APPROVAL PROCEDURES

The Japanese Government cannot support every project that that is submitted. Funds are provided to appropriate projects after detailed examination and evaluation by the Japanese Government.

After a Japanese embassy or consulate receives the application form and accompanying documents from the applying organization, the embassy or consulate will take the following steps:

1)Examination of the project: When the application is received, the project is examined by embassy or consulate staff,who pay particular attention to the objectives, socioeconomic impact, and cost of the project. On this basis, potential projects for grant assistance are selected.

2) Site visit: The embassy staff will visit the site of the potential project. The embassy or consulate will then make a determination to provide assistance, which next has to be approved by the Ministry of Foreign Affairs in Tokyo.

3) Grant Contract: The Japanese embassy or consulate and the recipient organization will then sign a Grant Contract. The Grant Contract contains the title and objectives of the project, the name of the recipient organization, the rights and obligations of each party, the maximum amount that will be provided for the execution of the project, the submission date of interim/final reports, and the completion date of the project.

4) Disbursement of funds: The recipient origanization must submit a request for payment with relevant documents to actually receive the funds.

5) Implementation of project: The gtant should be used properly and exclusively for the purchase of the products and/or services specified in the application form of the approved project. Once the grant funds have been disbursed, implementation of the project is expected to proceed in a timely manner and in conformity with the agreed- upon timetable (in principle, within one year).

6) Changes from the original plan: If the recipient organization needs to modify the project plan for any reason, it must consult the embassy and seek its prior approval. (Both the consultation and the approval need to be in written form.)

7)Reports: An interim report during implementation and a final report at the end of the project are required. (In certain cases, the recipient organization may be asked to submit additional interim reports.)

8) Auditing: Outside auditing is required for all grants above 3,000,000 yen.

MISCELLANEOUS REQUIREMENTS

1) Funds received must be used exclusively for the implementation of the project. The Japanese embassy or consulae reserves the right to claim a refund of the grant if the funds are used for any purpose other than for the implementation of the project.

2) It would be preferable if the recipient organization could maintain separate accountiong for the implementation of the project in order to facilitate auditing of the grant.

FOR FURTHER INFORMATION: Please contact a Japanese embassy or consulate. (http://www.mofa.go.jp/about/emb_cons/over/index.html)