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

[PFI] Luton Airport (UK) .........................................................................................................................43
Risk-Actualized Cases ..................................................................................................................................44
[PFI] Taraso Fukuoka ...............................................................................................................................45
[PFI] Omihachiman City General Hospital ..............................................................................................47
[PFI] Spopark Matsumori .........................................................................................................................51
Summary .......................................................................................................................................................52
Chapter 4: Risk Management of PFI .............................................................................................................53
Overview of PFI Risk Management ..............................................................................................................53
Concept of Risk ........................................................................................................................................53
Classification of Risk ................................................................................................................................53
Risk Treatment .........................................................................................................................................54
Appropriate Risk Allocation .........................................................................................................................56
Current Methodology of Risk Allocation .................................................................................................56
Proposal of the Framework of Risk Classification ...................................................................................56
Simulation of Risk Allocation Based on the Framework..........................................................................59
Improvement of Contract Expertise ..............................................................................................................62
Flexibility of Contract ...............................................................................................................................62
Real Option Approach ..............................................................................................................................63
Implementation of the Risk Workshop .........................................................................................................63
Utilizing the Monitoring Function of Financial Institutions .........................................................................64
Summary .......................................................................................................................................................65
Chapter 5: Potential Problems and Possible Solution in Japanese PFI ......................................................67
Limitation of VFM Indicator ........................................................................................................................67
Quantification of Risk ...............................................................................................................................67
Arbitrariness of the Discount Rate ............................................................................................................68
Arbitrariness of Reduction Rate ...............................................................................................................68
Limited Scope of Assessment ...................................................................................................................68
For Designing Better Indicators ................................................................................................................69
Why Adopt PFI? ...........................................................................................................................................69
VFM Driver ..............................................................................................................................................69
Benefits and Disadvantages of PFI ...........................................................................................................70
Third Party’s Evaluation ...............................................................................................................................71
Project Evaluation by Third Party ............................................................................................................72
Evaluation Points for Project Evaluation ..................................................................................................72
Check System at Each Stage of Project ....................................................................................................73
Development of Audit Framework ...........................................................................................................73
Summary .......................................................................................................................................................74
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