Major domestic investment projects underway, private investment could total up to NTD 1 trillion in '07

January 30, 2007

2007 will be a year of major investment projects in Taiwan as private domestic investment is expected to total up to NTD 1 trillion, said Minister of Economic Affairs Steve Chen at a year-end press conference at the end of Dec. 2006.

Major projects slated for implementation this year include the construction of steel refineries by Formosa Plastics and China Steel, and several projects by the China Petroleum Corp (CPC), which include a petrochemicals plant and renovations to its No. 3 Naphtha Cracker.

Chen said that the full-scale implementation of these major investment projects will provide a boost to Taiwan's economy.

The project timetables were set in consultations with the Ministry of Economic Affairs (MOEA), which were announced at the press conference.

An environmental impact assessment (EIA) will be performed at the No. 3 Naphtha Cracker in Q1 2007, with renovations slated to begin in either Mar. or Apr., and full completion slated for 2012.

Formosa Plastics' will begin construction of a steel refinery as soon as it passes the EIA. The construction time for the refinery is four and a half years, and the MOEA hopes that construction will launch this year to meet its completion deadline in 2012. China Steel has have completed the necessary internal procedures with the Environmental Protection Administration and will begin Phase 2 and 3 construction of its steel refinery this year, with completion slated for 2011. CPC's petrochemical plant has already received the best possible technical assessment from the MOEA and after review by the EPA, construction will begin this year, with completion slated for 2015.

Chen noted that private consumption in 2006 didn't quite match the performances of Taiwan's exports, which boasted record-breaking figures and a favorable trade surplus. With these major investment projects, Taiwan should see more private domestic investment bringing more "warmth" to Taiwan's economy during the coming year, said Chen.

(Economic Daily News)

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