FAQ

Q1. Which countries are eligible for PSIF?

Countries on ODA DAC list (ODA trends and statistics | OECD) are eligible for PSIF.

Q2. In what ways does JICA PSIF co-finance with private financial institutions?

In line with the policy of Japanese government, JICA may consider co-financing with both Japanese and non-Japanese financial institutions in a manner that supplements or encourages lending of funds or investment by ordinary financial institutions.
JICA is also actively exploring collaboration with local financial institutions in developing countries.

Q3：How does JICA PSIF cooperate with MDBs or DFIs?

JICA extends PSIF in cooperation with MDBs such as International Finance Corporation (IFC), Asian Development Bank (ADB), European Bank for Reconstruction, and Development (EBRD), Inter-American Development Bank Group (IDB Group) as well as Development Finance Institutions (DFIs).
JICA will continue to strengthen its collaboration with MDBs and DFIs, and pursue co-financing opportunities.

Q4: How long does it take to complete D/D of PSIF?

The duration depends on the project, but it typically takes about 6-9 months. For more detail, please refer to “4. Procedures of Private Sector Investment Finance (PSIF)”.
Under the JICA Guidelines for Environmental and Social Considerations, a proposed project may be classified as Category “A” if these are likely to have significant adverse impacts on the environment and society. The Category A project requires additional processes including Advisory Committee for Environmental and Social Considerations, and therefore, necessary D/D period may be longer.

Q5: What kinds of use of proceeds are acceptable for PSIF?

PSIF supports project plans with high development impact in line with the development policies of the developing country. Therefore, use of proceeds is expected to include capital expenditures, project development costs, and long-term working capital necessary for the project implementation.
In cases where a private company plans to participate in the operation of an existing business in a developing country, and where new development impact can be expected through improvement of business operations and the transfer of know-how, PSIF funds may be utilized to cover costs such as acquisition of O&M concession rights and/or refinancing existing debts.