Japan funded Indo-Pacific Infrastructure Opportunities

In June 2022, the Japan International Cooperation Agency (JICA), a Japanese government agency which serves as the implementing body for Japanese-funded infrastructure and development projects throughout the Indo-Pacific, announced its intent in an industry trade paper to focus on developing projects in closer cooperation with the Engineering and Consulting Firms Association (ECFA). For years, ECFA member firms have been identifying prospects for development projects throughout Asia, ranging from power plants and bridges to airports and other key infrastructure assets. ECFA member firms refer potential projects to local governments and JICA, which in turn funds feasibility studies. Such projects focus on high quality and long-lasting solutions built through local labor, offering an alternative to other sources of development assistance that fail to create local jobs and growth, and/or cause other concerns.

U.S. construction engineering and related consulting companies seeking to participate in Japan-funded projects in Asia should consider partnering with Japanese firms, notably ECFA member companies, at the earliest stages of project identification/prospecting (referred to as “seeding” by the Japanese). Because Japanese developers typically procure domestically produced goods and services as a matter of course (there is no regulation or restriction encumbering them to do so), we recommend that U.S. companies both partner with ECFA members and identify U.S. funding sources, e.g., the U.S. International Development Finance Corporation (DFC) and/or the U.S. Trade and Development Agency (USTDA) to develop and expand opportunities to participate in Japan-funded development projects in Asia.   U.S. companies are unlikely to successfully participate in Japan-funded Indo-Pacific development projects after ECFA-referred projects backed by JICA feasibility studies are initiated. U.S. companies should also know that the Japan Bank for International Cooperation (JBIC), a Japanese public financial institution and export credit agency, has a Memorandum of Understanding (MOU) in place with both DFC and USTDA. 

For additional information, please contact office.tokyo@trade.gov and refer to the design and construction sector.