitation to tender was publicly announced for 26 plots of land. Bids were submitted for 11 plots. Royalty payments for awarded tenders amounted to NT$7,072,000,000. In 2020, tenderers are invited to bid for superficies rights for the site of World Trade Center Hall 3 and the original site of Cathay business operations (in the vicinity of Songshan International Airport). Invitation to tender for the site of World Trade Center Hall 3 will be publicly announced on January 20, 2020. Tender opening is scheduled for March 30.
2. Participation in urban renewal: From 2004 to the end of 2019, the private sector initiated a total of 1,476 urban renewal cases covering a total area of 88.5 hectares on state-owned land with government participation. Selection has been completed and rights transfer plans have been approved for 45 cases currently in progress. This is expected to result in the allocation of 363 buildings, 427 parking spaces, and royalties amounting to NT$519,120,000 to the government. From the already apportioned 214 housing units in 17 communities, 127 units have been sold by tender and 1 unit has been leased by tender. Bids have been submitted for all units in 5 communities. Payments to the National Treasury exceeded NT$5.9 billion (in 2019, proceeds from sale by tender of 39 units amounted to NT$1.84 billion).
3. Improvement and utilization in cooperation with competent authorities in charge of relevant industries: Private capital has been attracted to boost industrial development pursuant to relevant regulations set forth in Article 47 of the National Property Act in line with industrial development needs of local governments and competent authorities in charge of relevant industries. By the end of 2019, contracts had been signed with competent authorities for a total of 60 cases currently still in progress. Investment solicitation has been completed for 43 cases and is still in progress for 17 cases. Total revenue is projected to reach NT$30.2 billion during contract performance periods.
4. Lease by tender of state-owned non-public use real estate: In 2019, invitation to tender for lease was publicly announced 52 times. Bids were submitted for 373 plots of land covering a total area of 37.37 hectares and 19 buildings covering an area of 0.1442 hectares. Revenue from lease by tender (contract royalties and lease payments) reached NT$204.59 million.
5. Promoted adoption of state-owned non-public use cultural assets: Upon the formulation and enactment of the Guidelines Governing Adoption and Maintenance of State-owned Non-public Use Cultural Heritage on September 7, 2018, information meetings were held in Kaohsiung, Taichung, Tainan, Pingtung, Changhua, New Taipei City, Hsinchu and Taipei to give local authorities in charge of culture and users of cultural assets in these areas a clear understanding of regulations pertaining to cultural heritage adoption and management. By the end of 2019, cultural heritage in 7 locations had been offered for adoption.
6. Promoted adoption of state-owned non-public use marginal land: Upon formulation and enactment of the Principles Governing the Offering of State-owned Non-public Use Marginal Land for Adoption to Promote Environmental Protection on January 30, 2019, lists of state-owned marginal land are screened on a regular basis as a reference for assessments by environmental protection organizations. By the end of 2018, environmental protection organizations had signed two adoption contracts covering a total area in excess of 452 hectares.
7. Assistance in the promotion of social housing policies: By the end of 2019, the appropriation of state-owned land in 34 locations and state-owned housing in 2 locations (10 units covering a total area of 21.35 hectares) and lease 3 locations of state-owned land covering a total area of 4.02 hectares had been completed. State-owned land in 75 locations and state-owned housing in 1 location (12 units covering a total area of 38.31 hectares) have been reserved for the promotion and construction of social housing by competent authorities in charge of residential housing.
8. Provision of state-owned real estate as required for long-term care policies:
(1)Provision of 138 plots of land and housing in 1 location as public resources for the establishment of residential long-term care institutes upon assessment by the Ministry of Health and Welfare.
(2)Submission of a list of idle housing in 151 locations for assessment by the Ministry of Health and Welfare in line with the Long-term Care 2.0 Policy.
(3)Improvement and utilization of state-owned land which served as the original site of the Taiping Veterans Home in Beinan Township, Taitung County, in cooperation with Taitung County Government and provision of 9 hectares of state-owned non-public use land for the planning of an Investment Solicitation Program for International Senior Health and Wellness Sites in Taitung County.
9. Review unwinding of regulations in line with government policies:
(1)Addition of provisions in Article 8-1 of the Regulations for Leasing of State-owned Non-public Use Real Estate and promulgation of Regulations Governing the Lease by Tender of State-owned Non-public Use Land for the Installation of Photovoltaic Power Facilities: The State-owned Property Administration publicly announced the invitation to tender for the lease of 2 batches of state-owned land in May and September, 2019. Bids have been submitted for 4 plots of land in Tainan City, Kaohsiung City, Taichung City, and Chiayi County covering a total area of 6.67 hectares.
(2)Amendment of the Directions for the Leasing of State-owned Farmland: Leasing is carried out pursuant to the provisions set forth in Item 1, Paragraph 1, Article 6 of the Regulations Governing Leasing of State-owned Farmland. No restrictions shall exist on lessee name changes in farmland lease contracts provided that the 37.5% Arable Rent Reduction Act is not applicable. This measure facilitates the solution of issues associated with state-owned land cultivated by farmers on a long-term basis without official farmland lease contracts in addition to improvement of the livelihood of farmers.
(3)Amendment of the Guidelines for the Lease by Tender of State-owned Non-public Use Real Estate: Based price calculation standards for contract royalties associated with the lease by tender of state-owned land have been adjusted to ensure consistency with annual lease rate standards. The goal is to avoid confusion on the part of the public, implement reductions compared to standards prior to amendment, increase the willingness of the public to submit bids, and enhance the benefits derived from activation and utilization of state-owned land.
The optimal use of state-owned assets to ensure maximum benefits and sustainable state-owned finances represents a paramount mission of state-owned fiscal administration personnel. Looking ahead, the Ministry of Finance is firmly committed to the activation of state-owned assets, creation of sustainable revenues for the National Treasury, assistance in the fulfillment of industrial development needs, increase of employment opportunities, and sharing of the benefits derived from the activation of state-owned assets with the government and the private sector. The ultimate goal lies in the achievement of the policy goal of a mutual symbiosis of fiscal affairs and construction.
Press release contact person: Ms. Tsai-Yeh Wang, Executive Secretary, National Property Administration
Tel: (02)2771-8121 Ext. 1005