ANNUAL REPORT2005

JAPAN INTERNATIONAL COOPERATION SYSTEM

Information on JICS

As of August 1, 2006

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: 176
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(Scheduled to be closed on
September 1, 2006)
Afghanistan OfficeHouse No.579, Street No.15,
Wazir Akbar Khan
Kabul 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 Ground-breaking ceremony for construction of local administrative offices (Maldives)② Patrol cars donated to the Mazar-i-Sharif police (Afghanistan)③ Bulldozer carrying out repairs for reconstruction work (Pakistan)④ Ground-breaking ceremony for rebuilding of school (Sri Lanka)

Contents
The JICS Vision ............................................................................................ 2
Preface–Taking On New Challenges .............................................................. 3
JICS Activities in FY2005 ............................................................................... 4
Part I General Remarks–Main Activities in FY2005
Special Feature: Post-disaster Rehabilitation Activities and JICS’ Role
Sumatra Earthquake and Indian Ocean Tsunami Disaster .................. 6
Indonesia ....................................................................................... 8
Sri Lanka ...................................................................................... 10
Maldives........................................................................................ 11
Pakistan Earthquake, October 2005 ............................................... 12
The Role of JICS in ODA ...................................................................... 14
Providing Assistance to More Countries in a Wide Variety of Projects
Angola (Grant Aid for Infectious Diseases Prevention and Treatment) ... 18
Guinea (Grant Assistance for Underprivileged Farmers) (2KR)(formerly Grant Aid for Increase of Food Production) ..................... 19
Mongolia (Food Aid) ..................................................................... 20
El Salvador (Cultural Grant Aid) .................................................... 20
Afghanistan (Non-project Grant Aid, Emergency Grant Aid, others) .. 21
Iraq (Emergency Grant Aid, Grant Aid for Conflict Prevention
and Peacebuilding)........................................................................ 22
Support Activity for JICA Offices (Technical Cooperation)................. 23
Document Examination and Seminars (Yen Loans).......................... 24
Grant Aid for Japanese NGO Projects .............................................. 24
JICS Support for NGOs.................................................................... 25Creating the Right Organization for an International
Procurement Management Body ........................................................... 26
JICS –Active in Many Areas .................................................................. 28
Part II Description of Projects
Countries Targeted for JICS Projects ............................................... 30
Revenue by Function (FY2005)....................................................... 32
Revenue by Scheme (FY2005) ........................................................ 32
Revenue by Counterpart (over the past three years) ......................... 33
Procurement Management for Grant Aid Projects............................. 33
Project Results by Country in FY2005 ............................................. 34
List of Projects in FY2005–Grant Aid .............................................. 37
List of Projects in FY2005–Technical Cooperation .......................... 44
List of Projects in FY2005–Loan Programs ..................................... 46
Other Activities Related to International Cooperation ....................... 47
Reference Materials
Changes in Revenues and Expenditures by Fiscal Year ..................... 48
FY2005 Business Report ................................................................ 49
FY2005 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-servicecorporation.
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.

Taking On
New Challenges

TThe Japan International Cooperation System(JICS) was established as a public-service
foundation in April 1989 upon authorization by
the Minister for Foreign Affairs. As part of Japan’s
Official Development Assistance (ODA), JICS aims topromote high-quality international cooperation by
providing appropriate and effective assistance inimplementing bilateral grant activities. Since its establishment, JICS has been able to make its own
modest contributions in the field, with the guidanceand support of the Ministry of Foreign Affairs, the Japan
International Cooperation Agency (JICA) and others,
and with the cooperation of various foreign government organizations and ODA-related bodies. I wish toexpress my sincere appreciation for the support andcooperation these parties have extended to JICS.
In order to proactively respond to a changing
environment, JICS adopted the following policies for its
activities in 2005: responding to diversified needs ininternational aid; building a stronger organizationalframework appropriate for an international
procurement management agency; and communicating
its message more effectively in order to stimulatebroader understanding of its work.
In particular, I would like to highlight how JICS for
the first time implemented procurement of consultant
services for building facilities through conducting
international competitive bidding, as part of Japan’s
non-project grant aid for the region affected by themajor earthquake off the coast of Sumatra and tsunami
in the Indian Ocean on December 26, 2004. In this aid
activity we came up against many new obstacles but
learned lessons that imparted valuable experience.
Since then we have worked hard to establish andstrengthen our system for responding appropriately toneeds, adopting JICS Guidelines for the Procurement ofConsultant Services in March 2006 among othermeasures. Building on the experience acquired
through post-tsunami support, we were able toconduct procurement management in timely fashionfor emergency grant aid following the earthquake inPakistan on October 8, 2005.
In addition to these activities, JICS was involved in a
broad range of grant aid, technical cooperation andother aid activities, including those connected torehabilitation in Afghanistan and Iraq.
To familiarize the public with the activities of JICS,
we revamped the content of our public relations
bulletin and changed its name from “JICS News” to“JICS Report” beginning with the July 2005 issue. In
the new format, each issue presents an in-depth
exploration of a specific theme. We are also improving
our education activities by briefing middle school
students who visit JICS on our activities, accepting
university students for short-term internships and soon. We have also set up a task force charged withexamining how we can deal with and respond toongoing changes in the ODA environment.
JICS will continue doing its best to further efficientuse of Japan’s ODA and make a name for itself as areliable organization, based on the JICS Vision and theJICS Code of Conduct. This Annual Report describes
JICS project results and activities in fiscal 2005 and I
hope that it will give you a better understanding of ourorganization’s work.

