This study focuses on the problems of peculiar condition of Private Finance Initiative (PFI) that is intended to suit particularly to the legal and social circumstances in Japan. Based on the analysis of discussion that taken place in the process of PFI introduction in Japan, following four factors were identified as the root of the problem. (1) The inconsistency between the PFI and existing legal system, (2) The difficulty in the practice of project finance, (3) The capability of clients in the procumerment procedure, (4) The difficulty in the selection of bidders. Considering the four factors, the paper sets up several selective conditions that trigger the problems. Finally, the paper explains the assumable PFI project frame works in Japan as a combination of those conditions.
