The government is mulling plans to securitize Taiwan’s major infrastructure projects as a way to promote private investment and strengthen public finances, according to the Ministry of Finance Aug. 5.
Such a move will provide more long-term investment options for the country’s life insurance companies and pension funds, and at the same time enhance the liquidity of existing project participants, enabling them to make additional investments.
The measure is part of the public finance improvement scheme proposed by MOF Minister Chang Sheng-ford at the beginning of the year.
Ministry officials met with representatives of the Financial Supervisory Commission and financial sector associations to discuss related measures. The MOF is due to organize more meetings with sector representatives on the matter soon.
The MOF is targeting Build-Operate-Transfer projects with a steady income of at least NT$300 million (US$10 million) per year. So far, more than 20 projects in four major categories are being considered, including college dormitories, major tourist sites, sewage management facilities and transportation hubs.
Public construction projects have been a major driver of the local economy in recent years. A total NT$190.1 billion has been earmarked for 2015, up 6.8 percent from this year, in the proposal for next year’s central government budget released Aug. 5 by the Directorate-General of Budget, Accounting and Statistics.
MOF statistics show that from 2002 to 2013, public projects have attracted NT$918.2 billion in private investment, saving NT$853.1 billion in government outlays, generating revenues of NT$548.5 billion and creating more than 150,000 jobs. (SFC-SDH)
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