Background and Necessity of the Project Clause Examples

Background and Necessity of the Project. (1) Current State and Issues of the Electricity Sector in Bangladesh The annual power consumption per capita in Bangladesh is at world's lowest level, 170kWh (FY2009/10), and the electrification rate is also low at 47%. The electricity supply cannot meet the increased demand: in FY2009/10, the peak demand reached 6,454MW but the installed capacity of electricity supply was 5,271MW only and the maximum power-generating capacity was a mere 70% or so of the demand. Thus, the country was obliged to perform planned outage chiefly at peak times. Due to an improvement in the electrification rate and industrialization thanks to the recent high economic growth, electricity demand is expected to increase by around 10% per year for the time being. The supply-demand gap is likely to remain due to delay in construction of new power generating plants because of fund shortages and other reasons. Accordingly, Bangladesh is faced with an urgent issue of establishing a stable electricity supply system through development of new power sources (particularly highly efficient power plants), diversification of energy sources including coal-fired thermal power, and rectification of system losses in the electric power transmission and distribution. (2) Development Policies for the Electricity Sector in Bangladesh and the Priority of the Project The Government of Bangladesh cites three long-term visions for the electricity sector in the “Policy Statement on Power Sector Reforms (2000)”, which are (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 Sixth Five Year Plan (FY2011-FY2015), the latest national plan, refers to the necessity of reform on the electricity sector, viewing it as important infrastructure for economic growth leading to poverty reduction, and set out goals to increase the power-generating capacity to 15,457MW by 2014/15 and to 20,000MW by 2020/21, and the electrification rate to 68%. This project will, in line with these national policies, construct a highly efficient new-type power plant and support building of the operational structure of power generating companies that were spun off in accordance with the sector reform. Meanwhile, “The Bangladesh Climate Change Strategy and Action Plan (2008)” stipulates action policies that infrastructure for higher efficiency in power generation, transmission and distribution in the electricity sector will...

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) 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 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 Government of Iraq 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 power outage, 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 “Revitalizin...

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) Current State and Issues of the Road Sector in India from the road traffic congestion. In response to this, the Indian Government has commenced construction of a Ring Road around Delhi with a total length of 270 km as a detour route to reduce the influx of traffic into the city. The Western Peripheral Expressway (WPE), the western half of the Ring Road (approx. 135 km), is being constructed by the State of Haryana, and the Eastern Peripheral Expressway (EPE), the eastern half (135 km in total), is being constructed by the National Highways Authority of India (NHAI), and are both scheduled for completion in 2018. The aim is to streamline traffic flows in and around the Delhi metropolitan area by building the western and eastern halves of the Ring Road around the city of Delhi to control the cargo through traffic that goes into the city. (2) Development Policies for the Road Sector in India and Role of the Project The Indian Government promotes the National Highway Development Plan (NHDP) to help deal with challenges faced by the country’s transport sector. According to the plan, comprehensive development of roads and other infrastructure is vital for economic growth, and proactive improvements, including expanding the width of existing roads, should be made. Actually, the NHAI puts in a lot of work to build new roads and widen existing ones to promote this NHDP and help resolve the challenges faced by the transport sector of India. In big cities like the Delhi metropolitan area, however, there is a limit to improvement of roads, due to the high population density and constraints on land acquisition, and thus it is necessary to make the most of the roads they have now. This is the reason that the NHAI’s policy for these big cities is to take advantage of Intelligent Transport Systems (ITS) to streamline traffic through maximization of the traffic capacity of individual roads, for example by reducing toll gate waiting times using a toll collection system, and preventing traffic congestion and reducing accident response time using a traffic control system. The purpose of the Project is to introduce ITS1 that combine (1) a Toll Management System and (2) an Advanced Traffic Management System to the EPE, which is being constructed by the NHAI and will have to face enormous traffic demand, presumably leading to challenges such as increased traffic accidents. The Project is also consistent with the development policy of the Indian Government, which places great...

