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ARTICLE · Public Facility Management

Five Years of MLIT Hands-On Support: A Framework for Municipal Staff to Realize PPP/PFI Projects Themselves

A structured breakdown of MLIT Policy Bureau's April 2025 document 'Points for Realizing PPP Projects Obtained from Hands-On Support via Specialist Dispatch.' Covers the 26-municipality support track record from FY 2019 through FY 2024, the four difficulty levels for staff self-implementation, the three-stage project realization procedure, and the design intent of targeting municipalities with populations under 200,000.

The points of this article

  • Hands-On Support is MLIT's program of dispatching specialists to municipalities with populations under 200,000 so that staff themselves can advance project realization procedures
  • Supported 26 municipalities from FY 2019 through FY 2024; this document aims to laterally transfer the lessons obtained to other municipalities
  • Four difficulty levels organize the degree of staff self-implementation; project realization proceeds in three stages (project conception / project condition review / tender realization)
Who this is for, and what to know first

Who this is for

  • Municipal staff in cities with populations under 200,000 newly assigned to PPP/PFI
  • Municipal staff who want to judge what can be done internally before commissioning external consultants
  • Private operators who want to learn from the precedents of municipalities that received Hands-On Support
  • Prefectural staff providing advice to municipalities that are Hands-On Support targets
In this article

What Is Hands-On Support

From FY 2019 through FY 2024, MLIT operated the "Specialist Dispatch Hands-On Support" program targeting municipalities with populations under 200,000. The program dispatched specialists to municipalities to accompany staff in carrying out procedures necessary for project realization themselves. While advancing case formation for the supported municipality, it also aimed to laterally transfer the results.

What falls under priority review: 1 billion yen including construction, 100 million yen a year for operations alone, and optionally projects below the thresholds including small concessions.
Below the thresholds, inclusion is still possible where joint delivery could reach themSource: Cabinet Office, Guidelines for Prioritizing Diverse PPP/PFI Methods (2025 revision)

In April 2025, MLIT Policy Bureau compiled the lessons obtained from these efforts and published "Points for Realizing PPP Projects Obtained from Hands-On Support via Specialist Dispatch." The purpose is to disseminate know-how that lets municipal staff advance PPP project realization autonomously and independently.

This article organizes the document's structure and summarizes its practical use.

Five-Year Support Targets (26 Municipalities)

The municipalities and projects that received Hands-On Support (including additions through FY 2024):

FY 2019

MunicipalityProject
Hokkaido Memuro TownHeated pool DBO (Design-Build-Operate) project
Ibaraki Shimotsuma CityPublic facility consolidation and complexification project
Saitama Moroyama TownPublic-private partnership project at Moroyama General Park
Aichi Toyoake CityComprehensive management of urban parks and municipal cemeteries

FY 2020

MunicipalityProject
Miyagi Tome CityPublic-private partnership at roadside stations
Okayama Akaiwa CityPrivate housing development on former prefectural housing site
Yamaguchi Ube CityUrban park redevelopment and operation
Fukuoka Munakata CityPublic-private partnership at urban parks
Kumamoto Tamana CityPublic facility consolidation on former government office site

FY 2021

MunicipalityProject
Fukushima Aizuwakamatsu CityPublic parking development/operation and station plaza revitalization
Yamaguchi Ube CityUrban park redevelopment and operation
Okinawa Chatan TownPublic facility complexification and idle land utilization
Tokyo Koganei CitySounding study on Koganei City Hanahatake Park concept
Osaka Izumi-Otsu CityAbility Town hub development
Hyogo Takasago CityTakasago Mukaijima Park area integrated use

FY 2022

MunicipalityProject
Hokkaido Eniwa CityMunicipal Kashiyo and Keio housing rebuild
Iwate Ichinohe TownDBO method for roadside station design, construction, and operation
Aichi Aisai CityRoadside station surrounding development / Roadside station redevelopment
Osaka Kawachinagano CityIntroduction of private sector vitality at urban parks

FY 2023

MunicipalityProject
Chiba Kimitsu CityIntroduction of private sector vitality at Minowa Sports Park
Shizuoka Kakegawa City22nd Century Hill Park Tamarina indoor playground development
Aichi Anjo CityPPP for construction and operation of Multi-purpose Exchange Hub
Osaka Kishiwada CityAll-weather pool development at Kishiwada Central Park

FY 2024

MunicipalityProject
Iwate Oshu CityPublic housing rebuild PPP formation study
Ehime Masaki TownMasaki Town social education facility renewal

Roadside stations, urban parks, public housing, public facility consolidation, pools, parking, and station plazas — typical examples of public asset utilization in regional cities. Methods like Park-PFI, DBO, public housing, and small concessions are mixed, showing that Hands-On Support has covered a wide range of types.

