- Region: Africa
- Export Loans
September 3, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on September 2 a buyer's credit*2 agreement totaling up to 7.9 billion yen with the National Authority for Tunnels (NAT) in the Arab Republic of Egypt. This is the first financing for an urban transport project under JBIC's LIFE Initiative*3.
- The loan will finance the procurement by NAT of a fleet of rolling stock from Mitsubishi Corporation for the first phase of Line 3 (the 34-kilometer-long Line 3 will be constructed in five phases) of the Greater Cairo Metro Network. The rolling stock to be delivered will be produced mainly by the Kinki Sharyo Co., Ltd. and Toshiba Corporation. JBIC provides support for the exports of Japanese firms.
- Due to expansion of the global rolling stock market, many manufacturers in Europe, Asia, North America and elsewhere are vigorously engaged in business activities to win orders for transport infrastructure. In the bidding for this project, a Japanese consortium competed with a European consortium for which a representative export credit agency offered favorable financing terms. However, after engaging in business negotiations, the Japanese consortium was awarded the order, with support from JBIC offering matching terms.
- In Cairo, the country's political and economic center, chronic traffic congestion caused by excessive concentration of the population is posing major problems. This metro project, which will construct a public mass transit rail connection between the center of Cairo and suburban districts, is expected to help alleviate traffic congestion and improve the environment.
- During the Fourth Tokyo International Conference on African Development (TICAD IV) in May 2008, the government of Japan pledged 2.5 billion US dollars financial support for Africa, to be provided by JBIC for five subsequent years. In May this year, JBIC signed a memorandum of understanding (MOU) on a comprehensive strategic partnership with the government of Egypt*4. JBIC will continue to support the expansion of Japanese businesses in Africa through similar financing.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 A buyer's credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment from a Japanese firm.
- *3 See Information on March 23, 2009.
- *4 See Press Release on May 31, 2010.