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1.Full text, (57 Articles), enacted and promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-8900032910, dated February 9, 2000.

2.Amended Article 3 promulgated per Presidential Decree No. Hua-Tzung-(I)-Yi-900214000, dated October 31, 2001.

3.Added Articles 6-1, 48-1 and 51-1, deleted Article 27, and amended Articles 3 to 6, 8, 9, 11, 13 to 16, 18, 29 to 31, 35 to 41, 46, 51, and 52 to 54 promulgated per Presidential Decree No. Hua-Tzung-(1)-Yi -10400152841, dated December 30, 2015.

Chapter 1 General Principles
Chapter 2 Land Acquisition and Development
Chapter 3 Financing and Taxes Benefit
Chapter 4 Application and Evaluation
Chapter 5 Supervision and Administration
Chapter 6 Additional Provisions
Appendix

Chapter 1 General Principles top

Article 1


This Act is enacted to upgrade the level of public service, to expedite social economic development and to encourage private participation in infrastructure projects.

Article 2


With regard to the promotion of the private participation in the infrastructure projects, this Act shall prevail. For such matters not specified herein, other relevant laws shall apply.

Article 3


The term "infrastructure project" as referred to herein shall mean a project for constructing any of following facilities for public use and for promotion of public interest:
1. Transportation facilities and common conduits;
2. Environmental pollution prevention facilities;
3. Sewerage, water supply and water conservancy facilities;
4. Sanitation and medical facilities;
5. Social and labor welfare facilities;
6. Cultural and educational facilities;
7. Tourist attractions and lodgings;
8. Power facilities and public gas and fuel supply facilities;
9. Sports facilities;
10. Parks and green spaces;
11. Industrial, commercial and hi-tech facilities;
12. Development of new towns;
13. Agricultural facilities; and
14. Government office buildings.
The term "major infrastructure projects" as referred to herein shall mean infrastructure projects that are important and of a certain scale. The scope of the major infrastructure projects shall be determined by the competent authority in conjunction with the Ministry of the Interior and the central authorities in charge of the relevant industries.

Article 4


The term "private institution " as referred to herein shall mean a company established under the Company Act or any private juristic person approved by the authority in charge and that has entered into a concession agreement for its participation in an infrastructure project with the authority in charge. Where the government or any government-owned enterprise makes any equity investment in, or makes any donation to, a private institution as referred to in the preceding Paragraph, the total equity investment or donation from the government and such government-owned enterprises shall not exceed twenty percent (20%) of the total capital or the total assets of the private institution.
Where a foreign investor holds shares in a private institution as referred to in Paragraph 1, the authority in charge may, as it may deem necessary on a case-by-case basis, request the approval of the Executive Yuan for exempting the foreign investor from foreign ownership restrictions under any other laws, unless such restrictions are necessary for national security and energy self-reliant..

Article 5


The term "competent authority" as referred to herein shall mean the Ministry of Finance.
The term "authority in charge " as used herein shall mean any authority in charge of the matters relating to private participation in infrastructure projects, and shall refer to the central authorities in charge of the relevant industries, the municipal governments at the municipal level, or the county (city) governments at the county (city) level. An authority in charge may authorize any of its subordinate agencies (institutions) to execute matters to be handled by the authority under this Act.


An authority in charge may, with the approval of its superior authority, delegate matters to be handled by it under this Act to any other government agency for execution.

Where an authority in charge delegates matters to another government agency in accordance with the preceding Paragraph, the authority shall publicly announce the matters delegated and the preceding Paragraph, which is the legal basis of the delegation, and publish the same in the government gazette or newspapers or post the same on the Internet.

Article 6


The competent authority shall supervise the following matters, which concern the promotion of private participation in infrastructure projects:
1. Establishment of policies and rules, and promotion of awareness of decrees and policies;
2. Collection and publication of, and compiling statistics for, information and data;
3. Specialist training;
4. Inter-agency affairs of coordination among the relevant authorities in charge, and supervision over and evaluation of the relevant infrastructure projects;
5. Processing of complaints; and
6. Other related matters.
The authority in charge shall have cases concerning promotion of private participation in infrastructure projects handled by specialists who are in charge of promotion of private participation in infrastructure projects.
The regulations governing the qualifications, examination, training, certification, follow-up personnel record keeping, and rewards for specialists responsible for private participation in infrastructure projects under the preceding paragraph shall be prescribed jointly by the competent authority and the relevant authorities.

Article 6-1


An authority in charge shall conduct a feasibility assessment before promoting private participation in infrastructure projects in accordance with this Act.
The feasibility assessment under the preceding paragraph shall cover the types and details of the public interest to be promoted and the targets to be achieved through the infrastructure project. Experts, scholars, local residents, and civil groups at the places (The Township or District) where the infrastructure will be located shall be invited to public hearings. If the authority in charge does not adopt the suggestions given or oppositions raised by the experts, scholars, local residents, or civil groups, it shall state the reasons in its feasibility assessment report.

Article 7


An infrastructure project may be initiated by the private institution.

Article 8


A private institution may participate in an infrastructure project in any of the following way:
1. The private institution invests in the construction and operation of a new infrastructure, and upon expiration of the operation period, transfers the ownership of such infrastructure to the government.

2. The private institution invests in the construction of the infrastructure and upon completion of the construction, relinquishes the ownership to the government without compensation. The government then lets the private institution operate the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.

3. The private institution invests in the construction of the infrastructure. Upon completion of the construction, the government acquires the ownership by paying the construction expenses in a lump sum or in installments. The government then lets the private institution operate the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.

4. The private institution invests in the extension, reconstruction and/or repair of an existing infrastructure, and operates the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.

5. The private institution operates an infrastructure built with investment from the government. Upon expiration of the operation period, the right to operate reverts to the government;

6. To support the national policy, the private institution invests in the construction of an infrastructure on private land provided by the private institution itself, has the ownership thereof upon completion of the construction, and then operates the infrastructure itself or commissions a third party to operate it.

7. Any other way approved by the competent authority.

The operation periods under the subparagraphs of the preceding Paragraph shall be specified by the authority in charge in the approved project or in the concession agreement. Where an infrastructure project is for establishing a public utilities enterprise, the operation period shall not be subject to the restrictions under Article 19 of the Statute Governing Privately Operated Public Utilities Enterprises. Where a lease agreement is entered into for such an infrastructure, the operation period thereof shall not be subject to the restrictions under Article 449 of the Civil Code, Article 25 of the Land Act, Article 28 of the National Property Act, and laws and regulations governing local governments' management of government-owned property.

Article 9


The new construction, extension, reconstruction and repair (hereinafter collectively referred to as "building") or operation as referred to in Paragraph 1 of the preceding Article may be conducted either on a part or the whole of an infrastructure project.

Article 10


To build any of the infrastructure projects in the manner specified in Subparagraph 3 of the first Paragraph of Article 8 hereof, the authority in charge shall, before implementation, submit its construction and financial plans to the Executive Yuan for prior approval or have the plans approved by the relevant local governments in advance, as the case may be, and appropriate the relevant budgets for the credit and for the construction plan concerned through the budgetary process.

If the construction of the project referred to in the preceding Paragraph has been estimated and examined by the authority in charge of such project, the credit and the construction plan so estimated and examined shall be deemed to have been executed.

Article 11


The concession agreement between an authority in charge and a private institution shall specify the following matters, depending on the type of the project concerned:
1. The planning, building, operation and transfer of the infrastructure;
2. The bearing of the rental for the land, the royalties, and the relevant expenses;
3. The fare rate and the adjustment thereof;
4. The renewal of the agreement upon the expiration of the operation period;
5. The risk allocation;
6. The solution in case of poor construction or operation, and the step-in right of the related parties;
7. The auditing, construction control, and management of operation quality;
8. The dispute resolution mechanism, the arbitration clause, and amendment to or termination of the agreement; and
9. Any other agreed matters.

Article 12


Unless otherwise specified in this Act, the rights and obligations between the authority in charge and the private institution shall be governed by the concession agreement and for matters not specified in the concession agreement, the relevant provisions under the Civil Code shall apply.
The parties shall, taking into account protection of the public interest, enter into the concession agreement on a fair and reasonable basis, and shall perform the concession agreement in good faith.

 
Chapter 2 Land Acquisition and Development top

Article 13


The land needed for an infrastructure project as referred to in this Chapter shall mean the land needed for the whole plan for the project approved by the authority in charge, including the land needed for the infrastructure, the ancillary facilities, and the ancillary businesses.
If the land for an infrastructure project as referred to in the preceding Paragraph will be secured through expropriation by zone or section, the authority in charge of the project may, with the prior approval of the Executive Yuan, commission a private institution to draft an urban planning proposal and to handle the matters relating to the expropriation by zone or section.
The ancillary businesses allowed for the infrastructure project under Paragraph 1 shall be prescribed by the authority in charge in conjunction with the Ministry of the Interior and the relevant authorities. Where the operations of an ancillary business under the preceding Paragraph require the approval of any other relevant authority, the private institution shall apply for such approval.
Income derived from the operations of an ancillary business under Paragraph 1 by the private institution shall be counted as the overall revenues of the infrastructure project.

Article 14


Where the land needed for an infrastructure project involves any change in the urban planning, the authority in charge shall cooperate with the relevant authorities in charge of the urban planning to effect prompt changes in accordance with Article 27 of the Urban Planning Act. Where the land needed for the infrastructure project involves any changes in the use of non-urban land, the authority in charge shall cooperate with the relevant authorities in charge of area planning to effect the relevant changes in accordance with the relevant area planning laws and regulations.
Where environmental impact assessment, and soil and water conservation treatment and maintenance for the land needed for a major infrastructure project are required in accordance with the law, the assessment, treatment and maintenance shall be reviewed in parallel, jointly or concurrently by the authorities concerned in accordance with the laws and regulations governing urban planning and regional planning.

Article 15


Where the land needed for an infrastructure project is government-owned land, the authority in charge may, after completing the allocation process, set a fixed term to allow the use of the land by a private institution by means of lease, creation of superficies, trust, or paying royalties or rental for use of the land, without being subject to the restrictions under Article 25 of the Land Act, Article 28 of the National Property Act, or the regulations governing local governments' management of government-owned property. Rental in connection with the lease and the creation of superficies mentioned above may be charged on favorable terms.
Regulations governing favorable rental rates as referred to in the preceding Paragraph shall be prescribed by the Ministry of the Interior in conjunction with the competent authority.
Any odd government-owned land within the scope of the land for an infrastructure project developed by a private institution in accordance with Subparagraph 6, Paragraph 1 of Article 8 may be sold by the authority in charge of selling government-owned land to the private institution, without being subject to Article 25 of the Land Act or regulations governing local governments' management of government-owned property, if the authority in charge of the relevant infrastructure projects determines that such sale is necessary for a policy.

Article 16


Where the land needed for an infrastructure project is privately owned, the authority in charge or the private institution concerned shall negotiate with the land owner to purchase the land at the arm's length price in the market. If an agreement on purchase of the land cannot be reached and the land is needed for a major infrastructure project planned by the government, the authority in charge may expropriate such land in accordance with applicable laws.
If the land subject to expropriation by the authority in charge as referred to in the preceding Paragraph is urgently needed for the use of an enterprise of national defense, transportation, or water conservancy in public safety, the authority in charge may directly expropriate such land in accordance with applicable laws, bypassing the price negotiation process required by the preceding Paragraph.
The authority in charge may state in the expropriation plan that the land so expropriated will be used by private institution for development, building and/or operation purposes by means of joint development, commissioned development, cooperative operation, lease, creation of superficies, paying royalties or rental for use of the land, without being subject to the restrictions under Article 25 of the Land Act, Article 28 of the National Property Act, or the regulations governing local governments' management of government-owned property.
Where the land for an infrastructure project has been acquired through expropriation prior to the promulgation of this Act, the land may be provided to a private institution for development, building or operation in accordance with the preceding Paragraph, without being subject to the restrictions under Article 25 of the Land Act, Article 28 of the National Property Act, or the regulations governing local governments' management of government-owned property.
For the lease of, or the creation of superficies on, expropriated land, favorable rental terms in Paragraphs 1 and 2 of the preceding Article shall apply mutatis mutandis.

Article 17


Where due to the character of a particular infrastructure project, there is a necessity to expedite the acquisition of the land required for any of the major infrastructure projects referred to in the preceding Article, the authority in charge may coordinate with the relevant authorities in charge of the management of the government-owned land or the government-owned enterprises owning such land for the sale or the transfer of such land, so that the development plan may be formulated and the land concerned may be developed and processed. In addition, a certain portion of the land and buildings so developed shall be made available for retrieval by the uncompensated owners of the expropriated land as an offset of the monetary compensation that they are entitled to.
The development or processing of the government-owned land as referred to in the preceding Paragraph shall not be subject to the restrictions under Article 25 of the Land Act, Article 28 of the National Property Act, or the regulations of the local government governing the management of the government-owned property. The retrieval of the land and buildings by the owners of the expropriated land shall not be subject to the restrictions under Article 7 of the National Property Act or Article 23 of the Budget Act.
The amount of the compensation for the land expropriated and the value of the land and buildings to be retrieved by the land owners after development of the land as referred to in the preceding Paragraph shall be determined on the same basis. When applying for the retrieval of the land and buildings as mentioned above, the land owner shall, during the period of the public announcement of the land expropriation, submit the relevant supportive documents together with a written undertaking addressed to the relevant municipal or county (city) governments undertaking not to receive monetary compensation. When the application is submitted to and approved by the authority in charge, the land owner concerned shall be deemed to have been compensated for the land expropriated.
The regulations governing development, disposition and offset basis in connection with the retrieval of the developed land and/or buildings by the owners of the expropriated land as referred to in the first Paragraph, as well as the implementation date thereof, shall be prescribed by the authority in charge of the particular infrastructure project in conjunction with the relevant government authorities and then be approved by the Executive Yuan.

