WORLD TRADE  
ORGANIZATION   
GPA/111 
9 December 2011 
 (11-6407) 
Committee on Government Procurement Original: English 
   
NOTIFICATION OF NATIONAL LEGISLATION 
 
Communication from Japan Pursuant to Article XXIV:5(b)
1 of the  
Agreement on Government Procurement 
  
 The following communication, dated 5 December 2011, is being circulated at the request of 
the Delegation of Japan.  
_______________ 
  
 Pursuant to Article XXIV , paragraph 5(b) of the WT O Agreement on Government 
Procurement, the Government of Japan wishes to  inform the Committee on Government Procurement 
of the following.
2 
 
_______________ 
 
 
NOTIFICATION OF THE AMENDMENT TO THE "ACT ON PROMOTION OF  
PRIVATE FINANCE INITIATIVE" 
  
1. Agency responsible 
 Cabinet Office 
 
2. Description of the amendment to the "Act on  Promotion of Private Finance Initiative" 
 After coming into effect in July 1999, the "Act on Promotion of Private Finance Initiative" 
(hereinafter referred to as "PFI Act") has been am ended several times.  Since 1 June 2011, the most 
recent amendment has progressively come into  effect and came totally into force on 
30 November 2011, with the implementation of  the Cabinet Orders 354 and 355 as well as the 
Ministerial Ordinances 65 and 66.  The text of the amendment to the PFI Act is available on the 
Cabinet Office website:  http://www8.cao.go.jp/pfi/houritsu.html  (Japanese version). 
 
                                                      
1 Article XXIV:5(b) reads as follows:  National Legislation "(b) Each Party shall inform the Committee 
of any changes in its laws and regulations relevant to th is Agreement and in the administration of such laws and 
regulations." 
2 Previous notifications of Japan's national legislation can be found in documents:  GPA/37, dated 
20 June 2000;  GPA/67, dated 15 April 2002;  GPA/37/Add.1, dated 7 April 2004, GPA/37/Add.2, dated 
21 March 2005;  GPA/37/Add.3, dated 15 March 2006;  GPA/37/Add.4, dated 13 March 2007;  GPA/37/Add.5, 
dated 1 April 2008;  GPA/99, dated 2 June 2009;  GPA/37/Add.6, dated 23 July 2009;  GPA/99/Add.1, dated 23 July 2009;  GPA/99/Add.2, dated 31 May 2010;  GPA/37/Add.7, dated 6 July 2010;  and GPA/37/Add.8, 
dated 13 April 2011. GPA/111 
Page 2  
 
 With regard to the coverage of the provisions  of the Agreement on Government Procurement, 
procurement with regard to a project within th e scope of the PFI Act as of 10 December 2010 is 
included.  The text of the PFI Act as of 10 Decemb er 2010 (originally adopted on 30 July 1999) is 
attached to this communication as a reference.  3. Starting date of procurement ba sed on the amendment to the Act 
 1 June 2011 
 
4. Enquiry point 
PFI Promotion Office 
Cabinet Office of Japan 
3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8970, Japan Fax:  +81-3-3581-9682 
URL:  http://www8.cao.go.jp/pfi/e/home.html   GPA/111 
 Page 3 
 
 
ATTACHMENT 
 
(Provisional Translation) 
 
 
ACT ON PROMOTION OF PRIVATE FINANCE INITIATIVE 
 
Act No. 117 of 30 July 1999 
 
 
Article 1  Purpose 
  The purpose of this Act is to improve the soci al infrastructure efficiently and effectively and 
to ensure the provision of affordable and good service to the citizens by taking measures for 
promotion of provision etc., of Public Facility etc.  through utilization of private finance, management 
abilities and technical capabilities, thereby contributi ng healthy development of the national economy. 
 Article 2 Definition 
 
1. The term "Public Facility etc." as used in this Act means the following facilities (including 
equipment): 
 
 (i) public facilities such as roads, railways, ports and harbors, airports, rivers, parks, 
water services, sewage systems, and industrial water supplies; 
 
(ii) official facilities such as government buildings and accommodation; 
 
(iii) public interest facilities such as public housing, educational and cultural facilities, 
waste treatment facilities, medical faciliti es, social welfare facilities, offender 
rehabilitation facilities, parki ng, and underground malls; 
 
(iv) information and communications facilities, heat supply facilities, new energy 
facilities, recycling facilities (excluding w aste treatment facilities), tourist facilities, 
and research facilities; 
 
(v) other facilities equivalent to facilities listed in items (i) to (iv) inclusive, as specified 
in a Cabinet Order. 
 
