Ota City Public-Private Partnership

Basic Guidelines

January 2019

Ota City

Table of Contents

1 Background ……………………………………………… 1

2 Position of the Guidelines ………………………………… 7

3 Basic Policies of Public-

Private Partnerships (PPPs)

…………………………………

9

4 Purpose of PPPs …………………………………

10

5 Principles in PPPs ……………………………….. 11

6 Process of PPPs under Partnership

Agreement ……….…………… 12

7 Structure for Promoting PPPs ………..………….. 16

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1. Background

(1) Past efforts by Ota City

A. The basic direction of Ota City

Ota City (hereinafter referred to as “the City”) established the Ota City Basic Plan

(hereinafter referred to as “the Basic Plan”) in 2008, which indicates the most fundamental

aims for urban planning. This plan lays out a vision for the future of the City as “Global City

Ota, working towards the future, where the strength of the community supports the life of the

citizens.”

The City defines “community strength” as “something that embraces each resident’s

individual strength as its central resource, including the power that is born out of not only the

mutual cooperation between the various core subjects such as NPOs, organizations,

entrepreneurs, town and local associations, but also from that of the connections that these

entities have with the City. The strength and activities that support the creation of a

community with charm, which can resolve a diversity of issues such as those related to crime

and disaster prevention, welfare, child support, industry, the environment, international

exchange and the enhancement of the city’s appeal.” We have aimed to utilize the power of

diverse entities of the local community, including private companies, and to resolve regional

issues in cooperation with them.

In addition, in March 2017, the City declared itself "Global City Ota", home to Haneda

Airport, the international hub airport operating around the clock. This declaration expresses

our aim to open a new era and expand internationally by bringing together the strength of our

communities.

B. Past efforts by Ota City regarding the Public-Private Partnerships (PPPs)

The City has worked on projects in cooperation with various entities based on the

keywords for city administration, “community strength” and “global city”, as stated in the

Basic Plan. We have been working on solving regional issues by steadily conducting

numerous collaborative projects together with the town and local associations,

organizations/NPOs and the like. At the same time, we have reinforced the foundation of

community strength by broadly developing cooperative relationships with other municipalities,

public agencies, and academic organizations, such as universities within the City.

We are working together with private companies in various forms, including registration

for a monitor system for children and elderly people, and concluding an agreement for

different administrative fields. Most recently, we promoted approaches aimed at solving

regional issues by utilizing a new method of concluding a Comprehensive Partnership

Agreement1 in a wider field of administration. Also, we have steadily worked on service

improvements for the City’s inhabitants by utilizing the knowledge and skills of private

companies by consigning counter services and adopting the Designated Manager System

for facility management.

The arrival of a super aging society has led to a diversity of values regarding the lifestyles

of individuals and an information-driven society developing with increasing speed, meaning

the environment which surrounds the City is changing swiftly day by day. In order to comply

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with this shift flexibly and to realize a sustainable urban development, the City is required to

create a new synergistic effect with the partnership structure that, by actively working

together with private sectors and utilizing new means of cooperation, we have been able to

develop along with various organizations and academic institutions.

___________________________________

1 A method to examine adoption of a project when a cooperative project by the City and the private sector cannot

be categorized in an individual administrative field. When conducting a cooperative project after the conclusion of

agreement, various regulations and guidelines established by laws and the City shall be followed as described

later on page 13.

3

[Cooperation with private companies based on

agreement]

The stores were busy with customers looking for special souvenirs of Ota all day long.

A workshop using the open space of the facility. Everyone was earnestly working on it.

Examples of Cooperative Projects

Building a base for growth strategy

at a site in Haneda Airport The city has been operating the Haneda Airport

Unused Land Zone 1 Redevelopment Project (Phase 1 Project) in cooperation with Haneda Mirai Development Co., Ltd., which is a joint development/management corporation formed by nine companies* from different types of industry. The Phase 1 Project utilizes the advantages and specialized knowledge/skills of each company and endeavors to build the base for creating new industry and transmitting information that contributes to the revitalization of industries in the area and to spreading the charm of Ota. *Nine companies: Kajima Corporation, Daiwa House Industry Co., Ltd., Keikyu Corporation, Japan Airport Terminal Co., Ltd, Airport Facilities Co., Ltd., East Japan Railway Company, Tokyo Monorail Co., Ltd., Nomura Real Estate Partners Co., Ltd., Fujifilm Corporation

Column

[Haneda Airport Unused Land Zone 1 Revitalization Project (the

Zone 1 project) Perspective Image]

Providing administrative services at

Ito Yokado stores Promoting “Let’s Eat Vegetables”

project at convenience stores

We have been improving the convenience for the

City residents by providing administrative services that

the customers can casually use when going shopping.

