Comprehensive Management Plan FAQ
Answers to basic questions about formulation requirements, update timing, and relationship to individual facility plans
Unit costs and amounts in financial examples without a cited source are illustrative assumptions, not statistically established market rates. Use estimates and comparable records appropriate to the target facility, location and business when preparing a project plan. Distinguish these assumptions from cited statistics and case expenditure.
Comprehensive Plan formulation rate (March 2024)
100%
Estimated infrastructure renewal costs over 30 years (preventive maintenance)
¥190 trillion
National government buildings more than 30 years old
Over 50%
MLIT. No equivalent national figure exists for municipal public facilities
FAQ questions covered in this article
30 questions
Q1. What is a Comprehensive Public Facility Management Plan? Is formulation mandatory?
A Comprehensive Public Facility Management Plan is a plan for promoting the comprehensive and systematic management of all public facilities (buildings and infrastructure) owned by a municipality. A 2014 notification from the Ministry of Internal Affairs and Communications requested all local government bodies to formulate such plans. While not a legal "obligation," municipalities that fail to formulate one cannot utilize local bonds for facility consolidation and complex use (Public Facility Appropriate Management Promotion Project Bonds), making formulation effectively mandatory.
As of March 2024, the formulation rate has reached 100%, and the current challenge has shifted from "formulation" to "execution."
Q2. What is the relationship between comprehensive plans and individual facility plans?
While the comprehensive plan sets the overall policy for all facilities as an "umbrella plan," individual facility plans define specific response policies (life extension, consolidation, use conversion, etc.) for each facility as "implementation plans." The comprehensive plan alone does not determine specific actions for individual facilities.
The Ministry of Internal Affairs and Communications requested individual facility plans to be formulated by the end of FY2020, and progress has been made in many municipalities. However, ongoing review based on changes in facility deterioration status and usage conditions is necessary, requiring PDCA cycle operation.
Q3. How large is the bill for renewing ageing facilities?
According to MLIT estimates, infrastructure maintenance and renewal costs over the next 30 years will reach approximately ¥190 trillion even under preventive maintenance assumptions. Under reactive maintenance (fixing only after failure), the figure balloons to approximately ¥280 trillion.
Most municipal public facilities were built during the high-growth period of the 1960s–1980s. As these facilities simultaneously reach their renewal period, the "concentration of renewal costs" strains municipal finances. The concurrent decline in tax revenue due to population decrease and the increase in facility renewal demand creates a dual challenge underlying public facility management.
Q4. When should the comprehensive management plan be reviewed?
The Ministry of Internal Affairs and Communications recommends review approximately every 5 years. FY2024 marks the first review period for many municipalities, requiring plan refinement based on individual facility plan progress. Reviews should incorporate updated facility usage data, population projections, and fiscal outlook changes.
Q5. We formulated a comprehensive plan, but it is not being utilized internally. What should we do?
This is a challenge many municipalities face. Three approaches are effective in preventing the plan from becoming a "formulate and forget" document:
- Develop and publish facility cards: Create a list of each facility's deterioration status, utilization rate, and maintenance costs, and share it internally
- Visualize renewal timelines: Create a timeline of facilities requiring major renovation or reconstruction over the next 10 years and share it with the finance department
- Establish cross-departmental promotion structures: Set up cross-cutting teams that include not just facility management divisions but also finance, planning, and general affairs
PPP/PFI Method Selection FAQ
Answers about method differences, selection criteria, and Priority Review Procedure requirements
Q6. What types of PPP/PFI methods are available?
PPP (Public-Private Partnership) encompasses diverse methods. The key ones are:
| Method | Overview | Typical Scale |
|---|---|---|
| Designated Manager System | Private management of public facilities | Small–Medium |
| Comprehensive Private Outsourcing | Bundled outsourcing of multiple services | Small–Medium |
| Park-PFI | Revenue-generating facilities in urban parks | Medium |
| Small Concession | Operating rights for small-scale idle public property | Under ¥1 billion |
| PFI Act (BTO/BOT/BOO) | Facility development and operation using private capital | ¥1 billion+ |
| Concession | Operating rights for public facilities | Large |
Q7. What is a Priority Review Procedure? Is it mandatory?
A Priority Review Procedure is an internal regulation requiring priority consideration of PPP/PFI methods for public facility development projects above a certain scale. The Cabinet Office guidelines, as revised on 4 June 2025, ask municipalities with populations of 50,000 or more to establish such procedures (previously 100,000 or more).
Q8. How is a sounding-type market survey conducted?
A sounding-type market survey is a method for confirming market interest and the appropriateness of project conditions through dialogue with private sector operators at the concept stage. MLIT provides a nationwide platform where municipalities can register projects and receive proposals from private operators.
