The Executive Yuan estimated that the contracts for private investment in public infrastructure projects signed in the fourth quarter of this year will have a value of more than NT$70 billion (US$2.33 billion), bringing the total for 2012 over NT$100 billion (US$3.33 billion). This enthusiastic private sector participation is expected to spur economic growth.
Executive Yuan Spokesman Hu Yu-wei and Minister without Portfolio and concurrently Minister of the Public Construction Commission (PCC) Chern Jenn-chuan spoke about this phenomenon at a press conference today.
According to PCC statistics, 58 public infrastructure cases worth NT$36.2 billion (US$1.21 billion) had completed the signing process as of September 26, the Executive Yuan pointed out. The cases to be signed in the fourth quarter include four larger investments from the private sector.
The largest is the development of Taipei city-owned lands at Land Lots 28, 29 and 30 (A15, A18 and A20), Subsection No. 4, Xinyi Section, Xinyi District and the registration of relevant superficies rights, which is worth about NT$40 billion (US$1.33 billion).
A BOT project for Taoyuan County's sewage system came in second with a contract of NT$20 billion (US$667 million). Another BOT contract in the same county for expanding the Guanyin Industrial Park's sewage system is worth NT$200 million (US$6.67 million).
Another Taoyuan project worth mentioning is the Bureau of High Speed Rail's plan to develop a designated industrial zone near the station. The contract, originally expected to be signed in 2013, will now be signed by the end of 2012 for NT$100 million (US$3.33 million) by Cathay Life Insurance, who won the proposal review on September 24.
Chiou Dah-jan, commissioner of the Department of Finance of Taipei City Government, also took part in today's press conference to explain the benefits of signing the contract with Nan Shan Life Insurance Company for the development of the city's Xinyi property. According to Chiou, this development project—titled Taipei Green Pavilion—aims to attract global attention with its creative green construction. It will contain tower-style buildings with 28 and 36 floors aboveground and four floors underground. In addition to office sites for international enterprises and company headquarters, shopping complexes will also be established there to help encourage surrounding commercial development.
Taoyuan County Government Deputy Secretary-General Tsai Chung-lie was also present at the press conference to explain the county's cooperation with Radium Life Tech Company to construct the sewer system. In addition to helping expedite the construction of sewers, this BOT project is expected to raise the sewer coverage rate and improve the quality of life of residents in northern Taoyuan County, including Guishan Township, Luzhu Township, Bade City and Taoyuan City.
Minister Chern said that in accordance with the Executive Yuan's Economic Power-Up Plan, the PCC has been going all out to attract private investment in infrastructure projects. It has set up an investment information platform which it encourages potential investors from all sectors to use.