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Private Investment Surpasses 180 Billion, Cementing PPIP's Three-Year Track Record of Outstanding Performance

The Ministry of Finance announced that, over the past three years, there has been a significant increase in activities promoting private sector involvement in public construction projects at all levels of government. This marks a departure from previous years when private investment rarely exceeded a few hundred billion New Taiwan Dollars (NT$), or even less than NT$100 billion. From 2021 to 2023, private investments in infrastructure projects (PPIP) amounted to NT$188.8 billion, NT$282.8 billion, and NT$187.6 billion, respectively, marking three consecutive years of surpassing the NT$180 billion threshold. This trend underscores the proactive measures undertaken by government agencies to foster PPIP projects, which have emerged as pivotal avenues for development initiatives. This transition holds promising implications, including alleviating the budgetary strain on the government and establishing sustainable pathways for private investment.

The Ministry of Finance reported that, in the past year (2023), government agencies collectively entered into 100 PPIP contracts with private enterprises for public construction projects, amounting to an impressive NT$187.6 billion. Among these, a total of 63 cases were processed in accordance with the Act for Promotion of Private Participation in Infrastructure Projects, with a cumulative contract value reaching NT$49.2 billion. Notable participants include various central government agencies such as the Ministry of Economic Affairs and the Ministry of Education, alongside special municipalities such as Kaohsiung and Tainan, all of which ranked among the top four agencies for attracting investments in the previous year. The leading position was claimed by the NT$11.8 billion investment contract for the NTHU Taoyuan Medical and Educational R&D Park BOT Project, followed by the Kaohsiung Nanzih Wastewater Treatment Plant BTO Project with an investment of NT$8 billion. Additionally, 37 PPIP projects were processed under different regulations, amounting to a total investment of NT$138.4 billion. The highest investment amount was associated with the New Taipei City Linkou District Shintou Lake Establishment of Superficies Project, overseen by the Ministry of Finance's National Property Administration, with an investment sum of NT$26.8 billion.

According to the Ministry of Finance, to incentivize government agencies to engage in PPIP projects, the Ministry, in line with the "Operational Guidelines for Collecting Information and Issuing Incentive Funds for Government Agencies to Handle PPIP Projects," offers signing bonuses to sponsoring agencies based on contract amounts. For 2024, as an example, central government agencies received a total of NT$21.9 million, while local governments received NT$245.14 million, resulting in a total disbursement of NT$267.04 million. The Ministry plans to invite the Premier to personally present these awards to the respective agencies during the annual investment promotion conference slated for July of this year.

It is worth mentioning that, to enhance the effectiveness of signing bonuses in incentivizing participation, the Ministry of Finance has revised regulations to loosen restrictions on their use. In addition to serving as personal bonuses, government agencies must allocate and manage these funds separately through dedicated units. The bonuses may then be utilized for a range of purposes, such as Promoting activities related to PPIP projects, providing incentives to groups or individuals, compensating contracted personnel, sponsoring local government participation in overseas marketing activities, or facilitating learning from benchmark cases. This helps address manpower shortages and offers sponsoring agencies more significant rewards and support.

 

Press release contact: Section Chief Chen, Tzu-Wen and Chuang, Ching

Tel: (02) 2322-8214, (02)2322-8218

Issued:Promotion of Private Participation Release date:2024-03-21 Last updated:2024-04-30 Click times:305