ANNUAL REPORT

2004

JAPAN INTERNATIONAL COOPERATION SYSTEM

Information on JICS

As of September 1, 2005

Name of organization: Japan International Cooperation System (JICS)
Office:Shinjuku EAST Building, 10-5, Tomihisa-cho, Shinjuku-ku, Tokyo, 162-0067 JAPAN
Tel: +81-3-5369-6960 Fax: +81-3-5369-6961
E-mail: jics@jics.or.jp URL: http://www.jics.or.jp/President:

Takahisa Sasaki

Vice President:

Yukihisa Sakurada

Date of Establishment: April 12, 1989. JICS was established as a public-service foundation authorized by theMinistry of Foreign Affairs of Japan.
Endowment:387 million yen

Number of employees: 170
Purposes:

The purposes of the Foundation are to promote higher-quality international
cooperation through cooperation in the appropriate and efficient implementation ofbilateral grant activities and other assistance within the framework of Japan’s economic
cooperation activities and thus contribute to the development of the world economy aswell as friendly relations with other countries.

Business:

The Foundation shall conduct the following business:
1. Business contributing to the promotion of the appropriate and efficient implementation of grant aid programs, technical cooperation programs and loan programs
which are part of Japan’s Official Development Assistance (ODA);
2. Follow-up and after-care activities for the above-mentioned programs;
3. Research and studies on methods to efficiently implement international cooperation;
4. Education and support promoting international cooperation; and5. Other activities necessary to achieve the purposes of the Foundation.

Overseas Offices:

Mongolia Office
Bodi Tower, Sukhbaatar Square 3,
Ulaanbaatar, Mongolia
Tel: +976-11-318423
Fax: +976-11-312549
Afghanistan OfficeHouse No.579, Street No.15,
Wazir Akbar KhanKabul City, Afghanistan
Tel: + 873-7613-25827
Fax: + 873-7613-25828

Cover photos① ② ③ ④Jordan Office
Office B, Zara Expo, Located behind Grand HyattAmman, Hussein Bin Ali Street, Jabal Amman,Amman, Jordan
Tel: + 962-6-462-7333
Fax: + 962-6-462-7237
Madagascar Office
4e étage, Bâtiment de la Réunion
Isoraka, Antananarivo, Madagascar
Tel : +261-20-22-601-90
Fax: +261-20-22-602-09① Children undergoing a blood test for malaria (Mozambique)② Fire fighting vehicles undergoing pre-loading inspection in Japan (Iraq—emergency grant aid)
③ Fishing boat washed up on land after the tsunami (Sri Lanka)④ Literacy class conducted by Tanba Green Force (NGO receiving JICS support) (Philippines)

Contents
The JICS Vision ............................................................................................ 2
Preface–Toward Improved Reliability and Efficiency ...................................... 3
JICS Activities in FY2004 ............................................................................... 4
Part I General Remarks–Main Activities in FY2004
Special Feature: JICS’ Role in Rehabilitation
Iraq ............................................................................................... 6
Afghanistan ................................................................................... 10
Sumatra Earthquake and Indian Ocean Tsunami ............................. 12
The Role of JICS in ODA ...................................................................... 14
More Countries Receiving Assistance in a Larger Variety of Projects
Zambia (Grant Aid for Infectious Diseases Prevention and Treatment) .. 18
Albania (Grant Aid for Increase of Food Production) ....................... 19
Senegal (Food Aid) ....................................................................... 20
Honduras (Cultural Grant Aid) ...................................................... 21
Laos (Non-project Grant Aid) ........................................................ 21
Cambodia (Grant Aid for Conflict Prevention and Peacebuilding) ..... 22
Kyrgyzstan (Technical Cooperation)................................................ 22
Support Activities for JICA Offices (Technical Cooperation) ............. 23
Grant Aid for Japanese NGO Projects .............................................. 24
JICS Support for NGOs ................................................................... 25
Changes for More Flexible and Proactive Implementation of Operations .. 26
JICS –Active in Many Areas .................................................................. 28
Part II Description of Projects
Countries Targeted for JICS Projects ............................................... 30
Revenue by Function (FY2004)....................................................... 32
Revenue by Scheme (FY2004) ........................................................ 32
Revenue by Counterpart (Over the past three years)......................... 33
Procurement Management for Grant Aid Projects............................. 33
Project Results by Country in FY2004 ............................................. 34
List of Projects in FY2004–Grant Aid ............................................. 37
List of Projects in FY2004–Technical Cooperation .......................... 44
Procurement Management of Loan Programs ................................. 47
Other Activities Related to International Cooperation ....................... 47
Reference MaterialsChanges in Revenues and Expenditures by Fiscal Year ..................... 48
FY2004 Business Report ................................................................ 49
FY2004 Statement of Revenues and Expenditures ............................ 50
A Brief History of JICS ................................................................... 51
Executive Management and the Board of Trustees ............................ 52
Organization Chart ........................................................................ 53
The Articles of Foundation ofJapan International Cooperation System (JICS) ............................... 54

The JICS Vision
JICS is a public-service corporation working to ensure appropriate and effective procurement of goods and services requiredin developing countries, within the framework of the Japanese government’s official development assistance and othersupport for developing countries. JICS endeavors to carry out its operations in accordance with the following precepts.

