Evaluation Summary
I. Outline of the ProjectCountry: People’s Republic of China
Issue/Sector: Private Sector Development
Division in charge: JICA China Office
R/D signing: 5 Dec, 2005
Period ofOriginal period: Mar., 2006 Cooperatio Feb., 2009
nExtension period: Mar., 2009 Feb., 2010
Related Cooperation: -Project title: The Project for Business Human
Resource Development in Dalian
Cooperation scheme: Technical Cooperation
ProjectTotal cost:
Partner Country’s Implementing
Organization
Supporting Organization in Japan:
The Japan Foundation5

1. Background of the Project
The Dalian Municipal Government, in collaboration with the Ministry of Commerce (MOFCOM) andthe Japanese Chamber of Commerce, Dalian, applied to the Japanese government for a Grant AidProject in order to construct facilities and maintain equipment for the China-Japan Friendship Dalian
Center for Human Resource Development (hereinafter “the Center”), which develops humanresources having both business Japanese language proficiency as well as skills in specialized fields(business management, production control, software development and process management（hereinafter “software development”). Facilities were constructed through the Grant Aid Project(application submitted in May 2002, exchange of notes in April 2004, and completion in March 2006).
In addition, an application for Technical Cooperation was submitted in August 2004, a record ofdiscussion (hereinafter “R/D”) was concluded on December 5, 2005, and a three-year technicalcooperation project commenced in March 2006.
The Center aims to contribute to the economic development of Dalian and the surrounding area
and also support local Japanese companies by improving the abilities of Chinese employees at
Japanese companies (or Chinese companies doing business with Japanese companies) centeredaround Dalian and of those who wish to work for Japanese companies. The Center does so byconducting non-academic and research courses in business management, production control,software development and business Japanese at non-profit public educational institutions (mainlyadministered in cooperation with Dalian Jiaotong University, as well as others including Dalian
University of Technology, Dalian University of Foreign Languages and Dongbei University of Financeand Economics) that are independent corporations under the Dalian Science and Technology
Bureau.
(Moreover, afterwards the initially planned end date for completing technical transfers was to byMarch 2009. However, due to unavoidable changes in circumstances such as the reassignment ofthose on the Chinese side to receive the technical transfers (counterparts, hereinafter “C/P”),adjustments had to be made. A proposal for a terminal evaluation was received and an R/D wasconcluded in December 2008 concerning the extension of the cooperation timeframe. The period ofcooperation was extended and the technical transfer performed, and the project came to an end inFebruary 2010.)
2. Project Overview(1) Outline of the Project
The Project aims to contribute to the economic development of Dalian and the surrounding areaby improving the abilities of Chinese employees at Japanese companies (or Chinese companies
doing business with Japanese companies) in this area. The Project does so by conducting
non-academic and research courses in business management, production control, softwaredevelopment and business Japanese at the Center,(2) Overall Goal
The Center will play a vital role in developing business human resources that contribute to theeconomic development of Dalian and Northeast China, as well as to closer economic relations
between Japan and China.
(3) Project Purpose
At the Center, implementation structures will be strengthened for developing business humanresources that contribute to the economic development of Dalian and Northeast China, as well as
closer economic relations between Japan and China.
(4) Outputs
1) At the Center, structures will be arranged so that high-quality research plans and curriculum will
be made in the fields of software development, process management, business management,production management and business Japanese, training courses will be administered, and content
and such can be improved based on monitoring and evaluations.
2) A network of partner institutions including companies will be built.

