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THSRC confirms NT$60 billion bullet train loan

Taiwan High Speed Rail Corp (THSRC) confirmed yesterday that it has secured a loan of NT$60 billion (US$1.875 billion) from three banks to further fund the construction and the operation of Taiwan's first bullet train system, a build-operate-transfer (BOT) project that has cost the nation NT$480 billion.

The loan will help cover the costs accrued due to the company's decision last year to postpone the launch of the bullet train as well as the expenditure on the construction.

It will be jointly provided by the Bank of Taiwan, the Chiao Tung Bank and the International Commercial Bank of China. The company has yet to sign the loan contract with any of the institutions.

"The amount that was made available should be able to help us continue the operation," said THSRC's Spokesman Arthur Chiang (江金山).

The announcement came after the bureau of high speed rail of the Ministry of Transportation and Communications (MOTC) hosted a successful test ride recently, with Legislative Speaker Wang Jin-pyng (王金平), MOTC minister Kuo Yao-chi (郭瑤琪) and THSRC's Chairwoman Nita Ing (殷琪) among the many dignitaries that were invited.

According to Kuo, the company was supposed to report the status of the loan at the test ride.

Meanwhile, the nation's first bullet train will initially only operate between Banciao in Taipei County and Tsoying (左營) in Kaohsiung County when the train officially comes into service at the end of October, according to the deputy director of the bureau of high speed rail Hsu Chun-yi (許俊逸), who made the comments earlier this week.

THSRC will start extending lines further north next month and will also begin installing the cables for traffic signals, he said.

Hsu, however, did not commit to a specific deadline as to when these constructions would be finished.

A story published by the Chinese-language Liberty Times (the Taipei Times' sister paper) yesterday reported that line construction in the Banciao-Taipei section faced serious challenges.

The underground tunnel in the section is narrower compared to others the company built, and the crews will have problems installing multiple power lines while maintaining a safe distance between each, it said, adding that the company has planned to fix the contract with the bureau and postpone the launch of the Taipei-Banciao section until January next year.

The company, however, was unwilling to confirm the statement and insisted yesterday that the official launch of the high speed rail by October remains its goal.
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