Foreign Ministry of Japan Outline of Japan’s ODA to Pakistan April 2006 １．Back Ground 　Japan started ODA to Pakistan in 1954 with providing technical training in line with Colombo Plan, and the first yen loan was extended in 1961. After nuclear test in 1998, Japan took economic measures, suspending new yen loans and grant aid, and in October 2001, the economic measures was discontinued. Japan announced to extend two new yen loan projects to Pakistan on 30th of April 2005, which are the first case since the economic measures was discontinued. ２．Goal and Significance of Japan’s ODA To contribute to consolidating peace and stability in the entire Asia as well as the region by assisting steady development of Pakistan, which is in the process towards moderate and modern Islam and playing a crucial role as a front-line state in “fight against terrorism”. ３．Focus Area Three priority goals of Japan’s Country Assistance Program for Pakistan formulated in February 2005 (i)securing human security and human development (mainly in the area of education and health) (ii)development of a sound market economy (agricultural sector, diversification of industries, economic infrastructure) (iii)achievement of balanced regional socio-economic development (enhance economy in Karachi, development of Peshawar economic area etc.) ４．Yen Loan to Pakistan 　　Japan has supported development of infrastructure in Pakistan through yen loans in areas such as transportation and energy. The “Indus Highway Projects” is especially a symbol of friendship between two countries. On 5 January 2006, the Foreign Minister of Japan Taro Aso and Foreign Minister of Pakistan Kasuri signed and exchanged the Notes on Yen Loan for Earthquake Disaster Relief and Economic Reconstruction. As a result, accumulated total amount of yen loans to Pakistan since 1961 adds up to about 856.9 billion yen. (Kohat tunnel, Northern part of the Indus Highway) “Indus Highway Projects” Japan extended yen loans totaling 47.6 billion yen to the “Indus Highway Projects” for the construction of the 65% of the total length of the highway (745km of 1,024km) which will connect northern and southern parts of the country. Japan also provided Pakistan with yen loans totaling 12.7 billion yen for constructing Kohat tunnel (about 30km, including access roads) purposing to alleviate traffic congestion in the steep Kohat pass. Yen Loan Projects for FY2005 (total amount: about 27.6 billion yen) Lower Chenab Canal System Rehabilitation Project (E/N August 2005) The amount of Yen Loan: up to about 12.5 billion yen Irrigation plays a very important role in Pakistan which lies mostly in arid/semi-arid zone. This project rehabilitates damaged canal system in northern part of the Punjab state and assists empowerment of farmer’s organizations to be responsible for operation and maintenance of the canal. 　　 　 Load Dispatch System Upgrade Project (E/N August 2005) The amount of Yen Loan: up to about 3.8 billion yen Due to rapid expansion of electric power system in Pakistan, more reliable and accurate dispatch of the power system has been required. This project upgrades a load dispatch system for more stabilized and efficient operation in the electric power system. Yen Loan for Earthquake Disaster Relief and economic Reconstruction (E/N:5 January 2006 between Foreign Ministers) The amount of Yen Loan: about 11.2 billion yen (US$100 million) To meet the urgent financial need for reconstruction, this yen loan Is to be made available to cover payments for imported urgent materials for reconstruction. ５．Grant Aid On 5 January 2006, the Foreign Minister of Japan, Taro Aso, and the Foreign Minister of Pakistan, Kasuri, signed and exchanged the Notes on the project for the Enhancement of Training Capabilities of Construction Machinery Training Institute. Since its beginning in 1970, the accumulated total amount of grant aid to Pakistan adds up to 202.306 billion yen. The grant aid to Pakistan for FY2005 amounted to 10.013 billion yen . Projects FY 2005 (3.694 billion yen as of 5 January 2006) ○“the Project for Improvement of Water Supply System in Faisalabad (\82 million)": The project for improvement of water supply system in Faisalabad, Panjab. ○"the project for the Rehabilitation of Gates of Taunsa Barrage (\212 million)": The project for rehabilitation of the irrigation barrage which retains the Indus. ○"the project for the Improvement of the Flood Forecasting and Warning System for Lai Nullah Basin (\664 million)": The project for improvement of disaster prevention system against flood disaster caused by Lai Nullah Basin in Rawalpindi. ○"the project for the Establishment of Environmental Monitoring System (\1.238 billion)": The project for establishment of environmental monitoring system for some metropolis in Pakistan. ○”the project for the Renovation of Islamabad Children's Hospital(\647 million)”: The project for rehabilitation of Islamabad Children’s Hospital which was established by Japanese assistance. ○” the Project for the Eradication of Poliomyelitis(\721 million)”: The project for supplying vaccine necessary to eradicate of Poliomyelitis. ○ 　"the project for the Improvement of Kararo-Wadh Section of National Highway N-25 (\103 million)“: The project for improvement of a part(96km) of N-25, which connects Karachi with Afghanistan ○"the project for the Enhancement of Training Capabilities of Construction Machinery Training Institute (\27million)": The project for supplying machineries for construction and building facilities within the premises of the training institute which was established by Japanese assistance. ６． Technical Cooperation 　In the fiscal year 2004, JICA's disbursement to Pakistan (including Development Study) amounted to approximately \1.732 billion, while the total disbursement to Pakistan amounted to approximately \32.946 billion. JICA received 4,137 trainees from Pakistan and dispatched 872 experts to Pakistan as of the end of fiscal year 2004. Agreement on Technical Cooperation between Japan and Pakistan On 30 April 2005, the Governments of Japan and Pakistan signed the Agreement on Technical Cooperation with the aim to promote smooth implementation of the bilateral technical cooperation. Specific Projects The on-going technical cooperation program undertaken by JICA include (i) 'PITAC (Pakistan Industrial Technical Assistance Centre) Phase-2 (2002.9-2006.9)' which focuses on enhancing the plastic mold technology, (ii) 'Project for Improvement of Public Administration for Local Governments in Punjab Province (2004.7-2007.7)' which aims at promoting adult and child literacy, and (iii) Promotion of adult and child literacy in Punjab (2004.7-2007.7)' ODA Projects FY2005 Improvement of Water Supply System in Faisalabad (G/A) Renovation of Islamabad Children's Hospital (G/A) Load Dispatch System Upgrade Project (Y/L) Improvement of Public Administration for Local Governments (T/A) Rehabilitation of Gates of Taunsa Barrage (G/A) Improvement of the Flood Forecasting and Warning System for Lai Nullah Basin (G/A) Enhancement of Training Capabilities of Construction Machinery Training Institute (G/A) Lower Chenab Canal System Rehabilitation Project (Y/L) Promotion of adult and child literacy (T/A) PITAC Phase-2(T/A) Improvement of Kararo-Wadh Section of National Highway N-25(G/A) Establishment of Environmental Monitoring System (G/A) Earthquake Disaster Relief and Economic Reconstruction (Y/L) Eradication of Poliomyelitis (G/A) (*)G/A: Grant Aid, Y/L: Yen Loan, T/A: Technical Assistance Japan’s ODA to Pakistan （100 million yen） Fiscal Year Yen Loan Assistance Grant Aid Technical Assistance 1996 596.51 61.07 16.84 1997 320.3 57.08 13.47 1998 0 5.66 11.13 1999 0 8.56 10.99 2000 0 20.42 8.65 2001 40.32 107.83 8.75 2002 31.49 75.9 14.18 2003 0 63.13 17.99 2004 0 48.63 17.32 Cumulative amount 2005 275.82 100.13 Under calculation 　8569.00 2023.06 329.46 （ref.）Yen Loan and Grant Aid are E/N based. Technical assistance is JICA-disbursement based.