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

Annual Report 2016
Japan International Cooperation System
Year ended March 31, 2016

Japan International Cooperation System Annual Report 2016

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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 MISSION
JICS’ mission expresses the organization’ssocial 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 forfulfilling JICS’ mission.

MISSIONJICS 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.

VALUE
Impartiality, Fairness and Transpar- Maximizing the impact of the aidencyJICS will make an effort to maximize the impact
JICS maintains an impartial stance to ensure
fairness and transparency.

of the aid.

Reliability

JICS will think outside the box and challenge
to create and provide new services.

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

Creation and Challenge

JICS’ vision articulates its medium-term goals
for fulfilling its mission. Rather than being
satisfied with its current status, throughthe achievement of its vision JICS strives tobecome an organization that is trusted not
only in Japan but worldwide.

Definition of VALUE
It is important that each employee adheres
to JICS’ values as the organization strives torealize 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 withdeveloping 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
carried out 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”
Aid Agreement

Procurement

Materials andEquipment
Facilities
Services

Procurement organization

Competitiveness
Efficiency

Impartiality

Public procurementin the international cooperation
fieldEconomy

Transparency
Fairness

Why is a specialist procurement
organization necessary?
1. With regard to the acquisition of necessary goods and services, it is necessary toperform 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 theseconditions, 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.

Japan International Cooperation System Annual Report 2016

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 stability ofthe world as a player in the international cooperation field.” To achieve this goal, throughactivities in developing countries and Japan,we work daily to improve the quality of ourservices as a service provider. As stated inour VISION, JICS “aims to be the world’s best
service provider in the international cooperation field,” gaining the trust of people inJapan and around the world. We will endeavor to further deepen the knowledge, experience and know-how we have accumulated
to date, and strive to improve our capabilities
so that we can create new, quality services
that provide client satisfaction.

Profile of JICS

1A Message from the President

My name is Iichi Mishima, and I was appointed president of Japan
International Cooperation System (JICS) in September 2016. JICS
aims to win the trust of all of its stakeholders, and be a player in thedevelopment cooperation field that possesses strategic mobility.
While continuously pursuing innovation and transformation,
we are committed to working toward the strengthening of ourorganization and expansion of our operations, thereby enabling us
to provide services with even greater value-added content.

Iichi Mishima

President

The Development Cooperation Charter and JICS’ Mission

Within its Development Cooperation
Charter, the Japanese government
articulates the principle of Japan“proactively contributing to the peace,stability and prosperity of the international community as a peace-lovingnation.”
At present, the international community must address a raft of problems, including conflicts, large numbers of refugees, and terrorism. Facedwith this situation, JICS has reaffirmed
the importance of the principle articulated in the Development Cooperation Charter and our organization’s
mission to “contribute to the peaceand stability of the world as a player
in the international cooperationﬁeld.” These are strong motivations
for everyone at JICS.

Japan International Cooperation System Annual Report 2016

2015–2017 Medium-termManagement Plan

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When JICS made the transition to a
not-for-profit general incorporated
foundation in 2012, the organization
established a vision of “aiming to be
the world’s best service provider in
the international cooperation field.”
While pursuing unceasing reform in
our way of thinking, we are undertaking a range of measures and programs that will enable us to respondto changing times and changes in theenvironment. Simultaneously, we areworking to execute our operations
appropriately and efficiently while
striving to enhance JICS’ competitiveness.
In particular, under the Mediumterm Management Plan 2015–2017,
in accordance with the fundamental
policy of “carrying out steady execution of operations and making project
proposals on an ongoing basis in linewith the Development Cooperation
Charter’s basic policies and priority

issues,” JICS is pursuing the enhancement of the value-added content of
the services it provides along withthe expansion of its operations.
Coupled with this, JICS is working
to strengthen the organization’smanagement foundation and increase productivity and reliability. To
achieve these goals, we are addressing a range of issues classified under
the four themes of operations, management, organization and humanresources.

Bolstering the Organization’sStrengths in Grant Aid Projects and Enhancing Added
Value

At present, approximately 80% ofJICS’ revenue is generated throughprocurement agent operations within
grant aid programs.
Within these operations, in recent
years our operations have centeredon such areas as supporting theoverseas expansion of Japanese
small and medium-sized enterprises(SMEs) that are working in partnershipwith developing countries to realize“quality growth,” and grant aid for theeconomic and social development

programme, which contributes to thediffusion of Japanese advanced products and its systems. JICS is conducting such projects in 68 countries*. Insuch projects, one of the key tasks is
to match the needs of each recipient
country with the specialized materials
and equipment provided by Japaneseenterprises. Hence, JICS works toprovide highly effective procurement
services underpinned by its extensive
experience in carrying out detailed
materials and equipment surveys
and continuous improvements to its
procurement-method database.
Over a period of nine years from2006, JICS accumulated substantial
experience in the execution andmanagement of facility-construction
projects under the Grant Aid for Community Empowerment sub-scheme,
which contributes to human resource
development and peacebuilding—the foundations of nation buildingand growth. This experience was a
critical factor in JICS being commissioned to carry out the Project for
the Reconstruction of Flood-Affected
Schools in Myanmar. At present, JICS
is strengthening the functions of its
Myanmar project office, while
supervising local construction firms.

