Even after a master plan such as the above has been formulated, we must continue to collaborate with citizens, and schedule appropriate plan implementation, evaluation and improvements, while continually monitoring developments.

## Section 2 Supported by Everyone

As seen in Chapter 1, the maintenance, management, and upgrade of social infrastructures cannot be left to public entities. Instead, various entities, including private sectors, must get involved in furthering the initiatives that are 'Supported by Everyone,' now more than ever before.

In this section, we will first discuss the utilization of the private sector’s capital and know-how, namely PPP/PFI in terms of the maintenance, management, and upgrade of social infrastructures. Next we will introduce initiatives where regional residents—who are usually on the side that reap the benefits of social infrastructures—have gotten involved in maintaining and managing social infrastructures.

## Using PPP/PFI for Maintenance and Management

PPP (Public Private Partnership) is the concept that captures a wide range of private sector participation in some form of public service provision. It is the method of using the private sector's capital and know-how to improve efficiency in developing public facilities and raise the standards of public services. Some of the primary methods are, the PFI method, the designated manager system, and the comprehensive work consignment to private sector (Figure 2-2-1). In this White Paper, we will discuss and analyse two of the PPP approaches, the PFI method (includes concession method) and the comprehensive work consignment to private sector.

Figure 2-2-1 Primary PPP Method

Method	Summary	Basis Laws	Facility ownership	Funding	Example of deployment field
PFI method	A method to construct, maintain, manage, and operate public facilities through utilization of private finance, management abilities and technical capabilities.	PFI Act (1999)	Government/Private	Private	Publicly-owned residential and government buildings, etc.
Concession	Concession is a grant of rights to the private businesses to operate the public facilities that collect (usage) fees while the public entity continues to possess their ownership.	PFI Act Amendment (2011)	Government	Private	Airport, Road, sewage system, etc. (scheduled)
Designated administrator system	A system in which a designated administrator (corporations that local governments designate) acts over the management and operation of public facilities. Due to a legal reform, the management (entity) of the public facilities is opened up extensively to private businesses, NPO organizations, etc.	Local Autonomy Act Amendment (2003)	Government	Government	Parks, harbors, etc.
Comprehensive Work Consignment to Private Sector	Regarding management and operation duties of public facilities and the like, by refraining from determining the details of the operation of business and according to the efficiency-ordering method in which the operation is outsourced to a group of private industries, one may provide effective services that capitalize on the creativity and ingenuity of the private sector.	—	Government	Government	Sewage, etc.

Source) MLIT

## (1) Trend of PFI

PFI (Private Financial Initiative) is the method of developing and operating social infrastructures efficiently and effectively through utilization of private finance, management abilities and technical capabilities for the construction, maintenance, management, and operation of public facilities. The main characteristic of this method is that instead of the public entity, the private sector is responsible for funding the project. Since the establishment of ‘Act on Promotion of Private Finance Initiatives (PFI Act)’ in 1999, the number of PFI projects that published an enforcement policy as of September 2013 was 428 projects, with total project costs exceeding JPY4.2819 trillion (Figure 2-2-2).

Out of these projects, the number of PFI projects that have gone into effect that are related to MLIT are—as of January 2014—a cumulative total of 120 projects. The projects were mainly enterprises concerning government buildings and public housing. In terms of public housing, efforts to introduce the funds and initiative of the private sector had been