This Act is enacted to upgrade the level of public service, to expedite social economic development and to encourage private participation in infrastructure projects.

With regard to the promotion of the private participation in the infrastructure projects, this Act shall prevail. For such matters not specified herein, other relevant laws shall apply.

The term “infrastructure project” as referred to herein shall mean a project or services for constructing any of following facilities for public use and for promotion of public interest:
1. Transportation facilities and common conduits;
2. Environmental pollution prevention facilities;
3. Sewerage, water supply and water conservancy facilities;
4. Health, welfare and medical facilities;
5. Social and labor welfare facilities;
6. Cultural, educational, audiovisual, and music facilities;
7. Tourist attractions and lodgings;
8. Power facilities, green energy facilities, and public gas and fuel supply facilities;
9. Sports facilities;
10. Parks and green spaces;
11. Industrial, commercial and hi-tech facilities;
12. Development of new towns;
13. Agricultural and resource recycling and reuse facilities;
14. Government office buildings; and
15. Digital infrastructure.
The term “major infrastructure projects” as referred to herein shall mean infrastructure projects that are important and of a certain scale. The scope of the major infrastructure projects shall be determined by the competent authority in conjunction with the Ministry of the Interior and the central authorities in charge of the relevant industries.
Where there is any doubt about the central competent authority in charge of the infrastructure projects under any subparagraph of Paragraph 1, the competent authority shall submit a report to the Executive Yuan for prior approval.

The term "private institution" as referred to herein shall mean a company established under the Company Act or any private juristic person approved by the authority in charge and that has entered into a concession agreement for its participation in an infrastructure project with the authority in charge.
Where the government or any government-owned enterprise makes any equity investment in, or makes any donation to, a private institution as referred to in the preceding Paragraph, the total equity investment or donation from the government and such government-owned enterprises shall not exceed twenty percent (20%) of the total capital or the total assets of the private institution.
Where a foreign investor holds shares in a private institution as referred to in Paragraph 1, the authority in charge may, as it may deem necessary on a case-by-case basis, request the approval of the Executive Yuan for exempting the foreign investor from foreign ownership restrictions under any other laws, unless such restrictions are necessary for national security and energy self-reliant.

The term "competent authority" as referred to herein shall mean the Ministry of Finance.
The term "authority in charge" as used herein shall mean any authority in charge of the matters relating to private participation in infrastructure projects, and shall refer to the central authorities in charge of the relevant industries, the municipal governments at the municipal level, or the county (city) governments at the county (city) level. An authority in charge may authorize any of its subordinate agencies (institutions) to execute matters to be handled by the authority under this Act.
An authority in charge may, with the approval of its superior authority, delegate matters to be handled by it under this Act to any other government agency for execution.
Where an authority in charge delegates matters to another government agency in accordance with the preceding Paragraph, the authority shall publicly announce the matters delegated and the preceding Paragraph, which is the legal basis of the delegation, and publish the same in the government gazette or newspapers or post the same on the Internet.

The competent authority shall supervise the following matters, which concern the promotion of private participation in infrastructure projects:
1. Establishment of policies and rules, and promotion of awareness of decrees and policies;
2. Collection and publication of, and compiling statistics for, information and data;
3. Specialist training;
4. Inter-agency affairs of coordination among the relevant authorities in charge, and supervision over and evaluation of the relevant infrastructure projects;
5. Processing of complaints, and mediation of disputes over performance of contracts; and
6. Other related matters.
The authority in charge shall have cases concerning promotion of private participation in infrastructure projects handled by specialists who are in charge of promotion of private participation in infrastructure projects.
The regulations governing the qualifications, examination, training, certification, follow-up personnel record keeping, and rewards for specialists responsible for private participation in infrastructure projects under the preceding paragraph shall be prescribed jointly by the competent authority and the relevant authorities.

An authority in charge shall conduct a feasibility assessment before promoting private participation in infrastructure projects in accordance with this Act. Where an infrastructure project is considered feasible through the assessment, preliminary planning for the project shall be made according to the assessment results.
The feasibility assessment under the preceding paragraph shall cover the types and details of the public interest to be promoted and the targets to be achieved through the infrastructure project. Experts, scholars, local residents, and civil groups at the places where the infrastructure will be located or where the infrastructure will be provided for service shall be invited to public hearings. If the authority in charge does not adopt the suggestions given or oppositions raised by the experts, scholars, local residents, or civil groups, it shall state the reasons in its feasibility assessment report.
Where an infrastructure project has been conducted in accordance with this Act, the preceding two paragraphs need not apply when conducting the project again in accordance with this Act after the concession agreement for the previous project has been cancelled or terminated, or the term of the project has expired.

