Annual Activity Report(From April 2016 to March 2017)

Asia PPP Institute (APPPI)TOYO University
1Organization of Asia PPP Institute (APPPI)
Honorary Advisors
Dr. Mahathir bin Mohamad, the fourth Prime Minister of Malaysia
Dr. Yasuko Fukuda, the ninety-first Prime Minister of Japan

Director
Prof. Sam Tabuchi, Professor of Toyo University, Vice-chair of the Executive Board toUN PPP Team of Specialists under UNECE (The United Nations Economic Commissionfor Europe)
Senior Staff
Ryuji Takeda (until February 2017)
Fumiyo Takai (from April 2017)

APPPI Members (2016)<In Japan>-Kitakyusyu City, Fukuoka Prefecture-Eight-Japan Engineering Consultants Inc.

-Saitama Prefecture-Kyoritsu Maintenance Co., Ltd.

-Kiso-Jiban Consultants Co., Ltd.

-Mr. Takashi Okazaki, Tokyu-Fudosan R&D Center Inc.

-Toyama City, Toyama Prefecture<Overseas>-Butuan City, the Philippines-Iriga City, the Philippines2

Table of Contents

I.

Executive Summary.................................................................................................... 4

III. APPPI Activities from April 2016 to March 2017 .......................................................... 51.

Regional Development Advisory Program (RDAP)/PPP Applicability Study ............ 51)

RDAP/PPP Follow-up Study in Butuan City, the Philippines ................................ 52)

JICA Policy Proposal Research Program on PPP in Indonesia: ........................... 53)

RDAP/PPP Applicable Study in Iriga City, the Philippines: ................................... 72.

PPP short-term seminar (South Africa).................................................................... 81)

PPP seminar for the Ministry of Finance visited Japan in May 2016 .................... 82)

PPP seminar for local government officials in South Africa in February 2017....... 93.

V.

Other Activities ........................................................................................................ 91)

Debriefing Session of RDAP/PPP Applicability Study in Kedah, Malaysia............ 92)

Invitation of a Professor from International Islamic University Malaysia (IIUM) ... 103)

United Nations CoE Local Government Network Event ..................................... 10APPPI Activity Plan in 2017 and onward ................................................................... 12

Appendix 1: Major Activities from September 2011 to March 2017................................... 13
Appendix 2: APPPI’s Network .......................................................................................... 143

I.

Executive Summary

Since its establishment in 2011, while this year marks the 5th year of its foundation, APPPI
has been continuing to grow with faith in going ahead with the mission to be a global driverto promote a notion of PPP framework and PPP-based business development across Asia,and its activities have been broadening steadily among APPPI target countries. The main
activities in 2016 represent as follows;A three-year contract was signed between Toyo University and JICA on Policy
Advisory Research Studies on PPP and toward the implementation of PPP projects

Based on the above contract, 2 field visits to Indonesia were conducted

RDAP/PPP Follow-up Study in Butuan City, the PhilippnesRegional Development Advisory Study (RDAP)/PPP applicability study (simplifiedresearch) in Iriga City, the Philippines

Two PPP seminars to the government officials of South Africa

Invitation of a professor from International Islamic University Malaysia (IIUM)

United Nations CoE Local Government Network EventA MOU was signed between Cebu Province, the Philippines and Toyo University

4

III.

APPPI Activities from April 2016 to March 2017

1. Regional Development Advisory Program (RDAP) /PPP Applicability Study
1) RDAP/PPP Follow-up Study in Butuan City, the Philippines
APPPI study team conducted RDAP/PPP Follow-up Study in Butuan City, thePhilippines from 10th to 14th of August, 2016. This research, which was originallyconducted in 2011, became actual projects operated by Chodai Co. Ltd. in cooperation
with a local company. This follow up study was accompanied by Saitama TV crews
from Japan to capture the on-going various projects, such as mini-hydro power plants,biomass power plants, development of an industrial park, rice farming and the farmingof eels.

In addition, these projects were introduced to Japanese Prime Minister, Mr. Abe when
he visited Dabao City, Mindanao Island, the Philippines in January 2017.

