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Construction Work done to Order and Merge Roads in the Project “Creation of Superficies for State-owned Land Adjacent to Taipei Chenggong High School” Has Been Conducted in Accordance with Urban Planning Regulations. The DoF Denies Claims It Unduly Benefited Specific Conglomerates.

With regard to accusations purporting that construction work done to order and merge roads in the project “Creation of Superficies for State-owned Land Adjacent to Taipei Chenggong High School” is unduly benefiting specific individuals, the DoF has made the following explanations:

 

1. The project is one of the joint development cases conducted by the Taipei City Government (TCG) and Ministry of National Defense (MND). The TCG was in charge of publishing the Invitation to Bid (ITB) as well as supervising compliance management. The base of the project has undergone rezoning and will be consolidated from being 3 blocks into one unbroken block. This proposition has been approved by the Urban Planning Committee and has been published on 24th April, 2013.
2. After the rezoning, the DoF published the ITB in March, 2013. Fubon Life Insurance Co. won the bid with a royalty of 2.608 billion NTD. According to the ITB documentation, the TCG promises to complete the ordering and merging of roads within a two-year period after the rezoning has been approved and published. The New Construction Office has undertaken the work as of last December. However, due to protests by nearby residents regarding the possible noise, pollution and traffic problems associated with the use of the base as a hotel, the construction has been suspended since the end of last December following negotiations by city councilors.
3. The ordering and merging of roads is one of the promises made by the TCG. If the TCG fails to complete the construction before the contract deadline, Fubon Life Insurance Co. may request the termination of contract as well as a refund of royalties, rent and other compensations. To further develop the consensus, the DoF has held an information meeting on 7th April, 2015 in Zhongzheng Civil Center to communicate and negotiate with local residents. However, the meeting concluded without the two parties reaching a consensus. After careful consideration, the DoF has requested the New Construction Office to execute the construction by law. Furthermore, the DoF will hold another information meeting in the evening of 14th April to explain the reasons for continuing the construction.
4. With regard to the land value of the project, the DoF makes the following comment: The duration of the superficies is 70 years. The total publicly announced current land value was 1 billion NTD at the time of publication of the ITB. The royalty was 2.608 billion NTD, roughly 2.6 times the publicly announced current land value. In the mean time, it is required that the successful bidder pay the rent of 5% of announced land value each year. Furthermore, the successful bidder has to return the land and building thereon without compensation. The TCG did not rent out the land cheaply. Additionally, the base of the project is state-owned, which means according to National Property Act, the duration of its superficies can reach 70 years. The TCG has complied with all regulations to ensure efficient use of state-owned land, to transform the city landscape and to acquire extra revenues in the form of commissions for the municipal treasury.