In response to Tokyo’s announcement, in March 2012, Fukushima released its own “Vision of Renewable Energy Promotion,” a sweeping plan that included the creation of the world’s largest floating wind power farm as its centerpiece. If the project is successful, Fukushima will be able to supply 40% of its electricity needs from renewable sources by 2020, and 100% by 2040.

To put these figures in perspective, green energy leader Germany is targeting a goal of 80% renewable supply by 2040. Fukushima is not starting from zero, however, and already generates renewable energy from hydro, geothermal and other sources. Since the release of its plan, a number of companies have also entered the photovoltaic and wind power fields.

If all current operators are able to meet their targets, it is estimated photovoltaic generation will produce 1.6 million kW annually, while wind power will account for around 0.5 million kW. These are remarkable figures, considering one nuclear plant is expected to generate around 1.0 million kW annually.

Researching foundation technologies

A key part of the project will involve a collaborative effort by the central and Fukushima governments to develop the world’s largest offshore wind farm. As an initial step, a smaller 2,000 kW wind station will be set up off the coast of Iwaki City by September 2013. This will be followed by two 230 m towers, scheduled to start operation by the summer of 2014.

Each of these larger stations is expected to produce around 7,000 kW, the highest output so far achieved (generally 2,000 kW for a land-based turbine). The floating body supporting the towers will have state-of-the-art vibration control technology, theoretically providing stability against even the giant waves occurring during a typhoon.

Over the next three years, various studies will be conducted to assess the farm’s generation efficiency and overall viability. Once it is green-lit, the project is likely to become a major employer. In total, the towers could require up to 20,000 individual parts, with the main pillars, nacelles (housing) and blades manufactured in Fukushima. Based on current estimates, this could add around 4,000 jobs locally.

Collaborating with the fishing industry

While studies of wind farms in other countries show they have a generally low environmental impact, the local fishing industry has raised concerns that noise and vibration from the field could frighten away stocks. This would have a significant economic effect in an area where many people rely on fishing for their livelihood.

To address these issues, Fukushima Prefecture began monitoring marine conditions in the area in 2012 and also set up a joint commission to involve the fishing industry as a constructive stakeholder in the commercialization of the project. Thanks to this ongoing dialogue, broad agreement was reached and work on the wind stations began in March 2013.

Pioneering a new green energy source

Despite its reputation as a developer of advanced environmental technologies, Japan has lagged behind in the area of renewable energy due to its focus on nuclear power. This has changed dramatically since the Daiichi accident. Of the many new sources currently being explored, offshore wind farms show great promise, particularly for an island nation such as Japan.

The idea of marine turbines is, of course, not completely new. However, the research now taking place to develop highly durable and stable floating structures puts the Fukushima project right at the cutting edge. Once it has built a solid track record, the project could potentially be used to create an ISO standard for other farms to model.

Offshore wind farms offer a more constant energy supply than land-based fields and with the availability of a reliable floating tower, large-scale operations become a reality. In this respect, the Fukushima project really is pioneering an emerging industry.

In the last decade, Vietnam has changed rapidly, with its economy showing significant continuous growth. As this has become apparent, investors from around the world have begun looking to the country for opportunities. However, with its unique culture and history, doing business in Vietnam presents particular challenges, leading companies to enlist the support of consultancies such as Brain Works.

Brain Works has been supporting Japanese companies throughout Asia since the 1990s and has recently begun working with food and craft companies from Hokkaido and Tokushima as they seek to establish themselves in Vietnam. The potential shown by the project has led Japan’s Ministry of Economy, Trade, and Industry (METI) to include it in its Cool Japan international business promotion program.

Building a foothold in Vietnam

While the project may appear to be an “instant success,” it is actually built on a solid foundation laid by Brain Works. After initially surveying the market, Brain Works selected the Phu My Hung district of Ho Chi Minh City, Vietnam’s largest city, as its base of operations. Until recently, Phu My Hung was swampland but rapid development has seen it transformed into a wealthy, upscale area and it is now called the Orient Beverly Hills.