2. The term "Qualified Project" as used in th is Act means a project (including an urban 
redevelopment project, a land readjustment project, and another urban develo pment project) involving 
the provision etc. of Public Facility etc. (which mean construction, rehabilitation, maintenance or 
operation of Public Facility etc., or planning of them, and include provision of services to the citizens;  
the same shall apply hereinafter), which is carried  out more efficiently and effectively by utilizing 
private finance, management abilities and technical capabilities. 
 
3. The term "Administrator of Public Facility etc." as used in this Act means following persons: 
 
(i) The head of each ministry and national ag ency, who is an administrator of Public 
Facility etc. (the Chairperson of the House of Representatives, the Chairperson of the 
House of Councilors, the Chief Justice of the Supreme Court, the President of the 
Board of Audit, and ministers, the same sh all apply hereinafter), or ministers having 
jurisdiction over a Qualified Project. 
 GPA/111 
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(ii) The head of a local government, who is an administrator of Public Facility etc., or the 
head of a local government who is going to implement a Qualified Project. 
 
(iii) An independent administrative agency, a corporation having a special status, and 
another public corporation (including an asso ciation formed to carry out an urban 
redevelopment project, a land readjustment  project, and another urban development 
project;  hereinafter referred to as "Public  Corporation") in charge of the provision 
etc. of Public Facility etc. 
 
4. The term "Selected Project" as used in this Act means a Qualified Project selected pursuant to 
the provision of Article 6. 
 
5. The term "Appointed Business Operator" as u sed in this Act means a person appointed to 
implement a Selected Project pursuant to th e provision of paragraph 1 of Article 7. 
 
Article 3  Basic Principles 
 1. In implementing a project for the provision et c. of Public Facility etc., its implementation 
shall be entrusted to private business operators as much  as possible, if the project is suitable for such 
entrustment.  In deciding the suitability of entrus ting such projects, consideration shall be given to 
factors such as:  appropriate division of roles between the national government and local governments 
(including a Public Corporation pertaining to govern ments;  hereinafter the same shall apply in this 
article and Article 18), on the one hand, and privat e business operators on the other hand;  efficient 
use of public funds;  improvement on efficiency of public administration, or efficient utilization of 
assets owned by the national and local governments, and;  whether the income generated by the 
project will prove sufficient to pay the costs involved. 
 2. When a Qualified Project is implemented, the sharing of responsibility between the national 
government and local governments, on the one hand,  and private business operators, on the other hand 
shall be clearly defined, profitability of the project  shall be maintained, and interference with private 
business operators from the national go vernment and local governments shall be kept to a minimum in 
order to fully utilize the technology and managerial  resources and innovation etc. of private business 
operators, for the purpose of providing affo rdable and good services to the citizens. 
 Article 4 The Basic Policy, etc. 
 
1. The Prime Minister shall formulate the basic policy for the implementation of Qualified 
Projects (hereinafter referred to as the "Basic Po licy") in accordance with the basic principles. 
 2. The Basic Policy shall set forth following ma tters regarding the implementation of Qualified 
Projects (as for Qualified Projects implemented by  local governments, matters necessary for sound 
and efficient promotion of Qualified Projects):  
(i) basic matters regarding the selection of a Qualified Project based on proposals from 
private business operators, and other basic matters regarding the selection of a 
Qualified Project; 
 
(ii) basic matters regarding the invitation and selection of a private business operator; 
 
(iii) basic matters to ensure the appropriate and reliable implementation of a project such 
as clarification of the responsibiliti es of the private business operator; 
 
(iv) basic matters regarding the legislativ e and tax measures, and fiscal and financial 
supports;  GPA/111 
 Page 5 
 
 
 
(v) other basic matters regarding the implementation of a Qualified Project. 
 
3. Basic Policy shall be determined in  consideration of the following matters: 
 
(i) As for the selection of a Qualified Project, it should bring effects such as efficient use 
of funds such as reduction of costs for the project, reform of public administration in 
service provision for citizens, and creation of business opportunity for private-sector, 
while ensuring their public nature and safety in provision of Public Facility etc.  At 
the same time, due autonomy of privat e business operators shall be respected. 
 
