At the Executive Yuan's weekly meeting today, Premier Sean Chen asked the Cabinet-level Public Construction Commission (PCC) to come up with private finance initiative (PFI) model projects for other government agencies to follow when introducing private funding to infrastructure projects.
Chen gave the instruction after the PCC presented a report on new measures for expanding private participation in public projects, given constraints in government resources. The PFI was discussed in detail, among other methods.
The PCC's analysis on improving cost and energy efficiencies of public structures over their life cycles will go a long way toward raising the overall quality of Taiwan's infrastructure, Premier Chen said. In particular, he reminded the PCC to exercise extra care when selecting design and engineering teams. Concerning contract disputes, legal affairs units were asked to delve deeper into laws for more effective means of resolution.
Domestic construction firms are faced with keen competition because of the small scale of Taiwan's market. The premier asked the PCC to work with the Ministry of Foreign Affairs, the Ministry of Economic Affairs, the Overseas Compatriots Affairs Commission, as well as the Asian Development Bank—of which the Central Bank of the Republic of China (Taiwan) is a member—to find or create overseas construction opportunities for the firms. A larger market will promote healthier competition and development for the whole industry.
Chen said the human factor is crucial in implementing public construction projects. He hoped that a cleaner, fairer business environment will keep people honest in the contract bidding and award process. Regarding mechanisms for testing and training of technicians, the premier asked other agencies to provide input and share their experiences with the PCC.
Approximately NT$400 billion to NT$500 billion (US$13.3 billion to US$16.7 billion) is spent on public works each year, PCC officials said, hence it is incumbent upon the government to improve the quality of the end results. Moving forward, government agencies will select the most qualified contractors through an evaluation process and shoulder all responsibilities for managing, reviewing and inspecting their work. The PCC will also aim to build sustainable structures that are more eco-friendly and energy efficient.