Republic of Palau / NEXI Provides Overseas Investment Insurance to Support Operations at Palau International Airport Terminal

April 15, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Kazuhiko Bando) has decided to provide investment insurance for an international airport operation project carried out by Sojitz Corporation (“Sojitz”), Japan Airport Terminal Co., Ltd. (“Japan Airport Terminal”) and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (“JOIN”) in collaboration with the Palau government.

NEXI will offer coverage for political risk related to the project investment by Sojitz and Japan Airport Terminal, and risk for breach of the concession agreement concluded with the government. This will be the first time for NEXI to provide overseas investment insurance for a project in the Republic of Palau (“Palau”).

Sojitz, Japan Airport Terminal and JOIN have set up a joint venture together with the Palau government to manage operations at Palau International Airport. The project will entail not only renovating and expanding the existing international terminal to meet rising passenger numbers in Palau, but also administration and maintenance.

Palau International Airport is the country’s sole international airport, and in recent years, it has grown in importance as the number of tourists and other visitors to Palau continues to increase. The project will contribute to creating sustainable social and economic growth in Palau, a country whose core industry is tourism.

It is also in line with the Japanese government’s efforts toward the realization of “Free and Open Indo-Pacific”. Three government-affiliated financial institutions therefore will provide financial assistances for the project, including capital investments from Japan International Cooperation Agency (JICA) and JOIN, as well as overseas investment insurance by NEXI, to help development of infrastructure systems overseas by leveraging the private sector’s strength in its business expertise and networks.

As Japan’s policy-based financial institution, NEXI will continue to actively support Japanese companies in the expansion of their business internationally.

Insured Sojitz Corporation, Japan Airport Terminal Co., Ltd.
Tenor 20 years
Covered risk Political risk 95% (including risk for breach of contract)

Contact: Overseas Investment Insurance Underwriting Group, Underwriting Dept.
Tel: +81-(0)3-3512-7668