Annual Activity Report(From April 2019 to March 2020)

Asia PPP Institute (APPPI)TOYO University

Organization of Asia PPP Institute (APPPI)

Honorary Advisors
Dr. Mahathir bin Mohamad, the fourth and the seventh Prime Minister of Malaysia
Dr. Yasuko Fukuda, the ninety-first Prime Minister of Japan

Evaluation Committee Members
Dr. Frank Schnidman, the former professor at Florida Atlantic University (FAU) in the
United States
Dr. Khairuddin Abdul Rashid, the former professor at International Islamic University in
Malaysia (IIUM)

Staff
Director: Prof. Sam Tabuchi, Professor of Toyo University, Chair of Working Party on
PPP under the United Nations Economic Commission for Europe (UNECE)
Senior Staff: Ms. Fumiyo Takai (Until November 2019)
Senior Staff: Mr. Yoji Ishii(From February 2020)

APPPI Members (FY2019)<In Japan>-

Chodai Co., Ltd.

-

Daiwa Lease Co., Ltd.

-

Kitakyusyu City, Fukuoka Prefecture-

Eight-Japan Engineering Consultants Inc.

-

Toyama City, Toyama Prefecture

<Overseas>-

Butuan City, the Philippines-

Iriga City, the Philippines

Table of Contents
I.

Executive Summary .............................................................................................................. 1II.

APPPI Activities from April 2019 to March 2020 ................................................................... 2
1. Regional Development Advisory Program (RDAP) / PPP Applicability Study.................... 2
1) RDAP in Luang Namtha Province, Laos: ........................................................................ 22) JICA`s project "SDGs Business Model Formulation Survey with the Private Sector for
Earthquake Resilient Houses with Japanese Prefabrication System for Low Income
Communities”: ........................................................................................................................... 4
2. PPP short-term seminars .................................................................................................... 71) PPP seminar in Shiwa, Iwate for the officials for Ministry of Finance from South Africa in
November 2019: .................................................................................................................... 72) PPP seminar for the officials and the people interested in Butuan city, Philippines in
February 2020:....................................................................................................................... 7
3. Other Activities ..................................................................................................................... 9
1) Attending the International PPP Forum at UNECE (May and December 2019 in
Geneva) : ............................................................................................................................... 92) Attending a PPP workshop organized by Korean Architecture and Urban ResearchInstitute in Seoul and Sejong, South Korea (August, 2019) :.............................................. 103) APPPI Open Seminars (July and October, 2019 and February, 2020): ....................... 11

III. APPPI Evaluation Committee Members and APPPI Visiting Researchers ........................ 13
IV. APPPI Activity Plan in 2020 and onward ............................................................................ 14
Appendix 1: Major Activities from September 2011 to March 2020 ........................................... 15
Appendix 2: APPPI’s Network..................................................................................................... 18

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I.

Executive Summary
Since its establishment in 2011, APPPI has been continuing to grow as a global driver topromote PPP frameworks and PPP-based business development across Asia. Its activities
have been broadening steadily among APPPI targeted countries. The main activities in
FY2019 are as follows.

Prof. Tababuchi, the director of APPPI, participated in the International PPP
Conference in Geneva, chairing working party on PPP under UNECE.



Through Regional Development Advisory Program (RDAP) in Luang Namtha Province,
Laos, the recommendation report for the development was prepared and was
submitted to the relevant parties.



In cooperation with Daiwa Lease Co., Ltd., JICA`s project named as "SDGs Business
Model Formulation Survey with the Private Sector for Earthquake Resilient Houses
with Japanese Prefabrication System for Low Income Communities” was conducted.

Short-term PPP seminars such as the seminar for staff of the Ministry of Finance for
the Central Government of the Republic of South Africa and the seminar for the local
government officers and the faculty of the universities around Butuan City in thePhilippines were conducted.



The APPPI Open Seminar was held three times a year, and the final seminar wasattended by International PPP experts invited from UNECE.

1

II.

APPPI Activities from April 2019 to March 2020

1. Regional Development Advisory Program (RDAP) / PPP Applicability Study
1) RDAP in Luang Namtha Province, Laos
This study was based on a request from Luangpaseuth Tourism Co. Ltd. (LCC), which
was commissioned to develop 35ha of public land from Luang Namtha Province, Laos.
The study has been conducted from August 2019 to January 2020 based on study
contract. The objectives of this study are: (1) to conduct study and make proposals on
optimal regional economic and social development for Luang Namtha Province, and (2)to consider how China's advanced development can be linked to local benefits, and (3)to conserve environments. We made proposals on the utilization of 35ha public land,
including the development of tourism bases, and capacity building on PPP. In
accordance with these objectives, nine people from Toyo University and consultancies
visited the site in November 2019 to conduct a field study to prepare a report for thedevelopment in English, and to submit the report to LCC in February 2020.

