Background and Necessity of the Project Clause Samples
The "Background and Necessity of the Project" clause defines the context and justification for initiating the project. It typically outlines the circumstances or challenges that led to the project's conception, such as market demands, regulatory requirements, or organizational goals. This clause may also reference prior studies, stakeholder needs, or gaps in current processes that the project aims to address. Its core function is to provide a clear rationale for the project's existence, ensuring all parties understand its importance and the specific issues it is intended to resolve.
Background and Necessity of the Project. (1) Current State and Issues of the Electric Power Sector in Uzbekistan Uzbekistan's peak power demand reached 8,400 MW in 2014. The nation has a total rated power generation capacity of 13,324 MW at the end of 2013, but power generation facilities throughout the country are aging, and the currently available peak generation capacity of facilities within Uzbekistan is only around 7,800 MW. Thermal power plants (out of which 90% uses natural gas as fuel) generate approximately 90% of all power, and their low average thermal efficiency (around 30%) causes a major environmental impact. Against such a background, government of the Republic of Uzbekistan has formulated a plan to renew/newly install about 20 power generation units by 2030, mainly introducing the combined cycle gas turbine. And the government has repeatedly expressed strong desire to establish a long-term relationship for financial and technical cooperation. In order to deal with the challenges in the electric power sector in a comprehensive and efficient manner as well as responding to this expectation, the government of Japan has decided to conclude a comprehensive Exchange of Notes as “the Electric Power Sector Project Loan (SPL) composed of several projects, and then extend ODA loans to each infrastructure development project, at the same time combining formulation of a master plan or technical cooperation for human resource development. The implementation of this project has been defined by the Presidential Decree (PP-1943), and it is implemented as the first project in the SPL, taking into account the high priority in Uzbekistan. The Fergana region in the east part of the country, where about 30% of the population lives, has shortage of electricity, and further increase of electricity demand by about 8% year on year is expected in the region. In order to mitigate the shortage in electricity and CO2 emission, the construction of highly efficient generation facility is an urgent issue with high priority.
(2) Japan and JICA’s Policy and Operations in the Electricity Sector Japan’s Country Assistance Policy for Uzbekistan (April 2012), defines the renovation and development of economic infrastructure (for transportation and energy) as one of priority areas, and JICA country analysis paper (July 2012) also highlights development of economic infrastructure especially for transportation and power sector as a priority area, which is consistent with the objective of the Project. As for the past Japa...
Background and Necessity of the Project. (1) Current State and Issues of the Port Sector and the Project’s Position in the Republic of Indonesia The rapid economic growth in recent years in the Republic of Indonesia (hereinafter referred to as “Indonesia”) has led to an increase in the total volume of cargo. Given this situation, there are concerns regarding the country’s port congestion and logistic stagnation, with a major factor being Indonesia’s insufficient overall port capacity. In particular, the volume of cargo handled in the Jakarta Metropolitan Area has grown significantly. This is due to the fact that the area accounts for about 30% of the nation’s GDP, and accumulation of manufacturing companies and inward foreign investment is concentrated there. As the current container handling capacity of the Tanjung Priok Port (8.63 million TEUs a year; hereinafter referred to as “the Existing Port”), which processes over 90% of the Jakarta Metropolitan Area’s total volume of cargo, is likely to fail to meet the area’s container-handling demand for 2025 (forecast at 10.24 million TEUs), construction of a new port is required, especially since the port’s existing extension plan is not scheduled to be completed until after 2030. Furthermore, given the area’s road traffic congestion, it is a pressing priority to construct a new port in the outskirts of the city, thus expediting cargo transportation and dispersing cargo traffic in the metropolitan area. Another problem is that the Existing Port does not provide adequate space for container depot and logistics purposes in the backup area. That is why construction of a new port with a spacious backup area that can offer sufficient depot space is highly anticipated among Japanese companies, including many automobile-related companies operating in the industrial park in the eastern part of the Jakarta Metropolitan Area. Under such circumstances, the Ministry of Transportation of Indonesia conducted a study to figure out where to establish the new port in 2015, and proposed the Patimban area in Subang Regency, West Java, at the top of the list of prospective new development sites. Following the issue of a presidential decree on the development of the Patimban Port (hereinafter referred to as “the New Port”) in May 2016, the ministry created a master plan for the New Port in January 2017. This plan positioned the New Port to serve as Indonesia’s “principal port,” functioning as a key trading location in the country. At the same time, the Government of Indo...
