ANNUAL REPORT2003

JAPAN INTERNATIONAL COOPERATION SYSTEMAs of February 1, 2005

Information on JICS
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: 149
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:

Cambodia Office
Office No. 14, Hotel Sofitel Cambodiana
313 Sisowath Quay, Phnom Penh, Cambodia
Tel: +855-23-219350
Fax: +855-23-219350
e-mail: JICSPNH@bigpond.com.kh
Mongolia OfficeBodi Tower, Sukhbaatar Square 3,Ulaanbaatar, Mongolia
Tel: +976-11-318423
Fax: +976-11-312549
e-mail: jicsub@mongolnet.mn
Vietnam Office
Room No. 226, Nguyen Dinh Chieu Hotel,
23 Nguyen Dinh Chieu Street,
Hai Ba Trung District, Hanoi, Vietnam
Tel: +84-4-8315005--8
Fax: +84-4-8315009
e-mail: jics.hanoi@fpt.vn

Cover photos① ② ③ ④Afghanistan OfficeHouse No.579, Street No.15,
Wazir Akbar Khan
Kabul City, Afghanistan
Tel: + 873-7613-25827
Fax: + 873-7627-36022
e-mail: nonpro5@msj.biglobe.ne.jp
Madagascar Office
4e étage, Bâtiment de la Réunion
Isoraka, Antananarivo, Madagascar
Tel : +261-20-22-601-90
Fax: +261-20-22-602-09
e-mail: manantena_jics@wanadoo.mg
voahangy_jics@wanadoo.mg
jicstana@wanadoo.mg① Pre-shipment check of blood gas analyzers provided under emergency grant aid to China to deal with the spread of SARS.
② Children rejoice at the arrival of a water tank truck procured for Afghanistan under emergency grant aid.
③ In areas where wells have been dug, residents have access not only to water for agricultural purposes but also clean drinking water. (Cambodia)④ MACA staff member (left) and Afghanistan client (right) attend a demining experiment conducted in Japan under grant aid for research (landmines) to Afghanistan.

Contents
The JICS Vision ................................................................................................ 2Preface–Responding to Diversifying Assistance Needs ........................................ 3
JICS Activities in FY2003 ................................................................................... 4Part I General Remarks –Main Activities in FY2003
Special Feature: JICS Assisting Peacebuilding ActivitiesCambodia ........................................................................................... 6
Afghanistan ......................................................................................... 8
Sierra Leone ..................................................................................... 13
East Timor ........................................................................................ 13
The Role of JICS in ODA .......................................................................... 14
More Countries Receiving Assistance in a Wide Variety of Projects
China ................................................................................................ 18
Ethiopia............................................................................................. 19
Tanzania ........................................................................................... 20
Senegal ............................................................................................. 21
Nepal ............................................................................................... 22
Jordan............................................................................................... 22
Uzbekistan......................................................................................... 23
Indonesia ......................................................................................... 24
Ecuador ........................................................................................... 24
Grant Aid for Japanese NGO Projects .................................................. 25
Support for Non-Governmental Organizations ..................................... 25
Reforms for Appropriate and Effective Implementation of Operations ........ 26
JICS –Active in Many Areas ...................................................................... 28
Part II Description of Projects
Countries Targeted for JICS Projects ................................................... 30
Revenue by Function (FY2003)........................................................... 32
Revenue by Scheme (FY2003) ............................................................ 32
Revenue by Counterpart (Over the past three years)............................. 33
Procurement Management for Grant Aid Projects................................. 33
Project Results by Country in Fiscal Year 2003 .................................... 34List of Projects in Fiscal Year 2003–Grant Aid .................................... 37
List of Projects in Fiscal Year 2003–Technical Cooperation ................. 42
Procurement Management of Loan Programs ..................................... 47
Other Activities Related to International Cooperation ........................... 47
Reference Materials
Changes in Revenues and Expenditures by Fiscal Year ......................... 48
FY2003 Business Report .................................................................... 49
FY2003 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 required in developing countries, within
the framework of the Japanese government’s official development assistanceand other support for developing countries. JICS endeavors to carry out its
operations in accordance with the following precepts.

