Vice Premier Cheng Wen-tsan (鄭文燦) on Wednesday said that the Cabinet would set up a support fund package of NT$3 billion (US$93.8 million) to cover portions of the expenditure for the new Keelung MRT project, thereby easing the financial burden on the Keelung City Government, as the project is expected to start construction at the end of this year.
The Keelung MRT Construction and Operation Fund would be established to reduce the financial burden of the city government, which would need to pay NT$1.7 billion through the expected nine years of construction, Cheng said.
When the Cabinet finalized the project in February last year, the estimated total expenditure was NT$42.5 billion, with the Keelung City Government’s share at NT$1.77 billion.
Photo: Yu Chao-fu, Taipei Times
However, the official estimate has risen to NT$69.7 billion due to higher construction material costs, a shortage of labor, higher wages, the effects of a global economic downturn and an adjusted calculation for the appropriation of private land.
The Keelung City Government’s increased financial commitment had angered Keelung Mayor Hsieh Kuo-liang (謝國樑), who had refused to cover the higher costs.
In response to Cheng’s announcement, Hsieh on Wednesday said: “I can happily accept this new proposed funding package ... as we are impressed by the goodwill shown by the Cabinet.”
Cheng said the Cabinet had assessed real estate and commercial developments associated with the Keelung MRT project would bring in more than NT$4 billion of revenue, including a new “Industrial Town for Sci-Tech Research and Development” in Keelung’s Wudu District (五堵).
This revenue would be incorporated into the Keelung MRT Construction and Operation Fund which the Cabinet would help the city government set up.
The MRT line’s route through Keelung had also been adjusted to cut costs, Cheng added.
Meanwhile, Democratic Progressive Party (DPP) Legislator Lai Pin-yu (賴品妤) said about half of the Keelung MRT route would serve urban areas in New Taipei City’s Sijhih District (汐止), so she requested that construction begin as soon as possible.
Independent Keelung City Councilor Wang Hsing-tzu (王醒之) said that financial issues resulting from the project also include the cost of operating the line, which Cheng did not mention.
Additional reporting by Jason Pan
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