NO

ASPECTS

DESCRIPTION

4.

Available Sectors

Public facilities, such as road and airport.

5.

Eligible Tender Participants / Project Initiator

Eligible tender participants/ project initiators are as follows:

- One who does not fall under Article 9 of PFI law.

6.

Types of PPP Structures/Contract Types

BTO, BOT, BOO, RO, Concessions etc.

7.

Types of Project

PFI projects could bemainly classifiedinto three types below according to operational costs of a facility.

(1) Financially independent type:Operational costs are covered by the revenue that comes from users of facilities.

(2) Purchase of service type: Operational costs (service costs) are covered by the public sector.

(3) Mixed type:Combination of financial independent type and purchase of service type.

8.

Project Stages and Implementation for Solicited Proposals

(Procedure)

Receive proposals from private sector applicants.→Administrator of the public facility etc. considers proposals and responds to the applicants.→(If accepted) →Design and publish an implementation policy →Evaluate and select a project, and publicize theQualified selected Project (public notice)→Receive proposals from private sector applicants, and evaluate and select a business operator(s)→ contract →project implementation.

9.

Project Stages and Implementation for Unsolicited Proposals

(Procedures)

Issue Implementation Policy→Evaluate and select a project, and publicize the Qualified selected Project (public notice)→Receive proposals from private sector applicants, and evaluate and select abusiness operator(s) → contract → implement and monitor theproject→project completion.

10.

Mechanisms to Engage Private Sector at Project Development Stages

At project development stage (construction, operation and maintenance of facilities), private sector applicants submit proposalsthat are drafted based on publicly available information, such as specifications of public notice.

11.

Project Appraisal and Selection Process

Before staring a PFI project, a feasibility study whichassessesa prospect of service improvement of a facility and cost effectivenesswill be conducted. Based on the results of the studyand Value for Money (VFM) calculation, Administrator of the public facility decides if PFI would be introduced.

12.

Facilities Available to Facilitate Project Structuring and Transaction Advisory

All relevant ministries and agencies provide consultation services.

13.

Role of Local Government

Local governmentisresponsible for operating PFI projects.

14.

Risk Sharing Policies/ Practices

The PFI promotion office in Cabinet Office publishes a guideline on risk sharing in PFI projects for reference. Risk sharing policiesarespecified in a contract of eachPFI project.

15.

Financing Mix Options Allowed

PFI projects which collect user fees from userscould be candidates to be financed by the PFI Promotion Corporation of Japan.

16.

PPP Promotions/ Marketing Mechanisms

Briefing sessions for local governmentsto promote PFI projects are held by the central government.In the water supply sector, the Public Private Partnership Promotion Council is held by METI and MHLW.

17.

Monitoring and Evaluation

Monitoring and evaluation are conducted based on respective contracts. The central government publishes the guideline on project monitoring for reference for people who are engaged in projects in practice.

18.

Dispute Resolution Mechanism

-