Infrastructure Talk in Japanese. Japan’s Participation in Ukraine’s Reconstruction

Infrastructure Talks are led by Dmytro Pavlenko, Tax & Legal Partner, Leader of Infrastructure Industry Group at Deloitte Ukraine.

Japan has become a key partner for Ukraine during the war. According to various estimates, Japan ranks as the third or fourth largest donor to Ukraine, with total financial aid amounting to approximately $10 billion since the start of the full-scale invasion.

The Japanese government—despite domestic political changes—has maintained a consistent stand against aggression and has significantly deepened its engagement with Ukraine. In 2024, JETRO (Japan External Trade Organization), the government agency responsible for promoting international trade, opened its office in Kyiv. In parallel, other state agencies such as JICA (Japan International Cooperation Agency) and JBIC (Japan Bank for International Cooperation) have expanded their involvement across a wide range of projects.

There is substantial potential for bilateral cooperation, particularly in energy, precision agriculture, machinery, robotics, and military technology. However, priority attention should perhaps be given to transport infrastructure and logistics.

JETRO regularly brings to Kyiv specialized Japanese companies interested in working in Ukraine; their representatives include infrastructure engineers, consultants, logistics specialists, and others.

Anyone familiar with Japan’s transportation system can attest that it is as if designed in the next century. From its extensive networks and advanced engineering and multimodal solutions to the world-renowned Shinkansen high-speed trains and operations punctual to the second—the system is truly impressive. Remarkably, much of this infrastructure was built from the ashes following World War II.

Infrastructure recovery is one of the core priorities for Ukraine’s reconstruction; therefore, Japan’s experience, engineers, technologies, equipment, materials, finances, and banking guarantees will be critically important. The foundation for this collaboration is already in place. In January 2024, Ukraine and Japan launched the JUPITeR platform, a unique ongoing institutional framework designed to actively involve Japanese businesses in rebuilding Ukraine’s infrastructure. This is a unique, ongoing institution for bilateral cooperation involving relevant ministries from both countries.

According to official sources, JICA is already providing assistance across multiple sectors:

• Railways: Under grant funding, Ukrzaliznytsia (Ukrainian Railways) has received 25,000 tons of rails to ensure uninterrupted logistics operations, along with heavy construction equipment. Additional 3,000 tons of high-quality Japanese-produced rails are planned for delivery.
• Roads: The State Recovery Agency has received modular bridges for rapid restoration of transport links at damaged sites. The agency has also recently acquired a large fleet of vehicles to inspect roads and bridges damaged during the conflict.
• Ports: The Ukrainian Sea Ports Authority (USPA) has been supplied with construction machinery to enhance rapid response capabilities.

JICA, together with private Japanese companies, is involved in numerous complex infrastructure projects worldwide. Japanese experts have a long-standing record of excellence in designing, constructing, and modernizing critical infrastructure, making their expertise extremely relevant for Ukraine’s reconstruction:

• Bridges: Japanese involvement was key in building all major bridges connecting the European and Asian sides of Istanbul. In Ukraine, the war has damaged or destroyed approximately 300–346 bridges, many of which are located on strategically important state highways.
• Seaports: JICA is currently participating in the large-scale Patimban Port Development project in the Jakarta metropolitan area (Indonesia). This project includes not only the construction of the port’s hydraulic facilities but also the development of connecting road networks within a densely built urban area. Such experience is particularly valuable for Ukraine’s major seaports, which face logistical bottlenecks, especially the Port of Odesa. Japanese engineers have contributed similarly at ports across East Africa and other regions worldwide.
• Airports: Kansai International Airport in Osaka, Japan, is a real engineering masterpiece, constructed on an artificial island. Kansai has two runways and is connected to the mainland by both a highway and a metro line. A nearby artificial island—constructed for Expo Osaka 2025—is also well-connected, featuring metro lines and multi-level highways. In Ukraine, Japan’s airspace engineering expertise has already been applied at Boryspil International Airport: the design was prepared by Japan Airport Consultants, Inc., and the construction of Terminal D was funded by JICA. Japan’s Ministry of Land, Infrastructure, Transport, and Tourism has pledged further support for Boryspil’s post-war restoration.

Beyond these projects, Japan offers expertise in high-speed rail systems, advanced construction equipment, robotics, cutting-edge urbanization technologies, and more.

We discussed these topics in detail with both Japanese and Ukrainian specialists. In the first part of this Infrastructure Talk, Dmytro Pavlenko posed questions regarding the prospects for collaboration to his vis-à-vis Ryo Tsujimoto, Financial Advisory Partner, International Development Lead, Future of Ukraine Asia Pacific/Japan Leader at Deloitte Japan.

