2007
Japan International Cooperation System

The JICS Vision

JICS Code of Conduct

JICS is a public-service foundation working to ensure
appropriate and effective procurement of goods andservices required in developing countries, within theframework of the Japanese government's official development assistance and other support for developingcountries. JICS endeavors to carry out its operations inaccordance with the following precepts.

Based on the precepts of the JICS Vision, we pledge to act inaccordance with the ten principles shown below, with the goalof promoting higher-quality international cooperation.

JICS plays a bridging role in assistance projects
JICS maintains an impartial stance toensure fairness and transparency
JICS puts its knowledge and experience towork in assistance projects

JICS endeavors to manage its operations
appropriately and to train capable personnel

Information on JICS
Name of Organization:
Japan International Cooperation System (JICS)
Office:Shinjuku EAST Building, 10-5, Tomihisa-cho, Shinjuku-ku, Tokyo,
162-0067 JAPAN
Tel: +81-3-5369-6960 Fax: +81-3-5369-6961
E-mail: jics@jics.or.jp URL: http://www.jics.or.jp/President:
Takahisa Sasaki
Vice President:Yukihisa Sakurada
Date of Establishment:
April 12, 1989. JICS was established as a public-service foundation authorized by the Ministry of Foreign Affairs of Japan.
Endowment:
387 million yen
Number of Employees:
168 (as of October 1, 2008)
Purposes:
The purposes of the Foundation are to promote higher quality
international cooperation by cooperating in the appropriate
and efficient implementation of Japan's Official Development
Assistance (ODA) and other international cooperation programs for developing countries and territories and thus to contribute to the economic and social development of the world
as well as the enhancement of friendly international relations• We will meet our responsibilities as a public service
corporation• We will provide high-quality services• We will strictly observe laws and rules• We will exercise consideration for local conditions• We will practice information disclosure• We will manage information appropriately• We will respect human rights• We will act in a socially responsible manner• We will endeavor to preserve the environment• We will create a positive workplace atmosphere

As of October 1, 2008

Business:
The Foundation shall conduct the following business while paying due
respect to the work of private enterprises in order to accomplish the purposes described above:
1. Business which contributes to the promotion of the appropriate
and efficient implementation of grant aid programs, technical cooperation programs and loan programs which are parts of Japan's ODA;
2. Business which contributes to the promotion of the appropriate
and efficient implementation of international cooperation programs
executed by international organizations, foreign governments orother entities engaged in international cooperation activities;
3. Follow-up activities and after-care activities for such programs
mentioned above in items 1 and 2;
4. Research and studies on methods of efficient implementation ofinternational cooperation;
5. Education and support which promote international cooperation; and6. Other activities necessary to achieve the purposes of the Foundation.
Overseas Offices:
Afghanistan OfficeHouse No.579, Street No.15, Wazir Akbar Khan
Kabul City, Afghanistan
Tel: + 873-7613-25827 / Fax: + 873-7613-25828
Madagascar Office
Immeuble ARO-FIARO, 3ème étage, local No.3
Làlana Jules RANAIVO, Ampefiloha 101 Antananarivo, Madagascar
Tel: + 261-20-22-601-90 / Fax: + 261-20-22-602-09
Local project office:Indonesia, Pakistan, Vietnam, Bhutan, Bangladesh, Senegal, Niger,Ethiopia, Benin, Lesotho, Nicaragua, Peru, and Bolivia

Cover photos ｜①｜②｜③｜① Health center reconstructed by the Project for the Reconstruction of the Area Affected by the Earthquake in Yogyakarta and Central Java of Indonesia② Children in Ethiopia③ Tractors procured to Moldova by Grant Assistance for Underprivileged Farmers (2KR)

2Preface –– Meeting Wide-Ranging International Cooperation NeedsIPart Main Activities in FY2007Special Feature: New Challenges for JICS

5 New Grant Aid Assistance
9 Collaboration with International Agencies
11 The Role of JICS in ODA
Various Projects

15 Iraq –– Emergency Grant Aid
15 Indonesia, Sri Lanka, Maldives –– Support for theSumatra Earthquake and Tsunami Disaster16 Mozambique –– Grant Aid for Infectious Disease
Prevention and Treatment

16 Gambia –– Food aid (KR)17 Moldova –– Grant Assistance for Underprivileged
Farmers (2KR)

18 Ethiopia –– Cultural Grant Aid
18 Cambodia –– Grant Aid for Research
19 Afghanistan –– Emergency Grant Aid
19 Madagascar –– Non-Project Grant Aid
20 Cambodia –– Grant Aid for Conflict Prevention
and Peacebuilding

