Selling to the Government
Taiwan acceded to the World Trade Organization’s (WTO) Government Procurement Agreement (GPA) in July 2009. According to Taiwan’s GPA Agreement, U.S. firms will compete on equal terms with domestic firms when Official tenders exceed the following thresholds:
Central Officials contracts: US$194,000 for goods and services and US$7.5 million for construction services.
- Municipal Officials contracts: US$296,000 for goods and services and US$7.5 million for construction services.
- Other State-owned entity (public utilities, public universities etc.) contracts: US$593,000 for goods and services and US$7.5 million for construction services.
In response to foreign companies’ concerns about maintaining fairness in contractual obligations, Taiwan’s Public Construction Commission (PCC) has prepared a model contract template as a reference for official procuring entities which can be found on the Taiwan Public Works Commission’s website. The conditions in this model contract are the same for all bidders, domestic or foreign.
The best public sector procurement prospects identified for U.S. firms are in the following sectors:
Advanced laboratory instrumentation and testing devices
Equipment for power generation & environmental protection (such as carbon sequestration systems)
Substation and power management system
Specialty chemicals such as additives and catalysts
Equipment for aviation controls
Equipment for atmospheric monitoring
Advanced medical devices.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
Financing of Projects
Project financing in Taiwan typically involves a combination of equity and debt arranged through commercial banks, government-backed institutions, and, in some cases, foreign investors. The model is widely used for large-scale infrastructure and energy projects, including power generation, transportation, and renewable energy. Domestic banks—such as Bank of Taiwan, Mega Bank, and CTBC Bank—are major players in project financing, often leading syndicated loans. Foreign banks also participate, especially in renewable energy projects.