Private Sector Investment programme (PSI)

1. Private Sector Investment programme (PSI) Seminar Amman October 2011 Arie Bijl, Project Officer PSI

2. This presentation: What is PSI? What kind of projects? Examples Criteria Partners, Project and Impact How to start? Match Making Facility (MMF) Questions and Answers >> Focus on international business and cooperation

3. 1. What is PSI? PSI = Grant for companies investing in emerging markets By whom? Dutch Ministry of Foreign Affairs, Development Cooperation, implemented by NL EVD International. Where? In 60 countries worldwide; 2012 Jordan, Iraq, Tunesia and Algeria added to list; seperate budget Why? To stimulate local private sector development by creating long term sustainable employment and transfer of knowledge >> Focus on international business and cooperation

4. PSI - schematic Jo NL Joint Venture 50% PSI grant INVESTMENT >> Focus on international business and cooperation

5. 1. What is PSI? Investment budget up to EUR 1.5 million PSI finances 50% of the total project budget (grant); only eligible costs Remaining 50% and non eligible costs is paid by the project partners Budget consists of Hardware & Technical Assistance PSI pays its contribution after achievement of prior agreed results; advance payment possible >> Focus on international business and cooperation

6. 2. What kind of projects? Investment projects All sectors: Agriculture, Industry, Services Innovative: new to the country/sector (product or production method) Pilot scale but commercially viable & scaled-up after PSI phase Maximum project duration 30 months (36 months for agric. projects) Measurable positive effects on the local economy (employment, income, environment, consumers, corporate social responsibility) >> Focus on international business and cooperation

7. 2. What kind of projects? Coffee sourcing and processing in Yemen Manufacturing dairy packaging materials Cheese manufacturing FFood stuff plastic packaging manufacturing >> Focus on international business and cooperation

8. 3. Criteria for Partnership Applicant is a Dutch company Recipient is a Jordanian company Companies have substantial economic activities and experience Partners are financially sound and reputable (due diligence) Project is in line with core business of the partners Partners set up a long term cooperation (preferably a joint venture) >> Focus on international business and cooperation

9. 3. Criteria for Project proposal Project idea is clearly elaborated and new Pilot scale Thorough market analysis Clearly defined results Realistic project budget Sound financial plan Clear operational plan Measurable positive impact on local economy >> Focus on international business and cooperation

10. 3. Criteria on Impact on local Economy Employment created Follow up investments by consortium Introduction of new technology or product Transfer of knowledge (training) Income effects and sound working conditions Chain effects No child or forced labour by supplier Positive impact on position of women Impact on the environment Corporate Social Responsibility (CSR) ! >> Focus on international business and cooperation

11. 4. How to start? Find a (Dutch) partner Two tenders each year. Per tender approx. EUR 2.4 million for 4 countries The next tender deadlines: February 2012 August 2012 Start of project after evaluation and selection procedure >> Focus on international business and cooperation

12. 4. How to start? You have a project idea (innovative for your country) Visit the website www.agentschapnl.nl/psi Read the instructions and format for project application Fill out and submit intake form (not obligatory) Discuss your idea with a PSI project officer In case of positive reaction: make application and submit complete application before deadline >> Focus on international business and cooperation

13. Match Making Facility (MMF) Your bridge to the Netherlands and PSI >> Focus on international business and cooperation

14. Match Making Facility Why? - stimulate private sector in your country How? - matchmaking of local companies with Dutch companies What? - cooperation with a Dutch company with the intention of a joint investment in your country Cooperation could lead to PSI proposal, but not necessarily >> Focus on international business and cooperation

15. Who Can Apply? Applicant should: be a local company (focus on SME´s) exist 2 years or more have a solid financial structure have a good idea for cooperation >> Focus on international business and cooperation

16. How Does it Work? Step 1: Application Download the intake form at Embassy website(economic affairs section) Fill in completely and send to Embassy Step 2: Screening Embassy will screen your application >> Focus on international business and cooperation

17. Step 3: Making the Match Positively screened applications are forwarded to EVD EVD will approach potential Dutch business partners Step 4: Shaping the cooperation If a match is made: you receive EUR 5,000 to hire a consultant to further shape the cooperation. Shortlist of pre-selected consultants with relevant expertise >> Focus on international business and cooperation

18. What will the consultant do? Quick scan for Dutch company Visit program for you to the Netherlands (own expenses!) Follow-up plan (short and long term goals) Evaluation of the process so far Your commitment is vital for success! >> Focus on international business and cooperation

19. When applying, think about … …a well-elaborated business plan …what partner you are looking for: give as many details as possible on the partner you are searching 3. …completeness: the more information you provide on your intake form, the better your chances for positive screening and matchmaking >> Focus on international business and cooperation

20. In Short Trade relationship EVDMatch Making Facility Opening export market PSI proposal Send MMFintake formto Embassy Business Plan >> Focus on international business and cooperation

21. Thank you for your attention! Contact your project officer for Jordan: arie.bijl@agentschapnl.nl Tel: +31 88 602 1460 or Contact the Dutch Embassy in Amman on PSI and MMF >> Focus on international business and cooperation