Background and Necessity of the Project. (1) Current State and Issues of the Electricity Sector in Iraq The long-term economic sanctions and conflicts had been devastating the economic and social environment of Iraq. However, after the Iraq War in 2003, the country is finally undergoing reconstruction and development with the support from the international society. The electricity sector is the foundation of various activities of the economy and society, and it is essential for the reconstruction of Iraq. However, due to years of lack of new investments/maintenance management and plunder, the functions in all sub-sectors, such as power generation, transmission, transformation, and distribution, have been extremely deteriorated until today. The average daily power supply which was 9,000 megawatts (MW) in 1990s was declined to lower than 3,000MW right after the Iraq War. After the war, with the support from international society, the Government of Iraq has been making effort for the reconstruction of the electricity sector as one of the priority areas. However, the power supply had recovered only up to 5,500MW as of 2009, while the average daily demand is 12,000MW, and long unplanned power outage are forced regularly accordingly. Thus the reconstruction of the electricity sector in Iraq, especially the improvement of power generation capacity, is one of the top priority issues.
(2) Development Policies for the Electricity Sector in Iraq and the Priority of the Project In the Third National Development Strategy by the Iraqi Government in February 2007, the following four pillars for the post-war reconstruction and national development for 2007-2010 were announced; 1) Strengthening foundations of economic growth, 2) Revitalizing the private sector, 3) Improving the quality of life, and, 4) Consolidating the good governance security and stability in the country. The prioritized target of this strategy includes reduction of unplanned outage hours, fulfillment of power-supply demand, improvement of power generation performance, and expansion of transmission/transformation performance.
(3) Japan and JICA’s Policy and Operations in the Electricity Sector At the International Conference on Reconstruction in Iraq held in Madrid, Spain in October 2003, the Government of Japan announced up to 5 billion US$, that consists of 1.5 billion US$ in grant aid in reply to the emergency reconstruction demand of Iraq, and up to 3.5 billion US$ in ODA Loans to meet middle-term reconstruction demand. Since “Revitalizing ...
Background and Necessity of the Project. (1) Current State and Issues of the Power Sector in Bangladesh In the People’s Republic of Bangladesh (hereinafter referred to as “Bangladesh”), the electrification rate and annual per-capita electricity consumption are very low, at approximately 62% and 321kWh, respectively (as of 2013). With rapid economic growth in recent years, the power demand is projected to continue to grow at around 8.5% per annum to reach 33,708MW by 2030 (estimated in 2010); nevertheless, the maximum power supply capacity has remained at around 80% of the demand (in FY 2012-2013, the actual maximum power supply capacity was 6,350MW while the potential peak power demand was 8,349MW), which leading to regular planned power cuts. Currently, approximately 70% of electricity is generated by gas-fired thermal power plants using domestic natural gas; however, there is a need to diversify the energy sources because of the growing demand for domestic gas and the elevated risk of running out of it in recent years. Against this backdrop, the Government of Bangladesh has formulated the Power System Master Plan 2010, according to which the Government is planning to developthe deep-sea port to import natural gas, coal and other fuels and construct power plants using these imported sources of energy in the Chittagong Division. While the power generation capacity in the division is expected to continue to expand in years to come, this electricity needs to be transmitted to the Dhaka Metropolitan Area (accounting for around 50% of the demand for electricity), for securing a stable supply of high-quality electricity is a key to sustainable economic development in Bangladesh.
