ISSN 1346-2121 JOURNAL OF MITSUBISHI RESEARCH INSTITUTE No.39 2001
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Current Situation of Project Finance in Japan Research Paper Current Situation of Project Finance in Japan Hitoshi Wakamatsu Summary As a result of concern over economic stagnation, central and local governments financial difficulties, and the financial strategy of private companies, project finance is getting into the limelight in Japan. At present, the innovation of project finance is proceeding based on PFI for new infrastructure development schemes and power plant projects. Project finance defines the share of role and accountability for the public sector and the private sector on the basis of bankruptcies in the dai-san sector and private development projects during the economic bubble period. So project finance is expected to simplify the efficient development of new projects and finance together with the development of financial models such as securitization. In this manuscript, we show the background of the process against and legal which project finance is introduced, and examine the features of project finance, has had a significant infuruence issues and problems in the practical application of project finance. Moreover, recently financial technology for influences not only on securities asset such as stocks and bonds but also on evaluation methods for these projects. We also examine application possibilities for financial technology in project evaluation. Contents 1. Project finance in Japan 1.1 Features of project finance 1.2 Project finance in Japan 1.3 PFI (Private Finance Initiative) 1.4 Restructuring the power industry 2. Legal issues 2.1 Commitment 2.2 Assignment of claims 2.3 Escrow 2.4 Other issues 3. Financial issues 3.1 Bond issues 3.2 Guarantee 3.3 Project scale 3.4 Other issues 4. Project valuation using financial engineering 5. Carrying out project finance in future APPENDIX Example of project valuation JOURNAL OF MITSUBISHI RESEARCH INSTITUTE No.39 (SEP. 2001) 3 - ii
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No.39 2001.9 Koichiro Meguro Noriyuki Hiraoka Takaaki Sugiura Shintaro Shimizu Eiji Yamada Hitoshi Wakamatsu Ken Fujii,Ph.D.
No.39 2001.9 Yasuhiro Kumode Masaya Tajima Takeshi Fukuda Tomohiko Tsunoda Yasumasa Miyazawa Michiko Oishi