Build, Operate and Own (BOO) Hsinchu Refuse Incineration Plant Project was executed by Hsinchu County Government under EPA’s Policy of Encouraging Institution to Build, Operate and Own
or Transfer (BOO/BOT) Refuse Incineration Plants. Hsichu CountyGovernment awarded the Project to Sinkong Envirotech Corp. whoshould be responsible to site acquirement, construction, and own the Plant since receiving the Notice of Award, and then operation of the Plant for 20 years after the Operation Date. However, due toPolicy amendment of the Executive Yuan, the Project was terminated on March 15, 2006, which incurred contract issue to be solved by the assistance of EPA in equipment appraisement and law services.
In the part of appraisement, the suggested indemnification of damages is NT$ 350,539,184 which is about 34% of what Sinkong claimed and excludes the amount of expected profits. Among the
damages, there are turnkey cost of NT$ 239,979,208, land cost of NT$ 62,189,851, bid preparation cost of NT$ 6,617,616,construction preparation cost of NT$ 20,040,800, and financial
cost of NT$ 21,711,709.In the part of law services, EPA endeavored herself to carry
out possible procedures of arbitration and administration in the same time for pursuimg a favorable judgement to the Government.
However, according to the final court verdict, arbitration results are still valid. Hsichu County Government shall compensate Sinkong for damages of NT$ 571,555,902, with additional interest of NT$ 62,936,395 which has deducted by 2 months through a negociation. A half of arbitration fee of NT$ 8,286,767 shall also
be disbursed. Followed by the approval of Executive Yuen, EPA transferred the amounts to Hsinchu County Government on April 27 and June 29, 2009, and Sinkong Envirotech Corp. finallyreceived the amount on May 7 and July 28, 2009 from Hsinchu County Government