MOU with Mexican Government to Strengthen Dialogue for Promoting Business Cooperation
Supporting Business in Environment, Power, Energy and Other Infrastructure Projects through Closer Dialogue
- Area: Latin America and the Caribbean
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on February 22 (Mexican time) a memorandum of understanding (MOU) with the Ministry of Finance and Public Credit of the United Mexican States and ProMéxico on holding Annual Meetings as well as Annual Consultation Sessions to discuss financial cooperation for promoting Japanese business and investment opportunities in Mexico.
- The Annual Meetings will discuss the following agenda: The current situation and future prospects of Mexico's economy and economic policies; and its efforts in key sectors such as power, energy and the environment based on the national infrastructure development plan (from 2007 to 2012). It is also planned that the discussions will cover the financial support provided by JBIC for Japanese firms participating in the projects in these sectors and the promotion of opportunities for further Japanese business investments in Mexico.
- To date, JBIC has provided support to a number of power, energy, environment and other infrastructure projects in Mexico by drawing on its range of financial instruments and schemes, thereby building strong ties of trust with the Mexican government and its agencies. In recent years, JBIC has supported project finance for the acquisition of a portfolio of Mexican power assets by Japanese companies by providing a loan with political risk guarantee (signed in September 2010), *2 in addition to guaranteeing Samurai bonds issued by the Mexican government in 2009 and 2010. *3 Recently, Japanese firms have been engaged in intense competition with other foreign firms for acquiring assets primarily in the power sector. Through a framework of dialogue based on this MOU, JBIC intends to provide strategic and effective financial support for implementing power, energy, environmental and other projects in which Japanese firms are expected to participate and for Japanese firms' exports and investment business on such projects including through packaged infrastructure business approach.
- Through closer dialogue with the Mexican government utilizing this Annual Meeting framework, JBIC will help build the necessary foundations for promoting Japanese business activities in Mexico and smoothly implementing projects involving Japanese participation. JBIC will thereby contribute to developing closer economic ties between Japan and Mexico.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Syosaku Yasui).
- *2 See Press Release on September 30, 2010.
- *3 See Press Release on October 25, 2010 and December 18, 2009.