<Overview of field survey>
A field survey was conducted from November 3 to 9, 2019. In the field survey, we visited
35ha of public land where LCC will develop, and also visited the town of Luang Namtha
and Bouten bordering with China. Furthermore, we were split into two teams. One team
took part in trekking in Ham Har Conservation Forest, which occupies most of Luang
Namtha Province, and the other team visited three ethnic minority groups. In addition,
we visited 10 departments of the Luang Namtha Provincial Government to hear about
policies and business issues in each department. In Vientiane, we visited the World Bankand UNICEF to hear about educational issues and the related projects for ethnic
minorities. We also interviewed with the Forestry Bureau of the Ministry of Agriculture
and Forestry to hear about domestic policies for forest conservation. Furthermore, we

2visited JICA Laos office to share the knowledge on this study. Based on the results ofthese field surveys, PPP training program for Luang Namtha Province and proposals forthe development plan of the province were finally made.
From February 8 to 11, 2020, a debrief meeting in terms of the use of public land washeld. There was a total of 25 participants, including the governor of Luang Namtha
Province, Deputy Governor of the Province, and CEOs of LCC. Prof. Tabuchi advised
about the land development plan based on the report. In addition to the development of
tourist facilities on the land, the proposals of the development aimed at making the land
a comprehensive regional development center. Those ideas were well received by local
stakeholders. We visited the JICA Laos office in Vientiane and explained about the
RDAP project being carried out in Luang Namtha by Toyo University. We also visited theEmbassy of Japan in Vientiane to hear about development issues in Laos.

Group shot at PPP seminar

Planned development site3

<Summary of the report>
Luang Namtha Province needs to lead future development based on its uniquecharacteristics, taking into account available natural resources, and cultural diversity, etc.
Specific policies are needed in order to promote the development. In addition, the project
has value beyond just tourism development and will enhance other areas, including easy
access to education for ethnic minorities. This is a great opportunity to improve various
sectors at all the level. Under the principles of sustainable development, a clear vision,
its related strategy, and its action plan are needed to collaborate between LCC and theprovince. Luang Namtha is currently at a critical crossroads for the future development.

Report session at Luang Namtha

Elementary school for the ethnic minority

2) JICA`s project "SDGs Business Model Formulation Survey with the Private Sector for
Earthquake Resilient Houses with Japanese Prefabrication System for Low Income
Communities”
The study has been conducting with Daiwa Leasing Co., Ltd. under a contract with JICA
from May 17, 2019 to September 30, 2020. The purpose of the study is to understandthe necessity to develop the housing more secure and reliable by the Indonesian
government and the relevant parties involved in the housing construction projects inIndonesia, and to make proposals for additional studies on housing laws and regulations
and to conduct temporary construction in the event of natural disaster like an earthquake.

4The aim is to develop housing products for low-income communities that can also be
provided as housing for long-tern residence, and to develop PPP business model for
housing for low-income communities, including the development of public housing by
local governments. This project is based on experiences and findings of previous JICA`sproject “Policy Research for Promoting PPP Projects in Indonesia” conducted by Toyo
University from 2016 to 2019. The role of Toyo University in this current project is to (1)examine a proposed PPP business model, (2) develop a logic for contributing to theSDGs, and (3) check consistency with our ideas proposed for existing disaster recovery
policies in Indonesia. Two field studies in Indonesia have been completed so far. The
outline is as follows.

<Field study in June 2019>
The first field study of this project was conducted from June 23 to 28, 2019. We inspectedpublic housings in Jakarta. There are two types of housings. One is developed by thestandard of (RISHA) of the research institute for the Ministry of Public Works andHousing (PUSKIM), and the other is developed by the National Housing Supply
Corporation (PERUMNAS).
We visited the World Bank Indonesia office to interview with the case officers withregards to housing for low-income communities and housing for recovery against theearthquake and tsunami in Central Sulawesi in 2018. We visited Bandung city tointerview with the research institute of the Ministry of Public Works and Housing, theBandung Institute of Technology (ITB), and the West Java Development Planning
Bureau (BAPPEDA) to collect significant information on housing for disaster recovery
and low-income communities.