JICS plays a bridging role inassistance 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 ourmobility and experience, acting as a bridge between
Japanese and foreign assistance organizations, NGOs andprivate companies to offer fine-tuned support andcoordination for the smooth implementation of various
types of projects.

JICS maintains an impartial
stance to ensure fairness andtransparency
In carrying out our operations, our priority is to maintainan impartial stance to ensure fairness and transparency.
Our procurement of goods and services is carried out
following procedures detailed in guidelines drawn up in
conformity to legal and ethical requirements andinternationally accepted practices.

2

JICS puts its knowledge andexperience to work inassistance projects
We actively engage in public relations activities tocommunicate information and knowledge acquired
through our operations; research activities in the pursuit ofbetter assistance activities; and support activities directed atindividuals working in the field in developing countries, allwith the aim of contributing to the growth of developing
countries.

JICS endeavors to manage its
operations appropriately andto train capable personnel
To ensure that we can reliably carry out our roles described
here, we have strengthened 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 safeand healthful workplace for all. We also hire skilled andexperienced personnel and offer staff training in the skills,
knowledge and experience required for offering the mostappropriate proposals and coordination in various phasesof assistance projects.

Responding toDiversifying
Assistance NeedsThe Japan International Cooperation System(JICS) was established as a public-service
foundation in April 1989 upon authorizationfrom the Minister for Foreign Affairs. As part ofJapan’s economic cooperation activities, JICS aims topromote high-quality international cooperation by
providing appropriate and effective assistance in
implementing bilateral grant activities. Since its
establishment, JICS has been able to grow steadily,
under the guidance of the Ministry of Foreign Affairs,
the Japan International Cooperation Agency (JICA),
and other related agencies and with the support ofvarious foreign governmental organizations and ODArelated bodies, marking its fifteenth anniversary on
April 12, 2004. I wish to express my sincere appreciation for the support and cooperation that JICS has
received from many quarters.
The environment surrounding ODA has changed
greatly over the past fifteen years. The Japanese governmental budget for ODA, which had previously
been expanding, is now smaller, necessitating more
effective and efficient use of funds. Meanwhile, withvarious new undertakings such as the Millennium
Development Goals, poverty reduction, human security and peacebuilding being proposed in relation todevelopment strategies, the international community’s expectations toward Japan have never been higher.
Given these new ODA undertakings, JICS’ activities
have become increasingly diversified. Over the past
few years, assistance for reconstruction and development and for peacebuilding activities has rapidly
expanded in such countries as Afghanistan, Iraq,
Cambodia, and Sierra Leone, where JICS has played
an active role. JICS has now been handling a broader
variety of operations, including yen loan- and NGO
support-related activities which have been recently
delegated to us. JICS has thus developed into an organization as a comprehensive international procure-ment agent which is capable of appropriately responding to the assistance needs of developing
countries.
This Annual Report, the first for JICS, describes
project results and activities in fiscal 2003. JICS
formulated three policies regarding its activities infiscal 2003; to become positively involved in new
projects, to promote efficiency and reduce expenses,
and to strengthen its implementing capabilities. JICS
has carried out its activities with these policies inmind. In October 2003, JICS also put together a new“JICS Vision” (see the opposite page) to clarify its
operating principles.
JICS will continue its activities with your support
and cooperation, endeavoring to become an organization considered reliable by all. I hope that thisReport will give you a better understanding of JICS’
activities.

