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

Annual Report 2015
Japan International Cooperation System
Year ended March 31, 2015

Mission, Vision and Value (MVV)/Code of Conduct

Mission, Vision and Value (MVV)
To coincide with its transition to the status of a general incorporated foundation, Japan International Cooperation System (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.

Definition of MISSIONMISSION

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.

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

VISION

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

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.

JICS’ 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.

Reliability

Creation and Challenge

Definition of VALUE

VALUE

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.

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

JICS Code of Conduct
Based on the precepts of the JICS Mission, Vision and Value, we pledge to act in accordance with the ten principles shown below,
with the goal of promoting higher-quality international cooperation.
1. Behaving in accordance with our responsibilities
as a public service corporation
We will act responsibly based on awareness of our role as an organization involved in international cooperation, to meet society’s expectations toward us as a public-service organization.
2. Providing high-quality services
We will endeavor to provide high-quality services in a timely and effective manner that are valuable in the implementation of international
cooperation and which ensure the satisfaction and trust of stakeholders.
3. Strictly observing laws and rules
We will strictly observe all relevant laws, internal rules, societal norms
and international rules. Furthermore, we will act according to social
common sense and will not engage in inappropriate conduct. We willreport to or consult the responsible person specified in the rule upon
discovering or committing any violation of laws, rules, etc.
4. Exercising due consideration
for local conditions
In our overseas activities, we will observe local laws and exercise due
consideration for local conditions, including traditions, customs, culture
and the environment.
5. Practicing information disclosure
To ensure greater transparency in the management of our operations,
we will maintain a proactive stance toward information disclosure
covering such areas as details of our projects and our administrative
situation.

6. Managing information appropriately
We will strictly manage all information in our possession, including
personal information, through compliance with laws and relevant rules
concerning the protection of personal information, the implementation of information security measures and strict adherence to confidentiality obligations.
7. Respecting human rights
We will respect human rights in all circumstances and will not discriminate on the basis of sex, age, nationality, race, ethnicity, beliefs, religion,social status or physical disability.
8. Acting resolutely in responseto anti-social groups
We will adopt a resolute stance toward anti-social groups or organizations that threaten social order or safety.
9. Working to protect the environment
Based on awareness that addressing environmental problems is an
important part of our mission, we will undertake proactive efforts on
our own initiative that contribute to environmental protection.
10. Creating a safe and satisfying
workplace environment
To maintain orderly workplaces and enable executives and employees
to work to the best of their abilities, we will strive to build safe and satisfying workplaces. To ensure the safety of executives and employees,
both in Japan and abroad, we will develop a crisis management systemand strive to achieve safe management at all times.

Profile of JICS

Japan International Cooperation System (JICS) is the first foundation in Japan to specialize in procurement operations within thefield 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 programs with
developing countries.

“Procurement” refers to the acquisition of and payment forgoods and services—such as transportation, design and construction—necessary to achieve a specific objective. Since its establishment in 1989, JICS has appropriately and effectively carriedout the selection and procurement of goods and services needed
in local areas where cooperation projects are being implemented.

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

Materials andEquipment
Facilities
Services

Procurement organization

EconomyTransparency
Fairness

As articulated in JICS’ mission, which is partof the organization’s “Mission, Vision andValue” (MVV), each employee is committed
to “contributing to the peace and stabilityof the world as a player in the international cooperation field.” To achieve this goal,
through activities in developing countries
and Japan, we work daily to improve thequality of our services as a service provider. As stated in our VISION, JICS “aims tobe the world’s best service provider in theinternational cooperation field,” gaining
the trust of people in Japan and aroundthe world. We will endeavor to further
deepen the knowledge, experience andknow-how we have accumulated to date,and strive to improve our capabilities sothat we can create new, quality services
that provide client satisfaction.

Impartiality

01
Profile of JICS

Public procurementin the international cooperationfield

1. With regard to the acquisition of necessary goods and services, it is necessary to
perform a variety of technical and specialized operations to ensure that quality,
economic performance and appropriate
timing are maintained. These include rigorous and complex procedures, preparation of technical specifications and otherprocurement-related documentation,
execution of tenders and evaluationof bids, management of aid funds andother operations, all of which is difficult
to fully handle.
2. Procurement operations for ODA programs—which are ultimately paid for by
Japanese taxpayers—demand impartiality, fairness, competitiveness and transparency. To assure the fulfillment of these
conditions, it is necessary to have anorganization that will manage aid funds
on the recipient-country government’s
behalf and carry out public procurement,
including tender procedures.

