Annual Report 2012

c1

Real Aid in Action
Japan International Cooperation System

Profile of JICS

Japan International Cooperation System (JICS) was the first foundation in Japan to specialize in procurement operations within
the field 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 programswith developing countries.
“Procurement” refers to the acquisition of and payment forgoods and services—such as transportation, design andconstruction—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 aims to become “the world’s best service provider in theinternational cooperation field” which is described in “Mission,Vision and Value” (MVV). In pursuit of this goal, JICS is building
up its base of expertise and knowledge while focusing on thedevelopment of human resources.

P Revenue by Type of ODA (FY2012) (Unit: thousand yen)

P Revenue by Client (FY2012)

Multilateral ODA

Bilateral ODA Programs with international agencies andorganizations, etc.
54,174.............2.0%

 Grant aid
2,334,271 ..... 87.5%
Grant assistance for the food security
project for underprivileged farmers(2KR) 5.5%
Grant assistance for the food aid
project (KR) 9.4%

Others 29,002 ..............1.1%

MultilateralODA

Ministry of Foreign
Affairs 0.3%

International
agencies andorganizations,etc. 1.5%
Japan International
Cooperation Agency(JICA) 16.8%

Cultural grant aid 2.4%

Bilateral ODA

Non-project grant aid 17.2%

 Loan aid (ODA loan)
140,942 ...........5.3%
 Technical cooperation
108,225 ..........4.1%

Others 1.6%

Bilateral ODA

Recipient governments 79.9%

Emergency grant aid 3.3%
Grant aid for conflict prevention
and peacebuilding 6.9%

Grant aid for disaster prevention
and reconstruction 1.7%
Grant aid for community empowerment 23.4%
Program grant aid for environment and climate change 16.9%
Other activities related to grant aid (studies, research, etc.) 0.8%

To coincide with its transition to the status of a general incorporated foundation, JICS conducted a bottom-up discussion process
encompassing its entire organization to determine MVV, which forms the fundamental starting point for all its strategies. The thorough adoption of this MVV by all employees is a key priority for JICS.

Mission, Vision and Value (MVV)

Definition of MISSIONMISSIONJICS will contribute to the peace and stability of the world
as a player in the international cooperation field.

VISIONJICS will set a goal to be the world’s best service provider
in the international cooperation field.

VALUE
Impartiality, fairness and transparency Maximizing the impact of the aid
JICS maintains an impartial stance to ensure fairness
and transparency.

JICS will make an effort to maximize the impactof the aid.

Reliability

Creation and Challenge

JICS will respect local input and build a trusting
relationship with its client.

J ICS will think outside the box and challenge
to create and provide new services.

JICS’ mission expresses the organization’s social raison d’etre and its philosophy regarding
its contribution to society. All JICS employees
undertake their day-to-day duties with a sense of
pride and responsibility for fulfilling JICS’ mission.

Definition of VISIONJICS’ vision articulates its medium-term goals forfulfilling its mission. Rather than being satisfied
with its current status, through the achievementof its vision JICS strives to become an organization that is trusted not only in Japan but worldwide.

Definition of VALUE

It is important that each employee adheres toJICS’ values as the organization strives to realize
its vision. All employees act in accordance withJICS’ four core values.

Contents

A Message from the President

Responding to changes in the external environment
by developing new business and strengthening our organization

02Special Feature

JICS’ first year as a general incorporated foundation

Transformation into
an Organization thatSeeks Challenges04

The Roleof JICS
in ODA08

JICS’ Major Activities in FY2012
Non-Project Grant Aid That Also Supports Recovery
in Japan’s Disaster-Affected Areas(Papua New Guinea)

Program Grant Aid for Environment and Climate Change“The Project for Introduction of Clean Energy
by Solar Electricity Generation System”
Grant Aid for Community Empowerment(Burkina Faso)(Bhutan)

Stakeholder Comment
JICS Recent Events
Countries Targeted for JICS Main Projects 
Revenue/Current Profit by Scheme and Client (FY2012)
Revenue/Current Profit by Function (FY2012)
Revenue/Current Profit by Type of ODA (FY1989–FY2012) Revenues/Current Profit and Expenditures by Fiscal Year Project Results by Country in FY2012 
List of Projects in FY2012 Grant Aid 
Technical Cooperation Loan Programs Business Contributing to the Promotion of the Appropriate and Efficient Implementation ofInternational Cooperation Programs Carried Out by International Agencies and Organizations,
Foreign Governments and Other Organizations Engaged in International Cooperation
Follow-up and After-care Activities Education and Support Promoting International Cooperation
Other Activities Necessary to Achieve the Purposes of the Foundation

in FY201214170119Contents

09

Grant Assistance for the Food Security Projectfor Underprivileged Farmers

Principal
13 Activities

Annual Report 2012(Jordan / Costa Rica)

