tively, including efforts to set up assistance programs that coordinate financial assistance, technical cooperation (including the dispatch of experts and acceptance of trainees), and other types of assistance. $ ^{21} $ Implementation bodies have formulated project implementation plans in accordance with these government policy frameworks and have clarified the orientation of their projects.

JBIC is slated to revise its Medium-Term Strategy for Overseas Economic Cooperation Operations every three years. In the guidelines issued in April 2002, thought was given to making them easier to understand, and effort was made to ensuring that the process of revision was transparent, eliciting comments from the general public and striving to reflect them in the preparation and publication of the new guidelines.

## (2) Enhancing Efficiency and Transparency in Project Implementation

Maximum efforts are being made to prevent improprieties and ensure transparency in the implementation of individual ODA projects at every stage, from the start of the project cycle (project selection) to its end (ex-post evaluation).

In selecting projects, a list of candidates (the “long list”) is published for yen loans, and survey (Basic Design) reports are published subsequent to the submission of bids for grant assistance. When projects are implemented, the implementing organization conducts a stringent study to ensure that bidding is conducted properly and publishes not only the name of the winning bidder and the amount bid but also the names of the other bidders and their bids. If it is revealed that any unfair action was taken during the bidding process, MOFA will impose and execute penalties. In the future, consideration will be given to introducing a system of appropriate third-party audits to be conducted subsequent to the implementation of a project.

To date, long lists for yen loans have been published for four countries: China, Morocco, Tunisia, and Viet Nam. Following the compilation of these lists, which include candidates for multiyear projects, formal applications for the projects on the list are made for each fiscal year, after which selection decisions are made. The compilation and publication of candidate lists offer several advantages: They contribute to a more effective and efficient identification and formulation of yen loan projects from a medium- and long-term perspective; enhance the transparency of aid; promote closer coordination with technical cooperation projects and other types of assistance schemes; and facilitate coordination with the efforts of other donor nations, international organizations, and private-sector groups. The projects appearing on the lists are merely candidates for yen loans, so a listing in no way constitutes a pledge that a loan will be provided. Lists are revised as needed, with projects being added or removed on an ongoing basis.

The implementation of ODA projects requires social and environmental impact assessments to be made in order to address social and environmental concerns. JICA and JBIC have already formulated environmental guidelines to meet such concerns. JICA has established Environmental Guidelines that set forth specific work procedures for each sector—in accordance with the preferences of the recipient country—based on the basic thinking that environmental concerns must be adequately incorporated into development plans from the earliest stages so as to ensure sustainable development.