(ii) When selecting a private business operato r, the transparent process such as open 
competition shall be taken and the innovati on of private businesses shall be respected. 
 
(iii) Fiscal support shall basically be the m easures under the current system or shall be 
those equivalent thereto. 
 
4. When the Prime Minister formulates the Basi c Policy, the Prime Minister shall consult the 
heads of ministries and national agencies in advan ce, and obtain the decision of the Committee for the 
Promotion of the Private Finance Initiative. 
 
5. When the Prime Minister has formulated the Basic Policy, the Prime Minister shall publicize 
it without delay, and shall send it to the heads of ministries and national agencies. 
 
6. The provisions of the preceding two pa ragraphs of this article shall apply mutatis mutandis  to 
a change in the Basic Policy. 
 7. Local governments shall take necessary measu res for smooth implementation of Qualified 
Projects based on the basic principles and in consideration of the Basic Policy and matters listed in 
each item in paragraph 3 and us ing innovation of the region. 
 Article 5 Implementation Policy 
 
1. An Administrator of Public Facility etc. sh all determine the policy regarding implementation 
of a Qualified Project (hereinafter referred to as the "Implementation Policy" ) in accordance with the 
Basic Policy, when the administrato r is to select a Qualified Project pursuant to Article 6 and to select 
a private business operator pursuant to paragraph 1 of Article 7. 
 
2. The Implementation Policy shall specifically set  forth the following matters on the Qualified 
Project: 
 
(i) the matters on the selection of the Qualified Project; 
 
(ii) the matters on the invitation and selection of a private business operator; 
 
(iii) the matters necessary to ensure the appropriate and re liable implementation of the 
project such as the clarification of the responsibilities of private business operators; 
 
(iv) the matters on the location, size and allocation of the Public Facility, etc.; 
 
(v) the matters on the measures to be taken wh en questions arise over the interpretation of 
the project plans or agreements provi ded in paragraph 1 of Article 10; 
 GPA/111 
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(vi) the matters on measures to be taken when difficulties arise in the continuation of the 
project; 
 
(vii) the matters on necessary legislative a nd tax measures, and fiscal and financial 
supports; 
 
(viii) other matters necessary to enable th e implementation of the Qualified Project. 
 
3. When an Administrator of Public Facility et c. has determined the Implementation Policy, the 
administrator shall publicize it without delay.  
4. The provision of the preceding paragraph shall apply mutatis mutandis  to changes in an 
Implementation Policy.  Article 6 Selection of Qualified Project 
 
 An Administrator of Public Facility etc. may select a Qualified Project if the administrator 
finds that it is appropriate for the project to be  implemented pursuant to the Basic Policy and the 
relevant Implementation Policy.  Article 7 Selection of Private Business Operator 
 
1. When an Administrator of Public Facility etc.  has selected a Qualified Project pursuant to the 
provision of the preceding article, the administrator shall select a private business operator which will 
implement the said Qualified Project by methods  such as open invitation for participation. 
 
2. Among the businesses which would be otherwise implemented by the Administrator of Public 
Facility etc. set forth in the preceding paragraph, the private business operator selected pursuant to the 
provision of the same paragraph may implement the provision etc. of Public Facility etc. which has 
been determined to be implemented by the pr ivate business operator in the project plans or 
agreements provided in pa ragraph 1 of Article 10. 
 
Article 8 Objective Evaluation 
 1. The Administrator of Public Facility etc. sh all carry out an objective evaluation (including 
evaluation on the effectiveness and efficiency of  the Qualify Project) when it selects a Qualified 
Project pursuant to Article 6 and selects the private business operator pursuant to paragraph 1 of the 
preceding article, and shall publicize the results. 
 2. When an Administrator of Public Facility etc. selects a private business operator pursuant to 
the paragraph 1 of the preceding article, the administrator must evaluate the operator principally by 
the price, the quality of the services provided to c itizens, and other conditions, in order to fully utilize 
the technology and managerial expertise and inn ovation of the private business operator and to 
provide affordable and good services to citizens. 
 Article 9-1 Resolution by Local Council 
 
 When a local government enters into a contract  pertaining to a Qualified Project, a resolution 
by its local council shall be obtained in advance, pr ovided that the type and cost of the project fall 
within the criteria set forth in the relevant Cabinet Order.   GPA/111 
 Page 7 
 
 
Article 9-2 Consideration for Designation of the Designated Administrator, etc. 
 