Article 18


Where an infrastructure to be built by a private institution needs to pass through over or under any government- or privately owned land, unless otherwise stipulated by other laws, the private institution hereunder shall negotiate with the relevant authority in charge of the management of the government-owned land or the owner of the private land, as the case may be, for creation of superficies on the needed area. If such an agreement cannot be reached on government-owned land, the private institution may apply to the authority in charge, which will forward the application to the Executive Yuan for a final decision, without being subject to the restrictions under Article 25 of the Land Act. If such an agreement cannot be reached on a part of privately owned land, the government may acquire the superficies on such land mutatis mutandis in accordance with the regulations governing expropriation of land, and then lease such land to the private institution for use for favorable rental to be determined mutatis mutandis in accordance with Paragraphs 1 and 2 of Article 15.
In the event that the land as referred to in the preceding Paragraph becomes unsuitable for proper use because it is traversed by routes of the infrastructure project, the land owners may, from the date of the construction until one year after the commencement of the operations of the infrastructure, apply to the authority in charge for expropriation of the ownership of such land, and the authority in charge shall not reject such application. The compensation for the land so expropriated shall be decided in accordance with Article 16 and shall be given to the relevant owners after deduction of the compensation receivable by the owners for the superficies created. The land costs increased as a result thereof shall be included in the costs of the infrastructure project.
The regulations governing the procedures for use of the space over or under the land, the scope of such use, the demarcation of the boundaries, the creation of superficies, the land expropriation, the compensation for expropriation, registration and review of such use as referred to in the preceding two Paragraphs shall be prescribed by the central authorities in charge of the relevant industries in conjunction with the Ministry of the Interior.

Article 19


With regard to the land required for the infrastructure project and to be expropriated by zone or section, the authority in charge may consult with the authority in charge of expropriation by zone or section to effect the expropriation by zone or section in accordance with applicable laws, and shall announce its decision to implement urban planning and to proceed with the land development within one year after expiration of the notice period of such expropriation, without being subject to the restrictions under Article 52 of the Urban Planning Act.
The land within the scope of the zone or section to be expropriated in accordance with the preceding Paragraph, after being mapped out and put in order, shall be handled in the following manners and in accordance with relevant laws and regulations governing expropriation by zone or Paragraph:
1.The transportation land for routes, yards/stations, highway interchanges, service areas, bridges and tunnels and related ancillary facilities shall be registered as state, municipality or county (city) owned land without any consideration; provided, however, that the title of the land for mass rapid transit systems shall be subject to the provisions under the Mass Rapid Transit Act.
2.The land for the transit area, the harbors and related facilities, and the major tour-site and recreation facilities shall be assigned, at the price of the development costs, to the authority in charge or the authority which requires the land.
3.Other land suitable for construction shall be owned by the authority in charge and the relevant municipal or county (city) government(s) in proportion to the development costs shared by them.
For the land handled by the private institution hereunder in accordance with Article 13 hereof, the title thereto shall be determined in the same manner mentioned above.
The authority in charge may lease, or create superficies on, the land acquired in accordance with the preceding two Paragraphs for use by the private institution hereunder in accordance with Articles 15 and 27 hereof or, it may use, collect benefits therefrom and dispose of such land without being subject to the restrictions under Article 25 of the Land Act, Article 28 of the National Property Act and the regulations of the local government governing the management of the government-owned property. The relevant regulations shall be prescribed by the authority in charge in conjunction with the Ministry of Interior.

Article 20


The use period for the land, of which the ownership or the superficies is expropriated in accordance with Articles 16 and 18 hereof, shall be determined in accordance with the deadline approved for the project concerned. In case the authority in charge fails to use the land in accordance with the deadline approved for the project concerned, the original land owners may, within five (5) years from the day following the expiration of the deadline approved for the project concerned, apply with the relevant municipal or county (city) governments to purchase back the land previously expropriated at the original expropriation price.

Article 21


In respect of the land required for any of the major infrastructure projects and the scope of the expropriation by zone or section under Article 19 hereof, the authority in charge may, as it may deem necessary and upon approval of its superior authority, notify the municipal or county (city) government where the land is located to make, either concurrently or separately, public announcement(s) prohibiting the following:
1. Transfer of, division of, or creation of encumbrance on, the land.
2. Construction, expansion or reconstruction of buildings on, or excavation of soil or gravel from, or changing the contours of, the land.
The prohibition period referred to in the preceding Paragraph shall not exceed two (2) years.

Article 22


To maintain the building and operation safety of the major infrastructure project, the relevant authorities in charge may consult with the local municipal or county (city) government(s) to survey and demarcate the restricted areas adjacent to the infrastructure project concerned, and to make a public announcement prohibiting and restricting the construction or erection of the government and/or privately owned buildings and advertising structures within such restricted areas, without being subject to the regulations of the use/zoning control for the urban planning land or the use/zoning control for the non-urban land. With regard to the buildings, the advertising structures and other obstacles which are under construction or already in existence within such restricted areas and which may impede the building or the operation safety of the infrastructure project concerned, the authority in charge may consult with the relevant local authorities in charge of construction to set a time limit for modification or removal thereof by the owner in due course. Failure on the part of the owner to comply within the given time limit will cause a compulsory removal thereof; provided, however, that the owner shall be entitled to reasonable compensation. If the owner objects to the amount of the compensation, the case shall be referred to the superior competent authority for a final decision. The compensation thereof shall be included into the costs of the infrastructure project concerned.
The regulations governing the construction prohibition and restrictions as referred to in the preceding Paragraph shall be prescribed by the competent authority in conjunction with the Ministry of Interior.

Article 23


Where a private institution hereunder needs to make a site survey, exploration, or to perform engineering work or maintenance work on the government and/or privately owned land or buildings, it may, after obtaining approval of the authority in charge and giving a thirty (30) days prior notice to the owner, the possessor, the user or the administrator of such government and/or privately owned land or buildings, have access to or use such land or buildings. The owner, the possessor, the user or the administrator of such land or buildings shall not refuse to provide such access or use. Notwithstanding the above, in case of emergency where a delay is likely to jeopardize major public interest, the private institution may enter or use such land or buildings without following the procedures mentioned above.
When the private institution hereunder enters or uses the privately owned land or buildings in accordance with the preceding Paragraph, it shall invite the local police to attend the scene.
If any damages or losses are caused as a result of the entry or use of the land or buildings under the first Paragraph, reasonable compensation for such damages or losses incurred shall be given. If there is any dispute on the amount of such compensation and such a dispute cannot be settled though amicable negotiations of the parties, the case shall be referred to the authority in charge for a final decision. The compensation thereof shall be included into the costs of the infrastructure project concerned.

Article 24


In making use of the government and/or privately owned land or buildings pursuant to the preceding Article, if it is necessary to destroy or dismantle the buildings or other works on the land in full or in part, the private institution concerned shall report the case to the authority in charge for consent first, and then the authority in charge shall consult with the relevant local authorities in charge of construction to notify the owner, the possessor or the user thereof to effect such destruction or dismantling within the given period. Failure on the part of the owner to comply within the given period or in case of emergency where a delay is likely to jeopardize major public interest, the authority in charge may forthwith, either by itself or entrust the local relevant authorities in charge of construction to, enforce the compulsory destruction or dismantlement.
Reasonable compensation shall be made for the destruction and dismantlement made under the preceding Paragraph and for the losses and damages caused from the destruction or dismantlement thereof. If there is any dispute on the amount of such compensation and such a dispute cannot be settled though amicable negotiations of the parties, the case shall be referred to the authority in charge for decision. The compensation thereof shall be included into the costs of the infrastructure project.

Article 25


A private institution may, if necessary for the performance of the construction work, request the authority in charge to coordinate with the relevant administering authorities for the use by the private institution of a river, ditch, culvert, dike, road, park and other land for public use.

Article 26


Where a private institution plans to build an infrastructure project above or underneath a city road, highway, railroad, or other transportation systems or public facilities, it shall obtain a prior approval from the relevant authorities in charge of such facilities. If co-installation or co-construction is required, the authority in charge shall first coordinate with, and obtain prior consents from, the relevant authorities in charge of such facilities. Then, the proposed co-installation or co-construction work can be proceeded with.
If the private institution has acted in accordance with the preceding Paragraph but cannot obtain the consents from the relevant authorities, the authority in charge shall request the competent authority to conduct necessary coordination. Upon the failure of such coordination, the authority in charge may report, with reasons, the case to the Executive Yuan for a final decision.

Article 28


In case of any private donation to the government of any land required for an infrastructure project and relevant facilities, the authority in charge may grant award to the donor.

 
Chapter 3 Financing and Taxes Benefit top

Article 29


If the Selection Committee determines that a private institution cannot fully self-finance its investment in an infrastructure project even if other incentives under this Act are applicable, the authority in charge may, for the insufficiently self-financed portion, subsidize part of the interest on the loan needed by the private institution or grant a subsidy, depending on the operating performance, and stipulate such subsidy in the concession agreement.
If an infrastructure project an authority in charge conducts in accordance with the preceding Paragraph will require funds from the central government budget, the authority in charge shall, prior to working on the project, submit the construction plan and the proposals for the relevant subsidies to the Executive Yuan for approval. Where funds from the central government budget are not required, the authority in charge may approve the infrastructure project at its sole discretion.
The subsidies under Paragraph 1 shall be handled in accordance with the relevant budgeting procedures.

Article 30


The authority in charge may, depending on the financing needed for infrastructure projects, negotiate with financial institutions or special funds for provision of medium- or long-term loans to the relevant private institutions, provided that where the loan guarantees or other measures provided by the authority in charge carry contingent liabilities, such guarantees and measures are subject to the review and approval of the relevant civil representative bodies.

Article 31


Where a financial institution extends credit to a private institution for use in a major transportation infrastructure project to support a government policy, and obtains the approval of the Financial Supervisory Commission ("FSC") for such credit, the line of such credit shall not be subject to the restrictions under Articles 33-3, 38, and 72-2 of the Banking Law.

Article 32


Where any foreign corporate financial institution participates in the syndication of loans to a private institution hereunder, such foreign financial institution shall have the same ability as a domestic company to enjoy the rights and to assume the obligations arising from the financing, without being subject to the restrictions under Article 12 of the Enforcement Act of the Part of General Principles of the Civil Code and Article 375 of the Company Law.

Article 33


A private institution participating in the infrastructure project hereunder may offer new shares to the public, without being subject to the restrictions under Subparagraph 1 of Article 270 of the Company Law; provided, however, that if the private institution has incurred losses in two consecutive years or more, a settlement plan thereof shall be submitted and the relevant information shall be fully disclosed.

Article 34


A private institution which has become a public offering company according to law may issue non-discretionary corporate bonds to raise the funds required for the infrastructure project concerned, without being subject to the restrictions under Article 247, Subparagraph 2 of Article 249 and Subparagraph 2 of Article 250 of the Company Law; provided, however, that the total issued amount shall be subject to the consent of the authority in charge of the securities after consultation with the central authorities in charge of the relevant industries.

Article 35


If, during the building or operation of an infrastructure project, the private institution concerned sustains material damage as a result of a natural disaster, the authority in charge shall join the FSC and the relevant competent authorities in negotiating with financial institutions or special funds for extending serious natural disaster recovery loans to the private institution.

