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Private Sector Investment

programme (PSI)

Project overview 2009


Colophon

Contact Private Sector Investment programme


(PSI)
T +31 88 602 80 32
F +31 88 602 90 26
PSI@info.agentschapnl.nl
NL EVD International
Juliana van Stolberglaan 148 | 2595 CL The Hague
PO Box 20105 | 2500 EC The Hague
The Netherlands
Index

Africa 11

Benin 13
PSI09/BJ/21 Bridging the digital gap in rural Benin 13

Burkina Faso 17
PSI09/BF/01 La Générale Poisson (LGP) 17
PSI09/BF/02 Small scale biodiesel production in Leo, Burkina Faso 20
PSI09/BF/03 MaxiGrana: a collaborative innovation for a value added
sesame seeds production chain in Burkina Faso 24
PSI09/BF/21 Cashew nut kernels cracking plant in Burkina Faso 27
PSI09/BF/22 Burkina Primeur, sustainable production of onions and shallots for
the West African market 31

Burundi (PSI Plus) 35


PSIP09/BI/31 Introducing modular construction for high quality, affordable
housing in Burundi 35

Cape Verde 38
PSI09/CV/02 Shrimp farming on the Cape Verde Island São Vicente 38
PSI09/CV/22 An innovative and ISO 9001 certified manufacturing facility for
high quality, aluminium fenestrations in Cape Verde 40
PSI09/CV/23 Safe and reliable transport services for Cape Verde 43
PSI09/CV/24 Tilapia juveniles for tuna live bait on Cape Verde 47

Egypt 50
PSI09/EG/04 Quality controlled logistics & distribution of high quality fresh
vegetables & fruits for the domestic urban market in Egypt 50
PSI09/EG/21 MABA Retail: joint venture for the retail-packing and distribution of
ware potatoes in Egypt 53
PSI09/EG/22 Growing Radish in the Egyptian desert for the EU and CEE markets 56
PSI09/EG/25 Sinai Integrated Chain Project for Freezing and Drying of Herbs 59

Ethiopia 62
PSI09/ET/01 Blueberry cultivation in Ethiopia 62
PSI09/ET/03 Developing the market for protein rich soy products in Ethiopia 65
PSI09/ET/04 Breeding roses on the African continent 68
PSI09/ET/23 Pilot composting in Ethiopia: Soil fertility, Ecology and
Rural Development 70
PSI09/ET/25 LaserTech Ethiopia Ltd; Ethiopia's first recycling and
remanufacturing company of cartridges and toners 73
PSI09/ET/27 Farming for the future 76

The Gambia 79
PSI09/GM/21 Establishing local production of metal building and construction
materials in the Gambia 79

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Ghana 82
PSI09/GH/02 Vehicle Testing in Ghana 82
PSI09/GH/21 Volta Fruits: joint venture for Tropical Fruit Processing in Ghana 85
PSI09/GH/23 Establishing a high value certified production chain for extruded
floating fish feed 87

Kenya 89
PSI09/KE/03 Breakthrough in solar energy manufacturing in East Africa 89
PSI09/KE/04 Introducing seed based propagation in the Kenyan cut flower sector 92
PSI09/KE/05 Production and marketing of flower care products in the Kenyan
floriculture industry 95
PSI09/KE/06 Rejuv Kenya 98
PSI09/KE/24 Kipini Swahili Eco-lodge 101

Madagascar 104
PSI09/MG/01 Madagascar Welding Technology Center 104

Malawi 106
PSI09/MW/22 Establishment of a Diagnostic Centre in Malawi 106

Morocco 108
PSI09/MA/02 Integrated and organic production of young plants in
Northern Morocco 108
PSI09/MA/21 Tissue Culture Morocco 110
PSI09/MA/22 Environmentally friendly Zelliges from Morocco 114
PSI09/MA/23 The establishment of an EcoCert certified bio organic compost
plant to boost organic agriculture in Morocco 117
PSI09/MA/24 Introduction of UASB technology for decentralised wastewater
treatment in Morocco 120
PSI09/MA/25 TISLI Flowers: Extended peony production for Morocco 123

Mozambique 126
PSI09/MZ/21 Manufacturing of granulated compound fertilisers for the
Southern African markets 126

Namibia 129
PSI09/NA/02 Strengthen the chain of fruit and vegetable production at the
ORIP farm in Namibia 129
PSI09/NA/21 FSC certified charcoal from invader bush in Namibia 131

Senegal 134
PSI09/SN/01 The establishment of a specialised hospital laundry facility in
Senegal 134
PSI09/SN/21 Farm Machinery Rental 137

