A government panel has given it’s approval to the proposal to allow the Japan International Cooperation Agency (JICA) to make investments and provide loans to developing countries again, reversing a 2001 decision to strip JICA of such power, officials said.
The Overseas Economic Cooperation Council, spearheaded by PM Taro Aso, gave its nod to the proposal to facilitate infrastructure and resources development in developing countries by funneling assistance via JICA to Japanese companies that engage in businesses in such nations. [..] Govt envisions having JICA invest in overseas projects to build water purification plants with the involvement of Japanese companies, while helping Japanese firms secure concessions in foreign coal mines.
JICA earlier used to provide loans and investments for projects [but this was suspended] after the Japanese government witnessed a string of cases where JICA incurred losses. [To prevent this happening again the govt] and others will devise a mechanism to keep JICA from incurring large losses by analysing past cases of its investment and loan blunders.
Source: Kyodo/PTI / Business Standard, 03 Jun 2009