Part I General Remarks–Main Activities in FY2005

SpecialFeaturePost-disaster
Rehabilitation
Activities and
JICS’RoleThe December 2004 earthquake off the coastof Sumatra and tsunami in the Indian
Ocean caused unprecedented damage over ahuge area. Japan had been involved in post-disaster rehabilitation activities several times throughout
the world before, but this was our first experience withdamage on such a broad scale, diverse and constantly changing needs, and the need for speedy and flexible response.
JICS, acting as procurement agent for Indonesia, Sri
Lanka and the Maldives, gained valuable experience,
Sri Lanka
Colombolearning how to move more quickly and flexibly while
Dead and missing: 43,000
Acehremaining fair and securing competitiveness in procureMale
Earthquake
ment, and how to handle projects in the hands of local
epicenter
Maldives
consultants and builders. The know-how accumulated on
Dead and missing: 100
this occasion was put to good use in subsequent relief
efforts for the earthquake in Pakistan in October 2005.
Indonesia
Dead and missing: 225,000
This section of the Annual Report describes the role played by JICS in Japan’s
assistance in response to the Major Earthquake off the Coast of Sumatra andTsunami in the Indian Ocean and the Pakistan earthquake.

Jakarta

Roadbed improvement in Indonesia

Sumatra Earthquake and Indian Ocean Tsunami Disaster

Responding Quickly and Flexibly to Needs While
Securing Fairness and CompetitivenessThe 9.0 magnitude earthquake off the coast of Sumatra
on December 26, 2004 triggered a massive tidal wave in
the Indian Ocean. A survey by the International Monetary
Fund and the World Bank made public in February 22,2005 established that as a result of this disaster 300,000
people were dead or missing, 1.5 million people were displaced and damages totaled more than 753 billion yen.
The unprecedented scale of damage startled the world.
The Japanese government announced that it would
provide non-project grant aid totaling 24.6 billion yen to6

Indonesia, Sri Lanka and the Maldives, and agreements
were signed with the governments of the respective countries on January 17, 2005. Following this, JICS made procurement management contracts with the three countries’
governments.

Flexible Response with Non-project
Grant Aid
In the case of non-project grant aid, a “long list” of goods
and services is decided upon when Japan provides theSpecial Feature

Post-disaster Rehabilitation Activities and JICS’ Role

dures, reporting on their progress, and so on.

Needs Changing Day by Day

A rebuilt school handed over to Sri Lanka residents

funds, and after Japan and the recipient government haveagreed on the list’s contents, items to be provided are
selected from the list and specific uses decided upon for
those items. This system makes it possible to respond flexibly in accordance with the counterpart government’s
requirements and in coordination with other donors toappropriately meet the varied and rapidly changing needsof the affected population.
Non-project grant aid is actually for the purpose of
supporting developing countries’ efforts to improve theirsocioeconomic systems rather than for funding specificprojects; it serves as a type of foreign currency support forimporting goods. In the case of this disaster, non-project
grant aid was applied flexibly by allowing funds to be used
for local procurement and also for procurement of services, with the goal of providing rapid emergency response
and assistance for relief efforts.
Under these circumstances, JICS also undertook tocarry out its own survey of conditions in the affected areasat an opportune moment immediately after the disaster.
Actual implementation for various projects is officiallydecided in bilateral government meetings (Committee)
held as required. The affected countries’ governments
decide what they need help with, assign priority levels anddiscuss these projects in Committee meetings. Their needs
cover a broad range, and after discussions in Committee
meetings aid is directed to the highest-priority areas.
Committees do not simply select which projects will be
undertaken; they also keep track of progress and identify
problems that may arise. Committee participants are thecounterpart government’s ministry or agency in charge of
coordinating assistance and other ministries, as well as
the local Japanese embassy. JICS takes part as an adviser
on procurement issues, supporting procurement proce-

Non-project grant aid in response to the Major
Earthquake off the Coast of Sumatra and Tsunami in the
Indian Ocean differed in a number of ways from othernon-project grant aid or Japanese ODA proffered until
then.
First, due to the scale of the disaster, the scope of procurement was very broad compared to the usual non-project grant aid, which included repairing schools and publichealth centers to restoring roads or embankments, necessitating procurement of the services of consultants andbuilding contractors. In some cases, needs were determined or restoration plans drawn up on the basis of JICA
emergency development studies. Further, various projects
proceeded at different speeds but nevertheless had to be
carried out simultaneously.
Another difference was the unexpectedly rapid shift
from emergency needs to reconstruction needs, anddespite the quick changes we had to respond appropriately.
JICS was expected torespond quickly and flexibly, but since these projects
were funded using publicmoney provided for developing countries, procedures ensuring fairness,
impartiality, transparency
and competitiveness werealso important. Using allof our resources to the full,
we carried out projects balancing the need for speedwith fair procedures.
Additionally, when local consultants and builders wereused, they were sometimes unaccustomed to Japanese aidrelated contract procedures and at times did not fully
understand the extent of process management and quality
control required of them. That problem was addressed bystationing Japanese experts to inspect sites and hold meetings with builders to provide appropriate instructions andtechnical advice as well as project supervision.
Through this experience, JICS gained precious knowhow— how to be fast and flexible while ensuring fairness
and transparency, how to handle local procurement, andhow to deal with and supervise local builders and respondto unpredictable situations—knowledge that will certainly be useful in relief efforts elsewhere in the future.

Construction of a fishinglamp workshop inIndonesia

7Part I General Remarks–Main Activities in FY2005

Indonesia
Providing Assistance in Many
Areas
Indonesia was the country most severely affected by theearthquake and tsunami disaster, with an estimated
225,000 persons dead or missing as of February 1, 2005.
Proximity to the earthquake’s epicenter meant that there
was severe damage over an area stretching 800 km along
the coast.
The Japanese government agreed to provide 14.6 billion
yen in non-project grant aid and entered into a formal
agreement to that effect with the Indonesian government
on January 17, 2005. JICS made a procurement agent contract with Indonesia the same day. JICS secured office spacein Jakarta, the capital of Indonesia, in late January andshortly thereafter opened another office in Banda Aceh, thesite of reconstruction, for handling support activities.
The reconstruction blueprint for Aceh and Nias Island(North Sumatra state) was drawn up by Indonesia’s
National Development Planning Agency (BAPPENAS) in
cooperation with relevant government organizations andNGOs and all assistance activities for the affected areas arebeing carried out according to this blueprint.
In the affected areas, much of the basic infrastructure
was wiped out, and public security deteriorated due to the

Building an embankment for a road detour

confusion in the aftermath of the disaster. Furthermore,
Aceh province was closed to foreigners until shortly before
the earthquake and tsunami due to the activities of theFree Aceh Movement (GAM). This situation made it difficult for Japanese and other foreigners, as well as forIndonesians living in other parts of the country, to carryout adequate surveys of local conditions. The scale of thedisaster, and the unprecedented number of donors andNGOs rushing into the area to extend support, made coordination difficult. In the initial stages, especially, it was
extremely difficult to get an accurate picture of where
relief was needed and which areas already had sufficientrelief supplies, with conditions changing almost hourly.
Conditions also made it very difficult to draw up thereconstruction blueprint.
The rehabilitation works for which Japan would provide assistance were decided upon in discussions between• Main Relief Undertakings and Items Procured
Area
Medical care

Broadcasting

Projects
Emergency relief supplies (drugs/equipment)
Reconstruction of public healthcenters
Support for radio and television
broadcasting

Transport

Emergency road repairs

Infrastructure

Emergency repairs to water
channels (embankments), etc.
Preparation of drainage facilities,
development of area model

Daily living

Restoration of running water andsanitation facilities
Reconstruction of orphanages
Support for fisheries

Community care
Industry

Restoration of markets

8

Education

Support for restoration of universities, etc.
Support for vocational training
schools
Support for dormitories

