Japanese government pushes infrastructure investment in Australia
Japanese government is backing up building next generation rapid transit system at Gold Coast, Australia, Nikkei reported on 16th November. Government is accelerating successful award of order by Japanese companies in overseas infrastructure investment projects, which became one of 21 key agendas in the “national new growth strategy” determined this year. Japanese companies originally have refined skills of building hi-technology backed infrastructure such as Shin-kan-sen bullet train system or nuclear power power plant.
But, historically speaking, due to the comfortable size of the domestic market having 120 million populations, they would not go out for opportunities flourishing overseas. However, things changed much especially after global financial crisis. Government and companies should seek opportunities of growth out side Japan, as population has started declining a little bit year by year.
As we all know, infrastructure investment is one of a few growth engines in emerging countries as well as in advanced ones. Japanese government is very natural to determine that Japanese companies’ success of overseas infrastructure investment area is very critical and make a government funded international lending bank help such projects.
Japan Bank for International Cooperation (JBIC) is the international wing of Japan Finance Corporation (JFC), Japan's policy-based financing institution. Until last year, JBIC could finance infrastructure investment project deployed in emerging countries. However, its policy changed recently to be able to lend money to transportation investment project done in advanced countries at first, then, financing for various infrastructure investment projects in such countries has become possible. Financing for rapid transit system at Gold Coast is thought to be a symbolic activity realized by governmental bodies and Japanese companies. (Please be noted that awarded companies of this project has not determined yet.)
Regarding very advanced transit system of Gold Coast, we can see details on the web site of the municipality.
Also, following video might be the moving
image of the project.
Listed candidate infrastructure investment project deployed in other countries includes water business, next generation fire power plant, broadband network, off-shore wind power plant, and smart grid. Political leaders both in emerging and advanced countries can count on this scheme, if they wish to build hi-tech backed infrastructure using minute skills of Japanese companies with enough financing.
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The author of this arcitcle, Daisuke Imaizumi, is an independent researcher and a journalist previously working for the largest network equipment company of US as a consulting researcher for seven years. Originally, IT oriented journalist having experience on electronic commerce, retail financial service and asset management system for electric power company. Also he has some experiences on Internet centric new business incubation.
Regarding infrastructure investment, he became interested in this area after studying Smart Grid and Smart City which are included in infrastructure investment in a broader sense.
email address: dimaizum(at)gmail.com