6(5) Inputs (Entire Project Period of Cooperation Including Extended Period)- Japanese side:
1) Dispatch of Experts:(1) 1 project coordinator (long-term: April 24, 2006 – November 30, 2007)(2) 2 in charge of business Japanese (long-term: April 24, 2006 – March 31, 2006;
short-term: 5.50 MM)(3) 10 in charge of software development and process management (total: 65.54 MM)(4) 8 in charge of business management (total: 39.27 MM)(5) 3 in charge of production management (total: 27.03 MM)
2) Equipment: simultaneous interpreting system, books, etc. (approx. JPY 10.599 mil)
3) Local costs: business travel expenses for Japanese experts, publicity support expenses, etc.
(approx. JPY 21.937 mil)4) Trainees received: 8 trainees for 13 days in year 2006, 13 trainees for 17 days in year 2008
- Chinese Side:
1) Counterparts: 27 persons(FY2009)(1) Project director (Vice Director, Dalian Science and Technology Bureau)(2) Project managers (Chief of the Center)(3) Counterparts for all Japanese experts(4) Office staff, etc. (Center management personnel, office personnel, drivers, other necessarypersonnel)
2) Land, building, and facilities:(1) Land: for project office & relevant facilities, etc.
(2) Buildings and facilities: project office, meeting rooms, experts’ office, classrooms andincidental equipment and machinery to conduct training (facilities and equipment arranged throughJapan’s Grant Aid Project)
3) Expenses for the Center’s administration and maintenance: RMB 2.56 mil (total FY2009
expenditures)
II. Evaluation TeamMembers- Japanese side:ofLeader: Mr. Matsumoto Kojiro, Deputy Resident Representative, JICA China OfficeEvaluation
Evaluation Planning: Mr. Hayashi Hiroyuki, Representative, JICA China OfficeTeam
Evaluation and Analysis: Mr. Takei Makoto- Chinese Side:
Leader: Dr. Wan JiuWen, Director, Department of International Commerce andCooperation, Dalian Science and Technology Bureau
Evaluation Planning: Dr. Ma YunDong, Vice President, Dalian Jiaotong University
Evaluation and Analysis: Mr. Liu Li, Consultant
Period of15 Sep., 2008 - 25 Sep., 2008
Type of Evaluation：Terminal Evaluation
Evaluation

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III. Results of Evaluation
1. Summary of Evaluation Results(1) RelevanceThe project is highly relevant because it conforms to Chinese government policy on the nationaland local (Dalian) levels and it furthermore largely meets the needs of private companies using theCenter.
Following China’s entry into the WTO, trade with Japan is expanding in the Northeast area,
especially in Liaoning Province and the Bohai area. Therefore, demand for versatile business people
with specialist knowledge and proficient business Japanese is further increasing.
(2) Effectiveness
It is judged that the necessary schemes to achieve results are being established and accordingly it
is judged that necessary schemes to achieve the project’s goals are being established. Hence, theproject is fundamentally effective. However, the issues of technical transfers and building a company
network remains due to the above mentioned C/P reassignments. In order to achieve the project’s
goals within its remaining timeframe, it is judged that considerable work will be required, thus
necessitating continued examination until the project’s end.
(3) Efficiency
Regarding Result 1, it cannot be said that there were no problems with efficiency due to changes
caused by external conditions as described above. JICA will take these points as a good lesson whileneeding to have closer cooperation between Japanese and Chinese parties involved than has been
the case until now, as well as needing to raise practical experience for C/Ps and efficiency until
project completion.
Regarding Result 2, numerical targets have already been achieved. Although the number ofcompanies receiving training at the Center is still insufficient, those that are have provided responses
saying that “a good cooperative relationship with the Center is being built,” so it is judged that theefficiency of Result 2 is high.
(4) Impact
Regarding the point of whether project goals could be completed within the project timeframe ornot, a judgment based on the future progress of technology transfers will be necessary. Since
schemes to achieve goals in outlying regions are being established, it is judged that it is possible toachieve high goals if more suitable measures are executed which include strengthening themanagement and administrative structure of the Center in the future.
(5) Sustainability(1) Although it is possible to perform prescribed technical transfers to new C/Ps in the project’s
remaining timeframe, in light of their limited experience it is exceedingly difficult for them to build
curriculums, conduct lectures and make improvements and such by themselves after only receiving
the technical transfers. Therefore, it is the opinion of many that continued cooperation with theJapanese side is required.
(2) Most marketing and educational activities geared towards Japanese companies are still
performed by Japanese experts. As this is a major obstacle to the independent development oftraining for Japanese companies, urgent efforts to improve the situation are necessary. The Japaneseside should monitor progress and try to provide appropriate support as necessary.
(3) Regarding the Center’s finances, the Chinese side (the Dalian Science and Technology Bureauand Dalian Jiaotong University) has made declared that it will “secure the budget necessary toadminister the Center,” and the required budget has thus far been secured without problem.
Moreover, regarding the Center’s financial situation, inspections are performed every year by the cityof Dalian’s Financial Inspection Department according to Chinese financial management systems
and law.

