Part

I

Main Activities in FY2008

Part

I

Main Activities in FY2008baMarking
20 Years
1. JICS and the New
Japan's ODA(1) The New Implementation
Scheme for Japan's ODA(Official Development
Assistance)
The 20 years since 1989, when JICS was
founded, have been a time of turbulentchange in the state of the world, and theenvironment in which Japan's ODA operates
has also changed greatly. In 1989, when JICS
was founded, Japan led the world in its proPhoto a: A school in Indonesia reconstructed with aid forTsunami damage recovery
b: Children on a project site in Madagascar
c: A school building being constructed in Lesothowith Grant Aid for Community Empowerment

4cJapan International Cooperation System (JICS) marked its 20th anniversary in
April 2009.
Global conditions and the economic environment have drastically changed
in last 20 years, and the needs for Official Development Assistance (ODA)
have also changed. Accordingly ODA and the implementation schemes
which deliver it have changed dramatically. In October 2008, the Japan
International Cooperation Agency (JICA), an ODA executing agency, and theODA (loan aid operations) division of the former Japan Bank for International
Cooperation (JBIC) merged, with the further addition of part of the grant aid
operations of the Ministry of Foreign Affairs, to create New JICA.
The duties and role of JICS have also changed, in line with the progress ofJapan's ODA, and expanded. JICS' duties have broadened, to include procurement of services as well as of equipment and materials, and its duties now
commonly encompass management of entire projects for the provision offacilities.
JICS has also expanded one step from Japan's ODA to work as a procurement agent for international organizations and foreign governments for thesmooth implementation of international cooperation projects.
This special feature examines the work of JICS within the new scheme ofJapan's ODA and presents projects commissioned by international agencies
and other bodies.

vision of ODA. But the Japanese budget for
ODA peaked in 1997, and is now at approximately 60% of the peak level, making Japanthe fifth-largest ODA provider. The declining
budget obliges us to implement ODA programs more effectively and efficiently, andthe Japanese government is working to thatend in various ways.

The ODA Charter was adopted in 1992,
and in 1999, the Overseas Economic
Cooperation Fund (OECF) merged with the
Export-Import Bank of Japan to establish theJapan Bank for International Cooperation(JBIC). The New ODA Charter was adopted
by cabinet resolution in 2003, with the aims
of making ODA more strategic and transpar-

Japan's ODA

Areas handled by new JICA

Grant Aid*
Bilateral Grants
Technical Cooperation

Bilateral Aid
Official Development
Assistance (ODA)

Bilateral Loans

Multilateral Aid

Loan Aid (Yen Loans)
Subscriptions and Contributions
to International Organizations*Part of grant aid is under the jurisdiction of the Ministry of Foreign Affairs.

ent, encouraging broad-based public participation and deepening understanding ofJapan's ODA in Japan and abroad. In thesame year, the Japan International
Cooperation Agency was converted to anindependent administrative agency, and its
Japanese name was changed, among a
range of other reforms.
Then, in October 2008, the Japan
International Cooperation Agency (JICA) andthe ODA (loan aid) division of the former
JBIC merged, with the further addition ofpart of the grant aid operations of the
Ministry of Foreign Affairs, to create a new
ODA implementation body.
This integrated three different types ofassistance, namely technical cooperation(JICA), loan aid (JBIC) and grant aid (Ministryof Foreign Affairs), for unified implementation by the new JICA. Led by the vision of“Inclusive and Dynamic Development,” New
JICA is beginning work on comprehensive
aid that employs organic combinations ofaid methods.

(2) The Broadening
Operations of JICS, and
its Reorganization
JICS had previously focused on procurementof equipment and materials and surveys
under technical cooperation and grant aid.
That remained true under the new ODA
implementation scheme.
JICS began its operations in 1989 with the
preparation of specification documents forequipment and materials needed for grant
aid surveys and technical cooperation. From
1990, its role expanded to include procurement management for grant aid, and thepurchasing and shipping of equipment andmaterials related with technical cooperation.
In 1993 JICS started working as a procurement agent for Non-Project Grant Aid. Its
work expanded and diversified to cover abroad range of procurement tasks.
Before 2001, JICS' operations had mainly
been focused on procurement of equipment
and materials, but in that year, JICS undertook a reconstruction project for
Afghanistan that became a turning point.
After that, JICS began to take charge of management of facilities construction projects,
through its roles in the procurement activities. JICS was commissioned with Iraq reconstruction grant aid and Cambodian peacebuilding projects in 2003, and with reconstruction projects for the Sumatra
Earthquake and Tsunami Disaster in the
Indian Ocean in 2005, and there has been an
uninterrupted rise in facilities projects. Grant
Aid for Community Empowerment andGrant Aid for Disaster Prevention and

The Cool Earth Partnership

Adaptation measures
Clean Energy Access Aid

Grant aid,
technical cooperation(Around JPY250 billion)

Contributions tointernational organizations

Mitigation measures

Loan aid

ODA loans for climatechange countermeasures(Around JPY500 billion)
Aid for private-sector projects(Up to JPY500 billion)(Around JPY1 trillion)

Reconstruction were established in 2006,
and Environment Program Grant Aid began
in 2008. In these project schemes as well,
JICS has been building the needed facilities,
in addition to procurement of equipment
and materials.
In these facilities construction projects,
JICS provided comprehensive project management, acting as a procurement agent forthe counterpart government, identifying
local needs, coordinating among diverse
agencies, procuring equipment and materials, and selecting and contracting constructors for facilities, as well as managing
progress and funds.
JICS has built up a body of expertise ininternational procurement, and to put thatexpertise to good use, it is strengthening its
efforts to win orders for international cooperation projects implemented by international organizations and foreign governments.
In addition to its usual work in procurement of equipment and materials, JICS has
been working in recent years for projects tobuild facilities, and for projects from international organizations. In October 2008, JICS
reorganized in order to respond to thesediverse changes more swiftly and appropriately.
This reorganization made the FirstManagement Department responsible forfacilities construction-related projects, suchas Grant Aid for Community Empowerment
and Grant Aid for Disaster Prevention andReconstruction, and made the Second
Management Department responsible forwork focused on procurement of equipment
and materials, such as food aid, Grant
Assistance for Underprivileged Farmers,
non-project grant aid, technical cooperationand cultural grant aid. A Office of Quality
Management was also established to provide cross-departmental management of
the quality of work and outcomes from thetwo departments. JICS aims to strengthen
the specializations of the two departments,
with their accumulated experience, while
also fostering inter-divisional collaboration,and to greatly improve the quality of its

Environment program
grant aid

work, with the needs of clients constantly inmind.

(3) New Environment Program
Grant Aid
■ The Cool Earth Partnership

Environmental issues are a challenge for thewhole world, and there is a social awarenessthat they must be tackled by diverse measures and at all levels from individuals tonations. Japan has been addressing theenvironmental problems of developing
countries for many years. In January 2008,
Japan announced the Cool Earth Partnershipat the World Economic Forum (the Davos
Conference).
The Partnership aims to help to stabilize
the climate by providing aid worth USD10
billion (JPY1.25 trillion), over five years from2008, to developing countries which are trying to reconcile greenhouse gas emission
cuts with economic growth. “Environment
Program Grant Aid” was established in
FY2008 as grant aid for the implementationof this assistance.
■ Environment Program

Grant Aid
The Environment Program Grant Aid calls
aid for the formulation of policies and plans

An urban street in Bangladesh

5

Part

I

Main Activities in FY2008“Program Decision Support” and aid for specific projects “Program Implementation
Support.” The latter is further subdivided
into two types: “Comprehensive Support,”
which combines hard aspects like facilities,
equipment and materials, with soft component (technical cooperation) aspects such asdispatch of experts, training and workshops;
and “equipment supply,” which basicallyprovides equipment and materials.
In this grant aid, JICS serves as a procurement agent, based on a contract with thegovernment of the developing country, providing procurement of equipment, materials
and services, as well as management of the
project as a whole.

Environment-friendly Garbage Trucks

Bangladesh
The Programme for Improvement of
Solid Waste Management in Dhaka City
Toward the Low Carbon Society
The capital region around Dhaka, has a population of over 12.2 million, and management of the growing volume of waste is
becoming a serious problem. JICA conducted a development study and implemented atechnical cooperation project starting in
February 2007, as well as dispatching Japan
Overseas Cooperation Volunteers.
Raising garbage collection and transportation capacity is becoming an importanttask in Dhaka. Many of the garbage collection trucks and other equipment havebecome dilapidated, and most will become
unusable within the next few years.
However, the government could find nosource of funding for independent procurement of garbage collection trucks, andasked Japan for grant aid.

