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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on July 12 loan agreements on buyer's credit (export loan) totaling up to approximately JPY7.8 billion and USD91 million (JBIC portion), respectively, with the Government of Turkmenistan acting through the State Bank for Foreign Economic Affairs of Turkmenistan (TVEB). These loans are co-financed with Sumitomo Mitsui Banking Corporation and ING Bank N.V., Tokyo Branch, bringing the total co-financing amount to approximately JPY13.1 billion and USD152 million, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion co-financed by the two private-sector banks.
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These loans are intended to provide financing for Turkmenenergo, Turkmen State Power Corporation, to purchase a full set of facilities from SUMITOMO CORPORATION and construct a gas-fired power plant in Lebap Region, Turkmenistan. The gas turbine and generator to be installed at the power plant as the main equipment are manufactured by MITSUBISHI HITACHI POWER SYSTEMS, LTD. The electricity generated by the power plant will be supplied not only to Turkmenistan, but also to the Islamic Republic of Afghanistan.
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During Prime Minister Abe's visit to Turkmenistan in October 2015, the Japanese Government declared its cooperation towards the realization of the efficient utilization of Turkmenistan's energy and resources in the "Japan-Turkmenistan Joint Statement" followed by a summit meeting between Turkmenistan and Japan. The loans provided by JBIC to support the export of Japanese-made gas-fired power generation plant equipment are therefore in line with this initiative of the Japanese Government. Furthermore, JBIC's financial support will create business opportunities for Japanese companies in the infrastructure sector of Turkmenistan, thus contributing to maintaining and strengthening the international competitiveness of Japanese industries.
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As Japan's policy-based financial institution, JBIC will continue to support Japanese companies' export of plant machinery and equipment, as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
