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  5. Policy tools available for commercial projects - Supporting tools of the Japanese government in the field of energy and infrastructure in the Indo-Pacific region

Policy tools available for commercial projects - Supporting tools of the Japanese government in the field of energy and infrastructure in the Indo-Pacific region

The Ministry of Economy, Trade and Industry (METI), in cooperation with other ministries and government agencies, provides support tools such as financial assistance to individual projects, capacity building, and commercial engagement to boost private sector business activities in the Indo-Pacific region.

Examples of supporting tools

Capacity Building

By providing training on infrastructure procurement and operation to government agencies and infrastructure management organizations in the Indo-Pacific region, METI helps to improve the capacity of these organizations. This will create an environment in which the Quality Infrastructure provided by Japanese companies will be highly evaluated in the Indo-Pacific region.

Related Initiatives

U.S.-Japan Industrial Cybersecurity Week for the Indo-Pacific region was held in March 2021.

In October 2020, Japan Oil, Gas and Metals National Corporation (JOGMEC) hosted LNG tailor-made training for Vietnam.

Example of capacity building: JOGMEC Tailor Made Training

In October 2020, an LNG tailor-made training program was held for the Vietnamese Ministry of Industry and Trade and Vietnamese energy-related companies. Since Vietnam urgently needs to import LNG and would soon start importing it, an overview of LNG procurement and laws and regulations for receiving terminals, as well as a question-and-answer session, were conducted online with the cooperation of Japan's JOGMEC and the U.S. Department of Energy.

Commercial Engagement

In order to assist Japanese companies in structuring investment projects in the Indo-Pacific region, METI provides opportunities for matching with private companies in Indo-Pacific countries and third countries, as well as opportunities to utilize the supporting tools of other government agencies. By exchanging opinions and providing information on the needs and policies of partner countries, METI promotes the commercial engagement.

Related Initiatives

In December 2020, the Japan-U.S.-Vietnam LNG Forum was held to encourage Japanese companies to participate in projects in Vietnam.

In April 2020, an online briefing session was held for companies from both countries on policy supporting tools provided by U.S. and Japanese government agencies.

The Japan External Trade Organization (JETRO) provides support to Japanese companies for overseas business development in target countries, including explanations of local market trends and systems for business transactions, individual consultations with experts, and matching with business partners.

Examples of project structuring support: Public-private events in third countries

In April 2018, the Japan-U.S. Public-Private Roundtable on Infrastructure Cooperation in Third Countries was held in Washington, D.C. More than 150 participants from the government and private sectors of Japan and the U.S. shared their awareness of issues and exchanged opinions on Japan-U.S. cooperation on infrastructure development in third countries.

In March 2019, the Japan-U.S.-Indonesia LNG Workshop was held in Jakarta, Indonesia, where the governments and private companies of Japan, the U.S., and Indonesia gave presentations on energy cooperation in Indonesia. There were opportunities for matching between private companies.

In August 2019, the Japan-U.S. JUSEP meeting was held in Bangkok, Thailand. Government agencies and private companies from the three countries exchanged opinions on energy and infrastructure sectors, and Thai companies proposed areas of cooperation with Japanese and U.S. companies.

Financial Support

NEXI's trade insurance and JOGMEC's lending and financing functions support individual projects in the Indo-Pacific region in which Japanese companies participate. In addition, METI cooperates with foreign government agencies, including those of the United States, to provide effective and mutually complementary financial support for individual projects.

Related Initiatives

In February 2020, the Ministry of Finance (MOF) and METI signed a memorandum of understanding (MOU) with the U.S. Department of the Treasury (Treasury) on U.S.-Japan cooperation in energy and infrastructure finance and market formation.

Example of financial support: the Palau Cable 2 (PC2) optical submarine cable construction project

This is a submarine cable project in which NEC plans to construct a branch line to Palau from the main line of a new submarine cable between the U.S. and Singapore (the ECHO cable system). As the first cooperative support project by Japan, the United States and Australia, financial assistance of approximately US$30 million will be provided, including insurance underwriting by NEXI and financing by JBIC.
On October 28, 2020, joint video message by the Foreign Ministers of Japan, the United States and Australia, and a joint statement by the three countries were released at the Indo-Pacific Business Forum.

On January 13, 2021, a signing ceremony of the loan agreement by Belau Submarine Cable Corporation (BSCC), NEXI, JBIC, SMBC, the Australian Export Finance Corporation (EFA), and the Australian Infrastructure Finance Facility for the Pacific Islands (AIFFP) was held. The U.S. Government and the U.S. Agency for International Development (USAID) will also provide financial support for the project, which is symbolic of the collaboration between Japan, the U.S. and Australia in promoting a free and open Indo-Pacific.

Related Links

Inquiries

Trade Policy Planning Office, Trade Policy Bureau, Ministry of Economy, Trade and Industry
Phone: +81-(0)3-3501-1567
 

Last updated:2024-08-19