An infrastructure project may be initiated by the private institution.

A private institution may participate in an infrastructure project in any of the following way:
1. The private institution invests in the construction and operation of a new infrastructure, and upon expiration of the operation period, transfers the ownership of such infrastructure to the government.
2. The private institution invests in the construction of the infrastructure and upon completion of the construction, relinquishes the ownership to the government without compensation. The government then lets the private institution operate the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.
3. The private institution invests in the construction of the infrastructure. Upon completion of the construction, the government acquires the ownership by paying the construction expenses in a lump sum or in installments. The government then lets the private institution operate the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.
4. The private institution invests in the extension, reconstruction and/or repair of an existing infrastructure, and operates the infrastructure. Upon expiration of the operation period, the right to operate reverts to the government.
5. The private institution operates an infrastructure built with investment from the government. Upon expiration of the operation period, the right to operate reverts to the government.
6. To support the government policy, the private institution invests in the construction of an infrastructure on private land provided by the private institution itself, has the ownership thereof upon completion of the construction, and then operates the infrastructure itself or commissions a third party to operate it.
7. Any other way approved by the competent authority.
The term “construction” under this Act shall include new construction, extension, reconstruction, and repair.
The operation periods under the subparagraphs of Paragraph 1 shall be specified by the authority in charge in the approved project or in the concession agreement. Where a lease agreement is entered into for such an infrastructure, the operation period thereof shall not be subject to the restrictions under Article 449 of the Civil Code, Article 25 of the Land Act, Article 28 of the National Property Act, and the laws and regulations governing local governments’ management of government-owned property.

The construction or operation as referred to in each of the subparagraphs of Paragraph 1 of the preceding Article may be conducted either on a part or the whole of an infrastructure project.

Where an infrastructure project is considered as a necessary, prioritized, and urgent project through policy evaluation, and it is confirmed that it is more efficient that the project is conducted in accordance with this Act rather than be constructed or operated by the government on its own, the authority in charge of the project may acquire all or part of the public services of the infrastructure with compensation during the private institution’s participation in the operations of the infrastructure in accordance with any subparagraph of Paragraph 1, Article 8.
The regulations for the policy evaluation under the preceding paragraph and the criteria for operating such evaulation shall be decided by the competent authority.

To build or operate any of the infrastructure projects in the manner specified in Subparagraph 3 of the first Paragraph of Article 8 hereof or acquire public services in accordance with the preceding article, the authority in charge shall, before implementation, submit its construction and financial plans to the Executive Yuan for prior approval or have the plans approved by the relevant local governments in advance, as the case may be, and appropriate the relevant budgets for the project through the budgetary process.
Where the competent authority acquires public services provided by a private institution in accordance with the preceding article, the authority shall appropriate the budget in accordance with the preceding paragraph, and shall tabulate in the budget document the budgeted funds and expenses for conducting the infrastructure project under the preceding article in the upcoming years.

The concession agreement between an authority in charge and a private institution shall specify the following matters, depending on the type of the project concerned:
1. The planning, building, operation and transfer of the infrastructure;
2. The bearing of the rental for the land, the royalties, and the relevant expenses;
3. The fare rate and the adjustment thereof;
4. The renewal of the agreement upon the expiration of the operation period;
5. The risk allocation;
6. The solution in case of poor construction or operation, and the step-in right of the related parties;
7. The auditing, construction control, and management of operation quality;
8. The dispute resolution mechanism, the arbitration clause, and amendment to or termination of the agreement; and
9. Any other agreed matters.

Unless otherwise specified in this Act, the rights and obligations between the authority in charge and the private institution shall be governed by the concession agreement and for matters not specified in the concession agreement, the relevant provisions under the Civil Code shall apply.
The parties shall, taking into account protection of the public interest, enter into the concession agreement on a fair and reasonable basis, and shall perform the concession agreement in good faith.