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Cabinet approves budget for construction projects

The Cabinet yesterday earmarked over NT$94 billion in funding for the five-year, NT$500 billion (US$14.66 billion) 10 New Major Construction Projects package for next year, including NT$2 billion for the much-anticipated branch of the Guggenheim Museum in Taichung.

"Both President Chen Shui-bian (陳水扁) and Premier Yu Shyi-kun are very happy to talk with the Guggenheim Foundation to help the city put the plan into practice," Cabinet Spokesman Chen Chi-mai (陳其邁) said at a press conference held after the Cabinet's weekly closed-door meeting.

The NT$94 billion budget also includes NT$2.2 billion for the 2008 Taiwan Expo; NT$330 million for the construction of a branch of the National Palace Museum in Taipao, Chiayi Country; NT$2.8 billion for the "Digital Taiwan program;" NT$1.9 billion for the railway expansion project; NT$48 billion for the mass rapid transit systems in Taipei, Tai-chung and Kaohsiung; NT$3.4 billion for a sewage drainage project; and NT$437 million for the creation of four artificial lakes and desalination plants.

The 10 New Major Construction Projects will cover take place over five years. The budget for the first year is slated at NT$93 billion and that for the fifth year is expected to be NT$106 billion, with increases in intervening years.

While the Cabinet will borrow 80 percent, or NT$400 billion, of the total amount needed for the construction initiative, it will raise the remaining 20 percent, or NT$100 billion, by selling stakes in state-owned businesses, selling tickets for the 2008 Expo and sell gravel excavated from the four artificial lakes that are included in the plan.

Of the NT$500 billion, NT$471.2 billion is reserved for the massive construction projects, NT$18.7 billion is for interest payments on the NT$400 billion loan and NT$3 billion is slated for expenses associated with the NT$93-billion sale of shares in state-run enterprises. The remaining NT$7 billion will be set aside as an emergency fund.
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