basis for some of the projects on the list. Upon receipt of the requests, projects are selected and ODA is implemented. The preparation and publication of such a list enables the finding or forming of a project that could make more effective and efficient use of Yen loans from a medium and long-term perspective. It is also expected to promote collaboration with other donors and international organizations.

The Japanese government has taken measures to ensure transparency of the procurement process of each ODA project, whether it is a loan aid project, grant aid project, or technical cooperation project. For example, parties on the side of the recipient countries usually submit bids in accordance with the procurement guidelines of either JICA or JBIC as the case may be. JICA or JBIC checks the bidding result and publicizes it including the name of the successful bidder and the bid price. In case any company tries to win a bid by a fraudulent means, there is an established system to exclude such company from the bidding and contracting process of ODA projects for a certain period of time.

Regarding audits, improvements will be made for more extensive audits, spot-checks without prior notice, and establishment of a system to adopt improvement measures.

With regard to improvements for more extensive audits, the government has been gradually increasing the number of countries subject to review on the Yen loans procurement procedures by external experts, which has been conducted for some countries with respect to loan aid. In principle, external auditing is required for any projects under Grassroots Human Security Grant Aid worth 3 million yen or more (it used to be 20 million yen or more). Such auditing has been conducted whenever possible. Regarding technical cooperation projects, an external auditing company audits the accounting of JICA.

Regarding "spot-checks without prior notice," for loan aid projects, the government adopts external auditing by sampling from the projects agreed in and after fiscal year 2002 between the governments concerned. Regarding grant aid projects, the government has introduced external auditing to the process of checking whether all the contracts related to the projects are in line with the agreements between the governments concerned. With regard to technical cooperation, the above-mentioned external auditing company conducts an audit on JICA without prior notice.

With regard to "establishment of a system to adopt improvement measures," the government has been improving the existing follow-up system, which allows a department of the implementing agency in charge of actual implementation of a loan aid project or technical cooperation project to take improvement measures based on the audit results.

(4) Ensuring the Safety of ODA Personnel

Japan currently uses the ODA budget to provide assistance to more than 160 countries and regions. Each of them has different security situations. ODA personnel who work there have to deal with ever-changing security situations. It has become extremely important to ensure the security of ODA personnel who support peace-building efforts since the terrorist attacks on the U.S., which has heightened the tension in the Middle East and South Asia and increased terrorist activities throughout the world.

In order to ensure the security of ODA personnel, the government collects as much information as possible about local security situations through Japanese diplomatic missions and local offices overseas, provides overseas travel information and other useful information, and promotes information exchange and sharing among ODA personnel. In addition, JICA and JBIC hold training sessions and seminars for their personnel who are leaving Japan, secure a means of communication in case of an emergency, appoint security advisors, and install security equipment in the houses of their personnel.

To enhance the security of Japanese diplomatic missions, the government introduced new equipment and devices in fiscal year 2003 such as an additional supply of ten bullet-proof cars, bullet-proof vests, and concrete blocks. The budget for fiscal year 2004 included funding for a significant increase in the number of guards entrusted by Japanese diplomatic missions, introduction of bodyguards in Iraq and Afghanistan, and security seminars for staff of high-risk Japanese diplomatic missions. Moreover, in terms of request for institution and increase of personnel of the Ministry of Foreign Affairs, a post of Deputy Director-General in charge of Crisis Management was created and an increase in the number of security officer as well as that of personnel in charge of consular affairs and visa administration by 19 and 21 respectively were approved, which contributed to a substantial improvement of the security of Japanese diplomatic missions.

JICA takes appropriate security measures when necessary. For instance, it exchanges information with Japanese diplomatic missions abroad and prepares a security manual for each country and region in consideration of the respective local security situations. JBIC also takes security measures similar to JICA's. If a Japanese company engaging in an ODA project in a recipient country needs to withdraw from that country, JBIC tries to ensure the security of the company by helping the company negotiate with its local business partners for the suspension of the project so that the company's employees can return to Japan.