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

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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

Source: MPA Study Team

Thank you for your attention.