Overseas Expressway Business
By JEXWAY
Oct. 28, 2015

Hiroshi SAITOJEXWAY(Japan Expressway International Company Limited)1Expressway Network and Expressway Companies
After 50 years from the completion of the first section of the expressway network, its total length
reached about 9,900km. Now, six companies operate and manage the expressway network and,
about 10 million vehicles use it per day.

NEXCO-East
NEXCO-West

Honshu-Shikoku
Bridge Expressway

NEXCO-Central

Hanshin
Expressway

Metropolitan
Expressway

2※In 2005, the former four expressway public corporations were reorganized into six new companies.

2

What is JEXWAY?
Working Structure Surrounding JEXWAY

3What is JEXWAY?
An Example of Project Stakeholders Relationship
Government

Public Sectors/JICA(Lenders or Sponsors)

Finance/Repayment
or
Investment/Dividend

Financial Org.
(Lender)
Trade Insurance(Insurance Co.)

Finance/
Repayment

Toll Rate Revision
Request & Approval

SPC

 JEXWAY Local/JapaneseCompanies Financer, Sponsor etc.

Insurance
Contract

Toll Fare
Road Users(Drivers)

Operation
RightsLand Owner

Land
Acquisition

O&M Contract(ex. 20-year)

Investment/
Dividend

JEXWAY

O&M Co. orSelf Implementation by SPC

Design Contract

Consultant

Construction Co.

Construction
Contract

Advisory contract
Supervise/Audit/Advisory
Supervise/Audit/Advisory4

Participation in Projects
ProjectFinding

Project
Planning

Survey &DesignConstruction

Operation & Maintenance Sponsor & SPC Member of PPP Green Field Project Sponsor & SPC Member of PPP Brown Field Project O&M Contractor
 Minor Sponsor
 Advisor, Consultant

5Cooperation with Parent Companies【Basic Demarcation between JEXWAY and Parent Companies】
JEXWAY : Investment and related businessParent Co. : International cooperation and contribution , Technical consulting
business, Supporting JEXWAYCurrent Work Sharing

Future Work Sharing

Project Finding, Preliminary examination/study

JEXWAY

Parent Co.

JEXWAY

Pre-FS, FS

JEXWAY

Parent Co.

Pre-FS, FS

Parent Co.

Project Formation, Contract, Construction, Operation

JEXWAY

Project Finding, Preliminary examination/study

Parent Co.

JEXWAY

ParentCo.

Project Formation, Contract, Construction, Operation

JEXWAYP

6

Studied Projects【Mongolia】【Thailand】Shutoko Representative Office【Vietnum】Nexco-CentralRepresentative Office【Philippine】【India】Nexco-East Representative Office【Cambodia】【Indonesia】Nexco-West Representative Office【USA】【Turkey】【France】【Chile】

7MOU between Foreign Gov. and JEXWAYJEXWAY entered into MOU with

The Ministry of Public Worksand Transport (MPWT) of theKingdom of Cambodia on July
19th, 2012.

The Ministry of Construction(MOC) of the Republic of theUnion of Myanmar on
December 10th, 2012.

The Republic of the Philippines Department of Public Works andHighways (DPWH) on May 10, 2012.
8

Private Participation in Infrastructure (PPI)
in low- and middle-income countries■Investment in Transportation sector of PPI has been showing an increasing trend since 2005 except for
the Lehman Collapse time.
■ 47% of Investment of PPI goes to Latin America and the Caribbean countries and 38% of it goes to Asian
countries in the last 5 years.
(Million USD)PPI Trends in Transportation Sector by Region

Investment Ratio by Region
from 2010 to 2014

The Lehman
Collapse(2008.09)
Recession after
Asian Currency
Crisis(1999）

Source：World Bank PPI Database9

Private Participation in Infrastructure (PPI)
in low- and middle-income countries■Road sector amounts for 57% of all investment in transportation sector.

PPI Trends in Transportation Sector by Subsector(Million USD)

Investment Ratio by Subsectorfrom 2010 to 2014

The Lehman
Collapse(2008.09)
Recession after
Asian Currency
Crisis(1999）

Source：World Bank PPI Database10

Index of Environment for PPP in Asia-Pacific( Infrascope Index commissioned by ADB)

Rank

County/State

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Australia
UK
Korea

18

Vietnam

5.Financial
Facilities

6.Subnational
adjustment

Overall Score
91.8
88.1
78.8
75.8
70.3
68.0
64.6
55.9
53.5
50.4
49.9
49.3
41.4
41.0
39.7

100.0
96.9
90.6
65.6
65.6
65.6
68.8
34.4
46.9
34.4
43.8
43.8
37.5
43.8
43.8100.0
100.0
83.3
66.7
66.7
66.7
66.7
33.3
58.3
50.0
50.0
50.0
41.7
33.3
50.0