Publicadministration

Plan for restoring land registers

Items Procured
Drugs (250 types), medical equipment (110 types), monitoring how these items were used
Repairs to 5 public health centers, ambulances, lab equipment for research, medical kits,mobile treatment units, motorcycles, etc.
Broadcasting equipment for radio stations (furniture, news-gathering vehicles, emergency
equipment, rehabilitation equipment)
Broadcasting equipment for television stations (news-gathering vehicles, emergency
equipment, rehabilitation equipment), repair work on radio station buildings
Construction equipment, supplies (rock-filled bamboo embankment baskets, corrugated pipes),rebuilding of road (between Meulaboh and Calang, etc.)
Construction equipment, supplies (rock-filled bamboo embankment baskets, sandbags), 1
excavator, 2 mobile drainage pumps, water channel and embankment construction
Construction of 3 emergency shelters, road construction (planned; 3 roads totaling 3.7 km),rebuilding of drainage channels and construction of new channels (planned), repairs topumping stations (planned; 4 locations)
Construction equipment, sanitation facility equipment (sewage collection vehicles, trashcollection vehicles, fire trucks, trucks), laying 200 km of water pipes
Repairs to and rebuilding of orphanages, facilities for orphanages
Fish farming equipment (trucks, construction equipment, vehicles), building of fish farming
facilities, fishing equipment, fishing boats, building of facilities for the Fishing Bureau, ice plant
equipment (ice makers, freezers, generators)
Rebuilding 8 traditional retail markets, building 1 wholesale market, rebuilding of weights andmeasures facility, set of weights and measures equipment
Lab equipment for research labs, chemical reagents, books, construction of university facilities
13 mobile vocational training units, 6 sets of equipment for vocational training centers, repairs tovocational training centers
Classroom equipment for madrasah (Islamic religious schools) and pesantren (traditional
Islamic boarding educational institutions), study equipment for public schools, repairs andreconstruction work for public schools
Restoration of land registers, construction of building housing freeze-drying equipment,
warehouses for storing land registers, equipment for putting records into digital format

Special Feature

the Japanese and Indonesian governments (Committee
meetings). The Rehabilitation and Reconstruction Agency
for Aceh and Nias (BRR) was set up in April to coordinate
support offered by other national governments, international organizations, NGOs and others. The 14 projects forwhich Japan was asked to provide support were selected to
avoid overlaps with other donors. However, Japan is also
working with other donors and NGOs, for example helping
to support vocational training schools through grant aid
for mobile vocational training units, along with equipment for and repairs to vocational training centers, with
the ILO providing operating funds for the centers and theGerman Technical Cooperation Organization (GTZ) andIndonesian government corporations drawing up training
programs and training personnel. Working with NGOs,
Japan provided non-project grant aid for repairs toorphanages operated by those NGOs.
The 14 projects for which Japanese aid was requested
ranged from medical care, broadcasting, transport andinfrastructure to daily living, community care, industry,
education and public administration. Many of the projects
involved construction, for example, rebuilding roads, andrepairing or building various facilities. In some cases,
Japan’s flexible and rapid response with non-project grantPost-disaster Rehabilitation Activities and JICS’ Role

aid made it possible to take on projects, such as the plan
for restoring land registers, which would have taken toolong for other donors to execute.
In the emergency relief goods category, procurement ofdrugs and medical equipment, and delivery of these goods
after monitoring and verifying how equipment and supplies already procured were being used, was completed byMarch 2006. Contracts for various projects were also madewith suppliers, consultants and contractors by March 2006
and work begun. For example, repairs to the 122 km long
stretch of road between Calang and Meulaboh, two cities
on the west coast of Aceh Province, got underway on
December 15, 2005.
The focus of JICS operations shifted over time, fromassessing initial needs, ascertaining the details of projects
and working to procure emergency relief supplies, to work
involving supervision of several facilities-type projects.
The head of BRR, Kuntoro Mangkusubroto, praised
JICS for having made a great contribution to improving
local government procurement and operational capabilities and expressed his gratitude toward the Japanese government, saying “The Indonesian government and local
inhabitants will never forget the aid we received when we
needed it most.”

Local Report by JICS staff

Helping Fishermen
Help Themselves
Handing Over Fishing Boat Engines
The fishing boat engines eagerly awaited by fishermen
finally arrive at Aceh Port. Each engine is unloaded
from the container and checked against the contract
list. A crowd of fishermen, drawn by the news that theengines have arrived, has gathered and looks on withcuriosity. I report that the check has been completed
and shake hands with the supervisor on the Indonesianside, signifying that the handover has taken place.
These engines are just one of many items on the listthat JICS has helped procure, but it’s an emotional
moment for me.
Across the way, a fishing boat maintenance andinspection workshop is under construction; the walls
are already up. Smiling to myself, I think, “Finally, thelocal people will be able to see a building taking shape,”and remember all that has gone on before.

Difficult Job, Positive Memories
From Jakarta, it’s a four-hour flight to Aceh. Damage
from the tsunami had made communications difficult,and it often happened that the perceptions and ideasof the central government did not match local needs,
or that there were differences of opinion in how toproceed. Checking specifications for equipment andfacilities involved discussions in English, a foreign
language for both sides; it was sometimes frustratingwhen we failed to make each other understood.
There were endless meetings, to avoid duplication ofaid with other donor countries. I recall many such
incidents, but when I see something taking concrete
shape, I can look back fondly even on the troubles
and frustrations I experienced.
The reconstruction work is ongoing, and someconstruction hasn’t even begun yet. It’s too early torelax, but the happiness I feel at seeing even partiallycompleted projects makes me wonder how I will feel
when it’s all
done. Here on
the front lines,
we keep working
hard so that webuild something
we’re proud ofand that will help
local people live
more comfortably.

9Part I General Remarks–Main Activities in FY2005

Sri LankaFirst Shipment Arrives inMarch 2005
Approximately two-thirds of the Sri Lanka’s coastline wasravaged by the tsunami resulting from the earthquake off
Sumatra. Roads, railway tracks, schools, hospitals, police
stations, hotels, shops, homes, markets and other buildings
were destroyed by the tsunami, which left over 38,000 deadand 5,000 missing. More than 800,000 people were affectedby the disaster. There are many fishing villages along thecoast, and over 40,000 out of the 80,000 dwellings that weredestroyed were fishermen’s homes. Many of those fishermenbarely eked out a living at fishing, so the loss of fishing boats
and tackle was especially disastrous for them as it robbed
them of their means of livelihood.
The Japanese government decided to provide 8 billion yen
in non-project grant aid and signed an agreement to that
effect with the Sri Lankan government on January 17.
Following this, JICS signed a procurement management
contract with the Sri Lankan government on February 3,
secured office space in Colombo and began its work.
The first shipment, consisting of nine used sewage collection vehicles donated by the city of Yokohama, arrived at theend of March 2005. These vehicles, together with 30 watertanks procured in Sri Lanka, were donated to the Sri Lankan
government. Technical assistance for maintenance andupkeep of sewage facilities was also provided to ensure a sanitary environment in refugee camps and temporary housing.
Following provision of this urgently-needed equipment andassistance, reconstruction of Deepankara Primary School in

Hambantota in southern Sri Lanka began in June 2005. The
school building was completed in January 2006, and repairs
to or rebuilding of facilities, roads and other infrastructurecomponents is continuing. Among primary and middle
schools surveyed by JICA, it was determined that 13 neededrebuilding; reconstruction work for other schools has begun
following start of construction on Deepankara Primary
School and is expected to be completed by April 2008.
With the aim of preventing similar disasters in the future,
Sri Lanka forbade construction along the coastline and is
now working on the details of a township reconstruction
plan, mainly town planning to rebuild dwellings for those
who lost homes. Construction of Japan-Sri Lanka “friendship villages” in three locations, to provide housing for thosein need, also started in January 2005. In addition to construction of relocated dwellings, these villages will haveroads, running water, kindergartens, community halls, post
offices, community administration offices, small marketplaces and other public facilities. These projects are based onan emergency development study carried out by JICA to survey the extent of damage and reconstruction needs, and on a
housing reconstruction plan proposed by JICA to the Sri
Lankan Ministry of Housing. We hope that this joint project,involving technical cooperation from JICA and non-project
grant aid, which does not simply prepare a community living environment but was also conceived to allow resident
participation in upkeep and maintenance of the facilities,
will have a synergy effect.
JICS also provided support for a wide range of projects inthe areas of sanitation and daily living, education, transportation, health care, fisheries, public safety and administrative services, as described below.