2) JICA Policy Proposal Research Program on PPP in Indonesia:<The 1st Field Visit: August 28th to September 4th, 2016>
Based on the 3 year (2016-2019) contract between JICA and Toyo University on policy
proposal research on PPP in Indonesia, APPPI proposes on the policies and systems
to promote PPP in Indonesia at the local government level through identifying
bottlenecks and capacity enhancement of local government officials on PPP. In the 1st
field visit, which was held between August 28th to September 4th, 2016, the researchteam visited Surabaya city and Sidoarjo city to interview government officials as well asto observe PPP projects.

In Surabaya city, the research team observed 3 ongoing projects studied by Japanesecompanies to analyze the possibility of applying PPP methods in each project. As a5

result, the research team found out that the City Mayor was not favoring PPP and thelocal government of Surabaya had a tendency not to apply PPP methods to theirprojects due to its complex and time consuming administrative processes. Therefore
the research team suggested that the local government transfer its facility operationand management to the private sectors after the facility is built by the local government
as a regular public project to reduce the facility management costs. The research teamalso proposed to the local government to utilize public incentives to attract the privatesectors.

In Sidoarjo city, the research team conducted PPP applicability study on theconstruction of a public hospital. As a result, the research team identified relevance andfeasibility with a 3-6% of VFM (Value for Money). In addition, idle land was identified
around the hospital through the field visit.
Therefore the research team proposed thewider comprehensive development plan touse the idle land, by considering future
population growth and the development of
the railway network.

Members attended the 1st field research<The 2nd Field Visit: February 28th to March 8th, 2017>
The 2nd field visit was held between February 28th to March 8th, 2017 in order tofeedback the findings from the 1st visit in Surabaya and Sidoarjo, as well as to conduct
a PPP applicability study on the tourism industry at Flores Island. West Manggarai
Regency, where Flores Island is located, enjoys various tourism resources, including
Komodo dragon (an animal that only exists in Flores Island), crater lake with 3 different
colors, beautiful beaches and an ocean as a high quality diving spot. On the other hand,6the research team identified that there was inadequate infrastructure in hardcomponents (road, water and waste water management, electricity etc.) plus softcomponents (human resources in the tourism industry etc.) and it had issues inaccessibility to sightseeing spots and few promotions to attract tourists. Based on thefindings, the research team proposed a regional development plan focusing on thetourism industry that aims simultaneous management of tourism development
spearheaded by the private sector and infrastructure development promoted primarily
by the public sector.

The 3rd field visit is planned in August 2017 in order to follow up the research findings
and PPP trainings are considered for Indonesian government officials to improve theirknowledge and skills on PPP.

3) RDAP/ PPP Applicable Study (Simplified Research) in Iriga City, the Philippines:
APPPI carried out a RDAP/PPP Applicability Study (Simplified Research) in Iriga City,
the Philippines from 9th to 11th of March 2017 based on the request from the City Mayoron 4 development issues; 1) Circumferential Road, 2) Water Supply System, 3)
Organic Agriculture, 4) Two Mini-Hydro Power Projects.

In the Circumferential Road plan, the research team felt that it lacked consideration
toward future city (land) development and road users. Therefore it proposed Iriga city todevelop an urban master plan and road network plan to align with the zoning and themaster plan. The research team also mentioned the idea of restricting heavy vehicles
entering the city center by classifying the width and function of roads. In the Water
Supply System, the research team proposed the promotion of rainwater use byintroducing subsidies for setting water tanks at households as an example and7

improvement of the ratio of tariff collection from piped households. As for Organic
Agriculture, the research team assessed the high efficiency of the agricultural centerestablished by Iriga city. Considering the limitation of its budget, it proposed the PPP
method that Iriga city “sells” know-how and licenses to the private sector for a certain
fee and private sector. As city officials did not understand much about the Two
Mini-Hydro Power Projects, the research team listed the required technical analysis
and consideration points. In addition to the above 4 development issues, the researchteam identified the high quality performances of dancing, singing and a cheerleadinggroup, which performed in a World Competition and proposed to promote it asentertainment industry.

