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  5. Rules of Special Terms for Economic Partnership (STEP) of Japanese ODA Loans Improved

Rules of Special Terms for Economic Partnership (STEP) of Japanese ODA Loans Improved

December 19, 2018

Based on the Export Strategy for Infrastructure Systems (FY2018 revised version) established by the Management Council for Infrastructure Strategy on June 7, 2018, in cooperation with the Ministry of Foreign Affairs and the Ministry of Finance, the Ministry of Economy, Trade and Industry (METI) improved rules of the Special Terms for Economic Partnership (STEP) of Japanese ODA loans to promote competition in the bid process.
METI hereby announces the key points of the improvements.

Key points of the revision

1. Country of origin of goods and services procured under STEP loans

Concerning the “country of origin of goods and services procured under STEP loans,” “major component” comprising final goods can be included in the ratio of the goods and services to be procured from Japan, under certain conditions, in addition to “(final) goods from Japan.”

2. Procurement conditions

Concerning the “procurement conditions,” an associated company of a Japanese company in a foreign country, which has not been eligible as a partner of a joint venture (JV), can participate in a project, under certain conditions, as a JV partner.

This improvements will contribute to more effective utilization of STEP, which is expected to raise the visibility of Japanese ODA among citizens in both recipient countries and Japan, through utilizing and transferring of advanced technologies and know-how of Japanese firms.

References

Division in Charge

Trade Finance Division, Trade and Economic Cooperation Bureau