Illustration of a completed garbage collection truck station

Japanese counterparts took the view thatthe introduction of garbage collection trucks
fueled by compressed natural gas (CNG)
would assist a transition towards a low-carbon society and a recycling-based society.
On February 18th, 2009, “The Programme
for Improvement of Solid Waste
Management in Dhaka City toward the Low
Carbon Society” was adopted as comprehensive-support type Environment Program
Grant Aid. For this project, JICS signed a procurement agent agreement with the city of
Dhaka and is providing fund management,
procurement of equipment and materials,
and management of the project as a whole.
This aid will procure 45 CNG garbage collection trucks, 20 arm roll trucks, and 35
compactor trucks, construct facilities for the
maintenance and management of garbage
collection trucks, and dispatch experts inenvironmental education, the maintenancemanagement of vehicles and facilities, andmonitoring of greenhouse gas reduction
effects.
This project is expected to reduce the CO2
emission volume per garbage collection
truck per day from approximately 45kg toapproximately 17kg, and raise the garbage
collection rate in Dhaka from 58% to 67%. As
a result, the methane and other gases emitted from illegally dumped waste will be
reduced, as will emissions of greenhouses
gases, and these improvements are expected to mitigate climate change and improve
the living environment.

(4) New Developments in Grant
Aid for Community
Empowerment■ Assistance for community

development through projects
such as school construction
A CNG workshop in Dhaka, which provides replacement parts, repairs and other services

6

In 2008, JICS started six new projects in

Grant Aid forCommunity
Empowerment. The
six target countries
were Vietnam,
Bhutan, Laos, Bolivia,
Nicaragua andLesotho. Of those,
the aid for Vietnam,
for which JICS provided procurement
agency, attracted
attention as the firstmulti-component
Grant Aid forCommunity Empowerment project. A
comprehensive
package, it included infrastructure improvement in areas damaged by forest fires,
specifically filling low ground with earth toimprove forested areas, the construction of
canals, roads, bridges, medical facilities, educational facilities and other works, together
with provision of equipment and materials.
Selection of construction contractors wascompleted within FY2008, and the construction work will be done in FY2009.
All the other projects were for school construction. In each case, JICS has been working as a procurement agent on behalf of thecounterpart government, and is working
steadily on procurement preparations, suchas confirming final construction locations
and numbers of classrooms, and selecting
construction contractors.
Construction works began in FY2008 for
four projects for which procurement agent
agreements were signed in FY2007, in
Senegal, Niger, Madagascar and Ethiopia.

Approaching the Completion ofConstruction Phase 1

Madagascar
Project for Construction of Classrooms
for Elementary Schools in the Regions of
Antsiranana and Toliara
In Madagascar, construction, divided into
phase I and phase II, is under way in 52 elementary schools (204 classrooms).
Construction of phase I (65 classrooms in 24
schools) began in FY2008 and was largely
completed by March 2009. Construction inphase I was in the region of Toliara in theSoutheast. Phase II is scheduled to build 139
classrooms in 28 schools in the region of
Antsiranana in the Northeast.
Completing construction within theplanned period required hard work by local

schools in theprovinces of North
Shawa, West
Herarge and Arsi.
JICS has beenworking on various
preparations forconstruction in
FY2008, after
agreeing a procurement agent
agreement with
the Ethiopian government in
December 2007.
Most of theplanned sites are
Local people standing in front of a new school in Madagascar
in isolated parts of
the interior, farfrom trunk roads. Some require transportation of equipment and materials by donkey,
while others require driving for five hours ormore on unpaved roads. As it is extremely
difficult to access the region in the rainy season, which lasts from June to September,the construction period is constrained by
the need to complete work within the dry
season. This necessitated swift selection ofcontractors. Also, rapid price inflation andother factors forced a reduction from the iniA goat, given as a gift in Madagascar
tial plan in the quantity of construction.
After a tendering process for the selection of
construction contractors, and following concontractors. As these were medium-sizedfirmation with the Ethiopian government, it
local companies, not backed by large capital,
was decided in December 2008 that 200
it was certainly not easy for them to arrange
classrooms in 31 schools should be conequipment and materials and organize
structed, and contracts were signed withfunding, but they did their best until theeight local construction contractors. In
work was done, to reach the goal of building
January 2009, the currency was devalued
schools for the children. At a handover cereagainst the US Dollar, which opened up
mony at a school in the mountains, local ressome margin in Dollar-based procurement
idents gave a goat as a gift to express theirfunding, and it was decided that additional
gratitude for the realization of their own
28 classrooms should be built at five schools,
school.
for a final total of 228 classrooms at 36
This plan built the learning environment
schools.
for 10,000 children. The manager of theFollowing this adjustregional education office, attending a school
ment in the procurement
handover ceremony said, “We will use thispreparation phase, conschool carefully for 50 years, and then a few
struction work began onof our graduates will thank you by coming
the first 31 schools in
to build schools in Japan.”February 2009, without
problems. Work progressed smoothly, andlargely according to plan,with excavation and layFacing an Array of Constraints
ing of foundation stones
in some schools completed by March 2009. Final
Ethiopiacompletionof construcProject for Construction of Primary
includingthe addition,
Schools in Oromia Region
tional five schools, is
expected in 2010.
This project in Ethiopia was initially planned
to provide 348 classrooms in 57 elementary

From the Field

Madagascar and Aid forCommunity Empowerment
The Exchange of Notes for the 5th Non Project
Grant Aid, between Japanese and Malagasy
governments, was signed in November 19th
1999. JICS was designated as the Agentaccording to the Agreement of December
15th 1999. Following these signing, JICS liaison office in Madagascar was created in April
2000. Its first office was established in Isoraka,
Antananarivo (Tana). Two local staffers including myself worked there to represent JICS. Dueto the political and economic circumstances,the liaison office had to relocate to anotherbuilding in Isoraka in September 2002.
Since 2000, various projects for Madagascar
have been entrusted to JICS Tana office: NonProject Grant Aid, KRII, KRI, Cultural Aid , etc.
When Grant Aid for Community
Empowerment started in 2007 , the liaison
office moved for the second time to
Ampefiloha. From this date, Japanese office
staff have worked full time and the number of
local staff increased. Two project offices werealso created temporarily in Toliary andAntsiranana.
The office has changed address twice andvarious staff were replaced but me, I'm still
there. Maybe, in order
to be able to tell how
important for JICS Tana
to take part in the
Nippon-Malagasy
cooperation.

Manantena

Ethiopia - Foundation works for school construction

7

Part

I

Main Activities in FY2008

2. Aiming to Become
an International
Procurement Agency(1) The Road to Becoming an
International Procurement
AgencyJICS has supported Japan's ODA since it wasestablished in 1989, as the Japan's only public ODA procurement organization with a fairand neutral position. Over those 20 years,
JICS has broadened its role beyond procurement of equipment and materials, getting
involved in various projects for the provisionof facilities, and its diversifying work now
extends to the management of entire projects.
In recent years, JICS has been actively
engaged in the international cooperation
activities of international organizations andforeign government, alongside its work inJapan's ODA.
Starting with assistance for avian influenza countermeasures, commissioned by the
ASEAN Secretariat in FY2005, JICS was also
commissioned by the World Organisation
for Animal Health (OIE) in 2006 to provide
procurement services for special programs
involved in avian influenza disease control.
In FY2007, JICS was commissioned by the
ASEAN Secretariat to perform surveys for a
project to develop major roads spanning
three countries, Cambodia, Laos andVietnam. JICS was also commissioned with aproject in Mongolia by the Millennium
Challenge Account (MCA), the new US grant
aid system, together with Crown Agents.
In FY2008, JICS was commissioned by theProtective equipment stored in a warehouse in Cambodia

8

World Organisation for Animal Health (OIE)
to provide phase II of procurement services
for special programs involved in avian
influenza disease control, and by the AsiaEurope Foundation (ASEF) to support avian
influenza countermeasures.
In a different approach from Japan's ODA,JICS received a “Subsidy for Projects toPromote Oil Refining Technology and Other
Measures in Oil-producing Countries” fromthe Agency for Natural Resources andEnergy under Japan's Ministry of Economy,
Trade and Industry, and was able to put its
accumulated expertise to good use inprocuring vehicles quickly for Saudi Arabia.
JICS is starting to exploit its body of experience and knowledge in international procurement, built up in the course of its work
to date, to evolve into an international procurement management agency.

(2) Cooperation with International
Organizations, US Grant Aid,and Other Parties
Joint Commission with Crown Agentsfor a US Grant Aid Project in Mongolia

The Millennium Challenge Account(MCA)
In January 2008, JICS and Crown Agents, aBritish procurement agency, were commissioned with the MCA project in Mongolia.
“MCA” is the Millennium Challenge Account, a
new grant aid framework begun by the US in
March 2003. It provides large-scale economic
assistance for the purpose of poverty reduction in developing countries which havecleared certain USstipulated levels in
16 indicators inthree fields: Good
governance,
human development (health andeducation), andsound economic
policy.
On October
22nd, 2007, the US
and Mongolian
governments
agreed a compact(equivalent to a
Japaneseexchange of notes)
worth a total of
USD285 million for
MCA aid to
Mongolia.

The executing agency for this aid is “MCA
Mongolia,” an organization set up independently from the Mongolian government.
Through this project, it aims to contribute to
the reduction of poverty and sustainableeconomic growth through measures such asreform of property rights, vocational training
and health care, over a period of five years.

