Establishing a Special Purpose Company and an O&M Company for the Miyagi Prefecture Integrated Water Supply, Industrial Waterworks, and Sewerage Public-Private Partnership Management Project

July 15, 2021

Press release

K.K. Mizumusubi Management Miyagi
K.K. Mizumusubi Service Miyagi
METAWATER Co., Ltd.
Veolia Jenets K.K.
ORIX Corporation
Hitachi, Ltd.
Nihon Suido Consultants Co., Ltd.
HASHIMOTOTEN Co., Ltd.
Fukken Gijyutsu Consultants Co., Ltd.
SANDEN KOGYO CORPORATION
TOKYU CONSTRUCTION CO., LTD.
METAWATER SERVICE Co., Ltd.

In relation to the Miyagi Prefecture integrated water supply, industrial waterworks, and sewerage public-private partnership management project (Miyagi management & operation method "the Project"), K.K. Mizumusubi Management Miyagi ("Mizumusubi Management Miyagi") was established as a special purpose company for the Project and K.K. Mizumusubi Service Miyagi ("Mizumusubi Service Miyagi") as an operation and maintenance company on May 19, 2021.

10 companies, selected as the Project's preferred negotiation right holders, hold shares in the two companies mentioned above: METAWATER Co., Ltd., Veolia Jenets K.K., ORIX Corporation, Hitachi, Ltd., Nihon Suido Consultants Co., Ltd., HASHIMOTOTEN Co., Ltd., Fukken Gijyutsu Consultants Co., Ltd., SANDEN KOGYO CORPORATION, TOKYU CONSTRUCTION CO., LTD., and METAWATER SERVICE Co., Ltd.

The names of the two companies include the word "mizumusubi" ("to connect water"), which was chosen as it embodies multiple meanings: the integration of Miyagi Prefecture's three water businesses (water supply, industrial waterworks, and sewerage); coordination with Miyagi Prefecture's water companies; and connecting Miyagi Prefecture's water infrastructure--which has been consistently maintained thus far--with the future. It is hoped that the two companies will achieve these three goals and realize sustainable water supply, industrial waterworks, and sewerage services in the prefecture.
Mizumusubi Management Miyagi, Mizumusubi Service Miyagi, and the ten shareholding companies will work together and hold discussions with Miyagi Prefecture with the aim of launching businesses in April 2022. At the same time, all parties concerned will further advance their ongoing preparations based on a basic agreement to commence business operations.

The Project entrusts the operation of Miyagi Prefecture's water supply business, industrial waterworks business, and sewerage business facilities to the private sector for a period of 20 years. At present, Miyagi Prefecture is engaged in preparations to launch businesses in April 2022, based on the assumption that an implementation contract can be concluded.　To this end, the 379th Miyagi Prefectural Assembly (June 2021 Regular Session) approved a resolution for the transfer of operating rights for public facilities associated with the Project, according to the PFI Act^*1, Article 19 Paragraph 4.
Following the resolution's approval, in line with Article 24 Paragraph 4 of the Water Supply Act, Miyagi Prefecture has now applied to the Minister of Health, Labour and Welfare for permission to transfer water supply facility operating rights. When permission has been received, Miyagi Prefecture intends to conclude the implementation contract.

*1"PFI Act" is an abbreviation of "Act on Promotion of Private Finance Initiative"

Overview of K.K. Mizumusubi Management Miyagi

Address
27-21 Tachi-machi, Aoba-ku, Sendai, Miyagi

Representative
Masashi Sakai, President and Representative Director

Date of establishment
May 19, 2021

Description of business
As the implementing body of the Miyagi Prefecture integrated water supply, industrial waterworks, and sewerage public-private partnership management project, the company will operate a total of nine separate businesses in three fields: two water supply businesses; three industrial waterworks businesses; and four sewerage businesses.

Shareholders
METAWATER Co., Ltd.
Veolia Jenets K.K.
ORIX Corporation
Hitachi, Ltd.
Nihon Suido Consultants Co., Ltd.
HASHIMOTOTEN Co., Ltd.
Fukken Gijyutsu Consultants Co., Ltd.
SANDEN KOGYO CORPORATION
TOKYU CONSTRUCTION CO., LTD.
METAWATER SERVICE Co., Ltd.

Website
https://www.mizumusubi.com/

Overview of K.K. Mizumusubi Service Miyagi

Address
27-21 Tachi-machi, Aoba-ku, Sendai, Miyagi

Representative
Taketoshi Ando, President and Representative Director

Date of establishment
May 19, 2021

Description of business
As the operation and maintenance company for the Miyagi Prefecture integrated water supply, industrial waterworks, and sewerage public-private partnership management project, the company will operate and maintain a total of nine separate businesses in three fields: two water supply businesses; three industrial waterworks businesses; and four sewerage businesses.

Website
https://www.mizumusubi.com/