Private Finance Initiative Project Payment Deductions

Chapter 16

Private Finance Initiative Project Payment

Deductions

Katsuji Ishihara, Kyoto University

Introduction

In Japan, the magnitude of public budgets available for public works is decreasing. It is expected that this trend will continue as Japan's population decreases and grows older. To avoid a shortage in public funds, we need public services to be delivered more efficiently and effectively. The Private Finance Initiatives (PFI) is a form of public-private partnership used to deliver capital investment projects efficiently and effectively that include capital projects such as schools, hospitals, roads, and water facilities. Instead of the public sector procuring capital assets and subsequently owning, operating, and regulating them, the private sector owns and operates them.