This project has compiled the operations of agencies at various stages in handling the participation of public construction by private institutions, and prepared an overview of related cases in Taiwan as well as planning methods should such a subsidy program be adopted. The project organizers completed an evaluation report for the preliminary work on November 30, 2021, and proposed the positioning of public construction, an analysis on the legitimacy of promoting private participation in public construction, a market survey for recycling, a preliminary project planning for recycling, a feasibility report of relevant subsidies, and an environmental impact analysis (including pre-assessment) from the perspective of private participation. In addition, information such as domestic and foreign sources of lubricating oil waste, recycling prices and costs, recycling and refining technologies, and construction and operating costs of refineries were collected. The feasibility assessment for the construction of the recycling plant on the site designated by the agency (No. 106 and 107, Dagang Section, Nangang Industrial Park, Nantou) was carried out in compliance with the “Act for Promotion of Private Participation in Infrastructure Projects.” According to the assessment, since the area available for the recycling plant construction is only 0.7 hectares, which is insufficient for supporting the economies of scale required for building the plant, the construction is not recommended. Furthermore, based on the results of the comprehensive land evaluation, considering that the agency lacks suitable land, it is difficult to implement this project through the BOT model. Therefore, it is recommended that a BOO model be adopted first, and that follow-up matters be handled in accordance with Article 46 of the “Act for Promotion of Private Participation in Infrastructure Projects.” An opinion exchange meeting for potential investors has been held. Although the investors showed interest, they still have some concerns. Factors that affect the decisions of potential investors include the stability of the sources, the competition between renewable fuel oil companies, the channels for selling base oils, etc. In addition, suggestions to increase the willingness of investment were proposed, which include revising laws and regulations to set future treatment methods for waste lubricating oil, stabilizing subsidy rates, and subsidizing regenerated base oils with differential rates. This project takes into account the needs of the agency, the conditions for constructing the plant, and the opinions of potential investors to formulate the policy announcement for this project: “The BOO Project for the Construction and Operation of Base Oil Refining Plant Conducted by Private Institutions” (draft).

high-value products, BOO, feasibility assessment