### Chart.172 Transition in Public Work-Related Expenditure/Social Security-Related Expenditure

(Increase in Needs for PPP/PFI)

Source: Developed by MLIT based on the “Japan’s Flow of Funds Accounts” (Bank of Japan) and “2010 Family Income and Expenditure Survey Report (Savings & Debts)” (MIC)

In addition to the projects executed by national government, subsidized projects of local public authorities, and local independent projects that have been the major implementation methods of the public works, developing the new environments is necessary to grow the PPP (Public-Private Partnership)/PFI (Private Finance Initiative) into the "third column" where private funding, knowledge and human resources are utilized. The PPP/PFI projects can mainly include the comprehensive private consignment, the designated administrator system, the PFI method, and the concession system. MLIT, in the "MLIT Growth Strategy Council Report" drawn up in 2010, mentions formation/implementation of specific projects.

### Chart. 174 Major PPP Methods

Method	Outline	Facility ownership	Funding	Example of applied field
Comprehensive private consignment	Management and operation of public facilities, etc., are comprehensively outsourced to the private sector.	Administration	Administration	Sewage
Designated administrator system	System aiming to improve quality of public services for public facilities through use of know-how of the public sector, etc.	Government	Government	Ports and harbors
DBO method	Method in which the public sector provides for financing and design, construction and operation are outsourced to the private sector	Government	Government	Sewage
PFI method	Method to perform construction, maintenance/management, operation, etc. of public facilities, etc. by using private funding and managerial/technical capabilities	Government/ private	Private	Public housing
Concession method	Method to grant the long-term infrastructure business right to the private entities without transferring the ownership of the public facilities	Government	Private	Airport (scheduled)

emphasizing airports, harbors, etc. as well as proactive supports to commercial use of administrative assets. Further with regard to the cost of MLIT-related PPP/PFI projects, a total amount of 2 trillion yen is newly subject to implementation up to 2020. In response to the MLIT'S growth strategies, in the ordinary Diet session of 2011, the "Ports and Harbor Act" was amended to establish the port management company system, the "Act on the Integrated and Efficient Establishment and Management of Kansai International Airport and Osaka International Airport" was established for concessional use of Kansai and Osaka Airports, and the Act on "Special Measures Concerning Urban Renaissance" was amended.

Promotion of use of private fund is stated also in the government’s New Growth Strategy (approved in cabinet meeting on June 18, 2010), specifically including:

• To aim to expand the PFI projects by at least 10 trillion yen over 11 years till 2020 (more than twice the value of the conventional scale of projects.

• In order to realize the above, to implement an expansion of the PFI system during FY2010 including, for example, introduction of the concession method.