June 20, 2011
In the previous fiscal year, the Japan International Cooperation Agency (JICA) began the Preparatory Survey for PPP Infrastructure, a scheme for formulating project plans based on proposals from the private sector relating to public-private partnership (PPP) infrastructure projects to be cooperatively implemented by the public sector and the private sector, and two public calls for proposals were made. Most recently, a third public call was made, and eight proposals were selected. (Refer to the appendix: List of Selected Projects.) The third call brought in 18 submissions, the largest number to date, from 40 different corporations. The proposals received spanned a wide range of fields, including railrway, roads, water supply and sewer systems for Asia. The proposals were evaluated and selected based on need, feasibility, the division of responsibilities between the public and private sectors, the likelihood of Japanese ODA financing, effects on development, and other factors.
Cooperative infrastructure projects by the public and private sectors are rapidly expanding on a global scale, with the aim of bringing the energy of the private sector not merely to the initial construction stage of some infrastructure projects but to administration, maintenance and management after construction is complete to further enhance the effects and efficiency of the projects. To formulate an appropriate share of responsibility between government and the private sector in such PPP infrastructure projects, it is important that the two come together at the initial stages of project formulation. Within this scheme, project proposals are solicited from private organizations planning to invest in the private portion of PPP infrastructure projects predicated on the use of ODA assistance. JICA entrusts the study to the organization making the proposal and bears up to 150 million yen for the study expenses. The objective of these studies is to formulate a plan toward project formulation, targeting PPP projects by the public and private sectors.
For public infrastructure projects implemented by the governments of developing countries, JICA so far has provided much cooperation for policy and organization improvement, human resource training such as capacity building in administration, maintenance and management through technical cooperation, and financing for actual infrastructure development. In these recent PPP infrastructure projects as well, private companies and other organizations have high expectations for utilizing the extensive knowledge and experience that JICA has accumulated. In parallel with the studies for the current round of selected projects, various assistance is planned toward successful project completion, including assistance with policy and organization improvements and personnel training for the host country of the infrastructure project.
This study scheme is attracting attention as a concrete advancement measure for “package infrastructure” project development overseas using the strengths of the Japanese private sector, an essential part of the “New Growth Strategy” laid out by the Government of Japan.
Going forward, JICA will advance the architecture of PPP as win-win-win relationships for developing countries, the private sector and ODA while using private sector funding and dynamism to assist with economic growth in developing countries, aiming to provide more effective and efficient aid.