PSOM: Programme for Cooperation with Emerging Markets www.evd.nl/psom 0 Agenda 1. EVD 2. What is PSOM ? 3. Selection criteria 4. Procedures 5. Other instrument EVD: PESP 1 • The agency for International Business and Cooperation • Part of the Netherlands Ministry of Economic Affairs • Implements programmes for other Ministries as well: • Ministry of Development Cooperation, Ministry of Transport, Ministry of Education • Mission: promotion of international cooperation 2 EVD • EVD Information: relevant data foreign markets • EVD Business promotion: trade fairs, seminars & matchmaking • EVD Programmes: project based financial support like PSOM 3 EVD services •EVD Information: relevant data foreign markets •EVD Business promotion: trade fairs, seminars & matchmaking •EVD Programmes: project based financial support like PSOM 4 What is PSOM ? Parties: • Ownership: Dutch Ministry of Economic Affairs • Implementation by EVD Objectives: • Promotion of sustainable economic development in Serbia/Montenegro • Promotion of structural trade and investment relationships for Dutch businesses in Serbia/Montenegro Instrument: • Support of pilot investments of Dutch investors 5 Why PSOM ? • Alleviate poverty • Create employment and income increase • Strengthen private sector in developing countries • With assistance of Dutch investors 6 PSOM countries Afghanistan Egypt Mongolia South Africa Albania Ethiopia Mozambique Sri Lanka Armenia Georgia Nicaragua Surinam Bangladesh Ghana Pakistan Tanzania Benin Guatemala Palestinian Authority Thailand Bolivia India Peru Turkey BosniaHerzegovina Indonesia Philippines Uganda Bulgaria Kazakhstan Russia Ukraine Burkina Faso Kenya Romania Vietnam Cape Verde Macedonia Rwanda Yemen China Mali Senegal Zambia Colombia Moldova Serbia/Montenegro 7 PSOM projects • Pilot and demonstration character & follow-up investments (new and risky) • No market disruption • Structural cooperation between Dutch & local partner (e.g. JV) • Relevant to development of Serbia/Montenegro (employment, knowledge, income, etc.) 8 Characteristics • Average duration: 2 years • Max. budget: EUR 1.5 Million • EVD grant: 50% (no loan!) • Contract with Dutch company • Result based contract • Any economic sector 9 Selection criteria PSOM 1. Consortium 2. Project plan and business plan 3. Spin-off 4. Development effects 10 Consortium •Preferably SME companies •Reasonable balance between company size and project •Clear link core business and project proposal •Relevant market experience •Long term relationship •Consortium able to finance own contribution and working capital 11 Project plan / Business plan • Clear results that can be verified • Realistic budget • Combination of hardware and training • Proven technology • Good market prospects • Financially feasible in terms of pay-back period and IRR 12 Spin-off •Pilot investments •Additional investments in two years after the project •'Additionality' : -no market distruption -no commercial financing available 13 Development effects •Employment •Introduction of new technology (training) •New activities / new markets •Chain effects 14 Tenders •Submit project proposal: twice a year •Deadline in March and August •First screening projects, visit local partner •Sign contracts •Whole procedure takes about 5 months 15 PSOM Serbia-Montenegro Contact: Industry: Madelon Knop +31 70 778 8486 knop@evd.nl Agriculture: Saskia Hallenga +31 70 778 8509 hallenga@evd.nl WWW.EVD.NL/PSOM 16 Programme for Economic Cooperation (PESP) for Feasibilty studies, Investment preparation studies on emerging markets 17 Highlights PESP •Objectives: Enhance the chances of Dutch firms to secure export orders to promote international cooperation •Budget: EUR 11 million per year Support per project can amount to two-thirds of the study costs, up to a maximum of around EUR 135.000 •Information: www.pesp.nl 18 PESP Countries PESP basically covers all emerging markets in non-OECD countries - Asia (excl. Japan) - Central and Eastern Europe - Africa - Latin America - Middle East 19 Features of a PESP study • A study into the feasibility of a clearly defined project; • by a consortium of (minimally) 2 Dutch exporting or investing companies; • for a counterpart in an emerging market abroad. • No tender procedure, submission possible throughout the year, individual evaluation of study proposals. 20 Criteria - Project implementation should lead to broad-based Dutch export of capital goods and/or services - Value of intended export shoud be at least 10x PESP contribution - The project increases awareness of what Dutch business and industry can offer the country in question - A clear prospect on how the implementation phase will be financed - PESP is not an acquisition instrument for firms that simply want to sell their consumer products on a faraway market 21 PESP Programme Economic Cooperation Projects • Support for feasibility studies focussing on export and investment • Open all year • Max. support per project EUR 135,000 (1/2 of total costs) • Contract with Dutch company 22 Embassy of the Kingdom of the Netherlands Simina 29 11000 Belgrade, Serbia Tel: +381.11.202.39.00 Fax: +381.11.202.39.99 Contact persons: Ms. Mirjana Lazovic – agriculture (mila.mirkovic@minbuza.nl) Mr. Nenad Mitosevic – industry (nenad.mitosevic@minbuza.nl) 23 For more information, please contact: www.nlembassy.org.yu , link to Agriculture 24