While the Ministry of Transportation and Communications (MOTC) will decide later today whether it will terminate its contract with Far Eastern Electronic Toll Collection Co on the continuous operation of the highway electronic toll collection (ETC) system, media reports have identified two domestic institutions as potential successors to the build-operate-transfer (BOT) project.
Chunghwa Telecom, a formerly state-run operation and now a private corporation, is said to be in charge of the technical aspect of the system, whereas Chunghwa Post Co a state-owned company, will handle financial matters, including helping motorists add funds to the cards used for Onboard Units (OBU) and billings.
MOTC Minister Kuo Yao-chi (郭瑤琪) was hesitant to confirm the validity of the news yesterday, and simply said that "it is one of the options." Chunghwa Telecom issued a statement yesterday saying that it has not received any official notice from MOTC, adding that it was once involved in the testing of the ETC system in 1998 and is not familiar with the system Far Eastern uses.
"Chunghwa Telecom is a private firm, and to become the operator of the ETC system will be a major business decision," the statement said.
"In order to be involved in the investment, the company will have to undergo thorough assessment and the proposal will have to be approved by the board," it said.
Chunghwa Post told the media yesterday that MOTC has inquired about possible ways for them to take over the ETC system. The company has also suggested that MOTC allow gas stations and convenience stores to help with value-adding operations. The funds they collect would be deposited in the company's accounts.
In response to a demand from the Executive Yuan, MOTC has informed Far Eastern to deliver a new proposal within three working days to secure the right to continue to operate the ETC system.
In response, Far Eastern published a 10,000-word petition in six major local dailies on Monday to defend its position.
It accused the government of constantly changing the policy ever since the launch of the new highway toll-collecting system and not mentioning the plan of offering OBUs to motorists for free.
Kuo said yesterday that the government would pay no more than NT$1.8 billion (US$55 million) should it want to take back the management right of the ETC system from Far Eastern.
"If they [Far Eastern] are found to be at fault by the administrative court, the government would not even have to pay anything," Kuo added.
Far Eastern has said that it would strive to come up with strategies that benefit the government, the company and motorists.
Kuo said in answering the questions from the legislators that she was dissatisfied with Far Eastern's offers so far.
Academics have cast doubts on the huge compensation that the government would need to pay in order to redeem the system. In particular, they have questioned whether public law or private law should be applied in arbitrating the lawsuits generated by a BOT contract.
The Executive Yuan said last Saturday that the ETC system has had a significant negative impact on the public's trust in the government. The administration has to take immediate action to protect the public interest, and as such, public law is applicable in this case.
By law, the government is entitled to withdraw the system from Far Eastern.
However, Far Eastern is also entitled to make a claim from the government.
Huang Yu-ling (
Based on the same statute, the government can terminate the contract if any illegalities were involved in the process and the BOT operator cannot make any claim in this case, he said.
Premier Su Tseng-chang (
Additional reporting by Jimmy Chuang
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