• Main Relief Undertakings and Items Procured

Public security
Education
Fisheries

Projects
Plan for providing used sewage collection
vehicles (transport, instruction in vehicle maintenance, spare parts) and high-pressure washers
Plan for providing water trucks and water tanks
in refugee camp and temporary housing areas
Support for housing for people
affected by the disaster
Restoring the Matara district aqueduct and plan
for restoring potable water to affected areas
Plan to support construction of
sewage treatment facilities
Electricity supply to refugee camps and temporary housing
Plan for purchasing heavy construction machinery and spare parts for existing machinery
Repairing bridge pillars and causeways
Plan for rebuilding 6 police stations
Plan for rebuilding 13 elementary and middle schools
Plan for buying fisheries equipment

Medical care
Publicadministration

Plan for purchasing medical care-related equipment
Provision of vehicles to administrative officers coordinating restoration projects in affected provinces

Area
Sanitation,
daily living
Daily living

Transport

10

Items Procured
Shipping for 9 sewage collection vehicles (provided gratis by the city of Yokohama), sets ofspare parts for the vehicles, dispatch of sewage collection technicians, 9 high-pressure washers
11 water trucks, 30 water tanks
Construction of Friendship Villages (construction of relocation housing, organizing public
infrastructure facilities)
Repairs to aqueduct (30 m X 1), water pipes, 60,000 water meters
2 sewage treatment facilities
100 small electricity generators
Construction equipment (1 bulldozer, 2 excavators), sets of spare parts needed for construction
machinery
Repairs to 5 bridge pillars in the south and 4 causeways in the east
Construction of police stations (police boxes) in 6 locations
Construction of 13 schools
11 container workshops, spare parts for outboard motors, materials for repairing fishing boats, labor costs forrepairing fishing boats, 1,772 small fishing boats, fishing equipment, 300 outboard motors, 3 fishing vessels,
11 container-type ice makers, 12 cold storage units, 30 refrigerated vehicles, repairs to fishing ports
5 mobile testing units, sets of medical equipment for 33 hospitals, equipment for anti-rabies measures
64 pickup trucks, rental of 22 pickup trucks

Special Feature

Post-disaster Rehabilitation Activities and JICS’ RoleThe Japanese government provided aid in
coordination with FAO.
Assistance Mainly for Fisheries
Regarding repairs to
and Public Infrastructure
fishing boats, theMaldives Ministry of
The Maldives is a small island country encompassing
Fisheries, Agriculture
1,190 islands, 198 of which are inhabited. The mainand Marine Resourcesindustries there are fishing and tourism. Approximately
and FAO surveyed damone-third of the population of 290,000 was affected by theage to the boats andtsunami resulting from the earthquake; on some islands,
JICS procured the necthe entire population was forced to relocate. The mainessary repair parts,
industries were also severely disrupted, with 21 of thewhich were handed overMaldives’ 87 resort facilities experiencing damage andDelivery of farm machinery and trainto FAO. FAO then carried ing in its use
many small and medium-size fishing boats used for theout technical guidance
mainstay activity of pole-and-line fishing for bonito
and repairs, using those parts. For provision of fishing
destroyed. In the agricultural sector, over 4,000 farmers on
tackle, the Maldives Ministry of Fisheries, Agriculture and
70 islands lost their farming equipment or had their crops
Marine Resources conducted a survey of damages. Baseddamaged, and the soil was also severely affected by salton this assessment, FAO supplied snorkels, hooks fordamage.
bonito fishing lines and other simple supplies, while JICS
The Japanese government decided to provide 2 billion
was in charge of procuring poles for bonito fishing,yen in non-project grant aid, and the agreement to thispumps for spraying and draining seawater, electric genereffect was signed with the Maldives government on
ators and other equipment. In the agriculture sector, theJanuary 17, 2005. Following this, JICS signed a procureMaldives Ministry of Fisheries, Agriculture and Marine
ment management contract with the Maldives governResources and FAO handled a needs study and agriculturment on the same day.
al training, while JICS arranged for procurement of farmThe first relief goods coordinated by JICS, 15 wirelessing equipment. FAO is conducting all of these projects
radio sets for fishing vessels, arrived at Wilingili Islandusing special funds provided by Japan for post-tsunami
near the capital of Male in May. This was the first equipreconstruction.
ment to reach the Maldives with JICS acting as procureThe public administration buildings to be constructed
ment management agent, which oversaw tendering andon Gan and Fonadu islands have been designed to be
selected a local company to obtain the goods.
large enough to serve the needs of the influx of population
Wireless radio equipment is essential for fishermen,
expected on these islands due to relocation from otherwho rely on it to fish safely and efficiently. Delivery of
islands decimated by the tsunami. The buildings, on eleother equipment procured—spare parts for fishing boatvated foundations, are two stories tall so that they canengine repairs, propellers and shafts—was completed bydouble as shelters in case of a tsunami or other natural
March 2006. Procurement procedures and signing of condisaster, and are also equipped with emergency solar-powtracts for delivery of fishing vessels is also proceeding
ered lighting. Including these buildings, all the construcsmoothly.
tion sites are within
Laamu Atoll, which• Main Relief Undertakings and Items Procured
suffered the most
Projects
Area
Items Procured
Plan for purchasing fisheries- Spare parts for repairing fishing boat engines, propellers and shafts, etc.
Industry
extensive damage,related equipment
for 13 boats, CB wireless radio, fishing equipment, 8 85-foot fishing boats
Infrastructure, Setting up publicand construction is
Setting up public administration building on Gan Island, setting up public
administration offices
publicadministration building on Fonadu Island, solar power generation systembeing carried out
administration
for public administration offices
Repairing causeway
Repairing 2 causeways linking Gan Island and Fonadu Island in Laamuwith great care toAtoll
all aspects of the
Restoration of power
Equipment necessary for restoring the power distribution grid on Laamu
distribution grid
Atoll and installation thereof
projects, including
Improvement of sewage
Equipment necessary for improving sewage treatment system andtreatment systeminstallation thereof
project manageProvision of agriculture-related Tractors, pickup trucks, backpack sprayers, shredders, boats, electric
Agriculturement.
machinery and equipment
power generators, spare parts, etc.

Maldives

11

Rapid Response Thanks to Experience Gained in Relief Efforts after
the Earthquake off Sumatra and the Indian Ocean Tsunami Disaster
A major earthquake occurred in northern Pakistan on
October 8, 2005, causing widespread damage that left over
73,000 dead and more than 120,000 injured. It also
destroyed the homes of over 3.3 million people.
The Japanese government immediately dispatched an
Japan Disaster Relief team, provided emergency relief supplies and on October 17 pledged 1,284 million yen in
emergency grant aid for the government of Pakistan. On
the same day, JICS made a contract with the Pakistan government to supervise funds and act as procurement agent
for the necessary relief goods and services.
Many people in the affected areas were forced fromtheir homes as buildings collapsed, roads were destroyed
and landslides blocked access. As winter approached, themost urgent priority was to deliver relief supplies quickly
to help improve living conditions.
Items selected in response to the Pakistan government’s urgent request included tents, blankets and othershelter-related items, food, consisting mainly of ready-to-

Epicenter

Islamabad

Afghanistan

Pakistan
Iran

Indus

Part I General Remarks–Main Activities in FY2005

Pakistan Earthquake, October 2005

India

Items provided by JICS in various locations

Balakot

Muzaffarabad

•Food

•Food
•Medicalconsumables

Garhi Doppatta•Daily necessities•Food•Drugs•Medicalconsumables•Construction
machinery

Jh

e lu

m Va
lley

Bagh
•Food
•Medicalconsumables

Rawlakot

Islamabad

•Food
25 km

A damaged school, Jhelum Valley

12

Special Feature

Post-disaster Rehabilitation Activities and JICS’ Role

Displaced persons living in tents provided through emergency grant aid

eat canned goods, medical equipment, first aid supplies
and drugs for persons in need of medical care, and construction machinery essential for civil engineering works
aimed at restoring damaged areas.
The Pakistan government chose the area around the
Jhelum Valley, situated in the northeast of Azad Jammu
and Kashmir province near the quake’s epicenter and oneof the most heavily damaged regions, as the destination
for relief goods. Once the requested items had arrived andbeen stockpiled in designated government warehouses, thegoods were swiftly distributed by government officials toresidents in the region beginning October 26, with somegoing to NGOs assisting relief operations there.
The Pakistan government subsequently added Bagh,
Rawlakot, Muzaffarabad and Balakot to the areas JICS was
asked to procure relief goods for. Like the Jhelum Valley,these towns, located in Azad Jammu and Kashmir
Province and Northwestern Frontier Province, had also
suffered severe damage in the earthquake.
After the decision to provide grant aid on October 17,
things moved quickly and JICS was able to deliver most of
the relief goods originally planned on by the end of
November. And beginning in January 2006, monitoring by

locally-based consultants was carried out to ascertain thatthe goods bound for the earthquake victims had been reliably distributed.
Further to the earlier emergency grant aid, on March
13, 2006 the Japanese government decided to provide an
additional 4 billion yen in non-project grant aid to assist
reconstruction in Pakistan. Here again, JICS is involved as
procurement management agent for rebuilding and providing equipment for educational and health care facilities.

