Annual Report 2013

c1

Real Aid in Action
Japan International Cooperation System

Profile of JICS

Japan International Cooperation System (JICS) was the first foundation 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 the Japanese government’s Official Development
Assistance (ODA) programs and other cooperation programswith developing countries.
“Procurement” refers to the acquisition of and payment forgoods and services—such as transportation, design andconstruction—necessary to achieve a specific objective. Since

its establishment in 1989, JICS has appropriately and effectively
carried out the selection and procurement of goods and services needed in local areas where cooperation projects are being
implemented.
JICS aims to become “the world’s best service provider in theinternational cooperation field” which is described in “Mission,Vision and Value” (MVV). In pursuit of this goal, JICS is building
up its base of expertise and knowledge while focusing on thedevelopment of human resources.

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

Procurement

Materials andEquipment
Facilities

third-partyprocurement organization

Servicescompetition
efficiency

impartiality

public procurementin the international cooperationfield
economytransparency
fairness

Why is a specialist procurement
organization necessary?
1. With regard to the acquisition of necessary goods and services, it is necessary
to perform a variety of technical andspecialized operations to ensure that
quality, economic performance and appropriate timing are maintained. These
include rigorous and complex procedures, preparation of technical specifications and other procurement-related
documentation, execution of tenders
and evaluation of bids, management ofaid funds and other operations, which
it is difficult to fully handle.
2. Procurement operations for ODA programs—which are ultimately paid forby Japanese taxpayers—demand impartiality, fairness, competitiveness andtransparency. To assure the fulfillmentof these conditions, it is necessary tohave an organization that will manage aid funds on the recipient-country
government’s behalf and carry out
public procurement, including tender
procedures.

To coincide with its transition to the status of a general incorporated foundation, JICS conducted a bottom-up discussion process
encompassing its entire organization to determine MVV, which forms the fundamental starting point for all its strategies. The thorough adoption of this MVV by all employees is a key priority for JICS.

Mission, Vision and Value (MVV)

Definition of MISSIONMISSIONJICS will contribute to the peace and stability of the world
as a player in the international cooperation field.

VISIONJICS will set a goal to be the world’s best service provider
in the international cooperation field.

VALUE
Impartiality, fairness and transparency Maximizing the impact of the aid
JICS maintains an impartial stance to ensure fairness
and transparency.

JICS will make an effort to maximize the impactof the aid.

Reliability

Creation and Challenge

JICS will respect local input and build a trusting
relationship with its client.

J ICS will think outside the box and challenge
to create and provide new services.

JICS’ mission expresses the organization’s social raison d’etre and its philosophy regarding
its contribution to society. All JICS employees
undertake their day-to-day duties with a sense of
pride and responsibility for fulfilling JICS’ mission.

Definition of VISIONJICS’ vision articulates its medium-term goals forfulfilling its mission. Rather than being satisfied
with its current status, through the achievementof its vision JICS strives to become an organization that is trusted not only in Japan but worldwide.

Definition of VALUE

It is important that each employee adheres toJICS’ values as the organization strives to realize
its vision. All employees act in accordance withJICS’ four core values.

Contents
A Message from the President

02

By Taking on Strategic Challenges, We Aim to Build Competitive Advantage
FY2012–FY2014 Progress on the Medium-term Operational Action Plan:03

Main Achievements to Date and Issues to be Addressed

Special Feature

Development
DevelopingCountries

WinWinJICSJapaneseEnterprises
Advancement
Overseas

Governmentof Japan

WinAssistanceThrough Non-Project Grant Aid, Aiming to Support Growthin Emerging and Developing Countries Together with Japan

05

JICS’ Major Activities in FY2013
Non-Project Grant Aid for Provision ofJapanese Medical Equipment(Sri Lanka)

Grant Aid for Conflict Prevention and Peacebuilding:
The Project for Assistance to the Constituent Assembly Election(Nepal)Grant Aid for Community Empowerment:
The 5th Project for Construction of Primary Schools

08

Support for Project Formulation and Promotion ofDisbursement under Japanese ODA Loans in Sub-Sahara Africa(Sub-Sahara Africa)

