Programme Summary

The Fiduciary Monitoring Agent (FMA) Project is a strategic initiative designed to ensure the effective implementation of development projects financed through Japanese Official Development Assistance (ODA) Loans in Iraq. Established in partnership with the Japan International Cooperation Agency (JICA), the project strengthens governance, enhances transparency, and develops capacity within the Government of Iraq (GoI) to manage ODA loan-funded projects in line with JICA’s guidelines and international standards.

The FMA Project operates in close collaboration with the Monitoring Committee (M/C), which was established and launched in May 2008 with a structure proposed by JICA and membership from the GoI, the Government of Japan (GoJ), and JICA. The M/C was created in response to the need for a robust monitoring mechanism and a high-level oversight body to ensure accountability, transparency, and efficiency in the implementation of ODA loan projects. 

In 2009, the UNDP represented by the Loan Management Unit (LMU), joined the M/C as a partner following the signing of the Partnership Agreement (PA) with JICA. The LMU’s technical expertise significantly enhanced the M/C’s ability to address implementation challenges, strengthen governance, and ensure effective coordination. 

Through this robust governance structure, the FMA Project addresses challenges such as limited institutional capacity and procedural delays, contributing to Iraq’s socioeconomic recovery.

By fostering collaboration between JICA, GoI, and UNDP, the FMA Project ensures that ODA loan operations are managed transparently and efficiently. This initiative directly contributes to Iraq’s national development priorities and the Sustainable Development Goals (SDGs), equipping Iraqi institutions with the knowledge needed to independently manage ODA loan-funded projects and deliver long-term development outcomes.

Key Achievements 

1. Strengthening GoI’s Oversight through the Monitoring Committee (M/C)

• Facilitated four Monitoring Committee (M/C) meetings, bringing the total to 58 (as of May 2025) since 2008. This made the M/C the longest-standing coordination platform within the GoI.

2. Enhancing Fiduciary Oversight and Compliance

• Conducted regular on-site monitoring and oversight missions, including fiduciary reviews, to ensure compliance with international standards and JICA’s procurement, contract management, and financial management requirements.

3. Advisory Support to the GoI on Laws, Regulations, and Government Investment Programs

• Reviewed and analyzed Iraq’s laws, regulations, instructions, and decisions relevant to ODA loan projects, assessed their impact, and provided actionable recommendations.

4. Capacity Development and Institutional Strengthening

• Annual training courses on procurement, financial management, and project management for GoI officials. Provided hands-on coaching for GoI officials, improving compliance with JICA procurement and financial procedures while strengthening institutional capacity through peer learning.

5. Advancing New Loan Formulation and Implementation

• Facilitating the signing of one ODA loan agreement between GoI and JICA, and assisting in the identification, formulation and GoI endorsement of new ODA Loans for the coming years.