Helvetas‘ Private Sector Development and Cooperation Strategy

1. Helvetas‘ Private Sector Developmentand Cooperation Strategy Public Tenders for Infrastructure Projects Private Service Providers to Farmers Public-Private-Partnership Presentation of Martin Epp to the World Civil Society Forum in Geneva WGPS2 on July 15, 2002

2. Phases in Partnership Development

3. Attribution of Project Roles (ideal case of Mali) Government Sector Policy, Norms and Regulations, Donor Coordination Decentralized Government Services for Data Bases, Technical Expertise, Budget Allocation to Councils Community Councils Regional Development Plans and Budgeting Project Ownership, Coordination, Implementation, Monitoring Private Sector Engin.offices/NGO/Consultants: Project Planning and Controlling Enterprises: Project Execution and Maintenance Services Villages Contributions in cash and kind to all Community Projects Committees: Project Operation and Routine Maintenance

4. Strength Constraints Recommendations Increased responsibility of democratically elected councillors Villages get equal chance to development projects Donor driven decentralization Complex administrative procedure Fluctuation and skills of elected persons Negotiate agreements with Councils, intensive coaching in participatory planning, limit intervention in decision making and implementation External interventions are locally controlled and coordinated Development processes become transparent and comparable > Local ownership Intensive policy dialog, information and conflict management Time consuming learning process Patience and respect, mutual learning process, monitoring and dissemination of lessons learnt Competence of various stakeholders in planning, implementation, controlling and project maintenance > Increased self-confidence and responsibility for regional development Influence/power and particular interests of stakeholders not always under control Limited external influence Training/Advice not always effective Ensure involvement of key stakeholders 2-3 Project training on-the-job for each generation of councillors Support organisation for councillors No financial sustainability Small experience/medium skills Clear role as support agency and networker among stakeholders Technical projects selected according to local priority (defined in mid term regional development plans of council) Conditions given by Donors and Government may differ Restricted influence of external stakeholders Communicate clearly methodology and rules of the game, transparent reporting Quality of project implementation, operation and maintenance influence support to new initiatives Few practical experience Sanctions in African context rather delicate Disseminate best practices Free flow of information, Theatre/Media/Internet Experience with Public Tenders by Local Councils

5. Strength Constraints Recommendations Great interest in Public Tenders to get equal access to markets (under fair competition) Market entry barriers (registration and tax payment declarations, bank guarantees etc.) Unexperienced Entrepreneurs/NGOs Restricted markets on local level Training on procedures of public tender and cost/margin calculations needed Insist in transparent market attribution based on clear criteria and fair selection procedure Competition as motor for development Entrepreneurs are obliged to do a good job to get follow-up mandates Structure and functioning of building sector poorly developed, low logistics and equipment Create reference list of quality consultants/NGO/SME Offer training courses (BDS system) Community/committee involvement promotes local project operation and mentionance (challenge for new type of SME) Late cash/kind contributions from beneficiaries and conflict mediation often delay work progress > approach not necessarily cheaper Increased cost and risk awareness during tender negotiations Allow adequate benefits for SME’s extra efforts in community development Preparation of tender documents by Consultants/Engineers who advice stakeholders and mediate during project implementation Consultants often in urban areas, irregular or cost intensive follow-up in remote project areas Close monitoring and coaching Promote newcomers in line with local market needs (avoid monopoly or nepotism) Project execution by interested SME, preferably local, possibility of various sub-lots, Participatory local monitoring SME tend to optimistic unreal offers Few permanent quality staff due to irregular contracts Many fold problems in execution Continuous learning of Donor/Councils Supervise SME’s social and economic behavior Long term commitment to improve technical, social and management skills of stakeholders Practical experience permits lobbying for improved SME output, regulatory framework and involvement of local finance institutes High taxes, bureaucracy, monopoly of suppliers, price fluctuations, security Create synergies with other donors and local investors Support local SME Lobbying and sector networking Experience with Private Sector in Public Tenders

6. Positive aspects Constraints Recommendations Reduced dependency of local NGOs and long-term <h> employees from one particular donor or strategic approach Not everybody has entrepreneurial skills Restricted market potential Sector continuity and more dynamic inputs to increase impact on target group level Confidence in PS not yet built up Knowledge sharing less open Provide space for multiplication and creativity, flexibility and autonomous development, ensure mutual learning Creation of a market and fair competition for NGOs, techn. Offices, at reduced cost Innovative market approach is viewed with scepticism Fear of income decrease and no market demand for services Create market-networks Identify/promote niches Increase women participation in decision making positions Local Partners become competitors or allies to experts in the North Difficulty in valuing mutual contributions or building up trust by win-win situations Gather proactively experiences Joint Ventures as a challenging alternative? Why private service providers in NRM? Transfer program/project ownership to enhance autonomous development, local lobbying and client not donor oriented behavior

7. Public-private-partnership of Helvetas Visions / Courage for Alternatives Joint Ventures/Alliances Internat.Coop./PS (S-S/S-N) Project Co-Funding by Private Sector (PS) (Social Commitment) Helvetas (SDC/Seco) Long term vertical cooperation S-N along a product chain (Organic Cotton, NN etc.) Funding from PS with cooperation interest in the South (Cotecna, GF) PR & Sales of Products in the North (Body Shop, Migros, Globotrek, Fair Trade & Handicraft

8. Marketing challenge • Market Competition • Helvetas participates in public tenders • Maintain a critical view and own identity • Globalization • Reduce unequal chances • Neoliberal approach and good governance are not sufficient > Lobbying work and networking • Double Mandate in CH and abroad • Reinforce <h> profile and competence • Marketing of the „product <h>“ Solidarity is competitive • New Technologies • Promote adequate use of new tools (PC, GIS) for knowledge sharing and management • Fundraising • Special care for donors • Attractive public campaigns • Partnerships with private stakeholders • Alliances/joint ventures • Cooperation with private sector industry • New Alliances with other NGOs • Subject-specific alliances • New cooperation models with NGOs S&N