• ISSN: 2010-3646
    • Frequency: Bimonthly (2011-2014); Monthly (Since 2015)
    • DOI: 10.18178/IJSSH
    • Editor-in-Chief: Prof. Aurica Briscaru
    • Executive Editor: Mr. Ron C. Wu
    • Abstracting/ Indexing: Google Scholar, Index Copernicus, Crossref, Electronic Journals Library
    • E-mail: ijssh@ejournal.net
IJSSH 2018 Vol.8(6): 192-199 ISSN: 2010-3646
doi: 10.18178/ijssh.2018.V8.959

Evaluation of the Financial Feasibility of Restoration and Reusing the Sugar Industrial Heritage Site –A Comparison among BOT, ROT and OT Concession Frameworks

Lee Duu-Hwa, Lin Ching-Ching, Lin Hui-Wen, and Hsu Min-Fu
Abstract—This study utilizes engineering economics/cost-benefit analysis with comprehensive cost and revenue estimations to evaluate the short-term and medium-term financial feasibility analysis of restoration and reuse of the Sugar Railway Park Industrial Heritage Site in Taiwan, and also compares different entrusted operation and management such as combination of BOT, ROT and OT and solely OT concession frameworks. Results reveal that the Park's short-term and medium-term NPV of combination of BOT/ROT/OT framework is USD 7.24 million and USD 43.99 million, SLR is 463.81% and 1800.65%, project ERR is 16.05% and 15.45% at an interest rate of 3.5%, which implies that it can fully cover its own expenses, make profit, which indicates the attraction of this investment to the Sugar Company. Results also describe that the project is financial infeasible when adopting solely OT concession method. The financial performance of the Park is sensitive to discount rate. The Park not only generates economic value, conserves precious cultural and industrial heritage of past sugar cane cultivation history in Tainan, and provides value of experience tourism for visitors, long-term care, healthy life, promotes concepts of the circular economy which are the comprehensive social value of local and global people at the historical city in Taiwan.

Index Terms—Sugar railway, industrial heritage conservation, cultural creative park, restoration and reuse, circular economy.

Lee Duu-Hwa and Lin Ching-Ching are with the Institute of Applied Economics, National Taiwan Ocean University, Taiwan (e-mail: dhlee@mail.ntou.edu.tw. sunny125964@gmail.com).
Lin Hui-Wen is with the Institute of Creative Industries Design, National Cheng Kung University, Taiwan (e-mail: hwlin@mail.ncku.edu.tw).
Hsu Min-Fu is with the Department of Architecture, National Cheng Kung University, Taiwan (e-mail:z7510004@email.ncku.edu.tw).

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Cite: Lee Duu-Hwa, Lin Ching-Ching, Lin Hui-Wen, and Hsu Min-Fu, "Evaluation of the Financial Feasibility of Restoration and Reusing the Sugar Industrial Heritage Site –A Comparison among BOT, ROT and OT Concession Frameworks," International Journal of Social Science and Humanity vol. 8, no. 6, pp. 页码, 2018.

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