Toyo University PPP Graduate School. The Roles of PPP in Major Disaster Recovery

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1 Toyo University PPP Graduate School The Roles of PPP in Major Disaster Recovery UN ECE PPP TOS Third Session April 18, 2011 Sam Tabuchi Professor, PPP Graduate School Toyo University Tokyo, Japan

2 Toyo University PPP Graduate School 2006 Established 2007 Area Revitalization and PPP Implementation 2008 Grant from Min. of Education and Science Established PPP Research Center * Produced more than 55 graduates: PPP Professionals * Works with central and local govern. offices & committees * More than 30 research partners * Publish periodicals, books and reports * Assist municipalities with PPP Implementation Studies * Host International PPP Forum and other seminars * Alliance with ULI, NCPPP, UF/FSU, FAU, GT, ICMA & UN ECE TOS PPP PPP Professional Training

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6 The Roles of PPP in Major Disaster Recovery Recovering with the Minimum Time & Cost Research Center for PPP Toyo University Tokyo, Japan

7 Damages Lost: 13,000+ people Missing: 14,500+ people Evacuated: 150,000+ people (At evacuation centers) Buildings: 48,000 totally destroyed 11,000 partially damaged Most damages caused by Tsunami (Max. height 35m) Some cities have lost almost 10% of their population Fukushima Nuclear Incident threatening sustainable community and industries(agriculture and fishery) (Figures are as of April 10)

8 Quick Reactive Study by Toyo Univ. PPP Research Center Recording 1000 Days Actions - Record actions taken by the Government, Legislatures, Municipalities, and other disaster relief programs - Objective comparison with Hanshin-Awaji Great Earthquake in 1995 Collecting Data on Damages Under 6 - Collecting data on damaged buildings/infrastructures with a quake registered Japanese seismic scale 6+or under (Fell short to meet Earthquake/Building Standards in Japan) - Earthquake rose issues of detarioration of public buildings and infrastructures Published Opinions Recovering with the Minimum Time & Cost Using Public/Private Partnership

9 Suggestion 1: Calculation of Reconstruction Cost Calculation of Financial Burden of Reconstruction Cost is necessary for choice and concentration Toyo PPP Research Center published a easy-calculation software" for calculating Local governments cost for Renewal/Renovation of Public Buildings & Infrastructure (October 2010) In total, Municipalities in Japan will need approx. $85billon to reconstruct all public buildings and infrastructures in 50 years Ministry of Internal Affairs and Communication and its auxiliary institute published more in-depth calculation model with Toyo PPP Research Center (March 2011) Ultimate formula for calculation of whole-of-lifecycle cost with disaster recovery (will be released by Summer of 2011)

10 (Hundred Yen) 4,200,000 4,100,000 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 2,900,000 2,800,000 2,700,000 2,600,000 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , Reinvestment Cost Estimation for Next 50 years under Normal Occasion 全体更新費用 (Example of a Town with 30,000ppl) Total amount of reinvestment cost for 1 fiscal year Cumulative Cost ,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 公共施設上水道下水道橋梁道路設備 備品累計 Public Buildings Water Sewage Bridges Roads Facilities/Machines

11 4,200,000 4,100,000 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 2,900,000 2,800,000 2,700,000 2,600,000 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , Earthquake Shortened the Lifecycle of Buildings and Infrastructures 全体更新費用 and Multiplied the Cost ,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 公共施設上水道下水道橋梁道路設備 備品累計 Public Buildings Water Sewage Bridges Roads Facilities/Machines

12 Suggestion 2: Establishment of Reconstruction Agency Learn from US FEMA Organization Integrate all governmental organizations -Land use, Housing, Infrastructure, Transportation, Industries, Agriculture, Fishery, Forestry, Welfare, Healthcare, Education, Finance Comprehensive and whole-of-lifecycle planning and project management & delivery (plan, budget, implement, and execute) Provide administrative supports for public services in severely damaged municipalities Establishment of Human Resource Bank will enhance utilization of professionals from both public and private

13 Works with certification, budget, skills, human resources, and cooperation Board: Minister of Finance & Relating Ministers Land Use Planning/Zoning Transportation Prime Minister Certification &Budget Minister of Reconstruction RECONSTRUCTION PLAN Industry Agriculture Fishery Forestry Project Management / Delivery Education Health Care Labor Welfare Private Companies Human Resource Bank Min. of Land, Infrastructure and Transportation Min. of Economy, Trade and Industry Min. of Agriculture, Forestry and Fisheries Min. of Health, Labour and Welfare Min. of Internal Affairs and Communicatio ns Coordinator/Advi sor Projects Projects Projects Projects Destroyed Areas/ Local Gov Local Govs

14 Suggestion 3: Effective and Broad Use of PFI/PPP Faster and easier application of PFI/PPP - Shorten/omit some bureaucratic procedures (i.e. If in accordance w/national Reconstruction Plan, shortcut implementation policy study, project qualification testing, and some Assembly procedures) - Dispatch experienced administrative personnel from other municipalities or public/private organizations Flexible and wider application of Concession (amending of the PFI Law to implement concession is in progress) - Apply to non-user-fee projects - Allow municipalities and related organizations to become business operators / concessionaires

15 Suggestion 4: Intensive Investment on Multi-purpose Community Centers Put multiple fundamental functions together(i.e. schools, administrative offices, meeting spaces etc.) Build as skeleton architecture for disaster prevention and flexible adjustment of functions to social needs/demands National subsidy system prevents municipalities from effective use of buildings/spaces(use of building for other/multi purposes) for long time Integrative operation of administrative property and ordinary property is required for flexible diversion

16 Separate Skelton & Infill allows effective uses Infill Facilities, Interiors Flexi bility Infill 10-30yrs Easy renovation to meet social demands Dura bility Skelton yrs Skelton Structures, Ceilings, Floors Strong structures for safe and sustainable use Copyright: 都市再生機構 Urban Renaissance Agency

17 Suggestion 5: Establishment of Infrastructure Reconstruction Fund Investment tax credit Issuance of tax-exempt bonds Utilize individual financial assets of 1400 trillion ($16 trillion) National/Local Governments Equity Investment Equity Investment INFRASTRUCTURE RECONSTRUCTION FUND SPC (Reconstruction Program) Investment (ITC) Individuals etc. Buy bonds (Tax Exempt, preferential)

18 1 Toyo PPP School Submitted the Suggestions To the Cabinet Office of Japan in April, Toyo PPP School will continue the study in 2011 & would like to Invite UN PPP TOS to join in the Study 3 Toyo PPP School Plans to Host International PPP Forum in Summer, 2011 The Roles of PPP in Disaster Recovery 4 Toyo PPP School tries to be the catalyst for establishment of the Specialist Center in The Roles of PPP in Disaster Recovery, Local Government PPP and Others