Article 36


A private institution participating in a major infrastructure project may be exempted from business income tax for a maximum period of five (5) years from the year in which taxable income is derived after the infrastructure begins operations.
For a major infrastructure project, the private institution as referred to in the preceding Paragraph may, within four (4) years from the year in which taxable income is derived after the infrastructure project begins operations, elect at its sole discretion to defer the commencement date of the tax exemption period, provided that the maximum period of such deferral is three (3) years, and the commencement date of such deferred tax-exemption period is the first day of a fiscal year.
The scope and the period of the tax exemption as referred to in Paragraph 1, and the authority granting the approval, the deadline and the procedure for application, the implementation period, supplemental tax payment, and other relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

Article 37


A private institution participating in a major infrastructure project may credit five percent (5%) to twenty percent (20%) of the following expenditures on the project against the business income tax payable by it for the then current year. If the amount of the business income tax payable for the then current year is less than the amount of the creditable expenditures, the balance thereof may be credited against the profit-seeking enterprise income tax payable in the four (4) years following the then current year:
1. Capital expenditures invested in building or operating equipment or technology;
2. Capital expenditures invested in procurement of pollution-control equipment or technology; and
3. Capital expenditures invested in research and development, and personnel training.
The total investment expenditures creditable against the profit-seeking enterprise income tax payable in each year under the preceding Paragraph shall not exceed fifty percent (50%) of such income tax payable by the private institution for the then current year, except in the last year of the four-year period.
The applicable scope of each Subparagraph in Paragraph 1, the authority granting the approval, the deadline and the procedure for application, the implementation period, supplemental tax payment, and other relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

Article 38


Customs duties on the construction machinery and equipment, special transporting vehicles, training facilities, and the required parts/components thereof imported by a private institution or its direct contractor(s) for use in building a major infrastructure may be exempted if the purpose for use of such items is confirmed by the authority in charge, and the Ministry of Economic Affairs confirms that such items have not yet been manufactured or supplied domestically.
Customs duties on the machinery and equipment, training facilities, and the required parts/components thereof imported by a private institution for use in the operation of a major infrastructure project may be paid in installments one year after the date of the major infrastructure project concerned enters operation, if the purpose for use of such items is confirmed by the authority in charge, and the private institution furnishes a guarantee acceptable to the authority.
If the authority in charge proves that the machinery and equipment imported by a private institution in accordance with Paragraph 1 have been manufactured or supplied domestically, customs duties on such imports may be paid in installments one year after the infrastructure is constructed, with a guarantee acceptable to the authority from the private institution.
If, before the customs duties are fully paid, the ownership of any machinery or equipment on which the customs duties is paid in installments in accordance with Paragraphs 2 and 3 is assigned or used for any purpose other than those originally approved, the outstanding customs duties shall be paid in a lump sum within a given time limit in accordance with the Customs Act, provided that if such assignment is specially approved by the competent authority, the assignee thereof may continue to pay the outstanding customs duties in installments.
The regulations governing exemption from, installment payments of, and supplemental payment of, customs duties under Paragraphs 1 to 3 shall be prescribed by the competent authority.

Article 39


The land value tax and the housing tax leviable on the real estate for direct use by a private institution during the building or operations of a major infrastructure project in which the private institution participates, and the deed tax leviable at the time of acquisition of such real estate may be reduced or completely exempted at the discretion of the authorities.
The tax exemption or reduction period, the scope thereof, the criteria and procedures therefor, and the supplemental tax payment as referred to in the preceding Paragraph shall be prescribed by the relevant municipal/county/city governments, submitted to the relevant municipal/county/city councils for approval, and filed with the competent authority for recordation.

Article 40


Where a profit-seeking enterprise subscribes for or underwrites registered shares issued by a private institution participating in a major infrastructure project upon its incorporation or expansion, and has held such registered shares for a period of four (4) years or more, such profit-seeking enterprise may credit up to twenty percent (20%) of the subscription price against the profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable is less than the amount creditable, the balance thereof may be credited against the profit-seeking enterprise income tax payable in the four (4) years following the current year.
The total amount of investment credit against the payable profit-seeking enterprise income tax in each year as referred to in the preceding Paragraph shall not exceed fifty percent (50%) of the profit-seeking enterprise income tax payable by the profit-seeking enterprise concerned for the current year, provided that this restriction does not apply to the amount creditable in the last year of such a four-year period.
The authority approving investment credit, the application time limit and procedures, the implementation period, the rates of tax credit, and the regulations for supplemental payment and the relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

Article 41


Provisions in this Chapter shall not apply to any of the ancillary businesses operated by a private institution hereunder in accordance with Article 13 of this Act.

 
Chapter 4 Application and Evaluation top

Article 42


In respect of an infrastructure project planned by the government which is evaluated by the authority in charge as suitable for private participation, the authority in charge shall announce by a public notice the programmed contents of the building and/or the operation thereof, as well as the qualifications of the participants for the infrastructure project concerned, so to invite private participation.
The applicants of the infrastructure project as referred to in the preceding Paragraph shall acquire from the authority in charge the relevant information of the programmed project before the expiration of the deadline set forth in the public notice.

Article 43


To participate in an infrastructure project specified in the preceding Article, the applicants shall, before the expiration of the deadline set forth in the public notice, prepare the qualification documents, the relevant land utilization plan, the construction plan, the operation plan, the financial plan, the letter of intent for financing issued by the financial institution and other information as may be required in the public notice concerned, and then submit the same to the authority in charge to apply for participation in the infrastructure project concerned.

Article 44


To evaluate the applications submitted in response to the public notice inviting private participation, the authority in charge shall organize a Selection Committee which shall establish the evaluation criteria based on the purpose of the infrastructure project concerned, examine and evaluate the materials submitted by the applicants on a fair basis and then select the best applicant therefrom within the evaluation period.
The evaluation criteria referred to in the preceding Paragraph shall be announced simultaneously upon the announcement of the public notice inviting private participation. The evaluation period shall be determined on a case-by-case basis and a notice thereof shall be given to the applicants.
The regulations governing the organization of the Selection Committee and the evaluation thereof as referred to in the first Paragraph shall be prescribed by the competent authority. One half or more of the members of the Selection Committee shall be specialists and scholars and the evaluation process shall be made public.

Article 45


The applicant which is selected as the best applicant shall, from the date of receipt of the notice from the authority in charge, proceed with all preparatory work and complete the execution of the concession agreement with the authority in charge in accordance with the schedule required by the Selection Committee. Afterwards, the best applicant may proceed with the construction and/or the operation of the relevant infrastructure project in accordance with applicable laws.
If the applicant which is selected as the best applicant fails to complete the required preparatory work or to execute the concession agreement with the authority in charge in accordance with the schedule referred to in the preceding Paragraph, the authority in charge may notify the best applicant to correct such failure within a given period. If the best applicant fails to make correction within the given period, the authority in charge may, at its sole discretion, either replace the best applicant by the second best applicant for execution of the concession agreement or, announce again by a public notice to re-invite private participation in accordance with Article 42 hereof.

Article 46


A private institution applying for participating in an infrastructure project it itself is planning shall submit a land utilization plan, a building plan, an operational plan, a financial plan, a letter of intent to finance issued by a financial institution, and other documents required by applicable laws to the authority in charge for approval.
The land and facilities needed for the application under Paragraph 1 may be provided by the applicant itself or be provided by the authority in charge.
If the authority in charge receiving an application finds that the application does not meet the policy requirements, it shall reject the application. If the authority in charge finds the application meet the policy requirements, the application shall be reviewed according to the following procedure:
1. Where the private institution applicant provides private land needed by the project, the application shall be reviewed by the authority in charge.
2. Where the authority in charge provides land and facilities needed by the project, the private institution applicant shall submit a project outline. After the project outline passes the preliminary review of the authority in charge, the applicant shall submit the documents set forth in Paragraph 1 according to the result of the preliminary review to the authority in charge for evaluation according to the procedure set forth in Paragraph 1, Article 44.
The best applicant as selected according to the review procedure under the preceding paragraph shall proceed with all the preparatory work according to a given schedule, acquire the ownership of, or the right to use, the needed land, and sign a concession agreement with the authority in charge before proceeding to construct and operate the infrastructure in accordance with the law.
Where none of the applicants under Subparagraph 2, Article 3 pass the review, are able to complete the preparatory work within the given time limit, or are able to sign a concession agreement with the authority in charge, the authority may, out of consideration for public interest, publish an announcement in accordance with the applicable laws to invite private participation in accordance with Article 42, or let the government construct and/or operate the infrastructure on its own.
The regulations governing the application documentation, the application and review procedures, the review guidelines, the time limit for review, and the related matters under Paragraphs 1 to 4 shall be prescribed by the competent authority.

Article 47


For any dispute in connection with or arising out of the application and the evaluation procedures between an applicant for participating in an infrastructure project and the authority in charge, the protest and the complaint thereof shall be handled, mutatis mutandis, in accordance with the provisions under the Government Procurement Act with regard to the dispute resolutions for the invitation to tender, the evaluation of tender and the award of contract.
The regulations governing dispute resolutions as referred to in the preceding Paragraph shall be prescribed by the competent authority.

Article 48


With regard to the infrastructure projects which are built or operated by the private institutions as approved under this Act, the provisions under the Government Procurement Act shall not apply.

Article 48-1


The concession agreement shall set forth the formation of a mediation committee for contract dispute resolution and may stipulate that disputes shall be submitted to arbitration if the mediation fails.

 
Chapter 5 Supervision and Administration top

Article 49


Where an infrastructure project participated in by the private institution is a public utilities enterprise, the private institution may, based on the following factors, set the fare rate and the schedule and method for fare adjustment in the financial plan submitted in its application:
1. Cost expenditures for planning, construction, operation and other financial matters;
2. Income derived from the operation and the ancillary enterprises;
3. Operation period;
4. Payment of royalty; and
5. Price index.
The fare rate and the schedule and method for fare adjustment as referred to in the preceding Paragraph shall, before the execution of the concession agreement by the authority in charge and the private institution, be approved by the relevant authority in charge of the public utilities concerned in accordance with applicable laws. Afterwards, the authority in charge shall have such approved fare rate and the schedule and method for fare adjustment included in the concession agreement and then announce the same in a public notice.
If after the operation of the infrastructure project hereunder, it is necessary to make any adjustment to the fare rate and/or the schedule and method for fare adjustment as approved under the preceding Paragraph, such an adjustment shall first be approved by the competent authority in charge of the public utilities in accordance with applicable laws. Afterwards, the authority in charge shall have the concession agreement modified accordingly and then announce the same in a public notice.

Article 50


For the infrastructure projects operated under this Act, the government shall not request the relevant private institutions to provide any favorable treatment for reduction of fare price unless otherwise permitted by applicable laws. Where any favorable treatment is provided due to the regulatory requirements under applicable laws, the authorities in charge of the relevant laws shall, unless otherwise specified in the concession agreement, appropriate respective budgets to subsidize the relevant private institutions.

Article 51


A private institution shall not transfer, lease out, or create any encumbrance on, the concession obtained under the concession agreement, nor shall it make such concession an object for enforcement in a civil action, unless the authority in charge declares that such an act is necessary for the improvement plan specified in Article 52 or the proper measures specified in Article 53.
Without the consent of the authority in charge, a private institution shall not transfer, lease out, or create any encumbrance on, any operating asset and/or equipment obtained from the building and/or the operation of an infrastructure.
Any transfer, lease, or creation of any encumbrance in violation of any of the preceding two Paragraphs shall be null and void.
Without the consent of the authority in charge, a private institution shall not proceed with any merger or spin-off.

Article 51-1


While an infrastructure is in operation, the authority in charge shall evaluate the operating performance of the private institution concerned at least once every year.
If the authority in charge rates the operating performance of a private institution as "good," the authority in charge may give the institution the priority to extend the concession agreement before the expiration of the operation period. Such priority shall be given only once, and the extension period shall not exceed the term of the original concession agreement.
The criteria for operating proficiency evaluation, the evaluation standards and procedures, and the method of giving good ratings shall be set forth in the concession agreement. The result of operating performance evaluation shall be included in the records of private institutions' operating performance and quality auditing.

Article 52


If, during the building or operations of an infrastructure by a private institution, there is any serious schedule delay, material defects in the construction quality, poor operation, or other major events, the authority in charge shall take the following actions in accordance with the concession agreement, with a written notice to the private institution:
1. To order the private institution to make improvements within a given period.
2. To suspend part or all of the construction or operations if no improvement is achieved within the given period or if the improvement is ineffective, or allow a financial institution, a guarantor, or any other institution designated by the financial institution or the guarantor to temporarily take over the infrastructure project and continue the building and/or the operations thereof for a certain period.
3. To terminate the concession agreement if after a certain period following the suspension of the construction or operations or the temporary takeover by a financial institution, a guarantor, or any other institution designated by the financial institution or the guarantor under the preceding Subparagraphs, no improvement is achieved.
When taking actions in accordance with the preceding Paragraph, the authority in charge shall notify the financial institution, the guarantor, and the relevant government agencies of such actions.
After the concession agreement is terminated upon occurrence of any event specified in Subparagraph 3 of Paragraph 1 and the accounts are settled, the financial institution or the guarantor may, with the approval of the authority in charge, sign or designate another institution meeting legal requirements to sign a concession agreement with the authority in charge to continue the building or operations of the infrastructure.

Article 53


If, during the building or operations of an infrastructure, there are serious schedule delays, material defects in the building quality, poor operations, or other major events, and due to the pressing nature thereof, any failure to take immediate action may jeopardize major public interests or result in imminent danger, the central authority in charge of the relevant industries may order the private institution concerned to cease part or all of the construction or the operations of the infrastructure, with a notice to each of the government agencies concerned.
In the event of suspension of part or all of the operations of an infrastructure under Paragraph 1 of the preceding Article, or the cessation of part or all of the operations under the preceding Paragraph, or the termination of the concession agreement, the authority in charge may take steps at its discretion to maintain the operations of the infrastructure. If necessary, the authority in charge may compulsorily take over the operations of the infrastructure. The regulations governing the takeover methods, the scope, enforcement and termination of the takeover, and related matters shall be prescribed by the central authority in charge of the relevant industries.

