JICS INFO-PACK
Japan International Cooperation System (JICS)

Loan Aid (ODA Loans)funds and the appropriate supervision of the projects in theBorrower’ s country and also bring upon their ownership andindependence during the process. The Borrower utilizes the funds
to implement projects for the development and improvement tosocial infrastructures such as electricity, water supply and sewage
facilities, transportation and communication services.
For the implementation of projects, the Borrower is responsible
for all procedures to be in accordance with the provisions set forthin the Guidelines for Procurement under Japanese ODA Loans(hereinafter “JICA Guidelines” ) whereby ensuring fairness, transparency, economy, and efficiency throughout the process.

1. Japanese ODA Loans
The Japanese ODA Loans are one of the schemes of ODA(Official Development Assistance) and implemented by the Japan
International Cooperation Agency (JICA), through which the Japanese government assists the social and economic development of
the Borrower’s country by means of loan with long repayment
periods and low interest rates. ODA Loans, which require repayment, unlike Grant Aid, promote the effective use of the borrowedtion, Project Completion/Ex-post Evaluation and Follow-up. Since
lessons learned from the Ex-post evaluation and monitoring after
project completion provide useful information, and are fed backto the preparation of future projects, the sequence is called the“Project Cycle”.
Out of the steps of the Project Cycle, JICS has provided thefollowing services under contract with JICA.

2. Project Cycle of Japanese ODA Loans
The Japanese ODA Loans usually follow a sequence of standard
procedures consisting of 6 steps: Project Preparation, Request ofODA Loan Projects, Examination/Appraisal and Ex-ante Evaluation, Exchange of Notes/Loan Agreement, Project Implementa-❶ “Primary Check for Procurement-related Documents”––– reviews the compliance of Procurement-related Documents with JICA
Guidelines and JICA Standard Documents❷ “Facilitation of Executing ODA Loan Projects”––– supports JICA in the facilitation of procurement and disbursement procedures❸ “Ex-post Procurement Audit”––– ensures the compliance of the Borrower’s procurement procedures with the Loan Agreement andJICA Guidelines

Project Cycle of Japanese ODA Loans

Request of ODA
Loan Projects

ProjectPreparation
Ex-post Procurement Audit:
Visit to Project Site in Uganda

Project Completion/
Ex-post Evaluation
and Follow-up❶

Primary Check for
Procurement-related Documents

Examination/Appraisal and Exante Evaluation

Primary Check for
Procurement-relatedDocuments:
Review session at JICS
Headquarters

Facilitation of Executing ODA Loan Projects:
Explanation of disbursement in Uganda❸

Ex-post Procurement
Audit

Exchange ofNotes/LoanAgreement

ProjectImplementation❷

Facilitation of Executing
ODA Loan Projects

JICS INFO-PACK❶ Primary Check for Procurement-related Documents
The objective of the Primary Check is to screen the procurement-related documents which have been prepared by the Borrowers after conclusion of theExchange of Notes and the Loan Agreement. During the process of selection ofConsultants and Contractors, a number of documents must be prepared by theBorrowers in accordance with JICA Guidelines. These documents include “Requestfor Proposal”, “Contract for the employment of the consultants” for the selection ofconsultants; and “Prequalification Documents”, “Bid Documents”, “Contract for theprocurement of goods and works” for the selection of contractors, to name a few.
JICS performs the primary check of these documents to examine whether they
are appropriately prepared by the Borrowers, i.e. whether the documents are incompliance with JICA Guidelines.
Review session at JICS Headquarters❷ Facilitation of Executing ODA Loan Projects
The progress of projects may be hindered in newly Borrowing countries, because
the executing agency of the Borrower is not accustomed to the procedures, and/or
the procedures for the internal approval are very complicated. With the aim to facilitate the smooth progress of projects, JICA dispatches experts to the Borrower’s countries in order to identify factors which prevent the implementation of projects andprovide solutions to these issues. The services involve (1) formulation of new projects,(2) facilitation of procurement procedures, (3) facilitation of disbursement procedures, (4) improvement of repayment procedures, and (5) support for investment
estimation, etc.
JICS has dispatched experts for the facilitation of projects to Uzbekistan in2012 and countries in Sub-Saharan Africa in 2013 under contract with JICA.
Presentation of disbursement method in Kenya❸ Ex-post Procurement Audit
The objectives of Ex-post Procurement Audit are to ensure that (1) the procurement procedures were performed by the Borrower in accordance with JICA Guidelines, and (2) the confirmation and concurrence procedures for the procurementrelated documents between the Borrower and JICA were properly made in accordance with the Loan Agreement.
JICS has conducted several Ex-post Procurement audit works under contract withJICA. While most of the Ex-post Procurement Audit is conducted in Japan, on-site
audits are implemented for selected projects. Results of the audit, issues and weaknesses in the procurement procedures are reported to JICA.

On-site audit in Kenya

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
URL: http://www.jics.or.jp/November 2015