involvement procedures in the planning phase of public works projects under MLIT jurisdiction." According to the guidelines, MLIT promotes public involvement in all the processes from proposal formulation and planning to implementation.

## ○Ensuring appropriate biddings and contracts

As far as public works projects under the direct control, MLIT has expanded technical capabilities-oriented competitive bidding, incorporated covenants or clauses concerning violation penalties in contracts, and implemented a blanket introduction of electronic bidding. The ministry has also prodded local governments to take steps to ensure appropriate biddings and contract.

## [Effecting a shift in focus from the public to the private sector for better efficiency]

## ☐ Promoting PFI

MLIT is committed to promoting the private finance initiative (PFI). This idea is to make good use of private finances and capabilities for more efficient and effective development and management of infrastructure and better quality public service delivery.

## ○Making better use of the existing infrastructure stock

MLIT is committed to making better use of the existing infrastructure stock for better service delivery. For more efficient and effective management of such stock, the ministry promotes the use of an integrated assess management approach that is designed to standardize the replacement cycle of infrastructure and curtail total cost by optimizing the management and replacement of infrastructure.

○Encouraging the involvement of the community, NPO and private sectors in managing infrastructure, including the operation of local public transport

It is important to manage infrastructure—including the operation of local public transport—from the viewpoint of the beneficiary, that is, the people. MLIT encourages the involvement of the community, NPO and private sectors in such infrastructure management as part of efforts to effect a shift in focus from the public to the private sectors. Specifically, MLIT continues to explore new ways to manage public facilities.

## ○Streamlining administrative procedures

MLIT has already taken a number of steps to ensure better service for the public and businesses and for streamlined and efficient management of the public sectors. Such steps include: the introduction of a system that makes it possible to submit applications on-lines to government agencies; the adoption of a one-stop service (single window) system for procedures regarding import and export, port use, car ownership; and the introduction of unified standards for government buildings service.

## ○ Reform of quasi-governmental corporations

In relation to 13 corporations under the MLIT jurisdiction, the Diet passes bills that reorganize these and other semi-governmental bodies into private businesses or independent administrative institutions by 2003.

MLIT is committed to implementing the Reorganization and Rationalization Plan for Special Public Institutions (Cabinet decision in December 2001). The ministry is working hard to reform the four highway-related public corporations in accordance with the Cabinet decision in December 2002 “Reform of the Four Highway-related Public Corporations, International Hub Airports and Policy-based Finance Institutions” and an agreement reached between the government and the ruling parties in December 2003 on “the basic framework for the privatization of four highway-related public corporations.”

## [New partnership between the central and local governments]

MLIT is phasing in flexible standards that allow for local governments to cut costs and make appropriate choices in light of local realities (introduction of local rules). The ministry is also promoting dialogue between the central and local governments through The Regional Block Strategy Meeting and other channels.

MLIT is trying to abolish or reduce state subsidies and pressing ahead with reform so as to allow for more autonomy for local governments.