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11 January, 2008 12:01 PM
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| Newsletter No.
776
The following newsletter has been contributed by Keely Fahoum (Shingetsu Member No. 112). Fahoum is based at the Defense Language Institute in Monterey.
There have been a number of news stories published over the last few months detailing Japan’s economic assistance to Jordan to improve domestic, environmental and emergency services (see the articles below analysis). Through efforts at strengthening Jordan’s civil society through the Japanese Grant Assistance for Grass-Roots Human Security Projects (GAGP), Japan has provided over US$6.1 million for 106 projects over the last 14 years (Embassy of Japan in Jordan). In addition, the Jordan Times writes that “since the year 1999, Japan has provided Jordan with assistance totaling US$327 million -- US$267 million in grants and the balance in soft loans, in addition to the technical assistance program implemented by JICA.” In my view, these efforts have demonstrated Japan’s dedication to help Arab countries build and sustain civil and social infrastructure in the region. From the foreign affairs perspective, these programs have provided a win-win case for Jordan and Japan. Jordanians get more access to emergency and fundamental services, and Japan sustains a strong diplomatic connection with the country. When it comes time for investment opportunities (such as the fertilizer complex detailed in the first article below), the path to achieve profitable investments and buy-in from Jordan was much smoother than it would have been had Japan not had such a strong diplomatic ties with Jordan in the “soft” sector. After reading these articles, I became interested in learning more about the GAGP in relation to Japan’s relationship with the Levant countries. Why does Japan get involved in Jordan’s grassroots organizations and what is the return on their social investments? The GAGP falls under Japan's Official Developmental Assistance (ODA) program and is not limited strictly to Jordan; Japan extends these opportunities to other Arab countries including Egypt, Syria, Yemen, and the Palestinian Authority. The GAGP provides money to program areas focusing on primary health care, primary education, poverty relief, public welfare, and the environment. For example, the program provides facilities and equipment for the disabled, classroom equipment and supplies, vocational training items, and basic medical equipment. Money is granted on a project-by-project basis and the local Japanese embassies decide which NGO or NPO receives the grant. The amount of money Japan has provided to the grassroots organizations in Jordan has added up. According to the Jordan Times, in 2006, Japanese Embassy Charge d’Affaires Matahiro Yamaguchi said that Japan has offered Jordan nearly US$3 billion over the past 30 years. Tokyo has articulated its reasons for giving ODA assistance to Jordan as being part of its efforts to support one of the nations intimately involved in the Middle East Peace Process. The political and economic stability of Jordan has been the primary interest of this ODA, particularly after the death of King Hussein in 1999. Supporting factors cited by the ODA have been Jordan’s efforts to “actively work to promote democratization and economic reforms,” as well as encouraging and sustaining a positive relationship with Japan. Jordan is the 14th largest recipient of Japanese bilateral aid and the second-largest in the Middle East. As of 1997, Japan has been the largest aid donor to Jordan. Although the claim that Jordan is “actively” pursuing democratic reforms can be contested, the monetary support to Jordanian (and other Arab) NGOs and NPOs has provided a source of income that may be difficult for these private organizations to obtain otherwise. The fact remains that Jordan’s government and people depend on Japan’s continued aid and assistance and will likely do so for years to come.
