- Region: Others
- Infrastructures
- Environment
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on October 14 a memorandum of understanding (MOU) with the U.S. International Development Finance Corporation (DFC), the Department of Foreign Affairs and Trade (DFAT) of Australia, and Export Finance Australia (EFA).
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The DFC is the U.S. government's development finance institution that was established to mobilize and facilitate the investment of private capital in the economic and social development of emerging market countries by offering financing, political risk insurance, and other financial tools for developmental projects. The DFAT is a department of the Government of Australia that works with international partners and other countries to tackle global challenges, increase trade and investment opportunities, and protect international rules and keep the region stable. EFA is the Australian government's export credit agency, which plays an impactful role in financing Australian exports and interests, including overseas infrastructure developments.
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Since the Japan-United States-Australia Trilateral Strategic Dialogue in August 2018, the Governments of Japan, the United States, and Australia have collaborated to maintain and promote a free, open, prosperous, and inclusive Indo-Pacific region, and to improve regional connectivity through infrastructure development in the region. In November 2018, JBIC signed an MOU*1 with the Overseas Private Investment Corporation (OPIC, former organization of the DFC), the DFAT, and the Export Finance and Insurance Corporation (EFIC)*2, under which JBIC has built a partnership with the aim of structuring infrastructure projects in the Indo-Pacific region, through multiple efforts, including having dialogue with the government and government agencies of host countries and dispatching a joint mission to identify opportunities. These efforts led to JBIC extending buyer's credit to Belau Submarine Cable Corporation, a state-owned public submarine cable corporation of the Republic of Palau, in January 2021*3, the first project under the partnership. Furthermore, in May 2022, JBIC hosted a roundtable, where the heads of financial institutions and government agencies of the Quad, namely, the DFC, EFA, the Australian Infrastructure Financing Facility for the Pacific, Export-Import Bank of India, and JBIC, discussed the prospect of further collaboration among the four countries for the Indo-Pacific region, particularly on (1) climate change, (2) secure and reliable telecommunication networks, (3) a sustainable supply of energy, and (4) the resilience of supply chains*4.
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The MOU signed this time is intended to further strengthen the cooperation that Japan, the United States, and Australia have developed under the previous MOU they signed in 2018 and affirms their willingness to further cooperate on telecommunications, digital and ICT, ports, airports, banking and financial services, critical minerals, resilient supply chains, and pandemic response as well as the sectors they mutually determined in the previous MOU, including infrastructure, energy, and natural resources. This MOU will contribute toward the realization of a free and open Indo-Pacific, which the Government of Japan is promoting. It is also expected to strengthen the relationship among Japan, the United States, and Australia.
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As Japan's policy-based financial institution, JBIC will continue to financially support the creation of business opportunities and the promotion of business for Japanese companies and contribute toward the further development of economic relations between related countries by collaborating closely with such overseas governments and policy-based financial institutions.
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Please see the Joint Media Release by DFC, JBIC, DFAT and EFA regarding this MOU here.