For example, we hold lectures on infirmity prevention in

the food court at the Ito Yokado Omori branch and offer

consultation on parenting during events. Also, in

response to a request from the branch, we held a

dementia supporter training course for employees.

Since many of the employees working for this branch

live in the City, they are expected to be good local

supporters for dementia in the future.

The content in the image may be changed in the future.

With our comprehensive partnership agreement with the four companies under Seven & i Holdings Co. (*2) and our goal to increase vegetable consumption among the younger generations, we displayed POP advertising and gave away small leaflets that introduce ideas for eating more vegetables at all the Seven-Eleven stores in the City. We received feedback from the stores pointing out that “many people added vegetable items to their shopping,” and it created an opportunity to make convenience store users be conscious about their vegetable intake and health.

*Four companies Seven-Eleven Japan Co., Ltd. Ito-Yokado Co., Ltd. YorkMart Co., Ltd. Seven & i Food Systems Co., Ltd. (Denny’s Japan Co., Ltd.)

Promotion leaflet featuring the City’s

official character “Hanepyon”

Promoting the “Top 100 Souvenirs of Ota”

Based on the partnership agreement at Machinoma

Omori (commercial facilities)” with Mitsubishi Corporation Urban Development, Inc., we held the “Top 100 Souvenirs of Ota Fair” that exhibits and sells various popular specialties from the City in the mentioned facility. In cooperation with companies from within the City, we created a lively environment by organizing a workshop where people can experience the manufacturing process of the products and goods which these companies produce.

Counseling on parenting at the store. The counselor accepted a wide range of consultations regarding baby food, applications for nursery school admission, and so forth.

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(2) Increased motivation for cooperation towards solving social issues

In September 2015, the United Nations adopted the 2030 Agenda for Sustainable Development,

the universal goal for the entire international society, including developed countries, in which it

identifies 17 goals and 169 targets as Sustainable Development Goals (SDGs). In this agenda, it is

written that it “incorporates governments, national assemblies, the UN system, international

organizations, local governments, indigenous people, civil society, business and private sectors,

scientists and academics, and all people," and requires that everyone gets involved in the agenda.

Japan established the SDGs Promotion Headquarters in May 2016, and in December of that

year, the SDGs Implementation Guidelines were established. As for positioning of the private

companies, the guidelines state "to achieve SDGs, it is decisively important that not only the public

sectors but also the private sectors contribute to solving public issues, and that effectively utilizing

the funds and technologies of private companies (including individual businesses) to solve social

issues is the key to achieving the SDGs.”

In recent years, the concepts of CSR2 and CSV3 are valued in private sectors, and approaches

made in consideration with sustainability for ESG Investing4 and Social Impact Bond (SIB)5 are

increasing. It could be said that this indicates that private sectors are working on solutions to social

issues, something which was formerly seen as primarily the role of the government, and that this

trend is expected to continue and expand furthermore in the future.

It could also be said that it is a trend in the international society to work in cooperation regardless

of whether it is with a public organization or private sector, utilizing each other’s strengths towards a

solution to social issues with a common aim of sustainable urban development.

(3) The trend of PPPs in Japan

“Basic Policy on Economic and Fiscal Management and Reform” and “Future Investment

Strategy” established by the Japanese Government signify the goal to promote partnerships

between the public and private sectors in a wide range of administrative fields regardless of the

tangible or intangible elements.

Also, with an aim of accelerated promotion of implementation of PPPs, the Cabinet Office,

Ministry of Internal Affairs and Communications, and the Ministry of Land, Infrastructure and

Transport established the Operation Manual on Public-Private Communication and Partner

Selection Process in PPP Projects in 2016. This manual describes the process and consideration

upon pursuing a partnership with private sectors, such as matters regarding disclosure of necessary

information with a good understanding of regional issues by the public administration, importance of

implementing discussion, and installment of a counter that receives proposals smoothly.

______________________________ 2 Corporate Social Responsibility. International Organization for Standardization (ISO) defined these seven of

organizational governance, human rights, labor practices, environment, fair business practices, consumer issues, and

participation in the community and the community development as the core themes of the social responsibility in ISO

26000. 3 Creating Shared Value. A way of thinking in corporate management aiming to create value that can be shared with

society as proposed by American economist Michael Porter in 2006. 4 Investment that values efforts of private sectors on the environment, society, and organizational governance. 5 Loans to raise business funds to solve social problems. According to the guidelines of International Capital Market

Association (ICMA), known as the Social Bond Principles (SBP), examples of subjects of the social impact bond are:

- Infrastructure development for water and sewage, sanitation facilities, transportation and the like implemented for the

5

poor, affected people, disabled people, immigrants/refugees, unemployed people, etc.

