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

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Situation Anyone (Private or Public) can manage the facility The private sector is not allowed to be a manager of the facility Legislation (Area) Railway business law Road transportation law Port Law Aviation Law Airport Maintenance Law Road Law City Park Law Table 16: PPA Laws and Private Sector Provision 92 Details Under the Railway business law, there are no restrictions on who may operate the railway business. The private sector has historically participated in the railway business. The road business operator (National/Regional Governments) can contract private sector operators to undertake business on its behalf, but ultimate responsibility to third party users rests with the road business operator (Government body). Under the Port Law, the establishment and management of port facilities is not limited to the public sector. There are a number of port facilities that are established and managed by private entities. The actual establishment and management of the airport facilities are governed by the Aviation Law, and private entities may also be managers of the facility. • The Airport Maintenance Law provides that National and Regional Governments must maintain airports that are considered to be part of the aviation network and share in the expenditure based on certain allocation. • The Road Law provides exclusive rights to MLIT/ Regional Governments for a multitude of matters including: newly establishing, renovating or managing a road; making decisions on changing the routes; starting/ceasing public use of a road; determining the use for the road etc. • The private sector may undertake the actual activities of construction and maintenance. Establishing, managing, and setting restrictions on use - the rights to carry out these are exclusively provided to the National/regional Governments under the City Park Law. PFI operators may undertake certain activities approved by the manager of the Parks such as holding events, functions and classes in the Park, maintenance activities, cleaning, gardening activities. Source: JETRO (2010). Public Private Partnerships in Australia and Japan. http://www.jetro.go.jp/en/reports/survey/pdf/2010_01_other.pdf
Appendix 3: Additional Risk Actualized Cases [PFI | Third Sector] Hibiki Container Terminal Project -- Business bankruptcy derived from the optimistic demand forecast Implementation of the project of Container Terminal by mixed scheme of PFI and third sector Project overview Basics Project period 25 years Project method BOT Corporate structure Financially free-standing projects Selection Method Open-Application Proposal Method (Single Tendering) Amount of the contract - (Capital of SPC: 3.85 billion yen) ● In May 2000, published project implementation policy and selected the preferred negotiator. SPC was established in January 2004. Started business in April 2005. ● By the PFI project joined by a foreign company (PSA Singapore), it aimed to achieve "quality and internationally competitive service, not losing to the major ports of Asia" and "the cheapest port in Japan". Unforeseen impact ● The amount of cargo handling was 5,823 TEU 28 in FY 2005 and 29,358 TEU in FY 2006, which was significantly less than the demand forecast (70,000 in FY2005 and 140,000 TEU in FY 2006) ● Reduced capital to ¥ 10 billion in response to the excess debt and the worse management of SPC. The scope of the operator’s businesses was significantly reduced from a centralized business to facility management business such as maintenance and inspection of facilities of the terminal. 28 1TEU = 20-foot container • Inadequate quantitative assessment • Optimistic demand forecast 93 • The demand was significantly lower than the initial estimation and an investor’s management was deteriorated • Termination of the contract
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Risk Management and Governance for
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Acknowledgements I would like to ex
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[PFI] Luton Airport (UK) ..........
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List of Tables Table 1: Types of PP
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Introduction Japan has a long histo
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Chapter 1: History of PPP in Japan
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Table 2: Strength and Weakness of P
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interested in the close relationshi
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second construction of a second art
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Cause of problems ● Optimistic de
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provision of a public service of a
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design-build-maintain-operate steps
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Figure 4: Concept of VFM (in the Ca
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Types of Tendering In a PFI project
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Source: Government of Japan, Cabine
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The Reason Why the PFI in Japan is
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Office of the Cabinet Office is con
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Project Central Government Building
Page 42 and 43: yen (Nagano Board of Trade, 2006).
Page 44 and 45: Basics ● Initially, the airport h
Page 46 and 47: Basics ● The plan of this project
Page 48 and 49: Project overview Project period 33
Page 50 and 51: [Example of utilizing the lesson]
Page 52 and 53: ● Absence of supervisory function
Page 54 and 55: Classification Examples Risk classi
Page 56 and 57: Appropriate Risk Allocation This se
Page 58 and 59: “risk allocation matrix”, there
Page 60 and 61: Construction defect risk (Spopark M
Page 62 and 63: etween the public and private secto
Page 64 and 65: Risk perception is a starting point
Page 67 and 68: Chapter 5: Potential Problems and P
Page 69 and 70: For Designing Better Indicators As
Page 71 and 72: cases include the Lowdham Grange Pr
Page 73 and 74: the viewpoints of “Accuracy”,
Page 75 and 76: in previous chapters. Fortunately,
Page 77 and 78: Bibliography Akai, N., & Shinohara,
Page 79 and 80: Hellowell, M., & Pollock, A. (2009)
Page 81: Oshima, M. (2009). The Introduction
Page 84 and 85: Tendering System After understandin
Page 86 and 87: Contracting System The contract sys
Page 88 and 89: strongly between contracting partie
Page 91: Appendix 2: Related Regulations in
Page 95 and 96: [PFI] �agoya Port Italian Village
Page 97: changes in the medical and economic
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