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The legal framework for the Promotion of Private Participation 2.0 is complete—Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects has been revised and released

After the presidential decree on December 21, 2022, which revised and promulgated partial articles of Act for Promotion of Private Participation in Infrastructure Projects (hereinafter referred to as the Act for PPP), a new era of Promotion of Private Participation 2.0 began. Following the approval of Enforcement Rules of the Act for Promotion of Private Participation in Infrastructure Projects by the Executive Yuan on December 7, 2023, was released and implemented on December 28, 2023. This final piece completed the legal framework for Promotion of Private Participation 2.0, serving as the last key component of this achievement!

The Ministry of Finance stated that, to support the revision of the Act for PPP, the updated Enforcement Rules encompass four major aspects: enhancing the investment environment, diversifying private participation, implementing rigorous approval processes, and enhancing operational efficiency. Regarding the reinforcement of the investment environment, aside from introducing new definitions for digital infrastructure, green energy facilities, audiovisual and music facilities, and agricultural and resource recycling and reuse facilities, among other emerging public construction categories, a significant change involves the removal of the original threshold restrictions on total investment or development scale.

Infrastructure in past PPP projects, such as transportation facilities like airport facilities, harbor facilities, parking lots, as well as large logistics centers, international convention centers, and major shopping centers within commercial facilities, used to face restrictions in total investment or development scope. This amendment aims to eliminate investment threshold limitations and loosen relevant regulations. Consequently, the authority in charge can now plan PPP projects more flexibly and easily adhere to public infrastructure category regulations. The authority in charge can design complex public infrastructures involving more than two types of public infrastructure as needed. This change is beneficial for enhancing the overall self-financial capability of private institutions and facilitating effective government supervision and management, so as to yield positive results in promoting public infrastructures.

Another aspect involves diversified private participation. This amendment explicitly defines extension, reconstruction, and repair, and establishes project approval processes for PPP with compensation to enhance opportunities for private involvement. The rigorous handling process encompasses pre-assessment operations upon case initiation, and significant projects require the public disclosure of investment documents before the initial announcement, aiming to refine handling process in PPP projects. This amendment also delineates matters that the authority in charge may authorize or delegate, preventing repetitive preliminary work on the same projects. This measure aims to enhance overall operational efficiency through a more rigorous handling process.

The Ministry of Finance further stated that the supporting measures related to Promotion of Private Participation 2.0 have been completed. On June 20, 2023, the Ministry of Finance promulgated Regulations for Policy Evaluation of Government Acquisition of Public Services with Compensation, and established a contract performance dispute mediation committee on July 1 of the same year. Additionally, Enforcement Rules of the Act for PPP was reviewed, revising 54 articles and adding 11 new articles, bringing the total count to 94 articles after amendment. This revision represents a significant advancement in the PPP legal framework, aiming to create more friendly and convenient investment environment and approval procedures by finalizing the processes of legal framework.

The Ministry of Finance aspires that the publication and implementation of Enforcement Rules of the Act for PPP will lead to an increase in PPP projects, a reduction of risks in private investment, enhanced rigor in approval processes, and efficient administrative procedures, to bring up transformation in the methods and benefits of Private Participation in Infrastructures. These endeavors aim to consistently provide the public with improved services. This moment marks an important milestone in the realization of Promotion of Private Participation 2.0.

Press release contact: Section Chief Zhuang,Jing

Tel: (02)2322-8460

Issued:Promotion of Private Participation Release date:2024-01-04 Last updated:2024-01-16 Click times:533