Copyright 2011,
JICA’s Contribution
towards Rebuilding Iraq
Dr. Junichi Yamada
Director General
Middle East & Europe Department
1
When the institutional framework of post conflict/vulnerable countries is largely impaired and governance is inefficient, how can donors respond to
the overwhelming needs?
2
Madrid Conference Commitments Grant Emergency
assistance USD 1. 5 billion
Complete
ODA loan Mid-term Reconstruction and Development
USD 3.28 billion USD 0.75 billion
Until Jan 2010 Starting Nov 2011
Technical Assistance
Training in Japan and neighboring countries
In kind assistance
By Mar 2011 over 4,200 participants By Aug 2011 4 Japanese Long-term Experts
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Basic Infrastructure
• Water Supply & Sewage
• Agriculture
Activation of Private Sector
• Electricity
• Transport & ICT
Strengthening Foundation for
Economic Growth
• Oil & Gas
• Petrochemicals
Substituting private
finance
Promoting private
sector-led projects
(PPP scheme)
Improving business
environment
Providing investment
promotion opportunities
Governance
Development
5
JICA’s Priorities for Iraq
Improving living
conditions
Developing non-oil
sector to create jobs
Grant Assistance Projects
6
Main Projects of Emergency Grant Aid
(a) Electricity Provision of 23 mobile substations throughout Iraq $ 70 million
Rehabilitation of Taji Gas Turbine Power Station (Unit No. 2,3 & 5) $ 66 million
Rehabilitation of Mosul Gas Turbine Power Station (Unit No. 1 & 3) $ 42 million
Rehabilitation of Mosul Hydroelectric Power Station $ 52 million
Construction of a diesel power station (60 MW) in Al-Samawah $ 118 million
(b) Health / Medical care Rehabilitation of and provision of equipment to 4 general hospitals in the South (Nasiriyah, Najaf, Diwaniyah, and Samawah) $ 51million
Rehabilitation of and provision of equipment to 4 general hospitals in the North (Kirkuk, Arbil, Mosul, Dahuk) $ 68 million
Rehabilitation of and provision of equipment to 3 general hospitals in the Central Region (Baghdad, Amarah and Kut) $ 46 million
Provision of 700 ambulances nationwide $ 53 million
Provision of medical equipment to 32 primary health centers in Al-Muthanna Governorate $ 8 million
(c) Water / Sanitation Provision of compact units to the city of Baghdad $ 55 million
Provision of special vehicles for garbage disposal and sewage cleaning throughout Iraq $ 57 million
Provision of equipment for solid waste management such as garbage collection vehicles and containers to the city of Samawah $ 6 million
(d) Employment / Infrastructure Improvement of trunk communications network $ 65 million
Improvement of transit switches for telecommunication $ 33 million
(e) Security (approximately $ 100 million) Provision of police vehicles $ 25 million
Provision of 20 armored vehicles to Baghdad and Al-Muthanna Governorate $ 5 million
Provision of 150 police buses and 500 police motorcycles $ 24 million
Provision of fire-trucks to Baghdad, Al-Basra and Al-Muthanna Governorate $ 20 million
Program for the police training in Al-Muthanna Governorate $ 4 million
Ongoing Loan
Projects
15 Strategic Projects (USD 3.28 billion) for:
• Economic Growth – oil & gas
• Private Investment Opportunities – power generation
• Improved Living Conditions – water supply
(Projects are situated throughout the country to ensure regional balance)
7 7 7
Irrigation Sector Loan
[JP¥ 9.5 bil/ US$ 86 mil]
Electricity Sector Reconstruction Project (middle
and southern Iraq) [JP¥ 32.6 bil/ US$ 281 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Electricity Sector Reconstruction
Project in Kurdistan Region
[JP¥ 14.7 bil / US$ 127 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Al-Akkaz Gas Power Plant Construction
Project [JP¥ 29.6 bil / US$ 287 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Al-Akkaz Gas Power Plant Construction
Project [JP¥ 29.6 bil / US$ 287 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Al-Akkaz Gas Power Plant Construction