Mattresses distributed to people affected by the disaster

13

Part I General Remarks–Main Activities in FY2005

The Role of JICS in Official Development
Assistance (ODA)
Working to Promote Smooth Implementation of ODA
Japan provides official development assistance(ODA) as animportant national policy in response to the expectations of
the international community.
JICS plays an important role in implementing ODA
through various supporting operations, mainly grant aid
projects, technical cooperation projects and yen loan projects. Since its establishment in 1989, JICS, as a fair andimpartial procurement agency, has built on its experiencein equipment procurement to provide services appropriate
for conditions in developing countries and that truly meettheir needs. JICS will continue to contribute to promoting ahigh standard of international cooperation by providing
timely support for appropriate and effective implementationof assistance. The diagrams below describe the main projects in which JICS is involved.

Grant Aid
Grant aid is a form of assistance whereby funds are provided to a developing country without repayment obligation, for a specific, agreed-upon purpose. JICS is involved in
the types of grant aid described below.
Grant Aid for Infectious Diseases
Prevention and Treatment
Grant aid for infectious diseases prevention and treatment

provides aid for vaccines and administration of therapeutic
drugs to control various infectious diseases such as polio,
tuberculosis, malaria and AIDS and others that threaten
lives in developing countries.
JICS has been delegated by JICA since 1997 to carry out
studies in Japan and on site concerning equipment neededin the field of infectious diseases control. Following thesestudies, JICS carries out procurement management basedon contracts with the developing countries’ governments.
Since infectious diseases control must be put into action
without delay and the validity periods of vaccines and drugs
are also limited, project management always demands
swiftness and accuracy.
Grant Assistance for Underprivileged
Farmers (2KR, formerly known as Grant Aid
for Increase of Food Production)
Grant Assistance for Underprivileged Farmers (2KR) is aid
provided for purchasing agricultural equipment such asmachinery and fertilizer to help increase production of foodcrops (rice, wheat, maize, etc.) in developing countries
where there are food shortages. This grant aid, begun in
1977, is implemented yearly in Asia, Africa, Latin America,
Eastern Europe, CIS countries, and others. Grant aid forincrease of food production (2KR) has been changed since

Areas Handled by JICS in the Case of Grant Aid Projects
Grant aid for general projects(grant aid for infectious diseases prevention and treatment)

Grant assistance forunderprivileged farmers(2KR, former grant aid forincrease of food production)

Food aid (KR)

Cultural grant aid

Requests for aid from developing countries
Request,confirmation

Preliminary
screening

Project formulation study
Study of new
proposals

Master plan study
Feasibility study

Selection of projects

Preliminary screening

Preliminary screening

Decision to implement study

Decision to
implement study

Project formation

Preliminary screening

Instruction to
implement service

Support for study
on small-scaleequipment

Preparatory study
Basic design study

Preliminary study

Study

Final screening by Ministry of Foreign Affairs

Project final
evaluation andapproval

Cabinet decision
Agreement between governments

Project
implementation

Expediting project
implementation

Procurement
management service

Completion

Operation

Evaluation,
follow-up

14

Start ofprovision

Post-projectmonitoring study

Procurement
management service(procurement agent
system)Procurement
management service

Completion

Confirmation study ofconditions forequipment provided

Temporary measures
PostDispatch of
Follow-up
for equipment andproject
revitalization experts
study
supportfacilities
providedevaluation

Tendering assistanceserviceEquipment usage
beginsAdvisory services inconnection with the Committee

Advisory services inconnection with the Committee

Completion

Completion

Follow-up

Areas handled by JICS
FY2005 to grant assistance for Japan’s ODA and the Role of JICS
underprivileged farmers (2KR)
Study of projects, etc.
Grant Aid
Bilateral Grants
in order to show that Japan
Procurement management service*
will provide more effective supFollow-up
Government Loans
Official Development
Technical
port to developing countries in(yen loans)
Assistance (ODA)
Compilation of equipment technical specifications,
Cooperation
their self-help efforts for
procurement and transportation of equipment, etc.
Subscriptions andachieving food self-sufficiency.
Contributions toLoan Aid
Examination of documents, etc.
International Organizations
By clarifying that aid recipients* Through contracts with the developing country’s government, JICS manages and supervises the overall tendering process for procuring equipment and services in connection
are poor, small-scale farmers,
with grant aid. In some cases, JICS supports the developing country’s government, which implements projects, while in others it acts as the developing country’s agent, handlingJapan will strengthen its efforts
all duties, from managing grant aid funds provided to making contracts with equipment suppliers. The latter system is referred to as the procurement agent system and is used
to support increase of food pro- for non-project grant aid, emergency grant aid, and grant aid for conflict prevention and peacebuilding.
duction in those countries.
grant aid. These funds are then used for local economic and social develSince its founding in 1989, JICS has been delegated byopment projects after consultation with the Japanese government.
JICA to carry out studies in Japan and on site.
Additionally, since FY1997 JICS, in accordance with conFood Aid (KR)tracts with developing countries’ governments, has beenThis grant aid is provided to developing countries with foodserving as a procurement management agent contributing
shortages for the purpose of buying rice, wheat, maize or
to fair and rapid procurement of agricultural equipment. It
other grains. Based on the food aid rules of thealso acts as the secretariat for intergovernmental commitInternational Grain Agreement, which came into effect astees following up on how the equipment procured was dispart of the Kennedy Round (KR) at GATT in 1967, food aid
tributed and monitoring accumulation of counterpart
began in 1968 and is referred to as “KR” because it camefunds (Note).
out of the Kennedy Round.
Since FY2001, JICS, in accordance with contracts with
Note: Developing countries’ governments set aside local currency funds
equivalent to a certain amount of the value of equipment procured bydeveloping countries’ governments, has been serving as a

Handled by JICS

Grant aid for research

Non-project grant aid

Emergency grant aid

Grant aid for conflict
prevention and peacebuilding

Grant aid for Japanese
NGO projects
Applications from NGOs

Screening

Screening by Ministryof Foreign Affairs

Preliminary survey by athird-party organization

Preparatory study

Screening by Ministry of Foreign Affairs

Screening by overseas diplomatic missions

Decision by Ministryof Foreign Affairs

Cabinet decision

Exchange of a note verbale

Agreement between governments

Procurement management service

Project management service

Procurement management service

Project management
service(procurement agent system)

Monitoring of counterpart funds

Completion

Completion(procurement agent system)

Completion

Approval and adoption by
the Ministry of Foreign Affairs

Making of contracts for grants between
NGOs and overseas diplomatic missions

Completion
Start of projects by NGOs

Monitoring

15

Part I General Remarks–Main Activities in FY2005

procurement management agent helping ensure the fairand rapid procurement of food. It also acts as the secretariat
for intergovernmental committees following up on how thefood procured was distributed and monitoring accumulation of counterpart funds.
Cultural Grant Aid
Cultural grant aid provides funds for purchasing, transporting and installing various types of equipment used for cultural and educational activities, with the aim of promoting
mutual understanding and friendship between Japan anddeveloping countries through support for the developmentof culture and education.
Delegated by the Ministry of Foreign Affairs of Japan, in
FY1993 JICS began carrying out preliminary studies both inJapan and on site concerning equipment requested for thisgrant aid. Since FY1995, in accordance with contracts with
developing countries’ governments, JICS has assisted withtendering (public notice, implementation and evaluation of
the tendering process) for equipment procurement.
Additionally, since FY2000, JICS has been carrying out follow-up activities by procuring repair parts and dispatching
technical experts to ensure that the equipment procured isused continuously and effectively.
In FY2004, JICS began analyzing project applications
and also project applications for grassroots cultural grant
aid. The main types of equipment procured include soundand lighting equipment for theaters, sports equipment,
equipment for excavating and preserving archaeologicalsites, musical instruments, equipment for producing cultural and educational programs, materials related toJapanese-language education, and others.
Grant Aid for ResearchThis grant aid supports research activities into various problems affecting developing countries, and supports researchand development and commercialization of new technologies for products intended for developing countries.
Since FY2001, in accordance with contracts with thegovernments of developing countries, JICS has been managing grant aid provided for research and development
activities, and offering coordination and support to ensurethat activities among researchers and manufacturers inJapan and developing countries are carried out smoothly.
Non-Project Grant Aid
Non-project aid is grant aid intended to provide rapid support to developing countries with economic difficulties suchas growing accumulated debt or a rising international balance of payments deficit, as part of assistance to improvethe country’s economic structure. Since this aid is not ear-16