Brain Works’ first move was to set up Japan Style Shop in a mall in Phu My Hung in December 2011. Japan Style Shop is actually a 600 square meter area containing around 100 individual outlets selling a wide selection of Japanese products, ranging from traditional arts and crafts to pop culture toys and other items.

To promote the area, Brain Works staged cultural events and other displays and introduced a point card system allowing customers to collect points for each item they buy. It also set up a Facebook page and published a free magazine to provide information about Japanese and Vietnamese culture.

Expanding Japan’s market appeal

The success of this first venture fully alerted Brain Works to the potential of the Vietnamese market, however, it also became keenly aware of the low profile of Japanese companies. This was particularly true in contrast to Korean and Chinese businesses, many of which have been pursuing aggressive image building strategies using television and other media.

While Japanese companies do take part in joint promotions, their visibility is still relatively low, despite strong consumer interest. To address this, Brain Works set up the Japanese Exhibition Center in November 2012, partnering with the companies from Hokkaido and Tokushima and METI. The center mainly focuses on promoting food and culture to create an enjoyable experience for visitors and build a positive image of Japan.

The opening of the exhibition center is well-timed with 2013 being the 30th anniversary of the establishment of diplomatic relations between Japan and Vietnam. Brain Works is hoping the center will become a focal point in deepening relations between the two countries. As well as benefiting companies operating in Vietnam, this should help to increase the flow of tourists traveling to Japan.

In the past, Japan has tended to rely on its established reputation when targeting markets in Asia and has not taken a strategic approach to analyzing consumer needs and expectations. Brain Works intends to changes this and is focused on developing new ways to support Japanese companies as they enter the Vietnamese and wider Southeast Asian market.

Joy’nt Factory is the brainchild of Shogo Tanaka, who opened the apparel and general merchandise shop in a Tokyo suburb in late 2012 as an outlet for “social contribution products.” This is not a charity in the conventional sense though; Tanaka has proven that with the right approach a business can be both profitable and a net social contributor.

Businesses like Joy’nt Factory are still a rarity in Japan and Tanaka himself had not heard of the idea until four years ago when he came across TOMS, an American cause-brand shoe and eyewear company. TOMS operates a one for one policy, donating one item to children in need for every item purchased.

Tanaka admits the discovery was a wake-up call. Despite working at an advertising agency for over 10 years after graduating university, it was the first time he had encountered this type of business model. Not willing to let the chance go by, Tanaka decided to resign from the agency and pursue his dream of opening his own social contribution business.

Putting principles into action

Joy’nt Factory currently retails around 200 items, covering cause-brand and fair trade products, as well as reconstruction support products that contribute to job creation and industry promotion in the area affected by the Great East Japan Earthquake.

One such item is “people and environmentally friendly chopsticks,” made using wood from forest thinning in the hard-hit prefectures of Iwate, Miyagi and Fukushima. The chopstick maker itself was also looking for a way to contribute to economic recovery in the region and decided to procure materials for a new line from these prefectures.

Pre-shipment inspection of the chopsticks is also outsourced to facilities for the disabled to support social participation, while leftover offcuts from the manufacturing process go into a wood-fired boiler that generates heat to dry new chopsticks.

Making social contribution effortless

Joy’nt Factory has now been open for around six months and Tanaka is happy to see name recognition gradually building throughout Japan, with customers visiting from around the country (on-line shopping available). Tanaka believes even everyday shopping can make a valuable social contribution with the right system; it is basically second nature so there is no pressure and the habit is also easy to maintain.

As he told Rising Sun: “Society is changed by individual choices and actions. I hope as many people as possible will take an interest in this kind of lifestyle and try out this new way of shopping. That is my greatest motivation for opening Joy’nt Factory.”

