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Business Schemes

In this section, we will introduce project participation schemes of major parties regarding overseas expressway projects, as well as JEXWAY's functions and roles.

Typical Business Scheme

JEXWAY aims to achieve execution of expressway projects based on utilization of private funding, and the utilization of PPP schemes is one of the pillars in achieving this goal.
PPP schemes establish SPC (Special Purpose Companies) with domestic and foreign partners; and procure financing by using cash flows generated from projects as collateral in order to execute projects.
JEXWAY invests in the SPC. Also, as a member of the SPC, JEXWAY manages the entire project (especially in the area of operation), while securing dividends made from investments in the SPC.

Functions of Stakeholders and Their Relations with JEXWAY

(1) SPC (Special Purpose Companies)

SPCs (Special Purpose Companies) are established for the purpose of executing specific projects. It will serve as the central body and execute the project while handling matters from financing to management.

(2) Partner Governments

Enters into contracts with SPC. Grants project licensing rights to the SPC. There are also cases in which the partner government will support SPC in accordance with the contract; for example, providing favorable treatments or bearing part of the project costs.

(3) Investors

They are the entities investing in the SPC. These may be Japanese companies or local companies. JEXWAY is also one of the entities that invest in the SPC.

(4) Financial Institutions

They are the source of financing for expressway construction costs. These may be government-sponsored banks, international organizations, or private-sector banks.

(5) Design and Construction Companies

Design and construction companies perform design and construction according to the contract with the SPC The SPC will examine how to utilize Japanese companies by selecting an appropriate contract method according to the technological difficulities involved.

(6) Operation & Maintenance Companies

Operation and Maintenance Companies conduct expressway maintenance, toll collection, etc. These may be local companies. JEXWAY (or the SPC) will conduct transferring of technology, etc., as needed; and perform appropriate operation management.

(7) Toll Road Users

The SPC collects toll from road users to compensate for invested funds and to conduct appropriate operation management.