Japan's Official Development Assistance White Paper 2007


Main Text > Part II ODA DISBURSEMENTS IN FISCAL YEAR 2005 > Chapter 2 Details about Japan's ODA > Section 2. Measures for Each of the Priority Issues > 4. Peacebuilding > (1) Iraq

(1) Iraq

It is essential that the international community, including Japan, continue the assistance for Iraqi nation building to realize a peaceful and stable Iraq. It is extremely important not only for the people of Iraq, but also for the peace and stability of the Middle East and the international community that Iraq rebuild itself as a peaceful democratic country while ensuring its sovereignty, unity, and territorial integrity. This is a matter of direct concern to the national interest of Japan, which imports from the Middle East nearly 90% of its oil resources.
    To date, Japan has conducted the reconstruction assistance of Iraq by combining the human contribution of Self-defense Forces (SDF) and development assistance as an "inseparable pair." Regarding assistance by the SDF, the Japan Ground Self-Defense Force engaged in humanitarian reconstruction assistance including the reconstruction and development of public medical, water provision, and school facilities centered in Samawah from the beginning of 2004 until July 2006. Transport assistance for personnel and goods from the UN and allied forces by the Japan Air Self-Defense Force continues to be provided.
    To assist the country through development assistance, Japan pledged at the Madrid Conference for Reconstruction of Iraq held in October 2003 to provide US$1.5 billion in grant aid for immediate needs, placing focus on rebuilding the foundations of the Iraqi people's livelihood in areas such as power generation, education, water and sanitation, health care, employment, as well as improvement of security. To assist the medium-term reconstruction, Japan pledged to provide up to US$3.5 billion primarily through yen loans, focusing on infrastructure development in fields such as electricity and transportation. All the expenditure purposes of the US$1.5 billion in grant aid had been already decided and were steadily implemented. Furthermore, with regards to yen loans, an Exchange of Notes was signed with the Iraqi Government to provide US$2.1 billion by July 2007 for 10 projects covering the sectors of power, transportation, oil, and irrigation. Amongst the severe circumstances in Iraq, including the intensifying dispute between religious and ethnic groups, it has also been decided to newly provide around US$100 million in grant aid for projects in the sectors of basic human needs, safety, and human resource development in order to assist the Iraqi Government, which is currently making nation building efforts. Such assistance supports not only economic and social reconstruction but also the political process in Iraq.

<Bilateral Assistance>
Japan's direct assistance through grant aid to Iraq's government agencies has reached approximately US$900 million in total. Among the emergency grant aid decided upon in sequence to date, nine equipment provision projects including provision of police vehicles, fire trucks, equipment for solid waste management, as well as provision of Equipment for Solid Waste Management in Samawah were completed. Facilities improvement projects such as rehabilitation of general hospitals in northern and central regions in Iraq and provision of mobile substations were completed. Results of this assistance are beginning to be felt on the ground.
    Regarding loan aid, after discussion with the Iraqi side and conducting various studies, Exchange of Notes between the Iraqi Government and Japan were signed regarding funds (approximately US$2.1 billion) necessary to implement 10 projects in the sectors of power, transportation, oil, and irrigation by July 2007.
    Furthermore, in order to address Iraq's debt problems, an agreement was reached in 2004 at the Paris Club that 80% of Iraq's total Paris Club debt of US$36.2 billion be reduced over three stages. Based on this agreement an Exchange of Notes was signed in November 2005 between Japan and Iraq, which would reduce Iraq's total debt owed to Japan of approximately US$7.6 billion (Japan is the number one creditor nation to Iraq) by 80% in total over the three stages. The debt reduction schedule works in tandem with International Monetary Fund (IMF) assistance programs, and as of October 2007, has progressed to the second phase.

<Capacity building Assistance>
Based on the perspective that human resource development is important in advancing steady reconstruction efforts, Japan has been assisting capacity development of Iraqi administrative officials and engineers in various areas through training programs. As of November 2007, approximately 2,000 Iraqis received training in Japan and in Iraq's neighboring countries such as Egypt and Jordan.
    Under cooperation with Egypt, for example, assistance was provided for the reconstruction of the medical sector in Iraq, placing focus on personnel development for areas of high demand such as pediatric care, and the training of close to 500 Iraqi health care professionals is conducted at Cairo University and other medical institutions in Egypt. Third-country training is also held in Jordan to train more than 770 relevant Iraqi personnel with the cooperation of related Jordanian institutions in areas of power generation, statistics, water resource management, water supply and sewage systems, museum and ruins management, and ICT education. Moreover, from March 2007 the National Reconciliation Seminar began with the participation of representatives from Iraq's various religious and ethnic groups along with the Iraqi minister of state in charge of national reconciliation, in order to promote national reconciliation, which is currently an outstanding issue in Iraq.