 A local government shall, in the case where th e provision of paragraph 3 of Article 244-2 of 
the Local Government Act (Act No. 67 of 1947) a pplies to administration of Public Facility etc. 
provided pursuant to this Act, consider matters pr ovided in the paragraphs 4 to 6 inclusive of the 
article in order to promote the smooth implemen tation of the Qualified Project, and also shall 
endeavor to clarify in advance how to treat the Qu alified Project in the case where paragraph 11 of the 
article applies. 
 
Article 10 Implementation of Qualified Project 
 1. A Selected Project shall be carried out in accordance with its project plan or the agreement 
jointly formulated by the Administrator of Public  Facility etc. and the Appointed Business Operator, 
or with its business plan formulated by the Appoi nted Business Operator al one (including cases the 
Appointed Business Operator is the administrator of the facilities), pursuant to the Basic Policy and 
the relevant Implementation Policy.  
2. When the Appointed Business Operator is a juridical person whose capital injection or 
contribution was made by the national government or a local government (including a juridical person 
whose capital contribution or funding was made by such publicly-funded juridical person), special 
care must be taken to ensure that the responsib ilities of the said Appointed Business Operator are 
clear, and the share of responsibility between the Ap pointed Business Operator and the Administrator 
of Public Facility etc. shall be clearly defined in  the business plan or the agreement set forth in the 
preceding paragraph. 
 Article 11-1 The National Government Debt Burden 
 
 In the case where the national government incurs  a debt arising from a Selected Project, the 
debt shall be paid off within 30 years from the relevant fiscal year. 
 
Article 11-2 Lease of Administrative Assets 
 
1. Notwithstanding the provision of paragraph 1 of Article 18 of the National Property Act 
(Act No. 73 of 1948), the national government may lease, when it finds necessary, to an Appointed 
Business Operator, an administrative asset (meaning an administrative asset provided in paragraph 2 
of Article 3 of the National Property Act;  the same shall apply to the following paragraph to 
paragraph 5 inclusive of this article and to the para graphs 1 to 4 inclusive of the following article) for 
use in the relevant Selected Project. 
 2. In addition to leases prescribed in the preced ing paragraph, in the case where an Appointed 
Business Operator is to own all or part of one buildin g a part of which is the Public Facility etc. of the 
said Selected Project (hereinafter referred to as "Specified Building" in this article), the national 
government may lease, when it finds necessary, to th e said Appointed Business Operator the relevant 
land which is an administrative asset notwithstanding the provision of paragraph 1 of Article 18 of the 
National Property Act to the extent that the lease doe s not prevent the original usage or purpose of the 
asset. 
 3. In addition to the leases prescr ibed in to provisions of preceding two paragraphs, in the case 
where an Appointed Business Operator who has l eased the land which is an administrative asset 
pursuant to the provision of the preceding paragraph is to continue to own the Specified Building 
(excluding the portion which is used as Public Facility etc. of the relevant Selected Project) 
(hereinafter referred to as the "Specified Private F acility" in this article) after the termination of the 
Selected Project (including the termination due to early termination of the contract which was entered 
into to implement the said Selected Project;  herein after the same shall apply in this article and the GPA/111 
Page 8  
 
following article), the national government may, wh en it finds necessary, continue to lease to the 
lessee the said land which is an administrative asset (provided that, in the case of early termination of the contract which was entered into to implement the said Selected Project, the lessee is a person who 
is recognized by the Administrator of Public Facility etc. to be appropriate for the administration of 
the said Public Facility etc. pertaining to the pr operty that was the Specified Private Facility;  
hereinafter the same shall apply in paragraph 8) notwithstanding the provision of paragraph 1 of 
Article 18 of the National Property Act to the extent  that the lease does not pr event the original usage 
or purpose of the asset. 
 
4. In addition to the leases prescribed in pr eceding three paragraphs, in the case where an 
Appointed Business Operator who has leased land  which is administrative asset pursuant to the 
paragraph 2 of this article is to transfer the Specified Private Facility, the national government may 
lease, when it finds necessary, the land which is an administrative asset to the person who is to 
acquire the Specified Private Facility (provided that  the assignee is a person who is recognized by the 
Administrator of Public Facility etc. to be appropria te for the administration of the said Public Facility 
etc.) notwithstanding the provision of paragraph 1 of  Article 18 of the National Property Act to the 
extent that the lease does not prevent th e original usage or purpose of the asset. 
 