marked for specific projects (e.g. building schools, etc.), it iscalled non-project grant aid.
Since FY1993, JICS, in accordance with contracts with
developing countries’ governments, has been helping procure the necessary equipment, such as raw materials(petroleum products, steel products, paper products, etc.)
needed to improve the country’s economic structure,machinery (vehicles, construction machinery, etc.) requiredfor public works projects and others.
Emergency Grant Aid
Emergency grant aid is provided for emergency assistanceand support in the following areas:(1) Emergency disaster assistance
Support for rehabilitation after natural disasters or manmade disasters such as civil war.
(2) Support for democratization
Support for the establishment of democracy after the collapse of undemocratic regimes or in the aftermath of longrunning civil conflict.
(3) Assistance for reconstruction and development
Support for smooth implementation of the rehabilitation
and reconstruction process in countries and areas involvedin conflicts. It is bridge support implemented in the period
between emergency and humanitarian support for refugees
and affected people before the restoration of peace, anddevelopment assistance after a certain period after peace
has been restored.
Since FY1997, in accordance with contracts with thegovernments of developing countries, JICS has procured
food, medical equipment, drugs, vehicles (water tanktrucks, ambulances, etc.), construction equipment andother urgently-needed goods. Depending on circumstances,
JICS also carries out its own monitoring of how the equipment is being used after procurement.
Grant Aid for Conflict Prevention andPeacebuilding
Grant aid for conflict prevention and peacebuilding is
intended for assisting social reintegration of former soldiers,
helping recover small arms, and promoting ethnic reconciliation in developing countries. It provides funds for
procuring the necessary equipment and services for conflict
prevention and peacebuilding programs in developing
countries. This grant aid has been provided since FY2002 asa scheme within non-project grant aid.
Since FY2002, in accordance with contracts with developing countries’ governments, JICS has been serving as aprocurement management agent, managing funds andoverseeing and supporting activities appropriate to various
program formats.

Technical Cooperation
The aim of technical cooperation is to pass on Japan’s skills
and knowledge to create human resources that can be productive for the future, in order to promote nation-building
in developing countries. JICA carries out technical trainingof participants from developing countries, dispatches experts
and volunteers to developing countries, and implements
technical cooperation projects, development studies and others. Provision of equipment needed for these projects also
constitutes a major component of technical cooperation.
Since its establishment in 1989, JICS has been delegated
by JICA to handle equipment provision. At the request of
JICA headquarters, overseas offices, dispatched experts, volunteers, and staff working in technical cooperation projects,
JICS provides various services including direct assistance for
procurement-related duties, such as writing out technicalspecifications necessary for equipment procurement, selecting suppliers through tendering, etc. and handling equipment transportation, providing information about equipment, and carrying out various studies in Japan andabroad.

downs or lack of funds. To help in this situation, JICA carries out follow-up cooperation as needed, providing support
to ensure that the effects of support to developing countries
can be sustained.
JICS, delegated by JICA, examines whether documents
concerning technical specifications and cost estimates that
consultants have submitted are properly prepared in conformity with JICA standards, in JICA follow-up studies.
Support for Database Creation
Delegated by JICA, JICS provides support for building a
database related to past records of grant aid and equipment
provision through technical cooperation.
Operation of the Technical Information
CenterTo remedy the shortage of technical information requiredfor operating and maintaining medical equipment procured to developing countries through grant aid, JICS has
established the Technical Information Center in cooperation with Overseas Medical Equipment Technical Assistants(OMETA), to provide one-stop access for staff in charge at
local medical institutions.

Yen Loans
Yen loans, also referred to as loan aid, are long-term, lowinterest loans of development funds to developing countries
through the Japan Bank for International Cooperation(JBIC).
The role of JICS, delegated by JBIC, is primarily to examine whether procurement procedures, documents and decisions made by borrowing countries are appropriate in conformity with prior agreements at the time of signing loan
contracts, according to guidelines, standard documents andothers stipulated by JBIC. JICS also examines estimates ofoperations costs and basic designs formulated by borrowing
countries in commissioned studies on development projects
implemented by JBIC, by dispatching experts to the countries concerned.

Follow-up Activities
JICS undertakes the follow-up activities described below, toensure that equipment procured with ODA funds is being
used effectively.
Follow-up Examination
Once cooperation in developing countries has been completed, various projects are maintained and operated by thedeveloping countries themselves. However, project implementation is sometimes hampered by equipment break-NGO-related Projects
JICS supports NGO activities from several different perspectives.
Grant Aid for Japanese NGO Projects
Grant aid for Japanese NGO projects is grant aid provided
for economic and social development or emergency
humanitarian support projects, etc. by Japanese NGOs indeveloping countries.
Since FY2003, delegated by the Ministry of Foreign
Affairs of Japan, JICS has been evaluating the goals, content, and appropriateness of size and funding requirementsfor proposal applications submitted by NGOs. If necessary,
local studies are also conducted. Through this activity, JICS
contributes to strengthening the partnership between theJapanese government and NGOs and to the further development of NGO activities.
Support for Non-Governmental
Organizations
JICS provides funding of a maximum of one million yen
per year per NGO to relatively small Japanese NGOs to support their activities. This funding is made available toapproximately ten NGOs per year. Support for NGOs has
been implemented, as one of JICS’ own projects, since
FY1999, the tenth anniversary of JICS.

17

Part I General Remarks–Main Activities in FY2005

Providing Assistance to More Countries ina Wide Variety of Projects
Angola (Grant Aid for Infectious Diseases Prevention and Treatment)
Procuring Mosquito Nets to Protect Against Malaria

Among Sub-Saharan nations, Angola is especially disadvantaged in terms of public health and medical care as anaftereffect of a long drawn-out civil war in that country. In
particular, it is among the nations with the highest rates
of infant mortality (154 per thousand live births) and of
mortality in children under 5 (260 per thousand live
births).
Malaria has long been endemic in Angola and is theleading cause of death among the population. To deal
with this situation, Angola’s Ministry of Health embarked
on a five-year strategy called “Roll Back Malaria” whose
goals are to reduce new cases of malaria, now running
three million a year, to 900,000 a year; provide over half
the country’s children under 5 and pregnant women with
insecticidal mosquito nets so that they can sleep restfully;
and offer appropriate treatment to over half of all new
malaria patients within 24 hours of symptoms appearing
over the five years from 2005.
Accordingly, Angola adopted the Project for Malaria
Control and requested grant aid from Japan to obtainfunds for procuring mosquito nets, drugs for treating
malaria, testing equipment and other necessary goods.
In April 2005, JICS made a consulting service agreement with the Angolan Ministry of Health and has provided support for appropriate procurement. In June, JICS
organized a tender to select equipment providers andTraining for the solar power source package procured by JICS

18

Mother and child receive a mosquito net

made procurement contracts to supply enough mosquito
nets for about 130,000 people, drugs for treating patientswith severe cases of malaria, and testing kits, microscopes
and other equipment for detecting the disease.
Goods procured include about 270,000 doses of malaria treatment drugs that involve taking two drugs together
for more effective treatment. In February 2006, hospitaland public health staff in charge of treating malaria fromthe target regions gathered and actively partipated in a
two-day training session to learn how to use the drugs andstudy the Health Ministry’s policies on malaria-control
measures. Local television stations reported on the training, reflecting the strong degree of interest in this issue
among the general public.
The equipment and goods procured under this projectwill be provided mainly to pregnant women and children
under 5 living in Benguela Province. We hope that themosquito nets and drugs provided will help bring down
malaria infection and mortality rates, and that the testing
equipment provided will contribute to improving the testing system so that the disease can be diagnosed in theearly stages.

Guinea (Grant Assistance for Underprivileged Farmers) (2KR) (formerly Grant Aid for Increase of Food Production)
Toward Appropriate Monitoring of Counterpart Funds

Japan has provided grant aid for increase of food production (2KR) to Guinea since FY1985, and JICS has been
involved in this program as a procurement management
agent since FY1998.
A field study conducted by JICA in November 2004
pointed out lack of sufficient monitoring of counterpart
funds* by the Guinean Ministry of Cooperation that is
responsible for the fund. For this reason, JICS, as part of its
activities to improve the ministry’s monitoring function by
providing support for upkeep and maintenance andstrengthening the organization, dispatched a survey teamof three technical support personnel, who worked from
November 12 to December 7, 2005 to set up a database fortracking equipment sales.
The survey team taught local personnel the necessary
skills for inputting data of 2KR sales for FY2001 and set up
a database of sales performance for FY2004 on the ministry’s computers.
This system allows real-time monitoring of sales ofequipment procured in FY2004 and accumulation ofcounterpart funds. It also provides instant information on
the funds that have been accumulated versus stipulated
counterpart fundlevels.
When the workof inputting datafrom FY2004 sales
was left in the handsof the ministry, an
official there indicated Guinea’s
intention of
attempting to be thefirst of all 2KR recipient countries toprovide Japan withqualitative fundaccumulation
reports. And as of
mid-June 2006, theJapanese government received aComputers provided in FY2004
report from Guinea

Setting up the sales performance databasethat about 70%, or 3.2 billion Guinea francs (approximately 80 million yen), had already been accumulated
versus the 4.6 billion Guinea francs (120 million yen) it
was required to accumulate in the project in FY2004.
Since sale of the equipment procured in FY2004 only
began in March 2006, this means that 70% of funds had
already been accumulated in only three months.
Considering that in the past only 10% of counterpart funds
had been accumulated by the four-year time limit, owing
to devaluation of the Guinea franc and delays in collecting accounts receivable for sales on credit, the efforts
made by the ministry this time are truly remarkable.
As far as sales of equipment procured in FY2004 areconcerned, Guinea promised to end sales on credit, which
had been responsible for the shortfall in accumulated
counterpart funds, in order to meet its responsibility to set
aside the full stipulated amount. The new database, which
reliably identifies all sales, allowed Guinea to end sales on
credit, and thanks to the database, the ministry is now
confident that it can accumulate counterpart funds andcarry out 2KR aid effectively.
*Local currency funds developing countries are required to accumulate for local projects in proportion to the amount of aid
received.

