New ¥100bn fund to promote Japan’s water interests

Published October 21st, 2010

The decision by Japan’s Ministry of Economy, Trade and Industry (METI) to launch a ¥100 billion ($1.2 billion) fund to accelerate private sector investment in the international water business is the latest sign that the nation is serious about promoting its capabilities abroad.

The move comes a year after METI set up a study group to establish the challenges and opportunities of investing in the international water market, which it predicts will grow to ¥87 trillion ($1.07 trillion) in 2025.

The fund is expected to launch early in 2011, and a number of investment houses – including Nomura and Macquarie – as well as Japan Bank for International Cooperation and the Development Bank of Japan, have been invited to participate.

The aim would be to jointly finance the purchase of overseas water infrastructure firms, as well as bid for construction and operation contracts for water and sewerage systems, particularly in emerging markets.