Acting as the procurement agent for
MCA Mongolia
Working with Crown Agents as a member ofthe procurement agent team for MCA
Mongolia, JICS dispatched a staff member towork in the project office, which was set up
in Ulaanbaatar in February 2008. The work
mainly consists of supporting procurement
procedures for goods and services procured
by MCA Mongolia. Specifically, this involves
tasks such as announcements of tender,
preparing tender documents, tender evaluation reports and contract documents.
Recruitment of consultancy companies fortasks such as project detailed designs, environmental assessments and audits began inJune 2008, and the consultant selection procedures, which occupied the first half year of
the project plan, have been completed.

Support for New Influenza
Countermeasures

In collaboration with related agencies• Vigilance Against New Influenza
In recent years, mutation of avian influenza
has raised concern of new influenza capableof human-to-human transmission. The factthat cases of human infection with avian (H5)influenza were particularly numerous in the
ASEAN region has prompted increased vigilance against new influenza.
As part of that vigilance, a project is under
way for rapid containment in the event ofconfirmed human-to-human infection in the
ASEAN region, by swiftly transporting drugs
to the affected country and administering
them to minimize the spread of infection.
The project uses a portion of the JapanASEAN Integration Fund (JAIF), which wasestablished at the ASEAN Secretariat with acontribution from the Japanese government, to procure and stockpile anti-viraldrugs (Tamiflu, Relenza) and personal protective equipment. JICS concluded an implementation agency contract for this projectwith the ASEAN Secretariat in April 2006, to
procure anti-viral drugs and equipment,
arrange warehouse facilities for them, andmanage stockpiles, and also to develop

ASEAN’s operations in the event ofwidespread infection with new influenza

Large-scale
infection

ASEAN Secretariat

JICS• Decision to release
medical supplies• Emergency releasecommunication• Instructions for the
release operation
for medical supplies

Rapid customs
clearance
procedures, etc.

Transport of
medical supplies

Stockpilewarehousein Singapore• Preparations
for release

Counterpart
governments

implementation procedures for emergency
operation in the event of a possible outbreak of pandemic influenza.

• Containment drill participation
In April 2007, JICS participated in a drill forcontainment of a new influenza strain,organized by the World Health Organization(WHO), the ASEAN Secretariat and theJapanese Ministry of Foreign Affairs. In the
drill, the ASEAN Secretariat and the Japanese
Ministry of Foreign Affairs, acting on theadvice of the WHO Western Pacific Regional
Office, decided to release stockpiled goods
and JICS arranged transportation. The drill
scenario, which mirrored the actual flow of
events, envisaged an outbreak of new
influenza in Cambodia, and verified whether
decision making within related agencies
and liaison between them could be performed quickly and efficiently.
JICS smoothly issued transport instructions to the stockpile warehouser in
Singapore and performed transport logistics
tasks, earning highly favorable evaluations
from the other parties.

• Advance distribution and training
The goods were stored in a warehouse in
Singapore, a logistical relay point, but for
more rapid implementation of containment,
it was decided that half of the stockpile

Workshop in Bangkok, Thailand

Medicalinstitutions, etc.
• Distribution of
medical supplies

should be distributed in advance to ASEAN
member states. JICS was responsible forarrangements and progress management
for the advance distribution.
The shipment of goods for advance distribution was combined, between July andDecember 2008, with an assessment of systems for reception of goods in ASEAN
nations, and of their reception of anti viraldrugs in an envisaged emergency situation,and related training. JICS attended theacceptance processing for the goods in eachcountry, and provided necessary advice.

• For early judgment
Rapid judgment of whether or not an
influenza virus infection is present at thepoultry level is important for preventing a
new influenza outbreak. To that end, Japan
contributed through the UN Food andAgriculture Organization (FAO) and theWorld Organisation for Animal Health (OIE)
for “the Japanese Special Trust Fund
Programme for Highly Pathogenic Avian
Influenza Control at Source in Southeast
Asia,” as an element in support for countermeasures against new and avian influenza
strains in Asia. Acting as the procurement
agency for the OIE, JICS procured testing
and analysis equipment to eight countries inSoutheast Asia, including Thailand andCambodia, and was involved in renovation

A Malaysian livestock research center researcher
using a sequencer supplied in Phase I

works in Thailand.
JICS was also commissioned by the OIE in
January 2009 to procure testing and analysis
equipment to Bangladesh, Bhutan, India,
Nepal, Pakistan, Sri Lanka and Mongolia.
Procurement of the necessary equipment isunder way.

■ Development of Trunk Roads

Linking Three Countries
Japan-CLV cooperation• The Cambodia-Lao PDR-Vietnam
Development Triangle
The region where Cambodia, Laos andVietnam come together has been dubbed
the “Development Triangle,” and there is aneed for development of road networks
among the major cities of the region, and of
its economic and social infrastructure. At asummit among Cambodia, Laos andVietnam in November 2004, the three countries agreed to work together for the development of the region. The Japanese government announced that it would cooperate

9

Part

I

Main Activities in FY2008

Ham Gang

SekongLaos
AttapuVietnamBanlung
LumphatLaos

Vietnam

Cambodia

Kaoh Nhek

Sen Monorom
Cambodia

Kien Duc

Roads Covered by the Studywith this Development Triangle, and it was
decided that USD20 million from the JapanASEAN Integration Fund (JAIF), which wasestablished with a contribution from Japan,
should be applied to the development of
the region.
The abbreviation “CLV” uses the initials of
Cambodia, Lao PDR and Vietnam.

• Feasibility StudyJapan and the CLV countries held a workinglevel meeting in June 2007 to discuss development aid to the Development Triangle. At
the meeting, the CLV side proposed a feasibility study (F/S) into refurbishment works(including some new construction) of thetrunk road network in the Development
Triangle, totaling 609.5km. The three countries wanted this feasibility study to be implemented as a project of the highest priority,using USD1.5 million of the USD20 million.
Implementation of the F/S was agreed at
the Japan-Mekong Foreign Ministers'
Meeting in January 2008, and JICS was
tasked with implementation and supervisionof the study. JICS began implementationand supervision of the study in March 2008.
The roads covered by the study were atotal of 609.5km of trunk routes, of which
362.3km were in Cambodia, 186km in Laosand 61.2km in Vietnam. The final study
report, taking into account issues such as
nature conservation and environmental
problems, was submitted to relevant agen-10

A staff member placing a JICS sticker on a carcies in February
2009. The report isto be used as basic
reference material
for preparation ofrefurbishment
plans and otherpurposes in future.

■ Improving Vehicle Servicing Skills

in Saudi Arabia
Vehicle procurement for a Ministry of
Economy, Trade and Industry project• Automobile High Institute
Following its steady economic progress,
Saudi Arabia graduated from the status of an
ODA target country in August 2008.
Therefore, it has been decided to end theSaudi Japanese Automobile High Institute(SJAHI) Project Phase II, a technical cooperation project implemented by the Japan
International Cooperation Agency (JICA)
within 2009. This project taught over 800
students skills for servicing vehicles, and thegraduates are working as engineers, supporting the country's car industry. Saudi
Arabia is strongly interested in a continuation of this project by Japan, so as a way offurther strengthening relations between thetwo countries, the Japanese side has decided to provide the project with continued
support as an element in the “Subsidy for
Projects to Promote Oil Refining Technology
and Other Measures in Oil-producing
Countries (Industrial Cooperation Programfor Oil-producing Countries)” by the Agency
for Natural Resources and Energy underJapan's Ministry of Economy, Trade andIndustry.

• Procurement of practice vehicles
Responding to the public notice of this project, JICS submitted a work proposal and,after the decision was taken to provide thesubsidy on February 19th, 2009, procured
the necessary equipment and materials. In
this project, JICS procured 95 practice vehicles for learning how to disassemble andassemble vehicles. The cars were of 22 models, which are widely distributed in Saudi
Arabia, from seven Japanese manufacturers.
A handover ceremony for the vehicles andother necessary equipment and materials
was held on March 16th, attended by thevice-governor of the Technical andVocational Training Corporation (TVTC) andthe director and instructors from SJAHI on
the Saudi side, and by representatives of the
Ministry of Economy, Trade and Industry, theconsul from Jeddah and others on theJapanese side. The event was favorablyreported by local media.
The vehicles procured for this project are
all the latest models that are on sale in Saudi
Arabia, and the students are expected tolearn more beneficial technical skills byusing them to practice on.

The handover ceremony at the Saudi Japanese Automobile
High InstituteThe Role of JICS in ODA
Japan provides Official Development
Assistance (ODA) as an important national
policy in response to the expectations of theinternational 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, asa fair and impartial procurement agency, hasbuilt on its experience in equipment procurement to provide services appropriate forconditions in developing countries and that
truly meet their needs. JICS will continue tocontribute to promoting a high standard ofinternational cooperation by providing timely support for appropriate and effective
implementation of assistance. The information below describes the main projects inwhich 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 thetypes of grant aid described below.

