Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
1
JBICJBIC’’ss Role in the Petrochemical SectorRole in the Petrochemical Sector
Aya YAMAZAKIDirector General
International Finance Department II Japan Bank for International Cooperation (JBIC)
2 May 2004
2
JBICJBIC’’ss Role in theRole in the Petrochemical SectorPetrochemical Sector
I. Past Operations
II. Prospective for the Future
3
I. Past Operations1. Bilateral Cooperation Projects
Need for energy security in Japan and need for development of economy in oil-producing countries led to the following projects;
i. IJPC project in Iran
ii. SHARQ project in Saudi Arabia
2. Projects Targeting Local or Regional Market
i. Chandra Asri project in Indonesia
ii. Ethylene plant project in Singapore
3. JBIC also supported numerous petrochemical projects in the Middle East, Asia and Europe by Export Credit Facility with sovereign guarantees.
4. However these projects were implemented at the time when the market was segmented, and not yet globalized, so there was no connection among the individual projects with each other.
4
II. Prospective for the Future
1. Background
Structural Change in the Market
i. Globalization and consequent increased competition
ii. Tendency of high oil and gas prices due to growth of emerging economies, represented by China
iii. Increasing geopolitical risks
Increasing competitiveness of gas-based low cost projects especially in the Middle East
Diversification of Japanese companies’ approaches
5
Diversification of Japanese companies’ approaches are:
i. To support constructing petrochemical plants as an EPC contractor (engineering companies);
ii. To offer their licensed technology as a licensor (chemical companies);
iii. Offtake of competitive petrochemical products (trading companies and chemical companies);
iv. To invest in petrochemical projects in Asia (and subsequently in the Middle East) (trading companies and chemical companies).
6
2. JBIC’s RoleJBIC is ready to cope with such a background by using:
i. Instruments:
Export Credit Facility
Overseas Investment Credit Facility
Import Credit Facility
ii. Security:
Corprate Basis
Structured Finance Basis
Project Finance Basis
iii. Interaction between JBIC’s role and Japanese companies’approaches: e.g. using offtake contracts as a collateral
7
<Export Credit Facility>
Trading Company
EngineeringCompany
Buyer(Petrochemical
Company)JBIC
Chemical Company
Licensed Technology
EngineeringProcurementConstruction
PetrochemicalProducts
Export Credit Facility
<Japanese Companies>
8
<Overseas Investment Credit Facility>
Trading Company
Joint Venture JBIC
Chemical Company
Licensed Technology
PetrochemicalProducts
Joint Venture Partner(Petrochemical
Company)
Overseas Investment
Credit Facility
Equity Participation
<Japanese Companies>
9
<References><References>
JBIC Facility to NPCJBIC Facility to NPC
10
JBIC ProfileJBIC ProfileJapan Bank for International Cooperation (JBIC) is:
A Governmental Financial InstitutionEstablished on 1 October 1999 through a merger of1. JEXIM (The Export-Import Bank of Japan) and2. OECF (The Overseas Economic Cooperation Fund)Total Assets: Over 200 billion USD
JBIC’s missions are: To promote Japanese trade and economic activities overseasTo contribute to stability of international financial orderTo assist economic and social development in developing countries
11
JBICJBIC’’ss Role in IranRole in IranTotal Commitment Amount as of 31 March 2004:
8,446 million USD
Outstanding Amount as of 31 March 2004:3,986 million USD
Recent Transactions:Ammonia & Urea Plant Project (Bank Mellat, March 2002)Advance Facility for Crude Oil Import (NIOC/NICO, March 2004)Ammonia & Urea Plant Project No.2 (NPC, March 2004)
12
History of JBIC Facility to NPCHistory of JBIC Facility to NPCIJPC Project:
In 1976, JEXIM (former JBIC) committed a direct facility to NPC totaling 60 billion JPY (166 million USD at that time) for the BIPC (former IJPC) project in Bandar Imam.
Since then, NPC and JBIC have been building up a good relationship.
13
JBIC Facility to Iranian BanksJBIC Facility to Iranian BanksSince 2000, JBIC Facilities have been provided to Iranian banks (Bank Mellat, Bank Melli, Bank Sepah) with sovereign guarantees.
The Facilities have also been provided to the following NPC projects:
4th Aromatics Plant Project in Bandar AssaluyehPTA II Plant Project in Bandar ImamAmmonia and Urea Plant Project in Bandar Assaluyeh
14
JBIC Facility to NPCJBIC Facility to NPC
NPC and JBIC signed the Memorandum of Understanding (MOU) on 9 February 2004.
Based upon the MOU, NPC and JBIC have signed the first facility agreement on 9 April 2004 for the 2nd Ammonia and Urea Plant Project.
15
MOU between NPC and JBICMOU between NPC and JBICAim
To support exports of Japanese goods and services on time
To support NPC’s investments in the petrochemical sector
16
Outline of MOUOutline of MOUThe MOU stipulates the following issues:
The template of legal documents including the structure of collaterals
Procedure of application
This MOU enhances the number of opportunities offered to Japanese exporters and shortens the time taken to complete the financing for the individual NPC projects.
17
Who Can Use This Facility?Who Can Use This Facility?
Japanese Exporters & Foreign ExportersIf the Japanese exporters are a main contractor, and Japanese goods & services make up more than 30% of the foreign portion, the JBIC Facility can cover up to 85% of the foreign portion.
If the Japanese exporters are a subcontractor, the JBIC Facilitycan cover 85% of the contract price.
Iranian FirmsFor the local portion, the JBIC Facility can also cover up to 15% of the foreign portion.