July 30, 2012
In FY 2010, the Japan International Cooperation Agency (JICA) introduced 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. On March 19, 2012 the first call of FY 2012, and the fifth in total, was made, and seven proposals were selected. (Refer to the appendix: List of Selected Projects.)
This time, 44 corporations submitted 19 proposals, including those relating to four new countries such as Cambodia and Mozambique. The proposals spanned to a wide range of fields, including ports, electric power, water supply and sewerage systems, railways, highways and agriculture. The proposals were evaluated and selected based on the necessity, feasibility, the division of responsibilities between the public and private sectors, the probability 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 an aim of bringing the expertise of the private sector not merely in the construction stage of infrastructure projects but also during operation and maintenance stage to further enhance the effects and efficiency of projects. To formulate an appropriate division of responsibility between the public and the private sectors in such PPP infrastructure projects, it is important that the two come together at the initial stages of project formulation. With 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, as 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 infrastructure projects by the public and private sectors.
JICA will continue to advance the architecture of PPP towards win-win-win relationships for developing countries, the private sector and ODA through provision of more effective and efficient aid. At the same time, it will promote JICA's role of catalyzing Japan's private sector funding and dynamism to assist economic growth in developing countries, which have enormous demand for infrastructure investment.