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Joint venture proposed to spur urban rejuvenation

The government will join the private sector in establishing a joint-venture company to speed up the pace of urban rejuvenation, a spokesman for the Cabinet's top economic planning agency said yesterday.

Competitive salaries will be offered to attract competent professionals to work for the new company, the Council for Economic Planning and Development (CEPD) spokesman said.

The spokesman said the council had been working to quicken the pace of land redevelopment in old urban communities across the country, but problems in land acquisition stemming from illegal constructions and occupancy had increased cost and scheduling risks and costs, turning off most private investors from the projects.

Saying that urban renewal is a complicated process that cannot be completed solely by government agencies or nonprofit organizations, the spokesman said that the council has decided to collaborate with the private sector to set up an urban rejuvenation company that will begin operating on April 21.

According to a CEPD blueprint, the National Development Fund under the Executive Yuan will invest a maximum of NT$2.4 billion (US$75 million) for a 40 percent share in the company, and state-run financial institutions will hold a 9 percent stake, investing a maximum of NT$540 million, the spokesman said.

The remaining 51 percent will be held by private companies, which will invest a maximum of NT$3.06 billion, the spokesman said.

He added that total investment in the joint-venture company would be set at NT$6 billion, with the paid-in capital to be set at NT$3 billion when the company is established.

Many cities around the country have old buildings that are often crowded together in densely populated areas. Some of the buildings were quickly built after 1949 to accommodate the influx of hundreds of thousands of refugees fleeing China.

The newly formed company is designed to assist government agencies, state-run institutions and private companies to carry out urban renewal as well as help select and manage urban renewal business operators dedicated to implementing community regeneration.

The company will also invest or provide funds to various urban renewal companies to spur development in the construction and related businesses, the spokesman said.

He said the company would offer high pay to lure professionals specializing in urban renewal, urban planning, land development, financial planning, investment assessment, legal affairs and project management.

According to the initial plan, the company's president is expected to receive an annual salary of NT$3 million to NT$4 million. General managers would get NT$2.5 million to NT$3.5 million, while deputy general managers would be offered NT$1.5 million to NT$2.5 million.

Meanwhile, department heads would receive NT$1 million to NT$1.4 million. An annual salary ranging from NT$800,000 to NT$1.2 million would also be offered to staffers, the spokesman said.
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