The Ministry of Economic Affairs stated that state-owned enterprises shoulder the important responsibilities of national development and people's livelihood and welfare. Various investments are essentially public and public welfare national infrastructure construction. The core value lies in strengthening the resilience of the country's overall energy and infrastructure, and is not the sole purpose of pursuing commercial profits. (File photo)
[Reporter Liao Jianing/Report from Taipei] Media reports stated that the state-owned enterprises under the Ministry of Economic Affairs invested 484.3 billion yuan in oil, electricity, sugar and water, and 12 projects suffered serious losses. The Ministry of Economic Affairs stated today (12th) that state-owned enterprises shoulder the important responsibilities of national development and people's livelihood and well-being. Investment in national infrastructure is essentially public and welfare. The core value lies in strengthening the resilience of the country's overall energy and infrastructure. It is not the sole purpose of pursuing commercial profits. Relevant projects have also undergone rigorous benefit evaluation and external benefit consideration.
The Ministry of Economic Affairs explained that among the 12 project plans of its affiliated enterprises, China National Petroleum Corporation's project includes a number of natural gas investment plans including the third receiving station. The plan has the external benefit of stabilizing domestic natural gas supply and improving safety stocks. As for the Dalin Petrochemical Oil Storage and Transportation Center investment plan, it is in line with energy conservation and carbon reduction policies. The Qianzhen Storage and Transportation Station and the petrochemical terminals and storage tanks scattered in Kaohsiung's old port area and adjacent to the urban area will be relocated and managed centrally.
The Ministry of Economic Affairs continued that the two projects, including Taipower Corporation's offshore wind power strengthening power grid, are to implement the offshore wind power policy and have the benefit of promoting the development of domestic offshore wind power related industries. The Nanke ultra-high voltage substation expansion plan can increase the power supply capacity and power quality of the Southern Science Park. The Wushe Reservoir anti-siltation project plan can improve the flood drainage and anti-siltation capabilities of the reservoir, which will benefit the water stability of life and industry in the central region. It will also increase agricultural output value and tourism.
Taiwan Water Company's three water supply plans can improve water supply efficiency and pipe network resilience; as for Taiwan Sugar Company's biomass energy center investment plan, it is in line with the policy to promote a complete ban on food waste pig farming from 116 years on, assisting the resource and energy use of food waste, reducing environmental impact, and improving Increasing domestic biomass power generation capacity can take into account policy goals such as animal epidemic prevention, environmental sustainability and energy transformation. "Although it does not have financial investment benefits, it still has external environmental and social benefits such as helping to deal with domestic food waste and increasing biomass energy development of renewable energy."
Reports indicate that up to 80% of the funding for 67 projects relies on borrowings or government capital increases. The Ministry of Economic Affairs emphasized that in response to the international situation and price fluctuations, the undertakings fully exert their key functions of stabilizing prices and taking care of people's livelihood, but they also pay high costs. CNPC and Taipower cannot reflect costs at any time according to market conditions like private companies. The long-term freeze in oil, gas and electricity prices has led to an increase in their accumulated losses. This has also caused a lack of own funds in each enterprise, affecting their investment capabilities. They can only rely on debt or government capital increases.