Sierra Leone (PSI Plus) 140


PSIP09/SL/01 Mechanised food crops production in the Northern Province of
Sierra Leone 140
PSIP09/SL/02 LPG bulk storage and distribution in Sierra Leone 143
PSIP09/SL/21 Potatoes for Sierra Leone 146
PSIP09/SL/22 Establishment of a Medical Imaging & Diagnostics Centre in
Freetown, Sierra Leone 149

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PSIP09/SL/23 Processing smallholder palm oil into toilet soap in Freetown,
Sierra Leone 152
PSIP09/SL/32 Rebuilding Sierra Leone 155

South Africa 157


PSI09/SA/06 Development of a project company using mini excavators and
a network of small enterprises in the telecom and utility market 157
PSI09/SA/22 Potatoes - Main food source for today's and future Africa 160
PSI09/SA/23 First stand-alone toolshop for thinwalled injection moulds in
South Africa 164

Southern Sudan (PSI Plus) 167


PSIP09/SD/31 Establishing modern printing services in Juba 167
PSIP09/SD/32 Establishment of an abattoir and butchery in Juba 170

Tanzania 173
PSI09/TZ/02 Eco Charcoal in Tanzania 173
PSI09/TZ/04 Mruazi Heifer Breeding Unit 176

Uganda 179
PSI09/UG/03 Uganda's first cardiology clinic "Piloting advanced diagnostics and
intervention" 179
PSI09/UG/04 Pilot production of generic veterinary medicines in Uganda 182
PSI09/UG/05 Pilot production of water-based paint and coatings in Uganda 184
PSI09/UG/21 Aloe Cure- Carefully the best 187

Zambia 190
PSI09/ZM/21 Zambia's first manufacturers of high quality woven polypropylene
bags 190

Asia 193

Afghanistan (PSI Plus) 195


PSIP09/AF/21 Good Agricultural Practices (GAP) centre for Afghanistan 195

Bangladesh 197
PSI09/BD/01 Introducing the production of PP / PE multi-layer wide width liners
and coatings for Flexible Intermediate Bulk Containers 197
PSI09/BD/02 E.G.T. Textiles Ltd, a joint venture for the production of wider
width jacquard mattress tickings 199

Indonesia 201
PSI09/RI/01 Lombok Sumbawa Flores Home Industries 201
PSI09/RI/04 Fresh cut, pre-packed and safe vegetables "Convenience products
connecting Indonesian farmers to new markets" 203
PSI09/RI/23 Indosoya Sumber Protein. A soya based processing pilot 205

Mongolia 207
PSI09/MN/01 Private University Hotel Management Institute of Mongolia 207

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Nepal 210
PSI09/NP/21 Gandaki International 210
PSI09/NP/22 Golmagad Hydro Project 212

The Palestinian Authority (PSI Plus) 215


PSIP09/OT/21 Fair Trade organic ISO 22000 compliant olive processing for
export in Jenin, Palestine 215

Thailand 217
PSI09/TH/01 Development, manufacturing and marketing of high-tech cryogenic
equipment 217
PSI09/TH/02 Tropical Shallot Planting Material 219
PSI09/TH/21 Production of vacuum over dried HVP's and reaction flavours
in Thailand 221

Vietnam 223
PSI09/VN/01 Pilot production of high value added chocolate decorations for
export 223
PSI09/VN/02 BRC certified rice vermicelli production with outgrowers in
Southern Vietnam 225
PSI09/VN/21 Saigon Port Training Centre 227

Yemen 229
PSI09/YE/01 Ancient traditions with a new technology 229

Central and Eastern Europe 231

Bosnia and Herzegovina 233


PSI09/BA/01 Innovative repair / assembly centre for return and overstock
(consumer-household) goods 233
PSI09/BA/03 Plastic overmoulding technology 235
PSI09/BA/21 Establishment of a high tech CNC machines centre in
Bosnia and Herzegovina to serve the South-East European
metalworking market 237

Georgia 239
PSI09/GE/01 Establishment of a decorative plant nursery 239

Kosovo 241
PSI09/K3/01 Galvanization in Kosovo: Establishment of a hot-dip galvanization
facility in Kosovo for the production of high quality durable metal
products 241

Macedonia 243
PSI09/MK/21 Establishment of a Macedonian-Dutch steel Rebar production
joint venture 243

Moldova 246
PSI09/MD/01 Production of modern pig farming equipment in Moldova 246
PSI09/MD/02 Realisation of an egg processing plant in Cimislia, Moldova 248

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Latin America 251

Bolivia 253
PSI09/BO/21 Developing a reliable supply chain of quality wild cocoa 253
PSI09/BO/22 Piloting the generation of electricity and carbon credits through
gasification of Brazil nut shells and Pods at Cobija 257

