Privatization efforts fall far behind their schedule

The privatization of public enterprises is far behind schedule and the sluggish stock market and economy aren't any help, either, according to Ho Mei-yueh (何美玥), vice chairman of the Council for Economic Planning and Development.

The Commission for the Privatization of Public Enterprises under the Cabinet reported recently that almost all state-run companies scheduled to be privatized before June this year have failed to met the timetable set five years ago.

Ho said that a reschedule allows Chunghwa Telecom Co (中華電信), Central Rinsurance Corp (中央再保), and Taiwan Machinery Manufacturing Corp (台機) to accomplish their privatization before the end of this year, in view of the difficulties in selling their shares in a sluggish stock market.

The privatization plans of Aerospace Industrial Development Corp (漢翔) and China Shipbuilding Corp (中船) are pending approval of the legislature, so no timetable can be made.

The two leading public enterprises -- Taiwan Power Co (台電) and the Chinese Petroleum Corp (中油) -- will be slower to privatize than originally planned by the Ministry of Economic Affairs.

A new operational model for a privatized Taipower will first be mapped out and a new bill regulating the power-generating business must be approved by the legislature. The government has made tentative plans for Taipower to privatize by the end of 2005.

Chinese Petroleum needs to accelerate its preparations for privatization, as the petroleum business is no longer a monopoly. It is expected that with the approval of a bill regulating the petroleum industry, the privatization plan will be realized by the end of 2003.