5. The provision of the preceding paragraph shall apply mutatis mutandis  to the case where a 
person who has leased the land which is an ad ministrative asset pursuant to the provision of 
paragraph 3 or the preceding paragraph (including the case where it is applied mutatis mutandis  
pursuant to this paragraph) is to transfer the said Specified Private Facility (including the facility that 
was a Specified Private Facility).  In this case, the term "the Administrator of the said Public Facility 
etc.,"in the preceding paragraph, shall be deemed to  be replaced with" the Administrator of the Public 
Facility etc. pertaining to the said Specified Privat e Facility (in the case of transferring facility which 
was Specified Private Facility, "the Administrator of  the Public Facility etc. pertaining to the said 
facility that was a Specified Private Facility")".  
6. Notwithstanding the provisions of the pa ragraph (1) of Article 238-4 of the Local 
Government Act (Act No. 67 of 1947), a local govern ment may lease, when it finds necessary, to an 
Appointed Business Operator, an administrative ass et (meaning the administrative asset provided in 
paragraph (3), Article 238-4 of the aforementioned Act, the same shall apply to in the paragraphs next 
to (10) of this article and (5) to (8) of the next article) to be used in Selected Projects. 
 
7. In addition to the leases prescribed in the preceding paragraph, in the case where an 
Appointed Business Operator is to own all or part  of a Specified Building, a local government may 
lease, when it finds necessary, to the Appointed Bu siness Operator the land which is administrative 
assets notwithstanding the provision of the paragraph 1 of Article 238-4 of the Local Government Act 
to the extent that the lease does not prevent the original usage or purpose of the asset. 
 
8. In addition to the leases prescribed in the preceding two paragraphs, in the case where an 
Appointed Business Operator who has leased land whic h is an administrative asset in accordance with 
the provision of the preceding paragraph is to co ntinue to own the Specified Building after the 
termination of the Selected Project, a local govern ment may, when it finds necessary, continue to 
lease the said land which is an administrative asset to the operator notwithstanding the provision of 
the paragraph 1 of Article 238-4 of the Local Govern ment Act, to the extent that the lease does not 
prevent the original usag e or purpose of the asset. 
 
9. In addition to the leases prescribed in pr eceding three paragraphs, in the case where an 
Appointed Business Operator who has leased land  which is administrative asset pursuant to the 
paragraph 7 of this article is to transfer the Speci fied Private Facility, the local government may, when 
it finds necessary, lease the land which is an administ rative asset to the person who is to acquire the 
Specified Private Facility (provided that the person is recognized by Administrator of Public Facility 
etc. to be appropriate for administration of the Pu blic Facility etc.) notwithstanding the provision of  GPA/111 
 Page 9 
 
 
the paragraph 1 of Article 238-4 of the Local Govern ment Act, to the extent that the lease does not 
prevent the original usag e or purpose of the asset. 
 
