Abstract
To coordinate with the government in reviewing the first phase in privatization
of water industry is deregulation, this research is taken by Taiwan Water Supply
Corporation and Taipei Water Department as objects to probe into “Feasibility
Study on Deregulation of Public Water Industry Market in Chinese Taipei”. The
former one is under the command of state-operated corporation, and the other
is subordinate to Taipei Municipal Government. Taipei Water Department will
require the approval of Taipei City Council on this matter, and water industry
belongs to local public affair; as far as its benefits is concerned, unlike
Taiwan Water Supply Corporation is in financial deficits, Taipei Water Department
is unwilling to participate in reforming the structure of the market. According
to the experiences from other country, for instances, British enterprise is
the only water supplier that sells in large quantities to the whole nation and
brings privatization into effect. Other countries like USA, Australia, and Japan
do not yet, but they adopt the measures such as BOT (Build-Operate-Transfer)
or the collaboration of government and local people operating together to increase
the operating efficiency and quality of service, and reduce the expenditure
of the government.
The upper courses of water industry (water resources development) are mainly
operated by the government, but the mid and lower courses could be leaded to
BOT, which is the collaboration between the government and private companies,
or BOO (Build-Own-Operate). However, the requirement is that the water industry
must consider making the water price reasonable as their first mission in deregulation.
In addition, according to Article 13 of Water Supply Law, the analysis of the
basin of water sources and economic scale should be taken into consideration,
and the plan of domestic regional operation should be reviewed so as to improve
the mechanism of competition. For short and mid term, local water industry should
either review and expand the scope of the business authorized to private companies,
or advance the BOT system, or the government should cooperate with private companies,
drawing up the relevant means of management and supervision, and in the end
deciding the timing of promoting privatization depending on the effects.