International Workshop of PPP (Public Private Pertnership) in Tokyo
November 15, 2009
The International Workshop of Public Private Partnership (PPP) took place at the Keio University Mita Campus G-SEC Lab on November 15, 2009 with Keio University/Kyoto University Joint Global COE Project Leader Naoyuki Yoshino and Osaka University Associate Professor Nobuo Akai presiding. The workshop examined raising the market quality of public policy through the introduction of private-sector funds, with reports by six domestic and foreign experts and lively debate among approximately 45 participants.
University of California, Berkeley Department of Economics Professor John Quigley presented quantitative analyses of the economic effects of green office buildings in the United States. The analyses found that while making office buildings green increases rents, benefits are gained over the long term from the consequent reductions in electricity consumption and in the volume of CO2 emissions, and that therefore the construction of buildings with green equipment is being promoted in the U.S.
Keio University Faculty of Economics Professor Naoyuki Yoshino reported that the need to introduce private-sector funds to upgrade infrastructure is a timely issue, and proposed PPP where some funds are invested by the government with the remainder covered by the private sector, and in particular the use of convertible bonds with an interest-rate floor, which are attractive to investors. Mitsubishi Global Strategic Studies Institute Project Engineering Department General Manager Toru Mihara explained the reasons for PPP, which include growing fiscal deficits as well as the need for efficiency improvements, project transparency, more efficient construction expenses and shorter construction periods. Mihara presented concrete examples from Japan, and introduced the advantages and disadvantages of PPP. Stanford University Collaboratory for Research on Global Projects (CRGP) Executive Director Ryan Orr explained the concept of PPP in the United States, giving specific examples in the three categories of (i) projects implemented by the government, (ii) projects implemented by the private sector, and (iii) projects jointly implemented by the government and the private sector. Ernst & Young Shinnihon LLC Senior Manager Toru Watanabe introduced the privatization process in Japan to date, including the lack of political leadership and other reasons why PPP has not been promoted in Japan. Monash University Faculty of Law Professor Graeme Hodge introduced the merits of PPP from a theoretical perspective, and reported case studies from Australia. He stressed the importance of PPP governance, strategy, efficiency, speed and follow-up evaluation.
