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Overseas Contracts

FY 2016 Outline of Overseas Construction Contracts

This study covers overseas construction projects (worth 10 million yen or more per contract) contracted for in fiscal 2016 by the 50 member companies of the Overseas Construction Association of Japan, Inc. Figures exclude contracts between member companies (including those overseas) and between member companies based in Japan and their overseas subsidiaries (duplicates due to general contracting and subcontracting), and figures for joint-venture projects are reported according to the ratios of equity investments by the participating companies.

  • Overall trends in contracts
  • Trends among PC and OAC
  • Trends by region

Overall trends in contracts

The member companies concluded 1,694 overseas construction contracts in FY2016, for a total value of 1.5464 trillion yen. This represents decreases of 70 contracts and 136.1 billion yen in value from the previous fiscal year.

The value of contracts concluded with Parent Companies (PC) decreased by 204.8 billion yen to 395.2 billion yen. On the other hand, the value of contracts concluded with Overseas Affiliated Companies (OAC) increased by 68.8 billion yen to 1.1512 trillion yen.

By region, the value of contracts concluded in total was: Asia, 706.4 billion yen; Middle East and North Africa, 14.7 billion yen; Africa, 26.2 billion yen; North America, 648.4 billion yen; Central and South America, 33.9 billion yen; Western Europe, 8.6 billion yen; Eastern Europe, 39.1 billion yen; and Oceania, 69 billion yen.

By source of funding, self-funded contracts totaled 1.4449 trillion yen in value; contracts funded by grant aid, 58.1 billion yen; and those funded by ordinary yen loans, 43.4 billion yen. Overall contracts funded with ODA loans (total of grant aid and ordinary yen loans) decreased to 101.5 billion yen compared to the previous fiscal year (212 billion yen). There were no contracts funded either by the World Bank or the Asian Development Bank.

By type of client, contracts with public-sector clients totaled 344.5 billion yen in value and those with private-sector clients 1.2019 trillion yen, with the composition ratio standing at 22:78 (31:69 in the previous fiscal year).

By type of contract, construction contracts totaled 1.1033 trillion yen in value; design-build contracts, 439.6 billion yen; PM/CM contracts, 400 million yen; technical advice contracts, 500 million yen; and other contracts, 2.6 billion yen. There were no turnkey contracts for this fiscal year.

  FY2015 FY2016 Year-on-year change
Number Value (100 million yen)
(%)
Number Value (100 million yen)
(%)
Number Value (100 million yen)
(%)
PC 464 6,000
(35.7%)
405 3,952
(25.6%)
-59 -2,048
(-34.1%)
OAC 1,300 10,824
(64.3%)
1,289 11,512
(74.4%)
-11 688
(6.4%)
Total 1,764 16,825
(100.0%)
1,694 15,464
(100.0%)
-70
(-4.0%)
-1,361
(-8.1%)
Trends in Overseas Construction Contracts

PC and OAC Trends

A review of overall contracts from a PC/OAC point of view finds that contracts concluded with the PC totaled 405 in number and 395.2 billion yen in value, reflecting decreases of 59 in number and 204.8 billion yen in value from the previous fiscal year.

By region, the value of contracts concluded with the PC totaled: Asia, 282.3 billion yen; the Middle East and North Africa, 13.5 billion yen; Africa, 26.2 billion yen; North America, 24 billion yen; Central and South America, 24.6 billion yen; Western Europe, 3.4 billion yen; and Oceania, 21.2 billion yen. There were no contracts in Eastern Europe for this fiscal year.

On the other hand, contracts concluded with an OAC totaled 1,289 in number and 1.1512 trillion yen in value, chalking up a decrease of 11 in number but an increase of 68.8 billion yen in value from the previous fiscal year.

By region, the value of contracts concluded with an OAC totaled: Asia, 424.1 billion yen; the Middle East and North Africa, 1.3 billion yen; North America, 624.4 billion yen; Central and South America, 9.3 billion yen; Western Europe, 5.2 billion yen; Eastern Europe, 39.1 billion yen; and Oceania, 47.8 billion yen. No contracts were concluded with an OAC in Africa in this fiscal year.

