Trade Resources Industry Views Taiwan Government Has Set Ceiling Prices of About NT$8,000 for LED Street Lamp Open Bids

Taiwan Government Has Set Ceiling Prices of About NT$8,000 for LED Street Lamp Open Bids

The Taipei and Kaohsiug City Governments have set ceiling prices of about NT$8,000(US$274)for LED street lamp open bids,and some Taiwan-based LED lighting makers have complained the prices are significantly lower than the reasonable level of NT$11,000-12,000,depending on specifications,which therefore may force winners to provide inferior products.

The Taiwan government will offer NT$2.7 billion to subsidize local governments procuring 320,000-330,000 LED street lamps in total in 2012.Since pricing set for Taipei and Kaohsiung,the two largest cities in Taiwan,could form a leading index,other local governments are likely to set lower ceiling prices,according to the LED Street Lighting Alliance in Taiwan.The average price for LED street lamps in 2011 was about NT$20,000,and despite continual drops in LED prices,suppliers have to bear the cost of installing the lamps and guarantee them for 5-years,therefore the ceiling level of NT$8,000 is too low,the alliance pointed out.

However,Taiwan-based Bright Led Electronics has said it does not think the price is too low and will participate in open-bids.Bright Led won a contract to supply 600 LED street lamps at lower than NT$8,000 to the Taipei City government in early 2012.

Local governments'open-bids for 250,000 LED street lamps in the first round will be finished by the end of 2012 and installation should be completed by the end of April 2013.

The Taiwan government aims to hike LED penetration among street lamps from 2%in 2011 to 13%in 2012 and eventually to 100%by 2018.

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Makers Complain About Low Price Ceiling for Taiwan Government Led Street Lamp Procurements
Topics: Lighting