The Japan Bank for International Cooperation (JBIC) – Japan’s financial institution that provides resources to the country’s foreign investments – has reaffirmed its commitment to renewing its work relations with Papua New Guinea.
Governor of the Bank, Hayashi Nobumitsu, made the undertaking when he met Prime Minister Hon. James Marape in Tokyo this week, stressing that he looked forward to PNG progressing outstanding work on the renewal of the Memorandum of Understanding between JBIC and the PNG Government so the bank can resume operations in PNG.
In 2009, JBIC signed an MoU with PNG’s Ministry of Public Enterprises for cooperation in the development of natural resources projects, including the PNG LNG project which led to the bank signing a loan agreement for the project. With new developments within the natural resources sector since 2009, JBIC has been discussing with Kumul Consolidated Holdings (KCH) to review the agreement. Discussions are still ongoing and the document not been finalised.
Prime Minister Marape, in return, gave the undertaking that the signing would be done by 16 September 2025 and tasked the minister responsible to oversee to the completion and signing of the MOU by said date.
PM Marape also used the opportunity of the meeting to highlight to JBIC reports by the International Monetary Fund and World Bank of PNG’s improved economic performance, with a 4.7 percent growth rate forecast for this year 2025.
He mentioned the presence of reputable Japanese companies in PNG and their continued business operations, while stressing the country’s strong position as a gas-producing nation over the next 20 years with three major LNG projects on the horizon. He also highlighted upcoming gold mines Wafi-Golpu and Frieda River projects.
Prime Minister Marape also stressed the potential and existing need for downstream processing in PNG in mining and gas, forestry, agriculture and fisheries; the abundant opportunities available in clean energy; and partnerships open with PNG’s State-owned enterprises.
The Governor said he would be dispatching a delegation to PNG to follow up on the discussions.
Additional Information on Japan Bank for International Cooperation
The Japan Bank for International Cooperation was established in 1999 through the merger of the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund, reorganized in 2008 as a policy-based financial institution of Japan, and as of today, wholly owned by the Government of Japan, and performs as a public financial institution and export credit agency.
JBIC plays a crucial role in supporting Japanese businesses abroad, securing vital resources for Japan, and promoting sustainable economic growth both domestically and international through its financial services and policy-based initiatives.
The main purpose of the institution is to promote economic cooperation between Japan and overseas countries by providing resources to foreign investments and by fostering international commerce. It has a major role in promoting Japanese exports and imports, and the country’s activities overseas.
JBIC’s main mission is to contribute to the sound development of Japan and the international economy and society by:
• Promoting Japanese exports, imports, and economic activities overseas, and ensuring Japan’s stable access to resources.
• Responding to disruptions in international finance and supporting environmental preservation efforts, including the global response to climate change.
The key activities of JBIC are:
• Providing loans, guarantees, and equity investments to Japanese companies and pro- jects overseas and supporting
• 2. Facilitating overseas business expansion for Japanese enterprises and promoting sustainable development and environmental conservation projects.
JBIC’s main areas of focus are:
• Infrastructure (transport, energy, water, etc,)
• National resources and energy security
• Environmental projects and green finance
• Industrial development and innovation
While its headquarters is in Tokyo, JBIC has overseas representative officers in major regions, including Asia, the Americas, the Middle East, and Africa.