Process for Selecting a Developer for the Taipei Twin Towers Project Explained
Taipei City Department of Rapid Transit Systems (DORTS) Commissioner Richard C.L. Chen and Department of Legal Affairs Commissioner Tsai Li-wen co-chaired a press conference on February 23, 2013 to give an explanation of the process of selecting a developer for the Taipei Twin Towers Development Project. The main points were as follows: The selection process has been performed in accordance with all relevant requirements and procedures. However, the first priority developer forfeited the right to sign the contract by failing to furnish a NT$1.898 billion performance bond as per relevant regulations. In accordance with the regulations, DORTS confiscated a guarantee bond totaling NT$130 million; meanwhile, DORTS is to negotiate with the second priority developer following the same strict standards and procedures.
DORTS conducted the developer selection procedures prudently. All applicants were not only requested to submit financial documents verified by certified accountants, DORTS also entrusted China Credit Information Service Ltd. and Dun & Bradstreet Taiwan to independently conduct assessments and credit checks of the applicants' finances. The credit investigation showed that the three applicants have almost the same financial strength. In addition, their financial capability met the requirements stipulated in the project's selection regulations. The selection items include development planning, finance, and operations.
The soliciting of developers for the project on Parcel C1/D1 in Taipei Main Station District was conducted in accordance with the selection regulations. Only teams (consortia) were permitted to participate in the selection and each individual was required to sign a Letter of Intent that expressed a willingness to bear joint and individual responsibilities. The Evaluation Committee, consisting of 17 members including six representatives from the Taipei City government, met on October 28, 2012 to decide the bidder priority for contract negotiations.
Taipei City Government has no right to intervene directly and has no idea why the consortium led by Taipei Gateway International Development, the priority developer, failed to furnish the performance bond within the given period. It is possible that no agreement was reached among the consortium partners regarding their precise rights and obligations or there is some other reason.
Both DORTS Commissioner Chen and Department of Legal Affairs Commissioner Tsai fully understood their responsibilities and never shirked their duties at any stage.