LED lighting creates a solemn atmosphere that effectively expresses the world of Shogon* represented by Chuson-ji’s Konjikido or Golden Hall, as well as the Buddha statues located in the Shin-Oido, the concrete outer structure protecting the Konjikido. Toshiba has also installed a 5 kW photovoltaic system to show its appreciation of the philosophy of living in harmony with nature embodied by Chuson-ji.

To preserve this important piece of Japan’s cultural heritage, the Toshiba Group drew on all of its lighting technologies, from research and design to manufacturing and construction. This included verifying colors and shadings and even how the light sources are viewed, so as not to detract from the power and artistic qualities of the structure.

Thanks to these efforts, Toshiba was able to develop a system that provides appropriate illumination close to natural light. This ensures the best color temperature to enhance the dramatic impact of the displays, while also saving energy. The system is designed to integrate smoothly and has no visible impact on the temple’s scenic beauty. With this donation, Toshiba is hoping to increase the number of visitors to Iwate, and Tohoku region, as it works to rebuild following the disastrous earthquake. The technology also has many other potential applications and Toshiba has been asked to develop a LED lighting system for the Louvre Museum in France.

* Term referring to the display or decoration of Buddhist images or temple interiors to enhance their beauty and solemnity. Also describes the decorations themselves.

News Release http://www.toshiba.co.jp/about/press/2012_09/pr1201.htm

The proposal was adopted by METI and from September 2012, Rakuten Ichiba and 35 merchants conducted test marketing in Indonesia. This primarily involved Rakuten creating a special Cool Japan area within a local e-commerce Website called Benjamin Online. The trial was mainly set up to help identify future e-commerce opportunities and in the first year, it concentrated on locating potential problems and examining feasibility.

[+]ZOOM

Distribution and payment systems are key issues for entering the Indonesian market and the companies are attempting to build a system that offers one-stop functionality. In addition to establishing a presence through Belanja, the group also staged “real-world” marketing activities, including hosting events at local department stores.

Project background

The population of Indonesia is increasing rapidly and is said to be about twice that of Japan. The growth of the middle class is particularly remarkable. Internet usage is also increasing throughout the country. In addition, many Indonesians are known to be Japanophiles and the test marketing revealed Japanese products have a well-established reputation for quality and safety. According to a recent survey, Japan is also the number one travel destination for Indonesians.

Based on initial results, Rakuten is convinced of the potential for e-commerce in Indonesia. The Cool Japan trial was also successful in identifying possible problems, which Rakuten plans to address in fiscal 2013, as it steps up its strategy to cultivate the market. The 35 companies involved in the project are highly motivated and with their varied range of products, including the most popular categories of food and fashion (apparel) items, Rakuten is anticipating strong growth.

Rakuten also checked for any negative impression created by the Great East Japan Earthquake but, interestingly, discovered that as Indonesia also experiences frequent quakes, people actually had a positive, forward-looking attitude to the disaster. Two of the participating merchants are headquartered in Sendai, one of the affected areas, and hope to project the energy driving recovery efforts in their attempt to enter the Indonesian market.

Future prospects

Starting with its Japan site, Rakuten has sought to progressively integrate a range of best practices drawn from the ideas and ingenuity of participant companies. It intends to continue with this customization to develop sites that best meet the needs of different customers and national markets.

While the current project targets Indonesia, the strongest feature of the Internet is that it obviously has no international boundaries, and Rakuten plans to expand its marketing efforts globally. As it does this, the company plans to maintain its long-held philosophy of growing together with participating vendors.

With its various marketplaces, Rakuten provides an opportunity for businesses with an innovative mindset, which in turn provide it with a way to pursue growth. This approach also encourages local revitalization and motivates Japanese companies to search for breakthrough products and services. Rakuten’s initiatives also help to provide Indonesian people with a better and more convenient lifestyle.

