Japan Eyes Aid for Economic Security-Linked Projects Abroad

Tokyo, March 19 (Jiji Press)–The government approved Thursday a bill aimed at creating a new scheme to provide financial support to Japanese companies’ overseas projects deemed critical to Japan’s economic security. The bill to revise the economic security promotion law is intended to attract private-sector funds to invest in such projects by having the government assume the risk of losses from investing in them. Under the scheme, programs to develop refueling bases and other facilities overseas will be supported as “designated overseas projects” to make international transportation networks more resilient. Operators whose plans are approved by the government will be eligible for financial support from the Japan Bank for International Cooperation, a government-backed lender. The government will also revise the JBIC law, which currently has strict investment conditions, to allow the lender to make subordinated investments in designated overseas projects to ease private-sector concerns over profitability. A think tank role will be newly added to an independent administrative agency under the jurisdiction of the industry ministry to conduct research and studies and make policy proposals. A public-private council will also be established to share information and launch measures to address supply chain and other issues, with participants bound by confidentiality obligations equivalent to those of civil servants. END [Copyright The Jiji Press, Ltd.]