Brazil 260
PSI09/BR/01 Production of Babassu charcoal in Brazil 260
PSI09/BR/02 "Cerrado" Frozen Fruits Ltd: Modernization of Procurement and
Processing Facilities for exotic frozen fruit pulps in Carolina, Brazil 263
PSI09/BR/03 Project Production Peppers 266
PSI09/BR/21 Exotic mushrooms from Brazil 268
PSI09/BR/22 Amazon Outdoor Training & Teambuilding Conference Centre 271

Honduras 274
PSI09/HN/21 Establishing the production and export of small indoor plants 274

Nicaragua 276
PSI09/NI/01 Piloting the cultivation of fresh herbs for export in Nicaragua 276

Peru 278
PSI09/PE/01 Dairy Factory Peru 278
PSI09/PE/02 Introducing subsurface drip irrigation and organic asparagus
growing to Peru 280

Suriname 283
PSI09/SR/02 Establishment of HACCP-certified meat processing for export 283
PSI09/SR/03 Establishing a Dedicated Maroon Wellness Centre 285
PSI09/SR/22 Strengthening of the Suriname Rice Industry 287
PSI09/SR/24 Establishment of a manufacturing facility for innovative
dog chewing products 289

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Dear reader,

We are pleased to present the list of approved project proposals of the first and second
tender of the Private Sector Investment Programme (PSI) in 2009.
This PSI programme (formerly known as PSOM programme) aims to stimulate private sector
development in developing countries and emerging markets. PSI provides companies with
additional grant financing to enable innovative investments with local partners.

In 2009, 52 countries qualified for the PSI programme, including fragile states for which the
PSI Plus programme offers more favourable terms and conditions.

Albania Ghana Nicaragua


Armenia Guatemala Pakistan
Bangladesh Honduras Peru
Benin Indonesia The Philippines
Bolivia Kenya Rwanda
Bosnia and Herzegovina Kosovo Senegal
Brazil Macedonia South Africa
Burkina Faso Madagascar Sudan
Cape Verde Malawi Suriname
Colombia Mali Tanzania
Ecuador Moldova Thailand
El Salvador Mongolia Uganda
Egypt Morocco Vietnam
Ethiopia Mozambique Yemen
Gambia Namibia Zambia
Georgia Nepal

PSI Plus

Afghanistan The Palestinian Authority southern Sudan


Burundi Sierra Leone

More than 200 applicants showed interest in the PSI programme in 2009. In total 101
successful applicants have been granted a PSI subsidy to seize the business opportunity they
have identified in Africa, Asia, Central and Eastern Europe or Latin America.

In this booklet you will find an overview of these innovative and at times unexpected
projects, ranging from mechanised agriculture in Sierra Leone, a cardiac care clinic in
Uganda, to processing of traditional sauces in Yemen, production of pig farming equipment in
Moldova or a dairy factory in Peru. The brief descriptions of each project will offer insights
into the purpose of the new business ventures as well as the impact they will have on the
local economy.
NL EVD International is proud to be able to assist entrepreneurs to continue to invest in
developing countries and emerging markets in spite of the more difficult worldwide economic
environment. The contribution of PSI projects to employment, knowledge transfer and
economic growth is an important catalyst for private sector development as part of the
development cooperation policy of the Netherlands.

Thank you for taking time to explore the 2009 first tender results,

Hidde van der Veer


Unit Manager PSI

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Africa

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Benin

PSI09/BJ/21 Bridging the digital gap in rural Benin

Location Six secondary cities in Benin (Djougou, Porto-Novo, Parakou,


Natitingou, Oudiah, Bohicon)

Sector ICT

Applicant IGI S.A.L., Beirut, Lebanon

Local partner ISOCEL S.A.R.L., Cotonou, Benin

Start project 01 January 2010

End project 31 August 2010

Total budget EUR 1,499,508 (50 percent PSI contribution)

Goal of the project


ICT incubation and development of value added ICT services in 6 minor cities of rural Benin.

Summary
The undersea glass fibre cable WACS links Europe with Africa up to South Africa, following
the west coast of the continent. At every main city, a branch comes on land as is the case in
Cotonou. From there on it continues inland. This glass fibre cable has been completely
functional for some years now. The Beninese government policy for the last 3 years has been
using this cable to provide broadband internet all over the country. Government and E-
learning programmes are already started, but the necessary funds are missing as well as the
infrastructure for the countryside.

