ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and PPC has a maximum value of USD 697 million. The governmental agency Nippon Export and Import Insurance (NEXI) provides an Overseas Untied Loan Insurance for the cofinanced portion provided by a number of Japanese private financial institutions. The company is an Omani joint venture between the Japanese companies Marubeni Corporation and CHUBU Electric Power Co., Inc. as well as the companies Qatar Electric and Water Company Q.S.C., and Multitech L.L.C. in Oman.
The loan finances the company's project to construct a natural gas-fired combined cycle power plant in Oman and sell the generated electricity to Oman Power and Water Procurement Company S.A.O.C. (OPWP) for a period of 15 years. The project is notably a contract awarded by OPWP under a Build, Own, Operate scheme, allowing the joint venture to be operated beyond the Power Purchase Agreement term of 15 years under certain circumstances.
In this context, the JBIC stated: "JBIC will continue to support Japanese firms in expanding overseas infrastructure business through project structuring and risk taking by drawing on its range of financial facilities and schemes."
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank’s website under overseas investment loans.
Project financing loans include preferential terms such as repayments being solely made from the project’s cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
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