PPP/PFI ASSOCIATION/RECOMMENDS TO EXPAND MEASURES TO COMBAT PRICE FLUCTUATIONS IN BUSINESS, CHANGE SLIP START DATE, ETC.

PPP/PFI ASSOCIATION/RECOMMENDS TO EXPAND MEASURES TO COMBAT PRICE FLUCTUATIONS IN BUSINESS, CHANGE SLIP START DATE, ETC.

    The Japan PPP/PFI Association (Chairman and President Kazuo Ueda) announced on the 22nd that it has submitted a proposal to the government calling for the expansion of anti-price volatility measures related to PFI projects. We request that the initial calculation date for the inflation slippage be changed from the date of contract conclusion to the date of bid announcement and that price increases between the time of bid announcement and the time of contract conclusion be taken into account. calculation of the time of price slippage. They also called for the removal of the burden on business operators, which is retained even with the introduction of price escalation.

    The proposal was generated through a questionnaire survey of member companies and sent to the Cabinet Office's Private Funds Project Promotion Office on the 15th.

    The current standard contract also has a slippage clause, which provides a framework within which both parties can request changes to the contract if a certain percentage of price fluctuation occurs after the business contract date. signed.

    However, the business operator will start preparing preliminary estimates as soon as the implementation policy is announced and finalize the proposed price at the tender announcement stage. The operator selection process typically takes about nine months to a year, and inflation during this period is not subject to sliding fees.

    Businesses end up signing contracts with proposed prices that are lower than the current price, and the current situation is that they can only request changes to the contract if the next price increase exceeds a certain percentage. Due to the current situation, the proposal calls for changing the start date of the slide to the bid announcement date or the date on which the debt burden act is established for the government to arrange the budget.

    Additionally, when a contract is amended with a sliding clause, the operator will be required to pay 1% or 1.5% of operating costs (unfunded facility costs may vary) after the base date. facility, this amount will be deducted from the contract amount. Revision. The proposal emphasizes, ``Not only does this place an extremely heavy burden on business operators, but it also removes the incentive to participate in PFI projects, which is also detrimental to customers .'' They demanded the removal of the burden that business executives had to bear.

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