 Medium-term Management Plan 2015–2017: Major Themes and Issues
 Achievement of a stable management Reinforcement of core capabilities in grant
foundation
aid-related operations and increase ofadded value Improvement of operational productivity
 Expansion of loan aid-relatedoperations
 Acquisition of human resources
capable of winning in comManagement
Operations  Entry into operations related
petitive proposal situations
to international agencies
Plan Internal control and risk
management
 Review of policies forpersonnel recruitment,development and rotation

ActDo Enhancing organizationalreliability
 Strengthening of compliance, information security andproject office management
 Improvement of client satisfaction

Check
HumanOrganization
Resources

Note: Including Non-Project Grant Aid

A Message from the President

Together with the Project forElectrification of Rural Villages, which
commenced in fiscal 2014 and utilizes small-scale hydroelectric powerand solar electricity generation, weare focusing efforts on rapid project
execution. We intend to leverage theexperience gained through thesefacilities projects in grant aid projects based on Public–Private Partnerships (PPP). In the future, we will
aim to become “a procurement agent
organization that possesses bothtechnical and project management
capabilities,” as we further build ourlevel of expertise.
In 2016, the Sixth Tokyo International Conference on African Development (TICAD VI) was convened.
Through the procurement of materials
and equipment within projects that
contribute to the promotion of human security and the managementof execution of facility-construction
projects, JICS has to date built deep
cooperative relationships with thepeople of 40 countries in the Africanregion. We are particularly proud of
this record, and are committed tosustaining our efforts in this area.

Cultivating Human Resources
and Developing New Operations and Businesses

Since 2012, JICS has been involved incultivating human resources withinJapan’s loan aid program. By learning
the procurement system and audit
method used in the loan aid program,in recent years this has been an instrumental factor in JICS winning contracts for loan aid auditing operations
and long-term execution facilitation
services and evaluation and monitoring operations within technicalcooperation.

As one of JICS’ new businesses, inJune 2016 we commenced the Public
Tender Notification Service, which
supports enterprises aiming to participate in projects managed by international agencies. In the near future,
we will aim to bring to fruition furthernew businesses with even higher
value-added content.
In the area of sports, within theSPORTS FOR TOMORROW program
being promoted by the Japanese
government—which seeks to contribute to the international community
through the medium of sports—continuing on from activities implemented in fiscal 2014, JICS employees cooperated in the holding of UNDOKAI(sports days) in India and sports anddisaster prevention education eventsin Nepal. We are very keen to continue
pursuing a range of activities in thisfield.

Strengthening the Organization that Underpins JICS’OperationsIn July 2016, JICS increased the number of full-time members of the Boardof Directors from two to three. Reporting to the President are the Vice President Responsible for General Affairs
and the Vice President Responsiblefor Business Management. This newstructure aims to further strengthen
the organization and bolster its eﬃciency. This structure also provides anenhanced level of check-and-balance
between the planning and generalaﬀairs divisions and the operationaldivisions. By working consistently tostrengthen internal control and compliance as well as improve risk management functions through organizational improvements and employee
training programs, we will Current Profit by Type of ODA (FY2015) (Unit: thousands yen)
Multilateral ODA

Others
19,416...........0.7%

Cultural Grant Aid 0.04%

Loan Aid (ODA Loans)
159,646 ..... 5.8%

Other activities related to Grant Aid(studies, research, etc.) 2.6%
Program Grant Aid for Environment
and Climate Change 7.1%

Grant Aid (including studies)
2,402,935 .....88.0%
Grant Assistance for the Food
Security Project for Underprivileged Farmers (2KR) 0.9%
Food Assistance (KR) 7.2%