Four Difficulty Levels by Project Type

As an output of Hands-On Support, public-private partnership projects are organized into four difficulty levels. The judgment axes are "necessity of specialist involvement" and "scope of stakeholders to coordinate."

Level 1: Existing Public Facility Operation + α (Private Proposal Elements)

Main review items:

  • Performance-based ordering instead of specification-based ordering
  • Small-scale renewal proposals
  • Revenue businesses utilizing the facility, event implementation

Specialist involvement necessity: For small-scale projects, realization is possible with staff alone without advisor involvement.

Stakeholders to coordinate: Existing users, user groups, existing operators in management and operation.

Level 2: Public Land Utilization

Main review items:

  • Review of constraints on utilization
  • Review of utilization conditions (rent, leasehold period, rights, including fixed-term leasehold)
  • Balance between revenue businesses and public interest elements

Specialist involvement necessity: By detailing the basic plan, work can be streamlined, and staff-only realization is also possible.

Stakeholders to coordinate: Neighboring residents, adjacent landowners, local companies running similar businesses.

Level 3: DBO / DB / Lease Methods

Main review items:

  • Review and formulation of basic concept and basic plan
  • Formulation of required service level documents
  • Estimation of expected prices

Specialist involvement necessity: Technical advisor involvement is needed for formulating required service level documents and the like.

Stakeholders to coordinate: All residents in the area, local companies including construction firms, internal and council coordination on development budgets.

Level 4: PFI etc.

Main review items:

  • Review and formulation of project contracts
  • Review of payment schemes (installment payments and incentive schemes)
  • Review of profitability of revenue businesses (RO method, concession method)
  • Formulation of long-term repair plans, estimation of repair costs
  • Implementation of facility due diligence, risk allocation for defect liability

Specialist involvement necessity: Since stable project conditions need to be built in advance over the long term, including financial institutions, financial, technical, and legal advisors are important for realization.

How to Use the Difficulty Levels

In advancing public-private partnership projects, it is effective to start with things that have lower difficulty and can be implemented by municipal staff themselves, then accumulate experience and know-how in preparation for introducing higher-difficulty PPP methods.

Rather than challenging PFI (level 4) from the start, the recommended path is to accumulate experience stepwise from levels 1-2.

The Three-Stage Project Realization Procedure

Stage 1: Project Conception

The phase of organizing project realization patterns and qualitative effects of introduction through dialogue with the private sector while considering stakeholder opinions.

Main tasks:

  1. Organization and concretization of items expected from PPP method introduction (purpose and premise confirmation, internal review structure construction, opinion gathering from stakeholders, momentum building, precedent investigation and hearings)
  2. Project conception stage sounding (preparation, implementation, summarization of results)
  3. Review of project realization policy

Stage 2: Project Condition Review

The phase of reviewing project conditions acceptable from both public and private viewpoints in order to realize the project concept.

Main tasks:

  1. Drafting of project scheme outline
  2. Project condition review stage sounding (individual sounding)
  3. Scheme decision and realization judgment (project scheme revision, expected price organization, project implementation effect grasp)

Stage 3: Tender and Realization

The phase of pouring project realization conditions fixed in the project condition review stage into specific tender-related documents and seeking better private sector know-how and ideas under specific conditions.

Main tasks:

  1. Review of tender schedule
  2. Preparation of various documents necessary for tender (solicitation guidelines, review criteria, required service levels, contract drafts, etc.)
  3. Preparation of Q&A
  4. Preparation of materials for the review committee
  5. Cautions for contract conclusion
  6. Cautions for internal procedures

Ultimately reaches operator selection and project commencement.

Design Intent of Targeting Municipalities Under 200,000

Hands-On Support targeted municipalities with populations under 200,000. That mirrors the threshold the Cabinet Office's guidelines originally set in 2015, requiring municipalities of 200,000 or more to establish priority review regulations.

That threshold has since fallen twice. The June 2021 revision lowered it to 100,000, and the current edition sets it at 50,000. Most of the municipalities under 200,000 that Hands-On Support served are now on the side required to have a regulation.

