R e a l A i d i n A c ti o n

Annual Report 2019Japan International Cooperation System
Year ended March 31, 2019

Profile of JICS
Japan International Cooperation System (JICS) is the first organization in Japan to specialize in procurement operations within
the field of international cooperation. JICS’ activities primarily
focus on aid project-related procurement and supervision
operations within Japan’s Official Development Assistance(ODA) programs and other cooperation programs with developing countries.

JICS’ Role: “Making Aid Tangible
through Procurement”
Aid Agreement

Procurement

Why is a procurement expert organization necessary?

Procurement using ODA funds—which are sourced from taxes
paid by Japanese citizens—must be carried out economically,in a timely manner and to the required level of quality. At thesame time, it is imperative that the procurement process be
impartial, fair, competitive and transparent. To achieve theseobjectives, purchases of materials, equipment, facilities and services need to be conducted according to public procurement
rules through a tender process. Furthermore, aid funds must be
managed appropriately.
To meet these requirements, JICS carries out these procedures as the procurement agent of the recipient-country
government. A procurement agent possesses expert knowledge
and experience relating to public procurement, materials andequipment, and other relevant aspects.

ODA

1999–2003 Expansion Phase
A Brief History of JICS

1989–1993 Initial Phase

1994–1998 Growth Phase
Expansion of procurement consulting
services and procurement agent services

Expansion of procurement consulting
services
Diversification of procurement agent services through reconstruction assistance1989 Established as an incorporated
foundation
Technical Cooperation-related services
Grant aid-related consulting services
Procurement agent services within
Japan’s grant aid programme

1989 Began compiling specifications on
Technical Cooperation and studies ofgrant aid projects for the increase of foodproduction
1990 Began conducting follow-up studies
for grant aid projects
1993 Began procurement agent services
for Non-Project Grant Aid

1997 Began services for grant aid projects
for child health1998 Began consulting services for Grant
Aid for the increase of food production
and services for Emergency Grant Aid
projects
From 1998 Assistance to Indonesia during
the Asian currency crisis: Procurement ofpharmaceuticals and medical equipment,
and maritime transportation of government rice through Emergency Grant Aid

2002 Began services for grant aid for research assistance projects and consulting
services for Grant Assistance for the Food
Aid project2003 Began services for Grant Aid for
Conflict Prevention and Peacebuilding
projects
From 2002 Road construction, etc., in
Afghanistan through Emergency Grant
Aid and Non-Project Grant Aid
From 2003 Collection of small arms in
Cambodia through Grant Aid for Conflict
Prevention and Peacebuilding

From 1993 Procurement of equipment for
Mongolia under Non-Project Grant Aid

Procurement of Goods

Commencement of Project Execution Supervision
and Management Services in Construction Projects

Mission, Vision
and Values (MVV)01

As articulated in JICS’ MVV, each employee works tocontribute to the peace and stability of the international community. To achieve this goal, we strive
to improve the quality of our services as a service
provider through activities in developing countries
and Japan.

Materials and Equipment

JICS’ Mission, Vision and Values (MVV)M I SSI O N
Facilities

JICS will contribute to the peace and stabilityof the international community as a player
in the international cooperation field.

ServicesV I SI O N

2012–2018 Reform Phase
2004–2011 Transitional Phase
Increase in project management ofconstruction as part of procurement
agent services
Commencement of services related
to ODA Loans and internationalorganizations

2012 Transited to a not-for-profit,
general incorporated foundation
Strengthened competitiveness andimplemented strategies to further
develop existing businesses
Developed new businesses targeting
Public–Private Partnerships (PPP) andthe private sector

JICS aims to be the world’s best service provider
in the international cooperation field.

VALUES

Impartiality, Fairness and Transparency
JICS will maintain an impartial stance to ensure
fairness and transparency.

Reliability

JICS will respect local input and build trustwith its clients.

Maximizing the Impact of Aid

JICS will focus its efforts on maximizing the impactof aid.

Creation and Challenge

JICS will be unrestricted by conventional ideas,
and take up the challenge of creating andproviding new services.

