METI to extend financial support for overseas tendering
The Ministry of Economy, Trade and Industry (METI) will extend its financial support to Japanese construction companies participating in tenders overseas, Nikkei reports. The support is part of the Japanese government’s drive to increase so-called ‘infrastructural exports’ in the coming years. The move is prompted by the increase in ‘Design-Build’ tenders, where design and construction of publicly offered projects are combined. Design-Build is still relatively rare in Japan itself, and METI believes that these types of public tenders increase the burden of companies. It therefore is planning to give support to 50% of the costs for surveys on the spot, necessary to prepare before a tender to Japanese companies.
In its supplementary budget, METI is planning to increase the subsidy system with an additional ¥500 mln (€4.3 mln) on top of the on top of the ¥2 billion (€17.5 mln) already set aside for the measure. Costs for feasibility surveys such as market surveys and drilling services to assess the promise of project before tendering will receive support from METI. In 2015, the IHI Corporation conglomerate already received government support when it participated in a tender for bridge construction in Turkey.
While thus far Japanese construction giants have made forays into global markets, their European counterparts have found it difficult to enter the Japanese market for construction of public works.
Source: Nikkei Online