On the 10th, the Office for Promoting Private Finance Initiatives (Office for Promoting PPP/PFI) under the Cabinet Office released guidelines for promoting the implementation of cross-sectoral and large-scale PPP/PFI projects. The report summarizes the consideration of introducing “cross-sectoral” projects, which include the integration of multiple sectors or public facilities, and “large-scale” projects, in which multiple local governments act as management units, as well as the recruitment and selection of operating units and key points for promoting projects. Many examples are also given.
We have published a “Guide to Introducing Cross-Sectoral and Broad-Based PPP/PFI Projects”. The aim is to help address the challenges faced by public infrastructure and utility managers, such as aging public infrastructure and utilities and shortages of technical staff, and expand the scope of PPP/PFI business.
In the face of changing social conditions, the need to provide public services beyond traditional jurisdictions and to take advantage of economies of scale by combining multiple sectors and facilities is increasingly emphasized. Both cross-sectoral and large-scale projects are seen as beneficial in encouraging the participation of diverse private enterprises and creating business opportunities.
The handbook outlines key points related to consensus building to facilitate cross-sectoral and large-scale projects, coordination within and outside agencies, procurement structures and methods, and selection, screening, and engagement with private companies. Examples of cross-sectoral projects include integrated water supply, wastewater, and industrial water supply systems, and public schools, while examples of large-scale projects include water supply and waste treatment.
We will also introduce previous cases that explain why the system was put into use and what points are important. The report describes business methods and their concepts, such as "vertical cooperation", in which the national and provincial governments play a leading role, and "joint ordering", in which ordering authority is concentrated in specific cities, towns and villages. The document also points out points to note, such as the monitoring system and ways to avoid placing undue burdens on private enterprises.
The guidebook includes 29 cross-disciplinary and large-scale case studies that were investigated during the development of the guidebook and provides reference information on commercialization dynamics, collaboration methods, expected outcomes, and points to note. Key steps and points leading to commercialization are also outlined.
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