Newsletter #2
This is our second newsletter for the PPP Web Tokyo Conference 2007.
1. Current status of our Web Conference
(a) Members
We now have 7 specialists contributing to the discussion, including members from the U.K., France, Australia, World Bank, European Investment Bank and others.
(b) Invitations to Non-Members
We are now opening the door for others to join us. Discussions are mainly held through the mailing list and then uploaded to the website afterwards, so please refer to the website to see the current ongoing discussions. If any reader of this newsletter is interested in joining as a member, please email your comment to us on the "Join the discussion" page and we will welcome you as a new member. Additionally, we welcome all introductions by current members.
2. The Latest Discussion
(a) Theme 1
The role of PPP unit Our Moderator, Mr. Um from the World Bank, initiated the discussion and comments followed from the member from Australia, and the one from UK.
(b) Theme 2
Tendering In this discussion we are considering the criteria for evaluations, the system of evaluations, and how to proceed with dialogue among bidders. The member from the Cabinet Office of Japan is taking the role of the moderator.
(c) Theme 3
Value for Money We have just started the discussion about what the drivers of VFM are with the member from UK as the moderator.
(d) Theme 4
Finance We have also just started to discuss the situation of various financing methods and its difficulties with the member from EIB.
3.Recent topic related to PFI/PPP in Japan
Recently, PPP/PFI projects concerning hospitals and prisons have increased in Japan. These kinds of projects are requiring specific know-how of facility operations, not only for the bidders, but also the public sector side. The staff in the public sector who must make output-specifications will face the difficulties with their lack of experience and know-how. Therefore, it has come to be considered very important to have a good understanding or communication between the public and the private sectors before and during tendering process.
On November 22, 2006, directors from PFI Liaison Conference of the Relevant Ministries and Agencies met to hold in order to come to an agreement concerning "active dialogue between the public and private sectors" and finally the agreement was announced on the same day. During the meeting members referred to the EU’s competitive dialogue and discussed more detailed procedures as well.
The new rules focus on the projects with heavy weight on operational management of facilities, such as hospitals and prisons. According to the rules, it is desirable to have two evaluation stages. Firstly, consortiums were evaluated by their score so as to narrow down the number of candidates to more than three. Secondly, each selected candidate consortiums will have dialogue with the public sector one by one, so as to implement actual needs to their proposals. In the new agreement, dialogue particularly between the consensus on risk allocation and assumed facility design is strongly focused.