Dmytro Pavlenko at Deloitte’s Japan office

Dmytro Pavlenko: Considering the advanced level of Japanese technologies and equipment, could you share your insights on how they can be effectively integrated into the development and reconstruction of Ukraine’s infrastructure?

From your perspective, what are the potential challenges and solutions in implementing these technologies in Ukraine?

Ryo Tsujimoto: The Japanese government, through agencies such as the Japan International Cooperation Agency (JICA), is already providing various forms of assistance to support Ukraine’s recovery and reconstruction efforts. If a ceasefire is achieved, Japan is expected to expand its direct support for the restoration of damaged infrastructure in various projects , utilizing both grant- and loan-based financial cooperation schemes. In such cases, many Japanese companies with advanced technologies would likely participate in these reconstruction projects. However, infrastructure restoration projects based on intergovernmental aid often focus primarily on the recovery of basic infrastructure and public facilities. These projects also tend to involve lengthy processes, from preliminary surveys and procurement to actual construction, which may pose significant challenges in terms of speed and flexibility.

To address these limitations, it is equally important to promote business-driven initiatives led by Japanese private companies, especially in sectors such as housing and other areas where business-to-business (B2B) collaboration can play a vital role. For example, Japanese companies can contribute to the reconstruction and development of Ukraine's infrastructure through innovative proposals and direct partnerships with Ukrainian counterparts. Governmental organizations such as JICA and the Ministry of Economy, Trade and Industry (METI) offer support schemes for feasibility studies (F/S) and pilot projects by Japanese companies. It is crucial for Ukrainian stakeholders to fully understand these programs and actively look for potential Japanese partners who can work with them. By doing so, Ukraine can attract Japanese companies with cutting-edge technologies to participate in its infrastructure projects, not only accelerating the recovery process but also ensuring the integration of advanced and sustainable solutions. In summary, a balanced approach that combines government-level support with proactive private sector involvement will be key to effectively integrating Japanese technologies and equipment into Ukraine's infrastructure development, while overcoming challenges related to project scale, speed, and sustainability.

Dmytro: In your opinion, what strategic initiatives should the Ukrainian government and local businesses undertake to attract foreign investment and establish robust partnerships in the infrastructure sector?

Ryo: Given that the war in Ukraine is ongoing, generally speaking, any company must be cautious about investing in the country. However, the impact of the conflict is limited to certain regions. Therefore, it is vital to clearly distinguish between areas heavily affected by the war and those that are relatively stable, and to provide investors with clear and concrete information on where and what types of business opportunities exist. For example, in the western and some central regions where the impact is limited, investment opportunities in logistics hubs, renewable energy, and urban development with a view toward post-conflict growth can be actively promoted. In the infrastructure sector, traditional government-led public procurement systems often pose barriers to entry for foreign companies, and concerns about transparency and corruption remain in the context of Ukraine. It is indispensable to establish transparent and fair procurement processes and systems, ideally conducted in English. Additionally, in areas such as urban development and renewable energy, where foreign direct investment (FDI) is generally an easier entry point than public procurement, clarifying FDI-related procedures and regulations and providing a one-stop consultation service are strategically important. These efforts will help build a system that can respond quickly to market expansion and reconstruction needs after a ceasefire, thereby earning the trust of international investors.

View of the Imperial Palace from Deloitte’s Tokyo office

Dmytro: Given the already implemented collaboration with JICA on international technical assistance projects, could you explain how you see the future priorities of these initiatives? Furthermore, do you see opportunities to expand these projects, particularly in Ukraine’s infrastructure sector?

Ryo: JICA has publicly stated that it is engaged in a wide range of support for Ukraine, ranging from emergency humanitarian assistance to infrastructure recovery and reconstruction. Currently, JICA is implementing cooperation projects in multiple fields, including the provision of equipment for the early restoration of railways, bridges, ports, and roads. Should the situation move toward a ceasefire, it is expected that further support in infrastructure will be expanded. The main priorities going forward are likely to be the restoration and rebuilding of transportation infrastructure, energy supply systems, and urban infrastructure, all of which have suffered severe damage due to the war. The Japanese government has a proven track record in post-war reconstruction and large-scale disaster recovery, and it is anticipated that Japan’s expertise and technology will be highly valuable for Ukraine as well.

Dmytro: Considering Japan's extensive experience in developing advanced infrastructure, what specific strategies or technologies do you think could be effectively applied to enhance Ukraine's infrastructure, particularly in sectors such as transportation, energy, and telecommunications?

