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

This case traces the evolution of Taiwan's high-speed rail on the project began in the late 1980's, until his financial problems in 2009, describing the planning effort, passenger forecasts, financial plans and cost-benefit analysis involved in the project, as well as the contracting process for the project . This project was one of the largest infrastructure projects in the world and one of the largest infrastructure projects ever built using a "public-private partnership" (PPP) - a method for the development of infrastructure, where the private sector will build and manage the project for several decades, and then transfer to the government. Nevertheless, in 2009, after two years of operation, Taiwan High-Speed ​​Railway Corporation (THSRC), the private consortium responsible for the construction and operation of high-speed rail system, was in deep financial trouble due to low passenger and the global economic crisis. Unable to repay principal on its bank loans, the President asked the THSRC meeting with the Minister of Transport and Communications of Taiwan to hand over a railroad to the government to work. THSRC requested compensation is set by an independent third party, as provided in the event of a government coup in the original government contract with the company. Readers question remains that the Minister of Transport and Communications of Taiwan should do in response to a request THSRC author. cases can be used in discussions on the management of public-private partnerships, procurement / contracts, as well as decision making. HKS Case Number 1910.0 "Hide
by Chung-Yuang Jan, Steve Kelman Source: Harvard Kennedy School 21 pages. Publication date: 05 Oct 2010. Prod. #: HKS671-PDF-ENG

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