- Improvement of access to health, education, vocational training, financial services, and such.

- Job creation by housing support, support of small and medium companies, etc.

- Security of food, and projects aimed at socioeconomic improvement.

6

[Image of the approaches for SDGs]

(Source: United Nations Information Center Website)

All people should be involved in achieving the goal of the international

society as a whole

Private Enterprises

Academic Organization Government Municipalities

・・・ International Organization

National Assembly Civil Society

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2. Position of the Guidelines

In the Basic Policy on Partnerships with Ota City’s Citizen Activities established in 2004,

the basic role of companies in the local community is described as “to work on solving public

issues and to participate in a wide range of social action programs as a member of local

community” and "to aim for a cooperation that share results for the both involved as civil

activity group and a good partner of the City."

Based on the growing trend of cooperation with private sectors towards solving social

issues in recent years, these guidelines define the cooperative projects between the City and

private sectors more concretely, promoting partnerships with various local entities, including

diverse organizations and academic institutions, with the aim of enhancing community

strength.

[Image of Community Strength]

These guidelines indicate the basic concept of PPP projects conducted by the City, and it

has a role as a shared direction for the City and cooperating partners that are private sectors.

(The word "Private" in PPPs introduced in these guidelines mainly refers to private companies,

and "partnership" includes the meaning of "cooperation and collaboration" 6).

PPPs always should be done under ideas that are appropriate to the times. Therefore, the

contents of these guidelines shall be constantly reviewed and improved.

________________________________ 6 The provisions of "cooperation and collaboration" in Ota City Civil Cooperation Promotion Ordinance are as follows.

"We will share resources such as knowledge and skills that each has to collaborate and cooperate together with the

shared goal of building an affluent local community among citizens' activities groups, companies and the City, while

mutually respecting each other's autonomy."

The overall view on cooperation and collaboration in the region is organized in the Basic Policy on Partnership with Ota City’s Citizen Activities.

Partnership

Based on the growing trend of private sectors’ collaborative efforts towards solving social issues, these guidelines clarify the outline of cooperation between the City and private sectors.

Organizations NPO Private Sectors

The City

Every Citizen Town and Local

Associations

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[Image of categorization of PPPs]

Public-Private Partnerships

* Proposal of ideas, support given by the employees, providing a

space, etc.

Offer services utilizing ideas that only private sectors can come up with, etc.

Implement cooperative projects by utilizing both the City and private sectors’ resources and ideas at maximum

Proceed in cooperation with private sectors through

procedures such as public advertisement

(Examples of methods of PPPs)

Private outsourcing, Designated Manager System, PFI, Fixed-Term Land Leasehold

Method etc.

Select a partner following various regulations and guidelines established by the law or the City

Projects made in cooperation with social action programs* conducted

by private sectors

(Examples of methods of PPPs)

Comprehensive Partnership Agreement, Individual Agreement, etc.

- Invite suggestions from private sectors

- Share information on regional issues from the City

- Share the issues and goals through conversation

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3. Basic Concepts of PPPs

Concepts that are common in all PPP projects implemented by the City are as follows.

(1) Try new possibilities

In these times of rapidly changing social situations, following the same methods with the

same amount of effort cannot guarantee a maintained level of residents’ satisfaction,

meaning there is a risk it may decline. Methods to solve regional issues are not necessarily

limited to those the City has adopted in the past. Instead of taking an attitude of "we do not do

it because there is no precedent,” we will tackle on PPPs with a positive attitude of "it would

be interesting if this was actually put into practice", flexibly considering new possibilities for

solving issues.

(2) Create synergistic effects

There are highly diverse regional entities within the City, and we are employing various

activities to solve regional issues. In proceeding with the cooperation with private sectors, we

aim to create synergies with the partnership structure that the City has cultivated up to now.

By maximizing the knowledge, skills, and resources possessed by each entity, a synergistic

effect of "unique in Ota City" is created, leading to more effective solutions to regional issues.

(3) Sharing the global perspective

When considering citizen services that the City offers on a daily basis from a broader

perspective, it can be thought that in some way each one of them leads to SDGs, which is a

common goal of the international society. When the City promotes PPPs, we will always

share the viewpoint that the City and private sectors, both members of the international

society, will work in cooperation to achieve the international goals.

