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.

We continue our conversation with Japanese and Ukrainian experts on the prospects for cooperation between Japan and Ukraine.

In the first part of Infrastructure Talk in Japanese, we discussed how the Land of the Rising Sun emerged as one of Ukraine’s key donors during the war. Japan has focused its support on financial assistance, technologies, and infrastructure rehabilitation, operating through government agencies such as JICA, JETRO, and others.

The article sparked great interest among Ukrainian companies across the sector. We have received several inquiries regarding cooperation with Japanese companies. This is especially encouraging as it directly aligns with the purpose of the project: delivering practical contributions to Ukraine’s reconstruction.

In the second part of this series, we will explore Japanese approaches to disaster planning and recovery, while also seeking practical advice on collaborating with Japanese partners.

Since our first article was published, cooperation between Ukraine and Japan in the infrastructure sector has grown significantly. In February 2026, Kyiv hosted a major event—another meeting of the JUPITeR platform—co-organized by Deloitte Ukraine. The Ministry of Development and JICA agreed on cooperation priorities for 2026, focusing on strengthening community resilience and preparing new grant projects as the key areas for the recovery of the energy and transport sectors.

Several companies looking to enter the Ukrainian market recently visited the country, including Daiwa House, Fujita Corporation, NIPPON KOEI, and NX Group, among others. Some of the participants contributed their comments to this article.

In May, JICA and the Government of Ukraine signed a ¥6.2 billion grant agreement to implement of the Programme for Emergency Recovery (Phase 5), one of the largest packages of Japanese assistance for Ukraine’s recovery in 2026. The funding will be used to procure equipment for transport and municipal infrastructure, healthcare, agribusiness, and humanitarian demining, as well as to support public broadcasting.

Innovative reconstruction through the UNDP is a distinct area of cooperation, which supplements JICA programs by focusing on the implementation of modern technologies and PPP mechanisms. The Government of Japan and the UNDP have signed an accord expanding their partnership beyond traditional grant assistance. The agreement facilitates the use of Japanese technologies, the development of public-private partnerships, and support for the JUPITeR platform as a key mechanism for implementing infrastructure projects.

Mobilizing the private sector is a vital aspect of this cooperation, aimed at amplifying government assistance through more extensive participation from Japanese business. In June, our governments adopted the Japan-Ukraine Action Plan on cooperation in reconstruction, setting out mechanisms for involving Japanese companies in reconstruction projects, encouraging private investment, and advancing economic partnership. This move lays the institutional foundation for the transition from the government-to-government cooperation to launching joint commercial initiatives.

Over to the experts.

Sergiy Korsunsky, Ambassador Extraordinary and Plenipotentiary of Ukraine to Japan (2020–2024)

What Japanese expertise and best practices should Ukraine consider adopting for its reconstruction?

Japan has a unique experience in recovering after large-scale devastation. Over the course of a century—spanning from the massive 1923 earthquake that destroyed Tokyo and Yokohama to ruin to the tsunami-induced nuclear power plant accident in 2011—Japan has developed advanced approaches, technologies, and equipment for infrastructure rehabilitation.

Japanese approaches to reconstruction are rooted in planning with a decades-long horizon, procuring materials that enable infrastructure to function without major overhauls for as long as possible, alongside establishing maintenance systems to keep facilities in peak condition.

While such projects are not the cheapest upfront, they undoubtedly pay off in the long run. The Japanese know firsthand that rebuilding a port costs far more than building it properly once to last for decades. Also, they place immense focus on developing the workforce for these projects. No blueprint becomes a reality without qualified engineers; this is why education became one of the key pillars of Japan’s post-war recovery strategy after World War II.

Shigeru Kohno, Resident Representative of JETRO in Ukraine

What can the Ukrainian side fuel Japan’s interest in expanding bilateral ties? How can we incentivize Japanese companies to more actively participate in Ukraine’s reconstruction?