A key facet of the rapid economic growth experienced by Japan starting in the 1950s was the country’s ability to rapidly increase production of high-quality crude steel. The local iron and steel industry was also able to sustain this wave of growth by developing energy-efficient technologies to overcome the challenges of the first oil shock in the early 1970s.

The industry’s progress during this period has become a model for countries experiencing similar rapid development, and Japan has been working to transfer its knowhow to countries such as China and more recently India. At first glance, it may appear that Japan is sacrificing its working power for nothing. However, much has changed in the last decade; most notably the need to urgently address the 3Es (1. energy security, 2. economic development and 3. environmental challenges) at the same time.

As a staff member of the Japan Iron and Steel Federation explained to Rising Sun, “Global warming is a universal issue and we would like to offer our technology to countries that have the ability to save energy. We want to contribute to the solution of issues.”

He also noted that, “When it comes to transferring technologies, dialogue and sharing of appropriate information based on past experience with partner countries is an important first step. Building up discussions removes barriers against transferring technologies.” This approach underpins industry gatherings such as the conference for advanced technology sharing held with China since 2005 and a similar event for exchange with India launched in 2011.

Providing advanced eco solutions

According to analyses carried out by the International Energy Agency and Research Institute of Innovative Technology for the Earth, the Japanese iron and steel industry is the world’s most energy-efficient. In its efforts to develop further environmentally friendly technologies, the industry focuses on three “eco” areas:

• 1. Eco process: improving all aspects of the steel manufacturing process
• 2. Eco solution: reducing international CO₂ emissions by promoting new technology
• 3. Eco product: reducing CO₂ emissions by improving products and by-products

Japanese companies have achieved considerable success in all three areas but this article focuses on point two, introducing various energy-saving solutions to partner companies around the world.

To improve the effectiveness of exchange with China, in 2005, the Japanese iron and steel industry organized the first Japan-China Steel Industries Conference on Exchange of Advanced Technologies on Environmental Preservation and Energy-Saving. The initial meeting was successful and it is now held annually with the support of various experts from around Japan.

Building on this initiative, the industry next launched a public and private collaborative meeting between the Indian and Japanese iron and steel industries in 2011. The event was staged by a PPP (public and private partnership) consisting of Japan’s Ministry of Economy, Trade and Industry and the Japan Iron and Steel Federation with India’s Ministry of Steel and Bureau of Energy Efficiency and Indian steel makers.

India is currently experiencing significant economic growth and crude steel production is expected to expand by up to five to six-fold by 2050. The main theme of this conference was thus to discuss the most suitable energy-saving and environmental protection technologies to help India achieve sustainable growth. The first meeting was again successful and it was repeated in 2012. A third round took place in Tokyo in February 2013.

Ensuring countries receive customized knowledge

As useful tools for helping emerging countries, Japan has sourced 136 relevant technologies from around the world and then adapted those that best fit the needs of the Indian industry to its unique conditions.

In addition, Japan is sharing the concept of self-improvement with Indian steel makers after the installation of energy-saving technologies. It is also willing to provide business opportunities to enhance energy efficiency. Identification of new areas for cooperation will be made possible by ongoing sector-specific discussions by experts from both countries.

As noted above by the JISF staff member, this type of PPP technology-based initiative is the key to finding practical solutions for 3E issues, including global warming. With the need to address global warming becoming increasingly vital, the participants certainly have all the motivation they require to succeed.

JDI was launched in April 2012 when Sony Mobile Display, Toshiba Mobile Display and Hitachi Displays merged to form a new operation of advanced small- and medium-sized displays. JDI is led by President Shuichi Otsuka, who has been the driving force behind the creation of the company’s world-leading new technologies.

Creating a foundation for innovation

Each of the three companies contributed very different skills and knowledge and it was by successfully integrating these specializations that JDI has been able to develop its world-first Innovation Vehicles. The new products reflect the synergy created by the combination of Sony’s power-saving knowhow, Hitachi’s liquid crystal screen technologies for clear, high-contrast images and Toshiba’s high-resolution panel technologies.

