Bidding approaching for NTD 530 billion in rail construction projects

August 19, 2004

Among the most publicly appreciated improvements to the quality of life in Taiwan these days are the completions of major transportation infrastructure projects such as new expressways and mass rapid transit systems. The new Second Freeway, lauded for its scenic beauty, greatly reduces traffic congestion during major holidays by providing a second north-south route for the island. Mass rapid transit systems save the public time and money, and have the added benefit of reducing urban air pollution. However, not only do these projects mean the enhancement of the quality of life, they also boost economic growth and mean big business opportunities for the construction companies and suppliers that win contracts.

Central and local governments are currently making preparations to open bidding on seven mass rapid transit light rail lines and one railway renovation project. Contracts for the railway construction, electrical and mechanical systems and electric train cars required for these eight rail projects are estimated to exceed NTD530 billion. A massive NTD 235 billion in contracts is set to be awarded in 2004 and 2005 alone. As work has wrapped up recently on a number of major highway and expressway construction projects, construction companies are now preparing their cranes and construction crews for rail projects.

The Taipei City Government's Department of Rapid Transit Systems (DORTS) will construct high-capacity light railways for Taipei City's Hsinyi Line, Sungshan Line and Wanda Line, while the MOTC's Bureau of Taiwan High Speed Rail plans medium-capacity light railways for the line that will link CKS International Airport with Taipei City (scheduled to be running by the end of 2008) and the Green Line of Taichung City's MRT. The Taipei County Government has decided to construct medium-capacity light railways for phases one and two of Orbital Line, which will ultimately form a circuit around the Taipei metropolis.

The MOTC and its subordinate Railway Reconstruction Bureau are still deliberating some details of the Taoyuan-Linkuo railway renovation project, in particular whether to construct the tracks on land or build an elevated rail line.

While the BOT (build-operate-transfer) investment model has been adopted for the first and second phases of the Orbital Line, funds for the other six rail projects will be allocated from annual government budgets.

Bidding is scheduled to open for the Hsinyi Line by the end of the year. This will include contracts for the construction of stations and the subway line construction between stations. Bidding will commence for the Sungshan Line, the CKS Line and the Orbital Line starting in 2005. A budget of NTD 48.4 billion has been approved for the Orbital Line. The Taipei County Government is seeking NTD 20 billion for this line from private investors, while the remaining portion will come from government budget allocations.

(United Daily News)

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