1.Forest conservation, forestation
2.Prevention of Pollution
|Example:||Installation of equipment for the prevention of air pollution|
Rehabilitation of existing power plants contributing to reducing air pollution
Upgrading and rehabilitation of factories etc.
Selecting coal quality for the prevention of air pollution
|Example:||Effluent treatment, recycling of water|
Sludge treatment, residue treatment
Relocation of factories for water pollution prevention
Treatment facilities for preventing water pollution in harbors etc.
Sewage treatment facilities
|Example:||Collection, processing, disposal of solid waste|
3.Energy Saving and Resource Conservation
|Example:||Installation of energy saving facilities and equipment|
Power plants and transmission and distribution lines for energy saving and resource conservation
Centralized city heating system
4.Conservation of natural environment
5.New and renewable energy sources 
|Example:||Photovoltaic power generation, Utilization of solar thermal energy|
Wind power generation
Utilization of heat and power generation through waste treatment
Geothermal power generation
Utilization of urban waste heat
Utilization of exhaust gas
6.Protection of ozone layer
|Example:||Emission contorol or collection of CFC etc.|
Treatment of materials damaging ozone layer
|Example:||Machines or vessels for the prevention of marine pollution|
Measures for preventing marine disposal of wastes, Monitoring
8.Protection of desertification
|Example:||Afforestation, protection of forest|
Agriculture protecting desertification
9.Water supply contributing to the prevention of infectious disease and poverty reduction
Low-interest loan facilities for specially samll businesses among small and medium sized enterprizes
Projects and programs for humanitarian improvement, restoration and reconstruction in peace-bulding countries and their surrounding countries.
In order to assist upper-middle income countries to reduce regional income disparities, projects to develop specified economic and social infrastructure in low-income regions will be provided by ODA Loans to such countries, where areas of ODA Loans have been hitherto limited in-principle environmental, human resource development, and anti-seismic measures projects.
The Government of Japan has decided to introduce a new ODA loan scheme from July 2002, now called the Special Term for Economic Partnership (STEP), which is expected to raise the visibility of Japan's ODA to the citizens in the recipient countries and Japan through utilizing and transferring excellent technologies and know-how of Japanese firms.
1. Recipient Countries of STEP
Low-Income Countries, Lower-Middle-Income Countries and Middle-Income Countries to which a tied aid can be extended under OECD rules (except Least among Less Developed Countries and Upper-Middle-Income Countries).
2. Eligible Projects of STEP
(1) Outline: Projects eligible for STEP will be limited to those which are in the sectors and fields below (2), and at the same time, for which Japanese technologies and equipment are substantially utilized.
(2) Sectors and Fields
|*Bridges and Tunnels||*Ports|
|*Airports||*Urban mass transit system|
|*Oil/Gas transmission and storage facilities||*Urban flood control projects|
|*Communications /Broadcasting/ Public information system|
|*Power stations/ power transmission and distribution lines|
|*Trunk roads/ Dams|
(limited to projects that substantially utilize anti-earthquake techniques, ground treatment techniques, fast implementation techniques of Japan)
(limited to projects that substantially utilize air-pollution prevention techniques, water-pollution prevention techniques, waste treatment and recycling techniques, and waste heat recycling and utilization techniques of Japan)
3. Terms and Conditions of STEP
(1) Interest Rate and Repayment Period
*Repayment period will be 40 years including 10 years grace period. Interest rate will be set so as to make it possible to extend a tied aid under OECD rules.
(2) Procurement Conditions:
*Prime contractors are tied to Japanese firms. Joint ventures (JV) with recipient countries are also admitted on condition that Japan is a leading partner.
Sub-contractors are untied and open to all countries.
(3)Country of Origin of Goods and Services to be Procured under STEP:
*Not less than 30% of the total amount of contract(s) (excluding consulting services) financed by STEP loan must be accounted for by either (a) goods from Japan and services provided by Japanese firms, or (b) goods from Japan only, according to the nature of project.
|(a) In case of projects which advanced technologies and/or know-how of Japanese firms can be identified in Services (e.g. construction methods), not only Goods but also Services must be included in the ratio mentioned.||Tunnels, ports, concrete bridges, trunk roads, dams, sewerage systems, urban underground headrace tunnels, public information systems, hydroelectric power, and geothermal power, etc.|
|(b) In case of projects which consist of mainly the installation of Goods or Plants and their core technologies can be identified in Goods or Plants, only Goods shall be included in the ratio mentioned.||Communications/broadcasting facilities, wind/solar/thermal power generation, oil/gas transmission and storage facilities, waste treatment sites, waste incineration plants, steel bridges, urban mass transit systems, urban flood control projects, power transmission and distribution line, etc.|
*STEP covers up to 100% of the total project cost.
(5)In order to secure fair procurement process, procurements shall be audited by a third party after a bid process is completed, by utilizing ODA loan or JICA Special Assistance Facility.