May 2008
JAPAN INTERNATIONAL COOPERATION SYSTEMSCHEME Grant Assistance for Underprivileged Farmers (2KR)
Grant Assistance for Underprivileged Farmers (2KR) is aid provided for purchasing
agricultural equipment such as machinery and fertilizer to help, in particular and from theviewpoint of human security, underprivileged and small-scale farmers improve theirself-sufficiency ratio of food crops (rice, wheat, maize, etc.) in developing countries sufferingfrom food shortages. This grant aid was started in 1977 as grant aid for increase of foodproduction. In 2005, the grant name was changed to Grant Assistance for Underprivileged
Farmers, to support the self-help efforts and independence of underprivileged farmers indeveloping countries. Grant Assistance for Underprivileged Farmers (2KR) is implemented
yearly in Asia, Africa, Latin America, Eastern Europe, the CIS states, and others.

JICS’ Role
Since it was founded in 1989, JICS has been delegatedby the Japan International Cooperation Agency (JICA)
to carry out studies in Japan and on site.
In addition, since FY1997 JICS has been acting as aprocurement management agent under contract with
developing countries’ governments, to contribute to fairand rapid procurement of agricultural equipment. JICS
also acts as the secretariat for intergovernmental
committees that follow up on how the equipment
procured was distributed and monitor accumulation ofcounterpart funds.
[Counterpart funds]
Developing countries’ governments set aside local currency
funds equivalent to a certain amount of the value of equipment
procured by grant aid. These funds are then used for local
economic and social development projects focusing on
supporting small-scale farmers
and implementing measuresagainst poverty, after
consultation with theJapanese government.

Madagascar Rice planting. Madagascar has the largest per capita riceconsumption in the world

Yemen Committee
composed of Yemen andJapanese government
officials

Albania Handover
ceremony for agriculturalequipment procured by
JICS

Bhutan Stamps issued to commemorate the 20th anniversary of grant
aid for increase of food production (2KR) to Bhutan

SCHEME Grant Assistance for Underprivileged Farmers (2KR)

Flow of Operations
Requests foraid from
developing
countries

Preliminary
screening

StudyFinalscreening by
Ministry ofForeign Affairs

CabinetdecisionAgreement
betweengovernments

Procurement
management
service

Advisory
services inconnection withthe Committee

Completion

Operations handled by JICS

No. of Projects (FY2006)
No. of projects, by region

Europe3Middle EastAfrica

417

Asia

Latin America

105

Total:

41(including two projects implemented in
two or more countries across regions)

Grant Assistance for Underprivileged Farmers (Moldova)
Project outline:
Procurement of agricultural machinery to help the recovery of Moldova's stagnant agriculture and stabilize productivity.

More machines procured by repeating the process of procurement and sales.
The Japanese government began grant aid for increase of food production (2KR, currently Grant Assistance for
Underprivileged Farmers) in 2000 to help the recovery of Moldova's stagnant agriculture and stabilize productivity.
JICS, as a procurement agent implementing procedures for purchasing agricultural machinery on behalf of the Moldovan
government, has procured machinery such as tractors and combines on six different occasions.
The 2KR project stipulates use of counterpart funds (accumulating and using the proceedsfrom the sale of the procured machinery and equipment) in the recipient country in order toensure a more effective assistance outcome. This method has worked especially well in theRepublic of Moldova.
First, a cumulative total of 296 tractors procured and delivered were sold within the country,and based on the proceeds of those sales, additional tractors were procured and sold. By
repeating the process of procurement and sales, 1,700 tractors, about six times the original
number of tractors procured, and a total of 2,135 pieces of agricultural machinery, including
combines, had been procured by 2005.
Tractors procured by JICS

Japan International Cooperation System (JICS)
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/