Part 1

Principal Activities in FY2014

Reference Materials

Part 2 Description of Projects

FY2014 Business Report
Item

Description

Actual Figures in FY2013 Actual Figures in FY2014

Procurement Services and Management Services on International Cooperation Operations
Grant Aid
1. Procurement Agent Services and Procurement Consulting Services

3/8

7/7

11/16

12/16

12 (continuing)

0/8

40/42

34/60

1/8

2/2

5/8

3/11

3/4

0/8

5/27

6/31

57 (continuing)

0/45

0/0

1/0

Cultural grant aid-related study and analysis of project 1
applications for grass root cultural grant aid, etc. (new)10 (new)/1 (continuing)
1 (new)

18 (continuing)(3) Study on Work Ratio of Construction Machine andLabor

0 (new)/0 (continuing)
1/1

0 (new)

1

1(4) Follow-up study(5) Screening

Technical Cooperation

Follow-up study for execution of grant aid (new/continuing)
Grant assistance for Japanese NGO projects (new)(1) Support on technical cooperation

1 (new)(2) Support for local procurement

Dispatch of short-term procurement support staff (new) 1(3) Compilation of specifications for equipment export

Compilation of specifications for equipment export

Loan Aid(1) Procurement management services for loan aid(2) Study for Japanese ODA Loans, etc.
(3) Revision of procurement-related documents

1 (new)

Check and audit of procurement-related documents 1(new)Study and support on implementation of loan project 1(new)
Revision of procurement-related documents on loan 1 (continuing)
projects

1 (new)/1 (continuing)
1
0 (new)/0 (continuing)2
50 (new)/0 (continuing)

Business Contributing to the Promotion of the Appropriate and Efficient Implementation of International Cooperation Programs Carried
Out by International Agencies and Organizations, Foreign Governments and Other Organizations Engaged in International Cooperation
Business contributing to the promotion of the appropriate and efficient implementation of international
cooperation programs carried out by international agencies and organizations, foreign governments and otherorganizations engaged in international cooperation

1 (new) / 7 (continuing)

6 (new) / 7 (continuing)

Other Activities Necessary to Achieve the Purposes of the Foundation (Cooperation with private enterprises, etc.)(1) Project subsidy(2) Project Formulation Survey on SME support

Supply of the Equipment under the Machinery andEquipment Project for Saudi Japanese Automobile
1
High Institute in 2014 (new)Feasibility studies and basic surveys by the Ministry of 1 (new)Foreign Affairs or JICA

Collecting information and investigation for verification
related to support for Syria (Evaluation of support for Syria)(4) Dispatch of experts
Dispatch of experts (new/continuing)(5) P romotion of sport-related programs (SPORT FOR TOMOR- SPORT FOR TOMORROW Programme, “UNDOKAI” trial
ROW Programme)
project(3) ODA needs survey

1 (new)
2/6
0 (new)/0 (continuing)1
3 (new)/0 (continuing)
0 (new)/0 (continuing)
1/8
1 (new)

Support Program for Non-Governmental Organizations (NGOs) Working in the International Cooperation Field(1) Support for NGOs

Evaluating and choosing NGOs for support andproviding funds

11 NGOs

13 NGOsJICS Medical Lecture for Travellers

5 times

5 times

Updating of the website

As needed
Japanese andEnglish editions

As needed
Japanese andEnglish editions

Education and Support Promoting International Cooperation
Education and support promoting international cooperation

Publication of Annual Report

Publication of articles in information magazines con- As needed
cerning international cooperation
Participation in international cooperation festivals and 3 times
eventsAs needed
2 times47
FY2014 Business Report(2) Preliminary study

Annual Report 2015

2. Studies and Screening on International Cooperation Operations(1) Study for cultural grant aid

Japan International Cooperation System

Procurement agent services for grant assistance for(1) Procurement agent services for grant assistance forfood security project for underprivileged farmers
the food security project for underprivileged farmers the(new/continuing)(2) Procurement agent services for grant assistance for
Procurement agent services for grant assistance forthe food aid project
the food aid project (new/continuing)
Procurement consulting services for cultural grant(3) Expediting implementation of cultural grant aid
aid(new/continuing)
Procurement
agent services for non-project grant aid(4) Procurement agent services for non-project grant aid (new/continuing)
agent services for emergency grant aid(5) Procurement agent services for emergency grant aid Procurement(new/continuing)(6) Procurement agent services for grant aid for conflict Procurement agent services for grant aid for conflict
prevention and peacebuilding
prevention and peacebuilding (new/continuing)(7) Procurement agent services for grant aid for disaster Procurement agent services for grant aid for disasterprevention and reconstruction
prevention and reconstruction (new/continuing)(8) Procurement agent services for grant aid for commu- Procurement agent services for grant aid for community empowerment
nity empowerment (new/continuing)(9) Procurement agent services for program grant aid for Procurement agent services for program grant aid forenvironment and climate change
environment and climate change (new/continuing)
construction projects involving service(10) Grant Assistance in the field of Public–Private Part- Infrastructure
operations and management components which
nership (PPP)
introduces the concept of PPPPart 1

Principal Activities in FY2014

Reference Materials

Part 2 Description of Projects

FY2014 Balance Sheet
March 31, 2015
(Unit: yen)

Item

FY2014FY2013

Variance

615,980,623
286,797,340
15,055,381
73,360,758
27,993,495
1,019,187,597

340,671,208
435,270,369
15,125,040
21,77032,247,592
823,335,979

275,309,415(148,473,029)(69,659)
73,338,988(4,254,097)
195,851,618

137,000,000
250,000,000
387,000,000

137,000,000
250,000,000
387,000,000

000

10,000,000
7,533,000
17,533,000

10,000,000
5,181,000
15,181,000

02,352,000
2,352,000

2,761,869
35,327,964
40,823,753
6,722,744
79,516,432
18,258,529
43,314,908
861,507
1,446,681
229,034,387
633,567,387
1,652,754,984

