AnnualReport
2010

Real Aid in Action
Japan International Cooperation SystemAt a Glance
Profile of JICS
Japan International Cooperation System (JICS) is the only not-for-profit foundation in Japan specializing in procurement operations
within the field of international cooperation. JICS’ activities primarily focus on aid project supervision 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 for goods and services 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 (i.e.,transportation, design, construction, etc.) needed in local areas where cooperation projects are being implemented.
JICS aims to be a leader in procurement-related operations, with capabilities for executing a full spectrum of international cooperation needs. JICS has set its sights for the future on expanding operations on behalf of a broad range of international agencies and organizations and is working to build up its base of expertise and knowledge while focusing on the development of its human resources.
P Revenue by Client (FY2010)

P Revenue by Type of ODA (FY2010) (Unit: million yen)
Multilateral ODA

 Others ............ 1............. 0.03%

 Programs with international agencies andorganizations, etc.
...............102............. 3.2%
Other activities related to grant aid(studies, research, etc.)
0.3%
Program grant aid for environmentand climate change 16.5%
Grant aid forcommunity empowerment
28.2%

Grant assistance for the foodsecurity project forunderprivileged farmers(2KR) 5.5%
Grant assistance forthe food aid project(KR) 7.7%
Cultural grant aid
3.3%

MultilateralODAInternational agencies
and organizations,etc. 3.2%

Ministry of Foreign
Affairs 0.2%

JapanInternationalCooperation
Agency (JICA)
11.5%

Recipient governments 84.7%

Bilateral ODA

Bilateral ODA

Non-project grant aid
18.2%

 Grant aid............ 2,816........... 88.1%

Emergency grant aid 1.4%
Grant aid for conflict prevention
and peacebuilding 5.6%

 Technical cooperation...............188............. 5.9%
 Loan aid (ODA loan).................90............. 2.8%

Others 0.3%

Grant aid for disaster prevention
and reconstruction 1.2%

The JICS Vision
JICS is a public-service foundation working to ensure the appropriate and effective procurement of goods and services required indeveloping countries, within the framework of the Japanese government’s official development assistance and other support fordeveloping countries. JICS endeavors to carry out its operations in accordance with the following precepts.
JICS plays a bridging rolein assistance projects

JICS puts its knowledge
and experience to workin assistance projects

JICS maintains an impartial stanceto ensure fairness and transparency

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

Outline of JICSName of Organization:
Japan International Cooperation System (JICS)
Head Office: Shinjuku EAST Building, 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
Palestine
Vice President:
Nigeria
Toshiyuki Ezuka
SenegalMali
Date of Establishment:
Burkina Faso
 April 12, 1989 (Established as aGhana
public-service foundation authorized
Sudanby the Minister of Foreign Affairs)Uganda
MozambiqueEndowment:
Lesotho¥387 million
Number of Employees:
198 (as of September 1, 2011)

P Project Offices (25 offices)

Afghanistan
Pakistan
Nepal
Myanmar
LaosIndonesia
Djibouti
Ethiopia
Kenya
Madagascar
Malawi
Swaziland

Japan International Cooperation System Annual Report 2010

Guatemala
Haiti
Peru

onCntets

2

A Message from the President

346913
13

Part 1

Special Feature: Grant Aid for Community Empowerment

2224

JICS Recent Events
Social Activities of JICS

Principal Activities in FY2010

Highlights of Operations in FY2010

The Role of JICS in ODA
JICS’ Major Activities in FY2010

Managing Overall Project Execution: Procurement Agent (Management) Services			  Grant Aid For Community Empowerment (Ethiopia)			  [Project Name: The Project for Construction of Primary Schools in Oromia Region, Ethiopia]
14		  Grant Aid For Community Empowerment (Palestine)			  [Project Name: The Project for Support for the Public Activities of the Communities in Jordan Valley, Palestine]
16		  Projects for International Agencies and Organizations			  [Program Name: Japan’s Program for Improving Efficiency of Logistics and Distribution of the “East-West Economic Corridor” and the “Southern Economic Corridor”]
18		  Program Grant Aid for Environment and Climate Change (Sri Lanka)			  [Project Name: The Project for Introduction of Clean Energy by Solar Electricity Generation System]
20
Support Services for Procurement Procedures			  Technical Cooperation-related Operations
21		  Loan Aid-related Operations

25 Part 2 Description of Projects
26 Countries Targeted for JICS Main Projects
28 Revenue by Scheme and Client
29 Revenue by Function
30 Revenue by Type of ODA (FY1989–FY2010)
31 Revenues and Expenditures by Fiscal Year
32 Project Results by Country in FY2010
35 List of Projects in FY2010
35	  Grant Aid42	  Technical Cooperation
43	  Loan Programs
43	 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
44	  Follow-up and After-care Activities

44	  Research and Studies on Methods to Efficiently Implement International Cooperation
44	  Education and Support Promoting International Cooperation
44	  Other Activities Necessary to Achieve the Purposes of the Foundation
45

