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METI to increase subsidies to firms’ survey costs to promote infrastructure exports

  • August 30, 2016
  • , Nikkei , p. 4
  • JMH Translation

To promote exports of Japanese firms’ infrastructure building expertise, the Ministry of Economy, Trade and Industry will increase its subsidies for the cost of receiving orders for projects. “Design-build” contracts have been increasing in number and these have been pushing up the cost burden on companies undertaking projects. The ministry will shoulder half of the cost of local surveys that need to be conducted prior to bidding to make it easier for Japanese businesses to tender bids.

 

METI has already earmarked 2 billion yen in the second supplementary budget draft for fiscal 2016. This represents an increase of 500 million yen from what had been allocated in the supplementary budget for fiscal 2015 and is aimed at “giving Japanese firms an upper hand in their proposals before competition over prices becomes intense,” according to the ministry. The subsidy will cover feasibility studies on infrastructure projects that companies need to conduct prior to bidding, including surveys on local demand and land drilling. (Abridged)

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