Accordingly, a comparison between the values of contracts with the PC and those with an OAC showed a ratio of 26:74, reflecting a further decrease in the share of PC contracts and, on the other hand, an increase in the share of OAC contracts from the previous fiscal year (36:64).

Regional Trends

A review of overall contracts by region indicated that those in Asia totaled 1,208 in number and 706.4 billion yen in value, representing decreases of 67 in number and 155 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in Asia decreased by 124.7 billion yen to 150.5 billion yen, and those with private-sector clients in the region also decreased, registering a decrease of 30.3 billion yen to 555.9 billion yen.

Contracts in North America totaled 192 in number and 648.4 billion yen in value, representing increases of 14 in number and 149 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in North America decreased by 4.1 billion yen to 136.9 billion yen, while those with private-sector clients in the region jumped by 153.1 billion yen to 511.5 billion yen.

Contracts in the Middle East and North Africa totaled 18 in number and 14.7 billion yen in value, representing an increase of 8 in number, but a decrease of 51.8 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in the Middle East and North Africa declined by 53.8 billion yen to 11.2 billion yen; however, those with private-sector clients in the region increased by 2.1 billion yen to 3.6 billion yen.

Contracts in Western Europe totaled 33 in number and 8.6 billion yen in value, representing decreases of 3 in number and 2.4 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in Western Europe decreased by 0.1 billion yen to 0.1 billion yen, while those with private-sector clients in the region decreased by 2.3 billion yen to 8.5 billion yen.

Contracts in Eastern Europe totaled 52 in number and 39.1 billion yen in value, representing increases of 16 in number and 8.9 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in Eastern Europe was nil, while those with private-sector clients in the region increased by 8.9 billion yen to 39.1 billion yen.

Contracts in Central and South America totaled 116 in number and 33.9 billion yen in value, representing decreases of 17 in number and 30.6 billion yen in value from the previous fiscal year. By type of client, contracts with public-sector clients in Central and South America was nil, while those with private-sector clients in the region decreased by 27.9 billion yen to 33.9 billion yen.

Contracts in Africa totaled 17 in number and 26.2 billion yen in value, representing increases of 5 in number and 16.5 billion yen in value from the previous fiscal year. Contracts with public-sector clients in the region increased by 16.8 billion yen to 25.9 billion yen, while those with private-sector clients decreased by 0.2 billion yen to 0.4 billion yen.

Contracts in Oceania totaled 58 in number and 69 billion yen in value, representing an increase of 6 in number, but a decrease of 70.7 billion yen in value from the previous fiscal year. Contracts with public-sector clients in the region decreased by 13.8 billion yen to 20 billion yen, while those with private-sector clients decreased by 56.9 billion yen to 49 billion yen.

  FY2015 FY2016 Year-on-year change
Region Number Value (100 million yen) Number Value (100 million yen) Value (100 million yen)
Asia 1,275 8,614(51.2%) 1,208 7,064(45.7%) -1,550(-18.0%)
Middle East
North Africa
10 665(4.0%) 18 147(1.0%) -518(-77.9%))
Sub-Saharan Africa 12 97(0.6%) 17 262(1.7%) 165(170.1%)
N. America 178 4,994(29.7%) 192 6,484(41.9%) 1,490(29.8%)
C./S. America 133 645(3.8%) 116 339(2.2%) -306(-47.4%)
W. Europe 36 110(0.7%) 33 86(0.6%) -24(-21.8%)
E. Europe 68 302(1.8%) 52 391(2.5%) 89(29.5%)
Oceania 52 1,397(8.3%) 58 690(4.5%) -707(-50.6%)
Total 1,764 16,825(100.0%) 1,694 15,464(100.0%) -1,361(-8.1%)
Changes in Oversea Contract Amount by Region
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