The ruling Kuomintang (KMT) has called for another financial restructuring plan for the Taiwan High Speed Rail Corporation. The KMT made the announcement Friday after the previous proposal failed to clear the legislative floor earlier this week.
The Taiwan High Speed Rail Corp. had accumulated losses of more than NT$52 billion (about US$1.6 billion) at the end of 2013. The proposed restructuring plan would allow the company to save an estimated NT$7.1 billion a year. It would also extend the company's operating rights from 35 to 40 years. But the plan was rejected across party lines at the legislature on Wednesday.
The ruling party caucus suggests the transportation ministry make some adjustments to the original plan and submit it to the legislature by the start of the next review session. Without a financial overhaul, the company could face bankruptcy as early as March.
Transportation Minister Yeh Kuang-shih and the chairman of the Taiwan High Speed Rail Corp. both offered their resignations this week after the plan failed to pass legislative review.