TAIPEI (Taiwan News) — The Mailiao Industrial Complex, operated by Formosa Plastics Group, is under scrutiny for its controversial access to Taiwan’s water resources, with critics citing long standing inequities and lack of accountability in its water usage.
Established to help Taiwan achieve self-sufficiency in fossil fuel products, the complex receives water directly from the Jhuoshuei River via the Jiji Weir. This arrangement, supported by government policy, has provided the complex with significant advantages, including infrastructure investment and water rates roughly one-third the cost of standard industrial prices, per News&Market.
Additionally, during dry seasons, the complex is permitted to draw from agricultural water supplies, a practice that contradicts Taiwan’s stated water-use priorities and has sparked widespread criticism.
While the complex started paying market or near-market rates, including its out-of-pocket water treatment cost for industrial water, the structural issue of its access to agricultural water remains unresolved. Yunlin County Environmental Protection League Chair Chang Tzu-chien (張子見) noted that despite lacking the legal right to draw water during dry seasons, the Irrigation Agency continues to allocate water to the complex between February and May.
Chang explained that historically, irrigation water allocation was handled by a non-governmental organization, which was vulnerable to political and financial pressures. Now that responsibility has shifted to the central government via the Irrigation Agency, he argued that continuing such preferential treatment for the industrial complex is no longer justifiable.
Changhua Environmental Protection Union Director Shih Yueh-ying (施月英) emphasized that industrial use is the lowest legal priority for water allocation. News&Market suggested that the adoption of rotational irrigation practices during dry seasons is an indication that Mailiao is inappropriately tapping into water meant for agriculture.
Former National Council for Sustainable Development member Lin Sheng-chung (林聖崇) highlighted that water resource shortages compelled farmers in Yunlin to draw underground water, causing environmental damage, per Storm Media. Lin said that he argued against the industrial complex's development in 1993, citing the region's lack of water.
To alleviate the shortage issue, Chang proposed that companies be allowed to purchase agricultural water at market prices, which would fairly compensate farmers who opt to follow and allow others to maintain crop production.
During its fourth expansion phase, the Mailiao Industrial Complex was required to identify a new water source, with desalination being the only feasible option. While the complex committed to building a desalination plant capable of producing 10,000 metric tons of fresh water per day, construction remains delayed.
Shih criticized the delay, stating that Formosa Plastics could save up to NT$648 million (US$22 million) each year by continuing to draw water from the river rather than using desalinated water. She argued that the NT$300,000 fine imposed by the Ministry of Environment was grossly inadequate compared to the cost savings the company enjoys.
Taiwan Water Resource Conservation Union Chair Chen Chiao-hua (陳椒華) pointed out that the government grants the complex a daily water allowance of nearly 14,000 tonnes higher than its 2022 daily usage of 20,800 tonnes, reducing its incentive to complete the desalination facility, per UDN.
Water Resources Agency Deputy Director-General Wang Yi-feng (王藝峰) acknowledged the discrepancy and said the agency will reconsider the complex’s water allocation upon receiving updated data from Formosa Plastics, including the expected output of the desalination plant.
In response to questions about water allocation, Irrigation Agency Deputy Director Chen Yean-yuan (陳衍源) said the Water Resources Agency oversees distribution and that agricultural allocations are fair. When asked why farmers still rely on rotational irrigation or groundwater, he said such measures are necessary during dry seasons and noted that industrial use is outside his purview.
In defense of its delays, Formosa Plastics cited the COVID-19 pandemic and global conflicts. The company also argued that desalination is energy-intensive and environmentally harmful due to its carbon emissions.
Nevertheless, the group pledged to begin a test run of the plant by Sept. 30.
Chang, who formerly served as environmental compliance supervisor for the complex, claimed the announcement was made under public pressure. Based on past violations, he remained skeptical of whether the plant could achieve the promised output of 10,000 tonnes per day.
A joint report from the Environmental Rights Foundation and Friends of the Earth accused Formosa Plastics of repeated environmental violations, both in Taiwan and abroad.