Stakeholder Comment
JICS Recent Events
Countries Targeted for JICS’ Main Projects 
Revenue/Current Profit by Scheme and Client (FY2013)
Revenue/Current Profit by Function (FY2013)
Revenue/Current Profit by Type of ODA (FY1989–FY2013) 
Revenue/Current Profit and Expenditure by Fiscal Year Project Results by Country in FY2013 
List of Projects in FY2013 Grant Aid 
Technical Cooperation 
Loan Programs Business Contributing to the Promotion of the Appropriate and Efficient Implementation ofInternational Cooperation Programs Carried Out by International Agencies and Organizations,
Foreign Governments and Other Organizations Engaged in International Cooperation
Follow-up and After-care Activities Education and Support Promoting International Cooperation
Other Activities Necessary to Achieve the Purposes of the Foundation

Principal
14 inActivities
FY201316182022232628293031323535444401
Contents

The Environment for JICS and ODAPart 1

Annual Report 2013(Cameroon)

12

Japan International Cooperation System

The Role ofJICSin ODA

Support for the Provision of Strategic ODA:

Part 2
Description ofProjects

44454545

FY2013 Business Report47
FY2013 Balance Sheet
48
FY2013 Statement of Net Equity Increase (Decrease)
49
A Brief History of JICS
50 Reference
Board of Directors/Board of Trustees
51 Materials
Organization Chart
52
The Articles of Incorporation of Japan International Cooperation System (JICS)
53
Compliance
56

A Message from the President

By Taking on Strategic Challenges,
We Aim to Build Competitive Advantage

Japan International Cooperation System Annual Report 2013

Celebrating JICS’ 25th Anniversary

A Message from the President

02On April 12, 2014, JICS celebrated the 25th anniversary of its
founding. Simultaneously, 2014 is also a milestone year forJapan’s Official Development Assistance (ODA) program, whichreached the 60th anniversary since its commencement. Inkeeping with the changing eras and evolution of the international community, the Japanese government’s international
cooperation programs have also needed to change. For aquarter of a century since its establishment, JICS has adapted
its operations and roles to meet changing needs. In recentyears, JICS has had opportunities to participate not only in theimplementation of Japan’s ODA programs but also in programs
carried out by international institutions. On this occasion, I
would like to reiterate JICS’ sincerest gratitude to all those withwhom we have had the chance to work.

The World’s Best Service Provider

When JICS made the transition to a not-for-profit generalincorporated foundation on April 1, 2012, it articulated a vision under which it aims to become “the world’s best service
provider in the international cooperation field.” As the mosttrusted partner in the international cooperation sphere, JICS
will continue striving to surpass the quality expectations of its
clients and partners, and aims to become the choice of clients
the world over. We want all executives and employees of JICS
to approach their work with sincerity so that JICS can remain
an organization that supports the peace and stability of theinternational community.

Proposing, Winning and Expanding Projects, and Measures to Strengthen JICS’ Organization

In FY2012, to realize this vision we embarked on our three-year
Medium-term Operational Action Plan. Under the following
four themes, we are implementing measures related to winning and expanding projects as well as the strengthening ofour organization.
1. Seeking new business which utilizes JICS’ know-how
2. Developing new business
3. Recruiting and nurturing human resources
4.	Strengthening management control (strengthening revenueand expense management, project management, and riskmanagement)
Under the first theme, seeking new business which utilizes
JICS’ know-how, in addition to steadily implementing ourexisting core services, we intend to leverage our experience todate to win further business and expand operations. Throughproposal-based competitive business tenders, JICS has been selected to be nominated to act as procurement agent for many
recipient countries during the period from FY2013 to FY2015,
ending March 31, 2016. Since its establishment, JICS has built
up a large information resource covering many types of equipment and materials as well as manufacturers. JICS leverages thisintangible asset during its involvement in the implementationof various types of non-project grant aid. The project categories
corresponding to such operations include: Japan’s Grant Aidfor Provision of Industrial Products, which provides industrial
products manufactured in areas affected by the Great East

Japan Earthquake; Japan’s
Non-Project Grant Aidfor Provision of Japanese Small and Medium
sized Enterprises (SMEs)
Products, which provides
SME-produced products;
and Japan’s Non-Project
Grant Aid for Introductionof Japanese Advanced
Products and Its System, which provides medical equipment
and Japanese next-generation eco-friendly vehicles to developing countries.
With regard to the second theme, developing new business,
the New Business Development Office was established at thetime of JICS’ organizational overhaul in FY2013. This office is
examining how JICS can expand its sphere of business operations in the future based on the knowledge and experience
accumulated in its operations to date. We have also established
the Conflicts of Interest Management Committee as part of ourinternal control structure.
FY2014, ending March 31, 2015, is the final year of ourMedium-term Operational Action Plan. As well as assessing andsumming up the achievements and tasks remaining from theplan’s three years, we are conducting reviews that will contribute to the preparation of our next medium-term management
plan.