5

Low-cost house made of bamboo by ITB

Inspection tour for RISHA`s house<Field study in February 2020>
The second field study of this project was conducted from February 23 to 28. We had ameeting with representative for Japanese companies and local companies in Indonesia
to exchange opinions on the Indonesian domestic marketability for housing for lowincome communities. We visited the JICA Indonesia office to report on the progress ofthe study. We visited PUSKIM to exchange opinions on technical aspects such as the
structure and specifications of house for low-income communities. We visited Bandung
Branch office for the Ministry of Public Works and Housing (PU) to exchange opinions
on PPP schemes related to the housing development in Bandung City. We visited
Bank Negara Indonesia (BNI) to hear about the investment and finance strategies andthe current status of dealing with Japanese companies operating in Indonesia. We
visited a private construction company to hear about the building standards and thesignificant points in the construction sector in Indonesia. We had a meeting with the local
developers of the Jakarta Real Estate Association (HIMPERA) and interviewed for local
situation for the development of real estate sector in Indonesia.

6Dialogue meeting at Bandung PU

Technical Meeting at PUSKIM

2. PPP short-term seminars
1) PPP seminar in Shiwa, Iwate for the officials for Ministry of Finance from South Africa in
November 2019
The development of 10.7 hectares of public land in front of Shiwa-Chuo Station requires
minimum financial burden or without financial burden on the development. We
introduced the history of constructing and operating daycare center, library, restaurant,
supermarket, café, hospital, and lodging facilities, and gave a lecture on the usefulnessof PPP schemes in the development projects with the limit of the budget.

2) PPP seminar for the officials and the people interested in Butuan city, Philippines in
February 2020
The National PPP Conference including PPP training for the local participants was held
in Butuan City. The conference had more than 120 attendees, including the Mayor of
Butuan, the central government officials of the Philippines, local government officials
inside and outside Butuan City, and local university officials. We introduced 1) RDAP
projects implemented by Toyo University and give several lectures on sustainable
development towards SDGs for local communities. They were given by Prof. Tabuchi,
Assoc Prof. Namba, and Mr. Pedro Navas, a PPP expert from the United Nations
Economic Commission for Europe (UNECE), invited by Toyo University from overseas.

7

As a part of this National PPP conference, the field trip to visit several sites for RDAP
was held. We visited several pilot sites, such as a small hydropower station, an eel farm(with an eel processing facility), a water supply facility, and a rice milling facility, which
are being implemented on the outskirts of Butuan City. Then we exchanged the opinionswith the mayor and the city officials.

Opening at National PPP ConferenceOver 120 attendees at the conference

Small hydropower facility

Rice milling facility3) Study tour for Miyako City and SDGs and PPP seminar for Shiwa Town in Iwate
Prefecture in February 2019
We visited Miyako city and exchanged opinions with the city officials. As one of therecovery plans after the Great East Japan Earthquake 2011, the priority area for theplan to use of renewable energy from natural resources was raised in this city which is
promoting smart community projects as a significant component of recovery plan. Then8the self-reliant power supply system was developed with a capable system of supplying
necessary energy in the event of disaster.
We visited at Shiwa Town, which is preventing population decline and developing a local
community through the promotion of public-private partnerships for the use of public
land in front of Shiwa central railway station. We exchanged opinions with the town
officials, including the town mayor, and gave a lecture on community projects in termsof SDGs (Sustainable Development Goals) to the officials in the town.

Lecture for SDGs at Shiwa town hallGroup shot with Mayor of MIYAKO City
3. Other Activities

1) Attending the International PPP Forum at UNECE (May and December 2019 in
Geneva) :In November 2018, the director of APPPI, Prof. Sam Tabuchi, became the chair of the
UNECE working party on PPP. In response, he chaired at the International PPP forum
held in May and December in 2019 and proceeded with these meetings. At that time, he
explained the necessity of “People First PPP” through the explanation of activities related
to PPP promoted by Toyo University. In addition, Mr. Satoshi Kato, a graduate of the
PPP School at Toyo University, who was appointed as a visiting researcher at APPPI,
was sent to UNECE's PPP Technical Committee in November 2019 for a year period.

9

For this reason, we would like to further contribute to improving APPPI's presence andpromoting PPP projects worldwide through the introduction of Japan's PPP projects andthe initiatives by Toyo University.

