PUBLIC-PRIVATE PARTNERSHIPS ON JAPAN'S MEGAPROJECTS

Minkatsu--making positive use of private vitality--was promoted heavily by former Japanese Prime Minister Nakasone Yasuhiro in the mid-1980s. In the area of transportation infrastructure, minkatsu has produced mixed results. Minkatsu projects were supposed to offset the reduced government role by invigorating the economy and expanding the use of private capital in Japan's domestic market. Two minkatsu megaprojects launched by the Nakasone administration were the Trans-Tokyo Bay Highway and the Kansai International Airport (KIA). This article describes these two megaprojects, compares the KIA project to the Chubu International Airport project, and outlines the problems of the Dan Sai sector or public-private companies. The article concludes by saying that in the future, minkatsu projects can be advantageous if three reforms occur: 1) public and private sectors must write better contracts, assigning responsibility whenever possible; 2) the government should entrust details of project execution to the private sector; and 3) the government should establish new competitive procurement methods to encourage private risk-taking while controlling profits and/or prices adequately.

  • Availability:
  • Supplemental Notes:
    • This article appears in the International Supplement to Public Works Financing, January 1996.
  • Corporate Authors:

    Public Works Financing

    147 Elmer Street
    Westfield, NJ  United States  07090-2433
  • Authors:
    • Kengo, M
  • Publication Date: 1996-1

Language

  • English

Media Info

  • Features: Tables;
  • Pagination: p. 1-7
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00721968
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 10 1996 12:00AM