Project Management for JICA s Grant Aid. 26 October 2016
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1 Project Management for JICA s Grant Aid 26 October 2016
2 Grant Aid Project Cycle Request by the government of recipient country for Grant Aid Preparation of study Selection of consultant Dispatching of study team by JICA Preparation Stage Appraisal by the government of Japan Cabinet approval Exchanging Binding Documents Implementation of Project Evaluation and Follow-Up Evaluation & Follow-Up Stage
3 Binding Documents for Grant Aid 1. Exchange of Notes (E/N) An inter-governmental agreement for extending the Grant between EOJ and MOFA (GOI) 2. The Grant Agreement(G/A) Contract signed between JICA and MOF (GOI) Define the details of the execution of the Grant Article : (1) Amount and Purpose of the Grant (2) Availability of the Grant (3) Use of the Grant (4) Administration of Grant (5) General Terms and Condition (6) Other Obligations of the Recipient (7) Heading Schedule 1: Details of the Project (Objective, Location, Scope of Work) Schedule 2 : Details for Procurement Schedule 3 : Disbursement Procedure Schedule 4 : Obligations of the Recipient 3
4 Major Undertakings by the Recipient Government (E/N, G/A) To secure land, electricity, water and other facilities necessary for a grant aid project To bear the commissions related to bank payment To ensure prompt unloading, customs clearance and internal transportation of goods To support smooth entry and stay of Japanese nationals related to the project To exempt Japanese nationals related to the project from customs duties, internal taxes, etc To ensure proper maintenance and use of equipment procured under the grant To bear all expenses other than those covered by grant aid, necessary for the project To give due environmental and social consideration in the implementation of the Project
5 Type of Contract General Type General Project Enhancement of Vessel Traffic System in Malacca and Singapore Straits (MOT) Project for Construction of Bridges in the Province of NTB Phase 3 (MOPW&H) Project for Strengthening the National Laboratory for Controlling the Highly Pathogenic Avian Influenza and Other Emerging and Re-emerging Infectious Diseases (MOH) Fisheries, Cultural Cooperation, Environmental Programs, Disaster Prevention and Reconstruction (project), Counter-terrorism & Security Agent Type Disaster Prevention and Reconstruction (equipment) Project for Improvement of Equipment for Disaster Risk Management (BMKG, LIPI) Counter-terrorism & Security, Community Empowerment, Under privileged Farmers (KR2),Environmental Programs, 5
6 General Type Contract Client Agreement/Contract verified by JICA Japanese Consultant recommended by JICA Supervision Japanese Suppliers selected by tendering Client shall conclude the Agreement/ Contracts with the Consultant/ Suppliers and its Agreement/ Contracts to be verified by JICA. Consultant and Suppliers are confined to Japanese nationals or Japanese juridical persons. Equipment and material are basically confined to Japanese and/or recipient country's products. 6
7 Financial Flow (General Type) JICA pays the Fund to the Recipient Account opened to the Bank in Japan. Through the Bank in Japan, the Consultant and the Suppliers can receive the fund based on the conditions clarified in the Authorization to Pay (A/P) JICA Gov. of Japan (MOFA) \ Request Request Bank in Japan Recipient Account \ Banking Arrangement B/A Authorizatio n to Pay A/P Recipient (Client) Execute the Work Consultant Suppliers Contract 7
8 Financial Flow of Grant Aid (General Type) 11. Execution of the Grant Government of Japan JICA 10.Request for the Grant 1. Signing of E/N 2. Signing of G/A 5. Verification of 4 Contract 3. Open Account B/A 7. Issue of A/P Government of recipient country 4. Contract 6. Send verified contract Grant Account Agent Bank in Japan 8. Notification of A/P 9. Request for 12. Japanese (1)Consultant (2)Contractor / Supplier
9 Feature of Grant Aid (Agent Type) Client Agreement agreed by JICA Procurement Agent appointed by MOFA (GOJ) Supervision Contract Japanese Consultant recommended by JICA Local Suppliers selected by tendering The Client concludes an employment contract with the Agent to act on behalf of the Client, and the Agent Agreement to be approved by JICA. Agent to be appointed by MOFA. JICS, CA, UNOPS As a general rule, the Consultant may be Japanese nationals recommended by JICA. In principle, firms for construction works shall be of recipient country or of Japanese Nationality. 9
10 Financial Flow (Agent Type) -After BDA, Managed and Paid by the AGENT- JICA pays all the fund to the Recipient Account immediately after received NOA (Notification of the Opening the Account) and RP (Request for ) from the Recipient. Based of the BDA (Blanket Disbursement Authorization), the Agent Bank in Japan transfer all the fund to the Agent s Account. Trough the Agent, the Consultant/ Suppliers can receive the fund based on the conditions clarified in the Contract between the Agent and Consultant/Suppliers. JICA Gov. of Japan (MOFA) \ Agent Account Bank in Japan Contract NOA and RP Recipient Account \ Agent Execute the Work Disbursement \ B/A BDA Consultant Suppliers Recipient (Client) Agent Agreement 10
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