Takahisa SasakiPresident
Japan International Cooperation System (JICS)
August 2006

3

JICS Activities in FY2005
Main JICS Activities

Related Developments in Japan and Abroad

Akira Hasumi, vice chairman, begins to serve as interim chairman (Shigeru Ishikawa,previous chairman, resigns March 31).

Asia/Africa Leaders’ Summit (Jakarta)

JICS Code of Conduct adopted

Iraq transitional government formed2005
AprilMayJune1

8Activities of Japanese Small Arms Control support team (JSAC) in Cambodia presented atinternational NGO conference

10

Students from Onizaki Junior High School (Aichi prefecture) visit JICS

14JICS Vietnam office closes

31

JICS Cambodia office closes

1

JICS Jordan office opens

8Students from Minami Joyo Junior High School (Kyoto prefecture) visit JICS

23

1st regular meeting of the JICS Board of Trustees and Board of Directors for FY2005
Hiroshi Matsumoto chosen to be chairman of the Board of Trustees

28

Fire fighting vehicles procured for Iraq under emergency grant aid arrive at destination

August22 (to September 2) Two students, one each from Ibaraki University and Osaka Keizai University, take part in theJICS internship program

September

7

FY2005 meeting and discussion with NGOs in the JICS support for NGOs program

12 (to 22)

One student, from Ritsumeikan University, takes part in the JICS internship program

20

Contract signed for project management of the FY2005 Police Training & Mentoring Programin Al-Muthanna Province under grant aid for conflict prevention and peacebuilding

30

Japan International Cooperation System Annual Report 2004 issued

1-2

JICS participates in Global Festa Japan 2005

17

Procurement management contract signed for emergency grant aid for Pakistan earthquakerelief

25

Iraqi Minister of Municipalities and Public Works visits JICS

November

12

JICS participates in International Cooperation Career Fair 2005

December

1

Procurement management contract signed for Afghanistan—FY2005 sector program grant aid:
Road Improvement Program in the city of Mazar-i-sharif

15

Ground breaking ceremony held for Indonesia—FY2004 non-project grant aid: Repair work totrunk roads in Aceh Province

10

JICS selects groups to receive assistance under its FY2005 support for NGOs program

October

In its “Basic Policies for Economicand Fiscal Policy Management andStructural Reform 2005,” the Cabinet
recommends reform and strategic
expansion of ODA projects
July: G8 Summit Meeting held(Gleneagles, Scotland)

Taro Aso named Japan’s foreign
ministerMajor earthquake hits Pakistan
The Japanese Ministry of Foreign
Affairs releases a paper titled“Evaluating and Reforming ODA:
Toward Higher-quality ODA”
The Ministry issues an “Interim
Report on Bilateral Grant Aid for theMajor Earthquake off the Coast ofSumatra and Tsunami in the Indian
Ocean”

2006
January

JICS selects groups to receive assistance under its NGO training support program

430 (to February 6)

Trustee Ryokichi Hirono goes on an inspection tour in AfghanistanFebruary

4, 5

JICS participates in the One World FestivalMarch

13

Procurement management contract signed for Pakistan FY2005 non-project grant aid

15

2nd regular meeting of the JICS Board of Trustees and Board of Directors for FY2005

22

Contract signed for project management of Cambodia FY2005 grant aid for research: Research
Project for Developing Mine Clearance Related Equipment

28

JICS Guidelines for the Procurement of Consultant Services Drawn Up

Japan’s Council on Economic andFiscal Policy announces directions
for new ODA strategies in discussionsof how overseas economic cooperation
should be conducted