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2. Factors that promoted realization of results(1) Factors concerning to Planning
N/A(2) Factors concerning the implementation process(1) The results of interviews and questionnaires of involved parties show that many recognize thatstrong support by both the Japanese and Chinese governments contribute to the project.
(2) In the same manner, the effort of both Japanese and Chinese parties involved with the project
and the presence of the improved Center also contribute.
(3) Dalian’s rapid economic development and the increase in both Japanese companies in Dalian
as well as local companies focusing on business relationships with Japan also contribute.
(4) In addition, special seminars focusing on topics such as the Toyota Production System andseveral free seminars that have raised name recognition, finding new customers, surveying needs
and other such efforts are also thought to have made large contributions.
3. Factors that impeded realization of results(1) Factors concerning planning
N/A(2) Factors concerning the implementation process(1) Regarding the project’s progress, the many changes concerning Chinese C/Ps (who weretransferred from Dalian Jiaotong University and thus were affected by the university’s regularpersonnel changes while some C/Ps left for personal reasons, although the Chinese side called them“adjustments and improvements”) and the dead time thereafter can be said to have been the biggest
obstacle. Furthermore, in interviews and workshops, private companies cited the Center’s lack ofadministrative and management functions as an obstacle. This problem is one that could be solvedby the Center itself and improvements are expected in the future.
(2) The Center has already made a website, but it was pointed out that its infrequent updates are
an obstacle to acquiring new customers and other efforts. Since a website is an important sales
support tool, urgent improvements to and usage of the website are needed to update it and enrichcontent.
4. Conclusion(1) Certain results are being produced up to now through the efforts of both Japanese and Chineseparties involved. However, under the circumstances in which the project required a broad review oftechnical transfer plans in important areas at a time when there was less than a year remaining in theproject period, considerable efforts are thought to be needed in the future to sufficiently achieve
within the project’s timeframe the necessary results in order to achieve the project’s goals and tofurthermore achieve higher goals in the future.
(2) In particular, there are many points of concern regarding “independent development,” so including
action for “independent development,” it is necessary for both Japan and China to communicate witheach other sufficiently and for parties involved to have mutual understanding, and then for continued
examination of whether project goals are being achieved or not until the project’s completion.

95. Recommendations
There are many points of concern on achieving project goals within the project’s timeframe and, inthe DAC 5 Evaluation Criteria in particular, on ensuring “Sustainability.” Therefore the Items below areproposed for the relevant personel (as at 2008.Sept) of this Project(1) Continued examination on whether project goals are being achieved or not until the project’s
completion upon establishing sufficient communication between both Japan and China and mutual
understanding of parties involved.
(2) Under the examination process, extending the project timeframe will be considered if prospects
are convincing for both an environmental setting in which “the management and administrative
structures of the Center as a training project for Japanese companies are strengthened” and forresults of technical transfers in which “C/Ps stay in their positions and actually take classes and build
experience while improving content by providing feedback on subjects.”(3) It is believed that specific timeframes and action, etc. must be set separately for each field. Inaddition, it is hoped that other than the four fields for which implementation has occurred until now,the Japanese side will cooperate in order to improve management and capacity as a target oftechnical transfers and will consider this based on the merits. Accordingly, it is expected that theneeded capabilities will be improved in order to administer the Center as a public training institutewith training planning capabilities as well as marketing and sales capabilities.
(4) The project timeframe does not absolutely have to be extended. If the two conditions mentioned
above in (2) are not met, then an extension will be pointless. Therefore, the Japanese and Chinesesides will agree on and create a method of specifying action plans and for parties involved and theresults.
(5) Regarding the simultaneous interpreting system, further action is needed as with the interimevaluation proposal.
6. Lessons Learned(1) If specialized technology can be transferred to meet company needs, then project efficiency andeffectiveness can be raised by surveying specific supply and demand needs from the initial planningstage and setting specialized fields to focus on and goal levels, while also putting together a systemof implementation that can flexibly respond to changes should needs change.
(2) In addition, when performing a project evaluation survey of this kind, if technical analysis ortechnical evaluation members are assembled, then it is likely that company needs and C/P needs
can be met, the conformity of specialized techniques offered by experts can be evaluated andtechnical transfers that better match needs can be facilitated. Furthermore, it is believed thattechnical transfers can be made more efficient by basing them on detailed analysis and evaluation oftransfer techniques.
7. Follow-up Situation
Confirmation of the state of Sustainability after the project is completed.

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