To encourage the authorities in charge of promoting PPP projects and activate the growth of the infrastructure and economy, the Ministry of Finance is now amending the regulation to expand the reward targets to both local governments and the competent authorities on promotion of private participation projects. In addition, the incentives can be used for organizations or individuals. We hope to increase the motivation of promoting private participation and boost the investment of PPP projects after the impact of the pandemic.
According to the statistics of the Ministry of Finance, 51 PPP cases were scheduled to announce a tender process in the first half of this year, of which only 34 cases were announced as planned. Due to the COVID-19 pandemic, 17 cases were delayed, affecting about NTD 1.2 billion of investment. The delayed cases include high-profile cases, such as the Taichung City Wenshan incineration plant BOT Project (NTD 4 billion), might still announce tender process before the end of the year.
The Ministry of Finance indicated that private participation in infrastructure requires investment, regulations, and time to all work perfectly together. In order to lower the impact caused by the pandemic, the Ministry of Finance has sent an official document about flexible measures to relevant authorities on May 28, 2021 asking authorities in charge to be flexible when processing different stages of PPP projects. For instance, illustration meeting can be held online or in written and the period of PPP projects announce to a tender process can be extended if necessary.
As of the end of June 2021, there have been 24 signed PPP contracts, which involve NTD 5.1 billion of investment. There is slight decline in the amount of investment, mainly due to a delay in some BOT cases. In the second half of the year, 34 PPP cases are scheduled to announce a tender process, amounting to about NTD 27 billion worth of investment, including different scopes of applications and methods of participations such as The Southern District Green Energy Plant BOT Project of Environmental Protection Bureau Kaohsiung City Government (NTD 10 billion). This shows that the PPP investment market is still hot. The Ministry of Finance highly encourages potential investors to participate in investing in infrastructure. (All related information and updates can be found on our official website Department for the Promotion of Private Participation.)
Contact: Section Chief, Chen, Tzu-Wen and Section Chief, Tung, Wei-Shuo
Tel: (02)2322-8218, (02)2322-8214