JICS plays a bridging role in assistanceprojects

JICS puts its knowledge and experience
to work in assistance projects

Working for the further development of developing countries, we procure goods
and services suitable for local conditions at appropriate prices and in an effective
manner, while ensuring that available funds are used in the best way possible.
In the field, we make optimal use of our mobility and experience, acting as abridge between Japanese and foreign assistance organizations, NGOs and privatecompanies to offer fine-tuned support and coordination for the smooth
implementation of various types of projects.

We actively engage in public relations activities to communicate informationand knowledge acquired through our operations; research activities in thepursuit of better assistance activities; and support activities directed atindividuals working in the field in developing countries, all with the aim ofcontributing to the growth of developing countries.

JICS maintains an impartial stance toensure fairness and transparency
In carrying out our operations, our priority is to maintain an impartial stance toensure fairness and transparency. Our procurement of goods and services iscarried out following procedures detailed in guidelines drawn up in conformity
to legal and ethical requirements and internationally accepted practices.

JICS endeavors to manage its operations
appropriately and to train capable
personnel
To ensure that we can reliably carry out our roles described here, we havestrengthened our internal auditing functions and required compliance, by staff
and the organization itself, with all legal requirements in place. We haveintroduced a safety management system to create a safe and healthfulworkplace for all. We also hire skilled and experienced personnel and offer staff
training in the skills, knowledge and experience required for offering the mostappropriate proposals and coordination in various phases of assistance projects.

JICS Code of Conduct
Based on the precepts of the JICS Vision, we pledge to act in accordance with the ten principles shown below, with the goal ofpromoting higher-quality international cooperation.
We will meet our responsibilities as a public service corporation
Based on awareness of our role as a party involved in international
cooperation, we will engage in responsible conduct in order to meet theexpectations of society toward this Foundation as a public-service
corporation.
We will provide high-quality services
We will endeavor to provide high-quality services assisting implementationof international cooperation in a timely and effective manner, to ensure
the concerned parties’ satisfaction with our services and establish ourreliability.
We will strictly observe laws and rules
We will strictly observe related laws, internal rules, social codes of conduct
and international rules. Even in cases where our conduct does notcontravene the foregoing, we will act in accordance with socially accepted
practices and will not engage in inappropriate conduct.
We will exercise consideration for local conditions
In our overseas activities, we will observe local laws and pay due respect tolocal traditions, customs, culture, environment and others.
We will practice information disclosure
To ensure greater transparency of management of our operations, we willproactively disclose information concerning projects, condition ofoperations and other details.

2

We will manage information appropriately
We will exercise close supervision over all information, including personal
information, observing the provisions of laws and related rules concerning
protection of personal information, take appropriate security measures andstrictly enforce confidentiality requirements.
We will respect human rights
We will respect human rights in all circumstances and will notdiscriminate on the basis of sex, age, nationality, race, ethnicity, beliefs,religion, social status or physical disability.
We will act in a socially responsible manner
We will adopt a firm stance toward anti-social forces or organizations thatthreaten social order or safety.
We will endeavor to preserve the environment
Based on awareness that addressing environmental problems is an
important mission, we will make voluntary, pro-active efforts to preserve
the environment.
We will create a positive workplace atmosphereWe will maintain order and create a safe, motivating workplaceatmosphere, so that officers and workers can work to the best of theirabilities. We will also manage safety on an ongoing basis, with a crisis
control system in place to ensure the personal safety of officers and workers,
both in Japan and abroad.

Toward Improved
Reliability andEfficiency

The Japan International Cooperation System(JICS) was established as a public-service
foundation in April 1989 upon authorizationfrom the Minister for Foreign Affairs. As part ofJapan’s Official Development Assistance (ODA), JICS
aims to promote high-quality international cooperation by providing appropriate and effective
assistance in implementing bilateral grant activities.
Since its establishment, JICS has been able to makeits own modest contributions in the field, with theguidance and support of the Ministry of Foreign
Affairs, the Japan International Cooperation Agency(JICA) and others, and with the cooperation ofvarious foreign government organizations and ODArelated bodies. I wish to express my sincere
appreciation for the support and cooperation thatJICS has received up to now.
JICS’ activities have become increasinglydiversified. Over the past few years, our rehabilitation assistance and peacebuilding activities haveexpanded rapidly in Afghanistan, Iraq, Cambodia,and Sierra Leone. We were also delegated to assist
with non-project grant aid-related operations in theaftermath of the major earthquake off the coast ofSumatra and tsunami in the Indian Ocean on
December 26, 2004, and we are all working to help
with rehabilitation of heavily damaged areas inIndonesia, Sri Lanka and the Maldives.
We continued to expand the scope of ouractivities in fiscal 2004, setting up a new Equipment
Procurement Help Desk to provide better support
for implementation of projects directed by JICA
overseas offices, and doing more in the areas of yen
loans and support for NGOs.
This Annual Report describes JICS project results
and activities in fiscal 2004. We formulated thefollowing policies for our activities for fiscal 2004,
and operations have been carried out accordingly: toactively participate and expand our work in international cooperation activities carried out by theJapanese government, such as rehabilitation
development support and so on; to review ourproject implementation structure; to introduce a
new personnel and wage system; to support
implementation of projects led by JICA overseas
offices; and to provide better-quality operations andimprove our financial structure.
At the G8 Summit in July 2005, Prime Minister
Junichiro Koizumi said that he would increase
Japan’s ODA project volume by 10 billion dollars
over the next five years and pledged to double
assistance to Africa over the next three years. In lightof this, JICS will continue its efforts to contribute toefficient use of Japan’s ODA and endeavor to becomea highly reliable organization, in accordance with
our “JICS Vision” and our new Code of Conduct
adopted in April 2005. I hope that this Report willgive you a better understanding of our activities.

