Public procurement

Committee:
Railways
status:
Some progress
Published:
The public procurement market continues to be an important market and with the improved access thanks to the EU-Japan EPA, which resulted in the removal of the Operational Safety Clause. The EBC believes that the Central Government has a role to play to inform and support regional and local government on how to set up procurement procedures that are in line with the WTO GPA (World Trade Organization Government Procurement Agreement) and the EPA. The EBC would also like to point out that when public administration operators become government owned incorporated they are no longer covered by either th WTO GPA or the EPA. This means that the Japanese public procurement will decrease for every year.

Recommendations

  • The Government of Japan should ensure that, when planning renewal of systems with new technologies such as CBTC (Communication-Based Train Control) as well as planning new lines or line extensions, local governments and entities covered by the WTO GPA abide by or use the GPA as guidance to set up a proper public procurement scheme.
  • The Japanese Government should promote off-the-shelf solutions.
  • Incorporated companies that are owned by the government, whether one government such as Osaka Metro, or by several governments, like Tsukuba Express, should be covered by the EPA.
  • The EU and Japan should work towards better cooperation and market access in relation to aid financed railway projects. Furthermore, call for tenders should abide by the WTO GPA and the rules on public procurement set out by the EU-Japan EPA.