19

Part I General Remarks–Main Activities in FY2005

20

Mongolia (Food Aid)

El Salvador (Cultural Grant Aid)

Supporting Procurement of Wheat

Purchase of Planetarium Equipment
for a Children’s Museum

Japan provides food aid to countries with food shortages toenable them to procure rice, wheat or other sustenance. In
FY2005, Mongolia received funds to procure wheat, on
which the local diet is based. In May 2005, JICS signed a
procurement management contract with the Mongolian
government and supervised all the operations involved inwheat procurement. Thanks to speedily arranged procedures, JICS was able to deliver 9,730 tons of wheat to
Mongolia by the end of 2005, just before the Lunar New
Year, when food demand peaks.
At one time, Mongolia was self-sufficient in wheat andeven exported its surplus but today, the great grain-producing areas of the country are just a memory. Wheat production has fallen sharply and the country’s self-sufficiency rate has dipped to about 30%. A major reason for thissituation is that production by collective farms under thesocialist system was no longer sustainable after the collapse of the Soviet Union when supplies of farm machinery, fertilizer and other production equipment ceased.
Consequently, for eight years from 1992, Japan provided grant aid for increase of food production (2KR, now
called “Grant Assistance for Underprivileged Farmers”) to
procure farm machinery to increase food production andcontinues to provide food aid for procuring foodstuffs inshort supply. JICS has been involved in procurement activities for this aid for several years now.

In addition to hands-on displays for teaching children
about wholesome living habits, health and hygiene andthe natural environment, the Tin Marin Children’sMuseum of El Salvador holds music festivals, art exhibitions, plays and other events as part of its activities in children’s education. The museum had 70,000 visitors in2003 and is a popular attraction.
The museum decided that a planetarium was an essential component in its expanded program for teaching children about the natural sciences and built a structure
housing a planetarium dome. However, a limited budget
made it impossible to buy the necessary equipment, andthus the El Salvador government requested cultural grant
aid from Japan in order to buy planetarium equipment.
JICS, delegated by the Japanese Foreign Ministry, carried out a field survey in November 2004 to verify theappropriateness of the grant aid request, the dome’s sizeand construction status, as well as provisions for upkeep
and maintenance, and discussed these matters with museum representatives and the architect for the project.
Based on the findings of that survey, Japan agreed withEl Salvador to implement cultural grant aid on August 17,
2005. Following this, JICS entered into a contract with the
El Salvador government to assist with tendering operations (announcing the tender for the equipment to be procured, drawing up tender specifications, holding the tendering session, evaluating bids and so on).

Handover at a silo in Hutul

Simplified planetarium projector procured by JICS

Afghanistan (Non-project Grant Aid, Emergency Grant Aid, others)
Assistance Plays a Vital Role in Establishing Peace
After elections held in October 24, Hamid Karzai, head of
the Transitional Administration, was elected the first president of the Islamic Republic of Afghanistan. The first parliamentary elections took place in October 2005 and parliament opened in December, marking the beginningsteps on the road to democracy.
Japan has been involved in various projects to support
the consolidation of peace in Afghanistan. Projects continued in FY2005 and JICS was also involved in those projects.

Experiments and training with antenna at Mazar-i-Sharif police headquarters

In FY2002, JICS helped procure medical equipment, aspart of emergency grant aid. Initially, the equipment procured was for the city and the province of Kabul. However,there was also a need for basic health care equipment inremote areas, and in response to a request by the Afghan
government, JICS also procured basic health care equipment for 100 clinics in regional areas. After delivering theequipment to a warehouse of the Ministry of Public Healthin Kabul and sorting it, JICS also handled shipping within
the country, a task made difficult by the rugged terrain
and underdeveloped road access. But thanks to the cooperation of all parties involved, JICS was able to complete thisproject, which helped bolster our confidence in our ability
to handle similar undertakings in the future.
The equipment provided under this project made it
possible for people living in outlying areas, forced until
then to travel to urban areas for medical care, to receive
treatment locally.

Following JICS’ involvement in projects with the Kabul
Police in FY2003 and the Kandahar Police in 2004, in
2005, we assisted with emergency grant aid to support theMazar-i-Sharif Police and with a counterpart funds projectto support the Kandahar Highway Police.
The Mazar-i-Sharif Police Support Project was for
installing a wireless communications system and providing vehicles to help the police work more speedily and efficiently. Japanese experts were dispatched when the equipment was delivered, to lecture on subjects ranging fromwireless theory to upkeep and maintenance of the equipment over a three-week period.
The second project involved procurement of wirelesscommunications equipment, automobiles and motorcycles for the Kandahar Highway Police, which patrols the
100km stretch of highway from Kandahar toward Heratfor which Japan has been handling road improvement,
and for the Maiwand Police and the Gereshk Police, inorder to improve security on this road sector. Separatelyfrom procurement of this equipment, JICS is also handling the supplying of fuel for Kandahar Highway Police
two- and four-wheeled vehicles and the refurbishing ofpolice checkpoints along the road.
Additionally, as a voluntary project, JICS has provided
Kabul Medical University with a bus manufactured forsales promotion activities and donated by a Japanese automaker. JICS bore the costs to have the bus shipped to
Afghanistan. Interested parties within JICS also arranged a
toy collection drive and donated the toys to an orphanage
in Kabul.

Patrol cars delivered to the Kandahar Highway Police

21Part I General Remarks–Main Activities in FY2005

Iraq (Emergency Grant Aid, Grant Aid for Conflict Prevention and Peacebuilding)
Procurement Contributing to Peace

Fire trucks that were
procured and donated22

At an international conference to discuss reconstruction in
Iraq held in Madrid in October 2003, the Japanese government announced that it would allocate 1.5 billion U.S.
dollars in grant aid and 3.5 billion dollars in yen loans.
Within the grant aid framework of direct support,
which excludes support through international organizations and international funds for the reconstruction of
Iraq, Grassroots Human Security Grant Aid and assistancethrough NGOs, JICS has been monitoring the progress ofvarious projects and overseeing the appropriate supervision and disbursement of funds in its role as a procurement agent for the Iraq government. Beginning with the
Project for the Provision of Police Vehicles, JICS has been
involved in procurement management and supervision offunds for another eight emergency grant aid projects forequipment procurement, 11 cases of equipment procurement for facilities rehabilitation, and one case of grant aid
for conflict prevention and peacebuilding up to FY2005.
In the Project for the Provision of Equipment toPrimary Health Centers in the Governorate of AlMuthanna, JICS procured and also shipped medical
equipment for 32 health centers within the governorate.
This was a complementary operation to the repair andrebuilding of the health centers by Japan’s Ground SelfDefense Forces, and the equipment procured included
basic medical equipment for outpatient examinations,obstetrics and neonatal examinations and testing.
In the Project for the Provision of Fire Fighting Vehicles,delivery of 69 of the vehicles purchased by the Ministry ofInterior was completed in FY2005. In the Project for theProvision of Equipment for Solid Waste and Sewage
Management, JICS procured 219 trash collection vehicles,
sewage treatment equipment, and construction equipmentthat will be used at solid waste processing facilities for the
Ministry of Municipalities
and Public Works. Twentyseven vehicles, mainly for
trash collection, were handed over to the City of
Samawah, helping restore
trash collection and sewage
management services there.
In the Project for the

Solid waste processing equipment procured and donatedInstallation of Mobile Substa-tions, shipment and local
installation of 23 units was completed in FY2005, andmany of the newly installed facilities have begun operating. This was the first case of direct assistance for facilities
rehabilitation carried out by Japan, and shipment of theunits was done in difficult circumstances in an area thatis not fully secure.
New projects that were inaugurated in FY2005 were theProject for Construction of Diesel Power Station in
Samawah, an emergency grant aid project and theProgram for Police Training and Mentoring in AlMuthanna Province, a grant aid project for conflict prevention and peacebuilding. The first project involves
building a large diesel power generation facility in
Samawah. Power shortages are a major inconvenience indaily life in Iraq and it is hoped that this facility will
improve living conditions for citizens.
The second program provides partial financial assistance from Japan for police training in the Governorate of
Al-Muthanna, where Japan’s Self-Defense Forces were stationed until August 2005, as part of an overall police
training project carried out by U.K. and British-affiliatedsecurity companies in the three southern governorates ofBasra, Maysan and Al-Muthanna. This program is teaching 6,200 police officers the necessary skills and knowledge for police work in the areas of local patrolling, interrogation, crime scene technical work, legal officiating,and operating a joint headquarters system. Training
began in January 2006 and will continue over a sixmonth period. It is hoped that this training will help
police forces maintain local law and order effectively andcontribute to reestablishing public safety in Iraq.

