The Statute is enacted to encourage private participation in transportation infrastructure projects, upgrade the level of service in the transportation and enhance social economic development.

Encouragement of private participation in transportation infrastructure projects shall be governed by provisions in the Statute. For matters not provided herein, other relevant laws shall govern.

The competent authorities specified in this Statute include: the Ministry of Transportation and Communications; the authorized municipal government in the municipality; the county (city) governments in the county (city). Matters provided herein involving functions of competent authorities having primary jurisdiction over the enterprises shall be handled by the competent authority in conjunction with the competent authority having the primary jurisdiction over the enterprise concerned.

The private entity referred to herein shall be defined as a company established under the Company Law and if it has investment or donation from the government or any state-owned enterprises, the total amount of such equity investment or donation shall not exceed twenty percent (20%) of the total capital or the total assets of the private institution.
In the case of private organizations participating in construction and operation of the Taiwan North-South High Speed Rail Project, the total amount referred in the preceding paragraph shall not exceed fifty percent (50%) of the total capital or the total assets of the private institution.

The encouragement under this Statute shall be limited to building and operating the following categories of transportation infrastructure projects:
1.Railways
2.Highways
3.Mass Rapid Transit System
4.Airport Terminals
5.Harbors and Related Facilities
6.Parking Lots
7.Major Tourism and Recreation Facilities
8.Bridges and Tunnels

Participation of private entities in the transportation infrastructure projects referred to in the preceding Article is limited to the following manners:
1.To invest in the building and operation of a government-planned transportation infrastructure project approved for private participation, either in whole or in part.
2.To invest in the operation of a government-built transportation infrastructure project approved for private participation, either in whole or in part.
3.To invest in the building and operation of an approved private-planned transportation infrastructure project.

The competent authority may, depending on the feature of each transportation infrastructure project and basing on the principle of fair competition, allow a private entity to operate a transportation infrastructure project within a prescribed period and collect royalty from said entity.
Matters relating to royalty collection referred to in the preceding Paragraph shall be expressly provided for in the relevant investment agreement.

For building any of the transportation infrastructure projects referred to in Article 5, the competent authority may build a transportation infrastructure project with fund provided by business firms and reimburse the same in installments after completion thereof.
The competent authority which intends to build a transportation infrastructure project in the manner referred to in the preceding Paragraph, must submit its construction and financial plans to the Executive Yuan for prior approval, or have the plans approved by the local government concerned and appropriate the budgets for the credit and construction project through normal budgetary process to effect project contracting and construction accordingly.
If the project contracting and construction referred to in the preceding Paragraph has been estimated and examined by government authority in charge of said project, the credit and construction project of the estimated and examined portion shall be deemed executed.
The business firm referred to in Paragraph 1 shall mean a government or private enterprise established by law.