REPORT
The PPP method stands for Public Private Partnership. It is a concept that captures a wide range of methods in which the private sector participates in the provision of public services. It is a concept that takes a broad view of the methods by which the private sector participates in the provision of public services, and aims to improve efficiency and public services by utilizing private capital and the know-how of the private sector. </span
PPP methods include concessions, in which the operating rights are sold to the private sector for a certain period of time; availability payments, in which the government pays a certain amount of compensation based on the performance of the private concession company; BTO (Build Transfer Operate), in which the private sector is responsible for construction and financing, and the same private sector operates the project after the completion of the project after transferring ownership to the public sector; and BTO, in which the private sector constructs, maintains and operates the project. BTO (Build Transfer Operate), in which the private sector is responsible for construction and financing, and after completion transfers ownership to the public sector and the same private sector is responsible for operation; BOT (Build Operate Transfer), in which the private sector constructs, maintains, and operates the project, and after the contract period is over, transfers ownership to the public sector. BOT (Build Operate Transfer), in which the private sector constructs, maintains, manages and operates the project, and transfers ownership to the public after the contract period is over. </span
Reference｜Categorization of PPP/PFI methods (Ministry of Land, Infrastructure, Transport and Tourism)
WRITER
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Ken HASHIZUME
Index Senior Analyst
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