Grant Aid for Infectious Diseases
Prevention and Treatment
Grant aid for infectious diseases prevention
and treatment provides aid for vaccinationand procurement of therapeutic drugs tocontrol various infectious diseases such aspolio, tuberculosis, malaria and AIDS andothers that threaten lives in developing
countries.
JICS was commissioned by JICA from 1997
to 2007 to carry out studies in Japan and onsite concerning equipment needed in thefield of infectious diseases control. Since
1997, JICS has been carrying out procurement management based on contracts withthe 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 as machineryand fertilizer to help increase production offood crops (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 for increase of food production(2KR) has been changed since FY2005 togrant assistance for underprivileged farmers(2KR) in order to show that Japan will provide more effective support to developing
countries in their self-help efforts for achieving food self-sufficiency. By clarifying thataid recipients are poor, small-scale farmers,
Japan will strengthen its efforts to support
increase of food production in those countries.
Since its founding in 1989, JICS has beencommissioned by JICA to carry out studies
concerning this grant aid in Japan and on site.
Since FY1997, JICS, in accordance with
contracts with developing countries' governments, has been serving as a procurement management agent contributing tofair and rapid procurement of agriculturalequipment. It also acts as the secretariat forintergovernmental committees following up
on how the equipment procured was distributed and monitoring accumulation ofcounterpart funds (Note). Additionally, since
FY2004, JICS has been carrying out management of funds.
Note: Developing countries’ governments set aside local
currency funds equivalent to a certain amount of thevalue of equipment procured by grant aid. These funds
are then used for local economic and social development
projects after consultation with the Japanese government.

Food Aid (KR)This grant aid is provided to developing
countries with food shortages for the purpose of buying rice, wheat, maize or othergrains. Based on the food aid rules of theInternational Grain Agreement, which cameinto effect as part of the Kennedy Round (KR)at GATT in 1967, food aid began in 1968 andis referred to as “KR” because it came out of
the Kennedy Round.
Since FY2001, JICS, in accordance with
contracts with developing countries' governments, has been serving as a procurement management agent helping ensure
the fair and rapid procurement of food. It
has also been acting as the secretariat forintergovernmental committees following up
on how the food procured was distributedand monitoring accumulation of counterpart funds. Additionally, since FY2007, JICS
has been providing procurement agent
service including management of funds.

Cultural Grant Aid
Cultural grant aid provides funds for purchasing, transporting and installing various
types of equipment used for cultural andeducational activities, with the aim of promoting mutual understanding and friendship between Japan and developing countries through support for the developmentof culture and education.
Commissioned by the Ministry of Foreign
Affairs of Japan, in FY1993 JICS began carrying out preliminary studies both in Japanand on site concerning equipment requested for this grant aid. Since FY1995, in accordance with contracts with developing countries’ governments, JICS has assisted withtendering (public notice, implementationand evaluation of the tendering process) for
equipment procurement. Additionally, since
FY2000, JICS has been carrying out followup activities by procuring repair parts anddispatching technical experts to ensure thatthe equipment procured is used continuously and effectively.
Since FY2004, JICS has been analyzing
project applications for general cultural
grant aid and grassroots cultural grant aid.
The main types of equipment procured bythis grant aid include sound and lighting
equipment for theaters, sports equipment,
equipment for excavating and preserving
archaeological sites, musical instruments,
equipment for producing cultural and eduAreas handled by JICS

Japan’s ODA and the Role of JICS

Study of projects, etc.
Grant Aid

Procurement agent service*

Bilateral Grants
Bilateral Aid
Official Development
Assistance (ODA)

Bilateral Loans
Multilateral Aid

Procurement management agent service*

Technical Cooperation

Compilation of equipment technical specifications,procurement and transportation of equipment, etc.

Loan Aid (Yen Loans)

Examination of documents, etc.

Subscriptions and Contributions toInternational Organizations

Study, project implementation management, etc.
* Please refer to page 30 for details of the service.

11

Part

I

Main Activities in FY2008

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

Instruction to
implement service

Preliminary screening

Decision to implement study

Decision to
implement study

Project formation

Support for study onsmall-scale equipment

Preparatory study

Study

Preliminary study

Basic design study

Project final
evaluation andapproval

Final screening by Ministry of Foreign Affairs
Cabinet decision

Agreement between governments
Grant agreement

Project
implementation

Expediting project
implementation

Procurement management
agent service

Procurement agent service

Procurement agent service

Completion

Completion

Operation

Start ofprovision

Evaluation,
follow-up

PostFollow-up
project
study support
evaluation

Post-projectmonitoring study

Confirmation study ofconditions forequipment provided

Temporary measuresfor equipment andfacilities provided

cational programs, materials related toJapanese language education, and others.

Grant Aid for ResearchThis grant aid supports activities for researchand development of new technologies tosolve various problems affecting developing
countries.
Since FY2001, in accordance with con-12

Tendering assistance service

Dispatch ofrevitalization experts

Equipment usage begins

Advisory services inconnection with the Committee

Advisory services inconnection with the Committee

Completion

Completion

tracts with the governments of developing
countries, JICS has been managing grant aid
provided for research and development
activities, and offering coordination and support to ensure that activities among
researchers and manufacturers in Japan anddeveloping countries are carried out
smoothly.

Follow-up

Non-Project Grant Aid
Non-project grant aid supports developing
countries implementing economic andsocial reforms such as poverty reduction by
providing funds to purchase equipment andmaterials from abroad. Since this aid is not
earmarked for specific projects when a decision is made to provide it, it is called nonproject grant aid.

Handled by JICS

Grant aid for research

Non-project grant aid

Emergency grant aid

Grant aid for conflict
prevention andpeacebuilding

Screening by Ministryof Foreign Affairs

Grant aid for disasterprevention andreconstruction(program-type assistance)

Preliminary screening

Grant aid for community
empowerment(program-type assistance)

Preliminary screening

Preparatory study

Preparatory study
Outline design study

Outline design study

Screening by Ministry of Foreign Affairs
Cabinet decision

Decision by Ministry ofForeign Affairs

Agreement between governments

Exchange of a noteverbaleGrant agreement

Procurement agent service
Procurement
management agent service
Completion

Monitoring ofcounterpart funds
Completion

Since FY1993, JICS, in accordance with
contracts with developing countries' governments, has been helping them to procure thenecessary equipment, such as raw materials(petroleum products, steel products, paper
products, etc.), machinery (vehicles, construction machinery) required for public
works projects and others, as well as managing the funds provided for this purpose.

Procurement agent service

Procurement agent service

Procurement agent service

Procurement agent service

Completion

Completion

Completion

Completion

Emergency Grant Aid
Emergency grant aid is provided for emergency assistance in the following threeareas:(1) Emergency disaster assistance
Support for rehabilitation after natural disasters or man-made disasters such as civil war.
(2) Support for democratization
Support for establishing democracy after thecollapse of undemocratic regimes or in theaftermath of long-running civil conflict.
(3) Assistance for reconstruction and development
Support is provided for emergent projects inthe transition period from humanitarian support immediately after a conflict or disasterto full-scale development assistance, so thatthe rehabilitation and reconstruction

13

Part

I

Main Activities in FY2008

process can be implemented smoothly.
Since FY1997, in accordance with contracts with the governments of developing
countries, JICS manages procurement offood, medical equipment, drugs, vehicles(water tank trucks, ambulances, etc.), construction equipment and so on, and also
manages the funds provided. Depending on
circumstances, JICS also carries out its own
monitoring of how the equipment is being
used after procurement.

equipment and materials adopting local
specifications and design, allowing flexible
response to various situations according tolocal conditions. On the other hand, a highlevel of procurement management capabilities is necessary since close attention isrequired to ensure quality. Since FY2006,
JICS, in accordance with contracts with
developing countries' governments, hasbeen providing procurement agent service
including fund management.

Grant Aid for Conflict Prevention andPeacebuilding

Environment Program Grant Aid

Grant aid for conflict prevention and peacebuilding is intended for assisting social reintegration of former soldiers, helping recoversmall arms, and promoting ethnic reconciliation in developing countries. It provides
funds for procuring the necessary equipment
and services for conflict prevention andpeacebuilding programs in developing
countries. This grant aid has been provided
since FY2002 as part of non-project grant aid.
Since FY2002, in accordance with contracts with developing countries’ governments, JICS has been serving as an implementation management agent, managing
funds as well as conducting project progress
management and supporting implementation appropriate to various program formats.

Grant Aid for Disaster Prevention andReconstruction
Grant aid for disaster prevention and reconstruction is intended to provide seamlessassistance, from emergency relief for natural
disasters, etc. to full-scale rehabilitation andreconstruction aid. It began in FY2006, aiming
at providing multi-component assistance suchas restoration and reconstruction of schools,
medical institutions and roads, according to
the changing needs of the affected areas.
Since disaster response requires speed andmulti-faceted support simultaneously, a higher level of procurement management capabilities and knowledge of diverse fields are needed. JICS supports the smooth and effective
implementation of grant aid for disaster prevention and reconstruction as a procurement
agent, and has been managing the funds, inaccordance with contracts with the governments of developing countries, since FY2006.

