Annual Report 2017
Japan International Cooperation System
Year ended March 31, 2017

R e a l A i d i n A c ti o nMission, Vision and Values (MVV)/Code of Conduct
Mission, Vision and Values (MVV)MISSIONJICS will contribute to the peace and stability of the international community
as a player in the international cooperation field.

VISIONJICS aims to be the world’s best service provider in the international cooperation field.

VALUES
Impartiality, Fairness and Transparency

JICS will maintain an impartial stance to ensure fairness and transparency.

Reliability

JICS will respect local input and build trust with its clients.

Maximizing the Impact of the Aid

JICS will focus its efforts on maximizing the impact of the aid.

Creation and Challenge

JICS will be unrestricted by conventional ideas, and take up the challenge of creating
and providing new services.

As articulated in JICS’ mission,
which is part of the organization’s“Mission, Vision and Values” (MVV),
each employee is committed to“contributing to the peace andstability of the world as a player
in the international cooperation
field.” To achieve this goal, throughactivities in developing countries
and Japan, we work daily to improve the quality of our services
as a service provider.

JICS Code of Conduct
Based on the precepts of the JICS Mission, Vision and Values, we pledge to act in accordance with the 10 principles shown below.

1. Behaving in accordance with our responsibilities
as a public service corporation

6. Managing all information appropriately including
the protection of personal information throughcompliance with laws and relevant rules and theimplementation of information security measures

2. Providing high-quality services which ensure thesatisfaction and trust of stakeholders

7. Respecting human rights

3. Strictly observing laws and rules

8. Acting resolutely in response to anti-social groups
that threaten social order or safety

4. Exercising due consideration for local conditions
including traditions, customs, culture,and the environment

9. Working to protect the environment

5. Practicing information disclosure to ensure greatertransparency in the management of our operations

10. Creating a safe and satisfying workplace environment to ensure the safety of executives
and employees, both in Japan and abroad

Profile of JICS
Japan International Cooperation System (JICS) is the first foundation in Japan to specialize in procurement operations within thefield of international cooperation. JICS’ activities primarily focus
on aid project-related procurement and supervision operations
within the Japanese government’s Official Development Assistance (ODA) programs and other cooperation programs with
developing countries.

“Procurement” refers to the acquisition of and payment forgoods and services—such as transportation, design and construction—necessary to achieve a specific objective. Since its
establishment in 1989, JICS has appropriately and effectively
carried out the selection and procurement of goods and services
needed in local areas where cooperation projects are being
implemented.

JICS’ Role: “Making Aid Tangible through Procurement”
Aid Agreement

Procurement

Materials andEquipment
Facilities
Services

Procurement organization
CompetitivenessTimelinessEconomyImpartiality

Public procurementin the international cooperation
fieldFairness

Transparency

Why is a specialist procurement
organization necessary?
1. With regard to the acquisition ofnecessary goods and services, it isnecessary to perform a variety oftechnical and specialized operations
to ensure that quality, economic
performance and appropriate timing
are maintained. These include rigorous and complex procedures, preparation of technical specifications andother procurement-related documentation, execution of tenders andevaluation of bids, management ofaid funds and other operations, all ofwhich is difficult to fully handle.
2. Procurement operations for ODA
programs—which are ultimately
paid for by Japanese taxpayers—demand impartiality, fairness, competitiveness and transparency. To assure
the fulfillment of these conditions, itis necessary to have an organizationthat will manage aid funds on therecipient-country government’s
behalf and carry out public procurement, including tender procedures.

Japan International Cooperation System Annual Report 2017

Profile of JICS

1A Message from the President

In working toward the realization of a peacefuland prosperous international community,
Japan aims to contribute to the establishmentof robust, constructive relationships
within that community. As a player in thedevelopment cooperation field that is trusted
by all its stakeholders, JICS’ strengths include
its agility and superior proposal-formulation
capabilities.

