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JBIC Finance. June 15, 2005. Katsunori Kudo Resident Executive Director for the Americas Japan Bank for International Cooperation. ALIDE35, Rio de Janeiro. Outline of JBIC P.2 Role and Function of JBIC P.12 Conclusion P.17 Clean Development Mechanism P.20
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June 15, 2005
Resident Executive Director for the Americas
Japan Bank for International Cooperation
ALIDE35, Rio de Janeiro
Name : Japan Bank for International Cooperation (JBIC)
Establishment: October 1, 1999
Purposes : Contributing to the sound development of the
Japanese economy as well as international economy,
under the principle that it will not compete with
financial institutions in the private sector,
through lending and other operations for:
1. Promotion of Japanese exports, imports or
Japanese economic activities overseas
2. Stability of international financial order
3. Economic and social development
1. Policy-Lending Institution to Implement Japan’s External Economic Policy
2. Complementing and Encouraging Private-Sector Financial Institutions
3. Ensuring Financial Soundness
Sources of Funds
Sources of Funds
The primal objective of International Financial Operations is to contribute to the promotion of Japanese exports and imports, as well as Japanese economic activities overseas, and to the stability of international financial order.
The primal objective of Overseas Economic Cooperation Operations is to assist developing countries in their efforts to develop economic and social infrastructure and stabilize their economies.
Latin America and the Caribbean, Africa (excluding Egypt) and Central Asia and Caucasus
Development Assistance Department III
South Asia (exc. Bangladesh & Sri Lanka), Middle East, Central & Eastern Europe, Russia
Development Assistance Department II
East Asia, Cambodia, Laos, Viet Nam, Bangladesh and Sri Lanka
Development Assistance Department I
Southeast Asia (excluding Cambodia, Laos and Viet Nam)
Sector Strategy Development Department
Project Development Department
Administration and General Services Department
Policy Planning and Coordination Department
Loan Administration and Information Systems Department
Development Assistance Strategy Department
Development Assistance Operations Evaluation Office
Public Relations Office
Information Systems Office
Deputy Governor and Managing Directors
Senior Executive Directors
Administration & Support
International Finance Department III
North America and Latin America and the Caribbean
International Finance Department II
Central Asia and the Caucasus, Pakistan, Afghanistan, the Middle East, Africa and Europe
International Finance Department I
Asia (excluding Central Asia and the Caucasus, Pakistan and Afghanistan)
Overseas Representative Offices
Project Finance Department
Corporate Finance Department
Energy and Natural Resources Finance Department
Policy and Strategy Department for International Financial Operations
Environment Analysis Department
Country Economic Analysis Department
Credit Analysis Department
Advisory and Consulting Office for SME
Industrial Research Office
29 Offices in the World
Rio de Janeiro
(by type, average amount in each period)
JBIC’s (IFO) Loans to the World:
Total US$ 77,980 million
IFO Loans to Latin America:
Total US$13,464 million
As of March 2005 (Exchange Rate: JPY109/US$)
JBIC’s ODA Commitments to the World:
Total US$210,104 million
JBIC’s ODA Commitments to Latin America:
Total US$13,683 million
As of March 2005 (Exchange Rate: JPY109/US)
JBIC’s International Financial Operations (IFO) is conducted according to the following Objectives.
Overseas Investment Loans
Loans to support Japanese direct investment in developing countries.
Export of plants, etc.
Project in the recipient country
Guarantee to Private Syndicated Loan
Lending facility that aims at creating an external environment conductive to Japan’s global economic activities, including trade and investment, and supporting structural adjustment in developing countries etc. (not conditional on the procurement of equipment or machinery from Japan.)
Guarantees provided to loans extended by commercial banks, etc. and to sovereign bonds and bonds issued by public entities.
Issues of Public
Imports of equipment, technology
Project in the recipient country
Note: No compete to the Export Loans
The principal purpose is to assist developingcountries in their efforts to develop economic andsocial infrastructure and stabilize their economies.
