Japanese Government launched a new scheme of yen loan for developing and emerging countries implementing Public-Private-Partnership (P3) infrastructure developments with an aim to remove obstacles for Japanese private sectors participation. If there is a delay in payment from local state-owned companies due to unexpected incidents such as currency crisis, the government provides loans through Japan International Cooperation Agency (JICA) to be paid for contractors. The government expects the new system to help reduce risks that Japanese businesses take in large-scaled infrastructure projects outside the country.

The scheme, established by ministries of Economy, Foreign Affairs and Finance, is targeting at such countries as Indonesia, Vietnam and Philippines, where legislation of P3s are developed. It is assumed that the guarantee will cover projects that private companies are contracted to build and operate such as power generation, water works and high-speed rail development. (2014/12/10)