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Introduction

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About PPIP

Development of public infrastructure, which serves as a basis for improving lifestyle quality and boosting economic growth, can be disrupted by public resource limitations. Government cooperation with the private sector via public-private partnerships (PPP), which allows for the joint completion of public infrastructure and provision of services, has therefore become a global trend and a key area of discussion among members of the Asia-Pacific Economic Cooperation (APEC). PPP has been included in the goal and strategy of administration by Executive Yuan and Ministry of Finance to provide sustainable and quality public service for the public.

There are numerous laws governing private participation in infrastructure projects, including the Act for Promotion of Private Participation in Infrastructure Projects (PPIP Act), Statute for Encouragement of Private Participation in Transportation Infrastructure Projects, Mass Rapid Transit Act, National Property Act, Local Government Public Property Administration Act, Commercial Port Law, and Electricity Act. The different objectives and operating guidelines of each law together compose a sound legal environment that has contributed to many accomplishments through the common efforts of all agencies, over the past dozen or so years, from 2003 to April 30, 2016, more than 1,000 contracts have been signed totaling over NT$1.15 trillion in value, significantly benefiting people’s life and industrial development.

The government and private sector each has its own strengths. Through public-private partnerships, the two sides can balance risks associated with design, construction, size and legal changes. Additionally, through private capital, operational efficiency, and management skills, implementation of major infrastructure projects can proceed more smoothly. Since PPP projects possess of long-term, stable profits, private enterprises will view asset allocation as a major consideration. Participants can therefore apply for tax and land acquisition incentives offered under the PPIP Act to increase profit margins, expand business scope and improve their image.

Act for Promotion of Private Participation in Infrastructure Projects was promulgated by President of the Republic of China on February 9, 2000, with the Ministry of Finance as the competent authority. Amendments were promulgated on December 30, 2015. Related laws, operating manuals, and references have been established to ensure the fairness, justice, and publicity of standard operating procedures for private participation in infrastructure projects. With the supervision of operating performances, the Ministry of Finance may continue to promote private participation in infrastructure projects based on a same ground. The Ministry will continue to offer platforms for PPP projects investment while assisting with cross-departmental cooperation and legal issues, in order to clear investment roadblocks.