Grant Aid for Community
Empowerment
Grant aid for community empowerment
began in FY2006, aiming at supporting comprehensive capacity development of communities facing threats such as poverty,
hunger and disease. This grant aid is expected to reduce costs and make communities
more competitive by using local businesses,

14This grant aid scheme was established in
FY2008 to support climate change measuresin developing countries as part of the Cool
Earth Partnership announced by the Japanese
Government in January 2008. It provides thefunds needed to develop, formulate andimplement policies and plans to reduce greenhouse gases (mitigation measures) and toaddress climate change issues (adaptation
measures).
JICS has been managing these funds since
FY2008, procuring equipment and services
and managing the entire project as a procurement agent, in accordance with contracts with
developing countries' governments.
Note: This grant aid is not included in the chart on pp.1213 because the flow of operations is diverse.

Technical Cooperation
The aim of technical cooperation is to pass on
Japan's skills and knowledge to create humanresources that can be productive for the
future, in order to promote nation-building indeveloping countries. JICA plays a central rolein carrying out technical training of participants from developing countries, dispatchingexperts and volunteers to developing countries, and implementing technical cooperation projects, development studies and others. Provision of equipment needed for theseprojects also constitutes an indispensable
component of technical cooperation.
Since its establishment in 1989, JICS has
been commissioned by JICA to handle
equipment provision. At the request of JICA
headquarters, overseas offices, dispatchedexperts, volunteers, and staff working intechnical cooperation projects, JICS provides
various services including direct assistancefor procurement-related duties, such as writing out technical specifications necessary forequipment procurement, selecting suppliers
through tendering, etc. and handling transportation procedures, providing information
about equipment, and carrying out various
studies in Japan and abroad.

Yen Loans
Yen loans, also referred to as loan aid, arelong-term, low-interest loans of development funds to developing countries through
JICA (until September 2008, through the former Japan Bank for International
Cooperation (JBIC)).
Since FY2004, JICS has been carrying out
the primary check to examine whether procurement documents prepared by borrowing countries concerning projects they
implement are in conformity with guidelines. JICS also conducts studies to facilitate
the smooth implementation of yen loan programs.

Follow-up Activities
JICS undertakes the follow-up activities
described below, to ensure that equipment
procured with ODA funds is being usedeffectively.

Support for Database Creation
Commissioned by JICA, JICS provides support for building a database related to pastrecords of grant aid and equipment provision through technical cooperation.

Operation of the Technical Information
CenterTo remedy the shortage of technical information required for 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.

Support for NGOs
JICS, as part of its social contribution activities, 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 to approximately ten NGOs per year. JICS has implemented Support for NGOs totaling 80 million
yen to 99 organizations using its own funds
since FY1999, the tenth anniversary of JICS.

Various Projects

Iraq

IRAQ
For Fuller Aid
Emergency Grant Aid,
Grant Aid for Conflict Prevention andPeacebuilding
In October 2003, the Japanese Government
announced grant aid totaling USD1.5 billion
to assist Iraqi reconstruction. These grantaids were focused on reconstruction andimprovement of the basic infrastructure of
Iraqi people's lives, such as electrical power,
medical care, sanitation, and public order,
across the whole country. JICS, acting as the
procurement agent for the Iraqi
Government, is responsible for fund management and project management (total
management) of the bilateral direct aid portion (equivalent to USD800 million).
Since FY2003, JICS has handled nine
equipment procurement projects, 11 build-

Handover ceremony for Samawah Diesel Power Station

Police motorcycle handover ceremonying rehabilitation projects and one peacebuilding grant aid project, and continued
the implementation of these projects in
FY2008.
The projects involving the procurement ofvehicles and equipment were the “Project
for the Provision of Fire Trucks”, “Project for
the Provision of Equipment for Solid Wasteand Sewage Management (Baghdad
Mayoralty)”, “Project for the Provision of
Equipment for Solid Waste and Sewage
Management (Ministry of Municipality andPublic Works)”, “Project for the Provision of
Police Buses and Motorcycles” and “Project
for the Provision of Equipment for Solid
Waste Management in Samawah”. In theseprojects, the balance of the budget wasused for additional procurement, and the
projects were completed without problems.
For the “Project for the Provision of
Ambulances”, JICS has initiated proceduresfor the procurement of additional ambulances, using the balance of the budget.
Among our facility rehabilitation projects,
we have completed the procurement ofadditional spare parts of the “Project for
Installation of Mobile Substations in Iraq”,
using the balance of the budget, and completed all executive work, according to theinitial plans and without problems, for the“Project for Rehabilitation of Mosul Gas
Turbine Power Station”, ”Project for
Rehabilitation of Mosul Hydroelectric Power
Station No.1”, “Project for Construction of

Samawah Diesel Power Station

Tank for Samawah Diesel Power Station

Diesel Power Station in Samawah” and“Project for Improvement of Transit
Switches”.
In particular, construction of the facilities
for the “Project for Construction of Diesel
Power Station in Samawah”, which is intended to improve electrical power supply in
Samawah, where Japanese Ground SelfDefense Force troops were stationed, andthe surrounding region, was completed in
December 2008, and a ceremony was heldto celebrate completion of the power station. The ceremony was attended by State
Secretary for Foreign Affairs Seiko
Hashimoto, as the representative of theJapanese Government, together with the
Iraqi Minister of Electricity, the governor of
the Al-Muthanna governorate and local residents, in a splendid event.
We are also using the balance of thebudget for additional procurement in the“Project for Rehabilitation of 4 General
Hospitals in the Southern Region of Iraq”,“Project for Rehabilitation of 4 General
Hospitals in the Northern Region of Iraq”,
and “Project for Rehabilitation of 3 General
Hospitals in the Central Region of Iraq”. In
the “Project for Improvement of Water
Supply in Baghdad”, we are working
towards completion of the initial plan withongoing equipment delivery and on-site
installation work.
JICS will continue working for the smoothcompletion of the remaining Iraq restoration
aid projects.

15

Part

I

Main Activities in FY2008

Afghanistan

AFGHANISTAN
Supporting transportation
through improvement of theroad network
Road Sector Program Grant Aid
Afghanistan was devastated by civil war andconflict, and Japan has been vigorously
engaged in assisting the reconstruction of
the country, including hosting theInternational Conference on Reconstruction
Assistance to Afghanistan (Tokyo
Conference) in January 2002. Our efforts
have been particularly focused on reconstruction and improvement of infrastructure,through grant aid and other aid activities,
such as restoration of intercity trunk roads.
On February 13, 2007, as one element in its
aid for the road sector, Japanese
Government decided, in response to arequest from the Afghan Government, toimplement “The Programme for

Improvement of Kabul Road Engineering
Centre”. Acting on the project, Agent agreement was signed between the Ministry of
Public Works of Afghanistan and JICS on
February 22, under which we have been providing selection of a consultant, a construction company, and trading companies forequipment supply, and procurement management and funding management for the
project as a whole.
In the course of many years of conflict, theKabul Road Engineering Centre has beendamaged and essential equipment looted.
This project is refurbishing and rebuilding
the facilities of the centre, procuring maintenance equipment, and providing initial
instruction in the operation of the equipment. Refurbishment and reconstruction
works on the facilities were completed on
December 3, 2008 with a handing-over ceremony on January 6, 2009, to mark the completion. The project is currently also the target of technical cooperation from the Japan

International Cooperation Agency (JICA).
The Kabul Road Engineering Centre,
restored from its bullet-pocked state withJapanese aid, will realize smoother transportand logistics within the country by managing and maintaining its road network, thereby aiding economic progress. In addition, it
will contribute to the training of road maintenance engineers for the whole country.