Contents
02 A Message from the President
2004 Began services for primary checks
of ODA Loans procurementrelated documentation
2006 Began procurement agent
services for projects related to international organizations and services
for Grant Aid for Community Empowerment
2009 Began services for Program
Grant Aid for Environment and Climate
ChangeFrom 2004 Procurement of portableelectrical transformers and water treatment equipment, etc., under Emergency Grant Aid as part of reconstruction
assistance in Iraq
From 2005 Sea wall reconstruction,
hospital construction, bridge construction, etc., under Non-Project Grant Aid
as part of assistance in dealing withdamage from the 2004 Indian Ocean
earthquake and tsunami
From 2006 Assistance for measures by
the ASEAN Secretariat and the World
Organization for Animal Health tocombat an avian influenza epidemic
Development of Management Services
in Construction Projects

2013 Began participation in JICA’s Support for Japanese Small- andMedium-Sized Enterprises (SMEs) Overseas Business Development2015 Won a new contract for a Grant
Aid Project under Public–Private
Partnership2016 Won a new contract for a Grant
Aid Project for Construction
From 2015 Project for Reduction of
Non-Revenue Water in Yangon City,
Myanmar, through Grant Aid Project
under Public–Private Partnership
From 2016 Project for the Reconstruction of Flood-Affected Schools in
Myanmar, through Grant Aid Project
for Construction

03 Special Feature

Principal Activities in Fiscal 201806 Development Cooperation and the Role of JICS in ODA
09 JICS’ Major Activities in Fiscal 201812

Ongoing Operational Domain Expansion

Description of Projects
14

Countries Targeted for JICS’ Main Projects

16

Current Profit by Scheme and Client

17

Fiscal 2018 Business Report

18

Project Results by Country

20 List of Projects in Fiscal 2018
24 JICS’ CSR Work

Reference Materials
25 Fiscal 2018 Balance Sheet
26 Fiscal 2018 Statement of Net Equity Increase (Decrease)
27 Organization Chart and Board of Directors/
Board of Trustees

Launch of Management Services
in Projects under PPP

28 Compliance
29 Outline of JICS

02

A Message from the President

To contribute to peace and stability in the international community,
we will strive to further refine the strengths we have developed over
30 years, and aim to become an international cooperation “integrator”
that gives shape to meeting the needs of recipient communities.
are also included, we have a record ofachievements covering some 150 countries and regions. Our strengths stemfrom our technical expertise relating tomaterials and equipment along withfacilities and infrastructure construction,
spanning a broad array of fields; theinformation we have accumulated oneach country and region, as well as our
network of contacts at a myriad of organizations around the world; and our highlevel of compliance awareness. Furthermore, JICS’ staff approach their work daily
with an enthusiasm that may be characterized as “wanting to contribute to
the economic and social development ofdeveloping countries through the effective realization of ODA projects.”

JICS Has Grown as a Procurement
Expert Organization while Adapting
to the Changing Environment forInternational Cooperation
In April 2019, JICS celebrated the 30th
anniversary of its founding. Over that
period, the environment for international
cooperation has undergone significant
transformations in response to turbulentchanges in the global situation. I wish to
express our sincere gratitude to the many
stakeholders involved in the ODA sector,
without whose generous support andcooperation we would not have beenable to play the role we have throughout
these changing times. Those stakeholders
include the Government of Japan andits affiliated agencies such as Japan’s
Ministry of Foreign Affairs and the Japan
International Cooperation Agency (JICA),
the governments of recipient countries,
and partners from industry involved in
the provision of ODA.
JICS was established in 1989 as Japan’s
first procurement expert organization in
the international cooperation sphere. JICS
initially provided support operations forstudies and procurement within technicalcooperation projects and general grant
aid projects. In 1993, JICS commenced theprovision of procurement agent services
for grant aid projects.
Since then, procurement agent services
have broadened in scope from procurement of products to management offacilities and infrastructure construction

projects, in response to new aid issues
faced by the international community.
Such issues included support following
the 1997 Asian currency crisis, post-war
peacebuilding following the Cambodian
civil war and the wars in Afghanistan andIraq, and recovery and reconstruction
following the 2004 Indian Ocean earthquake and tsunami. In recent years, JICS’role has further expanded to include suchareas as Grant Aid Projects under Public–
Private Partnership, which contribute to
the adoption overseas of Japan’s advanced infrastructure technology.
During this period, JICS has also been
involved in providing services for primary
checks of procurement-related documents under Japanese ODA loan projects,
and procurement agent services for
projects related to internationalorganizations.

