TAIPEI (Taiwan News) — State-owned CPC Corporation is facing allegations of budget inflation in the construction of its Guantang LNG terminal in Guanyin District, Taoyuan.
In response to environmental protests, CPC had agreed to move the terminal’s LNG receiving dock farther offshore to reduce impacts to local coral reefs, per Mirror Media. However, Mirror Media cited recordings of individuals familiar with the negotiation process who claimed that CPC executives pressured external evaluators to repeatedly increase the project’s cost estimates.
Industry sources reportedly estimated the project cost at NT$9.4 billion (US$290 million), but external cost estimates, initially around NT$12.2 billion, allegedly rose to NT$25.3 billion after repeated revisions. According to the report, a CPC executive allegedly reprimanded the evaluators for lacking “business acumen” when earlier estimates were considered too low.
The LNG dock project has also reportedly faced workplace safety incidents, and the construction firm involved is said to have ties to former Taipei Mayor Ko Wen-je (柯文哲), per Mirror Media.
CPC Corporation denied the allegations, saying the bidding process followed proper procedures, per RTI. The company said the first bid at NT$25.3 billion failed due to insufficient bidders, and that Hwang Chang Construction later won the second bid.
CPC added that all actions related to both bidding rounds complied with existing laws and regulations, and that no complaints were filed with either CPC or the Public Construction Commission.
Hwang Chang Construction also denied wrongdoing, saying it adhered to all relevant laws, per EDN. The company suggested that reports about alleged irregularities could be politically motivated, coming as the fourth LNG terminal project prepares for bidding.
Economic Affairs Minister Kung Ming-hsin (龔明鑫) echoed CPC’s defense, saying the procurement process complied with the law. However, he said that since new evidence has emerged, the ministry’s ethics unit will launch an investigation, per Tai Sounds.
