Table4-3-1 ODA Disbursements for Water Supply and Sanitation Sectors

FY	Grant aid	Yen loan	Technical cooperation	Contributions to multilateral institutions	Total
Provided by JICA	Provided by other ministries
2003	187.67 (22.7)	1,956.52 (35.1)	11.56 (0.8)	- (-)	- (-)	2,155.75 (27.6)
2004	200.62 (24.3)	2,040.48 (31.2)	10.10 (0.7)	- (-)	- (-)	2,251.20 (25.5)
2005	235.16 (29.2)	1,783.37 (31.5)	12.40 (0.8)	- (-)	- (-)	2,030.93 (27.6)
2006	216.04 (12.1)	3,385.17 (40.1)	8.95 (0.1)	- (-)	- (-)	3,610.16 (30.8)
2007	245.56 (6.9)	2,542.61 (26.9)	7.82 (0.3)	6.74	32.58 (3.7)	2,835.32 (20.7)

Note 1: Grant aid and yen loans are on an exchange of note basis. Technical cooperation covers the acceptance of trainees, sending of experts and provision of equipment, on the basis of actual expenses of JICA.

2: Figures in parentheses other than those in the total column indicate the ratio (%) to the sum of ODA by each type of aid.

3: Figures in parentheses in the total column indicate the ratio (%) to the cumulative total of all types of aid.

4: Figures for grant aid are for disbursements of non-project grand aid from FY2003 through FY2006 and for disbursements of project-type grant in FY2007 aid (non-project grant aid, grant aid to support community development, grant aid for security, such as antiterrorism, grant aid for disaster prevention and support for disaster-hit areas, grant aid for fisheries and grant aid for research support).

Source: Ministry of Foreign Affairs, "Japan's ODA White Paper 2008 Statistics and Reference Materials"

Figure4-3-2 Contract Type and Responsibilities of the Private Sector for Water Supply and Sewerage Projects in the Global Water Business Market

Contract type	Content	Supervision and regulation	Facility ownership	Service level decision	Fee decision	Operation	Investment	EPC (Engineering, Procurement & Construction)	Operation	Maintenance	Customer management
Concession	Gives the private sector the authority to operate water projects, and commissions the entire project, from facility construction to operation, to the private sector	Foreign "water majors" flexibly respond to a variety of contract types
Affirmage	Facility developed by the public sector is leased to the private sector on a long-term basis and the operation is commissioned	The scope of operations of Japanese water-related companies in the domestic water supply and sewerage sector encircled by the wavy line
PFI	Facility construction and funding is outsourced to the private sector, but the public sector takes charge of operations	The scope of operations of Japanese water-related companies in the domestic water supply and sewerage sector encircled by the wavy line
Operation and management	Comprehensive outsourcing of management and operations as labor alternative for 5 to 10 years

Source: Prepared by Ministry of the Environment based on the Council on Competitiveness-Nippon (COCN), "Project Report on Technologies for Water Treatment and the Effective Use of Water Resources"

## 2 What Japan Can Do for the World

Compared with countries in the world constantly feeling water stress, we in Japan are given to losing a sense of crisis over water as we have relatively free access to water in our daily livelihood. However, as discussed in subsection 4 of Section 1, we should not forget the fact that our social and economic activities depend on the rest of the world for water almost in the same quantity of water we consumer at home. We must recognize that Japan's active international contributions to other countries in the world are essential in terms of the stable supply of water and lead to the protection of our daily livelihood.

What, then, can Japan do by way of contributing to other countries in the world? Japan suffered from serious pollution in the past. Knowledge and technologies we have accumulated in the process of overcoming pollution problems one by one cannot be matched anywhere in the world, and the wealth of these experiences should prove massively helpful in the transfer of technologies to and human resources development in developing countries. Public-private cooperative efforts to utilize Japan's excellent technologies and experiences also can be expected to greatly help expand business opportunities. Until now, Japan has been helping countries with which it has close relations through ODA-based infrastructure projects undertaken by Japanese water supply corporations and the waterworks industry (Table 4-3-1). From now on, Japan should make further international contributions beyond the ODA framework, with Japanese water supply-related companies sharpening their international competitiveness and expanding their overseas businesses.

Developing countries where water-related infrastructure is under development have strong needs for post-construction maintenance and sound management services. However, since Japan's water services have long been undertaken mainly by publicly-operated corporations, private-sector companies, despite their strength in element technologies such as facility design and construction, have only limited experiences in integrated maintenance, management and operations of water facilities and are often disqualified in competitive international tenders. In fact, in water infrastructure projects funded with Japan's ODA, European and U.S. companies come in at the stage of commissioning private-sector entities for maintenance, management and operations of water supply facilities. Japanese companies cannot immediately respond to these developments in recent years (Figure 4-3-2).