Japan International Cooperation System Annual Report 2017

JICS’ Role in Development Cooperation
The Japanese government sets out its aims towardachieving the United Nations Sustainable Development Goals (SDGs) and achieving “quality growth”
together with developing countries, both in Japanand in developing countries. JICS’ main operations
are focused on procurement services within Japan’s
Grant Aid Programme.

2ODA-Related Operations and Development ofNew Businesses
In procurement agent services within Japan’s Grant
Aid Programme—which account for the largest
proportion of JICS’ current contracts—our operations are centered on the execution of equipment
projects covering 73 countries. Based on Japanese
government policies, such equipment includes
products manufactured by Japanese small andmedium-sized enterprises (SMEs), medical equipment, disaster reduction equipment, and equipment manufactured in local regions in Japan. To realize reliable and efficient procurement services, JICS
provides proposals that leverage equipment-related
information and other expertise the organization

A Message from the President

has built up over many years. In Grant Aid Projects
under Public–Private Partnerships (PPP), following
on from The Project for Reduction of Non-Revenue
Water in Mayangone Township in Yangon City,JICS won a contract for a second PPP project. Suchprojects utilize JICS’ know-how in the execution offacility projects.
In ODA Loan projects, projects for International
Agencies and Organizations and TechnicalCooperation-related projects, JICS is expanding its
scope of operations through independent bids
as well as bids made in collaboration withprivate-sector companies. Based on experience inprocurement-related operations in approximately
150 countries and an accompanying networkof contacts, JICS makes proposals between
aid-recipient countries and Japan from a neutral
position in order to execute projects with evengreater effectiveness. As a new initiative that willcontribute to the international community, JICS isproactively engaged in the development of overseas businesses through collaboration withprivate-sector companies.
We strive to meet the expectations of all ourstakeholders by aiming to provide services withthe greatest possible added value through diligent
efforts every day.
November 2017

Iichi Mishima
President
Japan International Cooperation System (JICS)

Contents

01 Profile of JICS
02 A Message from the President
03 Contents
Principal Activities in Fiscal 201604 Special Feature: Economic and Social Development Programmes
08 Development Cooperation and the Role of JICS in ODA
13 JICS’ Major Activities in Fiscal 2016
16 JICS’ Organizational Culture and New Business Initiatives
21 Expanding JICS’ Range of Operations through Collaboration with Private-Sector Enterprises
22 JICS’ CSR Work
Description of Projects
24 Countries Targeted for JICS’ Main Projects
26 Current Profit by Scheme and Client
27 Project Results by Country in Fiscal 201629 List of Projects in Fiscal 2016
29

Grant Aid

38

Technical Cooperation

38

Loan Aid

38

Multilateral Aid-Related Operations

39

Other Activities

39

Other Activities Integral to Fulfilling the Objectives of the Foundation

Reference Materials
40 Fiscal 2016 Business Report
41 Fiscal 2016 Balance Sheet
42 Fiscal 2016 Statement of Net Equity Increase (Decrease)

44 Organization Chart45 The Articles of Incorporation of Japan International Cooperation System
48 Compliance

Note Regarding Names of Grant Aid
Sub-Schemes in this Annual Report
Grant Aid sub-scheme names (classifications)used in this Annual Report, such as Non-Project
Grant Aid and Grant Aid for Community Empowerment, were discontinued as of March 2015.
From April 2015 onward, schemes for which
execution has been decided are classified by procurement method, such as Procurement Method
for Facilities, Materials and Equipment andProcurement Agent System, depending on thenature of the project in question. Within theseclassifications, JICS is mainly involved in Grant Aid
Projects with Procurement Agent System.
The execution of some of the projects cited inthis Annual Report had been decided in or prior
to March 2015. Consequently, we ask readers to
be aware that, for convenience, those projects
are cited and explained using the former subscheme names.

Contents

Japan International Cooperation System Annual Report 2017

43 Governance System3