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Column: Examples of FILP-target Projects

Examples of FILP-target Projects

Japan Bank for International Cooperation

To pursue the sound development of the Japanese economy and an increasingly interdependent international economic system, Japan Finance Corporation (Japan Bank for International Cooperation (hereinafter "JBIC")) carries out operations to (1) Promoting overseas development and acquisition of strategically important natural resources to Japan; (2) Maintaining and improving the international competitiveness of Japanese industries; (3) Promoting the overseas business for preserving the global environment, such as preventing global warming; (4) Responding to disruptions in financial order in the international economy. Also, JBIC finances its activities by drawing on various funding sources, including borrowings from the FILP Fiscal Loan, Government-guaranteed foreign bond issuance and receiving FILP Industrial Investment, etc. Its FY2011 budget plans 1,552.5 billion yen of projects, obtaining funds from 1,540 billion yen of FILP (Fiscal Loan Fund 700 billion yen, Industrial Investment 200 billion yen and Government Guarantees 640 billion yen).

Example: Republic of Indonesia

Paiton Thermal Power Plant Expansion Project

Conceptual drawing of completed
Paiton Thermal Power Plant Expansion Project

According to the National Electricity General Plan, Indonesia's power demand is projected to grow at an annual average rate of 9.0% through 2027. Infrastructure development in the power sector is thus an urgent issue on the national agenda. JBIC signed a project financing loan agreement with PT Paiton Energy (hereinafter "PE"), an Indonesian company in which two Japanese company have equity stakes to fund the Paiton thermal power plant expansion project. The overall loan amount totaling up to 1,215 million US dollars equivalent was provided in cofinancing with private financial institutions with JBIC providing a political risk guarantee for the co-financed portion.

In this project, PE constructs an additional 815 MW power plant to expand the capacity of the currently operating Paiton power station in Paiton, East Java. The existing power station was also funded by JBIC. PE sells the electricity generated by this plant to P.T. PLN (Persero), a state-owned electricity company for 30 years. The construction, maintenance and operation of these power plants are all done by Japanese companies.

JBIC's support for this project is provided under the JBIC Facility for Asia Cooperation and Environment (hereinafter "FACE"), launched in April 2008, as well as the Leading Investment to Future Environment Initiative (hereinafter "LIFE Initiative"), announced by the Government of Japan in March 2009.

Also, JBIC launched the JBIC Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE) in April 2011. This develops, expands and enhances the FACE and LIFE Initiative. It aims to actively support Japanese direct investment in the systematically integrated infrastructure business overseas based on the New Growth Strategy, while mobilizing private sector funding.

Japan Student Services Organization

The Japan Student Services Organization operates a scholarship loan operation for students who aim at higher education, so that students who are eager to study and who will be responsible for Japan's future do not quit studies due to economic difficulties. There are type I scholarships with no interest, and type II scholarships with interest. To minimize interest paid by scholarship students as much as possible, FILP is utilized as a source of funding for type II scholarships.

Scholarship demand has tended to rise each year. FY2009 actual figures show about one in three university students used this system for their student lives.

Scholarship Loan Ratios in the Last 10 Years (Universities)

Can be viewed in PDF.

No. of Students and Scholarship Borrowers, by Student Type (FY2009 Actual)

Can be viewed in PDF.

Scholarship Loan Project Costs (Initial Budget Basis)

Can be viewed in PDF.

Construction Projects of Private Rail Lines (Japan Railway Construction, Transport and Technology Agency (Construction Account))

Outline of Projects

The Japan Railway Construction, Transport and Technology Agency (Construction Account) carries out construction and major improvements of private rail lines in large cities and their surrounding areas. This aims to develop the railways in order to reinforce the transport capacity for commuters to work and school, relieve the crowding ratio, enhance convenience of transit, and maintain and enhance urban functions.

Specifically, the agency is carrying out projects to convert to quadruple tracks the Odakyu Odawara Line (Higashi Kitazawa to Izumi Tamagawa (10.4km)) and Seibu Ikebukuro Line (Nerima to Shakujii Park (4.1km)).

For Odakyu Odawara Line, the project began in FY1985, and completion is planned in FY2013 (planned total project cost of 258.6 billion yen). For Seibu Ikebukuro Line, the project began in FY1974, and completion is planned in FY2012 (planned total project cost of 69.7 billion yen).

Project completion is expected to relieve crowding ratios and shorten travel times on both Odakyu Odawara Line and Seibu Ikebukuro Line.

Project Sizes and Funding Composition

In the FY2011 budget, Odakyu Odawara Line has a project cost of 6 billion yen, and Seibu Ikebukuro Line has a project cost of 2.2 billion yen, for a total 8.2 billion yen. The plan is to utilize FILP for 3.3 billion yen of this, which is about 40%.


  • Japan Railway Construction, Transport and Technology Agency/
    Railway construction projects Private rail line
    "Quadruple track construction by going underground"/Tokyo
    Odakyu Odawara Line (Higashi Kitazawa to Izumi Tamagawa (10.4km))

  • Japan Railway Construction, Transport and Technology Agency/
    Railway construction projects Private rail line
    "Quadruple track construction by high bridges"/Tokyo
    Seibu Ikebukuro Line (Nerima to Shakujii Park (4.1km))

  • Japan Finance Corporation
    (Agriculture, forestry, fisheries and food business operation)/
    Funds for Improving Agricultural Management Foundation
    (Super L Loan)/Dairy Stall Barn/Shimizu Town, Hokkaido

  • Japan Water Agency/Shimokubo Dam Control Post/Dam body/
    Kamikawa Town, Kodama County, Saitama Prefecture