Annual Report 2015

Competitiveness
Efficiency

Why is a specialist procurement
organization necessary?

Japan International Cooperation System

Aid Agreement

A Message from the President—Contributing to the realization of the objectives of the Japanese
government’s Development Cooperation Charter: “For peace, prosperity
and a better future for everyone”—
JICS will progress from a player in the execution of ODA
to a player in the development cooperation field

Japan International Cooperation System Annual Report 2015

Formulation of JICS’ Next Medium-termManagement Plan

A Message from the President

02

In April 2012, when JICS made the transition to a not-for-profit
general incorporated foundation, the organization embarked on
its Medium-term Operational Action Plan 2012–2014. The plan
was prepared based on JICS’ VISION of “aiming to be the world’s
best service provider in the international cooperation field,” andencompassed the following four themes:
1. Seeking new business which utilizes JICS’ know-how
2. Developing new business
3. Recruiting and nurturing human resources
4. Strengthening management control (strengthening revenue and expense management, project management andrisk management).
Over this period, we pursued the strengthening of JICS’organization, and the plan reached its final year in FY2014. In thatyear, the Japanese government formulated general principles forthe Development Cooperation Charter. Against this backdrop,
JICS worked on the task of discussing and preparing its follow-on
plan, Medium-term Management Plan 2015–2017, which articulates the future shape that the organization will strive to achieve.

Steady Execution of JICS’ Core Operations and Pursuitof New Opportunities

In grant aid-related procurement agent services, which accountfor approximately 90% of JICS’ operating revenue, based on morethan 20 years of experience, information and accumulated data,
we respond to client needs as they arise and work to steadily
execute projects while enhancing the level of value added. In
2014, the Ebola hemorrhagic fever epidemic struck many countries, centering on the West Africa region. During that time, as the
procurement agent for emergency grant aid, JICS gathered information in the affected countries despite restrictions on travel tothe region by Japanese citizens, and delivered protective equipment and other items to countries in need. Meanwhile, with theaim of simultaneously promoting development in developing
countries and the overseas advancement of Japanese enterprises, JICS continues to carry out the procurement of such items as
small and medium-sized enterprises (SME)-produced products,
medical and healthcare equipment, and products manufactured
in areas affected by the Great East Japan Earthquake. These
categories are being specifically promoted by the Japanese
government.
By winning trust based on the steady execution of projects,
we were successful in receiving contracts for projects involving
service operations and management components. Such projects
are a new initiative in the grant aid field. These are to be used of
the concept of Public–Private Partnerships (PPP)—a new format
for our operations—and require us to further enhance our capabilities as we embrace a range of changes.
In the loan aid field, JICS has been commissioned by the Japan
International Cooperation Agency (JICA)* since FY2004 to carryout basic screening of the content of procurement-related documentation submitted by recipient-country governments to confirm whether or not such documentation complies with the loan
program guidelines. JICS employees have accumulated frontline
skills through the execution of grant aid procurement agent operations, and these employees have gone on to acquire a robust
knowledge of loan aid program guidelines. This has contributed
to JICS’ winning contracts in such areas as Ex-Post Procurement
Audit and support for procurement by governments of loan aid
recipient-countries and at the loan execution stage.
* Contracted with the former Japan Bank for International Cooperation (JBIC) until
September 2008

Creating New Value through the Development of
New Business

In July 2013, we established the New Business Development
Office as part of our efforts to take up challenges in international
cooperation fields outside of ODA. In addition to building structures necessary for new business development, we carried out
specific approaches.
In the Japanese government’s SPORT FOR TOMORROW program, which seeks to contribute to the international community
through sports, JICS employees cooperated in a trial program
held in Malawi. This program involves the organization of UNDOKAI (sports days), which is a familiar part of Japan’s recreational
culture and a core event in the calendar of local communities.
Underpinned by our experience in research and procurementin the sports field within Cultural Grant Aid, we believe that thisachievement reflects our efforts to develop business from a newperspective.