Isocel, one of the leading internet providers in Cotonou, has proposed to develop this market
together with the applicant IGI, a large hardware and software provider from Lebanon, as a
joint venture. As a pioneer in this market, the joint venture will have the unique opportunity
to collaborate with Benin's ministry for ICT, which has launched a master plan to establish
ICT community centres country wide and which has invited companies to participate in a
pilot in 6 communities. As part of the pilot the joint venture will provide broadband wireless
access network in 6 cities and operate and manage ICT community centres in buildings
provided for by the government. Additionally the ministry will subsidize computer basic skill
training as part of their curriculum for college students. This opportunity will provide the new
joint venture with guaranteed revenues at the start of the project. In each community centre
different activities will take place like basic computer skills education, sales of internet
subscriptions, sales of used refurbished computers, internet café, sales of tailor-made ICT
solutions for small businesses, NGOs and government institutions such as universities and
ministries. After the start-up phase the joint venture intends to invest to expand the network
into 8 other cities in Benin and offer the ICT community centre concept as a franchise
formula to new entrepreneurs. The long-term goal is to create country wide coverage with
this new concept. This project will speed up business between the rural areas and the rest of
the world.

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Results
• Result 1 : Formation of the joint venture;
• Result 2 : Project start up;
• Result 3 : The project wide infrastructure development phase;
• Result 4 : The ICT centres and Local Area Network set up phase;
• Result 5 : ICT centres soft opening and business development.

CSR aspects
Both partners adhere to a CSR policy which will also be applied in the joint venture. Some
major items are:
• at least 50% above minimum wages for all personnel;
• a 42 hour work week with consequent payment of overtime;
• successful employees can become franchise company shareholder;
• a full health care programme is provided for;
• a workers council will be established with 5 members;
• the company employee handbook is one of the most important communication tools
between the company and the employees. Not only does it set forth expectations for
employees, but it also describes what they can expect from the company;
• ISOCEL has a skill based hiring policy, regardless gender or race. At middle management
5 over 7 employees are women at ISOCEL. At the joint venture the same policies will be
used.

Impact
Long term economic Turnover will be increased by increased sales of services in the
activity 6 communities. Moreover the partners expect to invest in new
geographical areas. The investment involved is approximately
EUR 250,000 for each new community centre. In 2 to 4 years
they intend to open another 8 community centres. The total
investment will be EUR 2.0 million. The additional turnover will
be approximately EUR 8.0 million.
A bankable business plan will be developed to attract more or
other financing means in addition to the company's revenues
that they are able to invest in this development. The West
African Development Bank has shown its interest in funding
future roll-out of community centres.

Employment and A total of 88 employees will be recruited for the pilot phase. This
working conditions represents the core staff needed to run the operations and it is
the joint venture's intention to create these jobs for a long
period of time. The staff members will receive wages at least
50% above the Beninese minimum. The joint venture will
provide continuous employee training programmes in order to
create better employment opportunities to its employees. The
joint venture will among others ensure health care, training and
education and meals for its employees.
The working conditions will be contracted and incorporated by
using the employee manual as an addition to the employment
contract. At the moment the majority of the personnel of Isocel
joined them right from the start and did not leave. This is an
important indicator for the working conditions and atmosphere.
By interviewing some employees, the career possibilities with
Isocel were mostly cited as very interesting.

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Transfer of knowledge The training programme is not entirely new to the country.
Some advanced aspects of the course are however new to the
country and certainly to the rural areas.
In Benin and especially in the rural areas, training in ICT skills is
unique. Furthermore through acquiring ICT skills and the
availability of internet, individuals and SME are able to further
develop their skills continuously through self-paced learning.
The ICT community centres, the trainers and their staff will be
able to boost future ICT economic activity in the rural areas. The
ICT activities can be further used to upgrade practical business /
industry / service relevant skills.

Chain effects The project will be deployed areas like Bohicon, Parakou,
Djougou and Natitingou where cotton farming and cashew nut
production is very important. The farmer organizations will be
able to create local content and publish it on their own websites,
which will give them a better exposure and access to new
markets as well as dramatically increase their competitive
position and time to market. Product buyers will also use the
internet to communicate with clients and principles.
A Dutch buyer of organic cotton from the north of Benin
confirmed to us that the project will ease his operation largely.
The project will support the government's vision is "to make
Benin Africa's digital district". Its pillars are: e-government, e-
business. The projects impacts fast track the governments
strategic priorities in the key areas of Infrastructure, Human
Resources, Contents, Competitiveness.
Thus creating new job opportunities in newly developed sectors
for the country such as
E-accounting, E-monitoring, Survey questionnaires, Call centres,
E-marketing, E-businesses.

Environment The joint venture will be using the old and discarded PC's to
capture the potential customers to provide information access
and IT tools to users in Benin, who would otherwise not be able
to afford these computers. These second hand computers which
are 2 to 4 years old still have over 5 years of useful life in a
Benin setting. The joint venture will cooperate with IPAR
(http://www.ipar.org/index.html) to ensure proper disposal of
computers after their technical lifecycle.