The Realization of Appropriate Procurement Bolsters the Effectivenessof ODA Projects
In order to use Japan’s aid funds efficiently while giving shape to meeting theneeds of recipient communities, appropriate procurement of equipment andfacilities is crucial. We are proud to play avital role as a procurement organizationin ensuring that this process is carriedout effectively.
JICS has an operational track record ofproviding procurement agent services in
122 countries, and when related services

Working to Achieve International
Cooperation-Related Project Outcomes That Provide Satisfaction
and Benefits to a Diverse Rangeof Stakeholders
Having reached its 30th anniversary, JICS
has set a future direction of aiming tobecome an international cooperation“integrator” that is able to support both
Japan’s development cooperation policies
and efforts to achieve the United Nations’Sustainable Development Goals (SDGs).
JICS is a neutral organization that possesses know-how in public procurement,
and I believe that JICS is capable of identifying and linking the needs of a wide
variety of stakeholders. JICS will work
to enhance its responsiveness and its
capabilities in producing proposals while
helping to plan and execute aid projects
that have a distinctive and visible connection with Japan and other international cooperation projects in ways that
optimally meets the needs of recipient
communities. While procurement agent
services remain JICS’ mainstay, we arealways conscious of the problem solving
demanded by the international community, and hence we are committed
to taking up challenges in new service
spheres.
September 2019

Toru Kubo
President

Japan International Cooperation System (JICS)

Special
FeatureRoundtable Discussion:

Celebrating JICS’ 30th Anniversary

Japan International Cooperation System Annual Report 2019

To Become an International Cooperation “Integrator”
Since its founding in 1989, JICS has worked to expand and improve the quality of the services it provides, while following
the trends and demands of the times. Celebrating JICS’ 30th anniversary, we are striving not only to continue our role asa procurement expert but also to become an “integrator” that creates new value in the field of international cooperation.
In this section, JICS directors and staff discuss the organization’s history and its future outlook.

To Realize the Trends and Demands of the Times and to Act on Them

Kazuki Takeuchi
Vice President andSenior Director General

Nobuyuki Ezaki
Director,
Country Assistance Division 3,
First Management Department

Aya Ishii
Assistant Section Director,
Country Assistance Division 6,
Second Management Department

Takeuchi: JICS was established in 1989, when
the Government of Japan was expanding its
ODA program. At the time, there was a strong
need for expert organizations that could realize ODA projects in a rapid, neutral, fair andtransparent manner. JICS began from scratch
by learning the basic processes necessary forthe execution of ODA projects. Sometimes thisincluded learning technical knowledge andskills from personnel at overseas institutions.
During our first decade, we continued to
expand our working scope in response to thevarious needs from the Government of Japanand from domestic and international society.
For example, in the reconstruction support
program in Afghanistan in 2003, JICS was
involved in the provision of infrastructure facilities. Our services were not only limited to procurement but also to program management
under the Peacebuilding and Comprehensive
Small Arms Management Program in Cambodia (2003–2008). We established the Japan
Assistance Team for Small Arms Managementin Cambodia (JSAC) to carry out the collectionof small arms through collaboration with various program members. Furthermore, as partof reconstruction support following the Indian
Ocean earthquake and tsunami in December
2004, JICS was involved in the procurementof materials and equipment and also theconstruction of facilities and infrastructure inIndonesia, Sri Lanka, and the Maldives. I was
involved in several of these projects, which inhindsight were turning points for JICS.
Ezaki: JICS has undertaken a large number of
construction projects. This is one of the fields
in which we have extensive expertise. With
regard to projects to build secondary schools
in Ethiopia—which I managed since 2014—
we were involved from the beginning of
selection of local construction companies
and supervised the entire process throughto completion for each project.

