July 25, 2011
International Cooperation Bureau, Ministry of Foreign Affairs
International Bureau, Ministry of Finance
Trade and Economic Cooperation Bureau,
Ministry of Economy, Trade and Industry
Operations Strategy Department/Office for Private Sector Partnership,
Japan International Cooperation Agency
To promote the economic development through private sector participation in developing countries, the Government of Japan and the Japan International Cooperation Agency (JICA) have been holding discussions on the resumption of JICA's function to provide private sector investment finance as a means to support projects implementing by private enterprises in developing countries through equity participation and loan financing. In Realizing the New Growth Strategy Realization 2011 (Cabinet decision on January 25, 2011) following the New Growth Strategy (Cabinet decision on June 18, 2010), the Government decided to resume this function of JICA by the end of FY 2010 through a pilot approach—a process that involves, in carrying out actual projects, (1) verification and improvement of a new implementation system and (2) establishment of rules for project selection.
Based on these proceedings, the procedures needed for the resumption, such as revising JICA's mid-term plan, were completed on March 30 this year.
Accordingly, the following two projects were selected to implement under the pilot approach and therefore JICA will commence the appraisal of these projects.
If Hanoi Water Supply Project (for constructing a water supply system in Greater Hanoi, using the Duong River as a source, in order to meet growing water demand and secure a stable water supply) is confirmed as an appropriate PPP infrastructure project in JICA's ongoing preparatory survey for JICA's assistance, JICA will also commence the project appraisal for its implementation through a pilot approach.