<Assistance to the Province of Al-Muthanna>
In the Province of Al-Muthanna, the central city of which is Samawah, the Government of Japan has provided assistance of more than US$200 million in total through development assistance in the forms of grassroots human security grant aid and emergency grant aid in coordination with the activities of the SDF. In particular, the Government has placed priority on the following issues: provision of safe drinking water; stabilization of the electricity supply; provision of basic medical services; improvement of sanitary conditions; improvement of the educational environment; maintenance of community roads; creation of employment opportunities; restoration of public safety for people's lives; and development of human resources.
    In the electricity sector, the Government decided to provide emergency grant aid to the Project for Construction of Diesel Power Station in Samawah in May 2005. This project will enable the provision of enough electricity to meet approximately one-third of the total demand for electricity in the Province of Al-Muthanna (200MW). In the water supply sector, the implementation of grant aid for grassroots human security projects72 is providing approximately five liters of safe drinking water per day per capita in the governorate.
    Some specific examples of cooperation with the SDF through development assistance are that SDF medical officers provided instruction on the use of the medical equipment provided, and that the roads graveled by the SDF were paved with asphalt. Furthermore, loan aid was provided to help build a new bridge and reconstruct two bridges and to help rebuild irrigation facilities in Al-Muthanna Province.

    Chart II-26. Japan's Assistance to Iraq (Assistance obligated as of November 2007)

Chart II-26. Japan's Assistance to Iraq (Assistance obligated as of November 2007)


<Assistance through NGOs>
Japan also provides assistance through NGOs in fields like medical care, education and water supply for humanitarian and reconstruction efforts in Iraq, the total of which is approximately US$27 million as of November 2007. Of this figure, close to 90% of the total assistance, which corresponds to around US$24.9 million, is reserved for projects for the reconstruction of Iraq, and was contributed to the Japan Platform (JPF). Through this contribution, a total of 17 projects were underway by May 2007 via NGOs comprising the JPF, including three emergency reconstruction projects for internally displaced persons, returnees, and inhabitants in the northern part of Iraq; a project for the restoration of primary and secondary schools in Baghdad; and assistance for medical care in the northern region.
See Section 6 for JPF

    Aside from this, Japan provides assistance to Japanese NGOs which are not under the Japan Platform as well as to international NGOs.73 Initiatives implemented through Japanese NGOs to date include provisions of medical equipment like incubators for newborns to Samawa Maternal Hospital and the provision of educational materials for the Samawah Nursing High-School. Moreover, Japan proactively provides assistance to humanitarian and reconstruction endeavors in Iraq through international NGOs. Examples of this include the provision of pharmaceuticals and medical supplies to Baghdad's Al-Yarmouk Teaching Hospital and supplying water by renting water tank trucks to those residents in regions of the Province of Al-Muthanna not receiving water through water pipes.

    Chart II-27. Assistance for the Reconstruction of Iraq through the Japan Platform

Chart II-27. Assistance for the Reconstruction of Iraq through the Japan Platform*

Hospital Assistance by Private Japanese Enterprises

In the 1980s, 13 regional hospitals in Iraq were provided with medical equipment by Japanese enterprises. A portion of said assistance was provided through yen loans; however, the aging of hospital and medical equipment was severe due to the Gulf War and many years of economic sanctions, making basic treatment difficult. In response to this situation, Japan is providing and installing hospital and medical equipment with the objective of restoring said hospitals through emergency grant aid provided to the Iraqi Ministry of Health in 2004. However, as it is not possible for Japanese to enter Iraq due to deteriorating security, these efforts have been completed via a "remote handling system," whereby local Iraqi technical experts utilize all methods of communication — including telephone, FAX, and email — to communicate with individuals residing in Jordan, including Japanese technical experts, who specialize in the relevant equipment. The Iraqi Ministry of Health and hospital personnel have expressed their gratitude for these efforts by saying, "The same Japanese that once built these hospitals are now contributing again to their restoration."

<Promotion of International Cooperation and Assistance through International Organizations>
Based on the perspective that the promotion of international cooperation is important in the reconstruction assistance to Iraq, Japan extended US$490 million74 to the International Reconstruction Fund Facility for Iraq (hereinafter IRFFI), whose establishment was agreed upon at the aforementioned Madrid Conference. Through this contribution, Japan supports various reconstruction projects implemented by UN organizations and the World Bank. Besides contributing on the financial side, Japan also served as the chair of its Donor Committee for one year in 2004 as the largest contributor to the IRFFI. Aside from its contributions to IRFFI, Japan also conducts assistance through international organizations on the order of US$200 million.
    Japan will continue to put forth efforts in promoting international coordination toward the reconstruction of Iraq.

<Future Assistance>
In Iraq, official government was inaugurated on May 20, 2006 as a result of the Iraqi National Assembly election held in December 2005. In May 2007, the International Compact with Iraq — a compact that stipulates the cooperative roles of the Iraqi Government and international society in a wide range of sectors, including politics, safety, economics, and society — was established in Sharm al-Sheikh, Egypt at a ministerial-level meeting attended by 74 national delegates and organizations. It is important that the international community lend assistance for the future reconstruction process so as to allow the Iraqi Government to have more independent and autonomous efforts under such broad endorsement of the international community.
    Regarding Japan's assistance, Japan will provide assistance for the reconstruction efforts of the Iraqi Government mainly through loan aid. Bearing in mind close collaboration with its financial cooperation, Japan will also continue to provide assistance to capacity development through trainings. In this way, Japan will continue to actively support the Iraqi people's efforts to rebuild their country.