| Part III. | ODA DISBURSEMENTS IN FISCAL YEAR 2002 | 
Japans bilateral ODA to the Middle East region in 2002 was 
  approximately $210 million, 3.1% of total bilateral ODA.
  
  Japan has been carrying out assistance in the Middle East region placing importance 
  on the following points, as stated in the medium-term policy. 
  
| (1) | Japan will provide support for the Middle East Peace Process (through assistance to the Palestinians as well as to neighboring Arab countries and support for initiatives related to multilateral negotiations, etc.). | 
| (2) | In relatively low-income countries, Japan will provide support for social and economic infrastructure development, including agricultural and water-resources development. | 
| (3) | In the relatively high-income Gulf States, Japan will provide technical cooperation for the training and education of domestic engineers for the achievement of economic diversification and the development of non-petroleum sectors and provide appropriate support for the development of a favorable environment for attracting foreign investment. | 
| (4) | Japan will provide support for environmental conservation measures in relatively high-income countries and other countries as well. | 
 Japan imports approximately 86% of its crude oil from the Middle 
  East region and is also one of the most important trading partners for many 
  of the countries in this region, and there is therefore an extremely high level 
  of interdependence between Japan and the Middle East region. The region, though, 
  contains a number of destabilizing factors relating to the Middle East Peace 
  Process and the situation in Afghanistan and Iraq, etc. and some non-oil-producer 
  countries face economic difficulties like international balance-of-payments 
  deficits and cumulative debt. Furthermore, since the September 11 terrorist 
  attacks, it has become even more important than ever to avoid instability in 
  this region. For these reasons, Japan attaches priority to assistance for maintaining 
  harmonious trade relations with this region and achieving social stability and 
  peace in the region through ODA.
  
  For countries whose development is relatively lagging behind, Japan is implementing 
  support mainly through grant aid for socio-economic infrastructure development, 
  such as development of medical facilities and medical equipment, development 
  of educational facilities, rural development, water resources development, etc. 
  Examples of this kind of support include the Project for Expansion of 
  Tuberculosis Control in the Southern Governorates in Yemen and the Project 
  for Improvement of the Water Supply System for the Zarqa District in Jordan. 
  And Japan is actively making efforts to reduce poverty through human resources 
  development in the agriculture, forestry and fishing industries, health and 
  medical services, and water resources development sectors by implementing assistance 
  focused on technical cooperation such as the Family Planning and Women 
  in Development (WID) Project, Phase 2 (20012003, technical cooperation 
  project).
  
  For countries whose development is relatively advanced, Japan is making efforts 
  to develop socio-economic infrastructure to reduce poverty and regional disparities, 
  to provide support for economic diversification through the promotion of information 
  technology (IT) and industrial development, etc. and to develop human resources 
  in sectors such as environmental conservation, etc. 
  
  Japan provided ODA loans to Morocco and Tunisia in fiscal year 2002. These projects 
  provided support considered direct poverty reduction through social infrastructure 
  development. For Morocco Japan approved the provision of financing for the Rural 
  Electrification Project (II). This project is going to develop an electricity 
  grid for approximately 88,000 households in the seven provinces in Morocco with 
  an especially large poor population and it is expected to improve the living 
  environment, revitalize the village economy, etc. and reduce regional disparities. 
  For Tunisia Japan approved the provision of financing for the Rural Water 
  Supply Project (II) and is supporting the construction of rural water 
  supply facilities and the procurement of pumps, water pipes, etc. for approximately 
  100 of the poorest counties (délégations).
  
  Refer to Part I for details about support for 
  Afghanistan.
   
|   | 
    Support for Middle East Peace | 
 On the occasion of the visit of Minister for Foreign Affairs 
  Yoriko Kawaguchi to Israel and the Palestine Autonomous Areas in June 2002, 
  she proposed the Road-map for Japans Assistance to Palestinians 
  to the Palestinian Authority based on the concept of advancing assistance as 
  progress toward peace is made. Based on this Road-map Japan has 
  been promoting efforts toward peace and providing support for nation-building 
  to establish an independent Palestinian state and in the governance sector for 
  Palestinian Authority reform. As a result, Japans bilateral ODA and assistance 
  through international organizations for Palestine amounted to approximately 
  $18.53 million in 2002. From 1993 to December 2002 Japan provided support of 
  more than $630 million to Palestine. From the perspective of the stability of 
  the Middle East region, Japan has provided support through financial cooperation 
  and technical cooperation in a variety of sectors for the Arab countries participating 
  in the Middle East Peace Process, namely Egypt, Syria, Jordon, and Lebanon.
  
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