Taiwans High-Speed Rail: Public-Private Partnership Hits a Speed Bump Case Solution

This case describes the evolution of the track at high speed of entry into force of Taiwan in the late 1980s, until their financial problems in 2009 that describes the planning efforts, projected ridership, financial planning and analysis costs and benefits involved in the procurement process of the project and for the project. This project was one of the largest infrastructure projects in the world and one of the largest infrastructure projects ever built, by means of a “public-private partnership” (PPP) – a method for infrastructure development to the private sector build and operate a project for several decades and then transfer ownership to the government. However, in 2009, after only two years of operation, Taiwan High Speed ​​Rail Corporation (THSRC), responsible for the construction and operation of high-speed rail system, private consortium was in serious financial trouble due to poor number of passengers and the global economic crisis. Unable to pay the principal of its bank loans, THSRC president requested the meeting with the Minister of Transport and Communications of Taiwan put the government asking train to work. THSRC requested that the compensation awarded by an independent third party, as established in the case of a takeover of the government in the initial government contract with the company. Readers are left with the question of what the Taiwanese Minister of Transport and Communications should do in response to the request for THSRC. The case can be used in class discussions on the management of public-private partnerships, public procurement / markets, and decision making. Number HKS case 1910.0
by
Chung-Yuang Jan
Steve Kelman
Source: Harvard Kennedy School
21 pages.
Release Date: October 5, 2010. Prod #: HKS116-PDF-ENG
The high-speed train in Taiwan: A public-private partnership Hits a speed Bump Case Solution

Taiwans High-Speed Rail: Public-Private Partnership Hits a Speed Bump Case Solution
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