Article 54


Where a private institution is required to transfer an infrastructure to the government upon expiration of the operation period, it shall have any and all existing operating assets or the operation concession transferred or reverted to the authority in charge with or without consideration in accordance with the concession agreement.

 
Chapter 6 Additional Provisions top

Article 55


This Act shall not affect any of the rights and obligations under the concession agreement for a particular infrastructure project executed prior to the promulgation of this Act by and between the government and the private institution. For any matters not specified in the relevant concession agreements, the provisions of this Act may apply if such provisions are more favorable to the private institution concerned.
With regard to any of the infrastructure projects which was publicly invited by the government for private participation prior to the enforcement of this Act but the concession agreement thereof is executed after the enforcement of this Act, if it has been stated in the public announcement that the then current laws and regulations for encouragement of private investments shall apply to such project and if such applicable laws and regulations have been specifically referred to in the concession agreement, the infrastructure project concerned as well as the rights and obligations under such concession agreement shall be governed by such laws and regulations; provided, however, that the provisions of this Act may apply if such provisions are more favorable to the private institution concerned.

Article 56


The Enforcement Rules of this Act shall be prescribed by the competent authority and promulgated after the approval of the Executive Yuan.

Article 57


This Act shall be enforced from the date of promulgation.

 
Appendix top

English and Chinese Cross Reference Table of Terminologies Used
In the Act for Promotion of Private Participation in Infrastructure Projects

第一章 Chapter 1


公共建設      §3 the infrastructure project(s)
重大公共建設      §3 the major infrastructure project(s)
內政部      §3 the Ministry of Interior
財政部      §3 the Ministry of Finance
中央目的事業主管機關     §3 the central authorities in charge of the relevant industries
民間機構      §4 the private institution
公營事業      §4 the government-owned enterprise(s)
行政院      §4 the Executive Yuan
主管機關      §5 the competent authority
主辦機關      §5 the authority in charge
營運期間      §8 the operation period
公用事業      §8 the public utilities enterprises
公民營公用事業監督條例     §8 the Statute Governing Privately Operated Public Utilities Enterprises
民法       §8 the Civil Code
土地法     §8 the Land Act
國有財產法      §8 the National Property Act
投資契約      §11 the concession agreement
權利金      §11 the royalty
關係人介入      §11 the step-in right of the related parties

第二章 Chapter 2


公共建設所需用地     §13 the land required for the infrastructure project
附屬設施       §13 the ancillary facilities
區段徵收       §13 the expropriation by zone or section
都市計畫主管機關      §14 the relevant authorities in charge of the urban planning
都市計畫法       §14 the Urban Planning Act
區域計畫主管機關     §14 the relevant authorities in charge of area planning
區域計畫法       §14 the Area Planning Act
設定地上權       §15 creation of superficies
地方政府公產管理法令   §15 the regulations of the relevant local governments governing the management of the government-owned property
公共建設目的事業主管機關     §15 the authorities in charge of the relevant infrastructure projects
出售公地機關       §15 the relevant selling authorities of the government-owned land
聯合開發       §16 joint development
委託開發       §16 entrusted development
合作經營       §16 cooperative operation
公有土地管理機關   §17 the relevant authorities in charge of the management of the government-owned land
預算法        §17 the Budget Act
區段徵收主管機關       §19 the authorities in charge of expropriation by zone or section
大眾捷運法        §19 the Mass Rapid Transit Act
都市計畫土地使用分區管制       §22 the use/zoning control for the urban planning land
非都市土地使用分區管制        §22 the use/zoning control for the non-urban land
當地主管建築機關        §22 the relevant local authorities in charge of construction
共構         §26 the co-construction
共架         §26 the co-installation
附屬事業        §27 the ancillary enterprises

第三章 Chapter 3


甄審委員會        §29 the Section Committee
自償能力        §29 self-financing ability
金融機構        §30 the financial institution(s)
特種基金        §30 the special funds
重大交通建設        §31 the major transportation infrastructure project
銀行法        §31 the Banking Law
民法總則施行法        §32 the Enforcement Act of the Part of the General Principles of the Civil Code
公司法         §32 the Company Law
指定用途之公司債         §34 the non-discretionary corporate bonds
證券主管機關         §34 the authority in charge of the securities
營利事業所得稅         §36 the business income tax
關稅          §38 the customs duties
地價稅         §39 the land value tax
房屋稅         §39 the building tax
契稅          §39 the deeds tax

第四章 Chapter 4


政府採購法         §47 the Government Procurement Act
異議         §47 the protest
申訴         §47 the complaint
招標          §47 the invitation to tender
審標          §47 the evaluation of tender
決標          §47 the award of contract

第五章 Chapter 5


營運費率         §49 the fare rate
公用事業主管機關        §49 the authorities in charge of the relevant public utilities
營運資產         §51 the operation assets
中止興建、營運之一部或全部 §52         to suspend part or all of the construction or the operation
停止興建、營運之一部或全部 §52        to cease part or all of the construction or the operation
強制接管營運         §53 compulsorily take over
營運權         §54 the operation concession
有償或無償         §54 with or without compensation
施行細則         §56 the Enforcement Rules

Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects
Promulgated by the Public Construction Commission, Executive Yuan, No. (89)-Kung-Cheng-Chi-Tzi-89030388, Dated October 25, 2000
Amended by the Public Construction Commission, Executive Yuan, No. (91)-Kung-Cheng-Chi-Tzi-91021814, Dated May 29, 2002 for Articles 2, 6-1, 11, 17 and 19-1
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Chi-Tzi-09200320590, Dated August 13, 2003 for Articles 2, 4, 5, 7, 8, 10, 14, 19-1 and 39.
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Chi-Tzi-09400056490, Dated February 23, 2005 for Articles 11, 14, 18, 19-1, 22, 23, 40, 42 and 44.
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Chi-Tzi-09500049710, Dated February 15, 2006 for Article 7.
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Chi-Tzi-09700012610, Dated January 21, 2008 for Articles 2, 3, 8, 11, 16, 17, 18, 19-1, 20-1, 20-2, 21, 22, 22-1, 22-2,22-3, 22-4, 23, 28-1, 31, 37-1, 40, 40-1, 41-1, 41-2, 43-1, 46-1,56-1.
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Cu-Tzi-09800162570, Dated April 24, 2009 for Articles 2, 7, 16
Amended by the Public Construction Commission, Executive Yuan, No. Kung-Cheng-Cu-Tzi-09900225170, Dated June 17, 2010 for Articles 2, 17
Amended by the Ministry of Finance No.Tai-Tsai-Cu-Tzi-10300532330, Dated March 13, 2014 for Articles 7, 8, 10, 11, 16, 17, 19-1
Article 1 ~ 10
Article 11 ~ 20
Article 21 ~ 30
Article 31 ~ 40
Article 41 ~ 50
Article 51 ~ 63

Article 1 ~ Article 10 top

Article 1


These Enforcement Rules are enacted in accordance with Article 56 of the Act for Promotion of Private Participation in Infrastructure Projects ("the Act").

Article 2


The transportation facilities, as specified in Subparagraph 1, Paragraph 1, Article 3 of the Act, shall mean railways, highways, (metropolitan) expressways, public rapid transit systems, light-rail transportation systems, intelligent transportation systems, cable car systems, transfer hubs, stations, dispatch stations (classification yards), airports and affiliated facilities, harbors and affiliated facilities, parking lots, bridges and tunnels.

The intelligent transportation systems ("the ITS") specified in the preceding paragraph shall mean systems designated by the competent central authorities of the relevant industries that combine the technologies of information, telecommunications, electronics, control, and management and utilize these technologies in software and hardware in their transportation facilities, with the purpose of automating the operation and management of the entire transportation service or raising the quality of the transportation service.

The cable car systems specified in Paragraph 1 shall mean transportation facilities designated by the competent central authorities of the relevant industries that utilize cable to suspend and propel closed cars back and forth within confined routes, transporting passengers in specific regions and their parameters. The definition shall exclude recreational gondolas.
The airports and affiliated facilities specified in Paragraph 1 shall mean any of the following facilities in the airport area and the air transportation complex for passenger/cargo approved by the Executive Yuan or designated by the competent central authorities of the relevant industries:
  1. Facilities and equipment for the embarkation/debarkation of passengers and cargo;
  2. Facilities in the area where aircraft take off and land;
  3. Maintenance garages/docks;
  4. Fuel supply and storage facilities;
  5. Waste water treatment facilities;
  6. Incinerators;
  7. Facilities for value-added activities of air transportation, including the necessary facilities for manufacturing, warehousing, processing, and transportation;
  8. The operation facilities of the air transportation business, confined to those that are invested, constructed and managed to conduct the functions of aviation operation or transportation transit and that seek permission for one hectare or more for development;
  9. Facilities for aviation training;
  10. Hotels for transit passengers;
  11. Exhibition centers;
  12. International convention centers; and
  13. Parking lots.
The harbors and affiliated facilities specified in Paragraph 1 shall mean any of the following facilities within a commercial harbor:
  1. Facilities that come with an investment (excluding purchase cost of land) of NT$1 billion or more and that are designated for vessel entry, exit, or anchorage; for cargo loading/unloading, storage, or lighterage; for passenger services whether under or above the water surface, or on land; for yacht docking; and for other related operations.
  2. Development project of a new commercial harbor (including breakwater, fill, dock and related facilities) with an investment (excluding purchase cost of land) of NT$2.5 billion or more; and
  3. Facilities for value-added activities in a specialty zone, including necessary facilities such as production complexes, warehouses, processing and transportation, with an investment (excluding purchase cost of land) of NT$1 billion or more.
The parking lots specified in Paragraph 1 and Subparagraph 13 of Paragraph 4 shall mean any of the following off-street public parking lots:
  1. The land area applied for one storey parking lots shall be at least 4500 square meters or total floor area applied for more storeys parking lots shall be at least 2000 square meters ;
  2. The total investment for parking facilities with lifts or towers shall be NT$15 million or more after deducting the purchase cost of land.

Article 3


The common ducts specified in Subparagraph 1, Paragraph 1, Article 3 of the Act shall mean the structures designated by the Common Duct Act.

Article 4


The environmental pollution prevention facilities specified in Subparagraph 2, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:
  1. Facilities, specified in the relevant environmental protection laws and regulations, for the control of air pollution, noise and vibration, water pollution, and soil contamination control; and for the storage, removal, treatment or final disposal of waste; and
  2. Sites and affiliated facilities, designated by the competent central authorities of the relevant industries, for storage, disposal and dispatch of the earthwork left over from construction.

Article 5


The sewerage specified in Subparagraph 3, Paragraph 1, Article 3 of the Act shall mean the sewers and affiliated facilities reserved for the treatment of household and industrial wastewater.

Article 6


The water supply facilities specified in Subparagraph 3, Paragraph 1, Article 3 of the Act shall mean the water supply equipment specified in the Water Supply Act.

Article 6-1


The water conservancy facilities specified in Subparagraph 3, Paragraph 1, Article 3 of the Act shall mean the hydraulic structures as specified in the Water Act and the facilities for water recycling, seawater desalination and groundwater replenishment as designated by the competent central authorities of the relevant industries.

Article 7


The sanitation and medical facilities specified in Subparagraph 4, Paragraph 1, Article 3 of the Act shall mean medical institutions, psychiatric rehabilitation institutions, psychiatric care institutions, occupational therapy institutions, medical radiology institutions, medical testing laboratories, nursing institutions, vaccine production facilities, or other manufacturing institution of radiopharmaceuticals (nuclear medical drugs), medical institutions and affiliated facilities designated by the competent central authorities of the relevant industries.

Article 8


The social welfare facilities specified in Subparagraph 5, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:
  1. Funerary facilities established and approved in accordance with relevant laws.
  2. Social housing established and approved in accordance with relevant laws.
  3. Other social welfare facilities designated by the competent central authorities of the relevant industries.

Article 9


The labor welfare facilities specified in Subparagraph 5, Paragraph 1, Article 3 shall mean the institutions and affiliated facilities for entertainment, training and education of the labor force designated by the competent central authorities of the relevant industries.

Article 10


Cultural and education facilities specified in Subparagraph 6, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:
  • Public cultural institutions and affiliated facilities;
  • Public schools, public kindergartens and affiliated facilities;
  • Social education institutions and affiliated facilities, with gymnasiums excluded;
  • Historical sites, registered historic buildings and affiliated facilities designated in accordance with the relevant laws; and
  • Other cultural and/or education institutions and affiliated facilities designated by the competent authorities of the relevant industries.
Article 11 ~ Article 20 top

Article 11


The major facilities for tour-site specified in Subparagraph 7, Paragraph, 1, Article 3 of the Act shall mean the facilities within a national park, scenic area, designated scenic area, tourism location, forest recreation area, hot spring area, or other recreation/amusement area delimited in accordance with relevant laws by the competent authorities of the relevant industries for recreation/amusement, accommodation, food and beverages, guidance and related services, and for internal and access transportation, yacht anchorage and related services.

Article 12


The power facilities specified in Subparagraph 8, Paragraph 1, Article 3 of the Act shall mean the facilities of power generation, transmission, distribution and transformation, established to conduct the business of power generation, transmission or distribution designed by the competent central authorities of the relevant industries.

