Wed, Jun 17, 2015 - Page 13 News List

Farglory blames city government, asks to sell Dome

By Crystal Hsu  /  Staff reporter

Farglory Group (遠雄集團) yesterday asked the Taipei City Government to buy back the Taipei Dome project, saying it has difficulty working with policymakers who refuse to honor contract terms from their predecessors.

The Taipei-based developer said it would respect the creditor banks if they are willing to take over the matter as the city government suggested.

State-run Mega International Commercial Bank (兆豐國際商銀), the lead bank of a syndicated loan to finance the project, said it has yet to receive any formal notice from either party and would stay on the sidelines for the time being.

“We regret the city government’s inconsistent stances in dealing with the project and would end the partnership to avoid dragging out the drama,” Farglory said in a three-page statement.

The company said it is not to blame for construction delays that it insists stem only from government inaction and inconsistency.

Construction should last until March 30 next year without factoring in the suspension at the behest of the city government on May 20, Farglory said.

The builder said it inked a pact with the city government in October 2006 to develop the Taipei Dome project, but failed to obtain the building permit until June 2011. That translated into a delay of three years and eight months, the statement said.

The company also had to carry out underground rewiring work, overnight debris transport and tree relocations — which remain unfinished amid civic protests, the statement said.

City officials first agreed to relocate trees, but backed off later amid the protests, Farglory said.

Also, weather-related issues impacted progress and Farglory sought extensions in line with all requirements, the statement said.

“The company is willing to pull out if the city government insists on taxing Farglory for construction delays,” the statement said.

The city government is welcome to talk with creditor banks and find other companies to take over the construction project, the statement said.

Firms involved in the syndicated loan of NT$15.4 billion (US$492.55 million) said they cannot take action based on news reports.

“The city government and Farglory have to notify creditor banks in black and white before we can contemplate next moves,” a Mega Bank official told the Taipei Times by telephone yesterday.

Upon receiving the notice, creditor banks would need to discuss potential solutions, said the official, who declined to be named.

All parties had better calm down and try to resolve their differences, the official said.

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