Title Private Participation of Port Construction & Management Projects
Dept IOT
Year 2001
Month
Price
Summary Prior to the enforcement of the (Law for Promotion of Private Participation in Infrastructure Projects)  (LOOOIP), the private sectors have long been involved in the construction and operation of the port facilities.  The investment activities within the existing ports are in the forms of joint investment lease and assigned management as stipulated in (The Law on Commercial Port) (LCP).  According to LCP, all the facilities within the port boundary should belong to the port authority, so the investor could only have the right to operate the port facilities within a certain period, which does produce pressure for the financial arrangement of the project.  According to the newly issued LOOOIP, private enterprises are allowed to have the ownership of the port facilities within the concession period and are subject to the financial beneficial clauses stipulated in the statute.  So if the investment in the port facilities is more than one billion NT dollars, LOOOIP dose provide a much more attractive investment condition than the traditional LCP.  Private investment in the port facilities has a long history in other countries, and a totally privately own port is also allowed in some countries.  Port privatization methods in the international society include those of commercialization, liberalization, sale of assets, corporatisation, concessions (or BOT, or lease arrangement), joint ventures and management contracts.  The most feasible scenarios for private investment in the ports are obtained from comprehensive evaluations based on the existing regulations, tender preparation, similar cases, time frame, financial risk appraisal, and future development, etc.  The investment within the existing ports may include BOT investment in the container or cement terminals, joint construction and management, lease for dedicated facilities, lease for public facilities, contract management for the stevedoring or port service.  A better choice for the investment outside the existing port boundary should be the BOT project planned and controlled by the public sector.
Post date 2001/08/01
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