Municipalities under 200,000 do not have the regulation development obligation, but their PPP/PFI staff are limited and internal know-how is hard to accumulate. The Hands-On Support program pushes project realization for this scale of municipalities while leaving internal know-how with staff.

By design, even after support ends, the project realization capability remains within the municipality, building a foundation for continuous engagement with subsequent cases.

Practical Use

For Municipal Staff

When facing a case as PPP/PFI staff, first judge which of the four difficulty levels applies.

  1. Only existing facility operation improvement + private proposal elements → Level 1, can proceed with staff alone
  2. Public land utilization → Level 2, staff-only possible depending on scale
  3. DBO / DB / lease methods → Level 3, technical advisor needed
  4. PFI / concession → Level 4, financial, technical, and legal advisors essential

Then grasp where in the three procedural stages you currently are. At the project conception stage, start with sounding design and internal review structure construction.

For Private Operators

Hands-On Support target municipalities (populations under 200,000) have limited internal know-how, so private operator proposals and advice strongly influence project realization. Sharing the difficulty judgment and stage grasp improves the efficiency of dialogue with municipal staff.

Municipalities with support track records (the above 26) have accumulated certain knowledge on the staff side through Hands-On Support. The communication design at proposal time can be adjusted to the level of understanding of these municipalities.

Summary

MLIT's Specialist Dispatch Hands-On Support was a program from FY 2019 through FY 2024 targeting 26 municipalities with populations under 200,000, dispatching specialists to back project realization by staff themselves. The Policy Bureau published a document in April 2025 to laterally transfer these lessons.

It organizes the difficulty by project type into four levels (existing operation +α / public land utilization / DBO·DB·lease / PFI etc.), with levels 1-2 implementable by staff alone, level 3 requiring a technical advisor, and level 4 requiring financial, technical, and legal advisors.

PPP project realization procedures proceed in three stages (project conception / project condition review / tender realization). MLIT recommends starting from things with low difficulty that staff themselves can implement, accumulating experience, and then advancing to higher-difficulty methods.

What to do next

In the order you can act on them, within the week you read this.

#What to doWhereRough effort
1Establish the project cost. Above 1 billion yen including construction, or 100 million a year for operations alone, changes what priority review coversBudget teamHalf a day
2Check whether your organisation has a priority review regulation. If not, follow the Cabinet Office guidelinesPlanning teamOne week
3Sort facilities by whether user charges are levied, or could be. If they can be, operating rights come into viewEach departmentOne week
4Use steps 1–3 to narrow the method: Park-PFI for urban parks, a small concession for other idle facilitiesDepartmental decision—
5Pick the first project and run market sounding. Do not advance every facility at oncePrivate operators2–3 months

Step 1 takes half a day and decides whether review is mandatory at all.


References

Points for Realizing PPP Projects, from Hands-On Support by Dispatched Experts (main text) — Ministry of Land, Infrastructure, Transport and Tourism (2025)

Same, summary — Ministry of Land, Infrastructure, Transport and Tourism (2025)

Same, common questions — Ministry of Land, Infrastructure, Transport and Tourism (2021)

Guidelines and Handbooks | PPP/PFI — Ministry of Land, Infrastructure, Transport and Tourism (2026)


Statistics cited in this article

  1. 1MLIT, Overview of Hands-On Support through Expert Dispatch(2025) Open source
  2. 2Cabinet Office, Guidelines for Prioritizing Diverse PPP/PFI Methods (2025 revision)(2025) Open source

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Corrections

  1. — We gave only the 200,000 threshold for priority review regulations. It has since been lowered twice and now stands at 50,000.

    Before
    This aligns with the threshold of the Cabinet Office's guidelines, which asked municipalities with populations of 200,000 or more to develop priority review regulations
    After
    We note that 200,000 was the original 2015 threshold, and add that it fell to 100,000 in June 2021 and to 50,000 in the current 2025 edition

    Why we got it wrong The Cabinet Office's Guidelines for Prioritizing Diverse PPP/PFI Methods (2025 revision) state that local governments managing public facilities with populations of 50,000 or more are expected to establish priority review regulations. Most of the municipalities under 200,000 that Hands-On Support served are now on the side required to have one, so the difference matters in practice. We also added the source for the programme's own 200,000 threshold.

  2. — We separated the creation date from the update date for the hands-on support document.

    Before
    Published by MLIT's Policy Bureau in April 2025
    After
    Created by MLIT's Policy Bureau in October 2021 and updated in April 2025

    Why we got it wrong April 2025 is the update, not the original publication. We matched MLIT's own listing.

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