10. The provision of the preceding paragraph shall apply mutatis mutandis  to the case where a 
person who has leased land which is administrative asset pursuant to the provision of paragraph 8 or 
the preceding paragraph (includi ng the case where it is applied mutatis mutandis  pursuant to this 
paragraph) is to transfer the said Specified Priv ate Facility (including facility that was Specified 
Private Facility).  In this case, the term "the Admi nistrator of the said Public Facility etc." in the 
preceding paragraph, shall be deemed to be replaced  with "the Administrator of the Public Facility 
etc. pertaining to the said Specified Private Facility  (in the case of the transfer of facility which was 
Specified Private Facility, the Administrator of the P ublic Facility etc. pertaining to the facility that 
was the Specified Private Facility)". 
 11. The provisions of Article 604 of the Civil Code  (Act No. 89 of 1896) and the Articles 3 and 4 
of the Act on Land and Building Lease (Act No. 90 of 1991) shall not apply to leases set forth in 
preceding paragraphs of this article.  
12. The provisions of Articles 21 and 23 to 25 incl usive of the National Property Act shall apply 
mutatis mutandis  to leases set forth in paragraphs 1 to 5 inclusive of this article.  The provision of 
paragraph 2 of Article 238-2, a nd paragraphs 3 to 5 inclusive of Article 238-5 of the Local 
Government Act shall apply mutatis mutandis  to the leases set forth in paragraphs 6 to 10 inclusive of 
this article.  Article 11-3 
 1. In addition to leases prescribed in paragraphs  1 to 5 inclusive of the preceding article, the 
national government may, when it finds necessary,  lease an administrative asset to be used for a 
project to establish a Specified Facility (meaning a facility which fall within facilities listed the 
items (iii) and (iv) of paragraph 1 of Article 2 (e xcluding public housings) (her einafter referred to as 
"Item 3 and 4 Facilities" in this article) and facilities specified by the relevant Cabinet Order as assets 
equivalent to Item 3 and 4 Facilities among assets set  forth in item (v) of paragraph 1 of the same 
article; hereinafter the same shall apply in this ar ticle) that is useful for the implementation of the 
relevant Selected Project (hereinafter referred to as a "Qualified Private Project" in this article) to the 
Appointed Business Operator who implements the Specified Private Project, notwithstanding the 
provision of paragraph 1 of Article 18 of the Natio nal Property Act to the extent that the lease does 
not prevent the original use or purpose of the asset.  
2. In addition to the leases prescribed in the preceding paragraph, in the case where an 
Appointed Business Operator who has leased administ rative property pursuant to the provision of the 
preceding paragraph is to continue to own or use the Specified Facilities pertaining to the Specified 
Private Project after the termination of the Select ed Project, the national government may, when it 
finds necessary, continue to lease to the lessee the said administrative assets (provided that, in the case 
of early termination of the contract which was ente red into to implement the said Selected Project, the 
lessee is a person who is recognized to be appropriate  for the administration of the said Public Facility 
etc. by the Administrator of Public Facility etc. pe rtaining to the facility that was the Public Facility 
etc. of the Selected Project;  hereinafter the sa me shall apply in paragraph 6) notwithstanding the 
provision of paragraph 1 of Article 18 of the Nationa l Property Act, to the extent that the lease does 
not prevent the original use or purpose of the asset. 
 
3. In addition to the leases prescribed in preceding two paragraphs, in the case where an 
Appointed Business Operator who has leased ad ministrative property in accordance with the 
paragraph 1 of this article is to transfer the Sp ecified Facility (including the right to utilize the 
Specified Facility;  hereinafter the same shall appl y in this paragraph), the national government may 
lease, when it finds necessary, the administrative a sset to the person who is to acquire the Specified GPA/111 
Page 10  
 
Facilities (provided that the person is recognized by the Administrator of Public Facility etc. 
pertaining to the said Selected Project to be appropriate for administration of the Public Facility etc.) notwithstanding the provision of paragraph 1 of Article  18 of the National Property Act, to the extent 
that the lease does not prevent the or iginal use or purpose of the asset. 
 4. The provision of the preceding paragraph shall apply mutatis mutandis  to the case where a 
person who have leased an administrative asset pursuant to the provision of paragraph 2 or the 
preceding paragraph (including the case where it is applied mutatis mutandis  pursuant to this 
paragraph) is to transfer the said Specified F acilities (including the right to utilize the Specified 
Facility).  In this case, the term "the Administrator of Public Facility etc. pertaining to the said Selected Project" in the preceding paragraph, shall be  deemed to be replaced with "the Administrator 
of Public Facility etc. pertaining to the said Sele cted Project (in the case of the transfer after 
expiration of Selected Project, "the Administrator of  the Public Facility etc. pertaining to the facility 
which was the Public Facility etc. pertaining to the Selected Project")". 
 
5. In addition to leases prescribed in paragraphs  6 to 10 inclusive of the preceding article a local 
government may lease, when it finds necessary, an ad ministrative asset in use for a Specified Private 
Project to the Appointed Business Operator wh o implements the Specified Private Project, 
notwithstanding the provision of the paragraph 1 of Article 238-4 of th e Local Government Act, to the 
extent that the lease does not prevent the original use or purpose of the asset. 
 
6. In addition to the leases prescribed in the preceding paragraph, in the case where a person 
who has leased an administrativ e asset pursuant to preceding paragraph is to own or utilize the 
relevant Specified Facility used for the Specified Pr ivate Project after the termination of the relevant 
Selected Project, the local government may, when  it finds necessary, lease the said administrative 
asset to the person, notwithstanding the provision of  the paragraph 1 of Article 238-4 of the Local 
Government Act to the extent that the lease does not prevent the original usage or purpose of the 
asset. 
 
