Macquarie Capital and Maeda Corporation to launch infrastructure business JV in Japan

Macquarie Capital (Macquarie) and Maeda Corporation (Maeda) today announced the signing of a framework agreement to launch a joint venture collaborating on renewable power generation projects and broader infrastructure initiatives.

Maeda and Macquarie plan to launch the joint venture by the end of 2013 with an initial focus on the development of large-scale solar power generation projects (mega solar) in Japan.

Through this partnership, Maeda and Macquarie plan to leverage their respective expertise to cooperate on the design, investment, EPC (Engineering, Procurement and Construction), O&M (Operation and Maintenance), and divestiture of mega solar projects. For each project, the partners will invest in a special purpose company and raise financing, including project finance, from lenders.

The partners intend to develop a joint business in solar power projects and later expand it to include sectors such as wind power, road and airport concessions. Within the first three years of the launch, the company is targeting development of 300MW generation capacity, and total project size of JPY100 billion in renewable energy businesses.

In addition to the introduction of the Feed-in Tariff system for renewable energy in July 2012, various new initiatives for infrastructure development in Japan, including post-earthquake redevelopment, Public Private Partnership projects related to the 2020 Tokyo Olympic Games and concessions, have been introduced. These initiatives have led to an anticipated increase in private investment in these sectors, and the development of an infrastructure market in Japan similar to those existing in other markets.

Maeda has continued its effort to expand into renewable power generation and infrastructure development projects, to expand its profit base, as well as to further strengthen its core construction business. One of the three pillars of Maeda’s mid-term management plan is “de-contracting”. Maeda has already started building a track record in the renewable space by developing projects including the Yasuoka Offshore Wind Farm in Shimonoseki City, Yamaguchi Prefecture, and Goyozan Solar Power Generation Project in Ofunato City, Iwate Prefecture, as the main developer.

Macquarie is a global leader in infrastructure and resources financing, including renewable energy, and manages and through its Macquarie Infrastructure and Real Assets Division, operates more than 100 infrastructure projects (including airports, communication facilities, energy, renewable energy, toll roads and rail) globally.

About Maeda

Maeda Corporation is a comprehensive building and civil engineering contractor founded in Japan in 1919 and operating internationally since 1963. Over 3,700 employees have built a portfolio of civil engineering projects around the world, from dams, railways, subways, tunnels and subterranean works to highways and bridges, from water supply systems, to hydro, thermal, and nuclear power stations. Maeda also constructs schools, office buildings, hospitals and other public and commercial buildings and provides other related services.

With accumulated expertise and know-how in areas such as cost reduction, functional enhancement and risk avoidance, Maeda serves complete project needs, from planning and design through construction to maintenance.