This impressive technological integration has been made possible by a deeper level of cooperation between personnel from the partner companies. As hoped, these bonds have been greatly strengthened by working collaboratively on the Innovation Vehicle project, helping to accelerate development.

The next challenge for JDI is to take its prototypes to the mass production stage – something it plans to accomplish within the next year. When these products become available, they are expected to redefine both the smartphone and wider high-definition display market.

Website： http://www.j-display.com/english/index.html

As recovery work moves forward following the Great East Japan Earthquake, it has become clear that for long-term success this effort will require more than new infrastructure and business opportunities. While the massive physical damage to the Tohoku region is easy to see, many residents, particularly children, have also suffered less visible psychological stress and require help to rebuild their confidence and aspirations for the future.

FESJ is taking an innovative approach to this very real need by using music to inspire renewed hope and pride in the children of Soma City, one of the areas hardest hit by the quake. Its Soma Children’s Orchestra Project (SCO) is part of a world-first effort to use music to support recovery in a disaster area and already includes half of the city’s elementary schools.

El Sistema, “the system” in Spanish, originally began in Venezuela in 1975 with the goal of providing children from disadvantaged backgrounds with access to free musical education. By studying music, the children also learn social skills and discipline and the ability to work toward their own goals. The program has had a positive impact on many children, often turning them away from a life of crime and violence. These efforts have earned praise from organizations such as UNESCO.

El Sistema in Japan

As of September 2012, El Sistema has groups in more than 30 countries and regions, including FESJ, launched in early 2012 by Mr. Yutaka Kikugawa. Mr. Kikugawa had worked internationally for UNICEF before starting work at the Japan Committee for UNICEF (JCU) in 2007. When the Tohoku earthquake struck in 2011, JCU began to provide support for children and their care givers in almost all the affected areas in the Tohoku region including Soma City.

The moment of inspiration that led to the creation of Friends of El Sistema Japan came when Mr. Kikugawa was talking to a sixth grade elementary school student. During the conversation, he realized that realistically full recovery would take some 20 to 30 years, or basically the rest of his life. He later began to think more deeply about how any recovery program should not just be temporary; success would depend on providing long-term support for particularly children.

Around this time, Mr. Kikugawa had the chance to meet Mr. Fergus McWilliam, a horn player from Scotland who is also one of the executives of his country’s El Sistema organization as well as a member of the Berlin Philharmonic Orchestra, which is coincidentally itself a UNICEF Goodwill Ambassador. Mr. McWilliam suggested trying to set up an El Sistema group in Tohoku and after some reflection, Mr. Kikugawa made the decision to leave JCU and devote himself to El Sistema activities.

One of his first moves was to propose the idea to Soma’s school board and mayor. Fortunately, the city has strong cultural and folk music traditions and the plan received widespread support from both officials and the local community. With this backing, Mr. Kikugawa established FESJ in March 2012.

Soma project

While the Soma El Sistema Project uses music as a medium, its goal is to establish a sustainable system rooted in the area. This system values personal identity built from residents’ love for their local area. All children take part as an after-school club activity, with the music teachers coming from the city’s schools and wider community. The group relies on donations to purchase instruments from a store in Soma and provide the teachers with some compensation.

Mr. Kikugawa explained his motivation in a recent interview with Rising Sun: “Music has a universal power. But even if you have an instrument in your hand, it doesn’t mean you can play well unless you practice. El Sistema nurtures harmony and the spirit of mutual assistance by practicing together. We don’t have a fixed approach, which means we can create our own original method. We hope to be able to share our insights with the world one day. This is also one of our future goals.”

At present, five of Soma’s 10 elementary schools are involved in the El Sistema Project and the children are preparing to stage their first public performance in early 2013. If you would like to donate either money and/or musical instruments to support this important initiative, please visit the Friends of El Sistema Japan Web site (in English).

