Annual Report 2018
Japan International Cooperation System
Year ended March 31, 2018

R e a l A i d i n A c ti o nProfile of JICS
Japan International Cooperation System (JICS) is the first foundation in Japan to specialize in procurement operations within
the field of international cooperation. JICS’ activities primarily
focus on aid project-related procurement and supervision
operations within the Japanese government’s Official Development Assistance (ODA) programs and other cooperation
programs with developing countries.
Why is a specialist procurement organization necessary?
Procurement using ODA funds—which are sourced from taxes
paid by Japanese citizens—must be carried out economically,in a timely manner and to the required level of quality. At thesame time, it is imperative that the procurement process beimpartial, fair, competitive and transparent. To achieve theseobjectives, purchases of materials, equipment, facilities andservices need to be conducted according to public procurement rules through a tender process. Furthermore, aid funds
must be managed appropriately.
To meet these requirements, JICS carries out these procedures as the procurement agent of the recipient-country government. A procurement agent possesses expert knowledge
and experience relating to public procurement, materials andequipment, and other relevant aspects.

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

ODA

1999–2003
Expansion Phase

1994–1998
Growth Phase A Brief History of JICS

1989–1993
Initial Phase

Procurement

 Expansion of procurement consulting services
and procurement agent services

 Expansion of procurement consulting services
 Diversification of procurement agent services
through reconstruction assistance1989 Established as an incorporatedfoundation
 Technical Cooperation-related services
 Grant aid-related consulting services Procurement agent services within Japan’s
grant aid programme

1989 Began compiling specifications on
Technical Cooperation and studies of grant
aid projects for the increase of food production
1990 Began conducting follow-up studies
for grant aid projects
1993 Began procurement agent services for
Non-Project Grant Aid

1997 Began services for grant aid projects forchild health1998 Began consulting services for Grant
Aid for the increase of food production andservices for Emergency Grant Aid projects
From 1998 Assistance to Indonesia during
the Asian currency crisis: Procurement ofpharmaceuticals and medical equipment,
and maritime transportation of government
rice through Emergency Grant Aid

2002 Began services for grant aid forresearch assistance projects and consulting
services for Grant Assistance for the Food Aidproject2003 Began services for Grant Aid for Conflict
Prevention and Peacebuilding projects
From 2002 Road construction, etc., in
Afghanistan through Emergency Grant Aidand Non-Project Grant Aid
From 2003 Reducing small arms inCambodia through Grant Aid for Conflict
Prevention and Peacebuilding

From 1993 Procurement of equipment for
Mongolia under Non-Project Grant Aid

Procurement of Goods

Commencing Project Execution Supervision andManagement Services in Construction Projects

Mission, Vision and Values (MVV)/Contents
As articulated in JICS’ MVV, each employee works tocontribute to the peace and stability of the international community. To achieve this goal, we strive
to improve the quality of our services as a service
provider through activities in developing countriesand Japan.

Materials and Equipment

JICS Mission, Vision and Values (MVV)MISSION

Facilities

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

ServicesVISIONJICS aims to be the world’s best service provider in
the international cooperation field.

2004–2011
Transitional Phase Increase in project management ofconstruction as part of procurement
agent services
 Commencement of services related toLoan Aid and international organizations and agencies

2012–2017
Reform Phase2012 Transited to a not-for-profit,
general incorporated foundation
 Strengthened competitiveness andimplemented strategies to further
develop existing businesses
 Developed new businesses targeting
Public–Private Partnerships (PPP) andthe private sector

VALUES

Impartiality, Fairness and Transparency
JICS will maintain an impartial stance to ensure
fairness and transparency.
Reliability
JICS will respect local input and build trust with itsclients.
Maximizing the Impact of Aid
JICS will focus its efforts on maximizing the impactof aid.
Creation and Challenge
JICS will be unrestricted by conventional ideas, andtake up the challenge of creating and providing newservices.

Contents
01 JICS Mission, Vision and Values (MVV)/Contents
02 A Message from the President
2004 Began services for primary
checks of Loan Aid procurementrelated documentation
2006 Began procurement agent
services for projects related to international organizations and agencies, andservices for Grant Aid for CommunityEmpowerment
2009 Began services for Program
Grant Aid for Environment and Climate
ChangeDeveloping Management Servicesin Construction Projects

From 2015 Project for Reduction ofNon-Revenue Water in Yangon City,Myanmar, through Grant Aid Project
under Public–Private Partnership
From 2016 Project for the Reconstruction of Flood-Affected Schools inMyanmar, through Grant Aid Project
for Construction

Principal Activities in Fiscal 201703 Development Cooperation and the Role of JICS in ODA
04 Special Feature
06 JICS’ Sphere of Involvement in ODA-Related Programs
09 JICS’ Major Activities in Fiscal 201712 Ongoing Operational Domain Expansion
Description of Projects
13 Current Profit by Scheme and Client
14 Countries Targeted for JICS’ Main Projects
16 Project Results by Country
18 List of Projects in Fiscal 2017
22 JICS’ CSR Work
Reference Materials
23 Fiscal 2017 Business Report
24 Fiscal 2017 Balance Sheet
25 Fiscal 2017 Statement of Net Equity Increase (Decrease)
26 Governance System
27 Organization Chart
28 Compliance