2,130,055
44,211,717
46,028,138
25,274,838
78,900,314
31,851,041
47,108,385
1,634,783
4,918,677
282,057,948
684,238,948
1,507,574,927

631,814(8,883,753)(5,204,385)(18,552,094)
616,118(13,592,512)(3,793,477)(773,276)(3,471,996)(53,023,561)(50,671,561)
145,180,057

1. Current liabilities    Accrued payments   Allowance for bonus   Deposit received   Short-term lease obligations    Provision for warranties for the Djibouti project    Reserve for operational losses   Income tax payable
Total current liabilities

94,408,050
154,989,553
7,854,297
1,535,440
022,014,889
107,512,200
388,314,429

115,349,353
165,448,773
7,532,561
3,662,194
32,854,000
091,845,100
416,691,981(20,941,303)(10,459,220)
321,736(2,126,754)(32,854,000)
22,014,889
15,667,100(28,377,552)

2. Fixed liabilities    Reserve for executive officers’ retirement benefits   Long-term lease obligations
Total fixed liabilities
Total liabilities 2)

7,533,000
07,533,000
395,847,429

5,181,000
1,535,440
6,716,440
423,408,421

2,352,000(1,535,440)
816,560(27,560,992)

372,000,000
372,000,000[372,000,000]
884,907,555[15,000,000][10,000,000]
1,256,907,555
1,652,754,984

372,000,000
372,000,000[372,000,000]
712,166,506[15,000,000][10,000,000]
1,084,166,506
1,507,574,927

00[0]
172,741,049[0][0]
172,741,049
145,180,057

Japan International Cooperation System Annual Report 2015

I Assets

FY2014 Balance Sheet

48

1. Current assets   Cash equivalents    Accrued revenues   Prepaid expenses    Advances paid   Suspense payments
Total current assets
2. Fixed assets(1) Endowment    Endowment in installment deposits    Endowment in investment securities  Total endowment(2) Specific assets    Accumulated assets for support to non-governmental organizations    Assets reserved for executive officers’ retirement benefits    Total specific assets(3) Other fixed assets    Vehicles and other transportation devices    Equipment attached to building    Appliances and fixtures   Software    Deposit and security moneys   Long-term prepaid expenses   Prepaid pension expenses   Investment securities   Lease assets    Total other fixed assets
Total fixed assets
Total assets 1)

II Liabilities

III Net Assets
1. Designated net assets   Contributions and subscriptions
Total designated net assets    [Amount of allotment to the endowment]
2. General net assets    [Amount of allotment to the endowment]    [Amount of allotment to specific assets]
Total net assets 1) - 2)
Total liabilities and net assets

FY2014 Statement of Net Equity Increase (Decrease)
April 1, 2014–March 31, 2015
(Unit: yen)

Item

FY2014FY2013

Variance

2,941,123
2,941,123
2,843,535,789
2,583,866,566
45,000,049
126,177,030
49,964,974
38,527,170
2,781,392
2,781,392
2,849,258,304

2,913,724
2,913,724
2,645,251,203
2,346,668,648
53,773,250
155,499,200
59,841,394
29,468,711
1,894,810
1,894,810
2,650,059,737

27,39927,399198,284,586
237,197,918(8,773,201)(29,322,170)(9,876,420)
9,058,459
886,582
886,582
199,198,567

2,106,587,815
393,019,290
2,499,607,105
349,651,199

2,160,480,271
344,309,555
2,504,789,826
145,269,911(53,892,456)
48,709,735(5,182,721)
204,381,288

1,217,311
1,217,311

833,852
833,852

383,459
383,459

24,913046,495,647
22,014,889
68,535,449(67,318,138)
282,333,061

0
32,854,000
0032,854,000(32,020,148)
113,249,763

24,913(32,854,000)
46,495,647
22,014,889
35,681,449(35,297,990)
169,083,298

109,592,012
172,741,049
712,166,506
884,907,555

92,136,825
21,112,938
691,053,568
712,166,506

17,455,187
151,628,111
21,112,938
172,741,049

1) Amount of transfer to general net assets   Amount of transfer to general net assets    Designated net assets increase or decrease for the year    Designated net assets at beginning of year    Designated net assets at end of year (J)000372,000,000
372,000,000000372,000,000
372,000,000

0
0
0
0
0

III Net Assets at End of Year (I) + (J)1,256,907,555

1,084,166,506

172,741,049

I General Net Assets Increase or Decrease

Annual Report 2015

49
FY2014 Statement of Net Equity Increase (Decrease)

II Designated Net Assets Increase or Decrease

Japan International Cooperation System

1. Current increase or decrease(1) Current profits   1) Profit from the management of the endowment     Interest received from the endowment   2) Profit from business activities     Profit from grant aid programs     Profit from technical cooperation programs    Profit from loan program     Profit from programs with international agencies and organizations, etc.
     Profit from other commissioned projects   3) Miscellaneous profits    Miscellaneous profits  Total current profits (A)(2) Current expenses   1) Operating expenses   2) Administrative expense  Total current expenses (B)    Current increase or decrease for the year (C) = (A) - (B)
2. Nonrecurring increase or decrease(1) Nonrecurring increase   1) Gain on sales of fixed assets  Total nonrecurring increase(2) Nonrecurring expenses   1) Loss on sales and retirement of noncurrent assets   2) Provision for warranties for the Djibouti project   3) Loss on warranties for the Djibouti project   4) Provision to reserve for operational losses  Total nonrecurring expenses    Nonrecurring increase or decrease for the year (D)    General net assets increase or decrease for the year before income taxes(E) = (C) + (D)    Income taxes—current (F)    General net assets increase or decrease for the year (G) = (E) - (F)    General net assets at beginning of year (H)    General net assets at end of year (I) = (G) + (H)Part 1

Principal Activities in FY2014

Part 2 Description of Projects

Reference Materials

A Brief History of JICS
1989

April

JICS (2 departments and 4 divisions) was founded and opened an office at Ichigaya Honmura-cho, Shinjuku-ku.

