In the field of airports, the Law concerning the Administration, etc. of State-Managed Airports, etc. Leveraging Private Resources came into effect in June 2013 to allow concession-based management of state-managed airports, etc. Pursuant to this Law, a basic business scheme plan was published at Sendai Airport in November 2013, followed by the publication of an implementation policy in April 2014. The airport management entity was selected on public invitation in fiscal 2014. Outsourcing of port management is scheduled to start during fiscal 2015 (Figure 3-3). In the meantime, Kansai International Airport and Osaka International Airport entered into an administrative merger in July 2012.

under control of New Kansai International Airport Co., Ltd. in a bid to revitalize Kansai International Airport as an international hub airport and expand demand for air transportation through appropriate, effective utilization of both airports. The new-born airliner is committed to keeping the two airports under consolidated management to augment their business values and realize the implementation of concessions at both airports as soon as practicable.

In the sewerage field, “Guidelines for the Implementation of Business Operations, etc. of Public Facilities, etc. in Sewerage Works (draft)” was formulated in March 2014 through discussions at an expert council to support local governments, sewerage systems management bodies, in their effort to pursue concession-based management of sewerage systems. Updates to the Guidelines are scheduled to reflect issues, etc. evolving in the course of pursuit of specific tasks while efforts continue to promote its broader dissemination.

As for the concession-based management of toll-road businesses by Local Public Road Corporations, efforts are underway to realize the concept of a structural reform special zone proposed by Aichi Prefecture by working in conjunction with the government ministries and agencies concerned to reflect findings of its review.

## (2) Expanding scope of comprehensive work consignment to private sector

In its bid to address the challenges of ensuring the mid- and long-term availability of HUMAN RESOURCES to work for the construction industry, correcting dumped order-taking, maintaining and managing local social infrastructures and so on, the MLIT has decided to abandon its previous adherence to a uniform scheme of tendering and contracting and promote the introduction and practice of a choice of more diverse tendering and contracting methods selectable to meet the needs of the

times and characteristics of the projects. Starting from fiscal 2014, the Ministry has started subsidizing the local governments working with such new tendering and contracting methods in their model projects. Among these new methods, comprehensive work consignment to private sector (multi-year contracting, multi-service batch ordering) aims to provide a precise maintenance and management solution to local social infrastructures. The Ministry has a policy of promoting the wider dissemination of diverse tendering and contracting methods, etc., including comprehensive work consignment to private sector, by preparing purchaser documentation that reflects the accomplishments of implementation.