Organizational Strengthening to Bolster Reliability
Supports JICS’ Operations

We are continuing our efforts related to organizational structures
and training programs in such areas as the development of human resources capable of producing high value-added service,strengthening of internal controls and compliance systems, andenhancement of risk management capabilities.
In November 2014, JICS undertook registration as a First class
Registered Architects Office in Japan. Within our experiencein procurement agent operations in the construction field, bybuilding up further expertise we aim to become a procurement
organization that possesses strong technical capabilities.

Progressing as a Player in Development Cooperation

In February 2015, the Japanese Cabinet formally adopted the
new Development Cooperation Charter, which replaces the
Official Development Assistance Charter (ODA Charter) general principles utilized to date. Through projects in such areas
as geothermal energy development, small-scale hydroelectric
generation and disaster prevention, JICS is working to raise its
responsiveness to global-scale issues. Simultaneously, we arecollaborating with a broad array of stakeholders as an organization with a wide-range of knowledge of the practical frontline ofinternational cooperation. Hence, we are determined to provide
service execution and proposals that will contribute to the aforementioned Development Cooperation Charter general policy
principles. In these endeavors, we look forward to your guidanceand encouragement.
November 2015

Toru Nakatani
President
Japan International Cooperation System (JICS)

Progress on the Medium-term Plan and the Development Cooperation Charter

L Medium-term Operational Action Plan 2012–2014
Main Achievements
Theme

2012

2013

2014

1. Seeking new business which utilizes JICS’ know-how
O Won seven contracts through competitive process in grant aid and technicalcooperation (including a grant aid project
involving service operations and management components which introduces theconcept of PPP)O Loan Aid: Actively participated in competitive process; won six contracts
O Handled emergency grant aid-related operations (Ebola hemorrhagic fever countermeasures), undertook measures in a new
field (small-scale hydroelectric generation)
O Expanded non-project grant aid tied toJapanese products (disaster prevention,equipment produced in a local region)

2. Developing new businessO Established the New Business Development Office
O Undertook new business developmenttasks
O Won contracts through competitive process (two SME assistance-related studies,dispatch of personnel for geothermal
power development project)

O Won five contracts through competitive
process (including medical waste disposal, water purification and waste disposal
projects)
O Participated in SPORT FOR TOMORROW
programO Reviewed new business development
activities and adjusted their procedures

3. Recruiting and nurturing human resources
4. Strengthening management control (strengthening revenue and expense management, project management and risk management)
O Introduced an internal certification system O Dispatched staff to international agencies
for project managers(Asian Development Bank, United Nations
O Improved the utilization of the Risk-Control
Development Programme)
Matrix (RCM)O Established Compliance and Risk ManageO Held training for information security andment Officesafety management
O Held training on managerial accounting
O Prepared policies for Business Continuity
O Conducted training program for internal
Plan (BCP)
audit staff relating to protection of personO Held training on managerial accounting
al information
O Conducted training in Japan for local
in-country coordinators

L Medium-term Management Plan 2015–2017
Development Cooperation Charter: Basic Policies and Priority Issues
Basic Policies

Prioritiy Issues

O Contributing to peace and prosperity through cooperation for
non-military purposes
O Promoting human security
O Cooperation aimed at self-reliant development through assistancefor self-help efforts as well as dialogue and collaboration based onJapan’s experience and expertiseO “Quality growth” and poverty eradication through such growth
O Sharing universal values and realizing a peaceful and secure society
O Building a sustainable and resilient international community throughefforts to address global challenges

In accordance with the Development Cooperation Charter,achieve tangible results and continue to make project
proposals through the steady execution of operations

Major Themes and Issues
O Achievement of a stable management foundation
O Improvement of operational productivity
O Acquisition of human resources capable of winning incompetitive proposal situations
O Internal control and risk management

Management

Plan
Act

O Review of policies for personnel recruitment, development and rotation

Human
Resources

O Reinforcement of core capabilities in grant aid-related operations
and increase of added-value
O Expansion of loan aid-related operations
O Enhancement of operations related to international
Operations
agencies

Do
Check

Organization

O Enhancing the organization’s reliability
O Strengthening of compliance, information security andproject office management
O Improvement of client satisfaction

03
Progress on the Medium-Term Plan and the Development Cooperation Charter

O Formulated long-term human resources
training planO Prepared human resources roadmap
O Formulated internal risk management
regulations
O Held conferences and training sessions
aimed at improving budget control