ODA* Loans: Low-interest and long-term loans to assist developing countries in their self-help efforts toward sustainable economic development, by financing the building of their economic and social infrastructure (“Basic Strategy of Japan’s ODA Loan”: See P.16）
Studies: Studies required to implement the above operations
*ODA: Official Development Assistance
Latin American Region
In the Latin American region, destruction of valuable ecosystems in Amazon and other areas, and air pollution and water contamination in cities have become increasingly serious problems. We will thus give high priority to①assistance for environmental protection projects. In this region, wide economic and income disparities exist among regions inside individual countries. We will therefore place high priority on ②assistance relating tothe construction of economic and social infrastructure to rectify such gaps, ③human resource development, restoration of employment and safety, and ④poverty reduction. Furthermore, promotion of regional integration is believed to be the key to future development of an economic society in this region. For this reason, we will place high priority on ⑤assistance to regional integration initiatives. When providing such assistance, we will assign importance to coordination of efforts with international organizations, bilateral aid organizations and other stakeholders in view of the specific needs and actual conditions of each country as well as the trends towards regional integration. In addition, we will energetically take on intellectual cooperation and technical assistance.
Source : Medium – Term Strategy for Overseas Economic Cooperation Operations (April 1, 2005 – March 31, 2008) April, 2005
Japan Bank for International Cooperation (JBIC)
Next page you are able to find out my simple answer.Latin America and JBIC
DFI SupportMajor Areas for Establishment of Complementary Relationship between Latin America and JBIC
Natural Resources & Food
Strengthen Economic Ties between Latin America and Japan
DFI : Development Financing Institutions
SME: Small or Medium Sized Enterprise
MDGs and JBIC
MDGs: Millennium Development Goals
Committed USD10 million along with 8 Japanese companies (May 2000)
Support for the Capacity Building in the Host Countries
Support for Mobilizing Institutional Framework, having a seminar regarding Kyoto Mechanisms
Financial Support for CDM/JI Projects through:
International Financial Operations (Export loan, Overseas investment loan, Untied loan, Guarantee, Equity participation), and
Overseas Economic Cooperation Operations (ODA loan)
Establishment of the Japan Greenhouse Gas Reduction Fund (JGRF) and Japan Carbon Finance,Ltd. (JCF)
The first GHG Reduction Fund in Asia to contribute the achievement of the GHG Reduction target of Japan defined by Kyoto Protocol, and to contribute the sustainable growth in Non Annex I countriesJBIC’s Engagement to Kyoto Mechanisms
(2) Fund Pool : Called “Japan GHG Reduction Fund (JGRF)”, which JCF can utilize to purchase ERs
(3) Committed Fund Amount: Approx. USD 140 million
(4) Establishment: December 1, 2004
(5) Location: Tokyo, Japan
(6) Fund Providers: Major Japanese Private Enterprises & Policy-lending Institutions
JCF was established by some of Major Fund Providers including Japanese Policy-lending Institutions (JBIC, Development Bank of Japan).
(7) Project Development Cost (PDD Preparation, Validation, etc.): To be borne by JCF in principle with a certain ceiling
(8) Timing of Payment : Payment on Delivery in principle (Upfront Payment is to be made on case-by-case basis)General Outlines of Japan Carbon Finance,Ltd. (JCF)
Relationship between JCF & JGRF
Emission Reduction Resale Agreement
Emission Reduction Purchase Agreements (ERPAs)
*Fund Provision through JGRF
Emission Reduction Purchase Agreement
(Untied Loan, Export credit, Overseas investment loan, ODA loan, etc)
Payment for ERs
generated during the
Crediting Period of the Project
provided for CDM Projects by JBIC
Overseas Investment Loan
Untied Loan, etc
Purchase of CER
On-lending for equipment, working capital etc
⇒Smooth Implementation of Projects
Collaboration and Support with/from JBIC Underlying Finance
Extensive knowledge and know-how in dealing with environmental projects in developing countries
Intermediary Functions: Close and Tight Relationship with Japanese Industry having interest in CDM/JI Projects
Accumulation of experience through investment in PCFAdvantages of JBIC’s financing for CDM/JI Projects
JBIC Signs Cooperation Agreement on the Kyoto Mechanisms with Corporación Andina de Fomento（CAF):
Partnership to Help Achieve Japan's GHG Emissions Reduction Target (April 5, 2005)
JBIC Signs Cooperation Agreement on the Kyoto Mechanisms with the Colombian Government:
