24 December 2024
JFE Engineering Corporation
JFE Engineering Corporation (President: Kazumi Fukuda; Headquarters: Chiyoda-ku, Tokyo; "the Company") and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (President: Tatsuhiko Takesada; Headquarters: Chiyoda-ku, Tokyo; "JOIN") have agreed to invest in four road-operating subsidiaries of DP Jain & Co. Infrastructure Pvt. Ltd. (Managing Director: Girish Jain; Headquarters: Nagpur, Maharashtra, India; "DPJ") and establish a joint venture to support the operation of these companies.
This is the first time a Japanese construction company will invest in and participate in a road PPP*1 project in India. The Company and JOIN will invest in and participate in the four road PPP project companies owned by DPJ through a newly established investment SPV*2 in Japan, named "Japan India Road LLC (a Joint Venture Company)." Through this project, we aim to gain experience and build a track record in India's road PPP market. Additionally, leveraging the expertise we have cultivated in bridge rehabilitation projects, we will address various challenges surrounding road infrastructure development in India. The four road PPP project companies in which we will invest and participate are as follows:
1) D P Jain Ujjain Package (Annuity) Road Projects Private Limited
2) D P Jain Dariapur-Jasondhi (Annuity) Road Projects Private Limited
3) DPJ Bidar Chincholi (Annuity) Road Project Private Limited
4) Ghorad Seloo HAM Road Project Private Limited
The total length of road lanes operated by the four companies is approximately 600 Lane km, with a remaining concession*3 contract period of up to eight years.
Furthermore, the Company, JOIN, and DPJ will establish a joint venture in Mumbai, Maharashtra, to support the operation of these project companies. Through this joint venture, we will also focus on business development for new PPP road projects in India.
The specific business development activities are as follows:
① Acquisition of new PPP HAM*4 road projects.br>
② Acquisition of new TOT*5 road projects.
③ Utilization of DX technologies and optimization and reduction of road maintenance costs through big data analysis.
④ Existing bridge inspection and repair projects.
⑤ Existing bridge reconstruction projects.
Using this project as a model case, the Company and JOIN will contribute to road infrastructure development in India, where economic growth is remarkable, leveraging the infrastructure renovation, repair, and improvement technologies cultivated in Japan.
- *1 Public-Private Partnership: A framework that combines private sector funding, expertise, and innovation with public infrastructure or services traditionally provided by government authorities.
- *2 Special Purpose Vehicle: A legal entity created for a specific project or business.体
- *3 A concession involves a government or local authority retaining ownership of land or buildings while selling the operational rights of public infrastructure to private companies for a fixed period.
- *4 Hybrid Annuity Model: A contract model where a certain percentage (as pre-decided by Client) of construction costs are paid by the client upon completion of construction, with the remaining costs paid as annuities instead of the traditional method of full payment of building, maintenance, and operating costs by divided annuities during the concession period.
- *5 Toll Operate Transfer: A model where roads are constructed, and the rights to collect tolls are used to recover construction costs.
Company Profiles
JFE Engineering Corporation
| Established | April 2003 |
|---|---|
| Head Office | 2-2-3 Uchisaiwaicho, Chiyoda-ku, Tokyo |
| Representative | Kazuyoshi Fukuda, President and CEO |
| Lines of business | EPC (engineering, procurement, construction) of plants and structures, manufacturing, operations, etc. |
Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN)
| Established | October 2014 |
|---|---|
| Head Office | 2-2-3 Marunouchi, Chiyoda-ku, Tokyo |
| Representative | Tatsuhiko Takesada, President and CEO |
| Lines of business | Supporting the participation of Japanese companies in overseas transport and urban development projects through investments and other means. |
DP Jain & Co. Infrastructure Pvt. Ltd.
| Established | December 2004 |
|---|---|
| Head Office | U/6, Himalaya Accord Apartments, Amravati Road, Nagpur- 440010 Maharashtra, India |
| Representative | Girish Jain, Managing Director |
| Lines of business | Civil engineering, construction, and operation of roads, airports, railways, etc. |
Business Scheme
位置図
For inquiries regarding this press release, please contact:
- Public Relations Section, General Administration Department, JFE Engineering Corporation