The Taipei City Government plans to create a predictable, low-risk environment for corporations participating in city development projects, Taipei Mayor Ko Wen-je (柯文哲) said yesterday.
Ko said that his objective was “to enhance transparency to ensure that city development projects will not run into trouble after a change in city administration.”
Past city development projects had been too unpredictable, leading companies to demand high profits with a host of related problems, said Ko, whose administration has reopened negotiations on several build-operate-transfer projects over allegedly “unreasonable” conditions negotiated by previous administrations.
Ko said his most important task as mayor was to “transform corporate culture” by introducing transparency to the negotiating process for development projects, and at the same time achieve full societal consensus for any such projects.
That would enable the city government to reduce investment risks, allowing corporations to earn smaller, but more stable profits, he said.
Ko made the comments at a city government information session on biddings for six new major city development projects, including BOT projects, leases of city land and a publicly directed urban development project. The information session follows a similar session last week on major city construction contracts.
During a dialogue between corporate executives and city officials, Shin Ruenn Construction chief executive Huang Wen-chen (黃文辰) said that his firm hopes to earn profits of more than 2 to 3 percent if it participates in city development projects, but is concerned that higher profits would attract negative media attention.
He added that he hoped Ko’s administration would be re-elected, or his firm might face a barrage of criticism from the next city administration.
A wide array of other construction and development firm executives attended the session, including Radium Life Tech Co’s (日勝生) Lin Jung-hsien (林榮顯).
Radium Life is currently engaged in mediation with the city government over the controversial MeHAS City development project, with Taipei claiming that the firm short-changed it by NT$7.6 billion (US$242 million).
Lin said that his firm would evaluate all of the city’s proposed development projects and submit a bid if there were reasonable conditions and profits.
Ko said that he welcomed the participation of any firm willing to abide by newly announced city guidelines for development project bids.
He added that Radium Life had not been placed on a blacklist restricting it from bidding on city development projects, since there is no ongoing lawsuit between the firm and city.
Farglory Group (遠雄集團), with which the city government is locked in conflict over the future of the Taipei Dome build-operate-transfer project, did not send a representative.
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