Strategic Measures

To realize its vision in the future, JICS aims to bolster its competitive advantage. Hence we want to transform JICS into anorganization that is capable of taking up strategic challenges.
Each individual staff member must maintain a keen awarenessof our core goal—realizing JICS’ vision. We must also focus on
the ideal shape that we want JICS to have in the future. As well
as reliably fulfilling JICS’ traditional role, in a development-aid
world where major changes are occurring, we are determined
to strategically utilize all of the resources at JICS’ disposal tocreate new value that can contribute to solutions to a range ofemerging issues, and expand our operations. For example, in
the area of Public–Private Partnerships (PPP), we believe that itis important for us to consider—on an ongoing basis—opportunities to enter this field.

Strengthening Compliance Systems

To carry out our operations while maintaining the trust of adiverse array of stakeholders, it is vital that we strengthen ourcompliance and risk management. In August 2014, we established the Compliance and Risk Management Office as a specialist organizational unit tasked with working toward this goal.
We are committed to implementing measures that will further
reinforce internal controls.
We look forward to your continued guidance and encouragement as we undertake these efforts.
Toru Nakatani President
Japan International Cooperation System (JICS)

The Medium-term
Operational Action Plan Progress

FY2012–FY2014 Progress on the Medium-term
Operational Action Plan:
Main Achievements to Date and Issues to be Addressed

Medium-term Operational Action Plan
Four Themes

FY2013
FY2012w Main Achievements

w Main Achievements

Winning of contracts through a competitive
processO Conducted questionnaire tostakeholders

Winning of contracts through a competitive
process / Nominated Contractor

Steadily won contracts for traditional
operations

Strengthening of proposal capabilities andwinning new contracts

w Main Achievements
w Main Achievements

Creation of a self-motivated and proactive
approach

3. Recruiting andnurturing humanresources
4. Strengthening
management
controlOH uman resource devel-opment

OR evenue and expense

management

O S trengthened project

Small and Medium sized Enterprises(SMEs) assistance–related studies: 2 / Dispatch of personnel for geothermal power
development project
Building organizational structures andachieving results

O Prepared long-term human resources
training plan and a human resources
roadmap
O Implemented measures to improve
quality through enhancement of operational efficiency and standardization ofdocumentation tasks
O Formulated internal risk management
regulations
O Held conferences and training sessions
aimed at improving budget control

O Introduced an internal certification
system for project managers
O Implemented measures to improve thequality of procurement service throughstandardization of tendering proceduretasks and sharing of lessons learned
O Improved the utilization of the RiskControl Matrix (RCM)O Prepared policies for Business Continuity
Plan (BCP) / Held training for information security and safety management
O Held conferences and training sessions
aimed at improving budget management

Measures to strengthen organizationalinfrastructure

Skill improvement aimed at enhancing
competitivenessw Main Achievements

management

O Building a base for making decisions on launching new businesses

Collaboration in Public–Private Partnerships(PPP)

w Main Achievements

O S trengthened risk man-agement

O Established the New Business Development OfficeO Undertook new business developmenttasks

L Issues to beAddressed

w Main Achievements
O Established the Compliance and Risk Management Office

L Issues to beAddressedO Human resource development and acquisitionof qualifications
O Analysis of organizational risk and enhancementof organizational riskmanagement03
FY2012–FY2014 Progress on the Medium-term Operational Action Plan

2. Developing newbusinessO Held an internal business proposal
competition for new business development projects
O Number of internal business proposals
submitted to the database of new business development projects: 140O Formulated regulations for the Conflictsof Interest Management CommitteeO Human resource development and acquisitionof qualifications
O Strengthening information-gathering capabilities

Annual Report 2013

Grant Aid for Cultural Grassroots Projects
analysis of project applications / JICA Cultural Grant Aid preliminary studies / JICAUzbekistan Loan Aid execution-related
facilitation / Grant Assistance for the Food
Aid Project / Non-Project Grant Aid (six outof seven regions)

Grant Assistance for Japan’s NGO Projects
screening services / Sub-Sahara Loan Aid
project development and loan executionrelated facilitation / Syria aid preliminary
survey / Grant Aid for Cultural Grassroots
Projects analysis of project applications

L Issues to be
Addressed
Japan International Cooperation System

1. Seeking new business which utilizes
JICS’ know-how

FY2014