Collection of small arms in Cambodia (ceremony
in 2003 at which weapons were incinerated) ↓The Program Grant Aid for Environment andClimate Change was targeted at developing
countries that lack the implementation capabilities and financial resources to achieveboth reductions in greenhouse gas emissions
and economic growth, and countries thathave been made vulnerable by such adverse
effects of climate change as drought or desertification. JICS’ role was not limited to the
procurement of equipment necessary forflood control measures and the reconstructionof cyclone-hit regions. We also handled the
procurement of services, such as consultants
and construction companies, as well as overallmanagement of projects. JICS’ experience inthe supervision of construction projects has
also led to involvement in current operations
relating to Grant Aid Projects under Public–
Private Partnership (PPP)—a new form ofdevelopment assistance—in Myanmar andCambodia.
Ishii: When I joined JICS in 2010, I was involvedin the procurement of equipment such as
Japanese-manufactured construction machinery and heavy vehicles through the Program Grant Aid for Environment and Climate
Change. These were used in reconstruction
efforts following severe flooding that affected
a wide area of West Africa in 2009. JICS has
been engaged—on an ongoing basis—in Food
Assistance and other projects for the satisfaction of basic human needs. In addition, we are
expected to respond to the trends and demands of the times, such as preventive measures to cope with natural disasters as a resultof climate change. Introducing high-quality,
Japanese products for use overseas is one such
trend. When I worked at the Embassy of Japanin Morocco, I was present as a spectator to
the project to procure advanced equipment
manufactured by Japanese small- andmedium-sized enterprises (SMEs) for digitizing
cultural assets. The equipment was delivered

Construction of an evacuation shelter as part of reconstruction assistancefollowing the Indian Ocean earthquake and tsunami (Indonesia, 2009) ↓

03

04

Special Feature

Roundtable Discussion: Celebrating JICS’ 30th Anniversary

to the National Library of the Kingdom of
Morocco in accordance with their strong
wishes to preserve and deliver their precious
manuscripts and documents to the next
generation in a sustainable way. Through thisproject, JICS contributes to the principal objectives of both Japan and Morocco.
Takeuchi: JICS has proactively expanded into
services outside of the Grant Aid scheme. From

2004, JICS began providing primary check services for procurement-related documents under Japanese ODA Loans. Since 2006, we havebeen a procurement agent for the Associationof Southeast Asian Nations (ASEAN) and otherinternational organizations. JICS’ operations
have always remained united in its efforts to
respond to the various needs of society basedon the transparent management of funds.

Many Assets Built Up by JICS
Ezaki: JICS has carried out procurement agent
services, surveys, screening and other operations in many forms vis-à-vis more than 150
countries and regions. One of JICS’ strengths
is the large number of staff who are proficient in foreign languages. This enables JICS tobuild sound relationships with stakeholders
in English-, French- and Spanish-speaking
countries. Another asset is our broad knowledge and our extensive database covering
manufacturers of all types of equipment. Thishas been built up through the experience wehave accumulated in handling procurement
across a diverse range of fields. We also have asolid grasp of local conditions in each country,
such as shipping terms and customs clearance
systems. While human and information resources are extremely important, I believe that
JICS’ greatest strength is its ability to respondrapidly to the requests of project stakeholders.
As an organization focused on supporting its
frontline staff, JICS is highly adept at accurately
understanding information from donors andbeneficiaries. Hence, we are able to speedily

respond to the requests and questions received from recipient-country governments
and the Government of Japan by utilizing ourorganizational experience and the knowledgeof individuals within it.
Ishii: I feel that the trust built up over 30 years
by those who have been dedicated to theorganization’s projects is one of JICS’ most precious assets. Thanks to our sound relationships
with stakeholders through their extensive
knowledge and professional operations, I am
able to carry out my mission smoothly.
Takeuchi: I think it is important to emphasize
JICS’ integrity. The funds used for ODA projects
originally come from Japanese taxpayers. As
such, it is necessary for JICS to accomplish
projects in a fair and transparent manner andwith integrity. Without this in mind, we would
be unable to fulfill our social mission, and thenpeople’s trust and expectations in international cooperation would be lost. Our corporate
culture places a strong emphasis on compliance, as this is essential for an organization
established as a public service corporation.