AugustJICS began compiling technical specifications and studies for expediting implementation of grant aid for increaseof food production.

December JICS began on-site surveys of grant aid projects.
1990

January

JICS began follow-up studies for grant aid projects.

April

JICS began procurement management services for grant aid projects.

Japan International Cooperation System Annual Report 2015

November JICS began procurement and transportation of equipment for technical cooperation.
1991

JICS began small-scale procurement of equipment and materials for JICA projects.

November JICS reorganized into 3 departments and 6 divisions.
1992

January

JICS began procurement and transportation of equipment for technical cooperation experts.

September JICS began dispatch of long-term grant aid researchers.
1993

October

JICS began providing services for cultural grant aid and non-project grant aid projects.

1994

February

JICS office moved to Shinjuku Mitsui Bldg., Nishi-Shinjuku, Shinjuku-ku.

April

JICS reorganized into 3 departments, 5 divisions and 5 offices.

1996

March

JICS office moved to Shinjuku Sanshin Bldg., Yoyogi, Shibuya-ku.

1997

July

JICS began providing services for grant aid for child health projects.

1998

January

JICS began procurement management services for grant aid for increase of food production projects.

March

JICS began providing services for emergency grant aid projects.

February

JICS established a Technical Information Center.

July

JICS reorganized into 3 departments, 1 office and 13 divisions.

October

JICS began support for NGO activities.

2001

April

JICS partially revised its Articles of Foundation.

2002

April

JICS began providing services for grant aid for research projects.

June

JICS began procurement management services for food aid projects.

March

JICS began providing services for grant aid for conflict prevention and peacebuilding projects.

April

JICS office moved to Shinjuku EAST Building, Tomihisa-cho, Shinjuku-ku.

May

JICS reorganized into 3 departments and 11 divisions.

October

JICS began providing services for grant aid for Japanese NGO projects.

1999

50
A Brief History of JICS

April

2003

JICS reorganized into 2 offices, 3 departments and 8 divisions.
2004

June

JICS reorganized into 3 offices, 2 departments and 3 divisions.

2006

AugustJICS began providing services for grant aid for disaster prevention and reconstruction.

December JICS began providing services for grant aid for community empowerment.
2007

January

JICS established its Office of Management Planning.

April

JICS partially revised its Articles of Foundation.

2008

October

JICS reorganized into 4 offices, 3 departments and 11 divisions.

2009

April

JICS began providing services for Program grant aid for environment and climate change.

July

JICS established Special Operations Office.

April

JICS changed the status of the foundation to general incorporated foundation (not-for-profit).

2012

JICS implemented organizational restructuring (2 offices, 5 departments and 18 divisions structure).
2013

July

JICS implemented organizational restructuring (6 offices, 4 departments and 16 divisions structure).

2014

AugustJICS established Compliance and Risk Management Office.

September JICS partially revised its Articles of Incorporation.
November JICS registered as a First Class Registered Architects Office.

Board of Directors / Board of Trustees
Board of Directors As of August 1, 2015
Toru Nakatani
Toru Kubo
Hiroshi Aoki
Mutsuko Asakura
Yutaka Kitani
Michio Masaki
Naoki Sou
Kiyoshi Toi

Professor, Law School at Waseda University
Advisor, Kikkoman Corporation
Attorney at Law, City-Yuwa Partners
Certified Public Accountant, Tax Accountant
Certified Public Accountant

Board of Trustees As of August 1, 2015

Members

Secretary General, International Cultural Institute
President, The Japan Institute of Economic Feasibility Study
President, International Development Center of Japan
General Manager of Economic Cooperation Office, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Managing Director, Planning Department, The Japan Foundation
President, International Development Center of Japan
Part-time lecturer at Gakushuin University, Journalist
Senior Executive Director, The Overseas Construction Association of Japan, Inc.
President, Japan International Cooperation Center

51

Presidents since JICS was established
April 1989–December 1991
March 1992–March 1997
April 1997–March 2004
April 2004–August 2010
September 2010–

Chairman of the Board of Trustees since JICS was established
Fumio Watanabe
Shigeru Ishikawa
Hiroshi Matsumoto
Yoriko Meguro
Shunichi Hiraki

Honorary Advisor, Japan Airlines Corporation
Professor Emeritus, Hitotsubashi University
Director, The International House of Japan, Inc.
Professor Emeritus, Sophia University
President, The Japan Institute of Economic Feasibility Study

April 1989–March 2003
April 2003–March 2005
June 2005–June 2009
June 2009–March 2012
June 2012–July 2015

Board of Directors/Board of Trustees

Hiroshi Yokota
Shigeru Tokuhisa
Yutaka Nomura
Takahisa Sasaki
Toru Nakatani

Annual Report 2015

Michiyo Arita
Shunichi Hiraki
Masaoki Takeuchi
Hirotake Hirose
Harufumi Murata
Masaoki Takeuchi
Makoto Tochigi
Yoshihiro Yamaguchi
Sachiko Yamano

Japan International Cooperation System

President
Vice President
Executive Director
Executive Director
Executive Director
Auditor
AuditorAccounting Auditor

Part 1

Principal Activities in FY2014

Reference Materials

Part 2 Description of Projects

Organization Chart(As of August 1, 2015)

Audit OfficeInternal audit

Compliance and Risk
Management OfficeCompliance and risk management matters

Management Planning
OfficeMatters relating to the formulation of management policies and the Medium-termManagement Plan

Japan International Cooperation System Annual Report 2015

Personnel management, Office regulations, Personnel training, Employee remuneration
experts

