Cooperation with Japan

Japanese International Cooperation Agency (JICA) www.jica.go.jp is an independent administrative institution, in charge of implementing the Official Development Assistance (ODA) of the Japanese Government.

It provides support to the developing countries aimed at attaining sustainable social and economic development and promotes international cooperation.

 Japanese International Cooperation Agency (JICA) was established in 1974 as a governmental organization under the official jurisdiction of the Ministry of Foreign Affairs of Japan. On 1st October 2008, under Decision of the Japanese Government, Japanese International Cooperation Agency (JICA) and Department for Foreign Economic Cooperation of the Japan Bank for International Cooperation (JBIC) were merged.

Japanese International Cooperation Agency (JICA) is in charge of implementing the following categories of the Japanese Official Development Assistance:

  • bilateral loans;
  • bilateral assistance - grant aid;
  • bilateral assistance – technical cooperation.

Bilateral loans, known as YEN loans, are allocated directly to governments or governmental organizations in the developing countries, focusing on development of economic and social infrastructure, roads, dams, communication infrastructure and agricultural development, but, in the last years, they may be also used for commodity credits aimed at improving the balance of payments.

In 2003, Japan Bank for International Cooperation (JBIC) approved Yen loan in the amount of ¥ 9.6 billion (EUR 71.7 million) to the Republic of Macedonia under favourable terms and conditions. The loan was aimed at construction of “Zletovica” Hydro System, in particular a dam with accompanying facilities and water-supply facilities (I phase). This phase of the project had been successfully realized and Knezevo Dam was put in use on 26th January 2013.

Bilateral assistance - grant aid is intended for the developing countries, whereby the final beneficiary has no obligation to repay it. Purpose of the grant aid is to encourage economic and social development by providing facilities and equipment. Such type of assistance gives priority to projects meeting the basic human needs.

Technical cooperation comprises transfer of technology, oriented towards information and service support, the purpose of which is enabling institutional improvement of the developing countries. Japanese International Cooperation Agency (JICA) provides the most comprehensive technical assistance, fully financed on grant basis: preparation of Feasibility Report, Special Project Design Assistance (for improving the Feasibility Report or the Environmental Impact Study) and other documents.