Utilizing Long-term Responsible Outsourcing: Examining the Business Side

  • Soejima Katsuhiro
    The Japan Research Institute, Limited. Center for the Strategy of Emergence

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Other Title
  • 廃棄物処理施設の長期包括運転管理  長期責任委託の効用と実務における検討の視点
  • チョウキ セキニン イタク ノ コウヨウ ト ジツム ニ オケル ケントウ ノ シテン

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Abstract

There are various potential risks inherent in the waste management business, and the future financial load of any local authority will greatly depend on how those risks are controlled. Long-term Responsible Contracting-out (LRC) is an effective tool for eliciting those risks and for controlling the financial load.<BR>In the examination of LRC, it is desirable to ascertain the‘source of VFM’through a dialogue between the local authority and the private sector. A list of projects that are supposed to obtain VFM and another list for how to decrease business risks to the project company must also be sorted out. Lastly, VFM obtained by introduction of LRC and VFM obtained by securing of competitive circumstances must be sharply distinguished.<BR>Even when the introduction of LRC seems difficult due to certain conditions of the local authority, a contracting-out scheme can be customized by developing a flexible structure, as seen in advanced cases such as Chiba and Kashiwa cities.<BR>However, when it is the intention to extend the results of LRC to the entire public sector, it is then essential to promote the private sector. In order to keep the project moving securely and productively, the Authority should keep in mind that it is important to not only monitor the project company but also support its management.

Journal

  • Waste Management Research

    Waste Management Research 19 (2), 96-101, 2008

    Japan Society of Material Cycles and Waste Management

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