Takahisa Sasaki, President
Japan International Cooperation System (JICS)
September 2005

3JICS Activities in FY2004

2004

Main JICS Activities

Related Developments in Japan and AbroadApril

1Shigeru Ishikawa becomes chairman of the JICS Board of Trustees (Fumio Watanabe, previouschairman, resigns March 31).
Takahisa Sasaki becomes JICS president.

2nd African Partnership Forum(Mozambique)

June

6

JICS reorganized: Technical Cooperation Management Department and Grant Aid Management
Department merged; project management system changed to a per-project and per-program basis;
Office of Contract Examination and Planning and Coordination Division established.

G8 foreign ministers’ meeting(Washington) (May)G8 Summit Meeting held (Sea Island,Georgia)
International Symposium on HumanSecurity (Tokyo)
DAC High Level Meeting onMillennium Development Goals(Paris)22

1st regular meeting of the JICS Board of Trustees and Board of Directors for FY2004.

July

21

Afghanistan—FY2003 grant aid for research: Research Project for Developing Mine Clearance
Related Equipment. Senior Vice-Minister for Foreign Affairs Ichiro Aisawa attends mine removaltest.
The President of the West African Development Bank and his party visit JICS.

August2223FY2004 meeting of NGOs supported by JICS.

16 (-27)JICS accepts two students from the University of Ibaraki in its new internship program.

15

1st extraordinary meeting of the JICS Board of Trustees and Board of Directors for FY2004.
Vice president Takeshi Imazu resigns

16Yukihisa Sakurada becomes vice president

1

JICS procurement guidelines drawn up
Help Desk Service for equipment procurement begins

2, 3JICS participates in International Cooperation Festival 2004

6

Iraq—FY2004 emergency grant aid: Project for the Provision of Police Vehicles. Transport ofvehicles to Iraq ends.

23JICS begins duties related to analyzing requests in candidate cases for cultural grant aid and for
cultural grassroots grant aid (contract for preliminary studies for FY2004 cultural grant aidconcluded).

21

JICS participates in the International Cooperation Career Fair 2004.

30

1st lecture on JICS activities given at Sophia University by JICS staff.

1

Afghanistan—FY2003 sector program grant aid: Programme for Improvements to the Trunk
Road from Kandahar toward Herat. Construction begins.

7

Students from Sayama Chuo Junior High School pay a second visit to JICS to learn about
international cooperation as part of their integrated studies class.
2nd lecture on JICS activities given at Sophia University by JICS staff.

9Afghanistan—FY2003 sector program grant aid: second project of Improvements to the Trunk
Road from Kandahar toward Kabul. Completion ceremony held.
Lecture on JICS activities given at Yamaguchi University by JICS staff.

17

Lecture on JICS activities given at Tokyo Keizai University by JICS staff.

28

Associate Project Staff (APS) system begins

12JICS selects groups to receive assistance under its FY2004 support for NGOs program.

17Indonesia, Maldives—FY2004 non-project grant aid for tsunami disaster procurement
management contract signed.

3

Sri Lanka—FY2004 non-project grant aid for tsunami disaster procurement management
contract signed.

5, 6

JICS participates in the One World Festival.

14

Afghanistan— FY2003 grant aid for research: Research Project for Developing Mine Clearance
Related Equipment. Local testing ends.

10

JICS Annual Report 2003 issued.

22

2nd regular meeting of the JICS Board of Trustees and Board of Directors for FY2004.

24

JICS’ Medium-term Action Plan 2005-2007 formulated.

September

OctoberNovember
December

Albania—Procurement management contract for project to use counterpart funds from grant aid
for increase of food production (2KR) signed.

59th UN General Assembly opens

George W. Bush reelected president ofthe United States
Major earthquake off the coast ofSumatra and tsunami in the IndianOcean (December 26)

2005
January

February

March4

UN World Conference on Disaster
Prevention (Kobe)
Special ASEAN Leaders' Meeting on
the Aftermath of the Earthquake andTsunami (Jakarta)
Ministerial-level Meeting on
Humanitarian Assistance to TsunamiAffected Communities (Geneva)
Japanese government announces new
medium-term ODA policies