Board ofTrustees

Board ofDirectors

General Affairs
Department

President

Vice
President

Organization Chart

52

Personnel Affairs Division management, Employee welfare, Occupational health, Labor union and Dispatch ofFirst Management
Department

Senior Director
GeneralSecond Management Department
Auditor Accounting
AuditorThird Management
Department

General Affairs Division

JICS Support for NGOs, Administration of the Board of Directors and the Board ofTrustees, Public relations, Administration of the organization, Document control, Legalaffairs, Internal regulations, Performance statistics, Information control and Security
measures

Finance and Accounting
Division

Items related to the budget and account settlement, Financial planning, Cash management and Facility and property management

New Business Development Office

Development of new businesses

Quality Management
OfficeQuality management related to the execution of services, Screening services related tothe administration of tenders and contracts

Coordination OfficeService-related coordination and general affairs

First Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects andProcurement agent services for Grant aid for disaster prevention and reconstruction

Second Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects andProcurement agent services for Grant aid for disaster prevention and reconstruction

Third Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects,
Procurement agent services for Grant aid for disaster prevention and reconstruction and
Procurement agent services for Program grant aid for environment and climate changeFirst Procurement
Management Division

Procurement agent services for Grant assistance for the food security project forunderprivileged farmers (2KR) and Procurement agent services for Grant assistance forthe food aid project (KR)Second Procurement
Management Division

Procurement agent services for Grant assistance for the food security project forunderprivileged farmers (2KR) and Procurement agent services for Grant assistance forthe food aid project (KR)Third Procurement
Management Division

Procurement agent services for Non-project grant aid, Studies and procurement
consulting services for Cultural grant aid projects and Procurement agent services for
Grant aid for disaster prevention and reconstruction

First Special ProjectManagement Division

Procurement agent services for Program grant aid for environment and climate change
and Procurement agent services for Non-project grant aid

Second Special ProjectManagement Division

Procurement agent services for Program grant aid for environment and climate change
and Procurement agent services for Non-project grant aid

First Country AssistanceDivision

Projects in specific region

Second Country
Assistance Division

Projects in specific region

International
Organization Division

Programs with international agencies and organizations, etc.

Grant and Loan Cooperation Support Division

Support of procurement by ODA loans

Technical Cooperation
Support Division

Support for technical cooperation and procurement and Screening services related toGrant assistance for Japanese NGO projects

The Articles of Incorporation ofJapan International Cooperation System (JICS)(As amended on September 25, 2014)

Chapter 1. General Provisions

Article 4 (Business)

Article 10 (Restrictions on Disposal of Surplus)

Article 1 (Name)	This corporation is called Japan International Cooperation System (JICS)(hereinafter referred to as the “Foundation”).

Article 2 (Offices)	The Foundation shall locate its principal office in Shinjuku-ku, Tokyo,
Japan.

Chapter 2. Purposes and Business
Article 3 (Purposes)

Article 5 (Kinds of Assets)1	The Assets of the Foundation shall consist of endowment and otherassets.
2	The endowment shall consist of assets which the Board of Directors
resolved as endowment.
3 Other assets shall be assets other than endowment.

Article 6 (Management, Investment and Disposal of Assets)1	The President shall manage and invest the assets of the Foundation
with the care of good manager to accomplish the purposes of theFoundation, and its management and investment methods shall be determined by the Rules of Management and Investment of Assets whichshall be decided by the resolution of Board of Directors.
2	Should unavoidable circumstances arise, part of the endowment may
be disposed of or removed with the prior approval of the Board of
Directors and the Board of Trustees.

Article 7 (Business Year)	The business year of the Foundation shall commence on April 1 every
year and end on March 31 of the following year.

Article 8 (Business Plan and Income and Expenditure Budget)1	The President shall prepare the business plan and the income andexpenditure budget of the Foundation and they must be approved by
the Board of Directors no later than the day immediately preceding thecommencement date of each business year. The same shall apply inthe event of any changes thereto.
2	Documents described in the preceding paragraph must be kept in theprincipal office until the end of applicable business year.

Article 9 (Business Report and Settlement of Accounts)

1	With respect to the business report and the settlement of accounts, thePresident shall prepare the documents set forth below after the end ofeach business year, which shall be audited by the Auditors, followed by
the audit of Items (3) to (5) by the Accounting Auditors. Upon completion of audit, all of these documents must be approved by the Board of
Directors.
(1) Business report;(2) Detailed statement on the business report;

Chapter 4. Trustees
Article 11 (Quorum)

The Foundation shall have five to eleven Trustees.

Article 12 (Election and Dismissal of Trustees)1	In accordance with the provisions of Articles 179 to 195 of Act on General Incorporated Associations and General Incorporated Foundations,
Trustees shall be elected and dismissed by the Board of Trustees.
2 Trustees shall meet all of the following requirements:(1) Total number of Trustees who fall under any of the following conditions shall not exceed one-third of total number of Trustees.
		 a.	Trustee and its spouse or relatives within the third degree of lineal
kinship;		 b. Trustee and person who are in de facto marriage with the Trustee;		 c. Employee of Trustee;		 d.	Person who does not fall under b or c and who makes a living byreceiving payments or other assets from the Trustee; or		 e. Spouse of the person who falls under c or d.
		 f.	Relative who is within the third degree of lineal kinship and whoshares a livelihood with the person who falls under any of theconditions under b through d.
(2) Total number of Trustees who holds any of the following positionsin the organization identical to the Foundation (except for public-service corporation) shall not exceed one-third of total number ofTrustees.
		 a. Executive Director
		 b. Employee
		 c.	Director other than Executive Director (representative or administrator of the organization that is not a juristic person if suchorganization prescribes any representative or administrator) or
member who performs the business		 d.	Staff (except the member of the Diet and member of assembly of
local authority) of the following organizations:			 a National agency
b Local authorityc Independent administrative agency as provided in Paragraph 1
of Article 2 of Act on General Rules for Independent Administrative Agency
d National university corporation as provided in Paragraph 1 of
Article 2 of National University Corporation Act or inter-university research institute corporation as provided in Paragraph 3 ofArticle 2 of National University Corporation Act
e Local independent administrative agency as provided in
Paragraph 1 of Article 2 of Local Independent Administrative
Agency Act
f Public corporation or semi-governmental corporation