Launching Management Services
in Project under PPP

29 Outline of JICS
Mission, Vision and Values (MVV)/Contents

Japan International Cooperation System Annual Report 2018

From 2004 Procurement of portableelectrical transformers and water treatment equipment, etc., under Emergency Grant Aid as part of reconstruction
assistance in Iraq
From 2005 Sea wall reconstruction,
hospital construction, bridge construction, etc., under Non-Project Grant Aidas part of assistance in dealing withdamage from the 2004 Indian Ocean
earthquake and tsunami
From 2006 Assistance for measuresby the ASEAN Secretariat and theWorld Organization for Animal Healthto combat an avian influenza epidemic

2015 Won a new contract for a Grant
Aid Project under Public–PrivatePartnership2016 Won a new contract for a Grant
Aid Project for Construction

1

A Message from the President

The field of development cooperation is characterized by a rapidly changing
environment. We see change as an opportunity for growth, and aim to further
build on our existing strengths while broadening the scope of our operations.
As a player in the development cooperation field, we contribute to peace andstability in the international community.
Development Cooperation andJICS’ Core Procurement Agent Services

Within the objectives of its development cooperation
program, the Japanese government works to address
global-scale issues as part of efforts toward achieving theUnited Nations Sustainable Development Goals (SDGs),and aims to generate “quality growth” both in developing
countries and Japan, based on partnerships with developing countries. JICS’ core operations—procurement
agent services undertaken as part of Japan’s grant aid
programme—have to date built a track record spanning
122 countries. At present, JICS’ operations are centeredon the execution of equipment projects covering 77
countries, and these projects are linked to support foroverseas business development by Japanese companies,
reflecting one of the priority policies for development
cooperation pursued by the Japanese government. The
procured equipment includes products manufactured
by Japanese small and medium-sized enterprises (SMEs),
medical equipment, disaster reduction equipment, andequipment manufactured in local regions in Japan. JICS
prepares proposals and carries out projects that respond to
the diverse needs of recipient countries, and in particularcountries that have small populations and are vulnerable
to natural disasters, such as island nations in the Caribbeanand Oceania regions. Such projects aim to address common problems faced by these countries, while realizing
effective and efficient procurement based on information
accumulated by JICS regarding materials and equipment
and the recipient countries and regions.

Japan International Cooperation System Annual Report 2018

Expanding JICS’ Scope of Operations

2In the Project for Reduction of Non-Revenue Water inMayangone Township in Yangon City, a Grant Aid Project
under Public–Private Partnership (PPP) in which JICS isutilizing its experience in providing procurement agent
services within facility construction projects, JICS has introduced management innovations in order to respond toexpectations by stakeholders for rapid progress. As a result,construction work has begun, making the project the firstin this grant aid scheme to move into the construction
phase.
In operations related to Loan Aid and Technical Cooperation, JICS has taken up the challenge of participating in
the competitive process for contracts. In primary checksof procurement-related documents prepared by borrower
countries in the Loan Aid program, JICS has been appointed to manage these operations on a worldwide basis forfiscal 2017 through fiscal 2019. While utilizing our database, we are striving to enhance operational efficiency as
we fulfill this work.
In PPP-related operations, JICS is collaborating withconsultants to submit proposals for contracts in such areas
as feasibility surveys and verification surveys with the private sector for disseminating Japanese technology for theJapan International Cooperation Agency (JICA), the Japan
External Trade Organization (JETRO) and other agencies.
However, with regard to submitting independent contract
proposals and targeting high-quality projects, we continue
to work toward this goal with a view to developing theseoperations into a new business for JICS.

A Message from the President

Reorganization That Leverages JICS’ Regional
Expertise and Technical Strengths

In JICS’ medium-term management plan 2015–2017, weset a goal of enhancing the productivity of our operations and the reliability of our organization, and reviewed
progress in reaching this goal. As a result, in June 2018,
for procurement agent services we implemented a reorganization that allocates divisional responsibilities basedon countries and regions, thereby moving away from theprevious method of organizational classifications based on
procurement items. Furthermore, we have created a new
Technical Support Division, which draws together personnel who possess technical expertise. In medium-term
management plan 2018–2020, we are aiming to take fulladvantage of organizational changes and further demonstrate the frontline capabilities and responsiveness of ourstaff, who have strengths vis-à-vis countries and regions.
While identifying the needs of partner countries, we will
strive to create plans and proposals covering multiple
projects as we work toward the effective and efficient
execution of Japan’s ODA.
All of us at JICS possess an enthusiastic desire to contributeto the well-being of developing countries, and we diligently work to improve our skills and knowledge on a daily
basis as we strive to provide high-value-added services.
August 2018

Toru KuboPresident
Japan International Cooperation System (JICS)