October 19, 2000

Alarm bells rang by Japanese firms in Tijuana.

Kosei Okamoto, the Secretary General of the Economic Federation of Chabu (Japanese province), in company with a delegation of Japanese industrialists, visited Tijuana during the course of this week. What they had to say was not good news for Tijuana.

Okamoto expressed concern for the lack of infrastructure with particular emphasis on electrical power. He noted that some companies they visited in Tijuana were experiencing brownouts. This he noted is unacceptable, as companies cannot afford to be without electrical power, as their manufacturing production is dependent on the constant and uninterrupted flow of electrical energy.

A second area of great concern Okamoto mentioned was the high crime rate the city is experiencing, though he noted, that the city has mounted an aggressive campaign against crime that is beginning to have results.

The province of Chabu is the third most important economic region in Japan generating in excess of 657 billion dollars in GRP. As an indirect way of emphasizing Tijuana should pay attention to his words, Okamoto mentioned that the Chabu federation he leads has 482 members representing diverse manufacturing sectors.

Members of the Tijuana industrial sector didn't miss the message being delivered - do something or Tijuana is not likely to continue receiving heavy investment from Japan.

The state of Baja California received 2.6 billion dollars of Asian investment during the period 1997 through 1999, an amount which leads all other Mexican states. Asian investments since 1997 have created over 29,000 jobs in Baja California.

The power generating plant in Rosarito is undergoing upgrading which will provide much needed additional electricity, and a second power generation plant is scheduled to be built. Meantime, Tijuana is receiving additional electrical power through high-tension cable from Mexicali. However, due to the rapid growth in both population and industrial star-ups, Tijuana is having difficulties meeting the high demand for electrical power, water, and sewage treatment.