Staff enthusiastically checking the delivered equipment

Indonesia, Sri Lanka, the Maldives

INDONESIA, SRI LANKA, MALDIVES
Gratitude expressed at a commemorative ceremony
Reconstruction efforts to cope withthe damage caused by large-scale
earthquake off the coast of Sumatra
and by Indian Ocean Tsunami Disaster
On December 26, 2004, a large scale earthquake off the coast of Sumatra, Indonesia,
and the accompanying Tsunami, caused
enormous damage along the coastlines ofcountries facing the Indian Ocean. Japanese
Government provided a total of JPY24.6 billion in Non-Project Grant Aid to Indonesia,
Sri Lanka and the Maldives, which were particularly damaged in the region. As the procurement agent for three affected countries,
JICS has been engaged since 2005 in reconstruction aid activities, such as procurementof goods and the reconstruction of damaged facilities.
In Indonesia, the last reconstruction

16

participated in a large-scale multiple sector
works, on facilities such as marketplaces and(field) project. After JICS faced with new andhospitals, ended in FY2008, and all procuredifficult challenges, all procurement ofment of goods and construction works
goods and reconstruction works inunder 177 contracts were completed byIndonesia and Sri Lanka were successfully
June 2008. The Banda Aceh City and Nias
Island, which suffered particularly severe
completed in FY2008 with various experidamage, are now returning to normal life. A
ences for JICS.
ceremony for the Banda Aceh
City's 803rd anniversary was heldin 2008 and many participants
expressed their gratitude forJapan's reconstruction aid during the ceremony.
In Sri Lanka, another six
schools were reconstructed in FY
2008, and many children arestarting to study in their new
school facilities. The President of
Sri Lanka himself participated in
an impressive opening ceremony at Sri Sumangala College, oneof the reconstructed schools.
This Tsunami Reconstruction
A market in Aceh, Indonesia
Aid was the first time JICS has

Bangladesh

BANGLADESH
Saving People with Cyclone
Shelters
Grant Aid for Disaster Prevention andReconstruction
Bangladesh is one of the most densely populated countries in the world, with approximately 140 million people living in an area of
144,000km2. Most of the national land lies in
one of the largest delta in the world, at lessthan 9 m above sea level, so 20% of thecountry is inundated in monsoon season,
causing enormous damage.
Countermeasures against disaster are one of
the most important challenges for thenation.
In November 2007, Bangladesh was hit by
the enormous cyclone Sidr, causing 3,000
people killed, over 800 people missing andgreat damage that affected 8.92 million people. Especially, in the southwest of the coun-

try heavily affected by theSidr, there are not enoughcyclone shelters.
To remedy the situation,
Japan has implemented
Grant Aid for Disaster
Prevention and Reconstruction,building 36 cyclone sheltersin the four southwestern divisions.
As procurement agent for
the Bangladeshi Government, JICS used a tender
process to select and contract local construction companies from within
Bangladesh, including theChildren in a district where a shelter is being constructedfour southwestern divisions,and has been working on themately 61,000 people in the event of a disasconstruction management with a consultant
ter. These shelters will be also used as elefirm since October 2008 for the project.
mentary schools for the communities in
After the completion of the project, the 36
ordinary circumstances.
cyclone shelters will accommodate approxi-

Palestine

PALESTINE
Road Improvement in Jericho
Grant Aid for Conflict Prevention andPeacebuilding
Jericho, a center of transport linking theWest Bank territory of the Palestinian
Authority with neighboring Jordan, has a climate that is warm even in winter, and has
relatively plentiful water resources. It is
expected to develop industrially as a logistics hub. Remains of dwellings and the oldest city, from around 10,000 years ago, canbe found around Jericho, and there aremany Christian holy sites bearing traces ofJesus. So Jericho, with its population of
approximately 25,000 people, is visited by
630,000 tourists a year.
However, roads within the city are poorly
maintained, and approximately 60% areunpaved, an impediment to safe andsmooth road transport. The extreme
increase in traffic flow continues to worsen

damage to the roads. Of the city's roads,
Government) to act as the procurement
only around 19% have street lighting andagent. Based in a project office in Ramallaharound 11% have sidewalks, a state not conin the West Bank, JICS is engaged in on-site
ducive to safety in residents' lives, commerwork including selection of consultants,
detailed designs, and tendering preparacial activities and tourism.
tions for the selection of construction conThe situation prompted the Palestinian
tractors.
Authority to request grant aid from Japan to
improve Jericho's residential
roads, develop its sidewalks
and street lighting, and procure the equipment andmaterials necessary for roadmaintenance management. In
December 2008, Japan decided to implement aid throughGrant Aid for Conflict
Prevention and Peacebuilding,as an element in its efforts torealize the “Corridor for Peaceand Prosperity” concept.
On February 5, 2009, JICS
concluded an agent agreement with the PalestinianThe signing of the agent contract between JICS and the Palestinian Authority
Authority (Ministry of Local

17

Part

I

Main Activities in FY2008

Cambodia

CAMBODIA
Clearing Landmines to Provide
FarmlandGrant Aid for Research
Countless landmines that were buried in
Cambodia during its 20 years of civil war are
still in place. The Cambodian Mine Action
Centre (CMAC) was founded in 1992 toremove those mines, and it is working hardto that end.
Until now, mine clearance has been amanual operation, requiring large amountsof time and labor, in which the operators
were often exposed to danger. In 2006,
Japan conducted field tests of the basic performance of demining machines and mine
detectors, as the first Grant Aid for Research,
as a step towards the mechanization of mineclearance. The second phase, beginning in
2008, put three mine removal machines into
operation tests in real minefields. JICS served
as the project manager for these projects.

are grateful that areas we could not enter
The current Project for Research andbefore are now usable farm land” and “atDevelopment of Mine Clearance Related
last I could get my own farm land.”Equipment, Phase II has developed morepractical clearance activities, combining eleMinefields which had become desolate arements such as clearance by the operation of
being reborn as farm land, enriching people's lives.
demining machines, manual clearance bydemining operators, andchecking by mine detection
dogs. As a result, clearance
activity was progressing more
efficiently than anticipated, andall models of machinery werecertified by the Cambodian
Government in December
2008. The equipment used in
the tests was procured using
project funds and transferred
to CMAC.
Cultivation, mainly of riceand maize, has begun on land
which has been fully cleared ofmines and transferred to residents. Messages received fromJapanese-made demining machines on display at the handing-over cerelocal people say things like “wemony in January 2009

GuatemalaGUATEMALA
Identifying Local Needs
Cultural Grant Aid
Guatemala has been rebuilding and progressing since the end of its civil war in 1996,
but many weapons still remain as a harmful
legacy of the war. These weapons are often
used in crime and threaten the people's
lives. The Government of Guatemala has
responded by making one of its key policies“the promotion and diffusion of sports tobuild the mental and physical health of the
public”, and it provides venues free ofcharge in which the public can get involvedin sports with peace of mind.
In FY2008, JICS conducted a cultural grant
aid survey into the diffusion and promotionof sports in Guatemala. La Democracia
National Park, which was the subject of thesurvey, has one million users a year, andmany people go there to enjoy baseball,soccer, judo and other sports.
The survey was conducted in accordance18

with the policy of the national park toture,” which is a focus of Cultural Grant Aid.
expand martial arts and combat sports,
The dispatch of JOCV judo team members inwhich can be enjoyed from a young age andliaison with JICA's Japan Overseas
build character through discipline. The findCooperation Volunteers (JOCV) is under consideration, to follow the implementation ofings of the survey confirmed the plan toinstall judo mats and two boxing rings, built
this cooperation (installation of sports
indoors to international standards, and use
equipment).
related activities as
attractions to encourageuse of the park.
Acting on the survey,
the “Project for the
Improvement of Sports
Equipment of “La
Democracia National
Park”” was debated incabinet in May 2009,and procedures for its
implementation are
under way. This projectcorresponds to “cooperation related to martial
arts and other aspects ofIndoor facilities where judo mats and boxing rings are to be installed
traditional Japanese cul-

NigerNIGER
Improving the Basic Food
Situation
Food Aid (KR)
Niger, in West Africa, has a land area of
1,267,000km2 and a population of around13.7 million. A large desert occupies two
thirds of the land area, and agriculture, centered on self sufficiency, is limited to thesouth, where the Niger River flows. There islittle rainfall, irrigation equipment is undeveloped, and water resources are lacking, so
almost all agriculture is rain fed. As a result,crop yields are strongly controlled by rainfall, and droughts are frequent.
Desertification is advancing, promoted by
the impact of recent climate change, andthere was a severe food shortage in 2005,
due to drought and locusts.
Japan has been providing Food Aid toNiger since FY2002, and it provided rice
under the Food Aid again in FY2008 to

improve the desperate
food situation. As procurement agent for theGovernment of Niger, JICS
selected carriers to transport aid rice, and implemented services such asdelivery management. The
procured rice is sold to the
public through the foodcorporation at below themarket price, and the revenue is accumulated as a“counterpart fund.” Thefund is used for purchasing
grain and rice grown inNiger for distribution inThreshing by traditional farming methods
areas suffering food shortages, to assist in stable supdistribution, the level of the counterpart
plies of food throughout the country.
fund, and other matters, discuss points for
An inter-governmental meeting (commitimprovement, and allow dialog betweentee) is held after the arrival of the rice. JICS
Japan and Niger to facilitate more effective
serves as the secretariat for the meeting,aid.
which hears reports of the state of aid rice

Nicaragua

NICARAGUA
Effective use of a counterpart
fund
Grant Assistance for Underprivileged
Farmers (2KR)
Nicaragua has a land area of approximately
130,000km2. It is a low-to-middle income
country in Central America, with a population of around 5.1 million. A large majority ofthe poor are employed in agriculture, whichis the major industry in the country. In thelast few years, El Nino and other abnormal
climatic effects have reduced production of
the main crops, and there is concern overworsening poverty.
Japan has been implementing Grant
Assistance for Underprivileged Farmers(2KR) since 1989, for the purpose of fertilizer
procurement to increase food production.
This aid is intended as measures against
poverty and to ensure food security, andJICS has been performing procurement

agent services.
Assistance for Underprivileged Farmers goes
The procured fertilizer is distributed mainbeyond supply of fertilizer, as it significantly
ly to small farmers. It makes a great contribucontributes to improving living standards
tion to improving the living standards ofthrough effective use of the counterpartsuch farmers, by increasing their production
fund.
of maize, rice, frijol and othermain crops.
Payments for fertilizer that issold are collected as a counterpart fund by the Nicaraguan
Government and used to further economic and social development. For Nicaragua, whichconstantly lacks funding for its
national budget, this counterpart fund is a precious funding
source, and the government isdiligent in building up the fund.
The accumulated counterpart fund is used on projects forpurposes such as raising agricultural productivity and developing roads linking farm vilPeople delighted by the completion of a road built using the counterpart
lages to markets. Grant
fund. The completion of this road enables them to carry produce to market.

