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Private
Finance Initiatives (PFI) in Transportation and Policy Responses
—Development of Transportation Facilities by Private
Finance Initiatives—
(March 22, 2002)
Transportation Policy Committee |
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The
financial crisis plaguing both central and local governments
has triggered criticisms of public works projects and intensified
social demands for the utilization of private resources in
developing social infrastructures. The Transportation Policy
Committee specifically examined the potential of the private
sector in delivering transportation infrastructures, and identified
political issues that must be addressed for this undertaking.
The major focus of the study was placed on the concept of
private finance initiatives (PFIs), which was officially introduced
in 1999 as a method of harnessing private sector resources
for the development of infrastructures. More specifically,
the committee closely examined issues concerning the application
of PFI to transportation infrastructures and consequent policy responses.
In Japan, local autonomies took the lead in acknowledging
the significance of PFI, and applied it mainly to the construction
of buildings. Therefore, its potential to develop larger facilities
as transportation infrastructures that would require vast
sums of money and a prolonged construction period needed to
be assessed.
Based on this awareness, the committee offers proposals on
(i) PFI in general, (ii) solicitation and selection of private
sector businesses, and (iii) utilization of PFI in the transportation
sector. These proposals, combined with general problems of
PFI, form the basis of the committee’s policy proposal
for utilizing PFI in transportation projects. |
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