Article 13 (Term of Office of Trustees)1	The term of office of Trustees shall be until the end of the annual meeting of Board of Trustees for the final business year out of the businessyears which end within four years from the time of their election.
2	The term of office of the Trustee, who is elected as an alternate of theTrustee who resigned before the expiration of his/her term of office,shall be the remaining term of office of such resigned Trustee.
3	In case total number of Trustees falls below the quorum prescribed in
Article 11, Trustees shall have their rights and obligations as Trustee
even after their resignation or expiration of their term of office until theirsuccessor assumes office.

53
The Articles of Incorporation of Japan International Cooperation System (JICS)

Chapter 3. Assets and Accounting

The Foundation may not distribute any surplus.

Annual Report 2015

1	The Foundation shall conduct the following businesses in order toaccomplish the purpose described in the preceding article:(1) Procurement services in the field of international cooperation business;(2) Management services in the field of international cooperation business;(3) Consultancy services in the field of international cooperation business;(4) Research and studies in the field of international cooperation business;(5) Design and supervision of architecture and civil engineering work
concerning international cooperation;(6) Support to NGO, etc. relating to international cooperation activities;(7) Dissemination and enlightenment of knowledge concerning international cooperation activities; and(8) Other businesses necessary to achieve the purpose of the Foundation.
2	Business described in the preceding paragraph shall be conducted inJapan and abroad.

Japan International Cooperation System	The purposes of the Foundation are to perform the procurement andmanagement services in the field of international cooperation businessin order to contribute to international peace and stabilization.

(3) Balance sheet;(4) Profit-and-loss statement (statement of net worth); and(5) Detailed statement on the balance sheet and profit-and-loss statement (statement of net worth)2	Out of the approved documents described in the preceding paragraph,
Items (1), (3) and (4) must be reported to the annual meeting of Boardof Trustees; provided, however, that in the case any of such documents
does not fall under any of the requirements described in Article 48 of
Enforcement Regulation of Act on General Incorporated Associationsand General Incorporated Foundations applied mutatis mutandis pursuant to Article 64 of said Enforcement Regulation of Act, documents
excluding Item (1) must be approved by the annual meeting of Board ofTrustees instead of reporting to the annual meeting of Board of Trustees.
3	Documents described in Paragraph 1 and following documents shall be
kept in the principal office for five years. Articles of Incorporation shallalso be kept in the principal office at all times.
(1) Audit report; and(2) Financial audit reportPart 1

Principal Activities in FY2014

Part 2 Description of Projects

Article 14 (Remuneration, etc. to Trustees)	Trustees may receive remuneration, etc. calculated by criteria of payment of the remuneration, etc. determined separately by the Board ofTrustees.

Chapter 5. Board of Trustees
Article 15 (Structure)

The Board of Trustees shall consist of all of the Trustees.

Japan International Cooperation System Annual Report 2015

Article 16 (Rights)

The Articles of Incorporation of Japan International Cooperation System (JICS)

54

The Board of Trustees shall resolve the following matters:(1) Election and dismissal of Executive Directors, Auditors and Accounting Auditors;(2) Remuneration, etc. of Executive Directors and Auditors;(3) Criteria for payment of remuneration, etc. to Trustee;(4) Approval of the balance sheet and profit-and-loss statement (statement of net worth);(5) Changes to these Articles of Incorporation;(6) Disposal of residual assets;(7) Approval of disposal or removal of endowment; and(8) Other matters prescribed in law or these Articles of Incorporation asa matter which must be resolved by the Board of Trustees.

Article 17 (Convening of Meetings)

	The Board of Trustees shall hold the annual meetings in June every year.
Should the needs arise, the Board of Trustees shall hold the extraordinary meeting.

Article 18 (Convocation)

1	Unless otherwise prescribed in law, the Board of Trustees meetings shallbe convened by the President pursuant to the resolution of the Board of
Directors.
2	Trustees are entitled to request the convocation of the Board of Trustees
meeting by indicating the purpose and reason for convening the Boardof Trustees meeting to the President.

Article 19 (Resolution)

1	The resolution of the Board of Trustees shall be adopted with theattendance of majority of Trustees and with the votes of majority ofTrustees present excluding the Trustees who have a special interest in
the resolution.
2	Notwithstanding the provision of the preceding paragraph, following
resolution shall be adopted by the votes of two-thirds or more of theTrustees excluding the Trustees who have a special interest in the resolution:(1) Dismissal of an Auditor;(2) Criteria for payment of remuneration to a Trustee;(3) Changes to these Articles of Incorporation; and(4) Other matters prescribed in law.
3	With respect to the resolution for proposal on the election of Executive
Director or Auditor, the resolution described in Paragraph 1 is required
for each candidate. In case the number of candidates for Executive
Director or Auditor exceeds the quorum prescribed in Article 21, theExecutive Director or the Auditor will be elected from among the candidates who have obtained a majority of votes in the order of candidates
with the most number of votes until it reaches the quorum.

Reference Materials

3	The total number of Executive Directors having a relative who is also
an Executive Director shall not exceed one-third of the total number of
Executive Directors.

