the transparency and objectivity of evaluations, the participation of outside experts in evaluations has been expanded through, for example, secondary evaluations by outside experts of the results of evaluations at the time of conclusion and the inclusion of comments by outside experts in the results of ex-post evaluations.

MOFA, as well, has conducted ex-post evaluations of projects since FY2005 to check how facilities and equipment are used and how effective they are in identifying problems and difficulties of each project. The projects subject to evaluation until 2006 were only those in excess of ¥1 billion, but in 2007 the scope was enlarged to target all general grant aid projects and grant aid for fisheries for which four years has passed since completion. In 2007, ex-post evaluation was conducted for 115 projects in 55 countries. For 98 of these, MOFA carried out primary assessment subsequent to third-party secondary evaluations to verify the validity and appropriateness of primary evaluations. Furthermore, project-level ex-post evaluations by sector, country, and region have been conducted through third-party entrustment. The lessons obtained from those ex-post evaluations are reflected in the development and implementation of new projects.

## Seeking a Comprehensive Evaluation System Suited to the Inauguration of the New JICA

Under the New JICA inaugurated in October 2008, study is now underway to establish a monitoring and evaluation system suitable for all assistance instruments, be it technical cooperation, loan aid, or grant aid. With respect to the program-level evaluations performed respectively by MOfA and New JICA, it has been decided to set up an effective and efficient division of roles that eliminates overlap, with both offices performing coordination at the stage of evaluation plan formulation.

## (2) Ensuring Appropriate Procedures

Development without consideration for impacts on the environment or local societies may produce positive effects in the short-term, but in the medium-and long-term it can impede the socio-economic development of the country, and it therefore is contrary to the concept of sustainable development that Japan has traditionally promoted. Also, aid must be performed with a suitable and efficient procurement process, particularly in terms of its quality and cost.

In procedures for which adequate care is paid to effects exerted on the environment and society by implementation of ODA, it is necessary for implementing agencies to formulate and utilize guidelines that give consideration to the environment and society. They must confirm that the ODA project gives proper consideration to the impact on the environment and to social impacts such as involuntary displacements of residents and the violation of rights of indigenous peoples regarding land and resources when implementing ODA. The formulation and utilization of guidelines serve to avoid negative effects from Japanese assistance on the environment and local communities to the extent possible. Moreover, the guidelines can lead to enhancing the transparency, predictability, and accountability of considerations for the environment.

Japan implements ex-ante confirmation of measures taken by developing countries in accordance with the various environmental and societal guidelines. In recent years, it has been working to further enhance those guidelines. Concerning loan aid, Guidelines for Confirmation of Environmental and Social Considerations have been in force since October 2003, after public consultations with a broad range of voices from academic experts, NGOs, and others. The new guidelines stipulate consideration of not only environmental factors, but also social aspects such as the resettlement of and the impact on indigenous groups and women. Concerning technical cooperation, similarly Guidelines for Environmental and Social Considerations were put into force in April 2004 after obtaining a broad range of views from outside JICA, including those of external specialists and NGOs. With regard to grant aid too, since 2006 support has been based on the “Guideline for Grant Aid Assessment.” In New JICA, inaugurated in October 2008, based on the specifics of each aid modality (technical cooperation, ODA loans, and grant aid), the consolidation of the systems for Guidelines for Environmental and Social Considerations has advanced through advisory councils comprised of academic experts and NGOs.

In addition, a meeting of the Committee for the Appropriate Implementation of Grant Aid is held for grant aid projects to ensure the appropriate procedures for ODA. The meeting consists of specialists from the fields of international finance, development economics, law, accounting and information, as well as NGO-related parties. The opinions of these third parties are incorporated into the selection processes for grant aid projects. These committee meetings discuss extensively to aim at increasing the efficiency and transparency of grant aid projects, and the suggestions and recommendations at these discussions are reflected in aid operations.