Spring 2013

Top Headline

Gearing UP for
the Second Year
Co-honorary advisors; Dr. Mahathir bin Mohamad,
former Prime Minister of Malaysia and Dr. Shiokawa,
Chancellor of Toyo University celebrated APPPI’s 1stanniversary with guests from Kyrgyz Republic andMandaue City, Philippines (Nov. 16, 2012)

Spring 2013 Newsletter
The first year of APPPI activities marked
significant success. We have earned strong
recognition and reputation from international
PPP community.
In May 2012, we officially launched membershipprograms. For our members, we provided seriesof lectures, visit opportunities to countries of
their interests, case studies and potential projects
they might be able to participate.
During the summer, APPPI conducted two
research trips in Asia, one in the Kyrgyz Republic
and the other in Mandaue City, Philippines. In
both studies, we found some possibilities toenhance economic growth through PPPs. In
Kyrgyzstan, we found it possible to implement
PPP in Bishkek City parking lot. Some otherpossibilities can be street lighting combined withthe parking lot and agricultural logistics centers.
In Mandaue, we proposed PPPs in their threemajor problems; solid waste management, roadcongestion, and seasonal flooding. Some otherpossibilities can be improvement of tax collection,school renovations, and industrial development.
In November, we celebrated our first anniversary
with before Dr. Mahathir and Dr. Shiokawa.

During the first year of activities,
APPPI has caught interests frommany Asian nations. Several of ourearliest partnering countries are
Malaysia and the Philippines, andwe expand our activities to Kyrgyz
Republic, Indonesia, Vietnam andmore.

Featured Article
Improving Legal Frameworks in PublicPrivate Partnerships an inside look at how
Asian jurisdictions are improving PPPsystems.
by Gary Miller
read more on page 2 and 3...
Highlights of APPPI’s Activities in the Year
Oneby Yu Namba
read more on page 4...

Contact us:
Asia Public-Private Partnership Institute
TOYO University Otemachi Satellite
Shin-Otemachi Building 1F 2-2-1, Otemachi,Chiyoda, Tokyo, Japan 100-0004
TEL: +81-3-3231-1039
Email: ml-ppp@toyo.jp

Page 2Improving Legal Framework
In Public-PrivatePartnerships
By Gary Miller
The Asia and Pacific region requires
infrastructure investment of at least $8trillion through 2020. The public sector
alone, even with financing frommultilateral development banks, cannot
meet the growing demand for new
infrastructure and rehabilitation ofexisting assets. Public-private
partnerships (PPP) are one of thesolutions to this huge challenge. PPPs
are a way of mobilizing not just financial
but also managerial and technicalresources of the private sector to provide
efficient and optimized public services.
The Importance of Clear PPP
Guidelines and Policy Framework
Most governments have developed
PPP laws and legislation on themanagement of government activities
with regard to the use of PPP methods
to develop and implement projects.
Without clear guidelines or legal
framework, the private-sector is simply
not capable or willing to assume thesubstantial risk burden that results fromlarge-scale, long-term PPP investmentsthat lack transparency and clarity.
Countries Are Improving PPP
Legislation to Promote Private-Sector
Investment
Throughout the Asia-Pacific region
and around the globe, countries are
improving their legal framework for

PPPs in order to promote private-sector
investment. Lessons learned from thepast two decades are being used toenact laws and legislation that create
greater risk sharing, fair competition, andbalanced contracts. Industry experts areconsistently striving to make importantchanges and improve the PPP
landscape that will encourage expanded
use of PPPs in developing solutions tomeet the rising infrastructure gap. Below
are five (5) critical elements mostcountries are addressing through newlegislation:
Providing clear definition of competitive
bidding and unsolicited proposal
processes.
Providing fair and balanced government
contract terms and conditions.
Establishing credit guarantee structuresthat will facilitate private financing.
Providing guidelines for project legal
structures (BOT, concessions, F/DBO,
management contracts, andprivatization).
Ensuring transparency and fairness incompetitions.
The table on the following page provides
a comparison and review of selected
countries with mature PPP frameworkand those with emerging economies andprograms.

Page 3

Improving Legal Framework in PPP (cont’d)
By Gary Miller
PPP Law

Law Name

Date
EnactedHighlights

Australia

N--

No specific law but very advanced PPP Policies
and Guidelines in place

ChinaY

Government
Procurement
Law2002Provides PPP policy and guidelines for privatesector participation and ownership

Philippines

YRA7718

2006

JapanYPFI Law-Indonesia

YLaw No. 13

2010

MalaysiaY

PPP Guideline

2000

ThailandY

B.E. 2535

1992

VietnamY

Decree 108

2009

India

Y

PPP
Guidelines

2006

Korea

Y

PFI Act

2008

CountryConclusions
There is no doubt that PPPs will be a
key strategy in the development ofinfrastructure projects and programs inthe years and decades to come. The
Asian Development Bank has made astrong commitment to encourage private
sector participation in the developmentof the Asia Pacific region and has also
identified various legislative and legal
framework changes necessary toaccelerate the use of PPPs. Recentstudies show an increasingly open
environment for PPPs, though with

Government-sponsored PPP Center in place
along with improved legislation
Have use older PFI framework but need toenact greater PPP policies and promotion
Early Asia region pioneer of PPPs using theconcession model – advanced stage
Provides policy framework and guidelines for
public-private partnerships
Early PPP participant that is now revamping
legislation after several failed projects
New legislation developed and PPPs beingheavily promoted
Booming PPP market with government
legislation developed by each State
Private Participation in Infrastructuredeveloped but requires improvement andexpansion

individual countries at different stages ofdevelopment as highlighted above.
Developing and implementing enabling
legislation and framework for complex
PPP arrangements is no easy task.
However, by using the lessons learned
during the past two decades on some ofthe very first PPP projects, we canencourage continuous improvements toPPP laws and guidelines that will
facilitate a “win-win” scenario for boththe public and private sectors.

Page 4Highlights of APPPI’s Activities
in the Year One
By Yu Namba(Visit our Website http://www.apppi.net/ for details)

During the course of its first year, APPPI proved its
presence in Asian PPP networks. It has organized
two major research trips in Asia; Kyrgyz Republic in
August and Mandaue City, Philippines in September.
Kyrgyzstan Research—For the country ofKyrgyzstan and other public sectors such as City ofBishkek, APPPI conducted a research trip toevaluate PPP legislation and 7 project possibilities
as well as holding a two days seminar program. In
this research, the team found many obstacles in thecountry to implement PPPs, but few projects havepossibilities to proceed to F/S studies. Some otherprojects can be executed through supports frominternational aid organizations such as JICA.
(This research and seminar was sponsored by JICA)
Mandaue Research—Locating in Metro Cebu,
Mandaue City is one of the largest industrial cities
in the country. The city intended to solve several
issues through PPP—solid waste management,
congestion, and flooding. The study team also
found possibilities to enhance tax revenue,
improvement of educational infrastructures,
reducing industrial wastes and creating newindustry through partnerships with private sectors.
APPPI also conducted the following activities:
PPP Intensive Course:
In collaboration with International Islamic
University Malaysia and Bandun Institute ofTechnology in Indonesia, APPPI held a one day
intensive PPP lectures in Indonesia.
PPP Seminars/PPP Project Finding Lectures:
We hosted seminars/lectures for members andnon-members in June, July, September, January,February and March.

PPP research and a seminar was held inKyrgyz Republic

PPP Possibility study in Mandaue City,Republic of the Philippines