1. Overview
(1) At the International Donors' Conference on the Reconstruction of Iraq held in Madrid on 24 October 2003, Japan announced its financial assistance package totaling up to $5 billion. The package comprises $1.5 billion of grant aid for immediate needs reconstruction of living standard of Iraqi people including power generation, education, water and sanitation, health and employment, as well as improvement of security and up to $3.5 billion, mainly in the form of yen loans, in order to meet medium-term needs. (2) The $1.5 billion of grant aid has been obligated and the assistance is bearing fruit on the ground. Regarding yen loans, Japan has so far announced its intention to provide yen loan for 6 projects (up to $860 million) in the fields of transportation, energy, industrial plant, and irrigation. Moreover, based on the agreement of the Paris Club, the Government of Japan and the Government of Iraq signed the agreement upon the debt relief on November 24, 2005 in Tokyo. The debts will be cancelled by 80 % in total in three stages, which will amount to a reduction of approximately 710 billion yen (US $6 billion).
2. Grant aid and technical cooperation (approximately $1.5 billion)
(1) Direct assistance for Iraq (approximately $ 914 million including technical cooperation)
(2) Assistance through international organizations (approximately $ 117 million including $10 million for Japan Social Development Fund (JSDF) and Policy and Human Resources Development Fund (PHRD) of World Bank)
(3) Assistance through the International Reconstruction Fund Facility for Iraq ($ 500 million: $ 360 million for UNDG including $ 40 million for election support, $ 130 million for World Bank, and $ 10 million for International Finance Corporation (IFC))
(4) Assistance through NGOs (approximately $ 27 million)
3. Yen loan (up to $3.5 billion)
(Intention to provide yen loan for 6 projects (up to $860 million) has been announced by October 2006.)
Port Sector Development Project (appr.$260 million)
Irrigation Sector Loan Program (appr.$80 million)
Al-Mussaib Thermal Power Plant Rehabilitation Project (appr.$310 million)
Samawah Bridges and Roads Construction Project (appr.$30 million)
Engineering Services for Basrah Refinery Upgrading Project (appr.$20 million)
Khor Al-Zubair Fertilizer Plant Rehabilitation Project (appr.$160 million)
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