To attract private capital to invest in infrastructure, reduce the government deficits, improve the quality of services on infrastructure projects, and boost the economy, the Ministry of Finance held the “2020 Seminar on the Promotion of PPP Infrastructure Projects and Financing Mechanism” in the Civil Service Development Institute (Howard Civil International Service House) on September 23 and exchanged opinions with experts and scholars from the industry, the government, and the academia regarding the mechanism for the government procurement of public services and financing mechanism of infrastructure.
The Ministry of Finance indicated that, given the experience and successful cases accumulated in the more than 20 years of private involvement in infrastructure that has been promoted in Taiwan, and in light of the fact that most of the efforts to promote involvement are primarily funded through financing from domestic banks and most of them are collateral loans, the increase of diversity in financing channels helps with the implementation of PPP projects. In addition, to address the needs for the development of sectors, such as long-term care for the aging population, the government needs to purchase public services. The amendment of the Act for Promotion of Private Participation in Infrastructure Projects (hereinafter referred to as the “Act”) is being discussed to include the mechanism for the government to purchase public services. Parties from all walks of life exchanged opinions in order to reach a consensus about the amendment to serve as reference while the scope of operation moves further forward.
The Seminar invited Toshiaki Tashiro, senior legal specialist of Lee and Li, Attorneys-at-Law; Paul You, Chairman of First Securities Investment Trust Co., Ltd.; Jeff Chang, Chairman of Cathay Securities Investment Trust Co., Ltd.; and Shih-Chung Huang, the former General Manager of ICBC Assets Management & Consulting Co., Ltd. to make professional and practical suggestions on “the Development and Challenges of PPP Projects Adopting Government Procurement of Public Services”, “Practical Sharing on Infrastructure Projects Attracting Private Equity Fund”, and “Practical Sharing on the Promotion of PPP Projects using Project Financing”. Other representatives from the Financial Supervisory Commission (FSC) Securities and Futures Bureau, Banking Bureau, the Land Bank of Taiwan, the Water Resources Bureau of Kaohsiung City Government, the Graduate Institute of Construction Engineering and Management of National Central University, the Department of Civil Engineering of National Taiwan University, Lee and Li, Attorneys at Law, Orsted Taiwan Limited, and Forest Water Environmental Eng’g Co., Ltd. that took part in the discussions provided their practical experience and advice on the promotion from professional perspectives.
Political Deputy Minister Chuang, Tsui-Yun indicated in her closing speech that advice provided by all participants in the seminar would serve as important references while the Act and related packages are being stipulated in the future as diversification of the PPP patterns and private investment channels continues.
This seminar was well received among the participants. More than 220 people from the various agencies, related societies and associations, and consulting institutions attended it. It is obvious that the inclusion of the government procurement of public services in the Act and a domestic PPP program diversified financing measurements utilization mechanism has been closely followed in all respects. We hope Taiwan capital markets will have more diversified financing vehicles to stimulate the investment market in the long-term to upgrade the level of public service and to expedite social economic development.
Contact: Section Chief, Tung, Wei-Shuo