Risk Management and Governance for PFI Project ... - Title Page - MIT

provision of a public service of a tangible fixed asset or infrastructure, such as roads, with the aim
of utilizing the private sector’s finances, technology and ingenuity.
In Japan, Cabinet Office has strengthened various guidelines since the enactment of PFI Law in
1999. Representative example of guideline of PFI includes the following: “Process Guideline”
(January 22, 2001), “Risk Allocation Guideline” (January 22, 2001), “VFM Guideline” (July 27,
2001), “Contract Guideline” (June 23, 2003) and “Monitoring Guideline” (June 23, 2003).
Table 3: History of Law and Guideline of PFI
Year National Statute, Guidance, etc.
1999
Enactment of PFI Law
Creation of The Committee for Promotion of PFI
2000 Publication of Policy Framework
2001
2003
Release of
• Process Guideline
• Risk Allocation Guideline
• VFM Guideline
• Revision of PFI Law
Release of
• Contract Guideline
• Monitoring Guideline
2004 Release of Interim Report of the PFI Promotion Office
2005 Revision of PFI Law
2006
2007
2008
2009
Release of a guidance for dialogue
(an arrangement paper by directors of relevant ministries and agencies)
Report of the PFI Promotion Office
Revision of
• Guidelines for the Implementation Process of PFI Projects
• VFM Guideline
Release of:
• Basic Approaches to Issues on PFI Contracts
• Basic Approaches to Service Specifications relating to PFI Contracts
Source: Government of Japan, Cabinet Office, PFI Promotion Office,
http://www8.cao.go.jp/pfi/e/4history.html; Tashiro, T. (2009). Japanese PFI in School Sector
Overview of PFI
Process of PFI
The general process of the PFI consists of three stages and seven steps, as described in Table 4.
The detailed decision-making diagram on the first stage, selection of particular project, is
described in Figure 1.
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