【Article】Amendment of Port and Harbor Act – Focusing on Trends in Offshore Wind-power Generation Business

2020.01.25 ナレッジ

ナレッジパートナー:越元 瑞樹


4. Introduction of system for leasing public property that constitutes the Offshore Energy Handling Wharf (Article 55-2 of the Amended Port and Harbor Act)

The Minister of Land, Infrastructure, Transport and Tourism, and the port administrator, may lease port and harbor facilities as part of the public facilities which constitute an Offshore Energy Handling Wharf inside a Base Port and Harbor to an operator which installs or manages offshore renewable energy power generation facilities.

Incidentally, the Port and Harbor Act before its amendment by the Amendment already provided a system for (a) leasing public property which constitutes a specified wharf (Article 54-3 of the Port and Harbor Act), and (b) leasing public property which constitutes a wharf group (Article 55 of the Port and Harbor Act). These provisions (i) exclude the application of Article 18, Section 1 of the National Government Asset Act and Article 238-4, Section 1 of the Local Autonomy Act, (ii) apply to a party which has been accredited, designated or permitted by a certain qualification, and (iii) exclude the application of Article 604 of the Civil Code and Article 3 of the Act on Land and Building Lease, and the structures of such provisions are similar to those under the Amended Port and Harbor Act. Thus, it is considered that it would be possible to refer the current operational practice to future operational practices with respect to the system for leasing of public property which constitutes an Offshore Energy Handling Wharf.

(1)  Lease by the Minister of Land, Infrastructure, Transport and Tourism

Port and harbor facilities classified as national properties can be leased by the Minister of Land, Infrastructure, Transport and Tourism (the “MLIT Minister”) if the following requirements are satisfied (Article 55-2, Section 1 of the Amended Port and Harbor Act):

(i) The port and harbor facilities constitute an Offshore Energy Handling Wharf;
(ii) The property is classified as a public property under the National Government Asset Act;
(iii) The port and harbor facilities are constructed under the direct control of the MLIT Minister (Article 52 of the Port and Harbor Act); and
(iv) The property is to be leased to a party which has been granted permission under (a) Article 37, Section 1 of the Port and Harbor Act, or (b) Article 10, Section 1 of the Offshore Renewable Energy Usage Act, and which installs and manages offshore renewable energy facilities (a “Permitted Operator”).

In addition, it is also necessary to obtain consent from the port administrator (Article 55-2, Section 2 of the Amended Port and Harbor Act) and to engage in consultation with the MLIT Minister and the Minister of Finance (Section 3 of the same Article under Amended Port and Harbor Act).

(2)  Lease by port administrator

Port and harbor facilities classified as public properties under the Local Autonomy Law may be leased by the port administrator by if the following requirements are satisfied (Article 55-2, Section 4 of the Amended Port and Harbor Act):

(i) The port and harbor facilities constitute an Offshore Energy Handling Wharf;
(ii) The property is classified as a public property under the Local Autonomy Law; and
(iii) The property is to be leased to a Permitted Operator.

(3)  Lease rent

The lease rent for the Offshore Energy Handling Wharf is expected to be set out for each Base Port and Harbor by considering the operating expenses required for improvement of the wharf and the prospects for offshore wind-power generation operators. More specifically, the rent level should be determined at a rate whereby it is possible to recover the expenses required to make improvements to wharves within a certain period of time.

Next page Extension of the certified period for the occupation plan proposed through the public bidding process in port and harbor areas

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