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4. Purpose of PPPs

By promoting PPPs, the City aims to implement high-quality administrative services, solve

regional issues, and revitalize the region, and create a “Sanpo-Yoshi” partnership beneficial

to each entity of citizens, the administration, and private sectors.

[Image of the purpose of PPPs]

Su

sta

ina

ble

Urb

an

De

ve

lop

me

nt

-Provide attentive citizen services which are difficult to offer by administrative alone. -Improve the image of the region.

Expand

Sanpo-Yoshi (benefit for each side)

Promotion

of PPPs

-Receive attentive services. -Revitalized regional economy.

-Improve their corporate image through activities contributing to the society. -New connections with

various regional entities.

We will utilize diverse ideas from private

sectors for providing citizen services and

continuously offer services that the citizens can

realize the improvement of quality.

We will link the public awareness (public

mind) which private sectors have to the solution

of regional issues.

We will promote further regional revitalization

by creating high-quality public services and new

vibrancy of the city through cooperation.

Solve regional issues

Revitalization of the local community

Administration (the City)

Provide high-quality administrative services

Residents

(local

communi

ty)

Private

sectors

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5. Principles in PPPs

(1) A principle of sharing the issues and goals

In promoting PPPs, both the City and cooperating partners shall share the issues and

goals correctly. This is the premise of PPPs and the first step of the partnership.

(2) A principle of communication

There is a fundamental difference in the position of the City, the carrier of public services,

and the private sectors, which are required to secure profits. The objectives of PPPs can be

implemented by both parties through having sincere discussions and building trusting

relationships.

(3) A principle of equity and transparency

The administration is required to always ensure fairness and transparency, and this is also

the case when promoting PPPs. The City accepts proposals for cooperation widely while

securing equity and transparency at each stage of PPPs.

(4) A principle of protecting ideas

In conducting a PPP project, it is fundamental to ensure transparency; however, unique

ideas from the cooperating partners at the stage of reviewing the project shall be

appropriately protected upon consultation on which information is to be protected.

(5) A principle of role sharing and clarification of responsibility

For private sectors, cooperating with the City means joining the “public,” and taking part of

the responsibility. In conducting a PPP project, we can ensure business stability by assuming

various social and economic risks and by agreeing to and clarifying the scope of

responsibilities.

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6. Process of PPPs under the Partnership Agreement

Here, we will explain the basic process of PPPs under the partnership agreement. To note,

PPPs proceeded under a conclusion of an agreement with a private sector based on laws

(public offering and bidding) will be conducted in accordance with various regulations and

guidelines and such established by the relevant laws and the City.

[Image of process of PPPs under partnership agreement]

Pla

nn

ing

(1) Understand issues

- Understand regional issues based on

evidence

- Analyze administrative resources

- Examine private services, precedent

cases, etc.

Co

mm

un

ica

tion

(2) Communication with private sectors

(A) Disclosure of information

- Publish data related to regional issues

(B) Receive suggestions

- Invite ideas that lead to solve issues

(C) Discussion

- Discussion with the private sector

(D) Comparative review

- Compare and examine various ideas

Co

op

era

tion

(3) Select a partner

- Conclude a comprehensive partnership

agreement

- Conclude an individual agreement

(4) Implement cooperative projects

- Conduct cooperative projects based on

agreements

(5) Check the status of cooperation

- Examine the effect and review the

partnership as needed

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(1) Understanding issues

The first step of PPPs is the accurate understanding of regional issues. While some of the

problems affecting the region are ones continuing from the past, others are new. When

dealing with a current issue affecting the City or considering what problems may occur in the

future, it is essential to fully grasp, review and organize.

The important thing in doing this is that it should be based on evidence by collecting and

analyzing a vast variety of data. The City will put effort into accurately understanding local

issues based on evidence.

In addition to understanding the regional issues, we also examine the administrative

resources (human resources, material resources, funds, information, etc.) of which the City

can utilize.

We will also investigate as much as possible whether there is any private service that

leads to solutions to the regional issues, as well as precedent cases utilizing private services

in other municipalities.

(2) Discussion with the private sector

The City puts importance on communication in PPPs. In addition to searching for solutions

by the City ourselves, we will accept ideas for solving regional issues from private sectors by

actively sharing information with external organizations. We will compare and examine as

many methods as possible in order to find the best solution for the regional issues upon

sharing the ideas.