7. In addition to the leases prescribed in preceding two paragraphs, in the case where an 
Appointed Business Operator who has leased administ rative asset pursuant to with the paragraph 5 of 
this article is to transfer the Specified Facility used for the Specified Private Project (including the 
right to utilize the Specified Facility;  hereinafter th e same shall apply in this paragraph), the local 
government may, when it finds necessary, lease th e administrative asset to the person who is to 
acquire the Specified Facility (provided that the pe rson is recognized by the Administrator of Public 
Facility etc. pertaining to the Selected Project to  be appropriate for administration of the Public 
Facility etc.), notwithstanding the provision of the paragraph 1 of Article 238-4 of the Local 
Government Act to the extent that the lease does not prevent the original usage or purpose of the 
asset.  
8. The provision of the preceding paragraph shall apply mutatis mutandis  to the case where a 
person who has leased an administrative asset pursuant to the provision of paragraph 6 or the preceding paragraph (including the case where applied mutatis mutandis  pursuant to this paragraph) is 
to transfer the said Specified Facility (including the right to utilize the Specified Facility).  In this 
case, the term "the Administrator of the Public Fac ility etc. pertaining to the said Selected Project" in 
the preceding paragraph, shall be deem ed to be replaced with "the Administrator of the Public Facility 
etc. pertaining to the said Selected Project (in the case of the transfer after termination of the Selected Project, "the Administrator of the Public Facility et c. pertaining to the facility which was the Public 
Facility etc. pertaining to the Selected Project")". 
 9. The provisions of paragraphs 11 and 12  of the preceding article shall apply mutatis mutandis  
to leases pursuant to respective preceding paragraphs of  this article.  In this case, "paragraphs 1 to 5 
inclusive" in paragraph 12 of the preceding article sh all be deemed to be replaced with "paragraphs 1  GPA/111 
 Page 11 
 
 
to 4 inclusive of Article 11-3," and "paragraphs 6 to  10 inclusive" of the preceding article shall be 
deemed to be replaced with "paragraphs 5 to 8 inclusive of Article 11-3".  Article 12 Free Use of National Property, etc. 
 
1. The national government may, when it finds necessary, allow the use of national properties 
(meaning national properties provided in paragraph 1 of Article 2 of the National Property Act) by an 
Appointed Business Operator, as long as such properti es are used for the Selected Project, either free 
of charge or at a cost lower than market price. 
 2. A local government may allow, when it finds necessary, the use of public properties (meaning 
public property provided in the paragraph 1 of Ar ticle 238 of the Local Government Act) by an 
Appointed Business Operator, as long as such properti es are used for the Selected Project, either free 
of charge or at a cost lower than market price. 
 
Article 13 Loan without Interest 
 
1. The national government may make loans without  interest to an Appointed Business Operator 
to be used as a fund for a Qualified Project that  is, the government finds, to highly promote public 
benefit, within the limit of the budget. 
 
2. The national government may use the credit sc reening capability and loan finance capability 
of the Development Bank of Japan Inc. or the Okinawa Development Finance Corporation, other 
governmental financial institutions, etc., when it provides loans without interest pursuant to the 
provision of the preceding paragraph. 
 
Article 14 Consideration to Ensuring Funds and Local Bonds 
  The national government or local government s, as the case may be, shall endeavor for 
obtainment of fund necessary for implementation of Selected Projects, or for arrangement of loans, or to take special consideration for issuance of local bonds within the limits under laws and regulations. 
 
Article 15 Consideration to Acquisition of Land, etc. 
 
 In order to facilitate the acquisition or use of land etc. by an Appointed Business Operator for 
use in a Selected Project, appropria te consideration should be made for acquisition of the land through 
expropriation of the land pursuant to the Compulso ry Purchase of Land Act (Act No. 219 of 1951) or 
other permission under rela ted laws and regulations. 
 
Article 16 Supports 
 
1. In addition to suppor ts provided in Articles 11-2 to 15 in clusive, in order to promote the 
implementation of Qualified Projects, the national government and local governments shall take the 
necessary legislative and tax measures in light of the Basic Policy and Implementation Policies, and 
offer Appointed Business Operators necessary financing and fiscal supports. 
 
