This forum is held every year with the aim of introducing global knowledge on PPPs/PFIs. This year's 15th forum is entitled "PPPs in the society after the Pandemic" to consider future PPPs and issues in response to the spread of the COVID infection all around the globe.Instead of the usual conference format, we decided to deliver videos of speakers from different countries and specialties. We would like to express our sincere gratitude to all the speakers, sponsors, and special supporters for their contributions and supports.
The COVID has had a tremendous impact on all countries and all sectors, and PPP is no exception. In this session, we received video speeches from governments, local governments, and practitioners in different fields from their respective perspectives. What all the speakers recognized in common was that the sharing of roles and cooperation between the government, the private sector, and citizens is essential for overcoming the pandemic and building a new socio-economic framework. In other words, there was a common acknowledgement that the role of PPPs will be greater than ever.We hope you watch many of the videos and find them useful.
Toyo University is responsible for all the editing, including English and Japanese translations/subtitles.
The copyright of the video belongs to the speaker and Toyo University.
The use of the videos without consent of Toyo University is strictly prohibited.
※This video was released in December 2020 and may differ from the information currently available.
◆15th International PPP Forum
Videos available December 2020 - Undecided
Hosted by Toyo University (http://www.pppschool.jp/)
Supporters Cabinet Office, Ministry of Internal Affairs and Communication, and Ministry of Land, Infrastructure, Transportation and Tourism
Special Supporters (Alphabetical order) Chodai Co., Ltd., Development Bank of Japan Inc., Eight Japan Engineering Consultants Inc., Hulic Co., Ltd., Japan Economic Research Institute Inc., Kajima Corporation, Kajima Road Corporation, Kyoritsu Maintenance Co., Ltd., Mitsui FudosanCo., Ltd. Shimizu Corporation, Taisei Corporation, Takenaka Corporation
YAGUCHI Etsuko, President of Toyo University
NEMOTO Yuji, Director of PPP Graduate School of Toyo University
In the first video, he pointed out that most speakers have categorized COVID response in three stages: emergency response->full-scale measures->structural reform. However, we saw a lot of confusions caused by a “twist” of progress in medical and economic response stages. This is hard to avoid, and there is no distinct answer for this issue. In the second video, he explained the roles of the government, market (private sector) and community (citizens, NPOs, etc.) in planning and promoting resiliency to make progress and avoid future damages.
Responses of the national governments
HOHOKABE Nobuhiko, Director for PPP/PFI Promotion Office of the Cabinet Office
He is in charge of PPP policies in the Japanese government. The PPP/PFI Promotion Office conducted a survey of local governments on COVID impacts on PFI projects and found that the pandemic had a significant impact on some projects such a PFI model-based project concerning a school lunch catering center. The office also published a note to ministries/agencies and local governments noting that the COVID could be considered a force majeure event and requesting that they negotiate with the PFI operators in good faith, and that they support the projects by making maximum use of subsidies. He also emphasized that PPP/PFI would be even more effective for the sustainability of public services in the future.
Javier ENCINAS, Deputy Head of International Project and Structured Finance Group Infrastructure and Projects Authority HM Treasury and Cabinet Office
IPA is responsible for PPP and infrastructure development policies in the UK government. He introduced the "Guidance note on vital service provision in PFI and PF2 contracts during the COVID emergency" and described the infrastructure investment programs as the recovery strategy from the COVID.
Frédéric BOBAY, Project manager FinInfra at Treasury （Ministry of Economy and Finance） in France
Though there are international initiatives to promote Sustainable Development Goals or Quality Infrastructure Investment, there is a time management dilemma: fast cash injection to the economy for the recovery and long-term infrastructure development. He explained some supporting tools such as SOURCE platform, which may help quality infrastructure preparation. In France, government-pay PPPs have been shrinking because of more flexible procurement methods, while concessions are more often combined with the government subsidies.
Senem DENKTAŞ, Partner at Hergüner Bilgen Özeke
She is a lawyer specializing in PPPs in Turkey, a country with a strong track record in PPPs. She explained that medical facilities and COVID treatment units built under the PPP functioned well during the pandemic.
