Creating public sector capacity. in Japan. Member, PFI Promotion Committee, Cabinet Office of the

Transcription

1 Creating public sector capacity in Japan Feb. 22, 2012 Yuji Nemoto Director/Professor, Toyo University PPP Graduate School Member, PFI Promotion Committee, Cabinet Office of the Japanese Government TOYO Univ. PPP School 1

2 Toyo University PPP Graduate School Private university located in Tokyo, Japan The Governor, Dr. Masajuro Shiokawa, former Finance Minister in the Koizumi Cabinet in 2001~ : PPP Graduate School 2008: PPP Research Center 2011: Asia PPP Institute TOYO Univ. PPP School 2

3 History of PPP in Japan 18c: Infrastructure construction by merchants (ex. Yodoyabashi-bridge in Osaka) 19c: Privatization by the National Government (ex. Iron mill disposal in Yahata) 1960~70s: Japan Inc. MITI s Industrial policy 1980s: Nakasone Reform privatization(ntt, JR, JT) + third sector" (Public/Private JV) 2000s: Koizumi Reform Current PPP Legal Framework was completed TOYO Univ. PPP School 3

4 PPP Legal Framework in Japan Outsourcing Designated Manager System 2003 Local Government Act revision library, gymnasium and swimming pool etc. no ownership, relatively small, 70,000+ projects PFI (Private Finance Initiative) 1999 PFI Act, 2010 Reform prison, school and hospital etc. BOT/BTO, relatively large, 350 projects Market Testing 2006 Public Service Reform Law public service, 30+ projects Economic Development such as Mixed-Use Real Estate Development TOYO Univ. PPP School 4

5 Current Issues Severe financial circumstances (200%: Debts to GDP) PPP for earthquake disaster revival Aging of Social Infrastructure PFI Act Reform in 2011 Concession Private sector proposal system Public/Private Infrastructure Fund Numerical target (twice) the expectation for PPP is great. TOYO Univ. PPP School The Sendai Airport Infrastructure Fund National Government invest Fund invest Private PFI project mezzanine 5

6 Why Capacity Building is indispensable? Typical PPP Structure (1)request for proposal (including risk/reward sharing) Public Private Private (2) propose (4) implementation (3)selection, contractual agreement TOYO Univ. PPP School 6

7 Capacity Building Institutions in Japan National Government PFI Promotion Committee, Cabinet Office of the Japanese Government Non-profit Sector Toyo PPP Graduate School Japan PFI-PPP Association TOYO Univ. PPP School 7

8 Toyo PPP Graduate School Established in 2006, master course, 2 years Academic-based(mainly economics & finance) 20+ students every year (background as below) architecture, engineering private sector public sector others sociology urban planning law economics TOYO Univ. PPP School 8

9 Toyo PPP School Capacity Building System Curriculum Capacity Building Sheet Amount-of-money automatic calculation software for replacement investment Local Reproduction Support Program TOYO Univ. PPP School 9

10 Curriculum - 8 fields and main subjects Basic Public Finance Local Administration and finance theory theoretical Micro Economics Game and Contract Theory 1 Economic theory Public Economics Policy Evaluation Theory 2 Public finance 3 Financial science PPP Systems in Japan PPP Systems Overseas Basic Financial Science PPP Finance Theory public 4 PPP system 5 Business private administration Public Project Theory Local Political Leadership 6 Public projects 7 Private projects Financial Analysis PPP Management Theory Case studies 8 Case studies and project making Advanced Case Studies PPP Project Practice Exercise Private Project Theory PPP Development Theory PPP Planning practical 10

11 Capacity Building Sheet Each student choose own level(from 0=no knowledge to 5=the highest knowledge) Category Key Words Level examples 1 Economic public goods, 0~5 theory external effect 2 Public Local 0~5 finance Government Act 3 Financial project 0~5 Science finance 4 PPP system PFI, market 0~5 testing 5 Business administration public 0~5 accounting 6 Public Building projects Standard Law 0~5 7 Private Mixed-use 0~5 projects Development 8 Case studies Various case 0~5 and project studies and making exercise A: government official B: private consultant Area where needs capacity building 11

12 Software for easy calculation of replacement investment (MS-excel) Input: some specific local government, building architectural area, paved road area, bridge area, water piping distance, sewer piping distance, construction year Output: amount-of money for replacement investment evaluated automatically. 14,000 12,000 10,000 8,000 6,000 4,000 2, TOYO Univ. PPP School 12

13 Area Revitalization Support Program(domestic) 16 research projects with local governments. Each different theme 1 PPP development in front of a station 2 comprehensive outsourcing as Sandy Springs in the U.S. 3 unutilized sea port

14 Area Revitalization Support Program(international) Asia PPP Institute has begun the same program in Asia Research and/or intensive course on PPP 2 Phillipine, Malaysia TOYO Univ. PPP School 14

15 Conclusion PPP is indispensable. PPP has not been fully utilized in Japan. Lack of governments officials knowledge. That s why public capacity building is necessary. Toyo will contribute to PPP capacity building through the unique educational programs. If interested, please visit our booth and Japan session, 23 February, 9:30~12:30, Salle17 TOYO Univ. PPP School 15

16 Thank you for your attention. TOYO Univ. PPP School 16