To Become an “Indispensable Organization”
Ezaki: JICS continuously thinks outside the box
and strives for best practices. To deliver aid
projects that truly meet local needs—within
the budget and schedule—we draw on our
entire collective knowledge and experience.
A project to which I was assigned in 2018 forthe procurement of a patrol boat for Viet Nam
had a limited budget and schedule. Within thissituation, I placed importance on compressing
the schedule for the design phase. As a result,thanks to such factors as the full cooperation
provided by Japan’s National Police Agency,

we were able to deliver a high-quality,
Japanese-built patrol boat within a shortdelivery schedule.
Ishii: There are many actors within the field of
ODA. I believe that JICS’ value is its ability tosteer a project to success by following up on
aspects that other key stakeholders would beunable to cover. In Food Assistance, at its final
stage, bilateral discussions between the donor
country and the recipient country are held tofollow up on how to best use (distribute orsell) granted rice, wheat and other foodstuffs

Handover ceremony for a secondary school (Senegal, 2013) ↓Drilling rig for geothermal energy development(Ethiopia, 2015) ↓Rice being loaded on a ship
for Mauritania (2018) ↓To Become an International Cooperation “Integrator”
Japan International Cooperation System Annual Report 2019by the recipient country and to check thestatus of the use of funds set aside from thesale of the granted products (the so-called“counterpart funds”). JICS’ role is to coordinate
these discussions as the secretariat as it is in
the unique position of having a grasp of theoverall procurement picture. This is not limited to Food Assistance. We also follow up to
ensure that the procured goods will be utilized
appropriately by the recipient country for theireconomic and social development.
Takeuchi: Although JICS has accumulated experience in the international cooperation field

for over 30 years, it must frequently tackle
issues that we as a single organization cannot
solve alone. In such situations, JICS utilizes the
networks it has cultivated to date to identify
potential partner companies and institutions.
Through collaboration with these partners, we
aim to realize solutions to the issues we face.
This type of activity is one facet of becoming
an “indispensable organization.” By linking
together the technologies and ideas of awide range of enterprises, JICS can generate
new value that will create benefits for all
stakeholders.

To Become an “Integrator”
Ezaki: JICS links together diverse stakeholders
involved in international cooperation—including donors, the governments of recipient
countries and companies—thereby giving
tangible shape to programs and projects andenhancing their effectiveness. JICS has set a
goal of becoming an “integrator” that contributes to the social and economic developmentof recipient countries. For JICS to play the roleof an “integrator” at the core of international
cooperation projects, we need to carefullybuild sound relationships with all stakeholders.
Until now, we have cultivated relationships
with companies from the position of procurement agent—in other words, as the organization tasked mainly with implementing publictenders for procurement contracts. However,in pursuing activities to support the overseas
expansion of companies—including JapaneseSMEs—seeking to provide solutions to issues
faced by developing countries, we must win
companies’ trust from the position of a new
business partner.
Ishii: Even in cases where the needs of stakeholders are somewhat abstract at the startof the process, by the end the international
cooperation “integrator” must transform theseneeds into a tangible form. For example, when
we receive a request, such as “We want to improve the healthcare environment,” we closely
examine the needs and current situation of
the recipient country by asking such ques
tions as “What kind of a training and support
system does the country need to establish
for enabling local personnel to become
Japanese-manufactured CT scanner delivered to Ukraine (2018) ↓proficient at using equipment?” In addition, webuild up a detailed picture of such factors as
relevant policies and the distribution market
for equipment. Hence, we develop a base of
information from which the project will begiven tangible form and provide optimal solutions from the perspective of all stakeholders,
including the Japanese and recipient-country
governments, supplier companies, and end
users. Within an approach where all stakeholders in Japan are working together toaddress global issues, such as achieving theUnited Nations’ Sustainable Development
Goals (SDGs), I believe that part of our mission
as an “integrator” and one of the stakeholders
is to link together a myriad of actors, including
government agencies and enterprises.
Takeuchi: The advance of technology andsignificant changes in the global economy andinternational situation have a large impact on
the international cooperation field. The model
for conducting international cooperation continues to evolve in response to the changing
times while adhering to the values articulatedby the international community, such as the
SDGs. Within this changing environment, weneed to become an organization that can
respond flexibly while maintaining the public nature required of a procurement agent
organization. If we can achieve this, we believethat JICS will be able to further increase its
contribution to global society, specifically by
evolving into an “integrator” that links together a diverse array of institutions and enterprises in many countries.

Handover ceremony for an ambulance delivered to Saint Lucia (2019) ↓05