Summary of the FY 2019 MOFA ODA Evaluations
Evaluation of Japan's Non‑Project Grant Aid for Provision of Japanese Next-Generation Eco‑Friendly Vehicles to Peru in FY 2013 (Summary)
Note: This summary was made by the ODA Evaluation Division base d on the report provided by the evaluation team.
The full text is available here:
| Evaluators (Evaluation Team) |
Chief Evaluator | Juichi Inada Professor, School of Economics, Senshu University |
| Advisor | Yasuhiro Tokoro Associate Professor, School of Commerce, Meiji University |
|
| Consultant | KPMG AZSA LLC | |
| Evaluation Period | Sept. 2019–Mar. 2020 | |
| Field Survey Country | Peru | |
Vehicles donated by Japan are used as official cars for the Ministry of Foreign Affairs of Peru.
Background, Objectives and Scope of the Evaluation
Programs for Non-Project Grant Aid are aimed at providing developing countries with the funds required to purchase materials and equipment from other countries to assist them in their efforts to pursue economic and social development measures, such as poverty reduction. One of these programs is the Non-Project Grant Aid Program for Next-Generation Vehicles, which provides Japanese next-generation vehicles with high energy efficiency and low environmental impact to promote the spread of next-generation vehicles and assist efforts in the environmental field. This initiative has also great potential as an instrument for promoting the overseas business development of Japanese companies. This evaluation is conducted to assess the Non-Project Grant Aid Program for Next-Generation Vehicles in Peru in FY 2013 (grant amount: 1.2 billion yen), for which diplomatic notes were signed in 2013, to publish the results, and to gain recommendations useful in the formulation of future projects.
Brief Summary of Evaluation Results
● Development Viewpoints
(1) Relevance of Policies
Making the most of the respective superiorities of Japan, the project was consistent with Japan's higher policies, Peru's development needs, and international priority issues. However, since a concrete goal for achieving the market development of Japanese auto manufacturers had not been set, it was difficult to determine whether the project was appropriate or not. A sufficient explanation of the specific goals and achievement criteria was not provided in the framework for the Non-Project Grant Aid Program for Next-Generation Vehicles. A more articulate explanation would be necessary to identify the policy objectives and positioning of individual projects. (Rating: Satisfactory )
(2) Effectiveness of Results
The inputs and outputs are appropriate. The next-generation vehicles are being used and maintained in a positive manner. For the outcome impact, the effects in terms of reduced greenhouse gas emissions have been calculated, and the continued high share of Japanese automakers in the Peruvian automotive market has been confirmed. However, the evaluators have found it difficult to confirm that the project has promoted the sale of conventional and next-generation Japanese cars in Peru. While the Peruvian government has proactively introduced environmental policies and environmental awareness in Peruvian society has improved, public awareness of this project appears to be low. Thus, the evaluation concludes that no specific effect of this project has been found to promote the spread of next-generation Japanese vehicles or encourage environmental initiatives. (Rating: Satisfactory )
(3) Appropriateness of Processes
The project was properly planned, and the Japanese officials understood the needs of Peru exactly. The implementation procedures were carried out correctly, ensuring its mobility and speed. In terms of the emphasis on environmental measures, the objectives and direction of the project were coherent with the projects implemented by JICA in collaboration with Peru. Thanks to the proactive public relations and information disclosures conducted by the Embassy of Japan in Peru, several local media organizations reported on the project. (Rating: Highly Satisfactory )
Note: Ratings: Highly Satisfactory / Satisfactory / Partially Unsatisfactory / Unsatisfactory
● Diplomatic Viewpoints
(1) Diplomatic Importance
In light of Japan's ODA policy and economic diplomacy policy, this project was important for bilateral relations between Japan and Peru. Given the importance of the Peruvian automobile market, this project was evaluated as being particularly important for the prosperity of Japanese companies and people.
(2) Diplomatic Impact
Despite a low level of awareness among the public, the use of nextgeneration vehicles at the 20th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 20) helped to improve Peru's image and promote environmental awareness. As the Peruvian government welcomed the project, its effect in terms of increasing Japan's presence and fostering pro-Japan sentiment in Peru has been confirmed. Furthermore, it has been confirmed that the project has had various positive impacts for Japanese companies in light of not just the volume of Japanese car sales, but also different forms of benefits to Japanese automakers from a broader perspective.
Recommendations
(1) Expansion of the Disclosure of Information on the Content of Assistance
The objectives and background of this project are not clearly described in the relevant documents released by MOFA and the Japanese Embassy in Peru, making it impossible for the Japanese public to know the necessity of this project, the partner country, the content of the grant, and whether the amount of cooperation is appropriate. Given this, it is necessary to disclose information to ensure accountability and promote public understanding.
(2) Implementation of More Proactive and Effective Information Dissemination and Public Relations in the Partner Country
In terms of promoting the market development of Japanese automakers in Peru, the evaluators confirmed that this measure had no effect as far as the Peruvian public were concerned as potential customers. The same is true in terms of the public's understanding and awareness of Japan and the presence of Japanese companies. Going forward, the adoption of measures for disseminating information by local industry groups and leveraging the publicity effect through the Japanese community should be considered as part of efforts to implement the Non-Project Grant Aid Program for Next-Generation Vehicles, which is aimed at promoting the spread of Japanese products.
(3) Publication of the Objectives and Results of the Non-Project Grant Aid Program
The objectives of the Non-Project Grant Aid Program (currently called the Social and Economic Development Program) can be difficult for the public to understand due to the change in its name and the creation of a series of sub-project frameworks that correspond to different assistance targets as well as the eventual consolidation of these frameworks. Thus, the evaluators recommended that, during the planning and implementation of this program, materials detailing matters such as the concrete content of the program, its objectives, and its targets be compiled and then disclosed to the public. Consideration needs to be given to feasible operational procedures and methods to determine the content of the materials to be disclosed and the timing of their publication.