Ryo: In transportation, Japan’s expertise in railway operation management systems, earthquake-resistant design, and smart ticketing using IC cards, developed through its Shinkansen and urban rail networks, can enhance safety and efficiency.

In the energy sector, introducing distributed energy supply systems such as microgrids, renewable energy solutions, high-efficiency storage technologies, and smart meters can help stabilize Ukraine’s electricity supply, which has been disrupted by the ongoing conflict.

In telecommunications, Japan’s resilient, redundant communication infrastructure, IoT-based infrastructure monitoring technologies, and the deployment of 5G networks can contribute to sustainable urban development and improve disaster response capabilities.

By collaborating with Japanese companies and support by subsidies by such organizations as METI and JICA, and tailoring these technologies to local needs, Ukraine can accelerate both infrastructure recovery and long-term development.

Dmytro: From your perspective, what examples of public-private partnerships can be implemented between the Ukrainian and Japanese stakeholders in Ukraine’s infrastructure sector?

Ryo: In Japan, a wide variety of PPP and PFI (Private Finance Initiative) models have been successful, including airport concessions, privatization of port container terminals, urban expressways maintenance projects, and the construction and operation of sports arenas using private capital. In urban development, there have been projects integrating transportation hubs with commercial and residential functions, such as the redevelopment around Shibuya Station in Tokyo.

Internationally, through Japanese ODA, Japan has supported PPP models in many developing countries in Southeast Asia, including port development and operation, urban railway construction and operation, PPP projects for airports and expressways, and capacity building for PPP-promoting government agencies.

In Ukraine, leveraging Japan’s experience with PPP and PFI could enable projects such as port and airport development, improving operational efficiency, maintenance of expressways and rail infrastructure, and redevelopment of sports arenas and urban centers, all utilizing private sector investment and expertise.

Expo 2025, Osaka, Japan

Dmytro: What should Ukrainian companies and organizations do to attract potential Japanese partners for project implementation in Ukraine?

Ryo: It is important for both governments to take an active leadership role in facilitating opportunities for private sector companies from both countries to meet and collaborate. For example, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is leading the JUPITeR (Japan-Ukraine Partnership for Innovative and Technology-driven Reconstruction) initiative, which introduces Japanese companies with strengths in areas such as smart cities, transportation infrastructure, and environmental technologies to Ukrainian partners. JUPITeR and similar public-private platforms can foster more points of contact and partnership opportunities at the business level.

Ukraine also has many outstanding startups in fields such as IT and agriculture etc; proactive promotion of matching with Japanese investors and companies through pitch events and other activities is also effective. Furthermore, creating an English-language directory of leading companies and startups in sectors such as IT, manufacturing, agriculture, transport, energy, and construction in Ukraine would be highly beneficial. For example, the Japan External Trade Organization (JETRO) has introduced 100 leading Ukrainian companies as potential business partners for Japanese firms seeking to operate in Ukraine in its publication “100 Prominent Ukrainian Companies”. This resource outlines each Ukrainian company's strengths and expectations for collaboration with Japanese enterprises. Similar information about Japanese enterprises would also be beneficial.

Dmytro: Japan went through a period of reconstruction, including the rebuilding of infrastructure, and achieved notable success. In this regard, could you provide some best practice examples that Ukraine can apply in implementing future infrastructure reconstruction projects?

Ryo: Following major disasters such as the Great Hanshin-Awaji Earthquake (1995), the Great East Japan Earthquake (2011), and the recent Noto Peninsula Earthquake (2024), Japan rapidly deployed temporary housing and supported the recovery of affected residents. These experiences have shown the importance of prefabricated and modular housing solutions, flexible designs tailored to community needs, and efficient cooperation among local governments, private companies, and community organizations. For Ukraine, rapid and flexible provision of housing for people displaced by conflict or disaster is fundamental to social stability and recovery. In terms of infrastructure, Japan’s approach has gone beyond simple restoration to pursue stronger and safer cities and regions, including rebuilding high-standard roads and earthquake-resistant bridges, as well as decentralized water and power systems. Encouraging community participation from the planning stage and considering post-reconstruction community building and job creation have enabled sustainable regional revitalization, not just merely repairing damaged infrastructure. Applying Japan’s experience and know-how in Ukraine could realize efficient and socially inclusive reconstruction.

(Read the continuation in the next issue of "Infrastructure Talk in Japanese" Part 2)

This interview contains the respondent's direct speech without curtailments, changes, corrections or retouching; it reflects the respondent’s subjective opinion and may not coincide with the position of Deloitte. Deloitte is not responsible for the information provided.

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