SERVICE

01

In the three areas of construction, social infrastructure, and facility management, Index Group aims to maximize business profitability through a perspective that integrates management and construction strategies and project management, from basic research and requirements organization at the conceptual and planning stages to concrete business planning, feasibility studies (FS), and implementation strategies.

In the overseas Public Private Partnership (PPP) business, we identify PPP projects in emerging and developing countries where Japanese companies can take advantage of their strengths, analyzing market risks, supporting the formation of investors and construction-related companies to participate in the projects, and introduce cutting-edge AI.

Our strength lies in planning and conceptual capabilities, and we work with clients in Japan and overseas to solve all kinds of problems and come up with optimal solutions.

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Planning, research, and strategic planning for construction projects

When constructing a facility for business operations or land use, it is necessary to ensure that the functions and performance required of the facility are feasible within the constraints of land, cost, and schedule. At Index Group, we examine the client's requirements for the facility and the various constraints and prepare an optimal plan by setting priorities and reducing them to feasible ones.

In large-scale complex projects, such as redevelopment projects, a corporate consortium is formed as a business entity, and various stakeholders are involved. Index Group also assists in the development of an implementation strategy for the next stage of the planning process. Specifically, we support establishment of a structure, proposal of a project scheme and consensus building, division of roles among the parties involved, and the formulation of procuring methods.

03

Planning, research, and strategy development for social infrastructure projects and regional development

In the past, infrastructure such as toll roads, airports, water supply and sewage systems have been developed and maintained mainly by the national and local governments. However, there is a growing need to address the aging of infrastructure built during the period of rapid economic growth, as well as the worsening profitability associated with a declining population. Therefore, in order to maintain and operate each infrastructure in a sustainable manner, it is necessary to seek for drastic solutions using unconventional ideas and new methods.

One solution to this problem is the establishment of a framework for infrastructure investment and operation through so-called "public-private partnerships" or PPP/PFI. In recent years, introduction of concessions, in which the private sector is given the right to operate infrastructure not only for maintenance and renewal projects, but also for operation projects, is being considered in many parts of Japan, making maximum use of private funds and creativity.

In order to realize PPPs, concessions, and the infrastructure investment and financing that support them, projects must be studied at the "planning" stage, including the arrangement of requirements, study of business plans, investment schemes, roles and risk sharing between the public and private sectors.

At Index Group, we focus on the improvement of the operation of roads, airports, water supply and sewage systems, and the renewal and reconstruction of public facilities such as public housing, educational facilities including MICE and arenas, and healthcare facilities. In addition, we provide support for planning the roles of the public and private sectors, risk sharing, and investment schemes.

In the process of examining domestic PPPs, specialized knowledge is required, such as interpretation of the revised PFI Act and related laws and regulations, simulation of project revenues and expenditures and VFM, etc. Therefore, a team of experts including law firms, accounting firms, and civil engineering companies is formed, where Index Group takes the lead as the project manager, examines the methodology to realize the project, and provides support for planning.

Since any plan to be formulated by the municipality, i.e., municipal concept, will determine the future vision of the region, it must be established through a neutral and transparent decision-making process based on hearings from many concerned parties and experts, and must ultimately be understood by the council and residents. Index Group works closely with local governments to plan and implement processes that ensure transparency, and to organize and manage meetings of concerned parties and experts to support steady promotion of the formulation of such policies.

04

Planning, research, and strategy development for overseas PPP projects

Introduction of PPPs is increasing in developing countries and emerging economies as a method to achieve financing and efficient management in the development of national key infrastructure. However, highly profitable PPP projects are very limited, and it is extremely important to identify and formulate profitable projects from the initial stage in order to successfully commercialize them.

As project managers, Index Group handles the entire process from project identification to commercialization, including the identification and formation of highly profitable projects, selection of project forms, feasibility studies (F/S), and formation of consortiums.

At the project identification stage, after identifying markets and projects with high profitability and where Japanese companies can maximize their advantages, we negotiate with central government agencies as well as local governments of the country to form consensus and conclude intergovernmental agreements on the commercialization of the projects.

In the feasibility study (F/S) stage, we conduct legal, financial, and technical feasibility studies of the project in two stages (pre-F/S and F/S), with the aim of commercializing the project through PPP, using grants from Japanese government agencies. Based on the results of these studies, we develop a system design and feasibility study plan, including the design of the PPP system and project structure (including a financing plan).

At the stage of forming a consortium, for projects that have been evaluated as having high feasibility, we are responsible for discussions and consensus building with related organizations, as well as the formation of a consortium for bidding and contract negotiations, capital structure, and bidding strategy.