(A) Information disclosure

The regional issues the City has, with the reasons of judging the issues and the

relevant data, shall be widely announced through the administrative plan. Also, by

disclosing the data on the current state of the City as much as possible, we will be able

to find issues from the viewpoint of private sectors, which may lead to proposals of

solutions. However, this excludes information, such as personal information, that should

be protected by the City based on the various regulations.

(B) Accept proposals

We will welcome the regional issues seen from the viewpoint of private sectors as

well as ideas for solving them. In doing this, we will establish a desk for receiving

suggestions (refer to page 14 “Structure for Promoting PPPs”).

If a proposal has a good understanding of regional issues and it is effective for

solving them, the City will accept proposals broadly without distinguishing the proposing

entity (excluding proposals intended for business purpose only).

In addition to accepting proposals, the City will also spread information on issues that

are expected to be effective for cooperation with private sectors.

Conceptual stage

Discussion stage

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(C) Implementation of discussion

The City shall discuss with the private sector ideas received from them. Through

doing so, we will examine how the idea is effective for solving regional issues, and at

which point it has an advantage compared to other methods. We will conduct interviews

from other private companies that provide a similar service if necessary. In addition, we

will examine the public consciousness such as basic viewpoint towards solving social

issues of relevant private sectors through the discussion.

(D) Comparative study

We will compare and examine the various ideas proposed by private sectors,

administrative resources which can be utilized by the City and in cases of private

services.

In the comparison, we will decide how to solve regional issues by examining the

proposals from the viewpoint of improvement of public services and its cost (operational

cost and labor cost).

In doing this, we will determine the possibility of putting said idea into practice, such

as checking legal regulations. Even if it is not possible under the present regulation, if it

is a truly necessary approach to make, we will appeal to the Government of Japan and

Tokyo Metropolitan for deregulation, and focus our efforts towards the project.

If necessary, we will repeat these steps of comparison, examination, and discussion

mentioned above (C).

(3) Determine the partner (conclusion of partnership agreement, etc.)

If it is determined that cooperation with private sectors is effective in resolving regional

issues, we will decide on cooperative partners by concluding comprehensive partnership

agreements or individual agreements. In deciding on a partner, the City will examine on how

to create a structure to ensure equity and transparency.

In concluding agreements, since it is premised that the cooperation with partners in the

private sector is in the medium to long term, we will carefully examine and clarify the purpose

of the project, as well as secure a concrete structure for the effective management of the

partnership agreement and the like upon its conclusion. Also, when the City concludes a

partnership agreement, it will be actively announced from the viewpoint of ensuring

transparency.

*Conditions for changing the contents of agreement, etc. and clarification of the

effective period, etc.

When concluding agreements that are related to PPPs, it is important to take notice of

responding to situation changes by establishing the period of cooperation, as well as clarifying

the conditions for reviewing the contents.

Cooperation stage

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(4) Implementation of a cooperative project

We will conduct PPP projects towards solving regional issues based on agreements, etc.

Concrete arrangements that are necessary for implementation of cooperative projects must

abide by the various regulations and guidelines established by laws and the City.

(5) Examination of the project

The premises of PPPs may change due to the progress in approaches towards resolving

regional issues, socio-economic situation and other reasons. In order to respond to such

changes flexibly and to continue providing high quality public services, we will conduct regular

monitoring of the projects. By verifying the results of PPP in an objective manner with an

appropriate time period, and reviewing it as need, we will always optimize cooperative

projects.

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7 Structure for Promoting PPPs

Establish a Public-Private Partnership Desk (provisional name)

The City will establish a one-stop service counter Public-Private Partnership Desk

(provisional name), which broadly accepts ideas on cooperative projects, in order to more

actively proceed PPPs aimed at solving regional issues. The Public-Private Partnership Desk

(provisional name) is not just a service counter but also a place for having discussions with

private sectors who have brought in ideas, as well as for coordinating with each division in the

office.

[Image of the Public-Private Partnership Desk (provisional name)

Social action program Corporate activities

(main activity)

Attra

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develo

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en

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co

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be

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ity a

nd

priv

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.

Cooperation, sharing information

Private sectors

Public-Private Partnership Desk (provisional name)

XX department XX department ・・・

Ota City

Office

Individual agreement

Comprehensive partnership agreement

Private consignment

Ota City Public-Private Partnership Basic Guidelines January 2019

Issued by Ota City

Planning and Management Department

5-13-14 Kamata, Ota-ku, Tokyo

144-8621, Japan

Tel: +81-3-5744-1735 (direct)

Fax: +81-3-5744-1502

http://www.city.ota.tokyo.jp/