## (PPP/PFI Widely Utilized in Overseas Countries)

In overseas countries starting in the UK as its birth place, introduction of PPP/PFI has been proactively promoted to deal with the issue to address both the public investment and the fiscal soundness. Especially, the infrastructure fund is widely adopted overseas as a fund procurement mechanism for infrastructure improvement. The infrastructure fund is a type of fund in which money is raised from investors in a form of investment in infrastructure such as roads, railways and ports and harbors. The total value of fundraising amounted to 44.2 billion dollars in the peak year of 2007. Although the amount has dropped due to the economic crisis, it is once again showing signs of recovery after 2010. Because investment in infrastructure involves a relatively small risk and is suitable for long-term investment, fund operation by pension and insurance institutions by means of infrastructure fund has been expanding in Australia, Canada, UK, etc.

Chart. 179 Fundraising for Unlisted Infrastructure Funds

Source: Developed by the MLIT based on “2012 Preqin Global Infrastructure Report”

Chart. 180 Infrastructure Investors' Ranking (2010)

Investor	Location of head office	Investment amount for the past 5 years (million dollars)
1	Macquarie Group	Australia	30,655.0
2	Goldman Sachs	USA	9,100.0
3	Alinda Capital Partners	USA	7,000.0
4	Industry Funds Management	Australia	7,000.0
5	Ontario Municipal Employees Retirement System	Canada	6,221.9
6	Caisse de dépôt et placement du Québec	Canada	6,110.9
7	Brookfield Asset Management	Canada	5,777.0
8	Global Infrastructure Partners	USA	5,640.0
9	Ontario Teachers Pension Plan	Canada	4,862.2
10	Highstar Capital	USA	4,300.0
11	Canada Pension Plan Investment Board	Canada	4,250.0
12	Morgan Stanley	USA	4,000.0
13	Arcus Infrastructure Partners	UK	3,564.4
14	Citi Infrastructure Investors	USA	3,400.0
15	ABP	Netherlands	3,190.8

Source: Developed by MLIT based on "The Infrastructure Investor 30 2010"

There are about 700 PFI projects (reported to the HM Treasury) that were contracted by November 2011 in the UK, whose business asset value amounts to about 540 billion pounds (approx. 7 trillion yen)

In respect of the set period, “20 years or more and less than 40 years” accounts for 90% and, by category, the Department for Education and the Department for Health account for 50%.

Further in November 2011, the British Government concluded an agreement with two pension funds in the UK (the National Association of Pension Funds and the Pension Protection Fund) to perform environment improvement such as building the PPP platform that encourages new investments in infrastructure. The government also set the target of the additional investment to 20 billion pound (approx. 4 trillion yen), indicating further expansion of PFI projects.

Chart. 181 Transition of PFI Projects in UK

Chart. 182 Period Setting for PFI in the UK

☐ Less than 10 years

☐ 10 years or more and less than 20 years

20 years or more and less than 30 years

30 years or more and less than 40 years

40 years or more

☐ Unknown

Note: As the “40 years or more” and the “Unknown” each accounts for less than 1%, no figures are shown in the graph.

Source: Developed by MLIT based on HM Treasury data