Article 13


The public gas and fuel supply facilities specified in Subparagraph 8, Paragraph 1, Article 3 of the Act shall mean any of the following facilities designated by the competent central authorities of the relevant industries for public gaseous fuel supply enterprises to pipeline, store and regulate gaseous fuel:

  1. Tanks, pipes, sites and affiliated facilities for gaseous fuel storage;
  2. Pipelines, pressure regulating stations and related distribution facilities laid from the source;
  3. Facilities for blending air or other flammable gas to adjust the calorific value of gaseous fuel;
  4. Facilities for gasifying and liquefying gaseous fuel; and
  5. Facilities for loading and unloading liquefied gaseous fuel.

Article 14


The sports facilities specified in Subparagraph 9, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:

  1. Indoor/outdoor sports facilities for sports designated by the International Olympic Committee and the Olympic Council of Asia as Olympic sports, with golf-related facilities excluded;
  2. Sports and recreation parks designated by the competent authorities of the relevant industries as combining recreational facilities along with two or more sports facilities specified in the preceding Subparagraph; and
  3. Other indoor/outdoor sports facilities designated by the competent central authorities of the relevant industries.

Article 15


The park facilities specified in Subparagraph 10, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:

  1. Parklands and affiliated facilities in areas reserved for public facilities designated by urban planning authorities at various government levels in accordance with the Urban Planning Act;
  2. Parklands and affiliated facilities in the areas designated by the authorities of non-urban land at various government levels in accordance with the Regional Plan Act; and
  3. Greens, greenbelts, ecological greens community parks and affiliated facilities, subject to compulsory donation to the public after conversion of the land use registration as obligated by the relevant laws and regulations.

Article 16


The major industrial facilities specified in Subparagraph 11, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:

  1. Industrial zones designated by the industrial authorities;
  2. Industrial zones designated or mapped out according to the Act for Industrial Innovation, the Regional Plan Act, or the Urban Planning Act for development projects of private enterprises, landowners or industry developers. The industrial zones shall satisfy all the following conditions: five hectares or more in area, NT$2 billion or more in investment (excluding purchase cost of land), a development and operation plan in compliance with the industry development policy, the operation initiated within a specific period, and the land and factory offered to the industry developers; or
  3. Deep ocean industry parks designated or mapped out according to the Regional Plan Act or the Urban Planning Act for development projects of industrial authorities, private enterprises, landowners or industry developers; or
  4. Facilities related to the national defense technology industry designated by the Ministry of National Defense.

Article 17


The major commercial facilities specified in Subparagraph 11, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:

  1. Central Markets designated by the municipal government or county (or city) government for retailers of fruit and vegetables, meat, fish and consumer goods;
  2. Large logistics centers designated by the competent central authority of the relevant industries and in compliance with the following conditions:
    1. The land area applied for development shall be one hectare or more;
    2. The total investment shall be NT$300 million or more after deducting the purchase cost of land;however, if relevant facilities of the land can be approved by authority in charge as necessary, the total investment amount can be discounted based on such value of facilities upon approval by the competent central authorities of the relevant industries;and
    3. The center shall reserve turnaround space for trucks and employ warehouse or logistic management systems and equipment, including pallets, shelving, forklifts, etc.
  3. International exhibition centers designated by the competent central authorities of the relevant industries which comply with the following criteria:
    1. Incorporating one or more buildings and optional affiliated facilities for relevant business services to accommodate companies to set up temporary booths to demonstrate products or services and to accept orders placed by attendees, or to provide services of convention and training; and
    2. Two hectares or more in base area, with 500 or more standard exhibition booths installed.
  4. International convention centers and optional affiliated facilities for relevant business services designated by the competent central authorities of the relevant industries to provide convention and training services.
  5. Large shopping centers in offshore islands, designated by the central authorities in charge of relevant industries, that combine shopping, recreational, cultural, entertainment, refection, exhibition, and information facilities in accordance with all the following conditions:
    1. The land area shall be at least two hectares or the floor area shall be at least sixty-six thousand square meters ;
    2. With one or more anchor stores, of which the floor area of business shall be at least fifteen thousand square meters ;
    3. With one hundred or more medium or small retailers.
    An offshore island specified in Subparagraph 5 of the preceding paragraph means an island that is detached from the main island of Taiwan and is under the governing jurisdiction of the Republic of China.

Article 18



The major hi-tech facilities specified in Subparagraph 11, Paragraph 1, Article 3 of the Act shall mean the following facilities:

  1. Industrial/Science parks established in accordance with laws and regulations related to management of science-based industrial parks; and
  2. Incubation centers and affiliated facilities.

The incubation centers and affiliated facilities specified in Subparagraph 2 of the preceding paragraph shall mean the relevant installations designated by the competent central authorities of the relevant industries to provide space, equipment, technology, funding and consulting/support services on business operations and management, with the purpose of fostering new enterprises, products and technologies and facilitating the upgrading and transformation of enterprises.

Article 19


The new town development specified in Subparagraph 12, Paragraph 1, Article 3 of the Act shall mean the development project engaged in specific areas mapped out in accordance with the New Town Development Act.

Article 19-1


The agriculture facilities specified in Subparagraph 13, Paragraph 1, Article 3 of the Act shall mean any of the following facilities:

  1. Poultry and livestock slaughterhouses and affiliated facilities established in compliance with the Establishment Standards for Slaughterhouse according to the Animal Industry Act;
  2. Agricultural products wholesale markets and affiliated facilities established in accordance with the Agricultural Products Market Transaction Act;
  3. Agriculture technology parks or government-subsidized local agriculture technology parks and affiliated facilities established in accordance with the Statute for the Establishment and Administration of Agriculture Technology Parks;
  4. Epidemic prevention and quarantine facilities for animals and plants and their respective products established in accordance with the international or source country's standards or rules for epidemic prevention and quarantine and the operation principles for epidemic prevention and quarantine;
  5. The facilities for services, recreation and internal/access transportation in agriculture recreation areas designated in compliance with the Agricultural Development Act, or recreational farms with operating permits;
  6. Multifunction agriculture promotion, production and logistic facilities designated by the competent central authorities of the relevant industries as having the functions of agriculture promotion, training, demonstration and process, etc;
  7. Any of the following facilities in fishing port areas:
    1. Facilities for value-added activities of fishing, including the necessary facilities for live fish distribution, refrigerated storage and processing;
    2. Facilities for accommodation, food and beverage, exhibition and ocean-related recreation and education; and
    3. Yacht piers in areas reserved for yacht recreation and related necessary facilities; and
  8. Animal shelters and affiliated facilities established in accordance with Article 14 of the Animal Protection Act.

Article 20


When ambiguity arises as to the definition of the infrastructure project specified in Paragraph 1, Article 3 of the Act, the definition shall be determined by the competent authority in conjunction with the competent central authorities of the relevant industries.

Article 20-1


When authorizing a subordinate entity (or institution) in accordance with Paragraph 2, Article 5 of the Act or commissioning another government entity in compliance with Paragraph 3 of the same Article, the authority in charge shall consider the nature of the case and the competence of the authorized entity (or institution) or the commissioned entity. The authority in charge may consult the competent authority if necessary.
The authority in charge shall conduct regular or random inspections and reviews of the implementation status specified in the preceding paragraph.

Article 20-2


The superior agency specified in Paragraph 3, Article 5 of the Act shall mean the Executive Yuan when a competent central authority of the relevant industry is the authority in charge, and shall mean the competent central authority of the relevant industry when a municipal or county or city government is the authority in charge.
Article 21 ~ Article 30 top

Article 21


When private institutions participate in infrastructure construction under the conditions stipulated in Subparagraph 3, Paragraph 1, Article 8 of the Act, the authority in charge shall specify the calculation formula of the construction expenses, the supervision of the construction quality, the procedures of acceptance inspection and the title transfer in its tender documents for the public and request the applicants to submit reimbursement plans for construction expenses.
The reimbursement plans for the construction expenses specified in the preceding paragraph shall include the total construction expenses, interest accrued, interest rate, reimbursement period and terms of installments.

Article 22


The concession agreement signed by the authority in charge and the private institution, in accordance with Article 11 of the Act, shall not violate the content of the original public announcement and tender documents unless any one of the following circumstances occurs:
1.The original public announcement and tender documents state that their content is subject to amendment in negotiation;
2.The circumstances change after the public notice is announced and before the concession agreement is signed; or
3.The content of the original public announcement and tender documents does not comply with the public interest or fair and reasonable principles.
The concession agreement should state when and how to form a mediation committee and its operation procedures, in order to coordinate and manage the execution of the contract and other disputes.

Article 22-1


To facilitate audit performed by the authority in charge in accordance with Subparagraph 7, Article 11 of the Act, the concession agreement should include the items, procedures and standards of prioritized audit.

Article 22-2


The items of construction control and management specified in Subparagraph 7, Article 11 of the Act shall mean the items related to the progress, environmental protection, safety and sanitation of the construction and quality control of the construction project carried out by the private institution.

To facilitate the construction control and management performed by the authority in charge in accordance with the preceding paragraph, the concession agreement should include a control and management mechanism for the construction progress and quality.

Article 22-3


“Any other matters agreed” specified in Subparagraph 9, Article 11 of the Act may include any of the following items:
1. A statement and commitment from both parties;
2. The portion and procedure for acquirement and transfer of land and facility;
3. Financial conditions;
4. The quality control of business operation;
5. Performance bond; and
6. Change of the contract.

Article 22-4


The concession agreement may state that when the continuation of the contract by the private institution will contradict the public interest due to change of government policy, the authority in charge may terminate or cancel a part or all of the contract and compensate the private institution for the losses arising therefrom.

Article 23


The authority in charge shall, depending on the character of the infrastructure project and the means of the private investment, state in the concession agreement that the private institution shall submit or deliver in a given timeframe the construction quality management plan, construction progress reports, account books, statements and records, vouchers, financial reports, work data and relevant documents to the authority in charge for audit and inspection.

Article 24


The tasks of expropriation by zone or section specified in Paragraph 2, Article 13 of the Act that may be commissioned to private institutions shall be as follows:
1.Surveys of current circumstances and cadastral measurements;
2.Planning, design, construction and management of zone/section expropriation engineering;
3.Appraisal of the land with improvements and after the zone/section expropriation;
4.Distribution plans and designs of the land for compensation, released to compensate for the land expropriated; and
5.Compilation of relevant lists.
When the authority in charge commissions the private institution to conduct the tasks specified in the preceding paragraph, the commission contract should state the provisions governing the calculation formula, quality supervision and acceptance inspection of the zone/section expropriation engineering.

Article 25


When requesting the competent authority of zone/section expropriation to carry out the expropriation operation in accordance with Article 19 of the Act, the authority in charge shall prepare a development plan in advance and ask for the approval of the Executive Yuan.
The development plan specified in the preceding paragraph shall include the following items:
1. The character of the infrastructure project and the relationship to the relevant superior plan;
2. The goal of the development;
3. The scope of the intended development area;
4. Major public facilities;
5. Current status of the development areas and neighboring areas;
6. The conception of the whole development;
7. The means of development by one's own or by commissioning others;
8. The intended proportion of the land for compensation;
9. The plan for building demolition and inhabitant relocation;
10. Development schedule;
11. Land use plan;
12. Financial analysis and plan;
13. Coordination measures;
14. Allocation of responsibilities;
15. Prospective effects; and
16. Other items that should be specified.
If the cost of other public facilities as specified in Article 26 is to be included in the financial analysis and plan specified in Subparagraph 12 of the preceding paragraph, the cost may be added to the ceiling amount of the total expenses for expropriating the items specified in Paragraph 2, Article 19 of the Act. The condition should be stated in the development plan and the tender announcement for the participation of the private sector.
After the development plan is approved by the Executive Yuan, the authority in charge shall prepare the relevant blueprints of the cadastral map, the scope map, the current development situation of the areas neighboring the site, the urban planning map or zoning map for the use of non-urban land and the land designation map; evaluate and define the scope of the land to be expropriated by zone or section on site in conjunction with the authorities in charge of zone/section expropriation, urban planning, land administration, environmental protection and transportation; and then request the competent authority of zone/section expropriation to begin the expropriation process in accordance with the applicable laws.
If the development plan needs to be adjusted to comply with the urban planning or the decision of the Land Expropriation Review Board, the authority in charge shall amend the development plan and submit the revised plan to the Executive Yuan for approval.

Article 26


The development costs specified in Paragraph 2, Article 19 of the Act shall mean the total expenses for items including the cash compensation or agreed purchase price of expropriation for privately owned land, the price of government-owned land allocated with compensation, fees for public facilities, fees for land preparation and interest accrued from the loan, etc.
The fees for public facilities, specified in the preceding paragraph, shall include the design fee, the construction fee, the materials fee, overheads and land preparation fee of roads, bridges, drainage, underground conduits, community parks, plazas, green land and parking lots. The other public facilities reported by the authority in charge and approved by the competent central authorities of the relevant industries shall also be included.
The fees for land preparation specified in the first paragraph shall include compensation for dismantling and removing the value-added land improvements or graves, the costs for removing power and mechanical facilities or for relocating residents, compensation for business operation losses, grants for the voluntary dismantling and removing, additive compensation, the relevant fees of the cadastre, social benefits and the necessary fees for land preparation.