20 South Africa –– Technical Cooperation
21 Myanmar –– Effectiveness Measurement Programfor Grant Aid for Japanese NGO Projects

21 Yen Loan –– Yen Loan

22 JICS Recent Events
24 Social Activities of JICS

ContentsPart

II Description of Projects

26 Countries Targeted for JICS Projects (FY2007)
28 Revenue by Scheme (FY2007)
29 Revenue by Counterpart (FY2007)
30 Revenue by Function (FY2007)
31 Procurement Management for Grant Aid Projects(FY2007)

32 Project Results by Country in FY2007
List of Projects in FY2007
35 Grant Aid
40 Technical Cooperation
42 Loan Programs
42 Other Activities Related to International Cooperation
Reference Materials

44 Changes in Revenues and Expenditures by Fiscal Year
45 FY2007 Business Report
46 FY2007 Statement of Revenues and Expenditures
47 FY2007 Balance Sheet
48 FY2007 Statement of Net Equity Increase (Decrease)
49 FY2007 Cash flow statement
50 A Brief History of JICS
51 Executive Management/Board of Trustees
52 Organization Chart
53 The Articles of Foundation of Japan International
Cooperation System (JICS)

56 JICS2007

Preface
mentation process and strengthen
coordination among assistance programs, which consist of technicalassistance, grant aid and yen loans.
As a result, JICS faces a vastly
changed environment and since
January 2007, we have undertaken
to collect and analyze information mainly
through our Office of Management Planningand draw up proposals to improve the efficiency of implementation procedures for aid
schemes and also to develop new businesses
to broaden the scope of our activities.
Since fiscal 2006, JICS has been handlingavian flu support measures for the JapanASEAN Integration Fund (JAIF) and the World
Organisation for Animal Health (OIE). In fiscal
2007, we conducted a feasibility study, delegated by JAIF, for road network improvements in Cambodia, Laos and Vietnam(Japan-CLV). We also won the contract, jointly with the Crown Agents of the United
Kingdom, for a new United States'
Millennium Challenge Account (MCA) grant
aid project in Mongolia, and began operations for both CLV and MCA projects. JICS has
thus become involved in a wide range ofinternational cooperation projects delegatedby international bodies.
JICS works steadily on existing projects;
major projects supporting reconstruction in
the regions affected by the Indian Oceantsunami of 2004 as well as those in Iraq andin Afghanistan are coming to an end. Theexperience and know-how accumulated inimplementing those projects have come into
wide use in other projects such as grant aid
for disaster prevention and reconstruction
and grant aid for community empowerment.
Thus, we have been working wholeheartedly

Meeting Wide-Ranging
International
Cooperation Needs
The Japan International Cooperation System(JICS) was established as a public-service
foundation in April 1989 upon authorizationby the Minister for Foreign Affairs. As part ofJapan's economic cooperation activities, JICS
aims to promote high-quality international
cooperation by providing appropriate andeffective assistance in implementing bilateral
grant activities. Since its establishment, JICS
has been able to make its own modest contributions in the field, with the guidance ofthe Ministry of Foreign Affairs, the Japan
International Cooperation Agency (JICA) andothers, and with the support of various foreign government organizations and ODArelated bodies. I wish to express my sincere
appreciation for the support and cooperation these parties have extended to JICS.
In the 19 years since JICS was created, thegovernment's allocation for ODA out of thegeneral budget peaked at 1.1687 trillion yen
in FY1997 and has been declining ever since.
In FY2008, the ODA budget stood at 700.2
billion yen, down 40.1% from the peak figure,so we must now work harder to implement
efficient and effective aid within a limited
budget. The “new JICA” was born in October
1, 2008 when the former JICA and the yenloan division of the Japan Bank forInternational Cooperation (JBIC) were amalgamated into a single organization for implementing ODA. This organizational change
will help improve efficiency in the aid imple-2on existing and new projects.
Additionally, JICS serves as a procurement
agent for various aid programs by theJapanese government such as grant assistance for environment programs, food aidand underprivileged farmers, intended toalleviate problems related to global environment and climate change issues and problems in developing countries due to higher
food prices.
JICS will continue doing its best to further
efficient use of Japan's ODA and maintainour reputation as a reliable organization,
based on the JICS Vision and the JICS Code ofConduct.
This Annual Report describes JICS project
results and activities in FY2007 and I hopethat it will give you a better understanding of
our organization's work.

Takahisa Sasaki
President
Japan International Cooperation System (JICS)
October 2008