TAIPEI (Taiwan News) — A state-owned printer will charge the government an additional NT$202 million (US$6.27 million) in maintenance fees for the suspended digital ID program.

Due to the indefinite suspension of the digital ID card program, the Central Engraving and Printing Plant said the increased costs for materials, manpower, and utilities during the postponement period will be billed to the Ministry of the Interior (MOI) every six months, reported CNA. From January 2021 to the end of December 2023, the appropriated expenses amounted to NT$202 million.

In 2021, the Cabinet temporarily suspended the digital ID card initiative. The Legislative Yuan's Internal Administration Committee recently approved the "Operational Guidelines for the Digital ID Card Replacement Policy and Budget Implementation Review Task Force," which will operate from April 17 to May 31, with Independent Legislator May Chin (高金素梅) serving as convener.

On Wednesday, the Interior Administration Committee inspected the Central Engraving and Printing Plant to inspect the new ID card printing facilities and maintenance management. According to the briefing from the factory, in June 2019, they received a commission from the MOI to produce "Digital Identity Cards" and anticipated completing the comprehensive replacement within 2.5 years after the program commenced.

The factory said that in February 2020, they completed the bid for the PC chip card and printing equipment B-type project and signed a contract with TECO Electric & Machinery Co. Ltd. From June to August of the same year, they completed the procurement of peripheral equipment and the renovation of factory premises, and equipment inspection was completed in December. 

However, on Jan. 21, 2021, the Cabinet decided to temporarily suspend the new ID card project.

The factory said that on Feb. 24, 2021, the MOI requested the plant report the increased costs during the contract suspension every six months. On Oct. 3, 2022, TECO Electric & Machinery Co. filed for dispute mediation with the Cabinet's Public Construction Commission (PCC), and mediation was established on Jan. 19, 2024.

The factory explained that the card production area adopts independent control, ensuring the entire process is confidential, with multiple access control points and continuous video surveillance. The first floor houses the MOI's office, semi-finished and finished goods warehouses; the second floor is for card inspection, packaging, and boxing operations; and the fourth floor is for card personalization operations, inspection area, and computer room.

The factory noted that funds have been allocated every six months, and from January 2021 to the end of December 2023, the allocated funds amounted to NT$202 million.

In 2018, the government announced it would replace traditional paper-based identity cards with electronic identification cards (eID) at an estimated cost of NT$4.89 billion over 10 years. The cards were originally scheduled to be issued in 2020 but were postponed due to the COVID-19 pandemic and were ultimately suspended in 2021 amid concerns of increasingly sophisticated cyberattacks.

Suppliers last year asked for NT$1 billion in compensation from the government, but only after six rounds of negotiations in January, the PCC said an agreement had been made. In March, the final amount agreed to be paid to contractors was set at NT$280 million, reported Storm Media.