The general process is:
- Preparation: Prepare a project summary outlining facility details, conditions, and municipal intentions
- Participant recruitment: Publicly invite participating operators via municipal website and MLIT's platform
- Dialogue sessions: Conduct individual dialogues to hear operator intentions, ideas, and concerns (typically 30 min–1 hour per company)
- Results compilation: Anonymize and publish dialogue results, incorporating findings into project condition design
Q9. Can municipalities with populations under 50,000 adopt PPP/PFI?
Yes. Park-PFI has been successfully implemented in municipalities with populations as small as 20,000. Methods suited for small municipalities include:
- Designated Manager System: Most accessible entry point
- Park-PFI: Applicable even to small-scale parks
- Small Concession: Suited for idle public property under ¥1 billion
- Proposal-based selection: Widely used for abandoned school reuse
Q10. How long does it take from PPP/PFI consideration to project launch?
Timelines vary significantly by method:
| Method | Consideration to Launch | Notes |
|---|---|---|
| Designated Manager System | 1–2 years | Ordinance amendment, public recruitment, selection |
| Park-PFI | 1.5–3 years | Sounding → recruitment → design/construction |
| Small Concession | 1–2 years | Relatively simple institutional design |
| PFI Act (BTO) | 3–5 years | Implementation policy → project selection → operator selection → contract |
According to the Cabinet Office guidelines, PFI Act-based projects typically require 2–3 years from the formulation of an implementation policy to contract execution with the selected operator.
Resident Consensus and Assembly Response FAQ
Approaches to resident briefings, public comments, and assembly explanations
Q11. How can resident opposition to facility consolidation be overcome?
Q12. How can the effectiveness of public comments be improved?
Q13. How should PPP/PFI adoption be explained to the assembly?
Q14. How many resident briefings should be held, and at what timing?
Q15. To what extent should opposing views be reflected in plans?
Finance and Cost FAQ
VFM, local bonds, tax allocation measures, and project cost calculation methods
Q16. What is VFM (Value for Money)? How is it calculated?
Q17. Are there subsidies or tax allocation measures available for PPP/PFI projects?
Q18. How should the appropriate level of designated management fees be determined?
Q19. Which is financially more advantageous: facility closure or use conversion?
Q20. How should the cost-effectiveness of consolidation and complex use be verified?
Practical Process FAQ
Specific procedures for sounding surveys, proposals, and contract management
Q21. What is the difference between proposal-based selection and PFI Act public recruitment?
Q22. What are the specific monitoring methods?
Q23. What are the response procedures if an operator withdraws?
Q24. Who bears management responsibility for PPP/PFI facilities during disasters?
Q25. Where should idle public property information be published?
Other Questions
Q26. Where can PPP/PFI training be obtained?
Q27. Where can precedent cases from other municipalities be researched?
Q28. What are the criteria for selecting consultants (advisors)?
Q29. How can participation opportunities for local businesses be secured?
Q30. What constitutes PPP/PFI "failure"?
Related Articles
PPP/PFI Introduction for Municipal Officials
A from-scratch guide covering the difference between PPP and PFI and the full landscape of seven methods
Public Facility Management Practice Guide
Practical procedures from comprehensive plan formulation to individual facility plan development
Sounding Survey Design Template
Practical templates for designing, conducting, and applying market sounding surveys
What to do next
When considering PPP/PFI, review the facility conditions and the municipality's rules.
| # | What to check or consider | Responsible team or contact |
|---|---|---|
| 1 | Check the project's cost against the national reference thresholds of ¥1 billion for projects including construction and ¥100 million a year for operation-only projects, and against your municipality's rules | Budget team |
| 2 | Check the municipality's priority review rules. If none exist, consider developing them with reference to Cabinet Office guidance | Planning team |
| 3 | Check whether user charges are collected and assess expected income. For facilities that can charge users, also examine concession requirements | Departments responsible for each facility |
| 4 | Compare applicable methods using project cost, facility type and expected user fee income. Park-PFI may be an option for urban parks, and small concessions for idle facilities | Responsible department and planning team |
| 5 | Choose a facility to pursue and ask private operators about their interest and project requirements | Market sounding |
Check project cost and the municipality's rules to establish whether priority review applies, then compare methods suited to the facility's use and expected income.
References
Guidelines for Formulation of Comprehensive Public Facility Management Plans — Ministry of Internal Affairs and Communications (2014)
PPP/PFI Promotion Action Plan (Revised 2024 Edition) — Cabinet Office Private Finance Initiative Promotion Office (2024)
PPP/PFI Promotion Guide for Small and Medium Municipalities — Cabinet Office Private Finance Initiative Promotion Office (2024)
Research Report on PPP/PFI Adoption in Municipalities with Populations under 200,000 — Ministry of Internal Affairs and Communications (2021)