In Turkey, pandemic is often listed as a force majeure event in many PPP contracts., The government remained silent on the specific issue of Covid-19 pandemic in terms of whether it qualifies as a force majeure event under PPP contracts. On the other hand, in respect to the contracts executed under the public procurement laws (commonly not applicable to PPP projects), a circular has been issued in April 2020 explicitly confirming that Covid-19 pandemic will be treated as a force majeure event.
Geoffrey HAMILTON, Chief of PPP Programme at UNECE
He explained a concept of People-first PPP (PfPPP) and evaluation methodologies being discussed at United Nations Economic Commission for Europe, which will contribute for the achievement of the Sustainable Development Goals (SDGs). In PfPPP, he explained the five criteria: access and equity, economic effectiveness, environmental sustainability and resilience, replicability, and stakeholder engagement. He pointed out that innovative economic policymaking will be needed in the society after the pandemic and PPPs will be transformed accordingly.
UNECE PPP-ICoE Website: https://www.uneceppp-icoe.org/
Guiding Principles on People-first PPPs (PDF): https://unece.org/fileadmin/DAM/ceci/documents/2018/PPP/Forum/Documents/The_8_Guiding_Principles_for_People-first_PPPs_in_support_of_the_UN_SDGs-Part_II.pdf
Advisor to the Executive Director, The World Bank
He explained the World Bank's four-pillar approaches to COVID (Saving Lives, Protecting Poor and Vulnerable People, Ensuring Sustainable Business Growth and Job Creation, Strengthening Policies, and Institutions and Investments for Rebuilding Better). PPPs are expected to create a resilient economy and society through a Quality Growth.
Consultant and UNECE-SDGs taskforce leader
He advocated the development of a post-Corona recovery plan that integrates the SDGs. In addition to explaining the Yellow block (safety zone in the city center) and other partnership efforts in Cascais, Portugal, he explained the Portuguese government's social and economic recovery plan.
UNECE Compendium of People First PPP Case Studies for the UN SDGs：
Diogo FARIA DE OLIVEIRA President, PPP-ICoE Specialist center on Water and Sanitation (affiliated with UNECE)
He emphasized that investment is necessary to obtain safe water and sanitation and that PPPs play a significant role, and that the PPPs need to provide value for people. In many cases, pandemics are considered force majeure under the contracts and are subject to consultation, but both the public and private sectors should understand that it is impossible for the counterparty to bear all the costs.
David DODD, Founder, PPP-ICoE Specialist center on resiliency—International Sustainable Resilience Center (affiliated with UNECE)
From the view of an expert on disaster recovery, he emphasized the importance of resilience and sustainability in the economic and social recovery from the COVID, as it is similar to the recovery process and plans concerning thenatural disasters. He talked about the examples of a pharmaceutical manufacturing base in Puerto Rico and broadband development in Mexico.
ISRC Website: https://isrc-ppp.org/
Jordi SALVADOR, Manager, PPP-ICoE Specialist center on smart cities—PPP for Cities (affiliated with UNECE)
Manager, PPP-ICoE—PPP for Cities (affiliated with UNECE)
He explained the roles of the Specialist Center—PPP for Cities to achieve sustainable development goals. He described that technological innovations such as digitalization, e-commerce, telecare, remote work, home education, etc. are becoming available, but in order to utilize them, a smart governance, including privacy protection is essential.
IESE PPP for Cities Website: https://www.iese.edu/faculty-research/ppp-for-cities/
SUZUKI Yasutomo, Mayor of Hamamatsu City (Shizuoka Prefecture) and President of Council of Mayors for Asset Management and PPP
Council of Mayors for Asset Management and PPP is a voluntary organization among mayors for the purpose of promoting effective asset management and PPPs in local governments. It is chaired by Mayor Suzuki of Hamamatsu City, a designated city in Shizuoka Prefecture. He explained Hamamatsu City's various measures to COVID, pointing out the importance of having equipped with dual mode(safety mode and economic mode), digital transformation as well as PPPs in the local administration after the pandemic.
