The PFI in Japan. Japan Fair Trade Commission OECD Competition Committee Working Party 2 June 16, Paris. The structure of the presentation

Transcription

1 The PFI in Japan Japan Fair Trade Commission OECD Competition Committee Working Party 2 June 16, Paris The structure of the presentation 1. What is PFI? 2. The process of PFI 3. The types of PPP/PFI projects 4. Case study 5. Future developments 2 1

2 What is PFI? PFI (Private Finance Initiative) PFI is the method to deliver public facilities in accordance with the PFI Act, which has been put into effect since It is to provide public services of good quality at a lower cost or better public services at the same cost through the utilization of private finance, management abilities and technical capabilities in construction, maintenance, management etc. of public facilities etc. PFI would reduce costs of delivering public facilities through the utilization of private finance, know-how, etc. Under current severe fiscal conditions of national and local governments, PFI would achieve economic revitalization and growth by promoting necessary social capital investment more efficiently through utilizing private finance, know-how, etc. in addition to public funding. Reference: PFI in Japan by PFI Promotion Office in Cabinet Office Government of Japan, February What is PFI? Differences between PFI and PPP Degree of contractingout Methods Effects less Range of PPP Direct management Partial contracting-out Private build, operate build, Private operate PFI Securing of publicness Reduction of overall cost more Privatization 4 2

3 What is PFI? The Growth in number and costs of PFI Projects (Number of projects) (As of Sep 30, 2013) (100 million yen) H 現在の累計 (As of Sep 30, 2013) 事業数 :428 件 Number; 428 事業費 Costs; :42,819 42,819 億円 Number of publicized implementation Costs of projects (Fiscal Year) policies (cumulative total) (cumulative total) - Number of projects is the number of implementation policies on projects that have been publicized and captured. - Costs of projects are the total amount of initial contract prices of projects whose cost born by the government was determined through selection of business operator. - Costs of projects in the graph refer to numbers which round to the hundred-million yen. 5 Reference: PFI in Japan by PFI Promotion Office in Cabinet Office Government of Japan, February 2014 The Process of PFI The basic process of PFI (General competitive bidding with comprehensive evaluation method) Completion of Project Management and Maintenance Design / Construction Contract The Decision of Winning Bidder Review The Submissions of Proposals Prequalification Screening Q&A Tender Notice Selection of a Qualified Project Opinion Implementation Policy Feasibility Study Basic Plan Basic Concept STEP 0 STEPⅠ STEPⅡ STEPⅢ Project Plan Selection of a Qualified Project Selection of a Private Business Operator Implementation of the contract and the Qualified Project 6 3

4 The Process of PFI Selection of a Private Business Operator General competitive bidding with comprehensive evaluation method The method is to decide the winning bidder by comprehensively considering not only price but also other elements (the service standard of maintenance/, technical capability, etc. ) within the bound of the predetermined price. (The methods of review) Type A) To score the elements other than price per each bidding price. Type B) To score all the elements including the price subject to the evaluation. Type C) To score the elements other than the price firstly, then select winning bidder by price at the second place. In the case of bid rigging The application of Anti- Monopoly Act 7 The types of PFI/PPP projects The deferred payment (PFI) (conventional type) tax deferred payment operator construction 100% burden for government Concession PFI (Introduced in 2011) tax Const ruction Concession fee Fee revenue concessi onaire If the cost of construction is larger than concession fee, the difference would become the burden for government. Utilizing Commercial Facilities(PFI) revenue Related business tax Related business operator (construct ion)/ The mitigation of burden for government owing to the revenue from commercial facilities :private investment revenue PPP Private operator (construct ion)/ (The proposal including public from private business operator) Burden for government might be newly equal zero depending on revenue from private facilities. Private Business Operators Ingenuity or Synergy Effects of private sector Reference: PFI in Japan by PFI Promotion Office in Cabinet Office Government of Japan, February

5 Case Study Kurobe-city sewage PFI utilizing Biomass Energy Administrator Kurobe-city (Toyama-prefecture) The Overview of Facility Project Overview To construct and operate sludge drying, in-house power generation and open foot-spa by utilizing biogas generated from sewage sludge Park Project Cost 3.6 billion yen Sludge drying Announcement of Bid January 2008 Fermenter Septic tank Gas tank Schedule Commencement of May 2011 reference:kurobe-city website 9 Future developments PFI 事業類型について (decided by the Council for the Promotion of PFI on June 6 th, 2013) Projects in the following 4 categories are to be focused on toward achievement of total 12 trillion yen of PPP/PFI projects in 10 years ( ) (*) as attractive to the private and local areas. The size and concrete action for each category are indicated below. (1) Concession PFI : 2-3 trillion yen < Concrete action plan > Introducing a concession PFI in the fields of airport, water supply and sewage etc. (2) PFI projects collecting construction costs through utilizing the revenue from commercial facilities built on / in / public facilities: 3-4 trillion yen < Concrete action plan > Introducing PPP method for rehabilitation of public facilities such as expressway (especially Metropolitan Expressway which requires a large-scale rehabilitation). (3) PPP projects utilizing the private sector s proposals such as effective use of public real estate : 2 trillion yen < Concrete action plan > Issuance of a guideline on the private sector s proposals and establishment of a contact point to receive them. Establishment of public-private co system in order to support formulation of PFI projects in crosscutting approach which Infrastructure UK has already adopted. (4) Others (Introducing performance-linked revenue system, bundling several public facilities etc. of the same type): 3 trillion yen <Concrete efforts for (1) ~(4)> Prioritizing subsidies and grants toward government ministries and agencies and local governments based on the appropriate evaluation of them from the point of how much effort on Action Plan is made. 10 (*) This targets is not set on the precise accumulation of PFI project pipeline. 10 5

6 Thank you very much for your attention! 11 6