Toyo University PPP Graduate School

The Roles of PPP in Major Disaster Recovery

UN ECE PPP TOS Third Session

April 18, 2011

Sam TabuchiProfessor, PPP Graduate School

Toyo UniversityTokyo, Japan

Toyo University PPP Graduate School

2006 Established 2007 Area Revitalization and PPP Implementation2008 Grant from Min. of Education and Science

Established PPP Research Center* Produced more than 55 graduates: PPP Professionals * Works with central and local govern. offices & committees* More than 30 research partners* Publish periodicals, books and reports* Assist municipalities with PPP Implementation Studies* Host International PPP Forum and other seminars * Alliance with ULI, NCPPP, UF/FSU, FAU, GT, ICMA &

UN ECE TOS PPP PPP Professional Training

The Roles of PPP in Major Disaster Recovery

Recovering with the Minimum Time & Cost

Research Center for PPPToyo University

Tokyo, Japan

Lost: 13,000+ people Missing: 14,500+ people Evacuated: 150,000+ people (At evacuation centers) Buildings: 48,000 totally destroyed

11,000 partially damaged

Most damages caused by Tsunami(Max. height 35m)

Some cities have lost almost 10% of their population Fukushima Nuclear Incident threatening sustainable

community and industries(agriculture and fishery)(Figures are as of April 10)

Damages

Quick Reactive Studyby Toyo Univ. PPP Research Center

Recording “1000 Days Actions”- Record actions taken by the Government, Legislatures, Municipalities, and other disaster relief programs- Objective comparison with Hanshin-Awaji Great Earthquake in 1995

Collecting Data on “Damages Under 6”- Collecting data on damaged buildings/infrastructures with a quake registered Japanese seismic scale 6+or under (Fell short to meet Earthquake/Building Standards in Japan)- Earthquake rose issues of detarioration of public buildings and infrastructures

Published Opinions “Recovering with the Minimum Time & Cost

Using Public/Private Partnership”

Suggestion 1:Calculation of Reconstruction Cost

Calculation of Financial Burden of Reconstruction Cost is necessary for choice and concentration

Toyo PPP Research Center published a “easy-calculation software" for calculating Local governments’ cost for Renewal/Renovation of Public Buildings & Infrastructure (October 2010)

In total, Municipalities in Japan will need approx. $85billon to reconstruct all public buildings and infrastructures in 50 years

Ministry of Internal Affairs and Communication and its auxiliary institute published more in-depth calculation model with Toyo PPP Research Center (March 2011)

Ultimate formula for calculation of whole-of-lifecycle cost with disaster recovery (will be released by Summer of 2011)

0

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1,000,0001,100,0001,200,0001,300,0001,400,0001,500,0001,600,0001,700,0001,800,0001,900,0002,000,0002,100,0002,200,0002,300,0002,400,0002,500,0002,600,0002,700,0002,800,0002,900,0003,000,0003,100,0003,200,0003,300,0003,400,0003,500,0003,600,0003,700,0003,800,0003,900,0004,000,0004,100,0004,200,000

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全体 更新費用

公共施設 上水道 下水道 橋梁 道路 設備・備品 累計

Public Buildings Water Sewage Bridges Roads Facilities/Machines

Cumulative Cost

Reinvestment Cost Estimation for Next 50 years under Normal Occasion (Example of a Town with 30,000ppl)(Hundred Yen)

Total amount of reinvestmentcost for 1 fiscal year

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0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,0001,100,0001,200,0001,300,0001,400,0001,500,0001,600,0001,700,0001,800,0001,900,0002,000,0002,100,0002,200,0002,300,0002,400,0002,500,0002,600,0002,700,0002,800,0002,900,0003,000,0003,100,0003,200,0003,300,0003,400,0003,500,0003,600,0003,700,0003,800,0003,900,0004,000,0004,100,0004,200,000

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全体 更新費用

公共施設 上水道 下水道 橋梁 道路 設備・備品 累計

Public Buildings Water Sewage Bridges Roads Facilities/Machines

Earthquake Shortened the Lifecycle of Buildings and Infrastructures and Multiplied the Cost

Suggestion 2:Establishment of “Reconstruction Agency”

Learn from US FEMA Organization Integrate all governmental organizations

-Land use, Housing, Infrastructure, Transportation, Industries, Agriculture, Fishery, Forestry, Welfare, Healthcare, Education, Finance…

Comprehensive and whole-of-lifecycle planning and project management & delivery (plan, budget, implement, and execute)

Provide administrative supports for public services in severely damaged municipalities

Establishment of Human Resource Bank will enhance utilization of professionals from both public and private

Works with certification, budget, skills, human resources, and cooperation

Minister of

Reconstruction

Prime Minister

Land Use

Planning/Zoning

Transportation

Industry

Agriculture

Fishery

Forestry

Education

Health Care

Labor

Welfare

RECONSTRUCTION PLAN

Board:

Minister of Finance &

Relating Ministers

Human Resource

Bank

Private Companies

Min. of Land, Infrastructure

and Transportation

Min. of Economy, Trade and Industry

Min. of Health, Labour and

Welfare

Min. of Internal Affairs and

Communications

Min. of Agriculture, Forestry and

Fisheries

Coordinator/Advi

sor

DestroyedAreas/ Local Gov

Local Govs

Certification &Budget

Project Management / Delivery

Projects Projects Projects Projects

Suggestion 3:Effective and Broad Use of PFI/PPP

Faster and easier application of PFI/PPP- Shorten/omit some bureaucratic procedures(i.e. If in accordance w/National Reconstruction Plan, shortcut implementation policy study, project qualification testing, and some Assembly procedures)

- Dispatch experienced administrative personnel from other municipalities or public/private organizations

Flexible and wider application of Concession (amending of the PFI Law to implement concession is in progress)

- Apply to non-user-fee projects - Allow municipalities and related organizations to become business operators / concessionaires

Suggestion 4:Intensive Investment on Multi-purpose Community Centers

Put multiple fundamental functions together(i.e. schools, administrative offices, meeting spaces etc.)

Build as skeleton architecture for disaster prevention and flexible adjustment of functions to social needs/demands

National subsidy system prevents municipalities from effective use of buildings/spaces(use of building for other/multi purposes) for long time

Integrative operation of administrative property and ordinary property is required for flexible diversion

Separate Skelton & Infill allows effective uses

InfillFacilities, Interiors

Infill10-30yrs

SkeltonStructures, Ceilings, Floors

Skelton50-100yrs

Flexibility

Easy renovation to meet social demands

Durability

Strong structures for safe and sustainable use

Copyright: 都市再生機構 Urban Renaissance Agency

Suggestion 5:Establishment of Infrastructure Reconstruction Fund

Investment tax credit Issuance of tax-exempt bonds Utilize individual financial assets of ¥1400 trillion

($16 trillion)

INFRASTRUCTURE RECONSTRUCTION

FUND

National/Local

Governments

SPC

(Reconstruction

Program)

Individuals

etc.

Equity Investment

Equity Investment

Investment (ITC)

Buy bonds (Tax Exempt, preferential)

1 Toyo PPP School Submitted the SuggestionsTo the Cabinet Office of Japan in April, 2011

2 Toyo PPP School will continue the study in 2011 & would like to Invite UN PPP TOS to join in the Study

3 Toyo PPP School Plans to Host International PPP Forum in Summer, 2011”The Roles of PPP in Disaster Recovery”

4 Toyo PPP School tries to be the catalyst for establishment of the Specialist Center in The Roles of PPP in Disaster Recovery, Local Government PPP and Others