Government to support municipalities with offering water management services in PFI concessions
The Cabinet office has started a support program for local municipalities to assist them with investigating the possibility to offer water management services, i.e. the public water supply and sewerage services in concession. Municipalities can have all costs covered for investigations into due diligence, the division of responsibilities between public and private actors and feasibility studies. They can also receive support for investigations into the possibility to offer educational facilities and public housing in concessions to the private sector.
Local municipalities in Japan, are finding it more and more difficult to finance the upkeep of their infrastructure, faced with declining populations. Private Finance Initiatives are seen as one way to solve this problem.
Although, the number of PFI tenders is slowly increasing, many smaller municipalities find it difficult to oversee the consequences for their organisations. The national government therefore has decided to support them financially by offering financial support to hire experts on PFI.