- Region: Asia
- Machinery and Equipment
September 13, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on September 12 a cooperation agreement on operational cooperation with The State Bank of Foreign Economic Affairs of Turkmenistan (TVEB).*1 The objectives of the cooperation agreement include cooperation between the two banks to materialize those projects in the country in which Japanese companies get involved as exporters.
Currently Turkmenistan boasts of the world's fourth rank in proven natural gas reserves, and the country continues robust economic growth by exporting this abundant resource. In the future, it intends to pursue economic growth not only through resource exports but through the exports of more value-added processed products as well. In particular, the government is planning a number of petrochemical and fertilizer plants using natural gas as raw material. Thus, Japanese companies have a heightened interest in business opportunities in this country.
Under this cooperation agreement, JBIC will strengthen exchanges of views and opinions with TVEB on multiple projects expected to be materialized in the future from their early stages, thereby cooperate on project formulation with its sights set on Japanese companies obtaining business opportunities, at the same time, on early provision of loans when project formulation has been completed. Thus, JBIC is contributing to the interests of both Japanese companies and the Turkmenistan government.
As part of strengthening ties with Turkmenistan, JBIC signed a cooperation agreement with TVEB in February 2005.*2 Since then, JBIC has provided cooperation, including exchanges of information, in materializing new projects. In March 2010, JBIC provided on an export loan to the country's state-owned petrochemical company to purchase machinery and equipment for the ammonia and urea fertilizer production plant.*3
As a public institution, JBIC will continue to support Japanese companies'exports to Turkmenistan through its effort to help formulating and facilitating the projects from the early stage, thereby contribute to maintaining and improving the international competitiveness of Japanese industries, while further developing economic ties between the Turkmenistan government and Japan.
- *1 TVEB is a policy-based bank wholly-owned by the Government of Turkmenistan and has the authority to act as an agent concerning external borrowings of its government.
- *2 See Press Release on February 21, 2005.
- *3 See Press Release on March 19, 2010.