(2) Development Policies for the Power Sector in Bangladesh and the Priority of the Project As the most important national development strategy, the Sixth Five Year Plan (from FY2011-2012 to FY2015-2016) identifies the power sector as one of the most important areas for economic development leading to poverty reduction. The Power System Master Plan 2010 aims to raise power generation capacity as well as develop and expand high-voltage transmission networks. The Master Plan also points out the necessity of transmitting power to the Dhaka area, where there is a high demand for electricity, from other areas. Meanwhile, the Bangladesh Climate Change Strategy and Action Plan 2009 outlines a course of action to develop infrastructure that can improve the efficiency of power generation, transmission, and distribution in order to crea...
Background and Necessity of the Project. (1) Current State and Issues of the Water Supply Sector in Bangladesh In Bangladesh, the safe and stable supply of water has not been fully achieved. Access to safe water for the people of Bangladesh showed great improvement in the 1990s, however, the rate of achievement as of 2005 remains at approximately 70% as the effects of arsenic contamination became obvious. Bangladesh relies for 90% of its drinking water on groundwater, but the Government of Bangladesh has established a policy of promoting the improvement of water supply through the development of surface water due to the serious arsenic contamination of groundwater and lowered groundwater levels in large cities, in particular in Dhaka. Therefore, the full-scale development of water supply systems using surface water is becoming an issue to be resolved. The percentage of population covered by the piped water supply system as of 2005 remains at 39% even in urban areas (major cities and medium-sized cities).
(2) Development Policies for the Water Supply Sector in Bangladesh and the Priority of the Project Safe water and sanitation are raised as one of the primary issues in the Poverty Reduction Strategy Paper (PRSP), which is positioned as the top priority for the national development strategy and the National Strategy for Accelerated Poverty Reduction II, which was recently revised. With the achievement of the UN Millennium Development Goals in mind, the Government of Bangladesh has set a goal whereby all of the people in the nation can have access to safe water by 2011. In the National Water Resource Management Plan (2004) and the Sector Development Program (2005), etc., it is planned to promote the improvement of access through improvements in water supply systems corresponding to the increase in the population in urban areas and the securing of alternative water resources in areas where access to safe water is difficult due to arsenic contamination, in rural areas in particular. Especially in urban areas, the achievement of a coverage rate for piped water supply of 90% by the year 2025 has been set for four major cities (Dhaka, Chittagong, Khulna and Rajshahi) based on the need to secure sufficient water supplies to satisfy the demand that is expected to keep growing in the future and to build systems to effectively provide water services.
(3) Japan and JICA’s Policy and Operations in the Water Supply Sector In the light of Japan’s Country Assistance Program for Bangladesh (May 2006), JICA has po...
Background and Necessity of the Project. (1) Present State of Development and Problems of the Road Sector in Cambodia Due to slow progress in railway network development in Cambodia, road transportation plays a central role in domestic transportation. Cambodia is located between Thailand and Vietnam. The territory is also located in the heart of the Southern Economic Corridor, where initiatives to strengthen connectivity are being promoted under the Master Plan on ASEAN Connectivity approved at the 2010 ASEAN top-level meeting. Because of its location, Cambodia is expected to become a regional distribution hub. Cambodia is making a progress in rehabilitating its transportation infrastructure since the civil wars ended in 1991 with help of the international community, including Japan, World Bank and Asian Development Bank. Rehabilitation and construction on the core part of its road and bridge infrastructure has almost been completed for the first time during the post-war period. However, some further rehabilitation is still needed due to aged parts and makeshift repairs after the civil war and the narrowness of the roads in order to cope with the increase in domestic and international logistics in line with expected future economic growth in the country. In particular, Cambodia’s arterial national road No.5 is a part of Asian Highway Route No.1 and the Southern Economic Corridor, so it is expected to function as a main industrial artery of the Mekong region. Despite the temporary repairs done on the project section, road quality is inferior and traffic volume is steadily increasing. Therefore, enhancing transportation capacity and improving transportation efficiency have become pressing issues in the race to cope with increased domestic and international freight given expected future economic development in Cambodia.