Hamamatsu City Website: https://www.city.hamamatsu.shizuoka.jp/
John MCDONOUGH, City manager, Greenville, South Carolina
Formerly known as City Manager of Sandy Springs, Georgia, the world's first PPP city. His new city, Greenville, South Carolina, is known as one of the most livable city in the US and PPPs are actively utilized in its city development and tourism development. In terms of the COVID measures, he explained about the strategic partnerships with local economic development allies to promote responsible business reopening, as well as city management efforts to adjust to the new normal.
City of Greenville Website: https://www.greenvillesc.gov/
Ron CARLEE, Assistant Professor, Old Dominion University
He is a former COO of the International City/County Management Association and has worked as a city manager for several municipalities in the United States. Based on his extensive experience in municipal management, he pointed out the current issues in the US: "diffusion and decentralization," "economic recession," and "social justice," and emphasized the potential of the PPPs for resolving them.
Frank SCHNIDMAN, Lawyer, former professor at Florida Atlantic University
He pointed out the COVID measures in the US are too political, and taking a hope-based approach–whereby the government allowed the virus outbreaks to occur and hoping that the vaccine would be developed soon--would have the negative impact on PPP investment appetite in the long run. During the recovery period, the government needs to give people jobs, just like during the Great Recession. In doing so, we need to integrate resilience, a necessary concept for the smart growth.
Khairuddin Abdul Rashid
Professor at Universiti Teknologi MARA in Malaysia
Introduced the COVID response measures in Malaysia and its impact on the economy, explaining that in terms of the PPPs, toll road and airport projects were severely affected. As for the handling of pandemic in Malaysia's PPP contracts, he pointed out that, the contracts generally regarded pandemic as a force majeure event, and in terms of the remedies, the private sector is allowed to extend the contract duration, and a thorough review in future contracts is expected.
MIHARA Toru, Consultant (PPP/PFI)
When considering the future use of PPPs, we must first understand that the tax revenues declined and fiscal burden increased in most municipalities, he explained. New trends include digitalization and flattening of society, service (soft)-oriented public services and consolidation and sharing of facilities/services among municipalities. He emphasized that this is a crisis, but also an opportunity to change the status quo and bring about new innovations.
MINAMI Manabu, Consultant (Public administration and public finance)
He explained that the impact of Covid-19 pandemic on national and local finances would be enormous, probably worse than the financial crisis, and it is impossible to predict how long the impact will last. In particular, the medical and welfare sectors will be greatly affected. In addition, the pandemic will change the way how the public facilities are designed since the people are expected to reject gathering in facilities to receive the public services. He pointed out the need to change the way we think about public facilities, such as classroom design to adopt to technologies or city administration offices to go out and provide services to people.
KANAYA Takamasa. Executive research fellow, Tokyo Urban Planning and Development Corporation
In 21 year-history of Japanese PFI, the COVID pandemic is arguably the most impactful event, and transformed the nature of community development. It also reduced the profitability of PPP projects and shifted the focus from face-to-face interaction to information exchange. In a society with COVID, he points out that the private sector should be more involved in PPPs, especially its active involvement in the planning and formulation stage, securing profits and handling risks, and introducing new knowledge and technologies.
YAMADA Hajime, Professor Emeritus of Toyo University
Digital transformation (DX), which has been rapidly evolving for recent years, has been accelerating with the COVID pandemic. The way government services are provided will be completely redesigned, and collaboration with the private sector and citizens will be promoted. PPPs will focus on initiatives in various fields, including people’s lives, businesses, schools, agriculture, welfare, health and medical care. Therefore, institutional reforms such as standardization of API (application interface) datasets and a balance between the protection and use of personal information are necessary.
David DODD, Pedro NEVES and Sam TABUCHI
The three discussed the importance of governments developing economic development strategies that incorporate resilience and sustainability in their own countries and regions, and the importance of the private sector recognizing the importance of the public interest in the society, and collecting and sharing case studies from around the world to achieve this.