Japan donor information

Technical cooperation

Japan is the largest single country contributing to the Technical Cooperation Fund Programme (TCFP), and at the end of 2005 Japan’s overall contribution amounted to €134 million or 12% of the total funds managed under the TCFP.

TC commitments of € 63 million funded by Japan have supported € 2.8 billion of EBRD signed investment, which is a part of the total investment project cost of € 5.8 billion.

Since 1991, Japan has funded 384 TC assignments in all of the EBRD’s countries of operations through the Japan-Europe Cooperation Fund (JECF).

 

Japan’s contribution by technical cooperation fund
Fund	€ million
Japan-Europe Cooperation Fund	111.9
Early Transition Countries Fund	11.0
Mongolia Cooperation Fund	5.0
Russia Small Business Fund	3.3
Central Asia Institution Building Fund	3.1
Total	134.3

Japan's commitments by country  (0.1Mb)

Micro and small business lending

Funding from Japan supports the institutional reform of financial intermediaries providing micro and small businesses lending. The JECF supports the expansion of these programmes, identifying new financial intermediaries: both banks and non-bank institutions. It also broadens the reach of existing operations to rural and agricultural areas.

Japan has provided a total of $14 million for micro and small business lending in Armenia, Georgia, Kazakhstan, Uzbekistan, and Russia through the Russia Small Business Fund. This has contributed to $358 million in EBRD investment.

Case study: Grocery store in Samarqand, Uzbekistan

Farsaev Bahtiyor has owned a grocery store since 1997 in one of the densely populated city districts in Samarqand, Uzbekistan. He approached Ipak Yuli Bank for a cash loan so that he could procure goods from Tashkent and other cities to fill his store. The shelves in his store were half empty.

He received a loan of 6,000,000 UZS (about $6,000) in cash, followed by a second one in January 2006. Now the store is full of groceries, offers customers with a much larger variety, and employs two staff. The increased turnover and profits allowed him to open up additional businesses: a bar and a restaurant.

Case study: Khabazi 2004 Ltd bakery, Georgia

Since 1997 Zaza Tsartsidze and Avtandil Dvali have been involved in bread distribution from Burji Ltd, a large bakery in Rustavi. Knowing the bread business in the region, they took the opportunity to purchase a bread baking plant. Together with the founders of Burji Ltd they created Khabazi 2004 Ltd, a new company producing bread for grocery shops in Rustavi and neighbouring Gardabani.

Since their equity was not sufficient to start operations, the entrepreneurs secured a $20,000 loan from United Georgian Bank’s Rustavi branch. Money was used for necessary repairs on the plant and in order to purchase flour. Although still struggling with electricity problems, the owners are planning to increase operations in the near future and to hire 40 employees in addition to the 10 already working in the plant.