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 White paper on crime 2004 Part5/Chapter3/Section3/2. 

2. Newly established prisonsbased on PFI method

  The Ministry of Justice plans to establish the"Center for Promotion of Social Rehabilitation"(tentative name)based on the PFI method in Mine-shi,Yamaguchi Prefecture.The center will start operations in April2007,accommodating1,000first-time prisoners(500males,500females).

(1) Objective of PFI

  The Private Finance Initiative(PFI)is an administrative method to construct,maintain,and manage public facilities by utilizing private sector's money,management skills and technologies.It is a system based on the Law for Promotion of the Private PFI Management Method for Public Facilities(Law No.117of1999).
  Development and management of prisons based on the PFI method aims to develop"the security infrastructure"of prisons efficiently and effectively by utilizing private sector's money and knowledge under the current tight fiscal conditions.It also aims to create new jobs and positive economic effects in line with the government's basic policy of structural reform-leaving to the private sector what can be done by the private sector.In addition,it aims to achieve the basic idea of prison administration reform of"Toward Prisons with Public Understanding and Support,"through increasing transparency of prison management with involvement of both the public and private sectors,and striving for the coexistence of prisons with communities by establishing facilities in municipalities presenting bids. Fig. 5-3-3-3 shows the basic concept of the PFI method.

Fig. 5-3-3-3 Basic concept of prisons newly established based on PFI method

(2) Basic idea in introducing PFI method

  In introducing the PFI method,private bodies'knowledge will be positively utilized not only in the design and construction service,maintenance and repair service,but also in the management of facilities.For example,in the field of security,prison work,and education,private consignment is widely considered in services such as(1)patrolling in and around the premises and monitoring inmates,(2)planning and supporting prison work(production work),and(3)planning and implementing vocational training and educational programs.
  However,it is now under consideration that prison officers,who are civil servants,should carry out services with a high degree of authority and professionalism,such as using weapons or restraining devices or punishing inmates in various ways,and the state is to implement services closely related to exertion of punitive authority,such as calculation of imprisonment terms,classification of inmates,and application for parole etc.Therefore,in Japan,a system of"mixed management prisons,"which are managed cooperatively by public prison officers and private-sector staff(a system that can be seen in Germany and France)is considered preferable,instead of the system of the U.S.or"privately-managed prisons,"where all the services are pursued by private bodies.

(3) Center for Promotion of Social Rehabilitation

  The Center for Promotion of Social Rehabilitation(tentative name),planned to be established in Mine-shi,Yamaguchi Prefecture,will accommodate1,000(500of each gender,accommodating separately)of first-time prisoners,whose increase has been significant in recent years.This facility is aimed at inmates'early reintegration into society and revitalization of high quality human resources by providing them with various flexible correctional educations utilizing private bodies'knowledge.Taking such functions into consideration,the facility will be named something like the"Center for Promotion of Social Rehabilitation."The center works not only as a physical measure against overcrowding by ensuring an accommodation capacity of1,000inmates,but also as a long-term measure to ease overcrowding by decreasing inmates through preventing recommitting offenses.
  The Build-Operate-Transfer(BOT)system is adopted for the center,where PFI bodies raise funds themselves,build and own facilities,and after operating the facilities for20years,they transfer ownership of the facilities to the state.This is known as the service purchase style,where PFI bodies gain an income through receiving a commission fee from the state every fiscal year.
Appointment of PFI bodies by bidding and conclusion of contracts etc.will be facilitated so that accommodation of inmates can start in April2007.If it materializes,the Center for Promotion of Social Rehabilitation will be the first PFI project in the public power section in Japan.