25 August 2021
In order to reduce the risk of infection and help promote private participation in public construction (referred to as participation promotion), the Ministry of Finance issued a letter dated May 28, 110, Taiwan Finance Promotion No. 11025513690, "Responding to Severe Special Infectious Pneumonia" COVID-19) The Flexible Adjustment Measures of the Organizing Organs for Promoting Participation Cases of the Epidemic", as a reference for the organizing organs for promoting participating cases to handle related operations. The content mainly includes the following:
1. Feasibility assessment:
1. The report review may be changed to a video conference.
2. For non-urgent cases, when the epidemic situation has not reached the third level of alert, small-scale public hearings shall be conducted in stages.
3. When the public hearing is postponed, if the organizer entrusts a professional consultant contract with a feasibility assessment deadline, it can be handled in accordance with the force majeure or exclusion in the procurement contract, and there is no overdue breach of contract.
2. Advance planning:
The organizer may include the following relief measures in the draft investment contract of the investment promotion document as remedial measures in the chapter on force majeure and exclusions:
1. The installment, postponement or reduction of land rent and royalties;
2. Calculate during the period of suspension of construction and operation;
3. Appropriately extend the construction and operation period according to the circumstances;
4. Private organizations that have been rescued should give appropriate feedback to affiliated manufacturers or users of public construction services.
3. Announcement and investment promotion:
1. Document subscription can be provided electronically, and the subscription period may be extended by an announcement.
2. The investment promotion briefing can be made by private investors by video or in writing.
3. Before the expiration of the announcement period for investment promotion, the deadline for receipt may be extended depending on the epidemic situation; if the case has not been announced, the organizer may postpone or revoke the announcement if the case has not been announced, and the applicant's investment willingness may be seriously affected by the epidemic. Line announcement.
4. Screening:
The comprehensive review meeting may be handled by video, but the principle of confidentiality and fairness should be paid attention to.
5. Negotiation and signing:
1. To be able to exchange opinions in writing, and then hold a physical meeting or do it by video.
2. The host organization considers the epidemic situation to be a special situation, and may extend the negotiation period, optimal applicant preparation and signing period.
3. If the original draft investment contract does not have any adjustment measures in response to the epidemic, it may be agreed that the contractual terms of the relief measures shall be agreed upon by both parties within a certain period of time.
6. During the performance of the contract:
In response to the epidemic, private organizations may discuss relief measures with the host organization in accordance with investment contracts or civil regulations:
1. The installment, postponement or reduction of land rent and royalties;
2. Calculate during the period of suspension of construction and operation;
3. Appropriately extend the construction and operation period according to the circumstances;
4. Private organizations that have been rescued should give appropriate feedback to affiliated manufacturers or users of public construction services.
Regarding the contract that is being performed, the Ministry of Finance has also stated [1] that private organizations can use the investment contract to contact the sponsor to apply for the above relief measures. The detailed description is as follows:
1. Regarding "Reduction, Exemption or Approval of Postponement of Payment of Rent Payable", in accordance with Article 4 of the "Measures for Promoting Private Participation in Public Construction Public Land Lease and Setting Superficial Rights Rent Preferences" amended on May 7, 109, due to infectious diseases or other major causes If a force majeure event such as a disaster affects the construction or operation, the organizer may reduce or exempt or approve the payment of rent due at its discretion.
2. Regarding the "extension of construction and operation period", the calculation method of the extension period is provided in the annex to the letter No. 11025506050 of the Ministry of Finance dated March 11, 110:
(1) If a private organization makes a request to extend the operating period, it may submit a financial report income statement with an accountant’s visa, self-settled financial statements or financial statements for 12 consecutive months since the month of the epidemic as the reference value of the extended operating period. Calculate the annual profit and loss situation.
(2) Calculate the extension of the operating period, with the goal of maintaining the original profitability level of private organizations under normal circumstances, and the number of years rounded up during the implementation of the relief regulations, which is the minimum threshold for the extension of the operating period, and it is recommended It is more appropriate to take a complete year as the minimum number of units to extend the operating period.
(3) The principle of extending the operating period shall not exceed the operating period of the original contract. The starting date of the extended operating period shall be calculated from the day after the expiry of the operating period agreed in the original contract.
For further information, please contact:
Hong Kunzhe, Lee Tsai & Partners
lawtec@leetsai.com
[1] https://www.mof.gov.tw/covid19/singlehtml/1ec3fb3d866
d4409bd2ba6720c27ba83?cntId=6ad1aa1bc2aa4912b1d0e38b119adcfe