(2) Development Policies for the Road Sector in Cambodia and the Priority of the Project The government of Cambodia has defined rehabilitation and construction of infrastructure as one of the four pillars of its 2014-2018 National Strategic Development Plan (NSDP). In this context, the Cambodian government defined improvement of traffic networks and the building of intermodal freight transport networks as priority areas. Under the National Road Network Master Plan (M/P) formulated in 2006 with the help of JICA, the improvement of national road No. 5 is defined as a priority project, since the project is considered contributory to national and regional integration as part of the South...
Background and Necessity of the Project. (1) Current State and Issues of the Power Sector in Bangladesh Bangladesh’s electricity demand has been increasing in accordance with the recent economic growth, whereas the country’s per capita electricity consumption is 252 kWh in 2009 remaining at the lowest level in the world. Electricity supply in Bangladesh is not sufficient with the demand increase, and the supply capacity remains 80% of the demand (5,271MW of installed capacity for electricity supply compared to 6,454MW of electricity demand in peak time). Moreover, all gas-fired generation plants accounting for 80% of the whole installed capacity of power generation rely on natural gas produced in the country, and diversification of energy resources is therefore needed. The household electrification rate in Bangladesh is 50 percent (2012), making the country the second in South Asia after India in terms of its non-electrified population at approximately 95 million people. Looking at the electrification rate in Bangladesh by region, rural areas are merely at 35 percent, compared to 90 percent in urban areas, making the need for electrification particularly high in rural areas. Moreover, the existing customers have frequently experienced voltage fluctuation and sudden power outage in off-peak time due to the lack of transmission and distribution capacity and failure in electric equipment, etc. Based on above, the challenge in the power sector is to facilitate increase of power supply capacity through development of new power sources and efficient operation of existing equipment, in addition to promote diversification of energy resources including introduction of renewable energy and local electrification at the same time.
(2) Development Policies for the Power Sector in Bangladesh and the Priority of the Project In the “Sixth Five Year Plan” (FY 2011 – 2015), as a measure for the worldwide depletion of fossil fuels and for consideration of the environment, the Government of Bangladesh has set a goal of increasing the amount of renewable energy to 5% of all its electrical power by 2015. In addition, in the “Policy Statement on Power Sector Reform (2000)”, the following three goals are set as a long-term vision of the power sector: (a) securing of the supply capacity so that all citizens can use electricity by 2020; (b) reliable electricity supply; and (c) electricity supply at appropriate prices. The Government of Bangladesh put a high priority on the Project as it is in accordance with these goals.....
Background and Necessity of the Project. (1) Current State and Issues of the Railway Sector in Bangladesh Bangladesh possesses the railway transportation network of 2,877km in total. However, most facilities and equipment were developed during the British colonial rule (prior to 1947), and the deterioration causes speed/weight limit, delay in operation and vehicle failures. Advantages of the railway transportation, such as the fixed quantity, punctuality, mass transportation, safety and energy saving nature, are not fully demonstrated. As a result, while the road transportation has been rapidly expanding after 1970s, the percentage of the railway transportation in all transportation modes decreased to less than 10% in recent years. Moreover, the container transportation is expected to increase in the future along with the stable economic growth of Bangladesh and neighboring countries. Expectations towards the railway transportation are thus high. Jamuna Railway Bridge Construction Project (hereinafter referred to as “the Project”) covers the construction of a railway bridge (double-track, broad/narrow dual-gauge) at 300m upstream of the Jamuna Multi-purpose Bridge (hereinafter referred to as “the existing bridge”) across the Jamuna River which flows through the central country. The existing bridge is equipped with a railway (single-track, broad/narrow dual-gauge) which was not initially planned, as the demand for international and domestic railway transportation was expected to increase as a part of Trans-Asian Railway which leads to neighboring India. However, the separation of the railway part is urgent due to various issues, such as 1) limited train capacity caused by the single track, and 2) limited speed/weight caused by the fact that the railway, which should be laid on the center of the bridge, was laid on one side (upstream). After the construction of the railway bridge, the existing bridge will be renovated into a 4-line road bridge at the expense of the Government of Bangladesh.
