February 2011Overseas Infrastructure Development --Supporting the Export of Integrated Systems to Meet Host Country Needs--

The development of major infrastructure such as high efficiency power plants, inter-city high-speed railways, and water supply and sewerage systems, is being planned or already underway in developed countries, emerging countries and developing countries. In these infrastructure sectors, Japanese companies are expected to draw on their advantages in advanced technology and environmental expertise.
However, in recent years trends revealed that, when a Japanese company attempted to export advanced stand-alone equipment for an infrastructural development project, it would often run into stiff price competition from companies in other countries. Today, the host country is likely to request a comprehensive proposal that includes cooperation in related sectors, the operation and maintenance of the supplied facilities, and the training of human resources. At a time when many countries are making it a national undertaking to obtain orders for infrastructure projects, it is necessary for Japan to offer effective infrastructure package deals that incorporate cooperation and assistance tailored to the needs of each host country, based on coordination between the public and private sectors.
The New Growth Strategy adopted by the Japanese Cabinet in June 2010 embraced the need to develop overseas infrastructure business as an integrated package, professing to take a step forward in this business area.
A major long-term infrastructure business involves country risk and is exposed to business-cycle impact. Financing is thus important for addressing such problems. JBIC is involved in the early stages of infrastructure projects and is proactively supporting the participation of Japanese companies in overseas infrastructural development. In this process, it will draw on its experience in many major projects in such sectors as natural resources, electric power and transportation and will make the most of the trust that it has earned from the governments and government agencies of host countries.