Takahisa Sasaki, President
Japan International Cooperation System (JICS)

3JICS Activities in FY2003
2003
April416202829May

1515162426June
13
September 21
24 (-October 5)
29 (-October 1)30
October
14, 528
November

10 (-16)
11December

19316

Main JICS Activities

Related Developments in Japan and Abroad

East Timor—procurement agent contract signed for FY2002 non-project grant aid (first nonproject grant aid for this country).
Afghanistan—procurement management contract signed for FY2002 grant aid for research:
Research Project for Developing Mechanical Demining Machines in Afghanistan.
Cambodia—grant aid for conflict prevention and peacebuilding for FY2002. JSAC support
measures team formed.
JICS Headquarters moves to new location.
Afghanistan—procurement management contract signed for FY2003 grant aid for generalprojects: Project for Improvement of Equipment for Afghan Police.
JICS administrative structure reorganized (Office of Management Audit created).
Sierra Leone—procurement agent contract signed for FY2002 grant aid for conflict prevention
and peacebuilding.
Afghanistan—emergency grant aid for FY2001 (medical field). Opening ceremony for theNational Tuberculosis Center, attended by JICS president, held.
China—procurement agent contract signed for FY2003 emergency grant aid to deal with thespread of SARS.
Afghanistan—FY2002 emergency grant aid: Programme for Improvement of the Trunk Road
from Kabul toward Kandahar. Handover ceremony of road maintenance equipment held.
Afghanistan—procurement agent contract signed for FY2003 sector program grant aid:
Programme for Improvement of the Trunk Road from Kabul toward Kandahar.
1st meeting of the JICS Board of Trustees and Board of Directors for FY2003.
Cambodia—FY2002 grant aid for conflict prevention and peacebuilding. “Flame of Peace”
ceremony to destroy weapons held.
Sierra Leone—FY2002 grant aid for conflict prevention and peacebuilding. Field monitoring
survey conducted.
JICS participates in side-event at the Third Tokyo International Conference on AfricanDevelopment (TICAD III).
JICS begins study for grant aid for Japanese NGO projects by the Ministry of Foreign Affairs.
JICS Vision formulated.
JICS administrative structure reorganized into 2 offices, 3 departments and 8 divisions. Office ofPersonnel Affairs created.
JICS participates in International Cooperation Festival 2003.
Meeting held to report on activities and exchange opinions concerning support for nongovernmental organizations (NGOs).
Cambodia—FY2002 grant aid for conflict prevention and peacebuilding: board of trustees
member Yoriko Meguro, professor, Sophia University, carries out field inspection of project.
Afghanistan—JICS secretary general visits two companies receiving grants in connection with agrant for producing a magazine with a small circulation.
Students from Sayama Municipal Chuo Junior High School visit JICS as part of “integrated study.”
JICS Afghanistan office moves to a new location (following a bombing incident on November 22 at
the Kabul Intercontinental Hotel, where the JICS local office was then located).
Afghanistan—Ceremony held to mark completion of Phase I of the Programme for Improvementof Trunk Road from Kabul toward Kandahar, FY2003 Road Sector Programme Grant Aid.

SARS spreads

Iraq—procurement agent contract signed for FY2003 emergency grant aid: Project for theProvision of Police Vehicles.
Organizations selected to receive support through the FY2003 program in support of NGOs.
Project manager handling 2KR receives The Medal for Distinguished Civil Merits from thegovernment of Albania.
2nd meeting of the JICS Board of Directors and Board of Trustees for FY2003 (change of Presidentand Chairman of the Board of Trustees).
Afghanistan—procurement agent contract signed for FY2003 Road Sector Programme Grant Aid:
Programme for Improvement of Trunk Road from Kandahar toward Herat.
Sri Lanka—procurement agent contract signed for FY2004 non-project grant aid (first nonproject grant aid for this country).

Japanese Self-Defense Forces deployedin Iraq

Final report of the Commission on
Human Security released

Palestine and Israel accept the “roadmap” for Middle East peace
The Iraq Governing Council, aprovisional body led by the UnitedStates and the U.K., is formed (July)
Japan’s ODA Charter revised (August)

JICA becomes an independentadministrative institution
Japan pledges 5 billion dollars at theInternational Donors' Conference on
Reconstruction in Iraq
UN General Assembly High-Level
Dialogue on Financing forDevelopment heldMajor earthquake in Iran2004
January

162728March232931

4

New constitution adopted for
Afghanistan by the Loya Jirga
International Conference on
Afghanistan held in Berlin