Article 23 (Duties and Rights of Executive Directors)

1	The Executive Directors constitute the Board of Directors and shall carryout the duties pursuant to the law and these Articles of Incorporation.
2	The President shall represent the Foundation and carry out the duties
pursuant to the law and these Articles of Incorporation. The Vice Presidents shall respectively carry out the duties determined separately by
the Board of Directors.
3	The President and the Vice Presidents shall report the progress of theirperformance of their duties to the Board of Directors at least twice eachbusiness year with more than 4-month interval between each report.

Article 24 (Duties and Rights of Auditors)

1	The Auditors shall audit the Executive Directors’ performance of theirduties and make an Audit Report pursuant to the law.
2	The Auditors may request the Executive Directors and the employees
for a business report and may conduct investigation on the businessand financial condition of the Foundation at any time.

Article 25 (Duties and Rights of Accounting Auditor)

1	The Accounting Auditor shall audit the balance sheet, profit-and-loss
statement (statement of net worth) and detailed statement of each ofsuch documents and shall make an Accounting Audit Report pursuant
to the law.
2	Accounting Auditor may view and copy the following items and may request the Executive Directors and the employees to report any mattersrelating to accounting:(1) Accounting book or related information prepared in writing if it isprepared in writing; and(2) Accounting book or related information in electronic record prepared by method prescribed in the law if it is prepared in electronic
record.

Article 26 (Term of Office of Directors and Accounting Auditor)

1	The term of office of Executive Director shall continue until the closingof annual meeting of the Board of Trustees for the final business year
out of the business years that end within two years of his/her appointment.
2	The term of office of Auditor shall continue until the closing of theannual meeting of Board of Trustees for the final business year out of
the business years that end within four years of his/her appointment.
3	The term of office of Executive Director or Auditor elected as an alternate shall continue until the end of the term of office of his/her predecessor.
4	In case where the number of Executive Directors or Auditors falls below
the quorum stipulated in Article 21, an Executive Director or Auditor
shall continue to have his/her rights and obligations as Executive Director or Auditor even after his/her resignation or expiration of his/her termof office until his/her successor assumes office.
5	The term of office of Accounting Auditor shall continue until the closingof the annual meeting of Board of Trustees for the final business yearthat ends within one year of his/her appointment; provided, however,that such Accounting Auditor shall be deemed re-elected if the resolution which decides otherwise is not adopted at such annual meeting ofBoard of Trustees.

Article 27 (Dismissal of Directors and Accounting Auditor)

Article 21 (Appointment of Directors)

1	If any of the following applies to a Director, such Director may be dismissed by a resolution of the Board of Trustees:(1) Breach of his/her duties or failure to conduct his/her duties(2) Difficulty in, or inability to cope with, the performance of his/herduties due to mental or physical disability
2	If any of the following applies to an Accounting Auditor, such Accounting Auditor may be dismissed by a resolution of the Board of Trustees:(1) Breach of his/her duties or failure to conduct his/her duties(2)Misconduct which is inappropriate for Accounting Auditor(3) Difficulty in, or inability to cope with, the execution of his/her duties
due to mental or physical disability
3	The Auditor may dismiss the Accounting Auditor with the approval of
all Auditors in case any of the items under Items (1) to (3) of preceding
paragraph applies. In case of dismissal, the Auditor shall report such fact
and reason for dismissal to the first Board of Trustees meeting held after
the dismissal.

Article 22 (Election of Directors and Accounting Auditors)

Article 28 (Remuneration, etc. to Directors and Accounting
Auditor)

Article 20 (Minutes)

Minutes of the Board of Trustees shall be made as stipulated by law.

Chapter 6. Directors and Accounting Auditors1	The Foundation shall have the following Directors:
Executive Directors Between three and seven.
Auditors
No more than two.
2 One of the Executive Directors shall become the President.
3	Out of the Executive Directors other than the Executive Director who
becomes the President, no more than three Executive Directors shallbecome the Vice Presidents.
4 The Foundation shall appoint an Accounting Auditor.
1	The Executive Directors, the Auditors and the Accounting Auditors shallbe elected by the Board of Trustees.
2	The President and the Vice Presidents shall be elected by the resolutionof Board of Directors from among the Executive Directors.

1	Remuneration, etc. may be paid to Directors and Auditors in theamount calculated pursuant to the standards for payment of remuneration, etc. to be separately decided by the Board of Trustees within the
total amount to be separately decided by the Board of Trustees.
2	Remuneration, etc. to Accounting Auditor shall be decided by the Boardof Directors by a majority of votes of Auditors.

Article 29 (Exemption from Liability or Limitation of Liability)

Chapter 7. Board of Directors
Article 30 (Structure, etc.)

The Board of Directors shall consist of all of the Executive Directors.

Article 31 (Authority)

Article 32 (Convocation)

1 The Board of Directors shall be convened by the President.
2	If the post of President is vacant or the President is involved in an accident, each of the Directors shall convene the meeting on behalf of the
President.
1	Resolution of the Board of Directors shall be adopted with the attendance of majority of Executive Directors and with the votes of majorityof Executive Directors present excluding those having a special interestin the resolution.
2	Notwithstanding the preceding paragraph, the resolution of the Boardof Directors shall be deemed to have been adopted if the requirements
as stipulated in Article 96 of the Act on General Incorporated Associations and General Incorporated Foundations as applied mutatis mutandis pursuant to Article 197 of such Act have been fulfilled.

Article 34 (Minutes)

1 Minutes of the Board of Directors shall be made as stipulated in the law.
2	The President and the Auditors present at the Board of Directors meeting shall sign their names and affix their seals on such minutes.

Chapter 8. Advisor
Article 35 (Advisor)

1 The Foundation may have Advisors not exceeding five persons.
2	The Board of Directors shall appoint the Advisors from among academic
experts, etc. after deciding on their term of office.
3	The Advisors shall work without any remuneration; provided, however,that Advisors are entitled to receive any expenses which are necessary
to perform their duties.
4	The Advisors may provide advices and comments in response torequests from the President.

