Abstract
Japan's official development assistance (ODA) has been providing the major resources for socio-economic development in many developing countries. Japan's contribution in hard infrastructure development has been dominating other soft development like human resources and technology development in recipient countries. Recipient countries especially low-income developing countries are ever dependent on developed countries for human resources and technology for their domestic infrastructure development. In addition, the insulated project execution system of the Japanese grant aid projccts has influenced the international competitiveness of Japanese contractors and consultants to expand overseas business. The new scheme developed in this study, based on the Nepalese and Cambodian contexts, integrates the perspectives of recipients as well as donors. Strengthening universities and technology development system in developing countries, and using alternative project delivery system in ODA project execution have been recommended to address recipients' as well as donors' industries issues and to improve the efficiency and efficacy of ODA. The new ODA scheme has been started to implement in Cambodia and it has enabled to produce a new product for Cambodian rehabilitation.
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