Project [JP¥ 29.6 bil / US$ 287 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Basrah Refinery Upgrading Project
(E/S) [JP¥ 2.1 bil/ US$ 18 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Deralok Hydropower Plant Construction
Project [JP¥ 17.0 bil / US$ 165 mil]
Water Sector Loan Project in Midwestern
Iraq [JP¥ 41.3 bil / US$ 401 mil]
Al-Akkaz Gas Power Plant Construction
Project [JP¥ 29.6 bil / US$ 287 mil]
Port Sector Rehabilitation Project
[JP¥ 30.2 bil / US$ 272 mil]
Crude Oil Export Facility Reconstruction
Project [JP¥ 50.1 bil/ US$ 432 mil]
Khor Al-Zubair Fertilizer Plant Rehabilitation
Project [JP¥ 18.1 bil/ US$ 156 mil]
Basrah Water Supply Improvement
Project [JP¥ 43 bil / US$ 370 mil]
Samawah Roads and Bridges Construction
Project [JP¥ 3.3 bil/ US$ 30 mil]
Al-Mussaib Thermal Power Plant Rehabilitation
Project [JP¥ 36.8 bil/ US$ 331 mil]
Baghdad Sewerage Facilities Improvement
Project (E/S) [JP¥ 2.1 bil / US$ 19 mil]
Water Supply Improvement Project in Kurdistan
Region [JP¥ 34.3 bil / US$ 303 mil]
Outline of Ongoing Projects
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No. Amount
($ Mil.)
Project Description
1 272 Port Sector Rehabilitation
Project Reconstruction of the Port of Umm-Qasr and surrounding areas by dredging the shipping lanes, removing wrecked ships, and
rehabilitating the port facilities, as well as providing equipment and materials such as dredgers and other related items.
2 86 Irrigation Sector Loan Provision of irrigation drainage pumps, and equipment and materials for maintaining the operation of irrigation channels in the
areas where agriculture is important including the Governorate of Al- Muthanna.
3 331 Al-Mussaib Thermal Power
Plant Rehabilitation Project Rehabilitation of the existing unit 1 and unit 3 Al-Mussaib thermal power plants, located in the suburbs of Baghdad.
4 30 Samawah Bridges and Roads
Construction Project Construction and rebuilding of bridges to cross over the Euphrates River and construction of their connecting roads in Al-
Samawah and its vicinity.
5 18 Basrah Refinery Upgrading
Project (Eng. Services) Engineering Services for construction of a new plant which will contribute to increasing the productivity of the refinement of
gasoline and other oil products in the existing refinery located in Basrah Governorate in Southern Iraq.
6 156 Khor Al-Zubair Fertilizer Plant
Rehabilitation Project Supply of urgently needed machinery for Kohr Al-Zubair Fertilizer Plant located in Basrah Governorate in Southern Iraq.
7 432 Crude Oil Export Facility
Reconstruction Project Construction of an on-shore/off-shore pipeline to export oil and installation of off-shore loading facilities in Al-Fao, Basra in
Southern Iraq.
8 281 Electricity Sector
Reconstruction Project Supply of machinery and materials for the transformation of the power supply and distribution section to stabilize the power
supply - mainly targeting the areas with high priority.
9 370 Basrah Water Supply
Improvement Project Improvement of the water supply facilities in Basrah City and its vicinity.
10 127 Electricity Sector
Reconstruction Project in
Kurdistan Region
Supply of machinery and materials for the power transformation and distribution system in Kurdistan Region (Governorates of
Dohuk, Erbil and Sulaimaniya).
11 303 Water Supply Improvement in
Kurdistan Region Improvement of the quantity and quality of the water supply in several municipal areas in the KRG region (incl. Harabja town)
through improvement of water supply facilities such as water treatment plant, water transmission facility, distribution network,
etc.
12 19 Baghdad Sewerage Facilities
Improvement (Eng. Services) Engineering Services for improving the living environment in Baghdad and water quality of the Tigris River by expanding the
Karkh sewage treatment plant and rehabilitating major pump stations in Baghdad.