Article 27


If the authority in charge commissions the private institution to conduct operations relating to the zone/section expropriation according to Paragraph 2, Article 13 of the Act, the commission contract may state that the funds be borne by the authority in charge for the development costs of the expropriation, which funds shall then be raised by the private institution.

The contract clause specified in the preceding paragraph shall state the total amount of the funds, interest accrued, interest rate, reimbursement period and terms of installments, and may also state that if the authority in charge does not complete the disposition of the land suitable for construction acquired according to Subparagraph 3, Paragraph 2, Article 19 of the Act and thus the proceeds are not sufficient to repay the portion of the total development costs that should be borne by the authority in charge for the zone/section expropriation but have been paid by the private institution, the private institution shall, depending on the appraisal price for tender of each lot of land, take over the land suitable for construction but yet to be disposed of, provided, however, that the value of the land taken over by the private institution shall not exceed the deficit that the authority in charge shall pay the private institution.

Article 28


If the prohibited matters specified in Paragraph 1, Article 21 of the Act are to be executed by the central authority, the authority in charge shall, after defining the scope of the land in conjunction with the Ministry of the Interior and the local government and obtaining the approval of the Executive Yuan, notify the municipal governments or the county or city government at the place where the land is located to make public announcement of the related items.

Article 28-1


Regarding the public announcement specified in Paragraph 1, Article 21 of the Act, the authority in charge should coordinate with the municipal governments or the county or city governments at the place where the land is located to make the public announcement before the concession agreement is signed.

Article 29


When the private institution enters or uses the government-owned and/or privately owned land or buildings before development begins in accordance with the proviso of Paragraph 1, Article 23 of the Act, the private institution shall apply for approval from the authority in charge in advance and give notice to the owner, the possessor, the user, or the administrator of the government-owned and/or privately owned land, provided, however, that if prior notice is not possible, the private institution may give notice afterwards.

Article 30


The private institution shall bear the expenses incurred from co-installation or co-construction if the infrastructure stated by Paragraph 1, Article 26 of the Act as required to be co-installed or co-constructed with a city road, highway, railroad, or other transportation system or public facility. If a city road, highway, railroad, or other transportation system or public facility belongs to a new construction or reconstruction project, the expenses incurred from the co-installation or co-construction may, through negotiation, be borne in proportion to the expenses as if each infrastructure is built separately.
Article 31 ~ Article 40 top

Article 31


The ancillary enterprises specified in Paragraph 3, Article 27 of the Act shall mean the enterprises established by the private institution for development and operation outside the area designated for the project of infrastructure and affiliated facilities.
The income and expenses of the infrastructure project and the ancillary enterprises specified in the preceding paragraph operated by the private institution shall be accounted separately.

Article 32


The self-financing ability specified in Paragraph 1, Article 29 of the Act shall mean the ratio of the total present value of each year's annual net cash inflow during the estimated operation period to the total present value of each year's annual cash outflow for all the construction expenses during the construction period of the infrastructure project.
The estimated operation period specified in the preceding paragraph shall mean the period estimated in the financial plan of the infrastructure project as the timeframe that the operation and the ancillary enterprises can generate income.
The net cash inflow specified in the first paragraph shall mean the surplus amount that the total amount of the infrastructure operation income, the ancillary enterprises income, the income from the disposition of the assets and facilities, deducting the costs and expenses of the infrastructure operation excluding depreciation and interests, the costs and expenses of the ancillary enterprises excluding depreciation and interests, and the expenses of purchasing and upgrading assets and facilities.

Article 33


The authority in charge complying with Paragraph 1, Article 29 of the Act to invest a segment of the construction, which is outside the self-financing portion, shall adopt any of the following means:
1.The authority in charge constructs the segment and then commissions the private institution to operate or use; and
2.The private institution completes the segment along with other segments; then the authority in charge, after conformity inspection, acquires ownership by repaying the investment amount of the segment and commissions the private institution to operate or use.
The amount of the investment paid by the authority in charge according to Subparagraph 2 of the preceding paragraph shall not exceed the amount of the construction investment of the private institution. The authority in charge shall specify in the concession agreement the price of each construction item, the amount of government investment and the supervision and inspection of construction quality.

Article 34


When the authority in charge subsidizes part of the interest to the private institution or invests in part of the construction according to Paragraph 1, Article 29 of the Act, the authority in charge shall state in the preliminary plan the initial evaluation on its self-financing ability and the means and limit of the interest subsidies or construction investment. All items mentioned shall also be stated in the public announcement.

The applicant shall submit the calculation and analysis data on self-financing ability of the subject project in the financial plan and state the request for the authority in charge on the needed means and limit of interest subsidies or construction investment in accordance with the content of the public announcement specified in the preceding paragraph. All items mentioned are subject to review by the Selection Committee.

Article 35


The loan needed by the private institution, which the authority in charge subsidizes part of the interest accrued from such loan in accordance with Article 29 of the Act, shall be used only as medium/long-term funds needed for the construction and operation of the infrastructure, but the loan needed for land purchasing shall be excluded.

After paying the financial institution the interest on the loan, the private institution shall submit certificates of payment of the interest and statements for explaining the use of the loan to apply for interest subsidies from the authority in charge.

Article 36


If the authority in charge terminates the concession agreement, suspends all of the construction or operation, or compulsorily takes over the operation before the expiration of the operation period in accordance with Articles 52 or 53 of the Act, the private institution's right to interest subsidies as stipulated in the Act shall be terminated upon the day of notification.

Article 37


In the case where the private institution does not use the loan wherein the interest is subsidized by the authority in charge in compliance with Article 35, the authority in charge shall cease to subsidize the part of loan interest in violation of such Article and shall demand that the private institution repay the subsidized interest paid by the authority in charge calculated from the date of non-compliance with the use of the loan, and pay the penalty.

The repayment method for the subsidized interest paid and the amount of penalty shall be specified in the concession agreement.

Article 37-1


The foreign financial institution specified in Article 32 of the Act shall mean the institution authorized by the competent authority of another country to conduct finance or loan businesses.

The documents issued by a foreign country and submitted by the institution specified in the preceding paragraph shall be authenticated by any of Taiwan's embassies, representative offices, liaison offices, or other agency authorized by the Ministry of Foreign Affairs.

Article 38


The direct contractor specified in Paragraph 1, Article 38 of the Act shall mean the one who directly contracts the major infrastructure project invested in by the private institution in compliance with the Act and executes the written contract with the private institution.

Article 39


The authority in charge shall conduct a feasibility study and preliminary planning before executing the private participation in an infrastructure project planned by the government, provided, however, that this restriction shall not apply to a project not involving government budgetary subsidy or investment.

When conducting the feasibility study specified in the preceding paragraph, the authority in charge shall, based on the character of the infrastructure project and the means of private participation, adapt a perspective of private participation and carefully evaluate the feasibility of private participation regarding the purpose, market, technology, financing, laws, land acquisition and environmental impact of the infrastructure project.

With respect to the preliminary plan specified in Paragraph 1, the authority in charge shall draft the preliminary plan and, based on the character of the infrastructure project and the means of private participation, analyze financial status and the construction and operation plans of the private participation. If necessary, the authority in charge shall carefully study and draft the commitment of the government to the project, matters in which the government will cooperate, the scope of ancillary enterprises allowed for private participation and the items, progress of completion and schedule in which the government shall cooperate.

When conducting the private participation in an infrastructure project, the authority in charge may retain specialized consultants in financing, construction, operation and law to assist in relevant matters.

Article 40


When inviting the private participation by a public notice pursuant to Paragraph 1, Article 42 of the Act, the authority in charge may, depending on the character of the infrastructure project, prepare the information of private investment for the private investors or conduct an illustration meeting and prepare the contents of public notice and tender documents after consulting the private investors.

Except being conducted pursuant to Articles 25 and 34, the contents of the public notice specified in the preceding paragraph shall, based on the character of each infrastructure project, list the following matters:

1. The character, basic requirements, concession period and scope of the infrastructure project;
2. The qualification requirements for the applicant;
3. The items and standards of application review;
4. The items awaiting negotiation;
5. The date of announcement, the deadline for application, the application procedure and earnest money;
6. The scope for the ancillary enterprises allowed for private investment and the concession period for the land needed; and
7. The matters authorized or commissioned by the authority in charge in accordance with Article 5 of the Act.
Other than the contents stated in the public notice and the matters executed in accordance with Article 21, the tender documents specified in Paragraph 1 shall state the following items:
1. The main content and format of the investment proposal;
2. The measure and schedule of application review;
3. The commitment and cooperation matters of the government;
4. The items and procedures of negotiation only when negotiations are allowed;
5. The deadline for contract negotiation and execution; and
6. The draft of concession agreement.

If any major obligation or right listed in the public notice as specified in Paragraph 1 may be changed, it shall be stated in the public notice, along with the change procedure.

Article 40-1


If the authority in charge amends or appends items to the tender documents after the public notice is announced, the authority in charge should also amend or append such items to the notice and extend the deadline of application.
Article 41 ~ Article 50 top

Article 41


The authority in charge shall publish the summary of public notice on the Internet and in the government Procurement Gazette when announcing a public notice pursuant to Article 42 of the Act.

When conducting the public notice specified in the preceding paragraph, the authority in charge shall set a reasonable time period between the public notice and a reasonable deadline for the applicants to submit the application, based on the content and character of the infrastructure project and the time the applicants need to prepare the application documents.

Article 41-1


The authority in charge shall conduct contract negotiations in accordance with the following principles:

  1. The negotiation shall be pursuant to the public notice, tender documents, investment proposal and results of the comprehensive review; and
  2. The content of the contract negotiation shall not violate the public notice, tender documents and the results of negotiation, unless the content is in compliance with the conditions listed in Subparagraph 2 or 3 of Paragraph 1, Article 22.

Article 41-2


The authority in charge should set reasonable deadlines for contract negotiation and execution, depending on the character of the infrastructure project.

Unless under special circumstances, the deadlines for contract negotiation and execution specified in the preceding paragraph shall be no later than the timeframe set in the following clauses:

  1. 1. For contract negotiation: The period between the day the best applicant is selected and the day the negotiation is completed shall be no longer than twice the period of tender submission, with a ceiling of six months; and
  2. 2. For contract execution: The period between the day the negotiation is completed and the day the contract is executed shall be limited to one month, with possible extension of another one month. However, the period before execution, specified in Articles 45 and 46 of the Act as preparation time, shall be excluded.

The authority in charge is forbidden to delegate its affiliated entities or commission other entities (institutions) to conduct the determination of the special circumstances specified in the preceding paragraph.

Article 42


The applicant shall submit the financial institution's evaluation opinion to the investment proposal when submitting the letter of intent for financing issued by the financial institution pursuant to Articles 43 and 46 of the Act. The principal condition to continue the financing may be stated in the evaluation opinion.

Article 43


Where financing is needed for the private institution to participate in an infrastructure project specified in the Act, the authority in charge may, depending on necessity and after the resolution by the Selection Committee, require the best applicant to sign a financing agreement with the principal financial institution within the preparation period or require the private institution to submit the financing agreement within a certain time period after signing the concession agreement.

If the best applicant fails to submit the financing agreement within the preparation period, the authority in charge shall handle the matter pursuant to Paragraph 2, Article 45 of the Act.

If the private institution fails to submit the financing agreement within a certain time period after signing the concession agreement, the authority in charge shall handle the matter pursuant to the concession agreement.

Article 43-1


The authority in charge shall review the application documents of the applicants in accordance with the conditions stipulated in the public notice and tender documents.

After selecting the best or the second-best applicant, the authority in charge shall not negotiate and/or execute the contract if any of the following behavior is found regarding the applicant:

  1. Not following the requirements of the public notice and tender documents in filing the application;
  2. Being involved in fraud, coercion, bribery, or submitting incorrect materials or incomplete statements on essential review items, thus affecting the due process of review;
  3. Failing to submit corrections or to complete the contract negotiation process within the timeframe stated in the notice; and
  4. Failing to finish preparation or contract execution before the given deadline.

Article 44


If the private institution applies to participate in an infrastructure project under its own planning pursuant to Paragraph 1, Article 46 of the Act, the authority in charge should publish the summary of the application on the website of the competent authority and the authority in charge.

If the private institution applies to participate in an infrastructure project under its own planning as specified in the preceding paragraph and files documents not in conformity with the statutory procedures, the authority in charge may inform the private institution to make corrections within a time limit designated at the authority's discretion. Failing to make such correction within the time limit or being unable to make the correction shall render the application unacceptable.

Article 45


The certain period of time as specified in Paragraph 2, Article 46 of the Act is limited to six months. However, it may be extended for another six months if necessary. The extension is limited to one time only.

Article 46


The authority in charge shall revoke the approval of the application if the private institution applying to participate in the infrastructure project under its own planning does not, pursuant to Paragraph 3, Article 46 of the Act, acquire the ownership or use right to the land within the certain period of time set in the land use plan approved by the authority in charge.

