The administration promulgated the Urban Renewal Act in November 1998, which initiated the era of formal legislation for urban renewal. In 2009, the central government established the "central urban renewal fund” in order to assist local governments advancing urban renewal projects, and to coordinate the building of a public-private partnership to further participation from private sectors. However, the results are not as expected. The main reason lies in problems about the people, institutions, regulations and structure of the industry involved, which lead to lack of mutual trust between stakeholders. Thus it is difficult to reach a consensus.
In this study, the author tries to explore the phenomenon of opportunism or even antagonism between the implementers and landlords caused by information asymmetry, incomplete communication or other uncertain factors, which accordingly result in drag on the integration and promotion of urban renewal projects or even lead to procrastination in the implementation thereof that could in addition raise transaction costs atrociously. This study takes as its main theme the problems and risks faced by the implementers and stakeholders initiated since the beginning of urban renewal process to its completion to explore fully said process with a view to figuring out the relevant key success factors, through (a)the application of risk management theory; (b)understanding the characteristics of the three participant parties, i.e. the landowners, the governments and the implementers; (c)the exploration on the obstacles, difficulties and risks faced by the private sectors in the implementation of urban renewal; (d)the analysis on specific implemented cases and questionnaire interviews on experts involved in urban renewal projects, and(e)comprehensive study on literature, institutions, laws and regulations, specific cases, and practical interviews to understand thoroughly urban renewal practices.
The author argues that the aforementioned problems are caused by shortcomings in urban renewal regime that lead to increase in substantial, uncertain and structural conflicts. Besides exploring the issues of risk reduction or hindrance elimination for the urban renewal industry, the author also suggests the possibility of structure reform to said party to promote the participation of private sectors in urban renewal.