The outline of an organization that Ministry of Land, Infrastructure, Transport and Tourism will establish in FY 2014 to promote infrastructure export was revealed. Starting as a fully-owned corporation by the government, it will give support to Japanese private sectors in fundraising for construction and in project managing. The Ministry made 2014 budget request of 85 billion yen for the new organization. It willbe invested to back up private companies that wish to participate in railway constructions and urban development mostly in South East Asia.

The Ministry is preparing for submitting a draft bill to the Diet next year which is necessary for establishment of the organization. From FY2015 and later, it plans to include investing money annually into the initial budget based on estimated demands in infrastructure building.

In cooperation with governmental agencies such as Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA) and Nippon Export and Investment Insurance (NEXI), public banks and construction consultants, the new organization will help construction companies which aim to win overseas contracts in transport or urban development in terms of both finance and project management.

The organizationchooses projects that expect the large amount of operational income in return of high responsibility of initial cost. Construction expenses at the beginning of the project and compensation for a loss are financed. It also gives advises and information on technologies such as railway operation and maintenance.

The government’s growth strategy,“Japan Revitalization Strategy”positionsexport of infrastructure systems as one of its pillars.It targets to triple overseas sales by Japanese enterprises to approx.30 trillion yen by 2020. Out of the total value, the targeted amount in transport is 7 trillion and in urban development is 2 trillion.

Infrastructure demands outside the country are estimated at 60 trillion yen per year in transport and at 11 trillion yen in urban development mainly in emerging countries in South East Asia. The government has an eye on capturing these demands to acceleratethe growth of Japanese private sectors. (2013/10/15)