Position of women In line with the gender policies of both partners, the joint
venture will be an equal opportunity employer with a skill based
hiring policy. Additionally the joint venture will try to boost a
shortage of women in the ICT industry through the development
of practical programmes designed to attract and retain women
in the field.
The joint venture will encourage women to enter the ICT
industry and to enable women to achieve their full potential
within their career. In line with the current ratio of the local
partner the joint venture will aim to hire or train at least 50%
women for middle management level positions. In Isocel

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actually 5 out of 7 department chiefs are woman, even the
'boss' of the, all male, technical installers department is a
woman!
Due to better access to information (through the Internet)
women may be able to empower themselves.

Other impact ISOCEL makes donations to schools, orphanages, and provides


organisations such as the Rotary International Women's Club
(IWC) with free Internet connection and computers. These
donations are not related to the core business of the company.
The joint venture will act likewise.

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Burkina Faso

PSI09/BF/01 La Générale Poisson (LGP)

Location City of Ziniaré (new industrial zone)

Sector Fishery / Aquaculture

Applicant Hesy Aquaculture B.V., Kwintsheul, The Netherlands

Local partner La Générale des Operations SA (LGO), Ouagadougou,


Burkina Faso

Start project 30 July 2009

End project 31 December 2011

Total budget EUR 1,227,750 (50 percent PSI contribution)

Goal of the project


This project aims at starting up fish production (100 tons per year) in Burkina Faso in a
modern, sustainable way and to provide the artisanal fishermen community with fingerlings
(300,000 per year).

Summary
The project will develop a fish farm with a capacity of 120 tons tilapia per year for sale on
the local market. The local production will reduce fish imports into Burkina Faso, a land
locked country in the sahelian zone of West Africa. It will also contribute to the repopulation
of open water bodies by the production and sales of fingerlings to local fishermen. For these
purposes, a joint venture between Hesy B.V., a Dutch producer of turn-key fish farms, and
LGO, a Burkinabe company, involved in general trade, is foreseen. The services and products
to be delivered in this project include hardware (adapted equipment for reproduction and
breeding infrastructure, water reuse and recycling technology, biological control) and know
how (breeding techniques, low energy use and waste generation, reuse of production waste,
hygiene and improved marketability). The project will be located at the industrial zone of
Ziniaré, at 50 km from the capital Ouagadougou. This project will be the first intensive,
sustainable fish farm in Burkina Faso. As fish is mainly imported from at least 1,200 km it is
expensive and the quality and availability is not guaranteed. This project will assure both
availability and quality of fish to the Burkinabe population.

Results
• Result 1 : Joint venture established;
• Result 2 : Production facilities established;
• Result 3 : Employees contracted and trained;
• Result 4 : First test production realised;
• Result 5 : Production, sales, marketing and follow-up business.

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CSR aspects
Salaries are planned to be minimally 35% above official minimum wages. The personnel will
be encouraged to form an independent association to defend their interests but also to run a
social fund gradually made available by the company. Partners attach great importance to
motivation of their personnel through income and career perspectives because of the large
(training) investment they will put into these people. In this same rationale, a HIV / AIDS
training will be offered to the personnel executed by a local hospital department. Child labour
will not be tolerated. The working hours will comply with national laws and will not be in
excess of 40 hours per week. Overtime will be voluntary and will not exceed 12 hours per
week and will be always compensated at the legal premium rate.
HACPP certification is not asked for in Burkina Faso, but the local company insists on getting
this certificate because it is determined to set the example on food standards with the
company.

Impact
Long term economic Within 2 years after the pilot has been concluded, the joint
activity venture company will double the yearly production capacity
from 120 to 240 tons per year investing in an additional
production line at an estimated cost of EUR 750,000. The
expected turnover will be roughly EUR 1.4 million (sales of
230 tons of fish and 2 million fingerlings). The joint venture will
continue once the PSI pilot period has ended. More fish farms
will likely be developed to meet the demand.

Employment and The project will employ 15 direct employees (of whom 4 on a
working conditions high or medium level) during the project period. Two years
after the pilot the joint venture will consist of 26 employees, of
whom 6 on high or medium level. Salaries are planned to be
minimally 35% above official minimum wages. Working
conditions include a safe and hygienic working environment
with first aid Medicare. Adequate steps shall be taken to
prevent accidents and injury. Clothes, gloves and adapted
shoes will be provided to the workers. Workers will receive
regular health and safety training. Access to clean toilet
facilities, potable water and sanitary facilities for food storage
will be provided.

Transfer of knowledge All knowledge transferred during training sessions and on the
job training is new for Burkina Faso. Some government
researchers do have a, mainly theoretical, idea about fish
farming, but the scale and technology proposed in this project
is completely new to Burkina Faso.

