Premier Sean Chen today put Secretary-General Steven S.K. Chen in charge of coordination efforts to help Kaohsiung push forward its long-awaited rapid transit circle light rail project.
The premier's instruction came after Kaohsiung Mayor Chen Chu visited him shortly before Thursday's Cabinet meeting to seek support for the infrastructure project and budget.
Executive Yuan officials pointed out that KRT's circle light rail plan was approved in 2004 and has been revised three times since then, with the construction fee rising to NT$16.5 billion (US$563 million). The central government originally promised to shoulder NT$4.41 billion (US$150 million) of these expenses, but following the latest revision, the Kaohsiung City has requested the central government to cover NT$6.36 billion (US$217 million).
Since relevant ministries' opinions on the light rail route and expense apportionment are diverse, the Executive Yuan has dealt with the issue cautiously. As such, both the Ministry of Transportation and Communications and the Council for Economic Planning and Development have sent specialists to Kaohsiung for investigation. As soon as they grasp the technical issues such as the building priority queue and planned links with other transport networks, Secretary-General Chen will convene a meeting for discussion and evaluation.
Premier Chen indicated that as the related contract involves three parties—Kaohsiung City Government, Kaohsiung Rapid Transit Corp. and the banks—the banks' opinions on the project's finances should be respected. After the interpellation at the Legislative Yuan finishes, he will invite the bank representatives to speak with him so he can determine whether the KRT's financial problem is liquidity risk or payment capability.
Executive Yuan officials emphasized that the central government has assigned great importance to Kaohsiung's construction: it has appropriated NT$3 billion (US$102 million) for an international exhibition center and NT$10 billion (US$341 million) to build the Wei Wu Ying Center for the Arts, and it has spared no effort to promote a model free trade zone there and the Port of Kaohsiung's construction projects. Premier Chen expressed great optimism about Kaohsiung's potential for development while inspecting the construction of Kaohsiung Exhibition Center, port infrastructure and free trade port. He also pledged to keep a close eye on the progress of the city, which he expects to drive the growth of the country's economy.