Investors still shut out of Japan’s biggest infrastructure class

Veolia Japan, a subsidiary of the Euronext-listed French firm Veolia Vie, has won a  20-year contract from the Shizuoka Prefecture city of Hamamatsu to manage part of its wastewater and sewage systems.

This is the first long-term concession granted in the sector as well as its first public-private-partnership – an arrangement now being promoted by the national government to improve country’s facilities.

It is also a “user-pay” project where “water will pay for water” with the cost of the sewerage service covered by income from sales of drinking water.

The utilities providing these services are all still municipally owned so there is as yet no way for institutional investors to participate in improving what is Japan’s biggest infrastructure asset class.

However, the introduction of external management could theoretically enable future privatisations and help relieve an overburdened public purse of some of its load.

© 2017 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012

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