2) Attending the PPP workshop organized by Korean Architecture and Urban ResearchInstitute in Seoul and Sejong, South Korea (August, 2019) :We visited at South Korea from August 19 to 23, 2019 to interview with organizations
related to PPP in South Korea. In the first visit to Busan, we had a meeting with the
Korea Asset Management Corporation (KAMCO) and visited Busan Port Authority to
see the redevelopment project in North Busan Port. Afterwards, we visited Ulsan
University of Science and Technology, which was developed using the BTL method. In
Sejong City, we visited the Institute of Land and Housing Corporation of South Korea(LHI), Institute of Architectural and Urban Space (AURI), and PIMAC which is the central
institution of PPP in South Korea. Finally, in Seoul, he interviewed two construction
companies participating in the PPP business (Hyundai Construction Co., Ltd. and the
EGA Group), and visited the site of Cheonggyecheon Stream Restoration Project.
In South Korea, 724 projects of PPP have been implemented in various sectors during
23 years from 1995 to the end of 2018, with a total investment of about 118 trillion won(about 11.8 trillion yen). The strengths of the South Korean PPI are easy to understandlegal system, the process, and various guidelines exist. The feasibility for business issecured for each project, and the verification system is set especially for large-scale
projects. The central government is also highly committed. In addition, international
communication capabilities involving joint research and publishing with internationalorganizations such as ADB are far superior to Japan. One of its strengths is to use ofpension funds other than the governmental budget for public infrastructure development
and redevelopment. On the other hand, one of the issues facing PPP in South Korea is10that the number of projects has been declining since 2011. This was due in part to a
decline in the willingness of private companies to participate due to the abolition of the
Minimum Revenue Guarantee (MRG) system in 2009, and to the social reaction against
additional fiscal expenditures under the MRG.
Also, local residents might not be able to agree with social values and the purpose oflarge-scale infrastructure development projects.
It seemed to raise public distrust for the PPP business. In the near future, a decline in
the birthrate and aging speed in South Korea would be even faster than in Japan. Most
public infrastructures built during the high growth period of the 1980s and 1990s need
to be renewed simultaneously. We hope that PPP projects in South Korea will be
developed in terms of a bird's-eye view of how infrastructure development needed will
be carried out within a declining budget.

3) APPPI Open Seminars (July and October 2019, and February 2020)
APPPI open seminars were held in July and October in 2019 and February in 2020. At
the first seminar in July, we explain the outline of RDAP in Luang Namtha Province andChina`s Belt and Road Initiative in Laos. We also reported the outline regarding the Asia
Future Conference in May and the summary interviewed with Dr. Mahathir bin Mohamad,
Prime Minister of Malaysia, APPPI Honorary Advisor.
At the second seminar, two guests (Dr. Ron Carlee from Old Dominion University, and
Mr. Roger Munter from Citizens' Cooperation Director, Arlington County, Virginia) wereinvited from the United States at the International PPP Forum. We openly discussed
what public participation and consensus building should be.
At 3rd APPPI seminar, Pedro Navas (PPP Advisor for UNECE) and Claudio Meza
(Deputy Director-General for PPP Promotion, UNECE) were invited as guest speakers.
We discussed the significance of Toyo University's RDAP and its relevance to the11People First PPP Program and SDGs promoted by the United Nations. Through several
inspection tours for RDAP projects supported by APPPI, we exchanged views on
evaluation of the projects in terms of "Sustainable Regional Development".

3rd APPPI Open seminar

Group shot with guest speakers
from UNECE

12

III.

APPPI Evaluation Committee Members and APPPI Visiting Researchers

1) APPPI Evaluation Committee Members
The following two experts kindly accepted to be members of the APPPI Evaluation
Committee, which provided advice and suggestions on APPPI's activities.
Dr. Frank Schnidman, the former professor at Florida Atlantic University in the US

Dr. Khairuddin Abdul Rashid, the former professor at International Islamic University
Malaysia in Malaysia2) APPPI Visiting Researcher
From November 2019, the following three people have been appointed as APPPI
visiting researchers to promote APPPI activities widely. Mr. Kato has been seconded to
the UNECE's PPP Technical Committee since November 2019 to work through theUnited Nations. Mr. Oura contributes to the promotion of PPP projects in the Philippines,
as the head of the development project in Butuan City in the Philippines, which
implemented RDAP projects in 2011. Mr. Fujiki contributes to the promotion of the PPP
schemes through various writing activities, as well as teaching at PPP School at Toyo
University as a visiting professor on financial analysis of the PPP business.
- Dr. Kato Satoshi (6th graduate of PPP School at Toyo University, Chodai Co., Ltd.)- Mr. Masayuki Ohura (6th graduate of PPP School at Toyo University, Chodai Co., Ltd.)- Mr. Hideaki Fujiki (3rd graduate of PPP School at Toyo University, Visiting professor of
PPP school at Toyo University)

13

IV.