60.2
64.0
74.5
64.7
87.5
61.2
54.5
75.8
51.6
58.1
53.6
51.5
15.7
42.5
18.8

90.5
84.0
66.3
86.5
60.8
82.8
75.3
78.3
57.6
59.3
70.0
73.8
70.0
49.3
59.3

94.4
94.4
88.9
88.9
72.2
77.8
63.9
66.7
58.3
61.1
36.1
47.2
55.6
30.6
30.6

100.0
75.0
50.0
100.0
75.0
50.0
50.0
75.0
50.0
50.0
50.0
25.0
25.0
50.0
25.0

33.1

25.0

25.0

39.8

55.633.3

25.0

JapanIndia
Gujarat State
Philippines
China
Indonesia
Thailand
Pakistan-Sindh prov.
Bangladesh
Kazakhstan
Pakistan
Mongolia
・・・
Maturedeveloped

2.Institutional 3.Operationalframework
maturity

4.Investment
Climate1.Regulatory
framework

Emerging
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Source：Economist Intelligence Unit （2014）, “Evaluating the environment for public-private partnerships in Asia-Pacific The 2014 Infrascope”

Trend of Infrascope Index■Infrascopeindex of Asian countries has been improved, but is not enough.

80
India
Philippine
Indonesia
Thailand
Vietnum
Chile
BrazilPeru
Mexico7060

InfrascopeIndex

5040302020111(Year)

2014
212

Ease of Doing Business Index (189 countries)
Country

Rank

Starting aBusinessSingapore

1518
192629789095114135
142

617131575
83125
128
161
155
184
158

Korea
Malaysia
TaiwanThailandJapan
Vietnam
China
Philippine
Indonesia
Cambodia
India

DealingwithConstructi
on Permits

Getting
Electricity

Registerin
g Property

Getting
CreditProtecting
Minority
Investors

PayingTaxes

TradingAcrossBorders

Enforcing
Contracts

Resolving
Insolvency

21228
11683
22179
124
153
183
184

1112721228
135124
1678
139
137

247975402873
3337108117
100
1211736235289
71
367110471
1236

3215302535117
132
154
4392
7525323762
122
173
120127160
90
156

131132362075
986562124
126

14299325264735124
172
178
186

195361845
2104
53
5075
84137

Source：World Bank Group, “Doing Business 2015 Going Beyond Efficiency”
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JEXWAY’s Achievement : Bintaro-Serpong Toll Road
ジャカルタ

Republic of Indonesia

Jakarta

インドネシア共和国

ジャカルタ

ビンタロースルポン高速道路■Bintaro-Serpong Toll Road
Bintaro-Serpongtoll road is located in Jakarta, Indonesia, and radiates out from Jakarta Outer
Ring Road and connects newly developped Serpong area with the central area.
This project is the real-toll type project.

■Outline of the road

Length：7.25km
No. of lane：6 lanes（2 direction×3 lanes）
No. of IC : 2
No. of parking area : 1
Ave. traffic volume：80,772 vehicle/day (2014)
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JEXWAY’s Achievement : Bintaro-Serpong Toll Road
■Outline of Concession
Concesionaire：PT Bintaro Serpong Damai
Scope：Funding, Technical Plannning,Construction, Operation and MaintenanceStart of Construction：1996
Start of Operation：1999
Concession Period：untill 2028

■JEXWAY’s Participation
JEXWAY and Nexco-West took over 4.18% stake in PT Bintaro Serpong Damai in December 2014.
JEXWAY 13,246 shares（2.93％）
NEXCO-W 5,654 shares（1.25％）

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Findings from the Past Studies■JEXWAY has been conducted many F/S, pre F/S and internal examination for overseas
PPP projects and negotiated with the various organizations for investment.
Identified difficulties in investment in overseas PPP projects① High hurdles for participating in the green field projects in Asian countries;
Luck of understanding for project finance and PPP
Insufficient regal and institutional framework② For brown field projects, the multiple ways of participation are assumed.
Especially, technical contribution is high potential.
③ For project finding and project formation, continuous communication and good
relationship with the on-site organization are important.
④ JICA Private Sector Investment Finance(PSIF) which is our main tool for project
participation is not always attractive.
⑤ JEXWAY has limited investment targets and speed because of limited financial
resource and approval from parent companies.
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JEXWAY’s Direction of Investment in Oversea PPP ProjectInvestment in Brown Field Projects in PPP Advanced Countries■Participate in brown field projects in PPP advanced countries where legal andinstitutional framework and PPP market environment are developed, and obtain trackrecords and experience.
Investment in Brown Field Projects in PPP Developing Countries■Participate in brown field projects which are small and mature.
※JEXWAY cooperates with reliable local or international partner and participates projects
in which we can use not only experienced O&M technology but also advanced technologyof Japanese expressway for future business development.

Investment in Green Field Projects in PPP Developing Countries■Evaluate PPP policy, related laws and markets of developing countries and participate ingreen field project in PPP developing countries with the know-how obtained from brownfield projects.
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Thank You Very MuchFor Your Attention

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