January 10, 2012
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 three public calls for proposals have been made so far. On Sept. 15, the second public call this fiscal year, and the fourth total, was made, and eight proposals were selected. (Refer to the appendix: List of Selected Projects.) For this public call, 14 proposals were made by 37 different corporations spanning a wide range of fields including electric power, water, waste, rail and highways in various countries, among which four are proposed for the first time under this study scheme including Sri Lanka and Iraq. 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 strength of the private sector not merely to the initial construction stage of some infrastructure projects but to administration, maintenance and management after construction completed 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, and because JICA will commission studies to the parties making the proposals, JICA will bear a maximum of 150 million yen of the study costs. The objective of these studies is to formulate a project plan, targeting PPP projects by the public and private sectors.
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.