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FAQ

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1

I am interested in PPI projects. Who can I contact?


 Investors who are interested in PPI projects can contact the MOF by email:bot@mail.mof.gov.tw.

2

What are the procedures for foreign nationals or overseas Chinese to invest in PPI projects? Is it necessary to establish a company in Taiwan? Can I submit a bid as a foreign institution and then establish a company in Taiwan after winning the bid?


    There are no specific restrictions on foreign capital investment in the Act for PPIP. The complete working procedures should be referred to and regulated by the Statute for Investment by Foreign Nationals.

 

Whether a PPI project is open to foreign capital investment will depend on the decision of the competent authority according to the Statute for Investment by Foreign Nationals. Applications may be filed by a representative office, a designated representative or a joint venture. Generally speaking, the foreign investor can apply to establish a company in Taiwan after winning the bid. (Foreign companies that intent to invest in PPI projects in Taiwan have to apply for approval from the Investment Commission of the Ministry of Economic Affairs (MOEAIC) and establish a company in Taiwan. And the actual timing of company establishment is subject to the nature of each PPI project.

3

How do private institutions apply to participate in PPI projects? What is the government’s evaluation procedure?


After the government has made its tender announcements, private institutions can submit their applications based on the contents of the tender documents. After evaluation, the best applicant selected can begin construction and operation on the project once contract negotiation and signing is completed. The application procedures can be found on the website. The government’s evaluation will follow the principles of fairness, honesty, openness and transparency. For any dispute concerning the application and evaluation procedures between an applicant and the authority in charge, the applicant can file protests and complaints per the Act for PPIP to ensure that their rights are well protected.

4

Is there any tax incentive, if the private institution invests in PPI projects


If the project is important and with certain scale, and is therefore deemed as a “major infrastructure project” (Article 3 of the Act for PPIP), the project can enjoy the following tax benefits:

(1) Exemption from business income tax for five years;

(2) Investment tax credit of capital expenditures;

(3) Preferential customs duties on imported machinery and equipment;

(4) Reduction or exemption of the building tax, the land value tax and the deeds tax; and

(5) Investment tax credits of subscription of shares issued by the private institution.

 

Please refer to Articles 36 to 40 of the Act for PPIP for detailed information.

5

How do private institutions find PPIP investment information


Investors can find detailed information about invitations to tender of the “Announced Projects” on the PPIP website.

Regarding other “Listed Projects”, of which tender announcements are not yet released, relevant information is also available on the PPIP website. Also, investors can refer to the investor brochure published annually by the MOF, or attend investment seminars held by the MOF. These channels will allow investors to have immediate access to all business opportunities.

Additionally, each project’s authority in charge will also hold investors conferences to communicate with potential investors and explain information and conditions provided in the invitation to tender. Relevant schedule and news releases of these conferences will be published on the MOF’s Latest News.

6

What kind of role does the Ministry of Finance play in PPI projects?


The MOF is in charge of the planning, evaluation, coordination and supervision of all infrastructure projects in Taiwan. These projects may be financed by government budgets and executed per the Government Procurement Act, or financed by private investments and executed according to the Act for PPIP. Either way, the MOF is the responsible entity of both Acts.

In order to reinvigorate the economy, the government considers PPIP as an important priority. Whenever there is an infrastructure project, the feasibility of private participation will be assessed in priority. Should the project be suitable for private participation, the government will carry out the project through private participation instead of government budgets.

As the authority-in-charge of PPIP, the MOF actively promotes private participation, enhances the coordination and assistance in each PPI project, and facilitates regulation relaxation. Its purpose is to expand the scope of PPIP and improve the environment for its implementation.

7

What does PPIP mean? What is the difference between PPIP and BOT?


  PPIP is short for “Private Participation in Infrastructure Projects”. It allows the private sector to build and operate infrastructure, which was implemented by the government in the past. With the capital, creativity and management skills from the private sector, the quality of public services will be improved.

  According to the Act for PPIP, which was promulgated in 2000, there are many different models of private participation. The commonly known BOT (Build-Operate-Transfer) is only one of them. Its essence is that the government allows a private institution to invest in the building and operation of an infrastructure project, and upon expiration of the operation period, the ownership of the infrastructure is transferred to the government. For existing infrastructure, the government may commission the private institution to operate it by way of OT (Operate-Transfer). Furthermore, private institutions may use BTO, BOO and ROT to participate in PPI projects, according to the characteristics of the infrastructure respectively.