Lessons Learned from the Private Participation in the Taiwan High Speed Rail Project as the Reference for Future Development of U.S. High Speed Rail
Date Issued
2011
Date
2011
Author(s)
Yu, Ting-Hui
Abstract
To undertake the investment of a HSR project, the most challenging issue is the financing. During the development of the Taiwan High Speed Rail (HSR) project, in the 80s, it was decided to learn from Japan and European countries to build a dedicated HSR line. The government hoped to benefit from the advantages of the HSR and solve the problem faced in the domestic transportation sector. Due to financing difficulties the government made an important decision to build the HSR with private participation (Build-Operate-Transfer). Without previous experiences, the THSR is the first one of the HSR BOT project in the world at the time. The determination to have a successful HSR providing service to the Taiwanese people was the main goal of the government, and despites all the controversies and debates during the project life cycle, it was finally completed and started to provide service in 2007.
After the Cold War, America became the world most powerful country economically and politically. In the last two decades the U.S. Federal Government had put its attention in the development of nationwide highway networks and airport systems, neglecting the development of the conventional railway system. Without any HSR line, many serious nature-caused catastrophes and energy crisis had lead to the oil-dependent America reconsider the long-neglected railway system. The development of HSR in America can reduce highway and airway burden, also can cut down country’s carbon dioxide emission and energy consumption. Most importantly, it can reduce the distance and barriers of different States and cities. These issues induced America to reconsider the possibility of HSR, if America decides to build HSR, will eventually turn itself to the biggest HSR market that the world wishes to participate. However the decision toward a HSR line also brings up financial, construction method and environmental issues. Therefore this thesis analyses Taiwan’s private participation experience (BOT) and proposes financial suggestions as reference.
Countries interested to develop HSR are numerous, but countries that have enough resources and funding are rare. From Taiwan High Speed Rail experience, this study analyzes the advantages and disadvantages of a HSR project using BOT model. From the point of view of the government, advantages are to reduce financial burden, introduce private sector efficiency, and minimize the risk of construction and operation. However, disadvantages are time spending in the contract negotiation and the design of related laws. By expert interviews and survey analysis, this study points out key issues when implementing alternative financing in HSR: Implementation of project financing, basic acts to promote HSR, procedures and involvement, contract terms and bidding control procedures, ridership expectation, etc. This study aims to reduce risk and cost for countries seeking for alternative financing to execute their high-speed rail project.
Subjects
High Speed Rail
Private Participation
Construction Management
Taiwan
Type
thesis
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