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Marie Soderberg - The Business of Japanese Foreign Aid: Five Cases from Asia

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Marie Soderberg The Business of Japanese Foreign Aid: Five Cases from Asia
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Japan is now the biggest donor of Official Development Assistance (ODA) throughout the world. This study takes a new approach to this subject by focusing on the procedures, methodologies and business mechanisms at the implementation level that influence the process of policy-making in Tokyo. It is also the first study to explore the process of receiving aid, arguing that many of the recipient countries exert considerable influence over the distribution of Japanese foreign aid.

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ADB Asian Development Bank

AfDB African Development Bank

Asahi Asahi Shimbun

ASEAN Association of South East Asian Nations

AWSJ Asian Wall Street Journal

B&W Babcock and Wilcox

BAPPEDA regional development planning board (Indonesia)

BAPPENAS national development planning agency (Indonesia)

BKPM investment co-ordinating board (Indonesia)

BOI/DTI Board of Investment/Department of Trade and

Industry (Philippines)

BOT/BOO Build-Operate-Transfer/Build-Operate-Own

BW Business World

CALABARZON the provinces of Cavite, Laguna, Batangas, Rizal and Quezon (Philippines)

CE/MC Combustion Engineering/Mitsubishi Corporation

CGI Consultative Group on Indonesia

CNIMIEC China National Industrial Machinery Import and

Export Corporation (a subsidiary of CNMIEC) CNMIEC (CMC) China National Machinery Import and Export Corporation

CNTIC China National Technical Import and Export

Corporation

DAC Development Assistance Committee

DENR Department of Environment and Natural

Resources (Philippines)

DOH Department of Highways (Thailand)

DTEC Department of Technical and Economical

Cooperation (Thailand)

EBRD European Bank for Reconstruction and

Development

ECC environmental compliance certificate, to be

issued by EMB (Philippines)

ECD Economic Co-operation Department (of Mitsui &

Co. Ltd, Japan)

ECFA Engineering Consulting Firms Association

(Japan)

EIA environmental impact assessment, application for

ECC (Philippines)

EIS environmental impact statement (system);

sometimes refers to the whole system including EIA and ECC (Philippines)

EKUIN co-ordination ministry for economy, finance,

industry and development supervision (Indonesia)

EMB Environmental Management Bureau of DENR

(Philippines)

E/N Exchange of Notes

EPA Economic Planning Agency (Japan)

ETA Expressway and Rapid Transit Authority

(Thailand)

FCTIO Foreign Capital and Technical Import Office

(China)

FEER Far Eastern Economic Review

FGD flue gas desulphurization (equipment)

F/S feasibility study

GDP gross domestic product

GOJ Government of Japan

GOP Government of the Philippines

IBRD International Bank for Reconstruction and

Development (World Bank)

ICB international competitive bidding

ICC Investment Coordination Committee

IDB Inter-American Development Bank

IGGI Intergovernmental Group on Indonesia (now

superseded by CGI)

IHT International Herald Tribune

IS international shopping

JAIDO Japanese International Development

Organization

JETRO Japan Export and Trade Organization (Japan)

JICA Japan International Co-operation Agency (Japan)

LA loan agreement

LCB local competitive bidding

LDC less-developed country

LGU Local Government Unit (Philippines)

LLDC least among less-developed countries

Mainichi Mainichi Shimbun

MAI/PAP Multilateral Assistance Initiative/Philippine

Assistance Program MB Manila Bulletin

MEAO Machinery and Electric Appraisal Office (China)

MERALCO Manila Electric Company (Philippines)

MITI Ministry of International Trade and Industry

(Japan)

MOA memoranda of agreement

MOF Ministry of Finance (Japan)

MOFA Ministry of Foreign Affairs (Japan)

MOFTEC Ministry of Foreign Trade and Economic

Cooperation (China)

MOR Ministry of Railways (China)

NEDA National Economic and Development Authority

(Philippines)

NESDB National Economic and Social Development

Board (Thailand)

NEWJEC New Japan Engineering Consultants Inc.

NGO non-governmental organization

NIC newly industrializing country

Nikkei Nihon Keizai Shimbun

NPC National Power Corporation (Philippines)

ODA Official Development Assistance

OECD Organization for Economic Co-operation and

Development

OECF Overseas Economic Co-operation Fund (Japan)

OPEC Organization of Petroleum Exporting Countries

PCI Pacific Consultant International

P F/S preliminary feasibility study

PLN Persahaan Listrik Negara (state electricity com

panyIndonesia)

PMTDP Philippine Medium Term Development Plan

RDC Regional Development Council, local subdivi

sion of NEDA and highest regional government body (Philippines)

RIDA Research Institute of Development Assistance

(Japan)

SAPROF Special Assistance for Project Formation (an

OECF programme)

SC State Council (China)

SPC State Planning Commission (China)

TAC Technical Appraisal Centre (part of MOR)

UNDP United Nations Development Programme

USAID United States Agency for International

Development Yomiuri Yomiuri Shimbun

NOTE ON CURRENCIES

The research undertaken in compiling this volume involved a number of countries with different currencies. To make it easier for the reader these have been translated into US dollars. When the yen is used the dollar amount is given as well. US dollars are not used exclusively because the loans were actually given in yen. With the significant fluctuations that occur in exchange rates over time, the picture of Japanese ODA portrayed in dollars is radically different from the one given in yen. The exchange rates used for calculations of currencies from OECD countries are those used by DAC. As for the recipient countries, the yearly average exchange rates found in the IMF publication International Financial Statistics have been used.

APPENDIX 4.1

Time schedule for the Chonburi-Pattaya New Highway

1987

1988

1989

1990

1991

1992

Jan.

Tender closing for section 3

1 OECF agree contracts 3, 4

2 DOH notice to proceed for sections 3 and 4

3 New Japanese Government mission

4 New appraisal mission

5 Announcement of tender for section 8

Notice to contractor to proceed with section 8

Febr.

Tender

announcement, sections 5, 6 and 7

Mar.

First Interim Report of Master Plan completed

End of Road Development Study in the Central Region

DOH sign contract for sections 1 and 2

Closing of bidding for sections 5, 6 and 7

Apr.

Tenders announced for sections 1 and 2

OECF agrees sections 1 and 2

Tenders close for section 8

1987

1988

1989

1990

1991

1992

May

June

1 Formal request for money

2 Japanese Government mission

3 Appraisal mission

DOH gives notice to proceed to contractor for sections 1 and 2

July

Prior notice of second loan

Aug.

Master Plan Road Development Study in the Central Region starts

Tender closing for sections 1 and 2

Sep.

Exchange of Notes on Loan Agreement

Tender announced for section 4

1 Exchange of Notes for second loan

2 Signing of loan contract

1987

1988

1989

1990

1991

1992

Oct.

National Debt Policy Committee gives go-ahead to borrow money

Feasibility study completed

1 Closing of tenders for section 4

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