Case Construction and Improvement of Public Facilities etc by PFI Method

In March 2001, construction and improvement of public facilities etc. by the PFI method was legally approved in Japan. This is a method where design, construction, funding, maintenance and management of public office buildings, schools, hospitals, and basic traffic facilities, etc. are entrusted to private sectors as a package for a long period of time. This is a type of contract that grants a business right to private sectors. In this case, it depends on the types of facilities but all elements mentioned in Figure 4-2-9 at previous page are covered in bidding and contract as a package. BOT or BOO is a pattern of this method, where the life cycle of projects is long and the overall business is considered as a project._

Optimization of the whole project in line with optimization of its parts means that the process is not one-sided but dynamic going back and forth. Figure 4-2-10 below shows the work flow for this.

Creation and selection of basic design (Design)

Selection of elements and specification (Resourcing)

Creation of a feasible and optimum framework (Structuring)

Temporary project profitability model

Establishment of an overall framework for actualization

Examination of establishment of framework for detailed elements

Phased development of the project profitability model

Determination of the project profitability model

Realization of finance, project feasibility ensuring

Creation of a feasible and optimum framework (Structuring)

Temporary project profitability model

Establishment of an overall framework for actualization

Examination of establishment of framework for detailed elements

Phased development of the project profitability model

Solutions to restrictive elements

Coordination within the whole framework

Figure 4-2-10: Interrelationship of Structuring Work Flow

(Numerical indication of goals, recognition of bask input)

Solutions to restrictive elements

Coordination within the whole framework

Figure 4-2-10: Interrelationship of Structuring Work Flow

Finance structures and finance schemes vary according to industries, business fields and individual projects. There are also various possibilities for methods of structuring. The following are mentioned as elements for finding the optimum solution:

(1) Originality and device for structure designing

(2) Risk tolerance level by fund providers or risk bearers in the market

(3) Balance among risk, cost, and financial viability

Actual methods of structuring vary widely and this is a part in the course of project creation where originality and device can be demonstrated to the maximum extent.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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