Government/PFI Law Amendment Allows Facility Expansion and Rearrangement in Concessions
The government will revise the PFI Act to expand PPP/PFI as a "new public-private partnership" initiative that will be the core of new capitalism. In the case of concessions (rights to operate public facilities, etc.), a procedure for changing the implementation policy decided before the selection of a business operator has been established so that the business operator can flexibly repair or expand facilities. This will lead to a highly flexible operation by the private sector. Sports facilities and assembly facilities such as stadiums and arenas will be added as targets for PFI projects. The bill to revise the law is scheduled to be approved by the cabinet on the 14th and submitted to the extraordinary session of the Diet.
If the revised law is enacted, it is expected that the provisions for the procedure for changing the implementation policy will be enforced within six months of its promulgation, and the addition of PFI projects will be enforced on the same day as the promulgation. Based on the revised law, we will accelerate the introduction and expansion of PPP/PFI and aim to achieve the business scale target (30 trillion yen in 10 years until FY2031).
The concession period is long, averaging 23 years. The scale and layout of the facilities to be operated are set by the implementation policy. Under the current law, this policy cannot be changed, so even if there are technological innovations or changes in circumstances during the project period, it is impossible to expand facilities or change the layout. Even when changing the line of flow within the facility to avoid the three Cs due to the coronavirus pandemic, it was not possible if it deviated from the conditions of the implementation policy.
In the revised bill, a system for changing the implementation policy will be created so that the scale and layout of the facility can be changed during the project period. This will allow airports with concessions to expand their aprons to accommodate increased flight numbers. It will also be possible to flexibly implement barrier-free measures, such as increasing the number of spectator seats in arenas, widening aisles in museums, and increasing the number of elevators. By increasing the degree of freedom of the private sector in terms of management and drawing out originality and ingenuity, it will lead to the provision of high-quality services.
We will add sports facilities and assembly facilities to the target of PFI projects, where many new construction/renovation/renewal demand is expected.
Prior to legal development, sports facilities plan to formulate guidelines (provisional version) for the introduction of concessions within this month. Gathering facilities include community centers, music halls, and other base facilities for community exchange.