Chain effects Three subcontractors are foreseen to be associated with this


project on the long run. This includes transport and other
logistic support as no cars are foreseen in the budget. A vast
group of wholesalers and resellers will also profit from this
project as well as numerous artisanal farmers who will have
access to a constant supply of fingerlings.

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Environment An Environmental Impact Assessment will be requested by the
Government of Burkina Faso before delivering the permits to
build the farm. The project will put into place efficient water
recycling systems to avoid water table pollution. The breeding
technology that will be introduced will be clean. Tilapia is one of
the few species cultivated that can be grown on pure
vegetative produced protein. Most other fish farm species need
fish meal and the production of those species could lead to
depletion of natural fish stocks. The proposed Tilapia has no
negative effect in this respect.

Position of women The project will specially benefit women in the sense that
women are the traditional fish traders. By providing enough
fish for the markets, the project will enhance their economic
activities. The joint venture will favour employment of women.
60% of the project personnel will consist of women; especially
for the de-multiplication process, breeding and harvest, women
will be contracted. The director herself serves as a role model
for Burkinabe women as a successful businesswoman, and that
position will even be enhanced by this project.

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Burkina Faso

PSI09/BF/02 Small scale biodiesel production in Leo,


Burkina Faso

Location Leo and rural surroundings

Sector Energy: biofuels

Applicant Ageratec B.V., Oudenbosch, The Netherlands

Local partner Sahel Agribusiness & Invest SARL (SA&I), Leo, Burkina Faso

Third partner Mali Biocarburant SA, Bamako, Mali

Start project 01 August 2009

End project 31 July 2012

Total budget EUR 1,499,700 (50 percent PSI contribution)

Goal of the project


Partners will set up a factory producing biodiesel based on Jatropha nuts, produced by at
least 2,000 local farmers around the village of Leo in the south of Burkina Faso.

Summary
Applicant Ageratec B.V., local partner Sahel Agribusiness & Invest and partner MBSA, will set
up a joint venture company, Faso Biocarburant Leo SA (FBL), for the production of biofuel on
the basis of Jatropha curcas L.. This crop will be produced by over 2,000 small farmers in
Leo, Burkina Faso. Jatropha will be integrated in the existing parkland agro forestry farming
system. Farmers will plant Jatropha trees on their own land next to their annual food crops
and trees thus ensuring food security. The Jatropha nuts will be brought to rural collection
points and pressed, where FBL collects the oil. FBL will install a biodiesel processing unit for
the local production, processing and consumption of biodiesel. In total 41 people will be
directly employed by the company, while 40 seasonal workers and over 2,000 outgrowers
will gain an additional income as well as other benefits. Over 50 small and medium
enterprises will be included. Farmers and extension workers will be trained in all aspects of
Jatropha cultivation, processing staff will be trained in biodiesel production, and local
management will be trained in business management. On the national level, consortium
partners aim to set an example of a pro poor and pro environment commercial business for
rural development. Biodiesel production does not yet exist in Burkina Faso. It will reduce
expensive imports of petrodiesel, transported from the coast over a distance of 1,500 km,
and will thus have a positive effect on the national trade balance and the global environment.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Basic working conditions in place and first staff trained;
• Result 3 : Farmers extension and tree planting;
• Result 4 : Biodiesel production site ready and functional;
• Result 5 : Commercial biodiesel production.

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CSR aspects
The partners are committed to implement a good CSR policy as they believe that this will
lead to committed employees and to good business results. Free lunches and drinks will be
provided to the employees and a canteen will be built with a separate part for women to take
care of their children. HIV / AIDS training will be provided to all employees and free
preservatives will be made available. A sound CSR policy will give FBL a good name and that
will be important to assure that farmers continue to deliver nuts to FBL. The joint venture will
therefore not only respect the official labour regulations of the country, but will also work
according to the same standards that are used in the Netherlands. Employees will have a
voice in the organisation and participation in the social dialog because proactive employees
with commitment to the business are highly appreciated.

The farmers will become shareholder of the factory and the president of the farmer union will
have a seat in the board of the company. The 3 consortium partners want to set an example
on how to combine business, socio economic development and environmental benefits. The
joint venture will assist SMEs, for instance in starting to make soap from glycerol (a by-
product from the factory), in setting up a nursery or in becoming a seed dealer.

Impact
Long term economic The additional investments after completion of the PSI project
activity amount to EUR 3.0 to EUR 4.0 million for expansion of the
Jatropha biodiesel production in Leo and other areas in Burkina
Faso. Burkina Faso has to import all its petrodiesel so the
market will be unsaturated for high quality, cheap and
environmentally friendly produced biodiesel.
The expected turnover at the end of the project will be
EUR 640,000. The expected turnover 2 years after ending the
project will be EUR 2.7 million. This is due to the increase of
production capacity of the trees. This turnover corresponds to
over 3 million litres of oil / biodiesel. Apart from the core
business, the joint venture also plans to be active in related
subjects as applied research on the use of by-products of the
Jatropha chain including biogas from press cake, soap making
from glycerine and other feedstock for the factory. After the
pilot farmers are invited to join the joint venture as
shareholders, which is rare in Burkina Faso and elsewhere in
West Africa.

