The company in charge of constructing Taiwan's first bullet-train railway said yesterday that it has failed to reach its target of raising NT$6 billion (US$191 million) by the end of last month.
The Taiwan High-Speed Rail Corp (THSRC,
"Our investors have consented to finance the project, but it takes some time for them to process the fund allocation, which is the major reason for the delay," Arthur Chiang (江金山), THSRC's vice president of public affairs, told a press conference yesterday.
"The funds will be in within this month," he said.
A consortium of 25 local banks led by Chiao Tung Bank (
Nonetheless, Chiang said yesterday that THSRC currently still has sufficient funds to continue construction of the 345km high-speed railway.
THSRC signed a contract with the banking consortium in February 2000 for a NT$323.3 billion syndicated loan. THSRC has received NT$226.9 billion thus far, Chiang said.
However, in terms of the contract, the delay in reaching the fundraising goal means that THSRC has to pay a fine of about NT$100,000 per day until it has raised the NT$6 billion, he said.
This was not the first time THSRC has delayed its fundraising schedule for the NT$460.9 billion project.
The company was supposed to pool NT$7.5 billion by the end of last year, but managed to secure only NT$1.5 billion, which prompted it to ask for an extension until the end of last month to raise the remaining NT$6 billion.
Judging by the drawn-out fundraising schedule, it is doubtful if THSRC will be able to meet its next target of raising another NT$7.5 billion from designated investors by the end of May.
Chiang yesterday shrugged off this concern, saying the company has been eagerly looking for investors and is positive about reaching its future fundraising targets.
In addition to preferential shares, THSRC also plans to issue 1.25 billion common shares at NT$10 per share by the end of September, and another 1.25 billion shares by the end of the year, Chiang said.
"We believe that, as the construction nears completion, the public will have more confidence in us, which will boost their interest in investing in the project," he said.
By the end of February, construction was 82.1 percent complete, and the bullet train had notched up a speed of 120kph in a test run, which is one month ahead of the company's timetable, Chiang said.
THSRC is currently testing the electric power system, as well as track and car performance, and will start testing traffic lights in June, he said.
Concerning the list of 26 technical problems that remain unsolved, Chiang said that the company is working on solutions with the Taiwan Shinkansen Corp, the contractor responsible for the high-speed railway's mechanical and electrical systems.
THSRC chairwoman Nita Ing (
Chiang said yesterday that the company is still striving to be ready on this date.
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