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

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[PFI] Kochi Health Sciences Center -- Rigid contract and failure of the creation of management incentive Redevelop the hospital due to the aging of the Prefectural Hospital Project overview Basics Project period 30 years Project method Corporate structure BTO (main hospital facility) BOT (staff quarters) Services sold projects (management of general services facilities: financially free-standing projects) Selection Method Open-Application Proposal Method (Single Tendering) Amount of the contract 213.19 billion yen (Construction cost: 33.7 billion yen; equipment purchase cost: 15.1 billion yen; management and operation cost (including interest expense) 1,644 billion yen) ● The need to redevelop the hospital was increased due to the aging of the prefectural hospital. The Hospital opened as the first hospital using PFI in March 2005. Unforeseen impact ● The hospital has been continually in the red. In 2008, the cumulated deficit reached 8.1 billion yen and faced management crisis. ● In June 2009, SPC proposed to have a consultation regarding termination of the PFI contact. The contract was cancelled in March 2010. Causes of problems • Failure to create incentives for the SPC • Inflexible contract • Lack of understanding and communication between the public and private sectors ● Failure of creating management incentive for SPC: a payment to SPC was immobilized regardless of business performance. As a result, it had the SPC to be uncooperative lacking management for the company commissioned, not improving the items that do not meet the required service level. ● Inflexible contract: because of the long-term contract for 30 years, it is difficult to make a flexible contract which can appropriately cope with new problems associated with 96 Hospital had been continually in the red and finally contract was cancelled
changes in the medical and economic environment. ● Lack of communication and understanding between the public and private sectors: due to the frequent personnel changes in both SPC and the city, it was difficult for both sides not only to have smooth communication, but also to accumulate expertise and meet the needs of medical practitioners. (Sano, 2007) 97
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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
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yen (Nagano Board of Trade, 2006).
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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 and 92: Appendix 2: Related Regulations in
Page 93 and 94: Appendix 3: Additional Risk Actuali
Page 95: [PFI] �agoya Port Italian Village
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