Employment and Two years after the project, a total of 300 people will be
working conditions employed by the joint venture. Staff that is directly employed
by FBL will work under the international ILO conditions,
including proper insurances and medical benefits, safe and
clean working conditions, and education allowance for the
children. Working conditions will be in compliance with the
national labour laws, under long term contracts and with
salaries that are 25% above the average market wages.

Transfer of knowledge A large training programme is part of this project as the


transfer of knowledge is a very important for the success of this
project. Subjects of the training are: use of good seeds,
innovative nursery practices, new ways of planting, tree
management, pest and disease control and so on. As no

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biodiesel is produced in Burkina Faso, the whole process
including transesterification with the PE3000 as well as mobile
pressing is new for Burkina (yet proven technology elsewhere).

Chain effects Over 2,000 outgrowers will be delivering Jatropha nuts to FBL.
Results by MBSA in Mali showed a good revenue for farmers:
an average income of FCFA 1,250 per day, which is nearly
double the average income.
A large group of SMEs which will benefit from FBL new activities
are the rural private nursery owners. About 50 nursery
managers are foreseen to be steady suppliers of Jatropha
seedlings to the farmers of FBL. This will be in addition to the
central FBL managed nursery. About 2 million trees will already
be planted in the first year, steadily increasing in the years to
come. The nursery managers will be trained by FBL. The
private nursery managers will be given a loan that they can
reimburse in seedlings. FBL provides a guaranteed offset of the
seedlings. It is expected that this will boost their business and
will enable them to diversify their nurseries with many other
valuable tree species including fruit trees.
Biodiesel production requires a constant purchase of raw
materials necessary for transesterification; Methanol (or
ethanol), Potassium or Calcium Catalyst and fuel agents. These
products are available in the market and will be purchased
locally from SMEs.

Environment The project combines profit with reduction of climate change


and improved natural resource management. Although in the
semi arid areas, production levels are relatively low – about
2,000 kg of dry nuts per hectare, this is not problematic if the
focus is not on plantations but on intercropping, meaning that
on that same hectare farmers are capable to grow millet,
beans, maize, gumbo, watermelon etc. The loss in space will be
compensated by the reduction of wind and water erosion, by
better water infiltration, by the increase of biomass and by
providing partial shading. Erosion, the worst environmental
hazard in West Africa is stopped by a sufficiently dense agro
forestry system as proposed in this project.
Biodiesel produces significantly less carbon dioxide compared to
petrofuel which causes climate change. Emissions are much
more environmentally-friendly. Petrodiesel has a high level of
particulate emissions and carbon monoxide released into the
atmosphere. The use of pure biodiesel and biodiesel blended
with petroleum diesel has demonstrated significant reductions
in harmful emissions such as carbon monoxide and airborne
particulates. When compared to petrodiesel, biodiesel carbon
monoxide emissions can be reduced by up to 70% and
particulate emissions reduced up to 30%. Especially the
decrease of sulphur is a major topic in many cities and
countries. Biodiesel is extremely low in sulphur, and has a high
lubricate activity and fast biodegradability.

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Position of women Of the permanent staff, 43% will be women. Of the temporary
staff 75% will be women.
One of the risks related to the introduction of this kind of cash
crop is that, once it is clear that it is very profitable, women
can be easily excluded from participating. In large parts of
Africa, including Burkina Faso, even after marriage, men and
women have separate incomes and expenses. This is why the
joint venture, together with the farmer organisation and the
traditional chiefs, will try to prevent this loss of empowerment
for women with the introduction of this new crop.

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Burkina Faso

PSI09/BF/03 MaxiGrana: a collaborative innovation for a value


added sesame seeds production chain in
Burkina Faso

Location Ouarkoye (Dédougou); Ouagadougou

Sector Agriculture

Applicant Maximum Trading B.V., Amsterdam, The Netherlands

Local partner Ets. Zoungrana & Frère (Établissement), Koudougou,


Burkina Faso

Third partner J.C. Kremer Beheer B.V., Middenmeer, The Netherlands

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,464,020 (50 percent PSI contribution)

Goal of the project


Improving the sesame seeds exported from Burkina Faso into a 99.9% pure hulled and
cleaned product for the international market by improvement of the husbandry techniques of
the 2,500 farmers involved and installing a cleaning and hulling facility with at least a
capacity of 1,500 tons per year.

