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Ministry of Land, Infrastructure, Transport and Tourism
Quality Infrastructure Investment forAccountability, Legitimacy and Sustainability
Shiho SAKAI
Director for International Negotiations Management
Ministry of Land, Infrastructure, Transport and Tourism
20 March, 2017
Today’s Points of View
1
1. Quality Infrastructure Investment policies in JAPAN
2. Japanese Government’s ‘Quality Infrastructure Investment
Initiatives’ for International Society
Purple Line in Bangkok, Thailand Fujiwara Bridge in Ehime, Japan
( Weathering steel bridge)
1-1:The Priority Plan for Infrastructure Development
We have the Priority Plan formulated to promote the infrastructure
development projects in an intensive, effective and efficient manner
in accordance with the “Act on Priority Plan for Infrastructure
Development (Act No.20 of 2003)”
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RoadsTraffic safety
facilitiesAirports Ports/
HarborsUrban parks CoastsSteep
slopeFlood
managementSewage
Criticism against the nine plans・The plans resulted in loss of flexibility in budget allocation.
・Vertically-segmented planning made mutual
collaboration difficult.
・The plans were no more than a means for acquiring budget.
Criticism against infrastructure development• Prioritization of projects and efficiency of operation
were not promoted.
• Opinions from the local governments and citizens
were not fully reflected.
Unification
Nine plans were formulated by project area: Setting the project amount by each plan
etc. etc.
History of the Priority Plan for Infrastructure Development
Priority Plan for Infrastructure Development
※ The cabinet decision is needed for formulation of the priority plan1st Priority Plan (from FY2003 to FY2007), 2nd Priority Plan (from FY2008 to FY2012), 3rd Priority Plan (from
FY2012 to FY2016), 4th Priority Plan (from FY2015 to FY2020)
June 3, 2015
July 3 and July 24, 2015
July 30, 2015
Public comment and hearing of opinions from the prefectural governments, etc.
September 1, 2015
Presentation of the 4th Priority Plan (final draft)
September 14, 2015
Report by the Council of Infrastructure Development and the Council of Transport Policy
September 18, 2015
Cabinet decision
1-2:Process for Formulating the Priority Plan for Infrastructure Development
We went through the following process for formulating the Priority
Plan for Infrastructure Development to keep accountability
Consultation with the Council of Infrastructure Development and the Council of
Transport Policy regarding revision of the Priority Plan for Infrastructure Development
Presentation of the first draft and second draft for 4th Priority Plan
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(2) Securing and training skilled construction
engineers and technicians to maintain the
sites of the infrastructure development
based on the priority plan
(3) Securing stable and sustainable public
investment for appropriate implementation
of the priority plan
Rapid aging of infrastructureVulnerability of land (pressing issues for massive
earthquakes and severe weather disasters)Impoverished local economies due to decreased population
Intensified international economic
competition
(1) Strategic infrastructure management aiming at maximizing the Stock Effects of the infrastructure
1-3:4th Priority Plan for Infrastructure Development <from FY2015 to FY2020>
2. Basic policies toward the sustainable infrastructure development
1. Four structural issues faced by the infrastructure development
Clarification of
the time lineProactive approach to
PPP/PFI
Contribution to both
economic revival and
fiscal consolidation
2) Thorough and effective use of the
existing facilities (smart use)
1) Strategic Maintenance including
integration and reorganization
3) Select and focus on the projects with high Stock Effects
[Cabinet Decision on Sep. 18, 2015]
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We put the element of sustainability as basic policies in the plan
3 Points for Quality Infrastructure Investment
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Accountability
Legitimacy
Sustainability
→ Formulate the Priority Plan for Infrastructure
Development in accordance with the “Act on Priority
Plan for Infrastructure Development (Act No.20 of 2003)
→ Reflect the opinions by the expert council and the
public through public comment
→ Put the element for sustainability in the Priority Plan for
Infrastructure Development and share the concept for
Quality Infrastructure Investment with international society
2-1:Initiatives of Japanese government
“Partnership for Quality Infrastructure” (May, 2015) In order to meet the massive infrastructure demand in Asia,
Japan, in collaboration with the strengthened Asian Development Bank (ADB), will provide approximately USD 110 billion for “quality infrastructure investment” in Asia over the next five years.
An initiative titled “Expanded Partnership for Quality Infrastructure”
(May, 2016)
Provision of financing of approximately USD 200billion as the target for the next five years to infrastructure projects across the world.
Expansion of the targeted area from Asia to the whole world(e.g. Africa, Russia)
In May 2016, Prime Minister Abe delivered an initiative titled
“Expanded Partnership for Quality Infrastructure”
Japan increased supply of financial resources towards
Infrastructure projects across the world
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Reaffirming the crucial importance for stakeholders to work coherently to
bridge the existing global demand-supply gap of infrastructure investment
by promoting quality infrastructure investment so as to promote strong,
sustainable and balanced growth and to enhance resilience in our society,
as well as to contribute to the global efforts for the SDGs, we strive to align
our own infrastructure investment with the following principles.
2-2:Share the Concept for Sustainability with International Society
G7 Ise-Shima Summit (May 26-27, 2016)
We share the concept for Quality Infrastructure Investment with
international society
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Principle 5:Enhancing effective resource mobilization including
through PPP
Principle 3: Addressing social and environmental impacts
Principle 2: Ensuring job creation, capacity building and transfer of
expertise and know-how for local communities
Principle 1: Ensuring effective governance, reliable operation and
economic efficiency in view of life-cycle cost as well as safety and
resilience against natural disaster, terrorism and cyber-attack risks
Principle 4: Ensuring alignment with economic and development
strategies including aspect of climate change and environment at the
national and regional levels
2-3:G7 Ise-Shima Principles for Promoting Quality Infrastructure Investment
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2-4:Five Principles of “Quality Infrastructure Investment”
Source: MPA Study Team
Principle 1
Contribution to Local Communities
Principle 2
Addressing Social and Environmental
Impacts,International best
practices
Principle 3
Alignment with National and
Regional Strategies
Resource Mobilization
Principle 5
Ensuring Economic Efficiency, Reliable
Operation, Sustainability, Safety and resilience
Principle 4
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2-5:Related to Principle 1, Example of Sustainability
Source: MPA Study Team
ELEMENTs
The engineers who train in Japan in particular come back with a
respect for the deep spiritually, skills, and high-principled character
of the Japanese
Our Quality Infrastructure Investment became the Bridge of
Friendship between Japan and the Republic of the Congo
We have contributed the sustainability through developing
human resources, by training to their engineers in Japan and
developing their skills
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2-6:Contribution to the Local Society and Economy
Contribution to the local society and economy
Local job creation
and giving back
the benefits to
the local
community
Development of
local human
resources for
infrastructure
operation
Transfer of working
culture such as
meeting a due date.
Sharing of
experience as a
forerunner of
emerging issues 11
Proposal for Promoting Quality Infrastructure Investment
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Share the Good Practice of Quality Infrastructure
Investment
Need the Platform to Discuss and Promote Quality
Infrastructure Investment