The private institution may apply to the authority in charge for an extension of the time period specified in the preceding paragraph before expiration. The extension is limited to one year.

Article 46-1


The authority in charge, depending on the demand of policy, shall publish the development items, government assistance and operation procedures of the infrastructure project available to private participation to invite private institutions to submit applications by their own planning as stipulated in Article 46 of the Act.

Article 47


The operation assets and equipment obtained from the construction and operation by the private institution as specified in Paragraph 2, Article 51 of the Act shall mean the assets and equipment obtained from the construction and operation of the infrastructure project essential for continuing operation of the infrastructure project during the term of construction and operation.

The authority in charge may consent to the transfer, lease or creation of any encumbrance on the operation assets and equipment specified in the preceding paragraph if the following provisions are met without affecting the normal operation of the infrastructure project:

1.The operation assets and equipment are not required to be transferred to the government according to the concession agreement; or
2. Where the operation assets and equipment are required to be transferred to the government after the operation period expires according to the concession agreement, the operation assets and equipment may be transferred before the date set for transfer, with the condition of not affecting the transfer upon expiration; the term of lease or any encumbrance is limited to the timeframe of the permitted operation period; there must be a plan or a fund to repay the debt when an encumbrance is created.

Article 48


Serious delay in work schedule as specified in Paragraph 1, Article 52 of the Act shall mean failure to complete the construction within the time limit stipulated in the concession agreement; or during construction, it is obvious that the construction cannot be completed within the time limit stipulated in the concession agreement based on objective facts. Major defects in quality of the construction work shall mean the construction work violates the law and regulations or the construction standards set in the concession agreement; or the independent verification institution agreed upon by both the authority in charge and the private institution determines that the construction work seriously impairs the quality of public construction. Poor operation shall mean the private institution violates the law and regulations or the concession agreement in aspects of public safety, service quality or relevant administration during the operation period.

Article 49


When the authority in charge orders the private institution to make improvement within a given period in accordance with Subparagraph 1, Paragraph 1, Article 52 of the Act, the authority in charge shall notify the private institution of the following matters in writing:
  1. The facts of specific defects;
  2. The time limit for improving the defects;
  3. The standard to be met after improvement; and
  4. The consequences of failing to complete the improvement within the time limit.

The authority in charge shall set the time limit for improvement based on the seriousness of the defect's impact on public safety and the improvement ability of the private institution.

Article 50


The financial institution and guarantor specified in Article 52 of the Act shall be limited to those whose relevant records have been submitted to the authority in charge for records by the private institution.
Article 51 ~ Article 63 top

Article 51


If the private institution fails to improve defects within the time limit as specified in Subparagraph 2, Paragraph 1 of Article 49, the authority in charge shall notify the financial institution or guarantor of the following matters in writing:
  1. The specific fact that the private institution has made no improvement within the time limit or that the improvement is ineffective;
  2. The time limit for the financial institution or guarantor to apply for the approval of the authority in charge to temporarily take over the private institution or to continue its operation;
  3. The time limit for improvement during temporary take over or operation continuance;
  4. The items for continual improvement and the standards to be met; and
  5. The consequences of failing to complete the improvement within the time limit.

Article 52


After the financial institution, guarantor or other institution designated by them takes over in accordance with Article 52 of the Act and the authority in charge determines that the defect has been improved, the authority in charge shall notify the financial institution, guarantor or other designated institution to terminate the take over in writing and specify the date of termination, unless the financial institution, guarantor or other designated institution has held other arrangements consented to by the authority in charge.

The notice specified in the preceding paragraph shall be delivered to the private institution and relevant government agencies.

The financial institution, guarantor or other institution designated by them may file an application to the authority in charge to terminate the take over when a defect has been improved before the time limit.

Article 53


When the authority in charge requires the private institution to make improvements within a given period in accordance with Subparagraph 1, Paragraph 1, Article 52 of the Act, the authority in charge shall suspend the interest subsidies from the date the improvement request is notified until the date the improvement is completed. However, after the private institution completes the improvement, or the financial institution, guarantor or institution designated by them completes the improvement after taking over in accordance with relevant regulations, the authority in charge may repay the suspended interest subsidies.

The authority in charge shall notify the financial institution, the guarantor and the relevant government agencies when suspending the interest subsidies in accordance with the preceding paragraph.

Article 54


When the authority in charge suspends a part or all of the construction or the operation of the private institution in accordance with Subparagraph 2, Paragraph 1, Article 52 of the Act, the authority in charge shall notify the private institution of the following matters in writing:
  1. The specific fact that the private institution has made no improvement within the time limit or that the improvement is ineffective;
  2. The suspension date of the construction or operation;
  3. The scope of the suspended construction or operation;
  4. The items still requiring improvement, the standard and time limit after the suspension of the construction or operation; and
  5. The consequences of failing to complete the improvement within the time limit.

The authority in charge may, depending on the defects in the construction and the relevancy to other construction and within the limitation of the least influence on the total construction, quality and the progress, determine the scope of the construction to be suspended as specified in Subparagraph 3 of the preceding paragraph. The authority in charge may determine the scope of the operation to be suspended based on the objective facts and within the necessary scope to improve the defects.

Article 55


When the authority in charge suspends a part or all of the construction or operation in accordance with Subparagraph 2, Paragraph 1, Article 52 of the Act, the authority in charge shall order the private institution to continue the construction or operation within the time limit in writing when the authority in charge determines that the defect has been improved.

The private institution may apply for the continuance of the construction or operation when the defect has been improved before the time limit.

Article 56


Where the authority in charge terminates the concession agreement in accordance with Subparagraph 3, Paragraph 1, Article 52 of the Act, the authority in charge shall notify the private institution of the following matters in writing:
  1. The specific fact that no improvement has been achieved;
  2. The declaration of the intention to terminate the concession agreement and the date of termination;
  3. The declaration of the intention to terminate the superficies and lease contract; and
  4. The relevant matters regarding the proper actions or compulsory take over of the operation of the project, of which the authority in charge proposes to take in accordance with Paragraph 2, Article 53 of the Act.

Article 56-1


If the authority in charge creates superficies to the private institution on the land needed for the infrastructure, the contract shall include the provision that the building ownership shall transfer to the government after the superficies expire. Meanwhile, on registering the superficies, the registration authority shall remark upon such provision in the miscellaneous column of the section of the registration of other rights in the Land Registration Archive.

After the infrastructure, specified in the preceding paragraph, is completed, the private institution shall also file such provision when conducting the initial registration for the ownership of the building and inform the registration authority of making the same remark in the miscellaneous column of the section of the registration of other rights in the Building Registration Archive.

Article 57


When the events specified in Paragraph 1, Article 53 of the Act occur, the authority in charge shall notify the competent central authority of the relevant industries to take necessary action, or the competent central authority of the relevant industries may take necessary action at their own discretion.

Where the competent central authority of the relevant industries terminates a part or all of the construction or operation in accordance with Article 53 of the Act, the authority shall notify the private institution of the following matters in writing immediately:
1. The specific facts of the defect;
2. The termination date of the construction or operation; and
3. The scope of the construction or operation to be terminated.

The authority in charge shall notify the private institution in writing when taking proper actions or taking compulsory take over of the operation in accordance with Paragraph 2, Article 53 of the Act.

After the events specified in Paragraph 1, Article 53 of the Act are remedied and the authority in charge determines that the defect has been improved, the authority in charge shall, following the approval of the competent central authority of the relevant industries, order the private institution to continue the construction or operation within a given period in writing, unless the relevant regulations governing the proper actions or the compulsory operation take over adopted by the authority in charge provided otherwise.

Article 58


The written notice as specified in Article 49, Article 51, and the Articles from Article 54 to the preceding Article shall also be delivered to the financial institution, the guarantor and the relevant government agencies.

Article 59


All the available operation assets as specified in Paragraph 1, Article 54 of the Act shall mean all the assets of the private institution necessary to continue the operation of the infrastructure project concerned upon the expiration of the operation period.

Matters regarding the scope, condition of transfer upon expiration of the operation period, the method of determining the price and the way and timing of payment of all the available operation assets as specified in the preceding paragraph shall be specified in the concession agreement.

Article 60


Where a private institution is required to transfer the assets upon expiration of the operation period in accordance with Paragraph 1, Article 54 of the Act, the private institution shall conduct a total assets examination within a certain period of time before expiration of the operation period.

The time period and the inspection institution, measurement method, procedure, standards and cost allocation of the total assets examination as specified in the preceding paragraph shall be specified in the concession agreement.

Article 61


The authority in charge shall conduct the evaluation of operation at least once a year during the operation period in accordance with Paragraph 2, Article 54 of the Act. An evaluation committee may be established to conduct the evaluation.

Before the authority in charge gives the private institution priority to enter into a contract in accordance with Paragraph 2, Article 54 of the Act, the authority in charge shall plan for the commission of the continuous operation, conduct financial analysis and draft the terms and conditions for continuous operation for the negotiation with the private institution.

Article 62


The measures for the evaluation of the operation as specified in Paragraph 3, Article 54 of the Act shall state the following matters:
  1. The measures and items for the evaluation of the operation;
  2. The procedure and standard for the evaluation of the operation; and
  3. Other matters related to the evaluation of the operation.

The authority in charge shall notify the private institution in writing of the outcome of the evaluation of the operation.

Article 63


These Enforcement Rules shall take effect from the date of promulgation.
Regulations Governing the Organization of the Selection Committee and the Evaluation for Private Participation in Infrastructure Projects

1. Promulgated by the Public Construction Commission, Executive Yuan, as per Letter, Reference No. (89)-Kung-Cheng-Chi-Tzi-89013511, dated May 24, 2000.

2. Article 4 was amended by the Public Construction Commission, Executive Yuan, as per Letter, Reference No. (90)-Kung-Cheng-Chi-Tzi-90039321, dated October 17, 2001.

3. Last amended by the Public Construction Commission, Executive Yuan, as per Letter, Reference No. (94)-Kung-Cheng-Chi-Tzi-09400472260, dated December 23, 2005.

4. Amended on January 3, 2007

5. Amended on November 5, 2010

6. Articles 3, 5, 17, 18, 19, 21, 24, 25, and 26 were amended by theMinistry of Finance, as per Decree, Reference No. Tai-Cai-Cu-Tzi-10425515770, dated October 15, 2015,and became effective as of the promulgation date.

Article 1 ~ 10
Article 11 ~ 20
Article 21 ~ 29

Article 1 ~ Article 10 top

Article 1


These Regulations are enacted in accordance with Paragraph 3, Article 44 of the Act for Promotion of Private Participation in Infrastructure Projects ("the Act").

Article 2


To evaluate applications submitted in response to an infrastructure project for private participation planned by the government, the authority in charge shall, for each project, organize a Selection Committee for the Private Participation in Infrastructure Projects ("the Selection Committee").

The Selection Committee shall be established before posting a public notice inviting private participation, and shall be dissolved upon completing the review process and when no relevant affairs are left requiring attention.

Article 3


The duties of the Selection Committee are as follows:
  1. To prescribe or approve the evaluation items, evaluation criteria and measures of selection;
  2. To conduct a comprehensive evaluation of the applications;
  3. To handle all the matters that should be conducted by the Selection Committee pursuant to Paragraph 1, Article 29 of the Act; and
  4. To assist the authority in charge to interpret matters related to the evaluation items, evaluation criteria and the selection outcomes.

Article 4


The Selection Committee shall consist of 7 to 17 members who shall be appointed or retained by the authority in charge and who shall have professional knowledge or experience in fields related to the infrastructure project. At least half of the Selection Committee members shall be outside experts and/or scholars.
The positions mentioned in the preceding paragraph are non-paying positions.
The candidates for the outside experts and/or scholars to be retained in accordance with the first paragraph may be selected from the competent authority's list of recommended candidates. The selected candidates shall be proposed to the head of the authority in charge or his/her deputy for approval. The candidates proposed or approved are not limited to the persons on the list of recommended candidates.
The competent authority shall publish the list of recommended candidates specified in the preceding paragraph on its website.
The outside experts and/or scholars to be retained in accordance with the third paragraph shall be retained by the authority in charge upon their consent.

Article 4-1


In selecting a Selection Committee member, the authority in charge of the infrastructure project may not:
  1. extend a personal favor or accept lobbying.
  2. accept self-recommendation.
  3. select a person who favors a specific supplier.
  4. select a person who has no professional knowledge in fields related to the infrastructure project.
  5. select a person whose integrity is questionable.
  6. do any other things that are proscribed by the competent authority.

Article 5


The outside experts and/or scholars specified in the preceding article shall be defined as follows:
  1. Where the infrastructure project is conducted by the authority in charge, the outside experts and/or scholars shall be anyone outside the main body of the authority in charge;
  2. Where an affiliated entity or institution is authorized by the authority in charge in compliance with Paragraph 2, Article 5 of the Act to conduct the infrastructure project, the outside experts and/or scholars shall be anyone outside the main body of the authority in charge, the authorized entity or institution, or the affiliated entity or institution of the authorized entity;
  3. Where another government agency is commissioned by the authority in charge in compliance with Paragraph 3, Article 5 of the Act to conduct the infrastructure project, the outside experts and/or scholars shall be anyone outside the main body of the authority in charge, the commissioned agency and its affiliated entity or institution, or the competent authority of infrastructure.

