JICA’s Operations & Activities (Incl. Private Sector Partnerships) JICA Morocco Office «Hand in Hand with a more dynamic Africa» (TICAD V, Yokohama, June 2013) The WEX Africa 2014 Internationale Trade mission El Jadida 12 - 13 November 2014 Développement inclusif et dynamique I. JICA’s Operations and activities II. Private sector partnerships I. JICA’s Operations and activities 1. 2. 3. 4. Vision, mission and strategy JICA’s activities JICA Morocco activities JICA’s support in the water sector 1. Japan International Cooperation Agency: History, vision, mission & strategy 2008 2003 1999 1981 1974 1973 1965 1954 Développement inclusif et dynamique Establishment of the new JICA (merger JICA and JBIC – revised JICA Act) JICA’s reorganisation as an incorporated adm. Agency (review of programs) Establishment of JBIC (merger of JEXIM & OECF) Joint technical cooperation with other interational organisations Establishment of JICA (JICA Act) Introduction of the 3rd country training program Creation of JOCV Establishment of OECF (Organisation of Economic Cooperation Fund in Asia) 1. Japan International Cooperation Agency: History, vision, mission & strategy Vision Mission Strategy Inclusive and Dynamic Development 1. Addressing the global agenda 2. Reducing poverty through equitable growth 3. Improving governance Développement inclusif etSecurity dynamique 4. Achieving Human Integrated support Comprehensive support combining policy and institutional improvement, human resource development and improvement in infrastructure Comprehensive support that encompasses different regions and issues Seamless support Providing quick and seamless support from disaster relief to support for reconstruction/development Dealing flexibly with development needs according to the various stages of development, from the least developed countries to middle income countries Promoting development partnerships Promotion of public-private partnership and participation of the public Use of science and technology Promotion of international collaboration Enhancing research and knowledge-sharing Reinforcement of the function of research on development based on an abundance of information obtained from the actual site of cooperation Leading the trend of international assistance through active diffusion of research results 2. JICA’s Operations & activities JICA’s Overall Activities JICA Bilateral agency in charge of ODA execution, including Technical Cooperation, ODA Loan and Grant Aid. One among the most renowned agency of bilateral cooperation, working in more that 150 countries and regions JICA’s Operations in FY 2010 Unit: JPY billion Technical Cooperation Through the Government Grant Aid Through the Government Loan Assistance Through the Government PSIF Directly to private entities (Private Sector Investment Finance) Contribution per Sector (ODA Loan worldwide) Unit: JPY Billion Others Commodity and other loans Social services Mining and manufacturing Agriculture, forestry and fisheries Irrigation and flood control Transportation Electric Power and Gas 0 50 100 150 200 250 6 3. JICA Morocco Office Starting Operations: 1967 Four intervention area: 1. Economic competitivenss: support sustainable Economic Development and competitivness 2. Regional and social disparities: Poverty reduction (rural/urban disparity attenuation) 3. South/South Cooperation (Morocco-Japan-African counties) Support Morocco in its endeavours in the development of African countries 4. Human Resources development and national capacity building Three instruments: 1. Technical Cooperation (1967) : ~ 310 millions USD 2. Grant Aid (1967): ~ 337 millions USD 3. ODA Loan (1976): 34 projets réalisés et en cours de réalisation (~ USD 3 Milliards) 4. JICA support in the Water Sector in Morocco 1995: Aménagement dans le secteur de l’Alimentation en Eau (I) 60 millions USD 1997~2009 : Aménagement dans le secteur de l’alimentation en eau (II) 90 millions USD 1999~2007: Approvisionnement en Eau potable en milieu rural (I) 50 millions USD 2000~2008 : Approvisionnement en eau potable en milieu rural (II) 24,6 millions USD. 2001~2008: Alimentation en Eau Potable d’Agadir 64 millions USD 2008~2015 : Approvisionnement en eau potable en milieu rural (III), 136 millions USD 2010~2017 : Alimentation en Eau Potable à Khouribga et Khémisset 154 millions USD 2011~2020: Projet d’Alimentation en eau potable à Fès et Meknès 174 millions USD 2005~2016 : Aménagement des Systèmes d’Assainissement (I) 42 millions USD 2007~2014 : Projet de Développement des Systèmes d’Assainissement (II) 50,5 millions USD 2013~ : Projet de Développement des Systèmes d’Assainissement (III) 107 millions USD 8 4. JICA support in the water sector in Morocco Procurement of major facilities (ICB): Project’s title: « Sewerage System Development Project, III MR-P33 » Date of the L/A signature: 26/03/2013 End of disbursement date: 17/01/2024 Loan amount(million yen): 10,790 (~ USD 100 Million) Target areas: Ouarzazate, Nador, Targuist, Essaouira, Bouarfa, Berkane, El Aroui, Taourirt, M’rirt Executing agency: ONEE (branche eau) N° projet Lot name (ICB) Progress Next step (Bidding) MR-P33 STEP rehabilitation et extension (Nador) Basic Design (APS) studies at a final stage (provisional EIA studies ongoing November 2015 STEP rehabilitation et extension (Berkane) Detailed Design studies ongoing September 2017 Anaerobic pond cover systems ToR ongoing June 2016 Laboratory equipment for water quality (supply, setting up and training) DCE non encore établis March 2015 I. JICA’s Operations and activities II. Private sector partnerships II. JICA’s Private sector partnerships 1. JICA’s assistance tools 1.1 definition 1.2 PSIF 