PFI projects carried out under the current PFI Act, have focused on the design, construction, and maintenance stages (e.g. government office buildings and schools) and less on the operational stage. The amendments will provide a concession system under which the government will maintain ownership of certain public facilities but grant operation rights (“Operation Rights”) to private entities (“Operators”) which can provide the relevant services to the public for a fee. The amendments will facilitate borrowing by Operators which may offer Operation Rights as security for such borrowings and will offer them flexibility in the way they operate the relevant facilities (e.g. setting service charges). Additionally, fixed asset tax and other taxes associated with ownership of assets will not be imposable as ownership to the public facility will remain with the government. On the other hand, the government will be able to receive lump-sum payments for the granting of Operation Rights which will defray the cost of constructing, manufacturing and updating public facilities.

The amendments will expand the definition of what constitutes a public facility to include rental housing, transportation such as ships and aircraft and artificial satellites.

Under the current PFI Act, all PFI projects are planned at the initiative of the government. However, the amendments will allow potential Operators to propose PFI projects to the government.

The amendments provide that the government must endeavour to give necessary consideration to supporting personnel requirements of Operators engaged in PFI by, for example, seconding government officials to them.

A new council for the promotion of PFI will be established pursuant to the amendments. The council will establish basic policy for PFI projects and make adjustments to policies pertaining to PFI among relevant administrative bodies as a special organization in the Cabinet Office which is separate from the committee for the promotion of PFI already established pursuant to the current PFI Act. It is likely that the volume of PPP/PFI projects will increase rapidly due to the reconstruction required as a result of the earthquake and tsunami disaster that occurred on 11 March 2011. It is hoped that the amendments will lead to increased in-bound investment into such projects.