### 5. Middle East $ ^{29} $

Japan's ODA given to the Middle East on a bilateral basis totaled approximately 416.48 million dollars in 2003, accounting for 6.9% of the total bilateral ODA.

Japan and the Middle East are closely interdependent. For example, Japan depended on the Middle East for approximately 87% of its imported crude oil in 2003. Moreover, Japan is one of the most important trading partners for many Middle Eastern countries. In the ODA Charter, the Middle East is regarded as a very important region for international peace and stability especially from the viewpoint of energy supply. Meanwhile, the Middle East has been confronted with such challenges as the Middle East peace process and the reconstruction of Iraq and Afghanistan. Some Middle Eastern countries other than major oil producers are facing economic difficulties including external payments deficits and accumulated debts. The stabilization of the Middle East has become even more important since the terrorist attacks on the U.S. in September 2001. In consideration of these situations, Japan has been providing the Middle East with assistance especially for peace and social stability in the region.

In fiscal year 2003, Japan provided non-project grant aid of 6 billion yen to Jordan that had suffered enormous economic damage arising from the Iraq crisis taking into consideration the situations in the region.

To Yemen, Egypt, and Morocco, which are relatively less developed countries in the region, Japan has given assistance mostly in the form of grant aid for the improvement of social and economic infrastructure, such as the construction of medical institutions and educational facilities, supply of medical equipment, and development of agricultural villages and water resources. For example, such grant aid was given to Yemen under the "Project for Supplying School Textbook Printing Equipment," and also to Egypt under the "Project for Improvement of Water Supply System at the Northern Pyramids Area in Giza City." Moreover, Japan has provided Egypt with technical cooperation and other assistance under the project named "Improvement of Educational Achievement in Science, Technology, and Mathematics in Primary Schools (2003-2006, technical cooperation project)" in order to reduce poverty through human resources development in the fields of education, health and medical care, water resources development, and the industry of agriculture, forestry and fishery.

On the other hand, to relatively developed countries in the region (Iran, Oman, Tunisia, and Turkey), Japan has been given assistance for these countries' efforts to reduce poverty and narrow gaps and for the diversification of economy through the development of the IT industry and other industries and also for human resources development in such fields as environmental protection. For example, Japan has provided Oman with technical cooperation to protect the environment of the coastal area of the country. Such assistance has been given under a project named "Master Plan Study on Restoration, Conservation and Management of Mangrove," in which Japan cooperated with the country in preparing plans and transferring technologies to Omani government staff.

In fiscal year 2003, Japan provided Yen loans to Egypt, Turkey, Morocco, and Tunisia mainly for projects that directly reduce poverty through the construction of social and economic infrastructure. Japan provided Egypt with financial aid for the "Cairo-Alexandria Transmission System Project" and the "Zafarana Wind Power Plant Project" in order to meet the growing demand of Egypt for electric power and also to build an environmentally friendly wind power plant. To Turkey, Japan decided to give financial assistance for the "Ankara Water Supply Project," according to which 170 million tons of water per year is planned to be supplied to the capital, Ankara, which is projected to have a larger demand for water. To Morocco, Japan decided to provide financial assistance for the "Rural Secondary Education Expansion Project" in an attempt to give every student in rural areas as well as every female student access to secondary education. To Tunisia, Japan decided to provide financial assistance for the "Water Pipeline Construction Project" in Northern Tunisia, which aims at improving health and sanitary conditions by introducing water of better quality with lower salt levels and also at raising income levels by increasing agricultural produce.

Regarding Japan's assistance to Iraq and Afghanistan, see the section titled "Establishment of Peace" in Part II, Chapter 2, Section 3, 4-(1).

## ☑ Assistance for the Middle East Peace Process

In April 2003, Foreign Minister Yoriko Kawaguchi announced, on her visit to Israel and the Palestinian self-governing areas, Japan's intention to implement an assistance package consisting of three components, namely, emergency humanitarian assistance, assistance for reform, and assistance for building confidence, pledging to give assistance totaling approximately 22.25 million dollars over the following one