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Tainan City railway project hit by lack of available funds

An underground railway project in Tainan City hit a snag yesterday when both the central and city governments indicated that it was beyond their power and ability to fill a financial vacuum in the required budget.

An estimate by the Ministry of Transportation and Communications showed that a budget of NT$29.57 billion (US$891.54 million) is required to build a 7.55km section of the railway under the city.

The ministry had asked Tainan to put up NT$7.14 billion, but the cash-strapped local government has complained that it could not bear such a large share of the cost.

At a meeting with Tainan City councilors and officials yesterday, Minister of Transportation and Communications Tsai Duei (蔡堆) acknowledged the importance of Tainan's underground railway project in preserving the city's many important historical relics, saying an elevated railway would ruin the city skyline.

Fearing that further delays would only add to the cost, Tsai urged that the project begin as soon as possible.

The city government suggested that the central government make the full amount needed for the project available, or else allow the city government to repay the central government NT$2.5 billion over 15 years, or NT$4 billion over 25 years.

Tsai said it was beyond his power to agree to such a proposal, while Cheng Szu-jung (鄭賜榮), director-general of the ministry's Railway Reconstruction Bureau, virtually rejected the proposal, saying that the ministry would have difficulty mustering extra funds to fill the financial vacuum.

Alternatively, Councilor Wang Ting-yu (王定宇) suggested that the cost borne by Tainan in acquiring the needed land for the project be included in the overall budget, thereby reducing Tainan's share to NT$4.4 billion.

City Council Speaker Huang Yu-wen (黃郁文) threw his support behind Wang's proposal and urged city government officials to work out a plan with Wang so that the city council can formally endorse it for presentation to the central government.
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