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 activitiesII. Private sector partnerships

I. JICA’s Operations and activities

1. Vision, mission and strategy2. JICA’s activities3. JICA Morocco activities4. JICA’s support in the water sector

Développement inclusif et dynamique

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1. Japan International Cooperation Agency: History, vision, mission & strategy

1954

Establishm

ent of OE

CF

(Organisation

of Econom

ic Cooperation F

und in Asia)

Développement inclusif et dynamique

Vision Inclusive and Dynamic Development

Mission 1. Addressing the global agenda2. Reducing poverty through equitable growth3. Improving governance4. Achieving Human Security

Strategy Integrated supportComprehensive support combining policy and institutional improvement, human resource development and improvement in infrastructureComprehensive support that encompasses different regions and issues Seamless supportProviding quick and seamless support from disaster relief to support for reconstruction/developmentDealing flexibly with development needs according to the various stages of development, from the least developed countries to middle income countries Promoting development partnershipsPromotion of public-private partnership and participation of the publicUse of science and technologyPromotion 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 cooperationLeading the trend of international assistance through active diffusion of research results

1. Japan International Cooperation Agency: History, vision, mission & strategy

JICA’s Overall Activities

2. JICA’s Operations & activities

JICA Technical CooperationTechnical Cooperation

Grant AidGrant Aid

Loan AssistanceLoan Assistance

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

PSIF (Private Sector Investment

Finance)

PSIF (Private Sector Investment

Finance)

JICA’s Operations in FY 2010 Unit: JPY billion

Electric Power and Gas

Transportation

Irrigation and flood control

Agriculture, forestry and fisheries

Mining and manufacturing

Social services

Commodity and other loans

Others

0 50 100 150 200 250

Contribution per Sector (ODA Loan worldwide)Unit: JPY Billion

Through the Government

Through the Government

Through the Government

Directly to private entities

6

Starting Operations: 1967

Four intervention area:1. Economic competitivenss: support sustainable Economic Development and competitivness2. 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 countries4. Human Resources development and national capacity building

Three instruments:

3. JICA Morocco Office

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)

8

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

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: 26/03/2013End of disbursement date: 17/01/2024Loan 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 activitiesII. Private sector partnerships

II. JICA’s Private sector partnerships

1. JICA’s assistance tools 1.1 definition1.2 PSIF1.3 PPP F/S Assistance1.4 BOP F/S Assistance

JICA’s Private Sector partnerships1. 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)

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

Invitation Programs

1.2 PSIF (Private Sector Investment Finance)

(1) Outline

PSIF

One of Official Development Assistance (ODA) Schemes ⇒ Purpose: Support economic development and Poverty Reduction

(MDGs and Poverty Alleviation, climate change and acceleratinggrowth through infrastructure development)

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

Scheme of

Speed, Flexible and

Concessional

Recipient Government

PSIFJapanese ODA Loan

(Yen-Loan)

Executing AgenciesPrivate Companies

(Project Companies)

JICA’s Private Sector partnerships: Assistance tools

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

- Repayment Period

- Grace Period- Maximum Share

Concessional Level

Up to 20 years(Up to 25 years in special cases)

Up to10 years70% (80% in special cases)

(For Vietnam)Normal ODA loan: 1.4%Special Condition: 0.2%Normal ODA loan: 30 yearsSpecial Condition: 40 years

10 years85%

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

(3) Major Conditions1.2 PSIF (Private Sector Investment Finance)

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.

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)

JICA’s Support:

Max. JPY 150 mil. (USD 1,3 million) to cover part of Feasibility Study cost.

1.3 Preparatory Survey F/S (PPP/BOT Infrastructure F/S Assistance)

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

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.

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.

JICA’s Support:

Max. JPY 50 mil. (USD 0.45 million) to cover part of Feasibility Study cost.

1.4 Preparatory Survey F/S (BOP F/S Assistance)

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

JICA’s Private Sector partnerships: Assistance tools

ContactJICA Morocco Office

Mr. Takashi YUKIZAWA, Loan Section Chief Yukizawa.Takashi@jica.go.jp

Mlle Ouidad BENHADDOU, Programme OfficerBenhaddouOuidad.mo@jica.go.jp

Tel : (0537) 27 65 95/96/97/98/99Fax : (0537) 77 95 92Adresse :N° 9, Impasse Al Melia, Lotissement Falah, Lot 9, Agdal Riyad – 10100, Rabat, Maroc