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48-461: The Tosa Kuroshio Railway Nakamura Line ( 土佐くろしお鉄道中村線 , Tosa Kuroshio Tetsudō Nakamura-sen ) is a 43.0 km Japanese railway line operated by the third-sector railway operator Tosa Kuroshio Railway . It connects Kubokawa Station in the town of Shimanto with Nakamura Station in the city of Shimanto in Kōchi Prefecture . The first section of the line, from Kobokawa to Tosa-Saga

96-543: A 4 trillion yuan ($ 562 billion) national stimulus plan. 72% of the stimulus plan consisted of infrastructure funding, and the central government funded only 30% of the package. This rapidly increased the rate of borrowing by local governments through LGFVs, with around two thirds of the package funded through borrowing. In 2014, Chinese local governments were permitted to borrow money directly, in an attempt to reduce their reliance on LGFVs. By 2017, bonds represented 90% of local government debt, up from 7% in 2014 (when most debt

144-517: A P3 as "a partnership between a public sector entity (sponsoring authority) and a private sector entity (a legal entity in which 51% or more of equity is with the private partner/s) for the creation and/or management of infrastructure for public purpose for a specified period of time (concession period) on commercial terms and in which the private partner has been procured through a transparent and open procurement system." The union government has estimated an investment of $ 320 billion in infrastructure in

192-612: A capital value of approximately €260 billion. On the onset of the financial crisis in 2008, estimates suggest that the number of PPP deals closed has fallen more than 40 percent that year. A study, conducted by the European Court of Auditors of the European Union, examined 12 public-private partnerships in France, Greece, Ireland and Spain, in road transport and information and communications technology. It concluded that

240-977: A company registered under the Business Corporations Act, that is wholly owned by the province of British Columbia and reports to its shareholder the Minister of Finance. Projects include the Canada Line rapid transit line, the Abbotsford Hospital and Cancer Centre and the Sea-to-Sky Highway project. In Quebec , PPPs include the McGill University Health Centre , the new western extension of Autoroute 30 and Université de Montréal 's Hospital Research Center. The PPP model has been adapted to China, where there were 9,575 PPP projects with

288-535: A result of this increase in the role played by PPPs in new public-sector infrastructure projects and the complexity of PPP contracts, the European PPP Expertise Centre (EPEC) was established to support the public sector's capacity to implement PPPs and help overcome problems common across Europe in PPPs. From 1990 to 2009, nearly 1,400 PPP deals were signed in the European Union, representing

336-628: A share of the consumption tax. It was estimated that revenue from the sale of land use rights (LUR) constituted 60-80% of local government revenue in 2018. In 2019, LGFV bonds constituted 39% of total outstanding corporate bonds in China's domestic (onshore) bond market, with widely varying credit risks. In 2020, the Chinese property sector crisis heightened concerns about local governments' reliance on LGFVs and land sales, with local government bonds reaching 28.6 trillion yuan (US$ 4.5 trillion), or 23% of

384-624: A somewhat similar fashion to that of community rail in the United Kingdom. The PPP model developed in Pakistan is built around this approach, structured to provide a parallel alternatives to traditional healthcare using corporate infrastructures which has been packaged as corporate social responsibility . The Philippine Government ( Filipino Pag tutulungan ng Pampubliko – at Pribadong Sektor ) maintains an online list of PPP projects. Misplaced Pages articles on specific PPP projects in

432-426: A temporary measure to repay older bonds. The Guarantee Law prohibits local governments from guaranteeing the debts of LGFVs. Local governments can inject assets into LGFVs if necessary and therefore LGFVs are generally viewed by lenders as low risk and LFGVs are therefore able to borrow extensively. The business of most LGFVs is the development of industrial parks and other forms of urban infrastructure. After

480-653: A total value of 15 trillion RMB in the country as of May 2020. The Chinese government particularly promotes the use of PPP in infrastructure development. In the Chinese PPP model, many of the "private partners" are state-owned enterprises , often local government financing vehicles . PPP projects in China involving privately-held "private partners" are typically comparatively small projects like sewage works or garbage facilities. The European Commission sees Investments in public-sector infrastructure are seen as an important means of maintaining economic activity. As

528-415: A unified real estate registration system, which could enable the property tax to be implemented. In July 2023 China's state-owned banks began providing loans to LGFVs with a generous repayment period of 25 years, in an attempt to relieve some of the pressure. Peking University academic Yang Yao attributed the problem of unsustainable local government debt to various political economy issues, including

