Japan International Cooperation Agency

Established as an Incorporated Administrative Agency under the Act of the Incorporated Administrative Agency – Japan International Cooperation Agency (Act No. 136, 2002), JICA aims to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions.

JICA is part of Japan’s official development assistance effort, with a role in providing technical cooperation, capital grants and yen loans. JICA’s core development programs (aid modalities) are technical assistance programs/projects for capacity and institutional development, feasibility studies and master plans.

A variety of organizations and groups, including governments as well as international organizations, non-governmental organizations (NGOs) and private companies, carry out financial assistance to developing countries for socioeconomic development. ODA, as defined by the Development Assistance Committee (DAC) of the Organization for Economic Co-operation and Development (OECD), must meet the following three requirements:

・ It should be undertaken by governments or government agencies
・ The main objective is the promotion of economic development and welfare in developing countries
・ It has concessional terms, having a grant element of at least 25%

Note: The grant element measures the concessionality or “softness” of financial terms of a loan. The lower the interest rate and the longer the maturity period, the higher the grant element, which means it is more beneficial to the borrower. The grant element for a grant is 100%.

ODA is broadly divided into bilateral aid, in which assistance is given directly to developing countries, and multilateral aid, which is provided through international organizations. JICA provides bilateral aid in the form of Technical Cooperation, Japanese ODA Loans and Grant Aid.