Presentation: Financing Wastewater Management in Japan - Fifth Roundtable on Financing Water - Mr. Yoshiharu Imajima

1. Financing Wastewater Management
in Japan
27 November 2019
Yoshiharu Imajima
Deputy Director, JS
Sewage Works Expert, JSC
Roundtable on Financing Water
@Asian Development Bank Headquarters,
Manila, Philippines

2. Introduction
2

3. Sewerage Finance Research Committee
– National discussion among all stakeholders (central government, local
governments, tax payers) on the basic principles of cost sharing for
wastewater management (1961-1985)
(Basic principles of cost sharing)
– Stormwater at public burden and wastewater at private burden
(O&M cost for stormwater is to be covered by municipal general account,
O&M cost for wastewater is to be covered by sewer user charges)
– Polluter-Pays-Principle
(Users must pay sewer user charges for O&M while beneficiary
payment is used for CAPEX)
– The central government is responsible for nation-wide sewerage system
development (civil minimum), while local governments are responsible for
sewerage project implementation at local level.
(Cost shared between central government (national subsidies) and local
government (municipal bonds)) 3
Financing centralized wastewater management

4. 4
Financial resources for OPEX
Expenditures Unit:billion yen
As of end of FY 2009
Income

5. 5
Financial resources for CAPEX
Sewers
Central
Gov.
Subsidy
Municipal
Bond
Municipal
Bond
Payment by Beneficiary,etc
Subsidized Unsubsidized
From
Commercial Banks
From
Users
From
National Government
5%
45%
50%
95%
5%

6. 6
Local Bonds Counted in ‘Standard Financial
Needs’
Ordinary local allocation tax =
standard financial needs – discounted standard revenues
Sewers
Central
Gov.
Subsidy
Municipal
Bond
Municipal
Bond
Payment by Beneficiary,etc
Subsidized Unsubsidized
The ‘standard financial needs’ are
systematically calculated and allocated
based on the above equation,

7. Conclusion
7
• National discussion among all
stakeholders (central government,
local governments, tax payers) on the
basic principles of cost sharing for
wastewater management
• 3Ts (Tariff, Tax and Transfer)
• Blended Finance

8. Thank you very much for
your Kind Attention !
27 November 2019
Yoshiharu Imajima
Deputy Director, JS
Sewage Works Expert, JSC
Roundtable on Financing Water
@Asian Development Bank Headquarters,
Manila, Philippines
e-mail: info@jsanic.org
www.jsanic.org