Japan: Project finance needs know-how
SUPPLEMENT - THE 2008 GUIDE TO ENERGY AND PROJECT FINANCE - October 01, 2008
The first project finance loan agreement in Japan was executed in 1998. It served as the basis for the first independent power producer (IPP) project in Japan. Since then, the number of project finance transactions in Japan has increased each year, mainly involving IPP projects.
Power
One reason why project finance has become popular in Japan is the deregulation of the power industry. Historically, as Japan had many good domestic quasi-governmental bodies with ample sources of finance for power generation projects, there was no need for (and therefore there were no) pure private industry entities involved in and also no private financing for such projects. However, as awareness of the advantages and benefits of deregulation spread, private industry entities started to enter the Japanese power supply business. As mentioned above, the power purchase agreement for the first IPP project in Japan was executed in 1997, and the project finance loan agreement...
The rest of this article is available to subscribers only. Subscribe today for full access to this article.
Alternatively take a free trial, giving you access for 48 hours*.
If you are already a subscriber, please log in below to access the rest of this article.
*some articles may be excluded.