1. TAOYUAN ENVIRONMENTAL SCIENCE & TECHNOLOGY PARK BUSINESS INVITATION SEMINAR PRESENTATION OF PREFERENTIAL MEASURE & COUNSELING ENVIRONMENTAL PROTECTION ADMINISTRATION, EXECUTIVE YUAN May, 2005

2. 2005/05/05EPA, Executive Yuan2/16 CONTENTSCONTENTS Introduction Introduction Land lease subsidy Land lease subsidy Production subsidy Production subsidy Research subsidy Research subsidy Counseling & investigation Counseling & investigation Conclusions Conclusions

3. 2005/05/05EPA, Executive Yuan3/16 INTRODUCTIONINTRODUCTION Distinguishing features of the Park Distinguishing features of the Park  Low-pollution exhausts → Integrate the industries to reduce the total pollution.  Resources recycle for re-utilization → Promoting industrial ecologicalization for waste reduction & eco-recycle.  Combining research with industry → Leading the industry by research & driving the research by industry.  Ushering technologies & human resources → Promoting production efficiency to create high economic benefits. Subsidies of Environmental Science & Technology Park Subsidies of Environmental Science & Technology Park  Land lease subsidy  Production subsidy  Research subsidy

4. 2005/05/05EPA, Executive Yuan4/16 土地租金補助費土地租金補助費 ItemsDescriptions Contents of the subsidies According to the actual land leased or purchased by the stationed business in the park According to the actual land leased or purchased by the stationed business in the park The subsidy is calculated based on the 50% of the leasing price The subsidy is calculated based on the 50% of the leasing price From the time that the land title has been transferred to 2011 From the time that the land title has been transferred to 2011 Grant appropriation Purchasing → divided into 2 payments Purchasing → divided into 2 payments Leasing → subsidy payment made annually Leasing → subsidy payment made annually

5. 2005/05/05EPA, Executive Yuan5/16 AppropriationProcedure LAND LEASE SUBSIDY - PURCHASING The subsidy is calculated based on the 50% of the leasing price for the actual land area leased till 2011. The subsidy will be appropriated into 2 installments. Submit the application form for the subsidy & land purchasing contract Reviewed by the Authority in charge EPA sanction First payment (50% of the total) First payment (50% of the total) Submit the application form for the subsidy & the building occupancy permit Reviewed by the Authority in charge EPA sanction Second payment (50% of the total) Second payment (50% of the total) Grant Appropriation Approved

6. 2005/05/05EPA, Executive Yuan6/16 AppropriationProcedure LAND LEASE SUBSIDY – LEASING The subsidy is calculated based on the 50% of the leasing price for the actual land area leased till 2011. The subsidy will be appropriated annually. Grant Appropriation Submit the application form for the subsidy & land leasing contract Reviewed by the Authority in charge EPA sanction Appropriate the annual subsidy Every October of the year same procedure applicable to every year Approved

7. 2005/05/05EPA, Executive Yuan7/16 PRODUCTION SUBSIDY ItemsDescriptions Contents of the subsidies 10% of the initial capital of the factory as in principle 10% of the initial capital of the factory as in principle NT$ 25 million as the ceiling of a 5-year appropriation program with a maximum annual appropriation of NT$ 5 million NT$ 25 million as the ceiling of a 5-year appropriation program with a maximum annual appropriation of NT$ 5 million Till 2010 Till 2010 Essential qualification for the subsidy The conversion standard is the listed design capacity of the Station Application Form The conversion standard is the listed design capacity of the Station Application Form The production capacity reaches 80% of the design capacity The production capacity reaches 80% of the design capacity Timing for the application While the monthly production capacity reaches 80% of the monthly averaged annual design capacity

8. 2005/05/05EPA, Executive Yuan8/16 PRODUCTION SUBSIDY – Identified items of the initial capitalization (1) Items Contents I. On-site plant building construction cost. II. Plant equipments i. Electricity, i.e. lighting, emergency power supply, special power supply, emergency broadcasting system, etc. ii. Water, sewerage, & sanitary system, etc. iii. Fire protection system, auto-sprinkler system, etc. iv. Furnace equipments, i.e. gas fired equipments & boiler, etc. v. Air conditioning, ventilation, & smoke exhausting system, etc. vi. Elevators, & service elevators, etc. III. Anti-corrosion practice for the machinery & equipment IV. The equipments to enhance the production chain for the purpose of the ecologicalization. Factory establishment