Background and Necessity of the Project. (1) Current State and Issues of the Energy Sector in Pakistan The Islamic Republic of Pakistan (Pakistan) has been facing a serious energy supply-demand gap in recent years; the peak supply of electricity is more than 20% short from the peak demand, due to the deterioration of the power infrastructure and a lack of fuel due to a structural problem in energy sector. With this background, it is projected that the energy demand in Pakistan will increase 5.5 % as an annual average by 2020 and the peak demand in 2020 will be up more than

Background and Necessity of the Project. (1) Current State and Issues of the Road and Bridge Sector in Bangladesh The land of Bangladesh is divided by three large rivers - the Padma, the Jamuna and the Xxxxxx - and many other uncountable small and medium-sized rivers. It is an urgent and fundamental issue among the development policies of Bangladesh to improve the transportation network by linking each region through the construction of bridges and roads. In addition, the number of water accidents involving ferry boats, which are a major means of water transportation, is increasing year by year and there is an urgent need to shift to safer land transportation. (2) Development Policies for the Road and Bridge Sector in Bangladesh and the Priority of the Project The development of the road and bridge sector, which contributes to economic growth and poverty reduction in Bangladesh, is raised as a primary issue in the Poverty Reduction Strategy Paper (PRSP, 2001-2005) of Bangladesh. Moreover, the National Strategy for Accelerated Poverty Reduction II, which is the revised version of the PRSP to reflect the manifesto of the current administration, noted that the “construction of the Padma Bridge is the most important infrastructure project” since the improvement of the road and bridge is considered to be a necessary part of the policy for economic growth as well as poverty reduction. (3) Japan and JICA’s Policy and Operations in the Road and Bridge Sector In the light of Japan’s Country Assistance Program for Bangladesh (May 2006), JICA has positioned the road and bridge sector in Bangladesh as one of the priority areas for the “Development of the Economic Infrastructure,” one of the development issues in the area of “economic growth.” The Project is in accordance with this policy. The following is a list of the major past aid projects within the road and bridge sector: • ODA Loan: Jamuna Multipurpose Bridge Project, Jamuna Bridge Access Roads Project, Paksey Bridge Construction Project, Northern Rural Infrastructure Development Project, Xxxxxx Bridge Construction Project, Greater Faridpur Rural Infrastructure Development Project, Eastern Bangladesh Rural Infrastructure Development Project, Eastern Bangladesh Bridge Improvement Project, and Chittagong City Outer Ring Road Project • Grant Aid: Project for the Construction of the Xxxxxx Bridge, Project for the Construction of the Maghna Gumti Bridge, and Project for the Provision of Portable Steel Bridges on Upazila and Union Roads. (4) Other Donors’ Ac...

Background and Necessity of the Project. (1) Current State and Issues of Development of the Road Sector in the Philippines Road traffic is the largest mode of transportation in the Philippines, which accounts for around 90% of the passenger transportation and 50% of the freight transportation. The Government of the Philippines (GOP) has been actively working to establish and improve the road network. However, while the main emphasis is on expansion of the road network, improvement of the quality of existing roads remains insufficient. For example, pavement of arterial national roads has been delayed and roads have deteriorated due to insufficient maintenance, causing problems in terms of effective transportation along the road networks. Though the road operation and management system has been gradually improved due to the efforts of the GOP and international donors, there still remain unsolved problems. For instance, medium-term plans for maintenance budget allocation is yet to be formulated, there has been a delay in the promotion of outsourcing to private sector which is planned to make maintenance works more efficient, the system to promptly respond to disasters is not consolidated sufficiently, and not enough measures have been taken to tackle overloading issue. As stated above, the country has a pressing need to improve arterial national roads (pavement of unpaved road sections) and improve/enhance its system to implement efficient maintenance of national roads in order to deliver sustainable service of the road networks in the country. (2) Development Policies for the Road Sector in the Philippines and the Priority of the Project The GOP defined increasing the ratio of paved national roads and placing more emphasis on effective use of existing road assets as goals under its Medium-Term Philippine Development Plan (2004-2010) and Medium-Term Infrastructure Program (2005-2010) formulated by Department of Public Works and Highways (DPWH). As this project aims to enhance the system for implementing adequate maintenance of roads and to increase the pavement ratio of arterial national roads, this project is positioned as one of the prioritized projects of the GOP. (3) Japan and JICA’s Policy and Operation in the Road Sector As the largest donor for the road sector of the Philippines, JICA has provided various assistances, including formulation of development plans and improvement of the arterial road network, through ODA Loan, Grant Aid, and Technical Cooperation. Under its Country Assistance Pro...