Private Sector Investment
Programme (PSI)
Business Development B.V.
Important for international investment projects:
Private Sector Investment Programme (PSI)
Notice:
This information is based upon the PSI tender of August 2013. The last tender will close 10 March 2014, 15.00h
(local Dutch time). The country list is known (as presented below), except that the term “Arab Region” isn’t
mentioned anymore. Definite terms and conditions will be published January 2014. So this information (based
upon the PSI tender 2013-II) is conditionally provided. On the other side: take the opportunity to apply for the
upcoming last tender of PSI.
Short outline of the PSI programme:
PSI supports Dutch – or foreign – business investments in emerging countries. PSI stimulates innovative pilot
investments by a foreign company in cooperation with a local company, with the ultimate goal of strengthening the
local economy of the recipient country.
PSI finances projects to ease some of the initial risks that companies encounter when investing in developing
countries. A typical project involves a mix of hardware supply and installation, knowledge transfer and project
management.
This grant consists of a financial contribution to the costs of the investment (hardware and management) of 50% of
the total project costs. The maximum project costs can be € 1,500.000, so the maximum grant is € 750.000. For
the countries for which PSI Plus is applicable, the maximum grant is 60% (€ 900.000).
This grant is open for projects in the following countries; for the countries, pointed with a *, only Dutch companies
can apply. For the other countries, companies from any country, not being the country in which the project will be
implemented, can apply.
Africa
Algeria (Arab Region) *
Angola
Benin
Burkina Faso
Burundi (PSI plus)
Cape Verde *
DR Congo (PSI Plus)
Djibouti
Egypt (Arab Region) *
Ethiopia
The Gambia
Ghana
Kenya *
Libya (Arab Region) *
Madagascar
Malawi
Mali
Morocco (Arab Region) *
Mozambique
Nigeria *
Rwanda
Senegal
Sierra Leone (PSI Plus)
South Africa
South Sudan (PSI Plus)
Sudan
Tanzania
Tunisia (Arab Region) *
Uganda
Zambia
Nepal
Sri Lanka *
Bangladesh
Birma/Myanmar
Iraq (PSI Plus) (Arab
Region)
Jordan (Arab Region) *
Laos
Thailand *
Vietnam *
Cambodja
Mongolia *
Pakistan (PSI Plus)
Palestinian Territories
(PSI Plus) (Arab Region)
The Philippines *
Peru *
Suriname *
Kosovo *
Macedonia *
Moldova *
Asia and the Middle East
Afghanistan (PSI Plus)
Yemen (PSI Plus) (Arab
Region)
Indonesia *
Latin America
Bolivia
Colombia *
Guatemala (PSI Plus)
Nicaragua
Central and Eastern Europe
Albania *
Bosnia and Herzegovina *
Armenia *
Georgia *
PSI county list (closing date tender 10-03-2014)
1
Leaflet PSI | last tender
Verbos Business Development B.V.
Postal address
Visitors’ address
P.O. Box 6
Jupiter 201
2670 AA Naaldwijk
2675 LV Honselersdijk
The Netherlands
The Netherlands
Tel: +(31)(0)174 625 344
Mob:+(31)(0)651 788 924
Email: [email protected]
Site: www.verbos.nl
Private Sector Investment
Programme (PSI)
Business Development B.V.
PSI proposal
The following ingredients are of great importance for a good PSI proposal:
Consortium (who are the partners in the project)
both applicant as local partner have to be a private company (so foundations, NGO etc aren’t eligible)
link between core business of the applicant / local partner and the project
partners are financially healthy
long term commitment (Joint Venture)
knowledge and experience available
history of the relation between applicant and local partner
experience of applicant with Corporate Social Responsibility (CSR)
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Additionality of the project
no unfair competition with existing companies in the region/country
commercial/technical risks are high
small scale & pilot character
new activity for the country/region
preference for projects related to food security or availability of water
for projects in the Arab region: preference for young and female entrepreneurs (age < 35 year) and for
young employees (age < 25 jaar)
-
Clear and positive impacts on different levels
company level: How much new employment will be created? How will you ensure good and safe working
conditions? Which fringe benefits will be offered? Think of transport, housing, meals, health insurance,
education, childcare, etc. What kind of training programme will be offered?