I know that many Japanese companies, equipped with world-class know-how and technologies in the infrastructure sector are interested in doing business in Ukraine. However, drawing from my experience at Itochu Corporation, I think it is not just about sourcing for Japanese companies and technologies that could be involved and deployed in the reconstruction of Ukraine; it is about urging the Japanese government to shift its perspective, establish robust financial frameworks, and pave the way for Japanese banking institutions—including JBIC and other Japanese megabanks—to cooperate with Ukraine. This would enable Japanese companies to compete more effectively alongside other international players, such as the EU, the USA, Turkey, South Korea, in the Ukrainian market.

As you mentioned above, JICA is engaged in supplying equipment for debris removal, demining, and the rehabilitation of damaged energy facilities, with its financial aid reaching ¥100 billion (equivalent to approximately $670 million). However, its activity within grant support is currently limited to equipment supply, which does not require civil engineering work.

Due to strict restrictions on travel to Ukraine for citizens of Japan, introduced by the Japanese government, Japanese companies face considerable difficulties in preparing for potential projects and implementing large-scale infrastructure projects requiring civil engineering works.

To intensify large-scale infrastructure projects requiring substantial civil engineering works, it is necessary to seriously consider easing the current travel restrictions to Ukraine for Japanese citizens and offering financial tools such as concessional yen loans or structured buyer’s credits to Japanese companies. At the same time, the potential of a broader participation of JBIC and Japanese megabanks in projects implemented in Ukraine remains largely untapped. Today, cooperation with JBIC is channeled through the Black Sea Trade and Development Bank (BSTDB). By comparison, the South Korean government and infrastructure companies are already seeking ways to participate in Ukrainian projects.

Tsukasa Hattori, representative of the Infrastructure Development Institute, Japan

What sets Japan apart, and how can this country and its experts participate in the reconstruction of Ukraine’s transport infrastructure?

Tsukasa Hattori at Independence Square (Maidan Nezalezhnosti) in Kyiv

Japan’s history, geography, and infrastructure

Japan is often compared to a phoenix. More than three million Japanese people had lost their lives by the time World War II ended in 1945. However, Japan’s post-war reconstruction was so rapid that in the 1980s it ranked second by GDP. The Shinkansen bullet train, initially capable of reaching speeds of 210 km/h, was first put into service between Tokyo and Osaka in 1964—the year the Tokyo Olympics—as a symbol of the country’s successful reconstruction. Today, its speed reaches up to 300 km/h. A 480-kilometre-long national expressway running through highly developed areas between Tokyo and Kobe was also completed in 1969. Japan has repeatedly experienced devastating natural disasters, yet it has always bounced back.

One reason Japan is compared to a phoenix is its commitment to and collaborative drive for rapid reconstruction, while another lies in its planning to “build back better,” a capability forged through many crises. I believe that Japan’s experience will contribute to the reconstruction of Ukraine.

To better understand the country’s specifics, let us dive into its natural environment.

Japan is an island nation made up of four major islands located off the eastern coast of the Asian continent. Its land area is roughly the same as that of Germany, and its population stands at over 120 million. In simple terms, Japan’s geography is challenging. Sharp mountain ranges extend from north to south across the archipelago like a backbone, making the country prone to frequent earthquakes and vulnerable to the destructive effects of heavy rains and typhoons. Many major cities are built on geologically weak ground, while around 60% of the country consists of cold, snowy regions.

Figure. Japan’s geographical location

Japan lies within the Pacific Ring of Fire, causing the country to experience high levels of seismic activity. To protect the lives and property of its citizens from natural disasters, Japan invests heavily in disaster risk reduction and protective infrastructure. At the same time, it actively pursues public sector projects.

When it comes to infrastructure development, a high level of safety is required to ensure resilience against earthquakes and typhoons, while quality control remains a top priority in construction projects.

I would like to present two examples of challenges Japan has recently faced.