2. PPP short-term seminar (South Africa)
1) PPP seminar for the Ministry of Finance visited Japan in May 2016
APPPI conducted a PPP seminar for 8 officials from the Ministry of Finance, SouthAfrica on 26th May 2016, while they visited Japan as a part of JICA technicalcooperation assistance program. In the seminar, Prof. Nemoto, the Director of theResearch Center for PPP, explained
the Japanese PPP system and its
expanding business market, while Prof.
Tabuchi,theDirectorofAPPPI,

presented the Regional Development
Advisory Program (RDAP) conducted
in

Asian

countries

andhealsoMembers attended the PPP seminar

introduced world PPP trends.

82) PPP seminar for local government officials in South Africa in February 2017
APPPI held a PPP seminar for 40 local government officials in Pretoria University andCape Town University in South Africa from 11th to 19th February 2017. In Pretoria,
APPPI inspected public land development project around Tembisa station and thedevelopment of Gautrain (a high speed train) and utilized them as the group work ofPPP seminar and analyzed the current issues of each project. In Cape Town, APPPI
visited a project on medical waste management and conducted a PPP seminar using 3
ongoing PPP projects as the materials for group work.

JICA South Africa office plans to conduct another study tour to Japan under thetechnical assistance project to the Ministry of Finance in May 2017. APPPI will also be
invited to hold another PPP seminar in Yokohama as well as instructing the site visit toShiwa town, Iwate Prefecture.

3. Other Activities1) Debriefing Session of RDAP/ PPP Applicability Study in State of Kedah, Malaysia :Toyo University PPP School / APPPI demonstrated the research findings of RDAP /PPP applicability study in the State of Kedah, Malaysia to its government officials,
including Dr. Mahathir, APPPI honorary advisor in front of various high officials fromJapanese companies on 30th May 2016. The research team presented a SWOTanalysis of Kedah State. Its well-developed and maintained infrastructure, stable
governance and security, and being a moderate Muslim state were identified asstrengths and opportunities, while the influence and presence of Government Related
Companies were listed as a weakness and threat. Based on the situational analysis,
the research team proposed practical projects in 6 development fields for Kedah State;
1) High tech industry (Industrial park), 2) Agriculture, 3) Rubber industry, 4) Halal

9industry, 5) Tourism/MICE and 6) Transportation (planned new airport and public
transportation). The research team highly evaluated the introduction of a Halal
hospitality standard certified by Malaysian government. They stressed the opportunityof Halal industry and MICE sector development, considering the growing Muslimpopulation in Asia and Africa on top of the 1.6 billion Muslims worldwide, while using theposition of a stable Muslim state. At the end of the session, APPPI handed the report toDr. Mahathir.

2) Invitation of a Professor from the International Islamic University Malaysia (IIUM):
APPPI invited Dr. Khairuddin Abdul Rashid, who is a quantity surveyor, specializing inconstruction procurement, from the International Islamic University Malaysia (IIUM) tohold special lectures. He lectured about the construction business market and issues
on public infrastructure projects using PPP methods in Malaysia at the PPP School. He
also mentioned about the Halal industry which has expanded rapidly in Asia. On 6thOctober 2016, he also gave a lecture at the main campus of Toyo University on politics,economy, ethnic and religious issues of Malaysia. About 30 students from abroad aswell as Japanese students joined the lecture to have active discussions on the sense of“integration” in cohabitation among different ethnicities and cultures as well as the roleof the younger generation helping Malaysia become a developed country.

3) United Nations CoE Local Government Network Event:On 26th October 2016, United Nations CoE Local Government Network Event was heldby Toyo PPP (composed of PPP Research Center, APPPI and Toyo PPP School) tocelebrate its 1st year since it was accredited as an International Specialist Centre ofExcellence

on

PPPs

inLocalGovernments in October 2015. Under

10Signed MOUs to promote cooperation

its activities, APPPI aims to promote regional economic development with PPP
methods by crosslinking Japanese local governments and companies with societies inAsia. In this particular event, Toyama City, Saitama Prefecture, Itakura Town (GunmaPrefecture) sent their representatives, while Butuan City, Iriga City and Puerto Princesa
City were invited from the Philippines. During the event, a MOU on promoting thecooperation was signed between Toyo PPP and Toyama City, Itakura Town and Butuan
City. In addition, Toyama City and Butuan City made a special agreement to promotemutual cooperation on top of the MOU.

