Japan for US$100 bn investment in Asian infrastructure
The Dollar Business Bureau In a move to increase its influence in the fast-growing Asian region, the Government of Japan is looking at investing in infrastructure development in the region over the coming five years. The Government of Japan is likely to invest US$100 billion in roads, bridges, railways and other building projects in Asia, said the reports on Tuesday. An announcement, in this regard, with respect to increasing Japanese investments in Asian infrastructure and loan assistance for Asian countries, is expected to be made by the Japanese Prime Minister, Shinzo Abe, on Thursday, said the Japanese News Agency. Through this investment, Japan is likely to prove its stance and build its profile in the Asian region by building high-quality infrastructure through the human resource development and the technology transfers. Under this initiative, the Japanese government will extend loan assistance (in yen currency) to the Asian countries and the loans to be provided by the Japanese government-affiliated ‘Japan Bank for International Cooperation’ will be extended to the Asian countries through the Japan International Cooperation Agency. Even though the investment is likely to be under public-private assistance, the reports say that the Japanese government hopes to encourage private sector investments in Asia by reducing risks with the use of public funds. As of now, the Japanese investments in Asia through the Japan International Cooperation Agency (JICA) stands at a total of Yen 600 billion a year, of which 60 to 70% is towards infrastructure development in the region. This move by the Japanese government is coming as a part of its strategy to remain different from the already-existing Asian Infrastructure Investment Bank (AIIB). And, it gains importance in view of the planned expenditure by the Japanese government being same as that of the planned capital by the China-led Asian Infrastructure Investment Bank, in which Japan has declined to become a founding member.
May 19, 2015 | 5:32 pm IST.