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576-509: A unique role in securing funding for local governments to develop their economies. However, the vehicles rarely make enough returns to pay back their debts, often requiring local governments to raise more money to pay back their creditors. Both the number and the indebtedness of LGFVs have soared in recent years, sparking fears about their inability to repay debts as well as subsequent defaults . Although LGFVs are operated by local governments, who investors assume will remain accountable for them,

624-669: Is also regulated by Federal Law #115-FZ (21.07.2005) "On concessional agreements" and Federal Law #94-FZ (21.07.2005) "On Procurement of Goods, Works and Services for State and Municipal Needs". In some ways PPP is also regulated by Federal Law No.116-FZ (22.07.2005) "On special economic zones" (in terms of providing business benefits on special territories – in the broadest sense it is a variation of PPP). Still all those laws and documents do not cover all possible PPP forms. In February 2013 experts rated subjects of Russian Federation according to their preparedness for implementing projects via public–private partnership. The most developed region

672-791: Is now know as the Start-up Nation . In Japan since the 1980s, the third sector ( 第三セクター , daisan sekutā ) refers to joint corporations invested in by both public and private sectors. In rail transport terms, a third-sector railway line is a short line or network of lines operated by a small operating company jointly owned by a prefectural/municipal government and smaller private interests. Third-sector lines are generally former JR Group – or, before 1987, Japanese National Railways (JNR) – lines that have been divested from those larger companies. Most third-sector railway lines in Japan, especially those located in rural areas, operate in

720-940: The Airport Link , the Cross City Tunnel , and the Sydney Harbour Tunnel , all in Sydney ; the Southern Cross station redevelopment in Melbourne ; and the Robina hospital in Queensland . In the 2010s, the States of New South Wales , Queensland and Victoria implemented policies to encourage market-led proposals, where potential private partners can pitch PS projects for consideration by

768-649: The September 11 attacks , the government and BAA Limited each invested £65 million in the private sector operator in 2003. Public-private partnerships in America have existed in one form of another since the beginning of the colonial period , as colonial charters were based on a partnership between the British Crown and a company responsible for colonisation. In the United States , they mostly took

816-547: The Wall Street Journal reported that the central government was planning to implement a nationwide property tax, to tackle real estate speculation and provide local governments with more stable revenue. However, the report detailed widespread resistance within the Chinese Communist Party , leading to various alternative proposals including state-owned housing. On 23 October, a five-year trial of

864-513: The 10th plan. The major infrastructure development projects in the Indian state of Maharashtra (more than 50%) are based on the P3 model. In the 2000s, other states such as Karnataka, Madhya Pradesh, Gujarat and Tamil Nadu also adopted this model. Sector-wise, road projects account for about 53.4% of the total projects in numbers, and 46% in terms of value. Ports come in second place and account for 8% of

912-556: The Minister of Finance to Parliament. Its mandate is to improve the delivery of public infrastructure by achieving better value, timeliness and accountability to taxpayers, through P3s. The Corporation became operational in February 2009 with the appointments of a chair of the board of directors and a chief executive officer. PPPs exist in a variety of forms in British Columbia through the focused efforts of Partnerships BC,

960-662: The National Audit Office of the United Kingdom concluded that the private finance initiative model had proved to be more expensive and less efficient in supporting hospitals, schools, and other public infrastructure than public financing. In the UK, two-thirds of the London Underground PPP was taken back into public control in July 2007 after only four and a half years at an estimated cost of £2 billion and

1008-648: The Philippines are categorized into Category:Proposed infrastructure in the Philippines . The Philippine BOT Law, Republic Act No. 6957 has been passed on May 5, 1994, and had been subsequently amended by RA 7718 with the Revised 2022 IRR of the BOT Law in 2012. Republic Act 11966 or the PPP Code of the Philippines was signed into law on December 5, 2023. On March 21, 2024, the implementing rules and regulations

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1056-664: The Policy for the Development of Public-Private Partnerships. In 2019, the Ministry offered public authorities with information and guidance on public-private partnerships. Poland is developing PPP Guidelines, following the path of the UK and other nations burdened by PPPs. In September 2018, the first installment on PPP Project Preparation was released. In his paper on P3s in Spain, José Francisco Bellod Redondo notes that one of

1104-650: The ability of PPPs to deliver on the Sustainable Development Goals. In India , public–private partnerships have been extremely successful in developing infrastructure, particularly road assets under the National Highways Authority of India and Midday Meal Scheme with Akshaya Patra Foundation . The Yozma Program that started in Israel in 1993 kick-started the venture capital scene with public incentives , Israel