Bilateral ODA

Technical Cooperation
77,969 ......2.9%

Bilateral ODABilateral ODA

Grant Aid for the Economic
and Social Development
Programme (including NonProject Grant Aid) 31.4%

continue to strive for an enhanced
level of trust in our organization.
Together with the aforementioned
measures, to bolster our ability tomake project proposals, we have
newly established the Business Planning Office. The office is responsible
for planning, proposals and advice
relating to Grant Aid, Technical Cooperation, Loan Aid, and programs withinternational agencies and organizations; general coordination between
related departments and divisions;and planning of programs aimed atenhancing JICS’ market value. Information relating to the needs ofrecipient countries—gathered by
JICS staﬀ on the ground from various
operational divisions—will be usedby the Business Planning Oﬃce when
formulating speciﬁc proposals.
In the 27 years since the establishment of JICS, through its procurement
operations spanning projects inapproximately 140 countries, the organization has cultivated relationships
based on trust with its stakeholders,accumulated information relating toprocurement in each country, built up
product knowledge in a broad array offields, and accumulated the expertise
required in the public procurement
sphere. Based on such strengths, tocontribute to addressing the priority
issues stated in the Japanese Government’s Development Cooperation
Charter, JICS will strive to fully leverage its fortes of operating on thefrontline and working with agility.
This includes both project execution and the formulation of project
proposals.
In these endeavors, we look forward to your continued guidance andencouragement.

Emergency Grant Aid 1.2%
Grant Aid for Conflict Prevention
and Peacebuilding 11.1%
Grant Aid for Disaster Prevention
and Reconstruction 1.0%
Grant Aid for Community Empowerment 22.7%
Grant Aid Project for Construction 2.9%

September 2016
Iichi Mishima President
Japan International Cooperation
System (JICS)
A Message from the President

Japan International Cooperation System Annual Report 2016

Multilateral
Programs with international agencies and ODA
organizations, etc.
69,243 ....... 2.5%

From left:
Toru Kubo Vice President (Responsible for GeneralAffairs)
Kazuki Takeuchi Vice President (Responsible forBusiness Management)

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Contents

01 Profile of JICS
02 A Message from the President
04 Contents
Part 1: Principal Activities in Fiscal 201506 Special Feature : What Can JICS Do in Africa?—JICS’ Strengths and Challenges as Seen from the Project Frontline—
10 Development Cooperation and the Role of JICS in ODA
15 JICS’ Major Activities in Fiscal 201515

Grant Aid: The Project for the Reconstruction of Flood-Affected Schools

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Grant Aid: The Project for Electrification of Rural Villages

17

Grant Aid Projects under Public–Private Partnership: The Project for Reduction of Non-Revenue Water in Mayangone Township inYangon City

18

Aiming for the Growth of Developing Countries and Japanese Corporations: Grant Aid for the Economic and Social Development
Programme

20

Loan Aid (ODA Loans)

21

SPORT FOR TOMORROW Programme: Holding Sports Events in India and Nepal

22 What’s New
23 Working with Stakeholders and Expanding Operational Domains: Helping Japanese Companies Make Inroads in Developing Countries
24 JICS’ Recent Events
Part 2: Description of Projects
27 Revenue/Current Profit and Expenditure by Fiscal Year
28 Countries Targeted for JICS’ Main Projects
30 Revenue/Current Profit by Scheme and Client (FY2015)
31 Current Profit by Function (FY2015)
32 Revenue/Current Profit by Type of ODA
33 Project Results by Country in Fiscal 2015

Japan International Cooperation System Annual Report 201636 List of Projects in Fiscal 2015

436Grant Aid45

Technical Cooperation

45Loan Aid45

Business Contributing to the Promotion of the Appropriate and Efficient Implementation of International Cooperation Programs Carried Out byInternational Agencies and Organizations, Foreign Governments and Other Organizations Engaged in International Cooperation

46

Dispatch of Experts

46

Other Activities (Cooperation with Private Enterprises, etc.)

47

Other Activities Integral to Fulfilling the Objectives of the Foundation

Reference Materials
48 Fiscal 2015 Business Report
49 Fiscal 2015 Balance Sheet
50 Fiscal 2015 Statement of Net Equity Increase (Decrease)
51 Governance System
52 Organization Chart
53 The Articles of Incorporation of Japan International Cooperation System
56 ComplianceContentsNote Regarding Names of Grant Aid
Sub-schemes in this Annual Report
Grant Aid sub-scheme names (classifications) usedin this Annual Report, such as Non-Project Grant Aidand Grant Aid for Community Empowerment, werediscontinued as of March 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 System,”depending on the nature of the project in question.
Within these classifications, JICS is mainly involved in“Grant Aid Projects with Procurement Agent System.”The execution of some of the projects cited inthis Annual Report had been decided in or prior to
March 2015. Consequently, we ask readers to beaware that, for convenience, those projects are citedand explained using the former sub-scheme names.