Jordan Phosphate Mines Company and Japan's Mitsubishi Corporation signed a deal to build a US$300 million fertiliser complex to bolster the former's downstream push, industry executives said on Wednesday. They told Reuters a memorandum of understanding (MoU) was signed in Tokyo this week to proceed with constructing the complex near the main Shidiya phosphate mine, in the south of the kingdom. The complex will have the capacity to produce 10,000 tonnes daily of phosphoric acid and 3,000 tonnes of sulphuric acid from the Shidiya mine that has an estimated 1.3 billion tonnes in deposits of phosphate rock, with at least 810 million proven. The project, due to be constructed by 2010, will bolster the fortunes of JPMC, the world's sixth biggest phosphate producer, to process its large phosphate rock reserves. JPMC, with mining rights to more than one billion tonnes of phosphate rock reserves in Jordan, wants to exploit its three major mines of Hassa, Al-Abaid and Shidiya to achieve more value added forms such as fertilizers. "This is part of JPMC's strategy to diversify downstream chemical and fertilizer production activities, thereby mitigating its potential exposure to changes in the world phosphate rock market," a Jordanian industry source familiar with the phosphate sector said. "It will at the same time secure a market for a substantial proportion of its phosphate rock production," he added. Industry executives said it was not certain if the latest project cancels an earlier plan to enter into joint venture with Indian Farmers Fertilisers Coop (IFFC) of India to produce a phosphoric acid plant from the large deposits of Shidiya. A MoU was reached last January with the Indian investors to build a similar $350 million project to produce 15,000 tonnes daily of phosphoric acid, all for export to the fast growing Indian markets. Two joint venture projects with Japanese and Indian firms are already operational in Jordan. A Japanese consortium comprising Mitsubishi Chemical and Asahi Industries already hold a majority 60% shareholding in JPMC's fertiliser complex in the Red Sea port city of Aqaba. JPMC had also signed an initial agreement in May to build a US$65 million fertiliser complex by 2009 with Bahrain-based Venture Capital Bank, an Islamic investment bank, and Jordan Arab Fertilisers and Chemicals Company. The feasibility studies were underway for the project that will specialise in manufacturing fertilisers and chemicals such as sulphate of potassium, sulphuric acid, phosphoric acid and calcium chloride, investors said. JPMC has seen a turnaround in its fortunes in the last two years after being financially troubled for over a decade. JPMC's sales of rock phosphate were over six million tonnes last year with four million tonnes exported. The rest is processed as fertilisers in its joint venture plants. Brunei Investment Agency last year bought a 37% stake in JPMC. Other major shareholders are Kuwait, which owns 9%, and Jordan's government pension fund holds 16%.
The Japanese government on Wednesday extended a US$5.5 million grant to finance the second part of a project to improve Zarqa's water supply. Minister of Planning and International Cooperation, Suhair Al-Ali and Japanese Ambassador to Jordan Shigenobu Kato signed an exchange of notes to this effect on behalf of their respective governments. Al-Ali said the grant will be utilised to finance the purchase of equipment and machinery needed to continue with the implementation of phase II of this project, according to a statement released by the Ministry of Planning and International Cooperation. The second phase entails the construction of reservoirs in the Batrawi, Hashemiyah and Shukhneh areas, the establishment of water pipelines that run from these reservoirs to water distribution networks, as well as the installation of water pumps at the Batrawi station. The project is being jointly implemented by the Japan International Cooperation Agency (JICA) and the Water Authority of Jordan. The project falls within a national plan that seeks to rehabilitate water networks in various areas within the Kingdom in order to improve water supply conditions, increase actual water availability through reduction in leakage amounts by distributing water at an appropriate water supply pressure and ensure fair distribution through optimum water distribution management west of Zarqa city. Al-Ali noted that the first phase of the project, which was financed through a US$14.2 million Japanese grant, was successfully implemented. Phase I included the construction of water networks to improve water supply in Ruseifa-Oujan in the Zarqa Governorate through the rehabilitation and expansion of the Zarqa water networks. The first part of phase II was also successfully implemented through the provision of a US$4.5 million Japanese grant. With the signing of yesterday's agreement, Japanese assistance extended to this project totals US$24.2 million, the minister said. Expressing the government's appreciation for Japan's continued support, Al-Ali reiterated the important role the Japanese government plays in implementing several key and priority projects in the Kingdom in various sectors. Kato highlighted the exceptional bilateral relations that Jordan and Japan enjoy, and reaffirmed his government's commitment to providing technical and financial assistance to the Kingdom in various sectors. Since the year 1999, Japan has provided Jordan with assistance totalling US$327 million -- US$267 million in grants and the balance in soft loans, in addition to the technical assistance programme implemented by JICA.
The Government of Japan has decided to extend a US$53,259 as a grant in aid to Jordan Red Crescent Society and an agreement to this effect was signed on Tuesday by the Japanese Ambassador in Amman Shigenobu Kato and President of Jordan Red Crescent Society Mohammad Al-Hadid. The grant will be used for the purchase of two ambulances in order to help patients in need for emergent transportation not only in Jordan, but also from borders of Iraq and Palestine. Jordan Red Crescent was established in 1953 to serve medical services, especially for people with low income. The Red Crescent hospital has received patients from all over Jordan. In addition, considering the high risked situation of Palestine and Iraq, the hospital has received the injured in Palestine and Iraq who are not well treated there because of lack of high medical technique and because of its neutrality. This grant is provided within the framework of Japanese Grant Assistance for Grassroots Human Security Projects (GAGP). Japan has donated more than US$6.1 million for 106 projects during the past 14 years for non-governmental organizations, schools, hospitals, and local governments in Jordan. |
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