1152-521: The country by providing a unified legal framework for all PPPs at both national and local levels," he explained. It clarifies the ambiguities in the Build–operate–transfer Law, last amended in 1994, and other existing PPP legal frameworks. Nowadays there are special laws about PPP in 69 subjects of Russian Federation. But the biggest part of them are just declarations. Besides PPP in Russia

1200-425: The economic reforms of the late 1970s, China's economic growth was largely fueled by rural areas. The result of this growth was that in 1993, only 22% of Chinese tax revenue was being collected by the national government. In 1994, China underwent financial reforms with a goal of "fiscal recentralization", which aimed to boost the national government's earnings. In doing so, they shrank local tax revenue to below 50% of

1248-538: The effect on public accounts was largely illusory. The Labour government of Tony Blair , elected in 1997, expanded the PFI initiative but sought to shift the emphasis to the achievement of "value for money", mainly through an appropriate allocation of risk. However, it has since been found that many programs ran dramatically over budget and have not provided value for money for the taxpayer, with some projects costing more to cancel than to complete. An in-depth study conducted by

1296-625: The entire Chinese bond market. The International Monetary Fund estimated that local government debts nearly doubled from 2018 to 2023, reaching 66 trillion yuan ($ 9 trillion), nearly half of China's annual economic output. In 2021, new regulations prohibited financial institutions from providing fresh liquidity to LGFVs. Following these regulations, local governments are required to raise funds through issuing bonds, subjecting them to stronger oversight. Although no LGFV has ever defaulted (as of 2023), some have been making last-minute payments, which can indicate financial distress. In October 2021,

1344-670: The form of toll roads concessions , which emerged in the mid to late nineteenth century. In recent years, there has been interest in expanding P3s to multiple infrastructure projects, such as schools, universities, government buildings, waste and water. In the early 2000s, P3s were implemented sporadically by different States and municipalities with little federal guidance. However, during Obama's second term , multiple policies were adopted to facilitate P3 projects, and Congress passed bills in that direction with overwhelming bipartisan support. P3s were introduced in Vietnam in 2010, with

1392-654: The goal of attracting private investments for the country's infrastructure projects. This development was encouraged by the World Bank . By 2016, Vietnam had introduced 101 P3 projects, totaling $ 18.5 billion. In 2019, Vietnam adopted its first P3 law, which was rafted in collaboration with the United States Agency for International Development (USAID). Source: World Bank Local government financing vehicle Since local governments in China are not allowed to issue municipal bonds, LGFVs have played

1440-551: The government. In Bangladesh , the Infrastructure Investment Facilitation Center facilitates private sector investment. As a result of their efforts, the telecom sector has become a very active private investment area. In Canada , public–private partnerships have become significant in both social and infrastructure development. PPP Canada Inc. was created as a Crown corporation with an independent board of directors reporting through

1488-551: The island of Rhodes . The Netherlands Financial Sector Development Exchange (NFX) is a platform of ING , Rabobank , ABN AMRO , Fortis , Triodos Bank , FMO (Dutch development bank) and the Dutch Ministries of Foreign Affairs , Economic Affairs and Finance to stimulate financial sector development in developing countries and emerging markets . In July 2017, the Polish Council of Ministers approved

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1536-835: The main drivers for PFI in Spain is compliance with the fiscal restrictions imposed under the Maastricht Treaty and Stability and Growth Pact, which set concrete limits to the national debt. Examples of PFI projects in Spain include Parque de Valdebebas in Madrid, Ciutat de la Justicia in Barcelona, the Autovia de Noroeste in Murcia, and the Hospital Puerta de Hierro in Majadahonda. The Government of India defines

1584-502: The maximum line speed was raised from 85 km/h to 110 km/h. Public-Private Partnerships In Japan A number of Australian state governments have adopted systematic programmes based on the Private Finance Initiative . The first, and the model for most others, is Partnerships Victoria. While some PPP projects have proceeded smoothly, others have been highly controversial. Australian examples include

1632-423: The moral hazard of local governments not bearing the risk from their borrowing, and frequent rotation of officials. As a solution he proposed 4 billion yuan of central government support, along with a variety of debt restructuring options, such as integrating the budgets of all state-owned enterprises with their corresponding governments. In 2023, a study by David Daokui Li concluded that local government debt

1680-748: The often-unsecured debt is classified as "corporate debt", and the central government has indicated it would not bail out a bankrupt LGFV. Since land has traditionally been owned by the local governments, LGFVs have also turned to earning revenue by through land sales or leases, which can help to repay its creditors. Land can also be used as collateral to secure the bonds. Local governments in China cannot issue municipal bonds and cannot borrow money from banks. To borrow money for development, local governments can establish LGFVs. LGFVs borrows money from creditors, mostly by selling bonds in security markets. LGFVs then provide funding to comprehensive urban development projects. The developments typically increase

