On behalf of the Japan Bank for International Cooperation (JBIC), I would like to express my sincerest appreciation for your continued support for and understanding of JBIC.
The global economy remains vulnerable to downside risks that could jeopardize economic growth. The risks include the impact of monetary policy normalization in the U.S., an uncertain economic outlook in China and other emerging countries in Asia, as well as falling crude oil prices.
Japan is also facing significant changes in the global environment. In the energy and natural resources sector, following the idling of all domestic nuclear power stations, initiatives to diversify overseas energy suppliers, acquire upstream interests, strengthen relations with resource-rich countries, as well as to reduce procurement costs, while diversifying energy sources, have become critically important as these initiatives directly affect the lives of Japan's citizens.
Japanese industries, meanwhile, have been globalizing entire value chains to capture demand from growth markets. However, amid intensifying competition from companies in both leading emerging-markets and developed countries, Japanese businesses cannot rely only on proprietary products and constituent technologies to expand overseas. They must also develop systems that integrate management know-how with their operations and maintenance services.
In particular, for infrastructure projects, the promotion of public-private partnerships has become important, given that such projects require a longer time to generate investment returns and face considerable business risks, while local governments hold considerable authority in the projects. Furthermore, in an era when achieving a balance between environmental conservation and economic development is recognized as a universal challenge, it is necessary for individual projects to respond to the need for reduced environmental and social impacts. Such expectations thus apply to those renewable energy projects that utilize Japan's advanced environmental technologies.
As a response to changes in the domestic and overseas environment, the Act for Partial Amendment of the Japan Bank for International Cooperation Act was enacted on May 11, 2016. The Act enables JBIC to take further risks regarding overseas infrastructure and other foundations of socioeconomic activities, and to diversify its financing methods so that it might proffer additional support to Japanese companies expanding overseas.
As a policy-based financial institution, JBIC is committed to better buttressing Japanese companies as their presence overseas grows, in line with the expectations and needs of the Japanese government and Japanese industries.
Japan Bank for International Cooperation(JBIC)