13 401 Water Supply Sector Loan
Project in Mid-Western Iraq Rehabilitation and improvement of water supply facilities, such as water treatment plant, water transmission facility, distribution
network to improve the quantity and quality of the water supply in Mid-Western Iraq (Anbar, Salah al-Din, Ninewa)
14 287 Al-Akkaz Gas Power Plant
Construction Project Construction of a new gas-fired power plant and related facilities in Anbar to improve the electricity supply situation.
15 165 Deralok Hydropower Plant
Construction Project Construction of a new hydropower plant and related facilities in Duhok governorate to improve the electricity supply situation in
Kurdistan region.
Japan’s ODA loan commitments for new projects after November 2011:
• Basrah Refinery Upgrading Project (42.4 billion Yen; 478.9 million USD)
• Baiji Refinery Upgrading Project (E/S) (2.1 billion Yen; 23.7 million USD)
• Communications Network Development Project for Major Cities (11.7 billion Yen; 132.2 million USD)
• Health Sector Reconstruction Project (10.2 billion Yen; 115.2 million USD)
Total: 4 projects
(66.4 billion Yen; 750 million USD)
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Baiji
Basrah
Mosul
Reconstruction for
Sustainable
Development
Supervising and Monitoring Project
Implementation
Strengthening Supervision in Iraq
• Baghdad Office (2003, 7 Japanese Staff since 2011)
• Erbil Office (2009)
ODA Monitoring Committee
• Meets every quarter in Baghdad
• Chaired by Dr. Thamir Al-Ghadban, of Prime Minister’s Advisory Committee
• Includes responsible officers from all projects, Ministry of Finance, Ministry of Planning, JICA Iraq Office, JICA Headquarters and Embassy of Japan in Iraq
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Low Institutional Capacity • New Government
• Loss of Human Resources
• Minimal Experience in International Business
Challenges to Operations in Iraq
Our Approach to these
Challenges
Deteriorating Security • Limited Access to Project Sites
• Poor Transparency in Implementation
(1) Human Resources Development in Japan or Neighboring Countries
13 Management of container terminal at Hakata Bay
Capacity development for 4,226 Iraqi governmental officers (JFY2003-2010)
Field visit to a hydropower plant in Japan
Energy
984
Agriculture
862
Public Works &
Utility
800
Health
652
Planning
&
Governance
639
Human
Resources
181 Others
241
Program for Good Governance
National reconciliation and democratization assistance
Iraq-Japan Knowledge Sharing Seminar (Secretariat for the National Diet)
Training for administrative officials
Seminar for Iraqi Government Officials (Presidency Council/ Prime Minister’s Office)
ODA seminar (Project Managers of Japanese ODA Loans)
WTO(Ministry of Planning and International Cooperation/Ministry of Trade/Ministry of Finance and others)
Training for Security Authorities
Police Officers (Ministry of Interior)
Law Enforcement Body in Basrah (Ministry of Interior and others)
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(2) Transparency in Procurement
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Pre-Qualification
J
I
C
A
Review
and
Concurrence
• International standards (JICA’s Guidelines) are applied. • While the Iraqi side maintains ownership, transparency is assured by
JICA’s review and concurrence.
Tender documents
Tender
Evaluation of bids
Award
Contract signing
Contract documents
I
R
A
Q
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JICA and UNDP
Monitoring
on PMT Activities
(daily basis)
Monitoring Committee (M/C): Government of Iraq/Government of Japan/JICA
(quarterly basis)
(3) Rigorous Monitoring System
Procurement Management
Financial Management
Contract Monitoring
Report Monitor
Recommend Actions for
Institutional/Systematical
Development
Capacity Building
to Reduce Bottlenecks
• Periodic monitoring at high level with clear criteria. • Close monitoring of PMT activities to find actual/potential
bottlenecks to project implementation • Capacity Building/Institutional Development based on the results of
monitoring.
PMT PMT PMT PMT
(4) Collaboration with UNDP
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Oct. 2009: JICA and UNDP signed a partnership agreement to jointly monitor project implementation.
Limited Access to Project Site
• UNDP has established field offices over the country with capable Iraqi staff.
Poor Transparency
• UNDP conducts fiduciary monitoring on implementation.
Independent Third Party
• UNDP, as an independent third party, monitors the performance of PMTs and JICA in project implementation.
