法令番号:平成二十六年国土交通省告示第九百八十二号 改正: 辞書バージョン:9.0 翻訳日:平成27年3月31日
Criteria for Support by the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development
  Law number: Public Notice of the Ministry of Land, Infrastructure, Transport and Tourism No. 981 of 2014 Amendment: Dictionary Ver: 9.0 Translation date: March 31, 2015

Criteria for Support by the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development
Criteria for Support by the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (Public Notice of the Ministry of Land, Infrastructure, Transport and Tourism No. 981 of October 14, 2014)
The criteria with which the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (hereinafter referred to as "JOIN") must comply when deciding on the enterprises to which it will extend support for target works and the substance of support for target works are as set forth below.
I. Criteria To Be Met by Target Works to Which Support Is Extended
Target works to which support is extended are to meet all of the criteria set forth in (1) through (4) below.
(1) Consistency with policy objectives
i. Japan's store of expertise, technologies, and know-how will be utilized to expedite Japanese enterprises' entry into the overseas market where the target works take place.
ii. The support provided by JOIN is expected to have a positive impact on business orders received and smooth operations.
iii. The target works are consistent with Japan's foreign policy and foreign economic policy.
iv. Environmental and social aspects of the target works' implementation have been given due consideration.
(2) Initiatives by private-sector enterprises
i. The support provided by JOIN will act as an encouragement to private-sector enterprises seeking to expand overseas.
ii. Private-sector enterprises are expected to work in collaboration with JOIN to fund the target works through investments and by other means.
iii. JOIN, in coordination with private-sector enterprises, will participate with the target enterprise in the planning stages of the works as appropriate, and will send officers and technical experts to the target enterprise as necessary.
iv. In line with the principle that the private-sector should be the primary actor, JOIN will not be the largest of the Japanese investors.
(3) Ensuring long-term profitability
i. The target works are expected to take appropriate responsibility for their operations, as is befitting of the fact that target works are supported by public funding, such as by ensuring that its operational structure will allow it to efficiently, effectively, and reliably implement the target works.
ii. Objective demand forecasting and other due diligence, as well as appropriate support and other factors, give rise to the expectation of profits in the long-term.
iii. There is a high probability of JOIN being able to recoup its investment though a share transfer or other such means at the end of a joint venture arrangement between JOIN and a private-sector enterprise.
iv. Advance arrangements with the relevant parties have already been made to address JOIN's withdrawal from the target works if it is forced to withdraw its support due to external or other factors.
(4) Relationship with other public entities
It would be difficult for the target enterprise to fully implement the target works with the support of other public institutions such as Japan Bank for International Cooperation, Japan International Cooperation Agency, and Nippon Export and Investment Insurance, alone.
II. Particulars with Which JOIN Must Comply as regards Support for Target Works in General
In extending support for target works, JOIN must comply with every particular set forth in (1) through (5) below.
(1) Operations in general
i. It carries out its operations efficiently and in line with the relevant policy objectives, as is befitting of the fact that its doing so involves the use of public funds.
ii. It upholds the principle that the private-sector should be the primary actor, with a view to encouraging private-sector works.
iii. It provides funding to high-risk works that it would be difficult to fully implement with support from the private-sector enterprises and other public entities alone, and ensures the appropriate sharing of risks among the relevant parties.
iv. It creates the necessary organizational framework to provide support and supplies adequate personnel training.
v. It collaborates with Japanese public entities in the field in negotiating and coordinating with governments, enterprises, and other actors in the partner country so as to ensure the smooth operation of the target works.
vi. It reports the status of target works to the Japanese government in a timely and appropriate manner.
vii. It reviews the necessity of continuing to provide support for new and ongoing target works every fiscal year. Additionally, it reviews matters such how it should deal with discontinuing ongoing support, the end dates of new support, and JOIN's organizational structure, in association with the review conducted by the government every five years.
viii. It continuously assesses and evaluates investment risks and implements appropriate risk management, including by securing specialized personnel. It fully implements compliance risk management in association with this.
(2) Maintaining investment discipline
i. It properly handles information in consideration of the impact this could have on competition. Additionally, it ensures public accountability through proper and continuous information disclosure.
ii. It maintains investment discipline and promptly resolves open proposals through the establishment of the right framework to balance its functions of furthering works and assessing works feasibility.
iii. It streamlines the operational framework for holding its investment professionals and other officers and employees accountable for their job performance in light of practices in the private sector enterprises and elsewhere, such as by making their remuneration commensurate with their results.
iv. It provides collateral pursuant to contracts and other agreements and implements adequate follow-up to ensure that investments are consistent with policy objectives, even when providing support through an investment partnership or other actor.
(3) Long-term profitability
i. It ensures long-term profitability by adequately evaluating progress and profitability each business year to ensure that, in the long term, there will be sufficient gross revenue generated through individual grants of support for target works to exceed the amount of necessary gross expenditures (including those from the payment of appropriate dividends to investors).
ii. It takes every measure to improve the business performance of target works if this deteriorates. If there is no prospect of improvement even after every measure has been taken, it considers making arrangements such as selling the shares it holds to the target enterprise or to a third party.
iii. It appropriately diversifies its investments to the extent permitted by its purpose, so that the target works do not to place a disproportionate emphasis on investing in any specific business type.
(4) Relationship with private-sector investors
i. The composition of its private-sector investors and other contributors is appropriate in terms of ensuring its neutrality and in terms of ensuring a broad range of private-sector investors and contributors.
ii. It gives a full hearing to the opinions of its major private-sector investors and contributors with regard to its executive management policies, and ensures that its operations reflect these opinions, as necessary.
(5) Other particulars
i. It complies with all government policies beyond the foregoing which are applicable to its operations.
ii. It gives due consideration to supporting the overseas expansion of small and medium-sized enterprises and to coordinating its efforts with overseas cooperation by local public entities.
(Note): Any term used in these Criteria for Support for which the relevant Act provides a definition carries the meaning ascribed thereto by that Act.