October 1, 2004
In response to the Executive Yuan's requirement that its ministries sign
NTD 100 billion in BOT (build-operate-transfer) projects every year, each ministry recently presented its list of potential BOT projects for 2005. These government agencies presented a combined 154 projects with a total investment value of
NTD 181 billion, of which
NTD 117.6 billion would come from private investors.
Proposed investment projects are only in the preliminary planning stages and final decisions as to which projects are to be promoted will be made in October. Projects that are viewed as having the greatest potential for attracting investors will be granted priority, but the market will be the final determinant of whether they eventually get off the ground.
Government officials report that, with government budgets tight and personnel limited, the BOT investment approach is the primary method being adopted for major government projects these days. By combining private investment with public funding, BOT projects help the government achieve its infrastructure construction goals and make efficient use of national assets, while also stimulating economic growth.
The Ministry of Transportation and Communications has tabled 29 projects with a total investment value of
NTD 90.1 billion, of which
NTD 52.91 is to come from private investors. While this value ranks the highest among all ministries, the Council of Agriculture (COA) has presented 45 projects, the largest number of potential BOT projects. However, most of the COA's projects are comparatively small, calling for a total investment of just
NTD 6.78 billion, with
NTD 5.38 to be provided by private investment.
The Council for Cultural Affairs has only one project, the International Arts and Popular Music Center. This project is valued at
NTD 10.5 billion, all of which is to come from private funding. Bidding is set to open in April 2005 and the project will be awarded in July.
(Economic Daily News)
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