Ministry of Land, Infrastructure, Transport and Tourism will establish a company designed to help Japanese private sector export its infrastructure business to foreign markets. It will provide funding for construction in cooperation with private and public banks as well as dispatch skilled talents in infrastructure operation and maintenance. The company targets transport infrastructure and urban development especially in South East Asia.

The ministry requested 109.5 billion yen for the fiscal 2014 budget to cover establishment and operation cost of the company. A bill that is necessary for establishment is to be submitted to the Diet during the ongoing session. It decides the minister’s authority to supervise the company.

The government will possess almost all shares, while the private sector will invest in part. Governmental financing agencies such as Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), and Japan Nippon Export and Investment Insurance (NEXI) and private banks will participate in funding of the selected projects.

It is also expected that the company gives technical assistance to projects such as transport infrastructure development. The company will hire professionals from both public and private sectors who have expertise on management and maintenance of transportation. Planning to cooperate with construction consultants, the company intends to support Japanese companies to invest in overseas business, which are often commissioned to a contractor in a package.

Candidate projects include transport infrastructure and urban development mainly in South East Asia that are in need of Japanese investment in next three years. Large initial investment needed projects yet expecting great returns will be chosen by the company. (2014/01/23)