Support Activity for JICA Offices (Technical Cooperation)
Personnel Dispatched to Assist with Local Procurement

Since October 2004, when JICA introduced
local procurement for equipment, swifter andmore efficient procedures have been promoted. In this connection, in FY2005 JICS dispatched personnel to support local procurement to JICA offices in China, Afghanistan, Sri
Lanka and Jordan. These personnel assistedwith various procurement-related duties andhelped set up systems at those offices.
At JICA’s China office, JICS support staff
was dispatched for three months, from
November 2005 to January 2006, who assistedwith procurement procedures in individual
cases by preparing requests for quotations in
the case of quotations from designated bidders and answering questions relating tosuch, evaluating tender documents, preparing Preliminary announcement of local procurement at JICA’s China officecontracts and so on. Additionally, the personnel helped set up a procurement system at that
equipment procurement at JICA overseas offices has
office, by teaching local staff how to prepare specificasteadily increased.
tions; holding study sessions on trading practices; andMeanwhile, many problems remain to be ironed out.
preparing draft versions of how to draw up projected priceSourcing equipment locally is quicker and less expensive,
lists, draft criteria for designation in the case of designatedbut in many countries it is not possible to buy equipment
bidding, and draft eligibility criteria for examination inin the same way as in Japan. The strict public procurethe case of preannounced projects.
ment procedures that have been introduced are not always
Based on the Field-Oriented Approach adopted by JICA,
well understood by local businesses submitting tenders. In
the ratio of procuring equipment from Japan fell by half
fact, there have been cases where it was impossible toin the three years from 2002 to 2005, compared to local
obtain sample estimates before starting procurement proprocurement, which grew 1.5 times, climbing from 52% tocedures, deliveries were delayed due to complicated cus76% over the same period. These figures show that local
toms and duty exemption procedures or lack of willingness on the part of local businesses to honor contract provisions, or where adequate after-sales service was not provided. And establishing the system—preparing various
forms, setting up a designated businesses system, preparing appropriate projected prices and so on—at JICA’s
overseas offices remains a major task for the future.
Thus while the system for adopting local equipment
procurement is still in transition, JICS will continue toassist in ensuring fairness, transparency and competitiveness in procurement that is efficient and economical at
the same time through such means as providing Help
Desk service for equipment procurement, as well as sending personnel to support local procurement operations.
Local staff in charge of procurement at JICA’s Sri Lanka office

23

Part I General Remarks–Main Activities in FY2005

Document Examination and
Seminars (Yen Loans)

Grant Aid for Japanese NGO
Projects

Preliminary Document Examinationand Local Lectures

Impartial Evaluation of Applications

Yen loans, also referred to as loan aid, are long-term, lowinterest loans of development funds to developing countries agreed upon by governments of Japan and the recipient country and implemented through the Japan Bank forInternational Cooperation (JBIC).
Yen loans are used to finance construction of power
generating stations, water purification plants, roads andother infrastructure. Procurement of goods and services
for the construction must be carried out according to procurement and consultant hiring guidelines stipulated by
JBIC. In FY2005, JICS, delegated by JBIC, conducted preliminary document checks to ascertain that procurement
documents basically conformed to JBIC guidelines andother requirements.
JBIC also organizes local seminars for the governments
and implementing organizations of yen loan countries tocoach them on the system and procedures and to ensurethat they have a good understanding of the basic principleof yen loans. In FY2005, JICS sent lecturers to Morocco,
Tunisia, Pakistan, and Egypt, who brought up a numberof problems often observed in procurement-related documentation in their lectures.
Through preliminary document checking and dispatching of seminar lecturers, JICS contributes to promoting effective utilization of yen loans in implementing programs.

Since FY2003, JICS, delegated by the Ministry of Foreign
Affairs of Japan, has been evaluating the grant aid activities of Japanese NGOs carried out in partnership with the
Ministry. Evaluation examining the appropriateness of thefunding requirements in proposal applications submitted
by NGOs is carried out impartially and objectively.
Examination consists of judging whether prices forequipment and facilities (materials and labor) are appropriate and whether intended use and scale are appropriate,
and of identifying possible problems related to upkeep andmaintenance. The implementation system, appropriateness of costs, cost-effectiveness and other ‘soft’ aspects ofproposal applications are also examined. The NGOs themselves are also checked to ascertain their financial condition and financial oversight system, and a report is thendrawn up. Field studies are also carried out on a numberof projects to ascertain whether they are adhering to plans
and to confirm progress in implementation.
In FY2005, JICS conducted over 100 domestic examinations, almost the same number as the previous year. We
are also examining an increasing number of interim project reports and completion reports. There were many NGO
emergency humanitarian projects, due to the Pakistan
earthquake, similarly to the previous year when there weremany projects related to the Sumatra earthquake andIndian Ocean tsunami. We also examined proposal applications and field monitoring studies for emergency
humanitarian aid by Japan Platform, a public-privategroup, providing behind-the-scenes support. Through thisactivity, JICS contributes to strengthening the partnership
between the Ministry of Foreign Affairs and NGOs.

JICS personnel lecturing at a JBIC seminar in Morocco

24

Field study of plan for building a children’s welfare center in the former
Serbia-Montenegro (Kosovo)

JICS Support for NGOs
Trial-basis Support for Training to Strengthen Organizations

To achieve its goal of promoting higher-quality international cooperation, JICS began offering direct support tosmall and medium-size NGOs undertaking aid projects indeveloping countries through its JICS support for NGOs
program in FY1999.
In addition to direct support, in FY2003 JICS started
supporting network-style NGOs to contribute to capacitybuilding, and also began helping by providing funds forstrengthening the foundations of NGOs in FY2004, offering support responding to broader needs. In FY2005, JICS
also offered support, on a trial basis, for training carriedout by network-style NGOs to improve NGO operational
capabilities.
Applications from NGOs are accepted once a year andrecipients are selected after examination of their applications. In FY2005, JICS received applications from 16
groups for both its regular support and training support
programs and selected the 10 groups listed on page 47 toreceive support.
Examination, including the content of projects andoperating status of each group, is carried out by an examining committee made up of JICS executive officers andoutside experts. Each NGO is notified of the result of its
application, with comments and advice from committee
members concerning its application and projects.
Meetings are also held where groups that received
grants submit progress reports on their projects and theiraccomplishments so far. In FY2005, prospective attendees

A private hospital in Cambodia that received mats and other medical equipment from SECOND HAND, an NGO supported by JICS

were polled beforehand on topics they wished to put on theagenda, and at the meeting they discussed the pros andcons of providing used goods and how to end projects sothat local residents can become self-sufficient.
Further, to carry out self-evaluation of this support
activity, examining committee members traveled on field
trips to Thailand and Cambodia and sent questionnaires
to NGOs. Questionnaire results revealed that NGOs considered JICS’s support to offer advantages compared to othergroups supporting NGOs, since JICS funds can be applied
to a broader range of uses and funds are disbursed inadvance. Knowing this motivates JICS to continue supporting NGOs in ways that meet their diverse needs.
Members of the examining committee*(in alphabetical order following chairman)

Committee member Shunichi Hiraki (far left) inspecting the Thai National
Sethsatian School for the Deaf to which NGO Asia Mind, supported by JICS,
sent group hearing aids and other equipment

Yukihisa Sakurada: Vice President, JICS (Chairman)
Michiyo Arita: Secretary General, Kansai NPO Alliance
Shunichi Hiraki: Professor, Faculty of Economics, Niigata
University
Takuo Kidokoro: Director, Non-Governmental Organizations
Assistance Division, Economic Cooperation Bureau, Ministry ofForeign Affairs
Tatsuya Watanabe: Assistant Professor, Faculty of Contemporary
Law, Tokyo Keizai University
Takashi Yoshida: Deputy Managing Director, Training Affairs andCitizen Participation Department, Japan International Cooperation
Agency* Titles as of November 2005.

