Note 2-47

47 The "Three-Year Program for Promoting Regulatory Reform and Privatization (revision)" established by Cabinet decision in March 2005 set the following elements as the "Basic Policies" of the market test: 1) Study of market tests will continue focusing on all projects of central government (including the internal departments of ministries, extra-ministerial bureaus, and regional branch bureaus, as well as independent administrative corporations, etc.) and local government, with priority given to projects of central government for the time being; 2) Based on the private sector proposals, the government will determine the targeted projects within as wide a range as possible; 3) Study concerning the establishment of a system that includes a legal framework; 4) Disclosure of all information required to study the participation by private businesses in bidding; 5) Establishment of a monitoring function for ensuring equal terms of competition (establishment of an neutral third-party entity).