- chain level: Sourcing services, profits for consumers
- sector level: To what extent will other local companies in the sector be involved in this project (think of
knowledge sharing, economies of scale, the potential to replicate your concept, production potential for
complementary products, etc.)? In what other way will other commercial entities in the sector be affected
by the project? Will you collaborate with existing business associations, knowledge institutes, NGO's or
other entities?
- national level: How will the project affect the environment? How will the project affect the position of
women? Will any indirect employment be created by the project?
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Various
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The project is a pilot project, which has to be set up in a maximum period of 30 months (36 months for
agricultural projects).
The programme is to stimulate investments: the project must contain sufficient hardware investments like
for example:
o Production facilities, including land levelling, fencing, supply of electricity etc.
o Packing facilities
o Office (new building)
o Machinery and equipment
o Cooling systems
Also considered as project costs are:
o Project management (time spent by management of both partners)
o Travel costs (flights and accommodation)
o Technical assistance (for e.g. training, legal services etc)
Good business plan is required
Spin-off activities are planned (follow-up investments)
CSR policy has to be implemented
Interested? Please contact Verbos Business Development.
2
Leaflet PSI | last tender
Verbos Business Development B.V.
Postal address
Visitors’ address
P.O. Box 6
Jupiter 201
2670 AA Naaldwijk
2675 LV Honselersdijk
The Netherlands
The Netherlands
Tel: +(31)(0)174 625 344
Mob:+(31)(0)651 788 924
Email: [email protected]
Site: www.verbos.nl
Private Sector Investment
Programme (PSI)
Business Development B.V.
Project description / questionnaire
To determine whether your project fits the criteria, please describe the following issues.
1.
Link between partners
Who are the partners and what is their connection? What is the main reason for the partners to participate in this
project? Have they worked together before? Will they form a joint venture?
2.
Purpose of the project
Please describe the purpose of the project. What is the main reason to start the project?
3.
Results
A PSI project will be divide in maximal 5 phases (so called “results”). For example:
Result 1: start up the joint venture
Result 2: buy and install (production) facilities (refurbish)
Result 3: hire people, train & educate them (European standards)
Result 4: achieve certificates, eg relating to production process
Result 5: start selling first produce; finalise marketing plan
Do you recognize this for your project? Please give a time planning for your project, in which you make use of
these results.
4.
Summary project plan
which activity will be undertaken during the project?
what product/service will you market at the end of the project? Please provide information about the expected
turn over (numbers of products, sales prices etc.)
describe in short the impact of the project on the different levels: business, chain, sector, society
provide the marketing plan
what is the knowledge transfer?
how many employment will be created (staff/workers; male/female; direct/indirect)?
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5.
Novelty
What is new about the project for the country or the region, where the project is located?
6.
Risks
Describe the risks in the project: technical, economical, political and commercial.
7.
Costs
What investments will be made? Indicate the total amount for investments. Think about aspects like:
o
local infrastructure (levelling land, access to electricity, fencing etc)
o
expenses for buildings (new), electricity, different kind of machines, trucks etc
o
costs for training & education
o
(evt) refurbishment of other local partners
8.
Financing
why aren’t regular financial institutions prepared to finance the project? Why do you need the PSI grant?
the PSI grant will be paid during the implementation of the project. First payment (20% of the grant as laid
down in the final grant decision) will be paid after finishing result 1 (around 6 months after the start of the
project). Then the grant will be paid quarterly (10% of the grant) up to 90%. The last 10% will be paid after
finalizing the project. How will the partners prefinance the project?
provide us of both applicant and local partner the following amounts (of the last year): cash flow, equity and
total assets. We need them to calculate if both companies qualify for PSI. We treat this information of course
confidentially.
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9.
Corporate Social Responsibility (CSR)
The Dutch government attaches a great deal of value to CSR (like employment standards, workplace health and
safety, gender policy, local community etc). What is the experience of both partners regarding CSR? What will
your efforts be in the project?
3
Leaflet PSI | last tender
Verbos Business Development B.V.
Postal address
Visitors’ address
P.O. Box 6
Jupiter 201
2670 AA Naaldwijk
2675 LV Honselersdijk
The Netherlands
The Netherlands
Tel: +(31)(0)174 625 344
Mob:+(31)(0)651 788 924
Email: [email protected]
Site: www.verbos.nl