19

Part

I

Main Activities in FY2008

TuvaluTUVALU
Contributing to the
Stabilization of Electrical
SupplyNon-Project Grant Aid

Tuvalu is a small island nation situated in
Oceania, in the South Pacific, comprisingnine beautiful atolls. It has a population of
10,000 people. The main industries are agriculture and fishing, and the people live selfsufficient lives. Land elevation is low, so
Tuvalu has drawn worldwide attention inrecent years as a country at risk of inundation due to the impact of climate change.
Japan has provided Tuvalu with four consecutive rounds of Non-Project Grant Aid,between FY2005 and FY2008. JICS has
served as the procurement agent for thisgrant aid, providing the Government of
Tuvalu with procurement-related services
since FY2005.

One characteristicof the aid delivered
to Tuvalu under thisNon-Project Grant
Aid is that the only
item provided isdiesel fuel, but thisdiesel fuel is used ina power station builtwith the assistanceof the Japanese
Government. Tuvalu
has few resources
and a small national
budget, making it
difficult to obtaindiesel fuel, soJapan's aid, contributing to the staThe power station in Tuvalu that uses the diesel fuel provided
bilization of domestic power supply, isdeveloping countries through its procureenormously important for the country.
ment work.
Non-Project Grant Aid is Japan's financial
aid that began in FY1987. JICS assists many

Kenya

KENYA
Procurement of HIV Test Kits
Grant Aid for Infectious Diseases
Prevention and Treatment
HIV prevalence rate among adults (aged 15 49) was 7.1 - 8.5% in Kenya in 2007 with anestimated 1.5 - 2.0 million of people infectedwith HIV against approximately 37.5 million
population. (UNAIDS). Kenya has set
HIV/AIDS control as one of its most important challenges since 1999, and it has
employed comprehensive HIV/AIDS control
activity, including preventive education,
testing, medical treatment and other elements. VCT service is the center of HIV prevention measures, and the Ministry of Healthis supposed to provide the HIV test kits usedby the service free of charge. However, as
there were not enough kits, the governmentof Kenya requested the government ofJapan for aid. JICS conducted a survey in
FY2007, followed by procurement manage-

20

ment in FY2008.
concern over a shortage of Determine that
Testing HIV status in Kenya are performed
was used in the first test, JICS discussed thisin three stages, and three types of kits arematter with the Ministry of Health. As aused, one for each stage. Since the the kits
result, the second delivery was adjusted toarrive around one month earlier. This kind of
have a short expiration period of around one
flexible adjustment of the procurement
and a half years, if a large volume of kits areschedule enables aid to match local needs.
procured at once, there is a risk that their
shelflives could be short by
the time they reach the
VCT centers where kits areused by end users.
Therefore, delivery was
divided into three times;
between August 2008,
October/November 2008,
and January 2009.
JICS performed acceptance inspections of the
procured goods in Kenyain August 2008 andJanuary 2009, and confirmed the state of distribution. As at the first acceptProcured Determine HIV test kit
ance inspection, there wasSri Lanka

SRI LANKA
Procurement Support to the
JICA Office
Technical Cooperation
A shift to local procurement is being promoted in the equipment and materials
needed for technical cooperation implemented by the Japan International
Cooperation Agency (JICA), and in FY2007,
approximately 90% of procurement, on a
procurement value basis, was local. It is now
increasingly common for JICS to dispatch
procurement support staff to JICA overseas
offices to support fast and efficient procurement.
Procurement assistance at the JICA Sri
Lanka office in FY2008 covered procurement
procedures (implementation of competitive
shopping, evaluation, contract agreement,etc.) for five projects in one month. In somecases, the tendered specifications do notsatisfy the specifications required for the

project, so the evaluation work involved
services for JICA, so the setting of qualificadetailed comparison of specifications.
tion scrutiny criteria is a challenge.
Other than projects within Sri Lanka, JICS
JICS will continue to provide support inalso assisted procurement procedures forline with the needs of JICA overseas offices.
medical supplies toPapua New Guinea andFiji as third-country procurement projects
ordered from JICA head
office.
JICS also studied qualification scrutiny criteria
for companies participating in competitive tenders, as a step towards
introducing a company
registration system thatwould strengthen thebase for procurement atthat office. Many companies in Sri Lanka, particularly small and medium
ones, express an interest
JICS staff (right) in contract negotiations with the prioritized tendererin providing goods and

YEN LOANS
Primary Check Services forJapanese ODA Loans
Japanese ODA Loans (Yen Loans)
Japanese ODA Loans, known as “Yen Loans,”consist of development fund loans to developing countries under lax terms of low-interest rates and long repayment periods. Theseloans were previously implemented by
Japan Bank for International Cooperation(JBIC), but as the Overseas Economic
Cooperation Operations Division of JBIC was
integrated into Japan International
Cooperation Agency (JICA) in October 2008,
they are now implemented by JICA.
When the borrowing countries use thefunds to develop economic and social infrastructure such as electric power, gas, transportation and communication systems , thenecessary goods and services must be procured in line with procurement procedures
based on the Japanese ODA Loan

Guidelines.
Since FY2004, JICS has beencommissioned by JBIC to carryout the primary check of procurement-related documents prepared by the borrowing countries
to confirm that they are in accordance with the procedures stipulated in the guidelines.
In June 2008, a Japanese ODA
loan project management training session was conducted for
office staff members in JICA
Yen loan project management training at the JICA Paraguay
Paraguay office. After the integraofficetion of the OECO division of JBIC
into JICA, yen loan procurement
curement seminars are provided to assist
management operations in Paraguay were
the project executing organizations or thetransferred to the JICA Paraguay office and aborrowing countries in understanding the
JICS staff member was dispatched to the
management of yen loan operations, and aoffice as a lecturer to provide training oppormember of JICS participated as a lecturer intunities aimed at supporting system develprocurement seminars held in Kenya andopment of yen loan operations under new
Paraguay in FY2008.
JICA.
JICS will continue to work in support ofIn addition, Yen Loans seminars and proJICA, which has taken on Yen Loans.

21

JICS Recent Events
A Meeting of Experts on
the NGO Support
Activities of JICSOn April 24, 2008, a meeting was held forexperts to discuss the policies regarding the
NGO support activities of JICS for the next
three years. JICS launched NGO support
activities in FY1999 as part of its social action
projects and has since supported 63 organizations for 88 projects in total.
The implementation policies of these support activities have been revised every three
years, and in this meeting there was a discussion on the project policies for the 4th period(FY2008 ~ FY2010), based on the questionnaire results collected from the organizations
which JICS supported over time. They discussed the necessity of strengthening theorganizational capacities of NGOs andincreasing the amount of training opportunities for local NGOs. It was confirmed thatpolicies concerning scale, targets and components of their support should be maintained while making utmost efforts to makethis support more effective.

Participation in the TICAD
IV with an Information
Booth
JICS participated in the Fourth Tokyo
International Conference on African
Development (TICAD IV) held at Pacifico
Yokohama from May 28 to 30, 2008. Since
the exhibition was not open to the public, it
took place in a restricted area; nevertheless,about 120 people, including African government officials, U.N. staff and media representatives came to visit the booth. The JICS
booth mainly introduced recent projects in
Africa, as well as JICS' role and position as aprocurement agent. In the JICS booth, panels displayed program activities on Food Aid,
Grant Assistance for Underprivileged
Farmers, Non-project Grant Aid, and Grant
Aid for Community Empowerment, which
are mainly implemented in Africa.

Project plans being introduced to the Directors andTrusteespoints (1) and (2). Using the time between
the two meetings, two projects were introduced, namely, the Emergency Grant Aid for
the Reconstruction of Iraq and Support forAreas affected by the Sumatra Earthquake
and Indian Ocean Tsunami Disaster.
New Member of the Board of Directors:
Mr. Kunihiko Fukao
Senior Managing Director, Tokio Marine & Nichido Life
Insurance Co., Ltd.

Meeting participants:
Mr. Yukihisa Sakurada

Participation in the Global
Festa JAPAN 2008

Vice President, JICS

Ms. Michiyo Arita
Secretary General, Kansai NPO Alliance

Mr. Fujio Samukawa
Director, Non-Governmental Organizations Cooperation
Division, International Cooperation Bureau, Ministry ofForeign Affairs

Ms. Michiyo Hashiguchi

Above: JICS staff explaining to a visitor
Left: A panel showing support activities in Africa

Deputy Director General, Training Affairs and Citizen
Participation Department, Japan International Cooperation
AgencyMr. Shunichi Hiraki
Affiliate Professor, LEC University Graduate School of
Accountancy

Mr. Tatsuya Watanabe
Professor, Tokyo Keizai University(Their respective titles are as of April 24, 2008.)