Part 1212226282930313235354445

Japan International Cooperation System

The Environment for JICS and ODAPart 2
Description ofProjects

4545
45
46

FY2012 Business Report
47
FY2012 Balance Sheet
48
FY2012 Statement of Net Equity Increase (Decrease)
49
A Brief History of JICS
50 Reference
Board of Directors/Board of Trustees
51 Materials
Organization Chart
52
The Articles of Incorporation of Japan International Cooperation System (JICS)
53
Compliance
56A Message from the President

Japan International Cooperation System Annual Report 2012

Responding to changes in the external environment by developing
new business and strengthening our organization

A Message from the President

02

In FY2012, ended March 31, 2013, we, Japan International Cooperation System (JICS) commenced its
first year under the new status of a general incorporated foundation, and simultaneously launched its
new Medium-term Operational Action Plan. For JICS, this watershed point in our history is akin to a refounding of the organization, and we have worked to bolster both organizational management andexecution of our operations.
With regard to organizational management, we are aiming to strengthen organizational management capabilities and build a high level of reform awareness among staff. We conducted an audit toexamine the effectiveness of our organizational overhaul to enable swift responses to problems thathave been identified. On the basis of this review, we made further adjustments to some parts of ourorganization in July 2013. As a result, we have transitioned from our previous structure comprising twooffices, five departments and 18 divisions, to a new structure comprising six offices, four departments and 16 divisions. Based on our currentstructure, we will particularly focus on further reinforcing our corporate
planning and new business development capabilities.
Meanwhile, with regard to the execution of our operations, in addition to steadily carrying out our procurement agent services, which
are ongoing as part of our traditional operations, we put even greater
efforts than in the past into the development of new business. As well
as reviewing many aspects of our internal organization, we worked
to have more dialogue opportunities with external stakeholders, andthese efforts are making gradual progress.
In recent years, the environment in which JICS operates has undergone significant changes. I believe that JICS too must take a proactive
approach to adapting and changing itself. It is crucial for each individual working at JICS to think seriously about how we need to change
in response to changes in our environment. My view is that not only
people and other living organisms must respond to changes in their environment—organizations too
must either adapt or face severe consequences.
While maintaining an awareness of the challenging environment we face, in FY2013, ending March
31, 2014, we are pursuing the following core policies in our organizational management and execution of operations.
P Steady execution of JICS’ traditional operations and efforts to win contracts for new operations
P Maintenance of JICS’ business scale and strengthened measures to improve JICS financial base
Regarding these policies, particularly the development of new business and the strengthening of ourorganization, I wish to further elaborate.
Regarding our traditional operations, we are fundamentally focused on ensuring service quality, making proposals for improvement, maintaining competitiveness and receiving contracts on an
ongoing basis. However, we should not simply rely on JICS’ traditional operations, which are highly
dependent on increases in Official Development Assistance (ODA)-related budgets. Such a course
would likely make it difficult for JICS to reinforce its financial base.
For these reasons, we must change our mindset and examine our position from new perspectives.
Stepping outside of JICS’ original business domain, I believe that we need to study how to approachsuch new fields as Public–Private Partnerships (PPP) and loan aid program execution-related facilitation services. To enter new service fields, we recognize that there are many issues we must first overcome—such as implementing necessary initiatives, nurturing human resources and putting in place
the required structures. However, if we do not rise to the challenge of developing new service fields
with a strong sense of purpose and enthusiasm, I believe that JICS’ future outlook will not becomebrighter. We will not simply focus on short-term problems, but rather work also to realize our goals
from the point of view of the medium- to long-term development of the organization.
With regard to strengthening our organization, we are committed to providing high-quality services
in a competitive environment while embarking on new business that is different to those we havebeen involved in to date. Through these efforts, we must maintain our capabilities as an organization
to provide services of the world’s highest standard, and strive to be an organization valued by society
now and in the future. To realize these goals, it is necessary not only to cultivate the skills of individuals
but also strengthen the entire organization to enable JICS to demonstrate its full capabilities.
As I have discussed, we are very conscious of our tasks ahead to develop new business and bolster
our organization. Each individual JICS staff member will take up these challenges to make JICS evenstronger than it is today. In these endeavors, we sincerely look forward to your continued supportand encouragement.
Toru Nakatani President
Japan International Cooperation System (JICS)