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EPA defends incinerator decision

"The EPA's behavior has obviously damaged the dignity of Taiwan's laws and national interests."

Hsieh Chang-chieh, PFP legislator

Officials with the Environmental Protection Administration (EPA, 環保署) said they've done nothing wrong by awarding a contract to build a waste incinerator in Ilan County to a Japanese firm, despite criticism from legislators.

On Friday, Japan-based Mitsubishi Heavy Industries (三菱重工) won the bidding to build the incinerator, which is expected to treat 600 tonnes of waste daily and will cost NT$2.276 billion.

Yesterday, PFP legislator Hsieh Chang-chieh (謝章捷) criticized the EPA's favoring the Japanese firm, whose right to bid on public construction projects in Taiwan has been suspended by the Cabinet's Public Construction Commission since Dec. 7.

"Why does the EPA open a door to an unwelcome client? Does it mean the company can still do business in Taiwan despite having been blacklisted?" Hsieh told the Taipei Times.

The one-year right suspension of the Japanese firm, Hsieh said, was issued by the commission following the company's unsatisfactory performance in building LNG storage tanks for the Chinese Petroleum Corp (中油).

Hsieh said EPA head Hau Ling-bin (郝龍斌) is the first agency chief to use the right granted by the Government Procurement Act to invite a bid without taking a suspension into account.

Hsieh said that he suspects the Japanese company would follow the model of working with the EPA to bid on other profitable construction projects in Taiwan, including the NT$1.8 billion Tatan Power Plant (大潭電廠) project under the Ministry of Economic Affairs.

Hsieh said that the company is not afraid to challenge Taiwanese laws because of its good relations with high-level officials and influential political figures.

"The EPA's behavior has obviously damaged the dignity of Taiwan's laws and national interests," Hsieh said, adding that at least five local companies are capable of completing the task.

Hau yesterday stressed that the contract was awarded based on cost-effectiveness, professional performance and public interest.

"Neither I nor any of us [EPA officials] have personal relations with Mitsubishi Heavy Industries and our integrity can be tested by investigative agencies," Hau said.

Hau said the Public Construction Commission wrote the EPA on Feb. 6, saying that the agency can make its decision independently in case of emergency.

Officials said solving waste-management problems in Ilan County is an urgent matter. The county generates 500 tonnes of waste per day but only relies on landfills.

The incinerator project has been delayed for five years. As early as 1997, a Taiwanese company contracting with Germany-based Stein-muller won the bid at the lower price of NT$ 2.08 billion. But the Taiwanese company had to stop work on the project when it went bankrupt.

EPA officials said that since last July the only company in the game, Taiwan-based CTCI Corp (中鼎公司), had failed to win the bid due to its more costly bids of between NT$2.5 billion and NT$2.8 billion.

Hau said that doing business with Mitsubishi Heavy Industries rather than CTCI would save taxpayers NT$300 million.

"The bidding absolutely conforms to national interests and Ilan residents' interests," Hau said.

Environment officials said that a bidding meeting was once interrupted by a male assistant from Hsieh's office, but Hsieh dismisses the charge.
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