Gov't Further Opens Up Public Construction Projects to Chinese Investors

Taipei, Jan. 18, 2012 (CENS)--The Public Construction Commission (PCC) under the Executive Yuan (the Cabinet) decided yesterday (Jan. 17) to allow mainland Chinese investors to invest in 21 additional public construction projects via BOT (build-operate-transfer) method.

The 21 items include 14 projects, such as MRT (mass rapid transit), light-rail system, station, and bus terminal, which will be opened conditionally, and seven projects, such as freeway service stations, which will be opened unconditionally.

Plus 20 projects opened previously, mainland Chinese investors will be able to take part in 41 public construction projects, accounting for 48.8% of the total. At present, mainland Chinese investors can invest in public construction projects via BOT method. For some projects with conditional opening, they can own no more than 50% stake in the projects or are subject to the restriction of investment sites.

Li Hung-yuan, chairman of PCC, pointed out that consideration can still be made for opening more public construction projects to mainland investments, such as cable car, sea-water desalination, and medical institutions.

“The use of other's funds to undertake our own public construction projects is desirable, so long as it doesn't affect national security and the survival of local firms,” Li stressed.