JBIC Establishes Finance Department for Facilitating Realignment of U.S. Forces Japan Operating Financial Services for Public-Private Partnerships in U.S. for Facilitating Realignment of U.S. Forces Japan
April 1, 2010
April 1, 2010
- Following the passing of the FY2011 budget bill on March 24, 2010, the Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 established today the Finance Department for Facilitating Realignment of U.S. Forces Japan, and set up a separate account for the financial services by the Department.
- The newly established Department will be responsible for making equity investments, loans and other operations*2 necessary for the projects (the public-private partnerships of family housing and infrastructure projects associated with relocation of U.S. marine force personnel and their dependents to Guam) to facilitate realignment of U.S. Forces Japan, the operations authorized to JBIC under “the USFJ Realignment Special Measures Act”*3.
- Since the USFJ Realignment Special Measures Act stipulates that a separate account shall be set up and be segregated from those of JFC's other accounts, JBIC set up a separate account for the financial services by the Department.
- When providing financial services under the USFJ Realignment Special Measures Act, JBIC will draw on its expertise and experience which it has accumulated through many years of overseas project finance operations.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 There is no equity and loan provision for FY2010.
- *3 The governments of Japan and the United States agreed in the “United States-Japan Roadmap for Realignment Implementation” that: (1) approximately 8,000 III Marine Expeditionary force (MEF) personnel and their approximately 9,000 dependents will relocate from Okinawa to Guam by 2014; (2) Of the estimated $10.27 billion cost of the facilities and infrastructure development costs for the III MEF relocation to Guam, Japan will provide $6.09 billion (including $2.8 billion in direct cash contributions); and (3) the United States will fund the remainder of the facilities and infrastructure development costs. Based on this agreement, “the U.S. Forces, Japan Realignment Special Measures Act (USFJ Realignment Special Measures Act)” was passed in May 2007 as a special legislation related to the (then) Japan Bank for International Cooperation Act, authorizing the JBIC to provide financial services for facilitating realignment of U.S. Forces Japan as exceptional measures.