• Collaboration with partners to overcome challenges amidst deteriorating security. • Independent monitoring offers benefits for both donor and recipient.
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(5) Long-Distance Supervision
Case: Samawah 60 MW Diesel Power Station
Emergency Grant extended by GoJ in 2005 (JPY 12.7 billion; USD 143.5 million)
Supervision via web camera and mobile phone
Comprehensive instruction & work manuals
Results 1) Analysis of Procurement Process
19
35
127
80 78
20
67 64
113
19
139
107
0
20
40
60
80
100
120
140
160
JICA's
Concurrence of
PQ Document
PQ Evaluation Bid Evaluation Contract
Negotiation
Till 2009 2010 2011
Needs
Improvement
Needs Improvement
Days
20
Results 2) Analysis of Disbursement Rates
Billion JPY
4
14.9
25.1
0
5
10
15
20
25
30
2009 FY 2010 FY 2011 FY (Up to Jan.2012)
3. Implications for Post-Conflict/ Vulnerable
Countries
Security and governance can be strengthened through various mechanisms.
• Capacity can be developed through the implementation of in-country projects as well as personnel training in neighboring countries.
• Anti-corruption and transparency can be achieved through adherence to international rules.
Some projects can be implemented through remote systems. • Iraq’s experience can be transferred to other fragile countries like
Yemen, Syria and Libya.
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ABOT: Al-Basrah Oil Terminal
Location: 50km offshore from Fao (2.5 hours from Umm Qasr Port)
Size: Length: 1km, Width: 80m, Max 4 oil tankers can moor
Project Input: Loan for Construction of 1 New Pipeline, SPM (Single Point Mooring)
Technical Assistance for Establishment of Oil Spill Response Plan
Current Export Amount: about 1.6 million bpd (approx. 80% of Iraqi total exports)
>>> The Project will expand that capacity to 3.2 million bpd
Case 1: Crude Oil Export Facility Reconstruction
Project
• Improve productivity of existing Basrah Refinery by installing a FCC plant
• Existing Capacity
• 1st Train (Czech): Operations started in 1974, 70 thousand bpd
• 2nd Train (Japanese): Operations started in 1979 (damaged by Iranian War in 1980, operations re-started in 1991), 70 thousand bpd
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Case 2: Basrah Refinery Upgrading Project
• Iraq is an importing country for gasoline and other petroleum products. Approximately USD 1.27 billion is spent annually to import petroleum products.
• An increase of 20 million bl in gasoline is expected upon completion of the FCC plant. However, the supply/demand gap of gasoline was 40 million bl in 2009.
• Emergency grant assistance in 2003
• Grant assistance through UNDP in 2005
• ODA loan project since 2008
• Technical cooperation (training) for port management and dredging
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Case 3: Port Reconstruction
Rehabilitation of Port
• Shipwreck removal
• Maintenance dredging
• Improvement of Port Facilities
Umm Qasr Port Dredging (2003 – 2010)
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2003
Emergency
Grant Assistance
Old Port (South)
2005
Grant Assistance
through UNDP
Gulf to Port (85km) 2010
ODA Loan
New Port (North)
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1. Significance of Agriculture Development
• Large potential for development / investment
• Economic diversification
• (main industry in non-petroleum sector)
• Effect on job creation
2. Achievements and Future Direction • ODA Loan
• Irrigation Sector Loan: (USD 86 million) • Provision of irrigation drainage pumps, equipment and materials for
maintaining the operation of irrigation channels
• Khor Al-Zubair Fertilizer Plant Rehabilitation Project: (USD 156 million)
• Supply of urgently needed machinery to produce Kohr Al-Zubair Fertilizer
• Technical Cooperation: 4 Japanese Experts
• Agriculture Policy Advisor for Kurdistan Regional Government
• Project on Horticulture Technology Improvement and Extension: Expansion of horticulture technology suitable for local conditions and market needs
• Wheat Productivity Improvement Project for Food Self-Sufficiency:
• Technology/Knowledge Transfer on wheat seed selection, cultivation and irrigation suited for the region
Case 4: Agriculture Development