The Noto Peninsula earthquake in 2024

The earthquake struck on the eve of New Year 2024, triggering massive landslides that damaged roads, bridges, and tunnels, hampering emergency response efforts. Furthermore, a large-scale fire broke out in Wajima’s historic market district, causing catastrophic damage to the area. Water supply systems failed across the region, necessitating prolonged water distribution operations using water trucks. With the main road to the peninsula severed, Self-Defense Forces and emergency supplies were deployed by Self-Defense Forces hovercraft immediately after the disaster struck.

As such, emergency response and disaster risk reduction are indispensable to infrastructure management in Japan.

Photo: Landslide near the entrance to the Osaka Tunnel on National Route 249

Photo: Collapsed embankment near the abutment of Noto Ohashi Bridge on the Noto Satoyama Highway

Efforts to maintain the integrity of aging infrastructure

The facilities built during the period of rapid economic growth are now 50 years old, requiring urgent maintenance and rehabilitation. Accidents have occurred due to inadequate measures, and inspections, repairs, and upgrades are now required. Future structures will be designed with longevity in mind.

Sources: Ministry of Land, Infrastructure, Transport and Tourism

These measures were ultimately triggered by the accident at the Sasago Tunnel on the Chuo Expressway in 2012. Construction of the tunnel had been completed more than 40 years before this tragedy, which occurred despite the tunnel being inspected regularly; this case prompted a reassessment of approaches to evaluating infrastructure conditions.

The accident was triggered by the failure of an anchor bolt securing a bulkhead, causing a concrete slab to fall from the ceiling. Nine people in vehicles traveling through the tunnel were killed. The accident had a significant socio-economic impact on transportation and logistics, forcing the tunnel’s closure for two full months before it reopened. As a result, thorough visual inspections of tunnels and bridges are now mandated every five years.

Fig. Collapse of the ceiling structure in Sasago tunnel

The second challenge is a labor shortage in the construction industry resulting from a declining birthrate and an aging population in Japan. To respond to this need, Japanese companies are promoting the adoption of ICT in design and construction to improve productivity while also actively working to create a more comfortable working environment. At the same time, rising labor costs and prices for materials and equipment are putting pressure on project budgets, resulting in significant delays in project implementation.

Japanese experience for Ukraine

Having experienced crises—both natural disasters and accidents caused by aging infrastructure—Japan has updated its technical design standards and asset management practices to enhance the resilience and safety of its infrastructure. The principle of “build back better” has been incorporated into design standards, asset management, as well as organizational capacity building and training programs for infrastructure management professionals. Japanese consulting and construction firms, which combine advanced technology with extensive experience in infrastructure project management, will work alongside Ukrainian companies to build more resilient, effective, and safe infrastructure, thereby helping Ukraine realize its hopes and future.

What advice would you give Ukrainian companies seeking to cooperate with Japanese counterparties on infrastructure projects?

Japan and Ukraine have already established strong relationships and best practices in specific areas of infrastructure development. In this regard, online workshops on technical issues could become a practical tool to further deepen ties between the private sectors of both countries. Potential workshop topics could include aging infrastructure, remote operation of equipment, maintenance technologies, and infrastructure data management.

Japanese firms are often perceived as slow decision-makers and risk-averse. At the same time, they have strong work ethics and responsible approach to doing business. When a Japanese company decides to join a project, it seeks the best solutions for the reconstruction to create a “win-win” situation.

Japanese consulting and construction firms have been at the heart of Japan's rise from the ashes after major crises. We would be pleased to share with our Ukrainian partners the experience gained through these reconstruction efforts and the lessons learned in building more resilient infrastructure and communities.

Under the intergovernmental cooperation between Ukraine and Japan, the Japanese Grant Aid for Human Resource Development Scholarship is being implemented. The program provides Ukrainian civil servants with the opportunity to pursue master’s degree studies at universities in Japan.

