development of infrastructure is huge. Existing initiatives will need to be continued and reinforced, the best possible use should be made of the expansion of systems, and new initiatives to deal with current changes in conditions must be undertaken. To this end, the MLIT formulated an action plan (Action Plan for the Overseas Development of Infrastructure Systems). This action plan applies not to different sectors separately but rather on a cross-sectoral basis by region and country. In addition to substantiating and specifying details to a greater degree, such as clarifying priority projects, clarifying the timing according to which actions are to be taken and otherwise, this action plan also incorporates specific measures, such as those pertaining to international standardization, support for Soft Infrastructure (including human resource development and support for the construction of systems), the promotion of participation in PPP projects, the enhancement of strategic promotions, and the overseas deployment of small to medium-sized companies. The MLIT shall strategically carry out the overseas development of high-quality infrastructure systems in line with this action plan according to a schedule deemed to be most effective.

## (3) Proactive engagement in PPP projects

The world infrastructure market is projected to continue growing due to rapid urbanization and rapid economic growth in emerging countries. In particular, we are seeing more cases in which infrastructure is being developed through public-private partnerships (PPP) based on the use of private-sector funds and in which the concession method is being adopted for the operations of existing public transportation services. These cases represent a huge business opportunity for private companies. However, transportation and urban development projects are characterized by long-term development windows, demand risks during the operations stage, and the exercising of influence by local government organs, such that participation by only private-sector players is challenging.

For this reason, the MLIT established the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN) in October 2014 to carry out capital investments and participate in projects on an integrated basis in accordance with demand risks in order to help Japanese private companies participate in overseas markets for transportation and urban development. To date, JOIN has decided that it would provide support for three different projects. In September 2015, it organized the First International Seminar on the Overseas Development of the Infrastructure Business jointly with the MLIT and the Japan Bank for International Cooperation (JBIC). In FY 2016, JPY 90 billion was posted to the Fiscal Investment and Loan Program (JPY 38 billion for industry investments and JPY 52 billion for government guarantees). JOIN will continue to be proactively utilized.

## Column Overseas development of infrastructure systems

## [Matters decided by Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN)]

As for matters decided by the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) in the period from October 2014, when JOIN was founded, to the end of December 2015 (approved by the Minister of MLIT), the outlines and the importance of the support are introduced here.

## (1) Management and operation of Thi Vai International Port near Ho Chi Minh, Vietnam

An investment (approximately 1.2 billion yen) is made to participate in the project of management and operation of the port terminal for importing ferrous scrap in Thi Vai International Port near Ho Chi Minh.

This is the first time for a Japanese port transportation company to participate in port operations in Vietnam and is expected to benefit Japanese-owned companies in Vietnam and contribute to economic development within the country.

Handling of ferrous scrap (illustration).

Source) MLIT