1.3 PPP F/S Assistance 1.4 BOP F/S Assistance JICA’s Private Sector partnerships 1. Assistance tools 1.1 JICA’s private sector operations include the following: Private Sector Investment Finance (PSIF) Preparatory surveys for PPP infrastructure Preparatory survey for BOP business Technical Assistance (Policy Advice/Training) Invitation Programs Financial support to private projects through concessional loans and equity investment, which will facilitate private finance into the field where otherwise will not be feasible with just the available private finance in the market Project Development Assistance to PPP infrastructure projects/BOP business. JICA calls for proposals and private companies will submit their investment ideas (proposal-public offering system). JICA will then award some good proposals to be conducted under JICA’s budget. Proponents are required to propose JICA of their necessary assistance from JICA (including finance, grants, TA …..) JICA can facilitate private finance in developping countries through policy advice to the government and training to the Government or private companies JICA can support the private companies who intend to invest in developping countries JICA’s Private Sector partnerships: Assistance tools 1.2 PSIF (Private Sector Investment Finance) (1) Outline One of Official Development Assistance (ODA) Schemes ⇒ Purpose: Support economic development and Poverty Reduction (MDGs and Poverty Alleviation, climate change and accelerating growth through infrastructure development) PSIF Scheme of Speed, Flexible and Concessional Loan (long tenor and low interest rate) & Equity Direct Support for Private Companies (available for JV with Government Companies) ⇒ therefore, request of other procedures taken by recipient Governments are NOT necessary PSIF Japanese ODA Loan (Yen-Loan) Recipient Government Private Companies (Project Companies) Executing Agencies 1.2 PSIF (Private Sector Investment Finance) (3) Major Conditions PSIF JPN ODA Loan Project Type Private Project Government Project Financing Tool Equity Investment (share of equity: max 25% of the total capital) / Loan Loan Currency Japanese Yen (Loan) Local Currency (Equity) Japanese Yen Terms of Loan - Interest Rate Concessional Level - Repayment Period Up to 20 years (Up to 25 years in special cases) (For Vietnam) Normal ODA loan: 1.4% Special Condition: 0.2% Normal ODA loan: 30 years Special Condition: 40 years - Grace Period - Maximum Share Up to10 years 70% (80% in special cases) 10 years 85% Procedure -Initiated by the private company’s request -Short and simple procedures -Initiated by official request of government of recipient countries Security Package -Tailor made -Sovereign guarantee is not required -Sovereign guarantee or Government borrowing Procurement -Recipient of JICA`s PSIF selects contractors for procurement at its discretion. -JICA’s procurement guidelines JICA’s Private Sector partnerships: Assistance tools 1.3 Preparatory Survey F/S (PPP/BOT Infrastructure F/S Assistance) Background: F/S is necessary for project implementation. F/S costs are risk money for private companies. Conducting a F/S on challenging projects in developing countries are in most cases impossible without financial support.. JICA bears all or part of cost of F/S by means of soliciting proposals for F/S on PPP projects from Japanese private companies and entrusting F/S to the proponents who submitted successful proposals. JICA’s Support: Max. JPY 150 mil. (USD 1,3 million) to cover part of Feasibility Study cost. Eligible projects: PPP infrastructure projects in developing countries Preparation for utilizing JICA ODA assistance or PSIF Proponents should have an intention to invest in the project (not only construction) Example of projects in which JICA is supporting the private sector (PPP scheme): Indonesia: Potable water supply with solar power system and small water desalination units (Toray industries, kitakyshi city) Bangladesh: Rainwater tanks with microcredit system (Institute for Skywater harvesting) Senegal: Village water supply with clean water system in West Africa (Yamaha) JICA’s Private Sector partnerships: Assistance tools 1.4 Preparatory Survey F/S (BOP F/S Assistance) Background: F/S is necessary for project implementation. F/S costs are risk money for private companies. Conducting a F/S on challenging projects in developing countries are in most cases impossible without financial support.. JICA bears all or part of cost of F/S by means of soliciting proposals for F/S on BOP projects from Japanese private companies and entrusting F/S to the proponents who submitted successful proposals. JICA’s Support: Max. JPY 50 mil. (USD 0.45 million) to cover part of Feasibility Study cost. Eligible projects: Business that involve BOP as consumers of a good or service which leads to development effect; or Business that offers BOP the opportunity of participating in its economic activity as an entrepreneur or employee, which leads to developmental effect. Example of projects in which JICA is supporting the private sector (conducting BOP F/S): Project title: « Ait Baamrane Cactus development and intensification project » (Sidi Ifni (SMD region)) Proponent: JCB Japan / TOYO KOATSU Co., Ltd Country: Morocco Objetive of the F/S: create a pilot model for social business that can be scaled up to other sectors Contact JICA Morocco Office Mr. Takashi YUKIZAWA, Loan Section Chief Yukizawa.Takashi@jica.go.jp Mlle Ouidad BENHADDOU, Programme Officer BenhaddouOuidad.mo@jica.go.jp Tel : (0537) 27 65 95/96/97/98/99 Fax : (0537) 77 95 92 Adresse :N° 9, Impasse Al Melia, Lotissement Falah, Lot 9, Agdal Riyad – 10100, Rabat, Maroc