Reference Materials

45464748
49
50
51
52
5356

FY2010 Business Report
FY2010 Statement of Revenues and Expenditures
FY2010 Balance SheetFY2010 Statement of Net Equity Increase (Decrease)
FY2010 Cash Flow Statement
A Brief History of JICS
Board of Directors /Board of Trustees
Organization Chart
The Articles of Foundation of Japan International Cooperation System (JICS)
ComplianceJapan International Cooperation System Annual Report 20101

A Message from the President

A Message from the President

2First of all, I wish to convey my deepest
sympathies to the victims of the Great
East Japan Earthquake and all others
affected by this disaster. I sincerely pray
for the rapidest possible reconstruction
and recovery in the disaster-affectedareas. I also wish to express my heartfelt
respect to everyone involved in projects
and activities that aim to bring about
this recovery.
Underpinned by the support andcooperation of a large number ofstakeholders in Japan and overseas,
Japan International Cooperation System(JICS) steadily carried out its operations
in FY2010, ended March 31, 2011. An
important milestone during FY2010 was
the organizational decision by JICS toseek approval for transition to the statusof a general incorporated foundation.
This decision is part of JICS’ planned
course of action in response to reforms
being implemented in Japan’s publicinterest corporation sector.
Originally, JICS’ policy for transitioning to a new status envisaged seeking
approval to become a “public-interestincorporated foundation” based on theposition JICS occupies and the characteristics of its operations. Hence, wecommenced various research and preparatory projects based on such a scenario. However, after embarking on thisresearch and preparations, it became
apparent that there were several major
issues related to the transition to publicinterest incorporated foundation status.
Furthermore, in recent times there has
been vigorous debate within Japanesesociety concerning such matters as thepurpose of institutions involved in ODA,
and basis on which such institutions
exist and operate, thereby highlighting the potential for significant futurechanges in JICS’ operating environment.
Based on recognition of this situation,
all JICS employees participated in efforts to build a consensus regarding
the direction in which the organization should proceed. After substantial
debate and consideration, from theperspective of ensuring the continuingsurvival of the organization, we arrived
at the conclusion that the most appropriate course of action would be topursue a transition to a not-for-profit
general incorporated foundation. At
present, JICS is pursuing various formal
procedures as it aims to make this transition in April 2012.
Further, with regard to how weare handling the transition to a general incorporated foundation and ourresponse to an increasingly severe
operating environment, we believe that
continued management of the organization under the institutional arrangements used to date is likely to be difficult. Specific areas of concern include
medium-term planning, organizational
and internal control systems, and thehuman resource system. For this reason,
we have established a task force, which
is currently undertaking a thoroughexamination of a range of issues thatJICS must address in the near future.
As JICS takes on these tasks, based onreflections on our past performance, wewant to avoid becoming fixated on any
particular output or the system-building
process itself, but rather we will work
to steadily implement the measuresrequired. We plan to then examine theresults of our efforts and make further
improvements and refinements toensure that we are able to build an
optimal structure for JICS.
With regard to JICS’ operations, wehave moved from dealing mainly withprojects focused on the procurementof materials and equipment, including
Non-project Grant Aid, Grant Assistancefor the Food Security Project for Underprivileged Farmers (2KR) and Grant
Assistance for the Food Aid Project (KR),to projects with a longer-term impact,
including Grant Aid for Community
Empowerment and Program Grant Aid
for Environment and Climate Change.
The latter types of projects, which
encompass the construction of facilities, now account for a large proportionof JICS operations. If one looks at ouroperations by project type, the increasein Program grant aid for environmentand climate change stands out in particular. In addition to projects focusing
on adaptation to and mitigation of theeffects of climate change—including
natural disasters and deforestation—
JICS is also involved in projects that aim
to provide communities with access toclean energy through the installationof solar power generation facilities andother infrastructure. For such projects,
JICS carries out operations as a procurement agent, which includes conducting
preliminary studies—an area that was
Japan International Cooperation System Annual Report 2010previously outside JICS’ role in providing
procurement agent services.
In the area of operations commissioned by international agencies andorganizations, JICS is steadily implementing operations relating to ongoingprojects and is also working to expand
such operations by gathering information from and exchanging opinionswith international institutions.
On June 27, 2011, the International
Cooperation Bureau of the Ministry ofForeign Affairs of Japan released the“FY2011 Priority Policy Issues for International Cooperation.” In this document,
the Government of Japan clearly articulates that its top-priority task for international cooperation in FY2011 is to utilize
ODA as a means of reconstruction ofareas that sustained enormous damage
from the Great East Japan Earthquake,and that reconstruction shall be carriedout in a future-oriented, open manner.
I believe that JICS’ procurement
operations can play a significant rolein further enhancing the efficiency ofODA, and that we can contribute toJapan’s national interests. To achieve
recognition as one of the world’s
highest-quality service providers in theinternational cooperation sphere, JICS
will work to address a broad array of issues and changes in an appropriate andexpeditious manner. We will also focus
on steadily carrying out our operations
and studying effective means to bolster
JICS’ standing as a trusted organization,
both in Japan and abroad. In these endeavors, we look forward to your continued guidance and encouragement.

Toru Nakatani
President
Japan International Cooperation System (JICS)