Study on the New bidding and Contracting System and the Evaluation System of Public Works

Abstract

The Japanese Government is issuing bonds and raising public loans to meet the Policy projects In fiscal 1998, the balance of national and local long-term debts, including government bonds and borrowings, exceeded the Gross Domestic Product (GDP), and at the end of fiscal 2000 it is expected that the balance of government bonds will top Y390 trillion and that of all long-term debts will top Y660 trillion.Under such fiscal conditions, ministries and government agencies involved in public works, such as the Ministry of Land, Infrastructure and Transport (former Ministry of Construction), have introduced a evaluation system for public works projects and new bidding and contracting system In order to ensure that fiscal structural reform is carried out effectively, it is also necessary to implement public works projects efficiently and to enhance its transparency. In terms of effective execution of public works projects, the Board of Audit performs audits with a view of promoting cost savings and improvement of quality in public works.This study is an analysis of the findings by the Board of Audit on public works projects and how the new bidding/contracting system of public works and evaluation system are applied, and examines the realiv and problems related to the evaluation of public works