Article 6


The member list of the Selection Committee shall not be revealed before the evaluation process unless all members agree unanimously to publish the list in the tender documents.
The list specified in the preceding paragraph shall be revealed after the applicant with the best application ("the best applicant") is selected. The list shall also be revealed if the committee fails to select the best applicant or if the infrastructure project is terminated.

Article 7


The Selection Committee shall have a chairperson to manage all evaluation matters, and a deputy chairperson to assist the chairperson in handling evaluation matters. Both the chairperson and deputy chairperson shall be appointed by the head of the authority in charge or any person authorized by the head or shall be selected by and among the members.
The Selection Committee meetings shall be called by the chairperson, who will also serve as the chairman of the meeting. If the chairperson is unable to attend the meetings, the deputy chairperson shall act in his/her stead. If both the chairperson and the deputy chairperson are unable to attend, the members present shall select a member to preside over the meeting.
Where the matter specified in Subparagraph 1, Article 3 has an existing precedent or is simple in nature, the authority in charge may be exempted from convening a meeting before posting a public notice for private participation and may adopt a resolution on such matter by obtaining the unanimous written consent of all Selection Committee members instead.

Article 8


The members of the Selection Committee shall attend the meetings in person.
Any meeting of the Selection Committee shall not begin before half or more of the total members are in attendance and at least five members are present. The decision of the Selection Committee meeting requires a simple majority consent among the members present. If the project to be evaluated is a major infrastructure project specified in Paragraph 2, Article 3, the members present shall not be less than seven people.
Among the members attending the meeting as specified in the preceding paragraph, at least half of them shall be outside experts and/or scholars.
At a vote of the meeting, the chairman may demand non-committee personnel to leave, unless the personnel is required to fully participate in accordance with Paragraph 3, Article 13.

Article 9


Under any of the following circumstances, the member of the Selection Committee shall avoid conflict of interests:
  1. Where the application is involved with the interest of the member, the member's spouse, the member's relative by blood or marriage within three generations, or the member's relative who lives and shares assets with the member;
  2. Where there is an employment, mandate or agency relationship between the member or the member's spouse and an applicant or the responsible person of the applicant; or
  3. Where there are substantial facts indicating that the member may not be impartial in performing his/her duties.

Article 10


The members of the Selection Committee shall conduct the evaluation-related affairs in accordance with the laws and regulations and with impartiality. The members are forbidden to be involved in any of the following behaviors:
  • Using the membership to solicit commitment or receive bribery, kickback, gift, discount, or other unlawful interests;
  • Accepting banquets, accommodation, transportation, entertainment, tours, sightseeing or other treats for free or on discount in exchange for the member's favor in the evaluation process, unless the accommodation and transportation services are provided by the authority in charge and are necessary to conduct the member's duty;
  • Leaking confidential information of the evaluation process;
  • Taking advantage of the reviewer-applicant relationship to conduct unlawful affairs;
  • Using the confidential information obtained during evaluation to seek unlawful personal gains;
  • Being retained or commissioned by the applicant during the term of the committee member;
  • Using the reviewer-applicant relationship to request the applicant to offer employment, promotion, transfer or other similar benefits to a specific third person;
  • Taking advantage of the reviewer-applicant relationship to borrow/lend money from/to the applicant or conduct backchannel investment; or
  • Using the reviewer-applicant relationship to conduct or receive illegal requests or lobbying.
  • Being involved in affairs that would have a serious impact to the image of the Selection Committee, or cause the public to recognize the Selection Committee as unable to impartially conduct the affairs and operations regarding the evaluation.
Article 11 ~ Article 20 top

Article 11


Where a member of the Selection Committee is involved in the behavior specified in Articles 9 or 10, the member should resign voluntarily. If not, the authority in charge shall dismiss the member from the Committee.
Where the total members of the Selection Committee or the number of outside experts and/or scholars is below the minimum as required in Paragraph 1, Article 4, because one or more members lost membership for reasons specified in the preceding paragraph or for any other reason, the authority in charge shall replenish the Committee by appointing one or more new members.

Article 12


The members of the Selection Committee shall not file a separate application in person or assist any other applicant in filing an application upon receiving relevant documents regarding the application concerned. Any violation to this provision shall invalidate the subject applicant for eligibility for best applicant or the applicant of the second best application ("the second best applicant").

Article 13


Upon the establishment of the Selection Committee, the authority in charge shall also organize a task force to assist in matters related to the evaluation.
The task force shall have at least a staff of three, who shall be the staff of the authority in charge or professional personnel designated by the head of the authority in charge or the persons authorized by the head of the authority in charge
At any meeting of the Committee, at least one staffer shall attend with full participation.
The staffer shall resign on the occasion involving any of the conditions specified in Articles 9 or 10. If not, the authority in charge shall dismiss the staffer from the task force.

Article 14


The task force shall, based on the need of evaluation operations, provide assistance during the process.
The task force shall, pursuant to evaluation items or the matters designated by the Selection Committee, submit its preliminary evaluation comments stating the following particulars along with the materials provided by the applicants to the Committee for reference:

  1. Name of the subject project;
  2. Name, position and expertise of each task force staffer;
  3. Comments on whether the materials regarding evaluation items submitted by the applicant comply with the tender documents; and
  4. Comparison of the applicants' qualifications in the evaluation items.

Article 15


Unless otherwise required for official use or provided for in accordance with relevant laws and regulations, the materials submitted by applicants for evaluation shall be kept confidential by the members of the Selection Committee and personnel participating in the evaluation. The foregoing provision shall also apply where the evaluation is completed.

Article 16


Evaluation procedure, based on the character of the private participation in infrastructure projects, is divided into two stages: qualification review and comprehensive review.

Article 17


During the qualification review, the authority in charge shall review the documents submitted by the applicants and select qualified applicants based on the qualification requirements set forth in the tender documents.
If the applicant submits incomplete qualification documents but such applicant is in fact qualified, the authority in charge may notify the applicant to submit the omitted parts within a given time.
During the qualification review specified in the first paragraph, if the authority in charge considers the relevant documents submitted by the applicants to be not in conformity with the procedure or format requirements, or to contain ambiguous information, the authority in charge may inform the applicant to make corrections or clarification within a given time in accordance with the requirements set forth in the tender documents.
Failure to make such corrections or clarification within the time given by the authority in charge, as specified in the preceding two paragraphs, shall render the resubmission, corrections or clarification unacceptable.
The authority in charge shall notify each applicant of the outcome of the qualification review specified in the first paragraph no later than the time a best applicant is selected by the Selection Committee or no best applicant is selected. The authority in charge shall inform the disqualified applicants of reasons for such a decision.

Article 18


During the comprehensive review, the Selection Committee shall, according to the evaluation items, evaluation criteria and measures of selection specified in the tender documents, select the best applicant based on the investment proposal and relevant documents submitted by the qualified applicants selected from the qualification review as specified in the preceding Article. If necessary, the Selection Committee may select the second best applicant.
During the comprehensive review specified in the preceding paragraph, if the Selection Committee considers the investment proposal and the relevant documents submitted by the applicants to contain ambiguity, the Committee may notify the applicants to make clarification within a given timeframe. Failing to make such clarification within the timeframe shall render the clarification unacceptable.
In the comprehensive review, the financial plan should be listed as a compulsory item for evaluation and be weighted properly.

Article 19


The authority in charge may, depending on the character of the project, state in the tender documents that the comprehensive review will be conducted in phases or in groups.
If the phase method specified in the preceding paragraph is adopted, the Selection Committee may select no more than three applicants as the nominated applicants based on the investment proposal and relevant documents submitted by the qualified applicants during the comprehensive review. The best applicant shall be selected depending on the royalty offered, government commitment involved or other factors of public interest. If necessary, a second best applicant may be selected.
If the group method is adopted, the authority in charge shall, depending on the character of the project, group the members of the Selection Committee according to their expertise to conduct a group review, then compile the results to conduct a comprehensive review.

Article 20


If necessary, the authority in charge may state in the tender documents that negotiations may be conducted during the comprehensive review depending on the necessity.
When conducting negotiation during the comprehensive review, as specified in the preceding paragraph, the Selection Committee shall, according to the evaluation criteria prescribed in Article 3, conduct the preliminary review based on the investment proposal and relevant documents submitted by the qualified applicants, and select no more than three applicants as the nominated applicants. The Committee shall then negotiate with the nominated applicants and select the best applicant depending on the investment proposals resubmitted by the nominated applicants. If necessary, the second best applicant may be selected.
The Selection Committee may authorize the task force to conduct the negotiations specified in the preceding paragraph. The task force shall append the results of negotiations to the investment proposal re-submitted by the nominated applicant and submit the documents to the Committee for further review.
Article 21 ~ Article 29 top

Article 21


Where negotiations are required during the comprehensive review, the Selection Committee shall conduct negotiations in accordance with the following principles:
  1. No nominated applicant shall be discriminated against during the negotiation;
  2. Where the negotiation involves amendable items specified in the original public notice, all nominated applicants shall be informed of the amendable items in writing;
  3. Where the negotiation involves financing, the principal financing institution may participate in the negotiation;
  4. Upon the completion of negotiation, the nominated applicants shall resubmit their investment proposals amended according to the outcome of negotiation within a specified time limit; and
  5. The process and content of the negotiation shall be kept confidential.
If the nominated applicant fails to resubmit the amended investment proposal within the time limit as specified in Subparagraph 4 of the preceding paragraph, it shall be deemed that the applicant chose not to amend and the Committee shall proceed in the evaluation process with the original investment proposal.

Article 22


When the Selection Committee conducts negotiation, the following matters shall be noted:

  1. The items awaiting negotiation of the nominated applicants shall be listed with the advantages, disadvantages, mistakes or omissions indicated;
  2. The negotiation procedure shall be planned;
  3. The maximum number of representatives allowed to participate in the negotiation shall be stated;
  4. The venue for negotiation shall be carefully selected;
  5. Confidentiality measures shall be executed;
  6. The nominated applicants shall be negotiated separately;
  7. Unless otherwise provided in the tender documents, the application documents of the nominated applicant and the content of evaluation shall not be revealed to other nominated applicants; and
  8. The negotiation shall be minuted.

Article 23


If the investment proposals and relevant documents submitted by the qualified or nominated applicants, selected by the Selection Committee pursuant to Article 18 to 20, are determined in the comprehensive review as being below the evaluation criteria or inconsistent with public interest, the Committee may choose not to select the best and the second best applicant.

Article 24


Where the evaluation results of the Selection Committee differ distinctly from the preliminary evaluation opinion of the task force, or the evaluation results of different Committee members contradict each other, the chairperson should refer the discrepancies to the Committee for resolution or follow the Committee resolution to conduct a re-evaluation, and the proceedings shall be minuted. If the re-evaluation still carries distinct discrepancies, the Committee shall make the final resolution.
The Selection Committee, pursuant to the preceding paragraph, may make any of the following resolutions:
  1. Countermand the preliminary evaluation opinion of the task force for the task force to re-submit;
  2. Exclude the evaluation results of individual Committee members and recalculate the evaluation results;
  3. Abolish the original evaluation results and produce another set of evaluation results; or
  4. Decide not to select the best or the second best applicant.

Article 25


The outcome of the comprehensive review shall be reported by the task force to the head of the authority in charge or personnel authorized by the head for approval and published on the information network of the competent authority and notification shall be given to the applicants in writing within two weeks of the approval.
The authority in charge shall, based on the outcome of the comprehensive review, conduct the follow-up negotiations, execute the concession agreement and do other relevant matters in conjunction with the best or the second best applicant.

Article 26


The meetings of the Selection Committee shall take minutes, which shall be signed by all attending members.
The meeting minutes specified in the preceding paragraph shall include the following items:
  1. Name of the subject project;
  2. Serial number of the meeting;
  3. Time of meeting;
  4. Venue of meeting;
  5. Name of the chairman;
  6. Names of members present and absent;
  7. Names of observers at the meeting;
  8. Names of the recorders of the meeting minutes;
  9. Matters reported and subsequent decisions made;
  10. Matters discussed and subsequent resolutions adopted;
  11. Provisional motions raised and subsequent resolutions adopted; and
  12. Other matters that should be recorded in the minutes.
The meeting minutes of the Selection Committee shall be made public after the completion of the comprehensive review process.
The meeting minutes of the Selection Committee and the summary table compiled by the authority in charge following the comprehensive review shall, except those involving trade secrets of individual applicants, be made available such that all applicants may apply for reviewing, transcribing, duplicating or photographing.
Unless otherwise provided by law, comprehensive review comments of the members attending the meeting shall be kept confidential and may not be applied for reviewing, transcribing, duplicating, or photographing.

Article 27


Where members of the Selection Committee have different opinions on the decision of the meeting, they may request their opinions to be included in or attached to the meeting minutes. The Selection Committee shall not reject such requests.

Article 28


If the Selection Committee needs to send official documents to external entities, the documents shall be sent in the name of the authority.

Article 29


These Regulations shall take effect from the date of promulgation.