The Taipei City Government yesterday said that it has settled all lawsuits with Radium Life Tech on joint development projects, adding that it will compensate the firm NT$240.4 million (US$7.58 million) for the Mass Rapid Transit (MRT) system’s Nangang Depot Joint Development Project on the Bannan Line.
The compensation stems from preliminary work the firm performed on the joint housing project, before the contract was terminated by the city government in April, Taipei Department of Rapid Transit Systems Joint Development Division Director Wei Kuo-hua (魏國華) said.
The firm initially asked for NT$565 million in compensation, but later agreed to the smaller sum following negotiations with the city, Wei said.
The city has paid NT$336 million to the company to compensate it for the construction costs and design fees regarding the work it conducted to integrate buildings with the depot and it also returned NT$245 million of performance bond the firm paid for the project, he said.
Meanwhile, the firm cleared two payments in connection with the Xindian Depot joint development project, commonly known as the MeHas City housing project, Wei said.
An arbitration hearing in July ruled that the company must pay the city NT$3.35 billion to compensate for land it undervalued for the project, which covers 2.86 hectares.
The company cleared the payment on July 25, Wei said.
The firm has compensated the city NT$354.6 million for construction work that it has yet to carry out at integrated commercial property as part of the MeHas project, he said.
The commercial property was to be run by Radium Life, but has been transferred to the city in accordance with the arbitration ruling, Wei said, adding that the city will lease it to the private sector.
The city still has one contract with Radium Life for the MRT Daqiaotou Station joint housing project, with construction to begin soon, he said.
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