Chapter 9. Amendment to Articles of Incorporation
and Dissolution of the Foundation
Article 36 (Amendment to Articles of Incorporation)

1	Amendment to these Articles of Incorporation may be made with theapproval of Board of Trustees.
2	The preceding paragraph shall also apply to Articles 3, 4 and 12 of these
Articles of Incorporation.

Article 37 (Dissolution)

	The Foundation shall be dissolved if the Foundation is unable to achieve
its purposes due to loss of endowment or for other reasons prescribedin the law.

Chapter 10. Method of Public Notice
Article 39 (Method of Public Notice)1	Public notices by the Foundation shall be made through electronic
public notice.
2	In case that public notice cannot be made electronically due to accidents and other unavoidable reasons, public notice shall be made byplacing such notice in the official gazette.

Supplementary Provision1	These Articles of Incorporation shall come into force on the date ofregistration of establishment of a public incorporated organization as
defined in Paragraph 1 of Article 106 of the Act on Arrangements ofRelevant Acts Accompanying the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations andPublic Interest Incorporated Foundations as applied mutatis mutandis
pursuant to Paragraph 1 of Article 121 of such Act.
2	Notwithstanding the provisions of Article 7 of the Act on Arrangementsof Relevant Acts Accompanying the Enforcement of the Act on General
Incorporated Associations and General Incorporated Foundations andthe Act on Authorization of Public Interest Incorporated Associations
and Public Interest Incorporated Foundations, in the event that theregistration for the dissolution of special civil law corporation and theestablishment of general incorporated association or general incorporated foundation take place as provided in Paragraph 1 of Article 106 ofsuch Act as applied mutatis mutandis pursuant to Paragraph 1 of Article
121 of such Act, the date immediately preceding the date of registration for dissolution shall be the final date of the business year and thedate of registration for establishment shall be the starting date of thebusiness year.
3	The first President of the Foundation shall be Toru Nakatani, the first Vice
President shall be Toshiyuki Ezuka and the first Accounting Auditor shallbe Kiyoshi Toi.
4	The first Trustees shall be the following:Michiyo Arita, Hajime Suzuki, Masaoki Takeuchi, Makoto Tochigi
Tetsuya Nakao, Shunichi Hiraki, Kenichi Yanagisawa and Sachiko Yamano
5	The Executive Directors and Auditors who come into office on the dateof registration shall be the following:
Executive Director: Toru Nakatani, Toshiyuki Ezuka, Yutaka Kitani, Minoru
Ijima and Sumiko Yazawa
Auditor: Tsuyoshi Hinokuchi and Michio Masaki

55
The Articles of Incorporation of Japan International Cooperation System (JICS)

Article 33 (Resolution)

	The residual assets of the Foundation in case of liquidation of theFoundation shall be donated to the juridical person provided in Item 17of Article 5 of the Act on General Incorporated Associations and General
Incorporated Foundations, national government or local authority.

Annual Report 2015

The Board of Directors shall perform the following duties:(1) Decision on the performance of work of the Foundation(2) Supervision over the Executive Directors’ performance of their duties(3) Selection and dismissal of the President and Vice Presidents

Article 38 (Disposal of Residual Assets)

Japan International Cooperation System

1	The Foundation may exempt the liability of Executive Directors and Accounting Auditors under Paragraph 1 of Article 111 of the Act on General Incorporated Associations and General Incorporated Foundations asapplied mutatis mutandis pursuant to Paragraph 1 of Article 198 of such
Act with the resolution of the Board of Directors pursuant to Paragraph
1 of Article 114 of such Act as applied mutatis mutandis pursuant to
Article 198 of such Act up to the amount obtained by subtracting theminimum liability amount prescribed in the law from the amount ofliability of such Executive Directors and Accounting Auditors.
2	The Foundation may enter into contracts with Outside Directors andAccounting Auditor which limit the liability of the Outside Directors
under Paragraph 1 of Article 111 of the Act on General Incorporated
Associations and General Incorporated Foundations as applied mutatis
mutandis pursuant to Article 198 of such Act with the resolution ofBoard of Directors pursuant to Paragraph 1 of Article 115 of such Act asapplied mutatis mutandis pursuant to Article 198 of such Act; provided,
however, that the limitation of liability based on the contracts shall be
the minimum liability amount prescribed in the law.

Part 1

Principal Activities in FY2014

Part 2 Description of Projects

Reference Materials

Compliance
JICS’ Compliance Policy

Japan International Cooperation System Annual Report 2015

JICS implements procurement and other operations in the international cooperation field with the aim to contribute to peace and stabilization of the international society.
These operations encompass a wide range of stakeholders, including
the Government of Japan, Japanese citizens, recipient governments,
the citizens of recipient countries, tenderers, contractors (suppliers,
construction companies, consultants, etc.), and employees. It may besaid that JICS’ mission hinges on how well it is able to help stakeholders
benefit from these operations.

Compliance

56

JICS’ procurement operations are equivalent to public procurement
and must be performed in an appropriate manner ensuring transparency and fairness. JICS is involved in the activities with high public interest and thus is required to build a compliance system which ensures
not only the observation of laws and regulations but also the appropriate organizational operation and the fair proceeding of the projects.
JICS thinks it necessary to maintain the high confidence that stakeholders have placed in us through these activities.

