Under the significant direction of strategic infrastructural operation known as “selection and intensification,” we need to advance, as individual management strategies, the innovative approaches that are different from those in the past; namely more efficient infrastructure management through the introduction of new advanced technology, review of regulations and programs for that, as well as the establishment of new fund raising methods, etc. The major infrastructure management methods implemented so far include those of the designated administrator system, the comprehensive entrustment to private entity, the utilization and exploitation of the infrastructure by the private sector, the promotion of PFI, the consolidation of infrastructure, project coordination, wide-area coordination, privatization, etc. The following are their respective present statuses:

(a) The designated administrator system and system of comprehensive entrustment to a private entity

The designated administrator system is a system under the Local Autonomy Act, where a designated administrator (a juridical person designated by local government) shall perform development and management of a public facility on behalf of the local government with regard to public facilities intending to promote the welfare of the local residents. Private enterprises, various juridical persons and other organizations can be designated as a designated administrator, who shall comprehensively perform the maintenance, management, establishment of usage fees, etc., pertaining to the entire facility.

This particular system aims at improvement, etc., of user services and financial conditions through the adaptive operation of the infrastructure by using know-how held by private business operators, etc. Since it was introduced in September 2003, this system has been utilized in the management of public facilities such as urban parks, public housings, etc.

On the other hand, the system of comprehensive entrustment to a private entity is to provide services by entrusting a series of works to private businesses by the performance requirement order method, without providing details of business operations, so that the service can be provided efficiently by utilizing innovations of private businesses.

This has been utilized mainly in the maintenance and management of sewage treatment plants. The number of bodies implementing the system has been increasing year by year, amounting to 118 in fiscal 2009. In addition, approximately 10% cost reduction effect in average by the longer contract terms (about 90% is on 3-year contract (6-year the longest)) and by the fulfillment of know-how by private business. In recent years, also with regard to sewer pipeline facilities, aging of facilities has been advancing while municipalities are facing their tight state of finance and declining number of officers. Therefore, the needs for low-cost renovations utilizing the know-how of the private sector have increased. It is planned to implement in fiscal 2012 a model project under the system of the comprehensive entrustment to private entity in which the survey, repair, renovation, etc., will be ordered in a package, so that the advancement of, as well as the creation of guidelines for, the specific methods can be examined.

(b) Utilization and exploitation of infrastructure by the private sector

By opening the infrastructure to the private sector, methods to effectively use the existing stocks have been put into operation. For example, with regard to road spaces, opening to the private sector has been carried out, within the range approved based on their element of public nature, etc., such as using an area under the elevated structure as a parking area, in spite of restricting the use as a rule from the viewpoint of securing proper road management and favorable urban area, etc. The "Information BOX", which is installed under the road for housing the optical fibers for road management, also has been opened to private telecommunication business operators unless it would interfere with facility management (approx. 18,000km opened by the solicitation held in fiscal 2011). Also as for the river spaces, the proprietary use was approved only for the cases where public entities such as local governments, public benefit service operators, etc., install facilities of a public nature or serving public interests, such as park, sports ground, bridge, power transmission line, etc. Since 2004 when deregulation was made on the proprietary use of full-riverbed area, as social experiments that is limited only to the designated areas (8 areas including the Dotonbori River and the Hori River), special provisions concerning proprietary use (deregulation) also started to be admitted in the case where a private business operator installs event facilities, dining facility on board, etc.

Chart. 162 Status of introducing the designated administrator system in urban parks

Note: Number of nationwide urban parks amounted to 98,392 in 2009. Source: MLIT

Chart. 163 Record of introducing the system of comprehensive entrustment to a private entity for sewage treatment plants

Note: 1 Nationwide sewage treatment plants: 2,136 (as of the end of fiscal 2009) 2 Targets are the entrustment projects on multiple-year contract Source: Developed by MLIT based on the “Sewage Statistics (2006 – 2009)”