Meeting of the experts

22

First Regular Meetings ofthe Board of Trustees andthe Board of Directors for
FY2008The first round of regular meetings of theBoard of Trustees and the Board of Directors
for FY2008 was held on June 18, 2008 at
Arcadia Ichigaya in Tokyo. At the meeting of
the Board of Trustees which took place in themorning, the following points were discussed and approved: (1) the operations
report of FY2007; (2) closing statements andaudit report of FY2007; and (3) selection of a
new member of the Board of Directors. In
the afternoon, the Board of Directors discussed and approved the above-mentioned

JICS participated in the Global Festa JAPAN2008 held at Hibiya Park on October 4 and 5,
2008. In its booth, JICS introduced the structure of the organization and JICS' operations
related to the Grant Aid for Disaster
Prevention and Reconstruction, Food Aid,and Grant Assistance for Underprivileged
Farmers. In those two days, about 400 people visited the booth and comments such as“Now, I understand ODA better than before,”and “JICS is working hard behind the scenes,”
were received.

We displayed many photos taken at project sites.

Participation in theInternational Cooperation
Career Fair 2008
JICS participated in the “International
Cooperation Career Fair 2008” held in Tokyo
on November 8, 2008. About 1,000 visitors to
the fair were students and people interested
in studying or working in the field of international cooperation. In its booth, JICS exhibited
panels introducing the structure of the organization and its operations, while the staff
explained JICS' work that they are involved in.
By participating in the fair, the staff themselves found a renewed commitment towards
international cooperation as they were being
asked by visitors questions such as “What is
procurement?” “What kind of expertise andqualifications are needed?” and “Do you findthe job rewarding and satisfying?”

Second Regular Meetingsof the Board of Trustees
and the Board of Directors
for FY2008
The second round of regular meetings of theBoard of Trustees and the Board of Directors
for FY2008 was held at the conference roomon the 6th floor of JICS Headquarters on
March 18, 2009. At the meeting of the Boardof Trustees which took place in the morning,
the following points were discussed andapproved: (1) operation planning and revised
budget; (2) project policy and planning; (3)budget; (4) selection of new members of theBoard of Directors; and (5) transition into apublic-service corporation and the selectionof the first members of the Board of Trustees

JICS staff answering the questions of visitors at the International Cooperation Career Fair 2008

after the transition. In the afternoon the
Board of Directors approved the above-mentioned (1) to (3) and (5), and elected a
President and a Vice President, and selected
a new member of the Board of Trustees.
In each meeting of the Board of Trustees
and the Board of Directors, explanations
were made concerning new endeavors, suchas the “Project for the Stockpile of Tamiflu
and PPE against Potential Pandemic
Influenza” commissioned by the ASEAN
Secretariat and the World Organization for
Animal Health, and the study of the development of the trunk road network running
through Cambodia, Laos, and Vietnam.
New Members of the Board of Directors:
Mr. Masaoki Takeuchi
President, International Development Center of Japan

Mr. Tsuyoshi Hinokuchi
Director, Tsuyoshi Hinokuchi Tax Accountant Office

New Member of the Board of Trustees:
Mr. Masahiro Murakami
Vice President, Japan International Cooperation Center

Participation in the One
World Festival
The One World Festival was held at the Osaka
International House Foundation on December
20 and 21, 2008, where JICS participated by
exhibiting in a joint booth together with otherorganizations delivering ODA. In the booth,
added to the explanation of the ODA system,
guided mini-tours showing panel boards wereconducted to introduce specific support activities in relation to the Support for
Reconstruction in the Aftermath of the Major
Earthquake off the Coast of Sumatra and theTsunami in the Indian Ocean, so that visitors
would understand the role of each organization in ODA. Some comments heard fromamong the mini-tour participants were: “Ihave come to understand the significance of
ODA at the time of disasters,” and “It is interesting to know of the activities undertaken byvarious organizations.”

Policies for Project Implementation in
FY2009 (Outline)

JICS' new approach was explained to the Board ofTrustees and the Board of Directors, respectively.

1. Implement the appropriate ODA
projects that respond to needs
2. Improve capabilities towards a betterinternational procurement organization,
capable of expanding project operations
3. Improve and strengthen the functions of
information dissemination as well as social
contribution
4. Promote readiness to become a publicservice corporation

JICS staff conducting guided mini-tours using panelboards23

Social Activities of JICS
JICS Staff Give Gifts toOrphanages in Indonesia
JICS acted as a procurement agent for the
Project for the Reconstruction for the Area
Affected by the Earthquake in Yogyakarta
and Central Java in 2006. The JICS staff incharge of the project learned from the local
staff about the children at two orphanages in
Yogyakarta. They visited those places andfound there was a shortage of toys andclothes. As they appealed for support within
JICS office, more than 10 cardboard boxes
full of toys and clothes were collected in two
weeks. Little by little over time, these gifts
were brought to Indonesia by JICS staff who
went on official trips and were finally delivered to those two orphanages in November
2007 and April 2008.

field of medicine, the staff introduced two
programs called Grant Aid for Infectious
Disease Prevention and Treatment and the
Project for the Stockpile of Tamiflu and PPEagainst Potential Pandemic Influenza, byshowing the commodities that JICS had actually procured, such as mosquito nets andmedical appliances.
The staff answering questions from students of the Tokyo
Jogakkan Middle School

JICS Gets a Visit from theStudents of Tokyo
Jogakkan Middle SchoolStudents from the Tokyo Jogakkan Middle
School visited JICS on February 4, 2009 inconnection with their studies on social contribution. First, the JICS staff explained theoutline of ODA and the role of JICS, and thenanswered questions pertaining to matterssuch as the “methods of removing landmines” and the “ways to recover small arms.”
After the Q & A session, the students were
given some work exposure that included thewriting of reports and the filing of papers.

The NGO Support
Activities of JICS
Children playing with the toys given as gifts

JICS Gets a Visit from theStudents of Hekinan
Municipal Higashi JuniorHigh SchoolStudents from Hekinan Municipal Higashi
Junior High School visited JICS on June 13,
2008. As they have a great interest in the

The staff explaining how to wear protective gear
against the avian flu virus

24

On April 24, 2008, a meeting was held forexperts to decide on the policies concerning
the NGO support activities of JICS for the
next 3 years (page 22). The meeting for thereport and exchange of views on the NGO
support activities of JICS was held on
September 3. It was attended by eightorganizations that received support in
FY2005 and FY2006, examiners, experts, etc.
At the meeting, each NGO gave an accountof its activities overseas and the impact of the
support coming from JICS. A discussion took
place at the meeting on ways to promotebetter understanding of their activities andstronger cooperation with local citizens and
NGOs.
NGO Participants: Intercommunication Center for
Asia and Nippon (ICAN), Caring for Young Refugees(CYR), Association for the cooperation and Rural
Self-support in West Africa (CARA), Terra People Act
Kanagawa (TPAK), Tokushima International
Cooperation (TICO), Japanese Association for the
Promotion of Health in Myanmar, Action with LaoChildren, Atelier for Development and the Future

In FY2008, 26 organizations applied for assistance from JICS, out of which 11 organizations were selected to receive support
amounting to 9.33 million yen. For FY2008,nearly 60% of the applicants requested for“funds for strengthening the foundation ofNGOs,” which is meant to support NGOs tostrengthen their operations. The fund can beused for public relations activities, further
fund-raising, human resources development,
and the maintenance of office equipment.

NGOs Supported by JICS in FY2008 (in alphabetical order)
Name of NGO

Country

Support Description

AmountGranted (yen)603,090

Action with Lao Children

Laos•Funds for strengthening the foundation of NGOs

APCAS (Action for Peace, Capability
and Sustainability)

Sri Lanka•Project operation expenses

1,000,000

Aspiring Citizens for Community
Empowerment with sunny smile, Inc.

Philippines•Funds for strengthening the foundation of NGOs

1,000,000

NGO Fukuoka Network

Japan•Funds for strengthening the foundation of NGOs

958,355

India Welfare Village Society

India•Project operation expenses•Funds for strengthening the foundation of NGOs

781,800

Japan Campaign to Ban Landmines

Cambodia
Nepal•Funds for strengthening the foundation of NGOs

878,000

Japan International Center for the
Rights of the Child

Cambodia•Funds for strengthening the foundation of NGOs

1,000,000

Jumma Net

Bangladesh•Project operation expenses

NVDA (Network for Voluntary
Development in Asia)

28 countries•Funds for strengthening the foundation of NGOsin the Asia
Pacific region

500,000

Terra People Association

Sri Lanka•Funds for strengthening the foundation of NGOs

965,960

Terra RenaissanceCambodia•Funds for strengthening the foundation of NGOs
Uganda, etc.

800,000

840,000