El Sistema Japan Web site http://www.elsistemajapan.org/top_e.html

Friends of El Sistema Japan PSA (YouTube) http://www.youtube.com/watch?v=oEjsAWDuCKs

While it will take some time to unlock Euglena’s full potential, Mitsuru Izumo, its main supporter and president of Euglena Co., Ltd., has already had success using it as foodstuff to support recovery following the Great East Japan earthquake. The algae contain an impressive 59 nutritional components, including vitamins, minerals, amino acids, carotenoids and unsaturated fatty acids, indicating why they are currently receiving attention as a potential solution to world hunger issues.

Mr. Mitsuru Izumo

Euglena powder

If the idea of eating algae does not seem so appealing, Mr. Izumo points out that they are nutritious and could provide a solution to nutrition problems around the world. In a recent trial held in conjunction with a fashionable shopping area in Jiyugaoka, Tokyo, sweets and other dishes made with Euglena were a definite success with visitors. The algae’s potential extends far beyond desserts, however; their ability to absorb CO₂ could make them an important tool for combating global warming.

Product Line-up

A Euglena Farm food van offers
Euglena latte in Jiyugaoka.

These possibilities have already attracted the support of major Japanese companies such as Itochu Corporation. Rising Sun recently visited Mr. Izumo to find out more about Euglena and whether this simple organism can really deliver on the growing expectations surrounding it.

Micro-algae power

Mr. Izumo notes that he started on the path leading to the creation of his successful venture business Euglena Co., Ltd. when he visited Bangladesh as an 18 year old university student. Always interested in social issues, before leaving, he purchased a large supply of nutritional food bars to give to Bangladeshi children, believing many would be malnourished. However, he discovered people ate three times a day but most meals were curry without many vegetables and were not nutritionally balanced.

Some years after his experience in Bangladesh, Mr. Izumo encountered Euglena and was fascinated by its possibilities. This single-celled microscopic algae offered a surprisingly wide range of nutritional elements with both animal and plant characteristics. Yet there was one central issue with this potential solution to world food problems: researchers had been unable to develop a method for culturing them in sufficient volume outside.

Turning point

While he was researching Euglena algae, Mr. Izumo set up Euglena Co., Ltd. in August 2005. The company was not an immediate success. Just a few months later, after investing a significant amount of time and money, Mr. Izumo was faced with the prospect of winding up the business. Fortunately, his determination attracted the attention of other researchers who agreed to collaborate on development and by December, the company had achieved a world first by culturing Euglena using an outdoor system.

After this initial breakthrough, the next step was to set up a commercial operation. Again, Mr. Izumo ran into problems due to his company’s lack of a business track record. And again, he found unexpected support, this time in the form of Itochu, one of Japan’s largest general trading companies and the owner of an extensive international network. Itochu had picked up on the industry buzz surrounding Mr. Izumo’s work and was interested in the major possibilities it offered.

Once Itochu was on board, this boosted Euglena’s credibility and various other large companies contacted Mr. Izumo looking to capitalize on his success. He is also currently cooperating with the Japanese government to utilize his experience of creating a new market based on the algae.

R&D of Euglena

Disaster recovery

Euglena have already shown their promise as a nutritious food in Japan by supporting recovery following the Great East Japan Earthquake. After the disaster, food was naturally very limited and while basics such as rice and bread products were available, fresh vegetables and fish, etc. were suddenly in short supply.

This soon became a problem, with particularly elderly people suffering inflammation of the mouth and other related problems due to nutritional deficiencies. Once he heard about this, Mr. Izumo quickly sent Euglena cookies to raise nutritional intake. When dieticians working with the elderly reported the cookies were a success, he next developed hardtack.

