Ratings agency Moody’s has suggested that the proposed privatisation of Osaka City Government’s transport system, together with a private concession for Kansai airport could encourage private finance in the country.
In its report, Osaka Transport Plan a Bellwether for Japanese Private Infrastructure Finance, Moody’s suggests that Osaka’s plans could become a model for other parts of Japan to follow, provided it proves successful.
Moody’s points to the growing interest in PPPs from the Japanese government, which has set an ambitious target of completing JPY12trn ($100bn) of PPP deals by 2022.
While it warns that plans to create an operating subsidiary for Osaka’s transport system is still subject to political events, Moody’s sees good potential for the new body.