9. 2005/05/05EPA, Executive Yuan9/16 PRODUCTION SUBSIDY – Identified items of the initial capitalization (2) ItemsContents I. Facilities on the production line, including the automation equipments. II. Software specifically purchased for the production purposes. III. The material & product for transportation which is needed for operating purposes, i.e. moving vehicle & truck. IV. The investment on the resources recycling equipments or the purchasing of pollution prevention equipments and technologies for self application purposes. V. Energy saving or clean energy utilization equipments i. Energy saving equipments for processing ii. Energy saving equipments for public utility iii. Energy recovering equipments iv. Monitoring equipments for energy saving purposes v. Peak shifting equipments for power consumption vi. Application equipments for new & clean energy vii. Other equipments applicable to the use of the new & clean energy VI. Consumptive materials & raw materials are excluded. Technology Technology acquired by the business as needed for the production Manufacturing facilities

10. 2005/05/05EPA, Executive Yuan10/16 The production capacity of the stationed business reaches 80% of the design capacity PRODUCTION SUBSIDY APPROPRIATION PROCEDURE Submit the application form & relevant documents for reviewed by the Authority in charge EPA sanction Appropriate the subsidy of the first year Submit the application form to be reviewed by the Authority in charge on February EPA sanction Appropriate the annual subsidy Second to the fifth year Appropriation is divided in 5 years with the ceiling of NT$ 5 million for each year. For those subsidy less than NT$ 5 million, it will be appropriated in one installment. The application will be ended by December 31st, 2011. Grant Appropriation AppropriationProcedure Approved

11. 2005/05/05EPA, Executive Yuan11/16 RESEARCH SUBSIDY ItemsDescriptions Qualifications for application Stationed business/research institution Stationed business/research institution Stationed business/research institution cooperate with other industry, academic or research institution Stationed business/research institution cooperate with other industry, academic or research institution Subsidies R&D for new product / new technology, preliminary R&D or test run R&D for new product / new technology, preliminary R&D or test run In principle, the subsidy is 50% of the applied funding In principle, the subsidy is 50% of the applied funding Preliminary research & development Research phase in laboratory scale Research phase in laboratory scale NT$ 5 million is the ceiling of each project NT$ 5 million is the ceiling of each project In principle, 10 projects will be funded every year In principle, 10 projects will be funded every year Test run With research achievement report & proceed to the experimental plant phase With research achievement report & proceed to the experimental plant phase NT$ 10 million is the ceiling of each project NT$ 10 million is the ceiling of each project In principle, 5 projects will be funded every year In principle, 5 projects will be funded every year Subsidy time limit In principle, the execution time limit is one year with the extension for another year as needed In principle, the execution time limit is one year with the extension for another year as needed September 1, 2005 till September 30, 2009 September 1, 2005 till September 30, 2009

12. 2005/05/05EPA, Executive Yuan12/16 Business/institution submit the application paperwork Appropriate 60% of the approved subsidy Approved Reject Supplements or amendment of authority in charge Supplements or amendment of authority in charge Notification for supplements or amendmentNotification amendment Reject EPA sanction Reviewed by Authority in charge Reviewed by Authority in charge Reviewed by Authority in charge Reviewed by Authority in charge Reject EPA sanction Approved Business/institution accomplish research program Notification for supplements or amendmentNotification amendment Reject Supplements or amendment of authority in charge Supplements or amendment of authority in charge Approved Appropriate 40% of the approved subsidy APPLICATION PROCEDURES OF THE RESEARCH SUBSIDY In principle, the appropriation will be divided into two stages. The first stage will appropriate 60% of the approved subsidy. The second stage will appropriate 40% of the approved subsidy. Grant Appropriation AppropriationProcedure

13. 2005/05/05EPA, Executive Yuan13/16 COUNSELING & INVESTIGATION (1) Subsidy contract of the Environmental Science & Technology Park March 31st, 2005 Terms & conditions of the subsidy Quarterly progress report Evaluation Contract termination Assistance to the stationed business

14. 2005/05/05EPA, Executive Yuan14/16 COUNSELING & INVESTIGATION (2) Goals Enhance the operating & management efficiency Assistance to the application of the subsidy Legal & technical counseling Items Counseling to the plant establishment Application for the subsidy Progress of the operation Production & technical counseling Pollution prevention plan Counseling to the eco- benefit Integrity of the financial planning

15. 2005/05/05EPA, Executive Yuan15/16 CONCLUSIONSCONCLUSIONS The government will provide various resources and favorable measures to promote the green industry & technology and to enhance the resources recycling & re- utilization in order to achieve the zero waste of the ecologicalization of the park. The government will provide various resources and favorable measures to promote the green industry & technology and to enhance the resources recycling & re- utilization in order to achieve the zero waste of the ecologicalization of the park. The EPA and the County will assist the stationed businesses for their obtaining of the materials and selling of the products with the continuous efforts on legal issues and counseling for the stationed businesses. The EPA and the County will assist the stationed businesses for their obtaining of the materials and selling of the products with the continuous efforts on legal issues and counseling for the stationed businesses.

16. 2005/05/05EPA, Executive Yuan16/16 END OF PRESENTATION to your Success & Prosperity to your Success & Prosperity BestWishesBestWishes