Future vision

The level of interest in this simple organism may seem surprising but in addition to the cases above, Euglena has the potential to be used in a variety of other applications. For example, aircraft and other vehicles could be run using biofuel produced from the algae and there is also the possibility of purifying water at sewage treatment facilities. Euglena can also be used in animal feed and Mr. Izumo plans to experiment with using it as fish food.

Mr. Izumo is currently working on a program to demonstrate the wider commercial viability of Euglena by 2018. At present, edible Euglena is being grown at a research facility on Ishigaki Island in Okinawa, where the warm climate offers ideal growing conditions. Data from the cultivation operation is analyzed at the company’s Tokyo laboratory or new Ishigaki laboratory, which was recently set up to accelerate research.

With the algae showing promise in so many diverse areas, Mr. Izumo initially plans to focus on using this unique technology to support growth in developing countries in Asia. The key to effectively utilizing Euglena is advanced fermentation technology for microorganisms, an area of Japanese specialty. Japan already has an international reputation for its advanced fermentation processes for lactic acid and bacillus coils.

In his efforts to contribute to the economies of Japan’s regional neighbors, Mr. Izumo has adopted three key words: shinkansen (Japanese bullet train, a symbol of safety and accuracy), animation and, of course, Euglena. For Mr. Izumo, these words represent the spirit of Japanese innovation and he is hoping this image will guide him to further success with his own unique development.

On November 9, Shinsei Bank, Limited announced that it intends to provide financing for the construction of lodging facilities in Miyagi Prefecture, an area severely damaged by the Great East Japan Earthquake and tsunami. Shinsei, local lender The 77 Bank and The Bank of Yokohama are jointly extending a total of 1.7 billion yen in non-recourse loans to the Tohoku Reconstruction Fund 2 LLC, which will manage construction of the hotels.

Most of Miyagi’s lodging facilities were either swept away or damaged in the disaster and a shortage of accommodation for workers has become a key issue, leading to delays in the reconstruction process. To address this, two hotels offering around 1,000 rooms will initially be built in the prefecture’s costal area. However, with reconstruction likely to take many years, at least 30,000 rooms will eventually be required.

The two facilities, Value The Hotel Sanbongi and Value The Hotel Yamoto, will be constructed by Daiwa House Industry Co., Ltd. , and are expected to open by June 2013 in Osaki and Higashi Matsushima Cities, respectively. These locations have been selected to provide easy access to the devastated areas and highways.

Multi-stage development project

The Hotel Sanbongi is designed to provide a base for workers involved in the wider post-disaster reconstruction process. The existing onsen (hot spring) next to the hotel will also be used as a shared facility. There are plans to rent rooms in the hotel as private offices and in the future, to make empty space available as indoor workshop or material storage areas.

The Hotel Yamoto is situated close to the devastated area and is expected to provide an ideal location for workers. Commercial facilities and housing for disaster survivors will also be built at the same site, helping to meet the huge demand for services from people affected by the reconstruction project.

Both hotels will also accommodate tourists, who are naturally very important for revitalizing the prefecture. To attract guests, the facilities plan to offer local cuisine made with fresh ingredients and other promotions. The money spent by those visiting the area is expected to provide a significant boost to the local economy.

Innovative financing sets example for future

The method of financing this project – using non-recourse loans – also offers lessons for the recovery process going forward. In contrast to standard corporate bank loans, non-recourse loans depend solely on the value of collateral and its ability to produce cashflows, rather than the borrower’s creditworthiness.

Not only is the borrower exempt from personally liability for repayment but the collateral is also ring-fenced from other creditors. By limiting the financial risks for borrowers, lenders, and investors in this way, non-recourse loans make it possible to raise greater sums of money for a project.

A pioneer of non-recourse finance in Japan, Shinsei hopes this transaction will set a precedent that will encourage other private sector lenders and investors to use non-recourse loans to provide the financing that is crucial to driving the recovery process forward.

More information http://www.shinseibank.com/investors/en/common/news/pdf/pdf2012/121109fukko_project_e.pdf