Annual Report 2015O Held an internal business proposal competition for new business development
projects
O Total of 140 internal business proposals
submitted to the database of new business development projects
O Established a management system forconflicts of interest

Japan International Cooperation System

O Won nominated procurement agent status O Won four contracts through competitive
through competitive process (non-projectprocess (including one loan aid project)
grant aid in six regions, grant assistance for O H
 andled emergency grant aid-related
the food aid project)
operations (project for Syrian refugees)
O Won one contract through competitiveOC ontinued efforts to enhance the quality
process (grant aid)of operations
O E xpansion of non-project grant aid tied
to Japanese products (assistance fordisaster-affected regions, SME products,
medical equipment, next-generation
automobiles)
O Took measures to enhance the quality ofoperations (standardization of operational
documentation, sharing of case studies)Contents
01

Profile of JICS
A Message from the President

02	
Contributing to the realization of the objectives of the Japanese government’s Development
Cooperation Charter: “For peace, prosperity and a better future for everyone”

03

Japan International Cooperation System Annual Report 201504

Progress on the Medium-term Plan and the Development Cooperation Charter
L Medium-term Operational Action Plan 2012–2014

L Medium-term Management Plan 2015–2017

Contents

Special In Contributing to Japan’s Economic Cooperation	
Feature06
with Myanmar, JICS is Further Demonstrating Its

Capabilities as a Service Provider
09
Part 1
Principal
Activities
in FY2014

Contents

04

Part 2
Description of
ProjectsD evelopment Cooperationand the Role of JICS in ODA

JICS’ Major Activities in FY2014

13
14
15
16
17
18
20
21
23

New Movements in Non-Project Grant Aid
Non-Project Grant Aid for Provision of Japanese SME’s Products (Dominican Republic)
Emergency Grant Aid (Hashemite Kingdom of Jordan)
The Project to Implement Emergency Measures in Response to the Ebola Virus Disease Outbreak (Guinea and Liberia)
Grant Aid for Community Empowerment: The 5th Project for Construction of Primary Schools (Republic of Benin)
Loan Aid-related Operations (ODA Loans)(Primary Checks, Ex-Post Procurement Audits, Dispatch of Experts, Geothermal-related Activities)
UNDOKAI (Sports Days) as Part of the SPORT FOR TOMORROW Programme in Malawi and Guatemala

Project Office Introduction
JICS Recent Events

26
Countries Targeted for JICS’ Main Projects
28
Revenue/Current Profit by Scheme and Client (FY2014)29
Current Profit by Function (FY2014)30
Revenue/Current Profit by Type of ODA (FY1989–2014)31
Revenue/Current Profit and Expenditure by Fiscal Year
32
Project Results by Country in FY2014
35
List of Projects in FY2014
35	  Grant Aid
44	  Technical Cooperation
44	  Loan Aid
45	 Business Contributing to the Promotion of the Appropriate and Efficient Implementation of International

Cooperation Programs Carried Out by International Agencies and Organizations, Foreign Governments andOther Organizations Engaged in International Cooperation
45	  Dispatch of Experts
45	  Other Activities (Cooperation with Private Enterprises, etc.)46	 Other Activities Necessary to Achieve the Purposes of the Foundation

47
48
49
Reference 50
Materials 51
52
53
56

FY2014 Business Report
FY2014 Balance SheetFY2014 Statement of Net Equity Increase (Decrease)
A Brief History of JICS
Board of Directors/Board of Trustees
Organization Chart
The Articles of Incorporation of Japan International Cooperation System (JICS)
Compliance

Note Regarding Names of Grant Aid Sub-schemes in this Annual Report

Grant Aid sub-scheme names (classifications) used in this Annual Report, such as Non-Project Grant Aid and Grant Aid for Community Empowerment, were discontinued as ofMarch 2015. From April 2015 onward, schemes for which execution has been decided are classified by procurement method, such as “Procurement Method for Facilities, Materials
and Equipment” and “Procurement Agent Method,” depending on the nature of the project in question. Within these classifications, JICS is mainly involved in “Procurement Agent
Method” projects.
The execution of most of the projects cited in this Annual Report had been decided in or prior to March 2015. Consequently, we ask readers to be aware that, for convenience,
those projects are cited and explained using the former sub-scheme names.