Regarding loan aid, after discussion with the Iraqi side and conducting various studies, Japan decides the provision of approximately US$2.1 billion of funds necessary to implement 10 projects in the sectors of power, transportation, petroleum, irrigation, and others, by the end of FY2007. Furthermore, in order to address Iraq's debt problems, an agreement was reached in 2004 at the Paris Club that 80% of Iraq's total Paris Club debt of US$36.2 billion be reduced over three stages. Based on this agreement, an Exchange of Notes took place in November 2005 between Japan and Iraq, which would reduce Iraq's total debt owed to Japan of approximately US$7.6 billion (Japan is the number one creditor nation to Iraq) by 80% in total over the three stages. The debt reduction schedule works in tandem with International Monetary Fund (IMF) assistance programs, and as of March 2008, has progressed to the second phase.

See page 64 on Japan’s efforts for developing countries’ debt issues.

## Assistance to the Province of Al-Muthanna

In the Province of Al-Muthanna, the central city of which is Samawah, the Government of Japan has provided assistance of more than US$200 million in total through development assistance in the forms of Grant Assistance for Grass-Roots Human Security Projects and Emergency Grant Aid in coordination with the activities of the SDF. In particular, the Government has placed priority on the following issues: provision of safe drinking water, stabilization of the electricity supply, provision of basic medical services, improvement of sanitary conditions, improvement of the educational environment, maintenance of community roads, creation of employment opportunities, restoration of public safety for people's lives, and development of human resources. Furthermore, loan aid was provided to help build a new bridge and reconstruct two bridges and to help rebuild irrigation facilities in Al-Muthanna Province.

Some specific examples of cooperation with the SDF through development assistance are that SDF medical officers provided instruction on the use of the medical equipment provided, and that the roads graveled by the SDF were paved with asphalt.

## Assistance through Various Collaborations

The promotion of international cooperation is important in the reconstruction assistance to Iraq. Based on this perspective, Japan extended US$490 million to the International Reconstruction Fund Facility for Iraq (IRFFI), whose establishment was agreed upon at the Madrid Conference for Reconstruction of Iraq. Through this contribution, Japan supports various reconstruction projects implemented by UN organizations and the World Bank.

Japan also provides assistance through NGOs in fields like medical care, education, and water supply, the total of which is approximately US$26 million as of the end of FY2007. Through this contribution, a total of 22 projects have been implemented via NGOs comprising the Japan Platform (JPF). The projects include three emergency reconstruction projects for internally displaced persons and returnees in the northern part of Iraq, a project for the restoration of primary and secondary schools in Baghdad, and assistance for medical care in the northern region.

Aside from this, Japan provides assistance to Japanese NGOs which are not under the JPF as well as to international NGOs. $ ^{66} $ Initiatives implemented through Japanese NGOs to date include the provision of medical equipment like incubators for newborns to Samawah Maternal Hospital and the provision of educational materials for the Samawah Nursing High-School. Examples of Japan’s assistance through international NGOs include the provision of pharmaceuticals and medical supplies to Baghdad’s Al-Yarmouk Teaching Hospital and supplying water by renting water tank trucks in the Province of Al-Muthanna.

State Secretary for Foreign Affairs Seiko Hashimoto talking with Iraqi Prime Minister Nouri al-Maliki