Japan hikes yen-based thresholds for WTO public procurement

The Finance Ministry and Ministry of Internal Affairs and Communication announced adjusted higher yen-based thresholds for WTO public works tenders for 2016 and 2017 on January 25th   The thresholds in the WTO Agreement on Public Procurement (GPA) are set in IMF Special Drawing Rights (SDR) and fixed, however the local currency equivalent is adjusted periodically.  

The higher yen-thresholds apply to construction and design/consultancy at both national and regional level.  The changes become effective from the start of the new fiscal year on April 1st.  The higher yen-based thresholds will mean that government entities, who calculate their contracts in yen, can keep larger projects out of the WTO framework.

The changes are as follows:

 

 

2014-2015

2016-2017

 

SDR

JPY

JPY

Central government entities

 

 

 

Construction

4,500,000

600,000,000

740,000,000

Architectural, engineering & Other Technical services related to construction

450,000

60,000,000

74,000,000

 

 

 

 

Sub-central Government Entities

(Prefectures and designates cities)

 

 

 

Construction

15,000,000

2,020,000,000

2,400,000,000

Architectural, engineering & Other Technical services related to construction

1,500,000

200,000,000

240,000,000

 

 

 

 

Other entities

(Annex 3)

 

 

 

Construction services for entities in Group A, except Japan Post

15,000,000

2,020,000,000

2,400,000,000

Construction services for Japan Post and entities in Group B

4,500,000

600,000,000

740,000,000

Architectural, engineering & Other Technical services related to 2 and 3

450,000

60,000,000

74,000,000

For the complete list of thresholds, check our pages here.

 

Sources:  The Daily Engineering& Construction News January 26, 2015; Nikkei Online January 30, 2016 (Japanese).

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