Compliance System
Within MISSION, VISION, VALUE (“MVV”; refer to the MVV section on the inside front cover of this report), “VALUE” articulates the values each JICS
employee must uphold. As part of “VALUE,” JICS emphasizes “impartiality, fairness and transparency.” To promote enhanced quality in international
cooperation, based on MVV JICS has formulated 10 principles as its Code of Conduct (refer to the inside front cover of this report).
In accordance with this philosophy, JICS has established the following compliance system.
irregularities.
Compliance System
Board of(2) Compliance and Risk Management Office
Trustees
This office undertakes administrative duties on behalf of the CompliCompliance Committee
Strengtheningof
Reportingance Committee. The office also coordinates activities related to thecompliance; establishment
Board ofimprovement of compliance within JICS’ organization and risk analysis
Presidentof system and rules;
Directors
and risk mitigation measures across the entire organization aimed at
education and training
Seniorimproving risk management.
ViceDirectorofPresident Director
Response when(3) Audits by the Auditors, Accounting Auditor andGeneral Audit Officeirregularities occur; studies;Tax Accountant
Accounting Auditors Compliance and Risk Compliance officers consideration of response
The Auditors attend meetings of the Board of Directors and receive
Auditorpolicies and measures toManagement Office from each division
reports from the full-time directors twice yearly for the purpose of
prevent recurrence
Liaisonauditing the performance of duties by the Board of Directors andInstructions
Reportingpoint for Reporting
Executive Directors.
contact fromThe Accounting Auditor and Certified Tax Accountant principally
Internal liaison points
Attorney
external
conduct audits of financial- and accounting-related compliance(Compliance officers in each division, harassment officers)atlawpartiesmatters from an independent standpoint. The Accounting Auditor not
Education/
only audits the situation regarding the financial statements as well as
Reporting/consulting
information sharing Reporting/consulting
the establishment and operation of internal controls, but also audits
Employees / Parties providing information
deposit accounts for aid funds managed by JICS on behalf of recipient
country governments as part of procurement agent services.
(1) Compliance Committee(4) Audit Office
The President chairs the Compliance Committee, which considers andAs the department responsible for internal audits, Audit Office reports
deliberates on fundamental policies and plans related to the strengthdirectly to the President. The office conducts audits from a standpoint
ening of compliance. The committee also formulates fundamental
independent from other departments and reports to the President onpolicies related to JICS’ response to the occurrence of any compliancewhether operations are being carried out appropriately and efficiently.

Compliance-related Measures
To fulfill the JICS Code of Conduct shown above, JICS has built up its compliance systems.
(1)	The compliance manual issued to the employees which explains
the compliance system and precautions to be taken during daily
operations.
(2)	Instruction seminars for the employees by the Director of Compliance and Risk Management Office and an external professional.
(3)	Internal audit for procurement agent service procedures such as
tendering and contracting in order to check if such procedures
comply with the relevant rules and regulations.
(4)	Whistleblower system which prevents the legal violations andcopes with the actual matters.
(5)	Procedure for eliminating anti-social forces both from JICS organizational operations and from our projects and for dealing with theactual racketeering by interceding in civil disputes and threatening
the use of violence.
(6)	The Conflicts of Interest Management Committee which enables
JICS to start up businesses in new domains and to collaborate
with other organizations while continuing existing operations likeprocurement agent services which require JICS to be impartial,

fair and transparent, through preparing to be accountable for the
problems to be arisen from conflict of interest or such transactions.
(7)	Measures to prevent and eliminate harassment behavior, appointment of peer counselors, and education for employees to ensureorderliness and discipline in a fair workplace.
(8)	Security measures for the staff travelling overseas on confirming
security conditions through predeparture meeting or briefing,taking into account the travel advice released by the Ministry ofForeign Affairs of Japan.
(9)	Health Committee which works to ensure the employees’ safety
and health in the workplace and to maintain a comfortable workplace environment.
(10)	Check-ups of project offices overseas by accounting staff which
includes check-ups for management of cash and account, andinstruction for bookkeeping in overseas offices.
(11)	Instruction on JICS Code of Conduct for local staff who are involved in projects on-site in the recipient countries.

Personal Information Protection Measures
JICS clearly specifies its personal information protection policy, thetypes of personal information it is obligated to protect, and the actions
it takes that are necessary for the protection of personal information.
With the goal of ensuring that administrative systems comply withthese policies, JICS has formulated a set of basic regulations and related
rules for the protection of personal information. In FY2014, those rules
and regulations were revised in terms of reinforcing the recognitionof personal information protection. In association with these activities,
JICS received accreditation under the PrivacyMark System administrated by the Japan Institute for Promotion of Digital Economy and Com-munity (JIPDEC). PrivacyMark accreditation was
renewed the second time round on June 17, 2015.
On an organization-wide basis, JICS will continue
to handle personal information in an appropriatemanner, while at the same time working to further
increase awareness among its employees of issues
related to personal information protection.
PrivacyMark

Outline of JICS

Name of Organization:
Japan International Cooperation System (JICS)
Head Office: Shinjuku EAST Building (2F–3F), 10-5, Tomihisa-cho, Shinjuku-ku,
Tokyo 162-0067, JAPANMain Contact Information and Website:
Tel: +81-3-5369-6960
Fax: +81-3-5369-6961
E-mail: jics@jics.or.jp
URL: http://www.jics.or.jp/jics_html-e/index.html
President:
Toru Nakatani
Vice President:
Toru Kubo
Date of Establishment: April 12, 1989
Endowment:¥387 million
Number of Employees:
173 (as of September 1, 2015)

P Project Offices (18 offices in 17 countries)

Afghanistan
Pakistan
Laos
MyanmarPalestine
SenegalMali
Burkina Faso
Ghana
Benin
Nigeria
Niger

Cambodia
Ethiopia (2 offices)

Haiti

MalawiMozambique

Japan International Cooperation System
Annual Report 2015
Published November 30, 2015 (English Edition)
Compiled and published by Japan International Cooperation System
Shinjuku EAST Building (2F–3F), 10-5, Tomihisa-cho, Shinjuku-ku, Tokyo 162-0067, JAPAN
Tel: +81-3-5369-6960
http://www.jics.or.jp/jics_html-e/index.html
Editorial assistance: Five Cs, Inc.
Printed in Japan©2015 Japan International Cooperation System