11IV.

APPPI Activity Plan in 2017 and onward

A table below shows the activity plan for April 2017 to March 2018.
DateApril
2017

APPPI Research/Study

APPPI Activity- Observation visit to the US on
waste water concession

May- Presentation at UN CoE PPP Forumin Hong Kong
- PPP seminar for Ministry of Finance inSouth Africa (Yokohama)- Meeting with City Mayor of Iriga, thePhilippines- Workshop for APPPI members

June- Meeting between Dr. Mahathir and Dr.
Fukuda (APPPI honorary Advisors)- Dr. Mahathir visits Toyo Universityand discusses issues with studentsJuly- APPPI Open Seminar

August- 3rd visit to Indonesia on JICA
Policy Proposal ResearchProgram- MOU signing between JICA and Toyo
University on PPP

SeptemberOctober- PPP Applicability Researchon toll road between Phnom
Penh and Bavet- International PPP Forum- Workshop for APPPI members

January2018
February- APPPI Open Seminar- 4th visit to Indonesia on JICA
Policy Proposal Research
Program- 2nd RDAP/PPP Applicability
Study in Iriga, the Philippines- PPP follow up in Butuan, thePhilippines

March- Development of Annual Report

12Appendix 1: Major Activities from September 2011 to March 2017
Date

APPPI Activity
2011

September

RDAP/PPP Applicability Study in Butuan City, the Philippines

November- Establishment of APPPI- Dr. Mahathir and Chancellor Shiokawa inaugurated as APPPI honorableadvisors
2012

January

PPP seminar held in International Islamic University Malaysia (IIUM) andKarjasama Awam Swasta (UKAS) in Malaysia

February

Prof. Tabuchi named Vice Chair of the Executive Board to UN PPP Team ofSpecialists

March

PPP seminar held in Butuan, the Philippnes

August

RDAP/PPP Applicability Study in the Republic of Kyrgyz

September

RDAP/PPP Applicability Study in Mandaue City, the Philippines

November

APPPI First Anniversary Event held
2013

February

PPP seminar held in Manila, the Philippines

April

PPP research conducted for rehabilitation of Palais des Nation (PdN)

September

PPP seminars held in the MPI and NUCE in Hanoi, Vietnam

November

PPP seminars held in Bangdong and Surabaya, Indonesia
2014

February

TOYO PPP held International Academic Competition for TOUHOKU recovery

May- Presentation at 1st Asia Pacific Conference on PPP at Incheon in Korea- Presentation of Report for rehabilitation of PdN at UN in Geneva

September

PPP seminar held in Japan for government officials from Republic of Kyrgyz
2015

February

RDAP/PPP Applicability Study in Province of Cebu, the Philippines

13

March

PPP seminar held in Hanoi, Vietnam (MPI and NUCE)

August

RDAP/PPP Applicability Study in Surigao del Norte, the Philippines
2016

February- RDAP/PPP Applicability Study in State of Kedah, Malaysia- PPP seminar held in Ho Chi Minh, Vietnam

April

Contracted with JICA on Policy Proposal Research Program in Indonesia(2016 – 2019)May

PPP seminar held for the officials of the Ministry of Finance, South Africa

JuneRDAP/PPP Applicability Study findings reported to State of Kedah officials at
the 34th JAMECA-MAJECA Joint Conference

August- Follow up visit of RDAP/PPP Applicability Study in Butuan, the Philippines- 1st field visit to Indonesia (Surabaya and Sidoarjo) on JICA Policy Proposal
Research Program2017

February

PPP seminar held in Pretoria and Cape Town, South Africa

March- RDAP/PPP Applicability Study in Iriga City, the Philippines- 2nd field visit to Indonesia (Sidoarjo and Flores) on JICA Policy Proposal
Research Program

Appendix 2: APPPI’s Network

IUK/IPA – UK
Fin Infra – France
Universities
IIUM

Indonesia

14

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