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Part I General Remarks–Main Activities in FY2005

Creating the Right Organization for an
International Procurement Management Body
As one of its policies for carrying out operations in FY2005,
JICS put forward bringing the organization up to standards as an international procurement management body.
In line with this, JICS has been taking various measures,such as standardizing operational processes, improving
corporate governance and so on.
The following describes various activities, mainly concerned with these measures, which were implemented in
2005.

New Board of Trustees Chairman
and Vice Chairman
Following the resignation of chairman Shigeru Ishikawa
on March 31, 2005, vice chairman Akira Hasumi served asinterim chairman until the first regular meeting of the
JICS Board of Trustees on June 23, at which Mr. Hiroshi
Matsumoto was chosen as the new chairman. At the same
meeting, trustee Ms. Yoriko Meguro was chosen as vicechairman, inaugurating a two-vice chairman structure
for the Board of Trustees.

First regular Board of Trustees meeting in FY2005

Adoption of the JICS Code of
Conduct
Based on the JICS Vision, the JICS Code of Conduct was
adopted on April 1, 2005. This Code sets out the principles
that JICS personnel are required to adhere to, with thegoal of promoting higher-quality international cooperation. The full text of the Code of Conduct is carried on
page 2.

26

Update on Reorganization
A major reorganization, centering on the operations
departments, was carried out in June 2004; JICS has been
conducting its operations under this new structure sincethen. From the perspective of observing and evaluating
how the new structure is actually working and whether
any modifications are needed, no major changes weremade this year. However, we took the measures below, as
steps toward our goal of improving our standards as aninternational procurement management organization.
Compliance Committee Formed
In light of the increasing focus on corporate social responsibility and corporate governance in recent years in corporate management circles, JICS is working to put in placesystems to improve compliance.
The JICS Vision adopted in 2003 states that “JICS
endeavors to manage its operations appropriately” and theCode of Conduct adopted in April 2005 says that JICS personnel and the organization will observe laws and rules.
To better acquaint personnel with these requirements andto strengthen the compliance function, a Compliance
Committee was formed in November 2005.
This Committee works to improve compliance within
the organization, by discussing basic policies and planning for better compliance and JICS’ response if improprieties should occur.
Overseas Offices Reorganized
JICS offices in Cambodia and Vietnam were closed in May
2005, and a new office was opened in Jordan in June.
The Cambodia and Vietnam offices were closed
because office functions there were longer necessary, taking into account current JICS projects in those areas. The
new Jordan office, in Amman, was opened to facilitate carrying out duties in connection with reconstruction projects
in Iraq that JICS is involved in, and two personnel weredispatched there initially.
This reorganization leaves JICS with four overseas
offices, in Jordan, Mongolia, Afghanistan and Madagascar,although the Mongolia office is scheduled to close on
September 1, 2006.

Project Evaluation
The importance of project evaluation for ODA is wellknown, and the major organizations carrying out ODA in
Japan—the Ministry of Foreign Affairs, JICA, and JBIC—
carry out a wide range of such evaluations and make theTrustee Ryokichi Hirono (left) inspecting Malalai Hospital, Afghanistan

results public.
JICS has recognized the need to carry out its own evaluation of projects it is involved in and has begun planning and setting up a system to conduct evaluations. But
unlike the public organizations above, JICS takes part in
ODA projects as a delegated party. Given the special natureof its activities with regard to ODA, JICS has been studying
a basic policy and plans for drawing up and implementing guidelines, premised on evaluation with the focus
mainly on internal operations processes.
Further, as part of these evaluation activities, trustee
Ryokichi Hirono traveled to Afghanistan from the end ofJanuary to the beginning of February 2005 to inspect JICS
projects there. JICS is involved in several projects there,
including Emergency Grant Aid and Non-project Grant
Aid, implementation of which our Afghanistan office is
assisting with. After his inspection trip, trustee Hirono
reported on his findings to the Board of Directors and theBoard of Trustees. In his report, he brought up the needfor improvements in several areas, from the implementation system for JICS projects and appropriate personnel
training to operations in general.
These valuable findings will allow us to take specificaction concerning project and evaluation activities in the
future.

JICS Guidelines for the Procurementof Consultant Services Drawn Up
In March 2006, JICS adopted the JICS Guidelines for theProcurement of Consultant
Services, which were implemented
from April. These guidelines set out
general principles for observing
impartiality, fairness and competitiveness when selecting consultants.
Nowadays, an increasing number of projects where JICS acts as
procurement management agent
involve construction work forreconstruction after natural disasters and so on. The contractors
handling these projects are selectedby ordinary international tender.
However, depending on the project,
the work involved or the construction environment may differ, andsince contractors large and small,from many countries and of varying technical capability,
participate in the bidding for construction work, highly
specialized knowledge and extensive experience are
required to set down bid conditions, conduct technicalevaluation of the bidding, supervise the work and so on.
Thus, in cases where the help of a consultant isdeemed necessary to carry out the project in question
appropriately and effectively, grant aid funds are used,with the consent of the recipient country, to hire a consultant to handle the work, and selection of such consultants
is generally done through international competitive bidding.
Since JICS foresees having to procure such consultantsin the future, we recognized the need to set down clear
selection criteria, which led to adopting the JICS
Guidelines for the Procurement of Consultant Services.
The JICS Procurement Guideline for equipment procurement was implemented in April 2005.
JICS’ Procurement Concept
JICS shall timely implement procurement of thegoods and services required for the purpose of
supplying them to the people of the recipient
countries, maximizing economy and efficiency inprocurement, and ensuring impartiality, fairness,competitiveness and transparency. Besides implementing ordinary procurement, JICS shall provide
necessary services and make all possible efforts inorder to help people in the recipient countries
benefit from the various projects.

27

Part I General Remarks–Main Activities in FY2005

JICS—Active in Many Areas

Iraq’s Municipalities and Public
Works Minister Visits
On October 25, 2005, Iraqi Minister of Municipalities andPublic Works Nesreen Berwari visited JICS headquarters
and met with JICS president Takahisa Sasaki to discuss
implementation of the Project for the Provision of
Equipment for Solid Waste and Sewage Management for
which JICS is acting as the procurement management
agent.
The minister described environmental sanitation conditions and stressed the dire shortage of equipment in
Iraq, and also expressed her appreciation for the work that
JICS has performed.

Global Festa Japan 2005
The Global Festa Japan 2005 event, formerly known as theInternational Cooperation Festival, took place at Tokyo’s
Hibiya Park on October 1 and 2, 2005. JICS operated abooth there, with a panel exhibit describing procurement
flow mainly for aid projects in response to the Earthquake
off the Coast of Sumatra and Tsunami in the Indian
Ocean, assistance for Iraq and grant aid for research formine clearing activities in Afghanistan, and explaining
JICS’ position within the ODA framework. This attracted
many interested visitors, principally students.

Students from Onizaki andMinami Joyo Junior High Schools
Visit JICS
In FY2005, JICS was visited by junior high school students
on two occasions: on May 10, 2005, by six students from
Tokoname Municipal Onizaki Junior High School (Aichi
prefecture), and on June 8 by 15 students from Joyo
Municipal Minami Joyo Junior High School (Kyoto prefecture). The two groups of students, who were visiting Tokyo
on official school trips, visited JICS as part of comprehensive studies on the theme of international understandingat their schools.
JICS staff described ODA and the activities of JICS andtalked about the work they were doing, their experiences
overseas, and their feelings about working on ODA projects.
The students related how, thanks to their visit, they
now had a better understanding of ODA, procurement ofrelief goods and other aspects of a subject they were notordinarily exposed to.

Internship Program

One World Festival
The One World Festival took place at International House,
Osaka on February 4 and 5, 2006. JICS participated for thefifth time with panel displays on disaster relief in the
Indian Ocean tsunami and reconstruction in Iraq, a DVD
showing mine-clearing activities in Afghanistan, and
INFO-PACK sheets describing JICS’ activities. Visitors foundthese displays informative.

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Following inauguration of this program in 2004, three
students, from Ibaraki University, Ritsumeikan University
and for the first time from Osaka Keizai University, respectively, participated in the 2005 JICS Internship Program.
The students spent two weeks assisting with operations for
grant assistance for underprivileged farmers, the technicalcooperation support program and others, and also helped
create the panels for the JICS booth at the Global Festa
held in October.
The Internship Program is scheduled to continue in
FY2006.