Recent policy development in Japan -Human Resource Development

Recent policy development in Japan -Human Resource Development -New Infrastructure Fund: “JOIN” Shinichiro Otsubo, Ph. D. Director of Shipbuilding and Ship Machinery Division Maritime Bureau Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Japan-Norway maritime working meeting 3 June , 2015 Ministry of Land, Infrastructure, Transport and Tourism

1. Efforts of Japanese Government to Nurture the Human Resources for Marine Development 2. MLIT Infrastructure Fund: “JOIN” Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development 1

Basic Act on Ocean Policy (April, 2007) CHAPTER Ⅲ　Basic Measures ￮ The State, in order to promote the Ocean Industries and to strengthen the international competitiveness, shall take necessary measures with regard to the Ocean Industries to nurture and secure the human resources (abr. ). 　 （Article 24) CHAPTER Ⅳ　Headquarters for Ocean Policy ￮ The Headquarters shall be headed by the Director-General of the Headquarters for Ocean Policy, the post which shall be served as Prime Minister. (Article 32(1)) Prime Minister Shinzo Abe, in the meeting of the Headquarters for Ocean Policy (December, 2014) 2

Efforts of MLIT have started the following new policy measures in FY 2015 in order to increase offshore engineers. (1) (2) (3) Development of curricula and teaching materials for offshore engineering for Japanese university students and graduate students in close collaboration with industry and academia Development of the simulation system including Dynamic Positioning (DP) Establishment of a cooperation partnership with oversea companies, universities and organizations Design of offshore platforms ©MODEC STS operation 3

Development of the simulation system u u National Maritime Research Institute is carrying out a study of the simulation system to train university students. The interface of DP trainer shall be the same as what is used onboard offshore vessels and offshore units. 4

Establishment of overseas cooperation partnership To establish the system to encourage Japanese students to apply for an internship or studying abroad, JETRO commissioned by MLIT, is trying to contact to and discuss with overseas offshore related companies, universities and organizations. Overseas Cooperation Targets (draft) NOC/IOC Europe BP, Royal Dutch Shell, Statoil, Total North America Latin America /Asia Chevron, Petrobras, Conoco Phillips, Petronas Exxon Mobil Geophysical/ Petroleum Geo-Services, Schlumberger, Oilfield Service Western Geco Baker Hughes Engineering BW Offshore, Saipem, SBM Offshore, Technip Teekay Halliburton 5

Establishment of overseas cooperation partnership Overseas Cooperation Targets (draft) Europe North America Latin America /Asia Fabricator/ Aker Solutions Shipyard National Oilwell Varco Keppel Offshore & Marine, Sembcorp Marine Class DNV-GL ABS University Norwegian Univ. of Texas A&M Univ. , Science & Technology, The Univ. of Texas at Austin, Univ. of Bergen, Univ. of Houston Univ. of Stavanger, Subsea/ FOWT The Univ. of Aberdeen, Glasgow, Strathclyde, Edinburgh, Heriott-Watt Fred Olsen, FMC Technologies, Seajacks, Oceaneering Subsea 7 Univ. Federal do Rio de Janeiro, Univ. de Sao Paulo, Shanghai Jiao Tong Univ. , Singapore Univ. 6

1. Efforts of Japanese Government to Nurture the Human Resources for Marine Development 2. MLIT Infrastructure Fund: “JOIN” Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development 7

JOIN - Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development 1. What is JOIN ? 2. How does JOIN function? 3. JOIN’s focus to invest 4. How the funding by JOIN will work in the maritime sector? 5. Our Decision Making Process – How we become your Partner 6. Company Outline 8

1. What is JOIN? JOIN is one of the government-private sponsored fund in Japan, which specializes in overseas infrastructure investment. Ø JOIN provides equity financing to infrastructure projects worldwide. Ø JOIN works in collaboration with Japanese companies, banks, institutions (JICA, JBIC, NEXI, etc. ). & government. *The law to establish JOIN was adopted by the National Diet in Feb 2014. 9 *JOIN was established on 20 th October 2014.

2. How does JOIN function? JOIN* will back up the financing of projects by holding a considerable portion of the equity of SPC. This equity finance scheme can improve bankability of the project. Disposition of Shares (when the project has achieved its initial purpose, etc. ) JOIN Ø Capital: 10. 8 billion yen [as of April 2015] （J-Gov: 5. 4 billion yen, J-Companies: 5. 4 billion yen) Ø Investment Capacity: 75. 2 billion yen [FY 2015] (includ. guarantee 34 billion yen) Ø Negotiation Host Governments Ø Concession Ø Support Ø Technical support / transfer Ø H. R. development Ø Management Support J-Companies Ø Equity, etc. Ø Loan, etc. Infrastructure Projects（SPC） Ø Equity Master Plan / Developer JICA / JBIC / NEXI / J-Banks E. P. C. O&M Local Companies Ø Loan Local Banks 10

3. JOIN’s focus to invest High-speed railways Urban railways / transport system Ships / Offshore units Airport terminals Urban development Toll Roads Port terminals Logistics 11

4. How the funding by JOIN will work in the maritime sector? Scope of funding Projects, to be supported by JOIN, need to be relevant to overseas transport* or urban/regional development. * ”Transport” includes not only “traditional” sea transport such as the operation of LNG vessels and container vessels, but also offshore projects such as the operation of FPSO, FLNG, PSV, AHTS, shuttle tankers and Logistics Hub. Where the funding can go LNG vessel PSV FPSO - Owning/O&M SPC of the LNG Vessel - Owning/O&M SPC of the FPSO - Owning/O&M SPC of the PSV/AHTS Example of lease financing structure JBIC Other Japanese banks Owning/O&M SPC Debt Local Bank　etc. Japanese Investors Norwegian Investors JOIN Equity Charter contract & O&M contract Oil & Gas Company 13 12

6. Company Outline Company Name Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) Location 2 -2 -3 Marunouchi, Chiyoda-ku, Tokyo (Marunouchi-Nakadori Building, 9 F) Established October 20, 2014 President and CEO Takuma Hatano Contact TEL: +81 -3 -5293 -6700 (main line) / FAX: +81 -3 -3218 -5561 E-mail info@join-future. co. jp Website http: //www. join-future. co. jp/ (* Japanese Version Only) 13