1728-540: The partnerships were characterized by "widespread shortcomings and limited benefits" and underlined "considerable inefficiencies in the form of delays during construction and major cost increases". The Greek Inter-Ministerial PPP Committee authorized two Public-Private Partnership projects in September 2017 and October 2018, including eight schools in the Cretan Municipality of Chania and 13 schools on

1776-411: The proposed tax was announced for select regions with particularly hot property markets, such as Shenzhen , Hangzhou and Hainan . Although the property tax could reduce government reliance on land value through LGFVs, it has been estimated that a property could reduce land value by 50%, and that this risk to property owners was contributing to lower land sales. In April 2023, the government completed

1824-455: The reforms saw the central government give up its share of land transfer proceeds, so the proceeds would belong entirely to local governments. This incentivized local governments to increase land value by developing infrastructure, and LGFVs emerged as a solution to the problem of raising finance for these projects. The 2007–2008 financial crisis prompted the Chinese government to introduced

1872-670: The remaining one-third was taken back into public control in May 2010 after seven and a half years for a purchase price of £310 million. The government had paid advisers £180 million for structuring, negotiating and implementing the PPP and had reimbursed £275 million of bid costs to the winning bidders. The 30-year PPP contract for the refurbishment of the Ministry of Defence Main Building in London

1920-705: The total projects (21% of the total value). Other sectors including power, irrigation, telecommunication, water supply and airports, have gained momentum through the P3 model. As of 2011 , these sectors were expected to get an investment of Rs. 2,027,169 crore (according to 2006–2007 WPI ). Recent failures of the major PPPs in India, such as the Tata Mundra Ultra Mega Power Project and the Khandwa Water Supply Augmentation Project, are now questioning

1968-416: The total, down from 78%. Local governments still shouldered 70% of regular spending. The reforms also mandated that local governments must have balanced budgets and zero debt, which made it much harder for them to secure financing for infrastructure development. The 1994 reforms, however, permitted local governments to engage in land financing, where they would earn revenue through leasing land. In addition,

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2016-422: The value of the surrounding land, which is owned by the local government. The higher land value then boosts local government revenue, through the local government's leasing of land by selling land use rights (LUR). The LGFV can then pay back its loans, using revenue from land leasing and any revenue from completed projects to pay back its loans. If these revenue sources were not enough, it could issue more bonds as

2064-542: Was Saint Petersburg (with rating 7.8), the least Chukotka (rating 0.0). By 2013 there were almost 300 public–private partnership projects in Russia. In 1992, the Conservative government of John Major in the UK introduced the PFI , the first systematic program aimed at encouraging public-private partnerships. The 1992 program focused on reducing the public-sector borrowing requirement , although, as already noted,

2112-520: Was 50% higher than previously estimated by the IMF and World Bank. The study found that the majority of debts were for infrastructure, and the level of debt was unsustainable without central government support. By 2024, economists estimated that the indebtedness attributable to LGFVs had reached between $ 7 trillion and $ 11 trillion, the Wall Street Journal reported. Of that debt, $ 800 billion

2160-559: Was borrowing from banks). In 2015, the Chinese government introduced a Free Trade Zone in Nansha District , which trialed a new model of land finance to encourage private investment in development. In 2018, the central government announced that it would not bail out LGFVs that go bankrupt, in order to signal the need for caution to the financial markets. Around this time reforms were made which increased local government's share of value-added tax from 25% to 50%, and granted them

2208-479: Was estimated to give a saving of £100,000 as compared to the £746.2 million cost of public procurement. The refinancing of the Fazakerley Prison PFI contract following the completion of construction delivered an 81% gain to the private sector operator. The NATS PPP saw 51% of the UK's air traffic control service transferred to the private sector; however, following the decline in air traffic after

2256-696: Was opened by Japanese National Railways (JNR) on 18 December 1963, and operated using diesel trains, functioning as an extension of the Dosan Line . The section from Tosa-Saga to Nakamura opened on 1 October 1970. Freight operations ceased in 1984, and from 1 April 1988, operation of the line was transferred to the Tosa Kuroshio Railway. With the opening of the Tosa Kuroshio Railway Sukumo Line in October 1997,

2304-467: Was signed by Government officials led by Arsenio Balisacan at The Mega Tower , Mandaluyong . "This pivotal moment underscores the Marcos administration's commitment to its Build Better More program of building and realizing high-quality, game-changing infrastructure projects that enable socioeconomic transformation," Balisacan said. "The PPP Code and its IRR aim to strengthen and institutionalize PPPs in

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