We asked one of the program’s scholarship recipients to share his insights on living in Japan and the practices that could be applied back home in Ukraine.

Vladyslav Horpynenko, Chief Specialist, Rural Development Department, Ministry of Economy and Environment of Ukraine; Master of Social Development and Administration, Rikkyo University (Tokyo, Japan)

A year of living in Japan completely reshapes how you view public transport and how it should function. Here, transit is not merely about getting from point A to point B—it is rather an entire philosophy of mobility, reflecting the deep respect that both the state and private enterprises hold for an individual’s time. My first impression of Japan’s transport network was the stark contrast with what I was used to. To illustrate this, I would like to share a few firsthand stories, some personal reflections, and everyday experiences. In Ukraine, we tend to approach things with a “penny wise, pound foolish” mindset, believing it’s better to patch up an old tram or train car—often endlessly—than to actually replace it altogether. In Japan, I encountered a fundamentally different philosophy, best captured by the legendary Shinkansen.

Looking more closely at the history of the Shinkansen, particularly through what I learned at the Railway Museum in Tokyo, I was struck by a strategy that could be described as “accelerated obsolescence.” This is a conscious decision: it is not about keeping a train running for as long as possible; it is about ensuring it operates at peak efficiency. Rather than chasing longevity records for their rolling stock, Japanese operators project a relatively short service life of approximately 15 to 20 years.

Paradoxical as it may sound, there is a deep economic and technological rationale behind this approach. It allows the industry to remain consistently at the forefront of technological progress. As soon as a new generation of trains rolls off the production line, it incorporates the latest advances in aerodynamics, energy efficiency, and materials. Each new Shinkansen model does not merely replace its predecessor; it sets a new benchmark. In Japan, the thinking is that beyond a certain point, the cost of repairing and maintaining an aging train far outweighs the investment required to purchase a new, significantly better one.

This continuous fleet renewal also provides a powerful stimulus for domestic manufacturers. Industry leaders like Kawasaki and Hitachi can rely on a steady stream of orders, while engineers are constantly challenged to outdo yesterday’s innovations. The Japanese are not afraid to invest in the future, knowing full well that their current models will become obsolete within 15 to 20 years, making way for more advanced replacements. This creates a sense of continuous progress, unlike the tendency to over-preserve outdated infrastructure, often seen in Ukraine.

However, even the most modern train falls short of its potential without strict operational discipline. This brings us to the phenomenon of Japanese punctuality. When annual reports measure the average delay of Shinkansen trains in seconds—not hours—you begin to understand that this is about far more than just a timetable.

I remember an occasion when my local train arrived a minute and a half late. The conductor politely bowed to passengers and issued a formal apology. A delay of just 90 seconds was enough to prompt an internal review. Here, a delay is not merely an inconvenience; it is viewed as a breach of the social contract. When delays exceed a few minutes, stations issue official delay certificates (chien shōmei) that passengers can present to their employers. Unlike illness or natural disasters, such a certificate serves as a valid excuse for late arrival at work. This is highly telling: the state and railway companies acknowledge that their mistakes have real consequences for people’s lives, offering them a tangible way of protecting their rights.

Ultimately, if we want business processes to run like clockwork, the transport systems that support them must be equally precise.

What truly makes Japanese transport exceptional is its seamless integration across the entire network. While in Ukraine, a large railway station is typically a standalone facility—leaving passengers to walk, search for a bus, or take a taxi to continue their journey.

Japanese stations, by contrast, are not merely transit stops, but integrated transportation and commercial hubs. Stations like Ikebukuro and Shinjuku in Tokyo are effectively cities in their own right. You can arrive by Shinkansen and, without ever stepping outside, go down one level to transfer to the subway or a suburban railway line; access another level to reach the bus terminal; or head upstairs to a vast shopping center where you can dine, buy gifts, or even spend the night in a hotel integrated into the station complex.

