AmCham arrow Publications arrow Topics Archive arrow Topics Archive 2004 arrow Vol.34- No.4 arrow Issues: Urgent Quality-of-Life Issue
Issues: Urgent Quality-of-Life Issue PDF Print E-mail

Encouraging foreign companies to bid on sewage-treatment projects would speed up improvements in Taiwan's infrastructure.

In terms of gross domestic product, per capita income, foreign exchange reserves, and numerous other indicators, Taiwan has already achieved an impressive degree of economic development. By another standard, however, the state of development seems to be practically at a third-world level: only 10% of total sewage is currently fully treated. That percentage is far lower than for most other countries at similar stages of development, and given that untreated sewage is a serious source of water pollution and potential disease, it presents a serious issue affecting the quality of life.

The government's Council for Economic Planning and Development (CEPD) says that while both the central and local governments have been promoting the construction of more water treatment facilities, several problems have retarded progress. First, while all but two counties have set up special task forces to deal with sewage and water treatment, most local governments still lack the necessary expertise and technical personnel required to handle water-treatment issues effectively. In addition, land for sewage-treatment plants is difficult to acquire, in part because of opposition from local communities with a "not in my backyard" attitude. Finally, such projects are difficult to implement because they need coordination among many different jurisdictions. In northern Taiwan, for example, an effective sewage-treatment plan would have to incorporate the cities of Taipei and Keelung, plus Taipei and Taoyuan Counties.

Another oft-cited reason for the slow progress is that many politicians prefer to use available infrastructure budget for more visible projects such as roads and bridges. Voters, it is assumed, are less impressed with underground piping. And because the original urban planning did not take sewage systems into account, the systems now have to be constructed around already existing buildings, greatly complicating the process.

Despite the obstacles, government efforts have not slackened. Some 50 cities, towns, and counties have completed planning and design work for treatment systems that are scheduled to come on line by 2008. Another 50-some projects are under planning. The central government is providing technical assistance to help localities with populations over 100,000 carry out the design, bidding, and construction processes, and it also hopes to spur private investment in sewage-treatment systems through BOT projects.

During the period of the current six-year plan ending in 2008, public investment in water treatment at all levels of government is projected at NT$19.7 billion (US$597 million), while the private sector is expected to invest NT$26.7 billion (US$809 million). The aim is to raise the nation-wide percentage of public sewage system connectivity from 10.1% in 2002 to over 22% in 2008 (and from 21.8% to 32% counting the less-complete treatment provided by private and building-system facilities). Also under study is legislation to permit the Environmental Protection Administration to raise user fees to a high enough level to contribute to financing new treatment facilities.

A key part of the solution should also be to ensure an active role for multinational companies specialized in this field. These companies have often been discouraged from bidding on such projects because of murky tendering procedures that seem to favor local interests. Frequently projects are heavily tied up with local political considerations. One European-based enterprise was in contention for a large contract in Kaohsiung, but negotiations broke down over differences in how the project should be approached.

Greater involvement in Taiwan's sewage-treatment program by multinational companies with broad experience and the latest technology would hasten the day when Taiwan citizens' living standards reach a level commensurate with the country's economic strength.
 
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