APPPI Activity Plan for the 2020

The table below shows activity plans from April 2020 to March 2021.
Date
April 2020

APPPI Research/Study-

APPPI Activity

Study on the reduction of UN
vehicle management costs
under a contract with
UNHCR (Budapest, etc.)

May-

International PPP Forum (Addis
Ababa) by UNECE PPPTechnical Committee

June

-

1st APPPI Open Seminar-

2nd APPPI Open Seminar

October-International PPP Forum(Toyo University)

December-International PPP Forum(Geneva) by UNECE PPPWorking party

January-

3rd APPPI Open Seminar-

PPP seminar in the Philippines-

Development of Annual Report

September-

Submission of the Finalreport for JICA`s project"SDGs Business Model
Formulation Survey with thePrivate Sector for
Earthquake Resilient
Houses with JapanesePrefabrication System for
Low Income Communities”.

-

Field study of Omiya bicycle
racing track in Saitama

2020
February-

Follow-up study in the Butuan
city in the Philippines

March

14

Appendix 1: Major Activities from September 2011 to March 2020
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 honorable
advisors
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
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 Bandung and Surabaya, Indonesia
2014

February

TOYO PPP held International Academic Competition for TOUHOKU recovery

September

PPP seminar held in Japan for government officials from the Republic ofKyrgyz2015

February

RDAP/PPP Applicability Study in Cebu Province, the Philippines

March

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

August

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

15

2016
February- RDAP/PPP Applicability Study in the State of Kedah, Malaysia- PPP seminar held in Ho Chi Minh, Vietnam

May

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

June

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

AugustThe 1st field visit to Indonesia on JICA Policy Recommendation Research2017

February

PPP seminar held in Pretoria and Cape Town, South Africa

March- RDAP/PPP Applicability Study in Iriga City in the Philippines- The 2nd field visit to Indonesia on JICA Policy Recommendation Research

June- Meeting between Dr. Mahathir bin Mohamad and Mr. Yasuko Fukuda,
APPPI Honorary Advisors

September- The 3rd field visit to Indonesia on JICA Policy Recommendation Research

December- PPP training and site visits for the government officials from Indonesia in
Japan
2018

February- The 4th field visit to Indonesia on JICA Policy Recommendation Research

March- Follow up visit of RDAP/PPP Applicability Study in Cebu province andMandaue city, the PhilippinesMay- The 5th field visit to Indonesia on JICA Policy Recommendation Research

June- PPP seminar held for South African central government officials in Tokyo

August- PPP seminar held for local government officials in Cebu, the Philippines

September- The 6th field visit to Indonesia on JICA Policy Recommendation Research

November- The director of APPPI, Prof. Sam Tabuchi, became the co-chair of UNECE
PPP Working Party- The 7th field visit to Indonesia on JICA Policy Recommendation Research2019

February

The 8th field visit to Indonesia on JICA Policy Recommendation Research

16MarchSubmission of the final report for JICA Policy Recommendation ResearchMay

Attendance for the International PPP Forum (Geneva) by the UNECE PPPTechnical committee

June- Preliminary study on local regeneration support program in Luang Namtha
Province, Laos
- 1st field survey on JICA`s project “SDGs Business Model Formulation Survey
with the Private Sector for Earthquake Resilient Houses with JapanesePrefabrication System for Low Income Communities in Indonesia”

AugustStudy tour for PPP in South Korea

SeptemberStudy tour for PPP in the United States

November- Implementation of field survey on local revitalization support program in Luang
Namtha Province, Laos
- Conducted PPP seminars for the officials of Central Government of South
AfricaDecember

Attended for the International PPP Forum (Geneva) by the UNECE PPPWorking party

2020
February- PPP seminar (National PPP Conference) was held in Butuan City, Philippines,
and the inspection tour for local pilot sites was conducted.
- The debrief meeting on development plan for the public land and Luang
Namtha Province was held.
- The study tour for Miyako City and Shiwa Town in Iwate Prefecture wasconducted.
- APPPI Open seminar (The relationship between RDAP projects by Toyo
University and SDGs in the United Nation) was held.
-2nd field survey on JICA`s project “SDGs Business Model Formulation
Survey with the Private Sector for Earthquake Resilient Houses withJapanese Prefabrication System for Low Income Communities inIndonesia”

17Appendix 2: APPPI’s Network18