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Japanese to help build, maintain infrastructure
The Japanese government is teaming up with companies from that country to build, operate and maintain infrastructure facilities in emerging markets, including Viet Nam, according to a Japanese daily newspaper.
Their first undertaking in Viet Nam will be three infrastructure projects worth 75 billion yen (US$820 million), the Nikkei said.
The projects, expected to be awarded by the Vietnamese Government as early as next month, include setting up a water supply system in Ha Noi by NGK Insulators Ltd. and Metawater Company, installing intelligent transportation systems on a highway linking Ha Noi and HCM City by the Central Nippon Expressway Company, and construction of a bio-mass power plant on the outskirts of HCM City by Electric Power Development Company.
The Japanese government will offer trade insurance and other support in case Viet Nam and other countries delay or suspend payments. It could also offer insurance cover for the projects as a whole, including operations and upkeep.
Japanese firms' involvement in infrastructure projects in Asia and elsewhere has so far been limited to construction and supply of materials.
The projects will focus on nuclear and efficient thermal power plants, water systems, railways, recycling operations, telecommunications and the like.
The Government will draw up strategies to help Japanese firms win infrastructure orders in the next decade or so and consider providing financial support to Japanese consortiums.
Around 2 per cent, or some $1 trillion, of the world's gross domestic product is spent every year on constructing and maintaining infrastructure, according to the Japanese Ministry of Economy, Trade and Industry.
With infrastructure demand to balloon in emerging markets, spending will total an estimated $41 trillion between 2005 and 2030.
vietnamnews
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