(2) Development Policies for the Railway Sector in Bangladesh and the Priority of the Project In National Integrated Multimodal Transport Policy (2013), the Government of Bangladesh expressed its policy to strengthen the railway transportation in order to decrease the reliance on road transportation. In the Railway Master Plan (2013), it also expressed its will to prioritize the implementation of the Project which would contribute to the international railway transportation as a part of Trans-Asian Railway. Japa...
Background and Necessity of the Project. (1) Current State and Issues of the Forest Sector in India India’s forest coverage rate stood at 23.81% (2011), which is lower than the global average of 31% (2010). While many people including those living in poverty depend on forest for fodder, fuel and income, the negative impact on forest has been boosted with the huge population growth and as a result, the forests are being degraded (the percentage of open forest is 41.59% (2011), creating an urgent need to increase forest area and to improve forest quality.
(2) Development Policies for the Forest Sector in India and the Priority of the Project Although the Indian government intended to increase the forest and tree cover ratio by 5% (approximately 16 million ha) in its Eleventh Five-Year Plan period (April 2007 to March 2012), the actual increase was 1.55% (approximately five million ha). The Twelfth Five-Year Plan (April 2012 to March 2017) has set a goal of increasing forest area by five million ha during the targeted period. In addition, the Plan also focuses on enhancing Joint Forest Management for sustainable forests through community participation as well as increasing forest resource productivity, restoring forest that have been damaged by grazing, and establishing nurseries for supporting India’s diverse forest resources. In order to observe changes in these sustainable forest resources, the Plan has also aimed to create a periodic monitoring system using satellites.
(3) Japan and JICA’s Policy and Operations in the Forest Sector in India “Poverty Reduction and Environmental Improvement” is one of the priority area in Japan’s Country Assistance Program for India (May 2006). Accordingly in its Country Analysis Paper (2012), JICA defines environmental conservation and mitigation of climate change as high priority cooperation issues. More specifically, in addition to support for sustainable forest management programs (including restoration of degraded forest, prevention of soil degradation, and improvement of soil water retention ability) and for biodiversity conservation, JICA also recognizes the importance of the livelihood improvement of those who depend on forest resources. This project is consistent with these policies and analysis results. In terms of Japanese ODA loans given to India, 21 projects totaling 210.9 billion yen (5.9% of the total amount of ODA loans amount) have so far been extended in the forest sector. At the same time, JICA is implementing the Technical Cooperation Project “...
Background and Necessity of the Project. (1) Current State and Issues of the Wastewater Sector in Sri Lanka Although effluence of wastewater is increasing in Sri Lanka as the Country’s water supply is extended, the national sewerage service ratio remains at only 2.5%. Outside of the Greater Colombo area, which has a comparatively well developed sewerage system, wastewater is released to the sea and rivers after being treated inadequately by septic tanks and other such facilities, or even without any treatment. This situation results in deteriorating sanitary conditions in these areas and water pollution in water-source rivers. Under such conditions, the development of appropriate wastewater facilities is an urgent issue in Sri Lanka. Kandy City is Sri Lanka’s second-largest city and one of the most popular tourist destinations. Nonetheless, Kandy City does not have any piped sewerage system, and as a result water quality is worsening in the Mahaweli River (which is Kandy City’s water source), rivers that flow through the city, and ▇▇▇▇▇ ▇▇▇▇. Consequently, appropriate wastewater management is required to improve the water quality of these rivers, etc. Moreover, in order to improve hygiene in the low income/densely populated areas in Kandy City, it is required not only to develop the piped sewerage system but also to solve the shortage of sanitation facilities (toilets, etc.).