2. The measures and supports set forth in the preceding paragraph shall be flexible and 
adaptable in order to accord with the nature and location etc., of the fac ilities to be provided, and 
attention shall paid to ensure that  local governments and Public Corpora tions are able to fully exercise 
their autonomy.  GPA/111 
Page 12  
 
Article 17 Deregulation 
 
 In order to promote the implementation of Qu alified Projects, the national government and 
local governments shall promptly promote the aboliti on or relaxation of their regulations that hinder 
the full utilization of the technical experti se and innovation of private business operators. 
 Article 18 Cooperation 
  In order to promote smooth implementation of  Qualified Projects, the national government 
and local governments and private business operators  shall mutually coopera te with one another, 
through such means as setting up systems for cooperation. 
 
Article 19 Enlightening Activities and Technical Assistance, etc. 
 1. The national government and local govern ments shall promote activities such as 
dissemination of knowledge of, and provision of information on, implementation of Qualified 
Projects, and at the same time, promote enlighten ing activities to gain understanding, consents and 
cooperation of local residents. 
 2. In order to promote smooth and efficient im plementation of Qualified Projects, the national 
government and local governments shall give cons ideration necessary for provision of technical 
assistance to private business operators.  They sha ll also give special consideration for use of 
technology by private business operators, by me ans such as arrangement for use of patented 
technologies. 
 Article 20 Use of Collateralized Real Estate 
 
1. In the case where an Appointed Business Oper ator has acquired real estate subject to security 
interests in order to implement a Qualified Proj ect, and the holder company of relevant security 
interest on the real estate, a company that has pr ovided the real estate as a collateral or a company 
who owns the real estate has posted losses, an am ount equal to the said losses may be appropriated as 
deferred assets in the balance sheet of the compan y at the end of the fiscal year.  In this case 
amortization shall be made by an amount which is not less than evenly split figures at the end of each fiscal year within 10 years after the fi scal year when the acquisition was made. 
 
2. As for application of the provision of pa ragraph (2) of Article 461 of the Company Code 
(Act No. 87 of 2005) in the case where the preceding paragraph applies, "the amount obtained by 
subtracting the sum of" therein shall be deemed to be replaced with "and, in the cases prescribed in 
the relevant Cabinet Office Ordinance, the amount  obtained by subtracting the sum of the amount 
prescribed in the Cabinet Office Ordinance which has been appropriated in the part of asset of the 
balance sheet pursuant to paragraph 1 of Article 20 of the Act on Promotion of Private Finance 
Initiative".  Article 21 The Committee for the Promotion of the Private Finance Initiative 
 1. The Committee for the Promotion of Private Fina nce Initiatives (hereinafter referred to as the 
"Committee") will be set up within the Cabinet Office.  
2. The Committee shall study and deliberate matters th at fall within its authority pursuant to the 
provision of this Act.  In addition, it shall al so study and deliberate situations regarding the 
formulation of Implementation Policies, selection of  Qualified Projects, objective evaluation of those 
projects, and other matters pertaining to provision etc. of national Public Facility etc. through 
utilization of private finance etc.   GPA/111 
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3. Private business operators etc. may submit to  the Committee their opinions on provision etc. 
of national Public Facility etc. through use of private finance etc.  
4. The Committee, when it finds necessary, in th e course of performing its duties set forth in 
preceding two paragraphs, may state its opinions to  the Prime Minister and heads of relevant 
administrative organs, in order to facilitate and c oordinate the provision etc. of Public Facility etc. 
through the utilization of private finance etc. 
 
5. The Prime Minister and heads of relevant ad ministrative organs shall report to the Committee 
measures taken as a result of the receipt of the Committee's opinions set forth in the preceding 
paragraph. 
 
6. The Committee, when it finds necessary for pe rforming its duties, may request heads of 
relevant administrative organs, heads of relevant  local governments, and other relevant bodies to 
provide necessary cooperation such as submission of data, expression of opinions, and explanations.  
In this case, the Committee shall take measures n ecessary for publication of documents which were 
submitted or collected for performance of its duty. 
 
Article 22 The Organization of the Committee 
 1. The Committee consists of nine persons with  relevant knowledge a nd experience appointed 
by the Prime Minister.  
2. Expert advisors may be appointed to th e Committee if such members are necessary for 
studying and deliberating specialized matters. 
 
3. The Committee may set up sub-committees, as necessary.  
4. In addition to what is provided for in the preceding three paragraphs, necessary matters 
relating to organization and operation of the Commi ttee shall be determined by a Cabinet Order. 
 Article 23 The Authorization of Cabinet Order 
 
 In addition to what is provided for in th is Act, matters that are necessary for its 
implementation shall be prescribed by Cabinet Orders. 
 
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