Partnership to Help Achieve Japan's GHG Emissions Reduction Target (April 11, 2005)
JBIC Provides Investment Two-Step Loan to BANCOMEXT:
Supporting Japanese Firms' Investment Activities in Mexico through the Cooperation of Two Governmental Financial Institutions in Line with the Japan-Mexico Economic Partnership Agreement (April 12, 2005)
JBIC Signs Memorandums of Understanding with the IDB Group and Other Parties:
Strengthening Mutual Ties for the Support of Japanese Business Activities in Latin America and the Caribbean (April 12, 2005)
International Finance Department III（Tokyo)
Development Assistance Department IV（Tokyo)
Representative Office in Bogota TEL:57-1-629-2436 FAX:57-1-629-2707
Representative Office in Buenos Aires TEL:54-11-4394-1379 FAX:54-11-4394-1763
Representative Office in Lima TEL:54-1-442-3031 FAX:51-1-440-9657
Representative Office in Mexico City TEL:52-55-5525-67-90 FAX:52-55-5525-34-73
Representative Office in New York TEL:1-212-888-9500 FAX:1-212-888-9503
Representative Office in Rio de Janeiro TEL:55-21-2553-0817 FAX:55-21-2554-8798
Representative Office in Washington, D.C.TEL:1-202-785-5242 FAX:1-202-785-8484
Address by Prime Minister Junichiro Koizumi on the Latin American and Caribbean Policies- Toward a New Japan-Latin America and Caribbean Partnership – (Extract)(Venue: a luncheon meeting hosted by the Governor of Sao Paulo)September 15, 2004
Ladies and Gentlemen,
Divided by the Pacific Ocean but facing each other, East Asia and Latin America are the most dynamically developing regions in the world.
To strengthen our efforts in tapping into the "great potential" for our mutual benefit, we need to follow the two guiding principles of "Cooperation" and "Exchange.“
<- Cooperation ->
The first principle is "Cooperation." It consists of two pillars; "reactivating the economic relationship" and "addressing challenges of the international community."
To realize the latent potential of Japan and Latin America, the most important issue is reactivating our economic relationship.
Latin America possesses the dynamism of development, a market of 530 million people, a wide expanse of land, rich natural resources, and an excellent, young workforce.
On the other hand, Japan has experience in developing an economy based on democracy and the marketplace, the world's second largest economy, an abundant workforce, capital, and cutting-edge technology.
I am confident that if Japan and Latin America, who possess such complementary characteristics, decide to cooperate, it will lead to mutual benefits for both parties.
Energy, minerals, and edible resources are indispensable to making possible the sustained growth of the world economy. Endowed with energy and rich natural resources, Latin America continues to grow in importance.
To my country, which has few natural resources, securing a stable supply of resources in the mid to long term is an issue of grave importance.
During the 1960s and the 1970s, Japan invested heavily in various sectors of Brazil, including ① iron manufacturing, ② pulp, ③ aluminum, and ④ agricultural ventures, as part of a national project to develop Brazilian resources. Many Japanese enterprises moved to Brazil and contributed to the country's economic development.
I also want to highlight the Initiative for the Integration of Regional Infrastructure in South America, the Plan Puebla-Panama, and other initiatives being promoted in both South and Central America in promoting the unification of Latin America.
Rugged mountains and lush green forests divide Latin America into large expanses. If infrastructure projects could join the region north to south and east to west, then both the promotion of regional integration and the development of the entire region would more quickly accelerate.
Recognizing that the maintenance of infrastructure is an important postulate of economic and social development, my country is distributing approximately $4.6 billion of cooperation for Latin American countries in that same area.
In order to make the sustainable prosperity of the world community possible, we also need to strike a balance between economic development and protecting the environment.
Through the Three R's--Reduce, Reuse, Recycle--I hope to build a sound material-cycle society on a global level. Global warming is also a problem of great magnitude and urgency, one that cannot be set aside, even for an instant.
In December of this year, the 10th session of the Conference of the Parties to the U.N. Framework Convention on Climate Change (COP10) will be held in Buenos Aires, where Latin America's leadership will be sought and highly valued. I hope we can work together to achieve early entry into force of the Kyoto Protocol, so we can leave a better earth for the next generation.