Remarkably, this does not create chaos because every detail has been meticulously planned. Most importantly, there is a unified payment system. During my time there, I used a Suica card. With it, I could hop on a train in Hiroshima, pass through Osaka, arrive in Tokyo, transfer to the subway, and take a bus—paying for everything using the exact same card. I could even use it to buy coffee from a vending machine or groceries at a supermarket. One card works for almost all modes of transport nationwide. There is no need to worry about cash, multiple transit passes, or buying a separate ticket for every single journey. It’s a seamless experience that takes the mental strain out of travel.

Japan’s experience offers invaluable lessons for Ukraine as it undertakes its reconstruction efforts. Instead of merely renovating existing railway stations, we should design integrated systems where transportation hubs become vibrant centers of economic activity, rather than just stops along the way. We should invest in technologies that enable citizens to travel throughout the country seamlessly, quickly, and safely—whether by Ukrzaliznytsia train, city bus in Lviv, or underground in Kyiv.

Masahiro Nakamura, Head of Poland Office at Nippon Koei, Japanese engineering & consulting firm

How can Japanese engineering expertise contribute to Ukraine’s infrastructure recovery, and what steps are required to ensure successful cooperation and investment?

Japan’s advanced technologies and extensive experience in infrastructure development can greatly accelerate Ukraine’s reconstruction efforts, particularly in the transport and energy sectors, by enabling the implementation and effective operation of high-impact solutions, including long-span bridges, hydropower plants, and highly efficient thermal power plants. However, successful technology transfer depends on tailoring these Japanese solutions to the requirements of local infrastructure. Furthermore, Japan’s past experience in supplying equipment to Ukraine indicates that reconstruction should be driven primarily by municipalities and local communities rather than by the central government alone, ensuring that investments align directly with local priorities.

Cooperation needs to evolve from providing goods and equipment through grant programs into comprehensive infrastructure reconstruction, including direct construction. To lay a solid foundation for this transition, it is essential to scale up technical assistance to include full-scale feasibility studies, engineering designs, and other project-preparation activities. Doing so will clear the path for construction to begin without unnecessary delays the moment the operational environment allows.

What mechanisms of partnership and investment can best drive the recovery process, and what lessons can Ukraine draw from Japan’s experience?

One of the key priorities should be creating conditions that fuel broader private-sector involvement and trigger foreign investment. Amid the challenges of the ongoing war, Ukrainian stakeholders have understandably relied heavily on grants and donations. Yet, the sustainable reconstruction process demands a pivot toward risk-sharing, local ownership and accountability, as well as the long-term economic and financial viability of infrastructure projects. Here, public-private partnerships (PPPs) offer immense promise. In the airport sector, for instance, Ukraine can leverage the expertise Japanese private-sector companies have gained while implementing concession projects both in Japan and abroad. Industrial parks and transit-oriented development around railway stations also hold huge potential. Under these frameworks, the private sector can develop and manage commercial facilities and real estate, while the public sector assumes responsibility for core infrastructure—including road and rail access and power supply—as well as institutional, social, and environmental frameworks.

However, Ukrainian companies should be aware that partnering with Japanese businesses is a long-term game that demands patience. Large Japanese corporations take their time to vet opportunities, determine whether their involvement is viable, and complete internal approval procedures. Yet, once the green light is given, they generally deliver results with unwavering consistency and the highest level of responsibility.

Japan’s own experience of post-disaster recovery also offers insightful lessons for Ukraine. The reconstruction efforts following the Great East Japan Earthquake and tsunami in the Tohoku region highlighted the value of an inclusive, community-centered, and participatory approach. Reconstruction should not focus solely on physical infrastructure; equally important is addressing the needs of local communities and restoring the social and human connections that bind people and communities together. Rebuilding both physical infrastructure and social, human, and psychological ties will help Ukraine implement a holistic recovery strategy rooted in the principle of “build back better.”

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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