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Trillion NT Dollar Investment National Development Plan
To guide the injection of funds into national development, the government has launched the "Trillion NT Dollar Investment National Development Plan." This plan focuses on three main strategies: Innovative Promotion of Private Participation (PPP) Mechanism, Optimizing the Investment and Financing Conditions for Public Construction, and Enhancing Financial Products Related to Public Construction. Additionally, an Executive Yuan level PPP project meeting is established to create a public-private partnership platform, where the government and the private sector mutually commit and agree to invest trillions of dollars in Taiwan, thereby driving national development.
Strategy 1- Innovative mechanisms to advance PPPs
Through the proposal platform for promotion of PPP at the Executive Yuan level, the feasibility of PPP is reviewed during the new project planning phase by central government agencies. The platform also widely collects proposals from the private sector, thus expanding PPP projects from the source of plans. An Executive Yuan level PPP project meeting is convened, which sets up a PPP Promotion Workgroup and Regulatory Adjustment Workgroup, engaging in cross-agency coordination and communication and listening to suggestions from private sector representatives, experts, and scholars to optimize PPP efficiency and promote deregulation. A dedicated PPP office is established to handle both government and private sector proposals, providing a single-window service for consultation and guidance.
Strategy 2- Improving financing and investment conditions
The goal is to reduce the risk coefficient for the insurance industry for investing 100% in public construction through domestic private equity (PE) and venture capital (VC) funds, thereby increasing the willingness of the insurance industry to invest in public construction through PE and VC. Inventory of strategic industry projects with public construction characteristics will also be taken to facilitate the insurance industry’s application of higher investment limits. Additionally, increasing the guarantee ratio of the national financing guarantee mechanism will help reduce risks for domestic financial institutions and increase their willingness to provide financing.
Strategy 3- Expanding financial products
By promoting fund-structured REIT expanding the issuance of the Sustainable Bonds, and securitizing public construction, and other diversified financial products, the aim is to reduce the government's financing costs for public construction and provide high-quality financial products for private sector investment.
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Related File(s)
- Trillion NT Dollar Investment National Development Plan