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Private Sec tor Investment programme PSI

Private Sec tor Investment programme PSI. 2013 Ben Rutten Alliance Plus RWANDA. In this presentation:. What is PSI? PSI Subsidy in Rwanda Project criteria Examples of approved PSI projects Criteria for partnership Criteria for project proposal Impact on local economy

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Private Sec tor Investment programme PSI

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  1. Private Sector InvestmentprogrammePSI 2013 Ben Rutten Alliance Plus RWANDA

  2. In this presentation: • What is PSI? • PSI Subsidy in Rwanda • Project criteria • Examples of approved PSI projects • Criteria for partnership • Criteria for project proposal • Impact on local economy • How does it work? • How to apply for PSI? • Interested? / More information

  3. 1. What is PSI? • PSI provides fundingforinvestments in emergingmarkets • Open to more than 50 countriesworldwide • Investmentsexecutedby partnership of two private sector companies Why? • Private sector development is drivingforcebehindpovertyalleviation

  4. 2. PSI subsidy in Rwanda • PSI provides subsidy of 50% of the total project budget (as a grant) - this 50% is paid in various steps • Maximum project budget is € 1,5 million (there is also a minimum) • Budget consists of Hardware and TechnicalAssistance • Remaining 50%is financedby the localcompanyapplyingfor PSI, togetherwith project partner

  5. 2. PSI subsidy in Rwanda

  6. 3. Project characteristics • All sectors of the economy are eligible • Pilot character: risky and small scale, pilot plant • Innovative character: new to the country, (nothing of this kind available) • Activity is commercially viable after start-up phase • Impact on local economy: training/knowledge transfer, employment and income, environment • Partnership between Dutch or foreign and local company • Investments in hardware and technical assistance • Green project, good benefits workers, animal friendly environmental friendly etc.

  7. 4. Typical examples of approved PSI’s • Egg processing plant • Liquid and/or solid fertilizer plant • Grafted vegetable seedlings • Integrated poultry project (production & slaughterhouse) • Export chain for export herbs • Metal waste recycling • Capsicums for export • Cattle feed production, cattle and poultry slaughterhouse • Fish nursery • Feedmill • Leasing company for construction machinery • Factory for making cheap bricks from local material • Cheese factory • Yoghurt and milk processing factory

  8. 5. Criteria for partnership • Applicant is a foreign private sector company • Recipient is a local private company • Project is in line with core business of the partners and involves local investments • Partners are financially sound • Partners set up a long term cooperation (preferably a joint venture)

  9. 6. Criteria for project proposal • Thorough market analysis: competitors, innovative aspect, commercial viability => Business plan • Clearly defined results with regard to production and sales figures, employment, training etc. • Realistic project budget (hardware and technical assistance) • Sound financial plan (cash flow analysis) • Clear operational plan • Impact on local economy • Explain environmental impact and Corporate Social Responsibility

  10. 7. Impact on local economy • Direct and indirect employment created • Introduction of new technology or product • Transfer of knowledge (training) • Income effects and sound working conditions • Chain effects (SME's, outgrowers, etc.) • Impact on the position of women • Impact on the environment • Corporate Social Responsibility CSR !

  11. 8. How does it work? • Two PSI tenders each year • Next tenders PSI: - February 2013, - August 2013

  12. 9. How to apply for PSI via Alliance Plus? • Alliance Plus (AP) will propose a contract on a no cure – no pay arrangement with small commitment deposit • Succes fee (on subsidy) for company to do PSI application ~ 10% • AP will be active in finding a partner company • AP will obtain all relevant information from the project partners to make the PSI application • AP will submit the PSI application and communicate with the PSI organisation • AP will guide the PSI project during its implementation and provide administrative support during whole implementation phase that can take up to 3 years.

  13. 10. More Information: Alliance Plus: For general PSI information: www.evd.nl/psi For PSI via Alliance Plus: www.allianceplus.nl rutten.ben@gmail.com roodenburg@allianceplus.nl

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