Birth of New JICA on October 1, 2008

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1 Session 6:Greater 6 Mekong Delta sub-region Second Global Review of Aid for Trade, WTO July 7, Geneva Go Shimada, Director Trade, Investment and Tourism Division Industrial Development Department, JICA Shimada.Go@jica.go.jp Shinichi Kuno and Kenshiro Imamura 1 Birth of New JICA on October 1, 2008 Consolidation of ODA implementation tools for the new JICA 1. The new JICA integrates JBIC s operations covering Japanese ODA loans and overseas investment, and part of MOFA s grants 2. The new JICA provides more strategic and effective ODA as a single agency centrally managing technical cooperation, loans and grant aid FY2008 Grant aid * US$1,016 million MOFA Bilateral Assistance Multilateral Assistance * Except for certain items retained by MOFA required for policy commitments 2 Technical cooperation JICA US$1,486 million The new JICA ODA loans US$7,440 million JBIC(ODA) FY2009 New JICA: US$11,116 million Multilateral Assistance - GA: US$1,118 million - T/C: US$ 1,596 million - ODA loans: US$ 8,402 million FY2008:JPY 103.5/USD (DAC rate) FY2009:JPY 97.60/USD (IFS rate for April 31, 2009)

2 AfT accounts for over a half of total loans. 3 Total Loans and Loans for AFT , USD million) Exchange rate (DAC rate) 2004: JPY108.1/USD, 2005: JPY110.1/USD, 2006:JPY111.6/USD, 2007:JPY117.8/USD, 2008: JPY103.5/USD Asia and Africa are the main regions for JICA s s AfT. 4 JICA s Aid for Trade by Region (2007) Middle East Oceania Oceania Europe World Africa 1 Middle East 8% America 1 Asia 4 Asia 8 Africa 23% Asia Africa Middle East America Oceania Europe World

3 JICA aims to improve aid effectiveness through synergy between loans, and technical cooperation and grant aid 5 JICA s Aid for Trade by Sector (2007) Agricult ure 10% Forestry 10% Indust ry Transport and St orage 3 Tourism Mineral Resources and Mining Industry 9% Fishing 5% Trade Policy and Regulations Transport and Storage 1 Communications 8% Forestry Energy Generation and Supply Business Support Sevices and Institutions 3% Energy Generation and Supply 4 Communicat ion 75% 68% Agriculture 3 Banking and Financial Services Business Support Services and Institutions Economic Infrastructure Building Productive Capacity Transport and St orage Communicat ions Energy Generat ion and Supply Banking and Financial Services Business Support Services and Inst itut ions Agriculture Forestry Fishing Industry Mineral Resources and Mining Tourism Trade Policy and Regulat ions CLMV are the main focus in ASEAN region 6 JICA s Aid for Trade: ASEAN by Country (2007) Sout h East Asia 0.3% 5 5 Indonesia 35% Philippines 9% 52.3% LaoPDR 8% 1 Viet nam 2 Indonesia 2 Brunei Indonesia Malaysia Philippines Singapore Brunei Lao PDR South East Asia Philippines 1 Malaysia Singapore 0.

4 Assistance for building productive capacity is provided through technical cooperation and Grant Aid, while Economic Infrastructure is through loans. 7 JICA s Aid for Trade: GMS by Sector (2007) Mineral Resources and Mining Tourism Trade Policy and Regulat ions Indust ry Fishing 5% Transport and Storage 1 Energy Generation and Supply 43% Transport and Storage 5 Forestry 1 Communications Energy Generation and Supply Agricult ure 30% Banking and Financial Services Communications 5% 100% 68% Economic Infrastructure Building Productive Capacity Business Support Services and Institutions 9% Transport and Storage Communications Energy Generation and Supply Banking and Financial Services Business Support Services and Institutions Agriculture Forest ry Fishing Indust ry Mineral Resources and Mining Tourism Trade Policy and Regulations JICA s s AFT Strategy to ASEAN Regional Integration Peace in the Region Equality among Member Countries Strong Economic Ties South-South Cooperation Infrastructure Development Development of Investment and Business Environment Cross Border Transport Infrastructure Industrial Park Development Trade Promotion Development of Regional Economy 8

5 Major Economic Infrastructure and JICA Projects Loans Grant Aid Technical Cooperation North-South Economic Corridor Kunming Nam Ngum Hydropower Station East-West Economic Corridor Mekong River Nam Leuk Hydroelectric Power Plant Vientiane International Airport Yangon International Airport Pha Lai Thermal Power Plant Hanoi Lao PDR Hai Phong Cai Lan Port Baluchaung Hydro Power Plant Naypyidaw Chiang Rai Hai Phong Port Vientiane Yangon Port Nong Khai Second Mekong International Bridge Yangon Savannakhet Mukdahan National Road Route 9 Mawlamyine Phitsanulok Hue Pakse Da Nang Lam Ta Khong Pumped Storage Power Plant Hai Van Tunnel Sisophon Bangkok Siem Reap Development Triangle Da Nang Port Trat Kampong Cham Pakse Bridge Phnom Penh Suvarnabhumi International Airport Ho Chi Minh Vung Tau Bridge over the Mekong River Southern Economic Corridor National Road Route 6 and 7 Phu My Thermal Power Plant Leam Chabang Port Cai Mep-Thi Vai Port Map Ta Phut Port Sihanoukville Port National Road No.1 Tan Son Nhat International Airport 9 GRDP per capita in GMS Countries and Regions Time Distance Between GMS Countries (A) A Few Years Ago China China Lao PDR Lao PDR (h) GRDP(USD/person) 1,500-1,200-1, , (B) After CBTI/CBTA Completion Source: Univ. of Tokyo 10

6 People arriving at Savannakhet from. The bridge changed the movement of goods and people One stop service is provided at the custom office of Laos Boarder Second Mekong International Bridge 11 GDP and Infrastructure Stock Per Capita 12

7 Provision of Infra Services Direct Impact Indirect Impact Negative Impact Delivery of Basic Infra Service Economic Growth Support to Sustainability Environmental degradation Income disparity Regional disparity Diversification and Spatial Expansion of Opportunities for of Social & Economic Activity Poverty Reduction and and Attainment of of MDGs Measures to alleviate regional disparity Pro-poor measures (poverty and gender gaps) Environmental conservation measures Supportive Policy Responses Full and Various Manifestations of Latent Abilities Security against Risks and Vulnerabilities