Japan donated $56.5 million for a failed project in Armenia

 — Japan’s official development assistance totaling around 83.8 billion yen ($554 million) for two thermal power projects in Vietnam and a medical support program in Armenia failed to achieve their intended results, the country’s audit board said.

In reaching its conclusion, the Board of Audit of Japan cited insufficient coordination and communication with local entities involved in the projects. It urged the government-backed Japan International Cooperation Agency and the Foreign Ministry to strengthen feasibility checks for future projects.

The board reviewed 82 projects carried out in eight countries — Armenia, Bosnia and Herzegovina, Indonesia, Laos, Madagascar, Morocco, Serbia and Vietnam — since fiscal 1995, worth 433.7 billion yen, with the help of official records and interviews with local embassy staff.

In Armenia, Japan’s Foreign Ministry provided about $56.5 million in 2021 to a nongovernmental organization. The funds were used to procure ambulances for landmine clearance operations and other purposes.

But the board concluded that the project did not produce its intended results, given that the vehicles were not fully used after the NGO ran out of operating funds.

The Foreign Ministry said it will verify whether local organizations are capable of properly implementing projects using official development assistance.

Japan provides grant aid, loans, and technical cooperation as part of its official development assistance aimed at promoting peace, basic human rights, and other objectives.