In an effort to stimulate the investment potential of domestic public works and rapidly bring together the private sector to tap into public works investment opportunities, the Ministry of Finance (MOF) convened the 2022 TAIWAN PPP Investment Convention & Award Ceremony” at the Taipei International Convention Center (TICC) today (July 14th), which released 82 PPP projects worth over NT$ 180 billion. Types of infrastructure include transportation, agriculture, recycling and reuse, long-term care, healthcare, culture and education, tourism and recreation, etc. More information is available on “MOF PPP iMAP.” (https://ppp.mof.gov.tw/WWW/iMap.aspx). All are welcome to participate and invest in Taiwan more.
Premier Chen Chien-Jen, and Secretary-general Li Meng-yen, and Spokesperson Lin Tze-luen of the Executive Yuan attended the Convention, showing their support for private participation of public infrastructure. In Premier Chen’s remarks, he expressed that the competitiveness of Taiwan in recent years has been worldwide recognized. Robust public infrastructure plays a critical role in keeping Taiwan competitive. The Premier also mentioned that the Act for Promotion of Private Participation in Infrastructure Projects (referred to as the PPIP Act) was enacted in 2000. During the past 23 years, it has bolstered many successful public infrastructure projects where the public and private sectors worked together for people’s daily life in the realms of food, healthcare, housing, transportation, education, and recreation. High-quality public services are therefore in place; the government is also able to cut expenditure and create more job opportunities. In response to changing times and social needs, Taiwan implemented PPIP 2.0 with the amendment to the PPIP Act published last year on December 21, 2022. It aims to further expand the scope and models of public and private collaboration, stimulate more vibrant economic development of Taiwan, and provide citizens with finer public services.
The outcome of private participation in public infrastructure was outstanding in 2022. Premier Chen presented the awards to acknowledge the efforts of agencies. Distinguished Awards for Excellence were presented to the first and second place of central agencies, municipalities, and county or city governments. Additional three Special Awards were handed out. Meanwhile, contract signing and performance rewards were also offered, with a total amount of over NT$500 million granted to 23 government agencies. Among them, the Ministry of Transportation and Communications, the Ministry of Education, and the Ministry of Economic Affairs received the highest amount of NT$5 million each from the central government. The Taoyuan City Government received the highest amount of approximately NT$110 million among other municipalities, and the Penghu County Government received the highest amount of NT$40 million among the county and city governments.
Minister Chuang of Finance pointed out in her remarks that the PPIP Act looks to realize diverse private participation by adding public infrastructure categories, namely audiovisual, green energy, recycling and reuse, and digital construction, to broaden project sources. Furthermore, the Act incorporates private participation models such as “Extend, Reconstruct, Repair-Transfer-Operate (RTO),” “Extend, Reconstruct, Repair-Operate-Own (ROO),” and the Private Finance Initiative (PFI) system. This can effectively reduce the risks of private investments while increasing investment incentives. As a result, the PPIP model of Taiwan will be gradually aligned with international standards. Moreover, the amendment introduces a mediation mechanism for disputes arising from contract performance, providing a rapid resolution approach and alleviating concerns from the civil society when investing in public infrastructure projects. Upon the amendment to the PPIP Act, the government announced and enforced the Private Finance Initiative Regulations and the organization, regulations, and fee structure (three laws for mediation) of the Dispute Mediation Committee for PPIP Projects. The PPIP enforcement rules will be submitted to the Executive Yuan for approval in the near future. A dedicated area to PPIP 2.0 has been set up on site for guests to be informed about the latest measures and updates.
The Ministry of Finance stated that the highest-profile PPIP and private projects at the highest investment amount this time are the Kaohsiung Nanzi Water Reclamation Plant BTO Project (NT$7.3 billion) and the Joint Development Project of Kaohsiung MRT Orange Line O10 Station (NT$18.3 billion). During the event, five agencies, including the Kaohsiung City Government, delivered presentations on key projects. The Convention saw over 300 participants’ contribution. Representatives from various industries took part in the event and had lively interaction and discussion with agencies at their booths.
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