• Kyodo

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The Diet on Friday enacted a law aimed at establishing a state-backed firm to help private-sector companies export infrastructure-building technologies related to roads, railways and other fields.

The bill was passed by the House of Councilors, following approval by the House of Representatives.

The law to support overseas traffic and urban development projects is part of Prime Minister Shinzo Abe’s goal to triple private-sector orders for infrastructural facilities in foreign countries to ¥30 trillion by 2020.

In fiscal 2014, which began on April 1, the government will invest some ¥100 billion to acquire more than half of the new state-backed company’s shares. The new entity will invest jointly with private companies in overseas projects in such areas as railways, expressways, ports, airports and housing units. It will also dispatch engineers.

The export of infrastructure-building technologies to emerging economies is regarded as a promising field for domestic firms, but in developing countries, such projects require firms to invest a large amount of funds over a long period of time.

Private companies had sought the government’s involvement in those projects, citing the difficulty of entering the field without state support.