Summary
Sesame seeds are produced in Burkina Faso by small farmers as one of their cash crops.
Local middlemen, like the local partner in this project, Ets. Zoungrana et Frère, buy the
seeds from the farmers and sell it to foreign companies abroad, like Maximum trading B.V.,
the applicant in this project. The latter imports the sesame seeds into the Netherlands, have
them cleaned and hulled by specialised companies, like the third partner in this project, J.C.
Kremer Beheer B.V., and sells them all over the world. Sesame seeds from Burkina Faso
appeared to contain between 15 to 20% impurities which makes transport cost relatively
high. This is the reason why the 3 companies want to join forces in a joint venture to build
and operate a state of the art sesame seed cleaning and hulling facility in Ouagadougou with
the aim of exporting 99.9% pure and hulled sesame seeds to the rest of the world directly.
To achieve this the project will also introduce new varieties and train 2,500 farmers in new
cultivation techniques. The farmers concerned will be chosen in different provinces of Burkina
Faso to minimise the risks of the usually very local droughts in the rainy season.
This project will guarantee the farmers the possibility of selling sesame seeds at a fixed price
and in large quantities. This will be the first time in Burkina Faso that an opportunity of this
size exists.

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Results
• Result 1 : Legal and Administrative structure established;
• Result 2 : Farmers organized, strategic partnership agreement with farmers concluded,
own staff recruited, farmers and staff received training and technical
assistance, accompanying incentive programmes developed;
• Result 3 : Processing unit installed and operational, agricultural equipment installed and
operational;
• Result 4 : First stage of pilot scale production in operational setting;
• Result 5 : Second stage of pilot scale production, certification, additional training,
evaluation and reporting.

CSR aspects
Maximum Trading B.V. and Kremer Beheer B.V., both apply a CSR policy in their companies.
Zoungrana has, as a traditional African trader, no such written policy, but does understand
and applies the basics of the CSR idea. They are committed to maintain a higher
sustainability level than what laws and regulations dictate. They are aware that they can play
a role model and are committed to set an example in their industry with regard to
employees, suppliers and clients. As certification is concerned, HACCP will be achieved and
the quality management system will be ready for BRC, IFS or AIB at the end of the project.

Impact
Long term economic Once the PSI pilot has ended, partners will continue to invest in
activity this joint project: more capacity, more advanced techniques,
more committed farmers, extending the concept to other crops
(e.g. ground nuts, Hibiscus tea, etc). In the second year after
the projects completion the partners believe that the turnover
with the additional investments of EUR 1,390,000, will be
around EUR 4.0 million per year.

Employment and In total 210 people will be employed of whom 17 medium and
working conditions high level personnel. Two years after the project 340 people
will be employed of whom 34 will be medium and high level.
Wages are at least 15% above average. Thus, payment is
always above the local minimum wage level. The joint venture
will implement the same health and safety measures as Kremer
has in its own facilities in the Netherlands. The physical
inconveniences caused by dust, noise, resonance and tremors,
toxic wastes and heavy work will be far less than usual in
Burkina Faso industrial units. The consortium will be working
according to the latest Dutch standards in this respect. The
sesame seeds industry today uses transport bags of 80 kg,
causing physical strain and overworking of operators and
dockers. The consortium will introduce 50 and even 25 kg bags
to avoid this.

Transfer of knowledge A vast programme of knowledge transfer is foreseen on


subjects such as new processing techniques, quality
management and certification. The initiators and partners (e.g.
GTZ or Oxfam Novib) will teach the farmers new agricultural
practices with the aim of doubling the yields. Subjects include
production and maintenance of good sowing seed stocks, agro
forestry techniques, prevention of erosion and depletion of soil

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fertility. Furthermore, farmers are given the opportunity to join
basic education classes in the evening hours for those who are
not yet able to read and write.

Chain effects The joint venture enters into long-term contracts with local
transport companies, with local suppliers of soil canvasses and
transport bags, with local suppliers of fertilizers and pesticides,
and with local research institutes like INERA.
The joint venture will contract 2,500 outgrowers united in
50 farmer groups, giving them long lasting contracts and a fair
price. Contract farmers will benefit from the complete
programme including: training, inputs and the possibility of
basic education. Specialised institutes as GTZ will take care of
the capacity building of farmer organisations.

Environment The project has a positive impact on the environment. Good


agricultural practices diminish the use of fertiliser and biocides,
erosion and depletion of soil fertility will be minimised by
introducing agro forestry techniques, low water using hulling
techniques will be introduced and the maximum use of solar
and other renewable power sources will be employed.

Position of women In sesame production, in Burkina Faso, 70% of the farmers


involved are female. This project will strengthen them by giving
the assurance of a viable selling point for their production.
Although the processing part of the chain is still dominated by
men, the joint venture will endeavour to promote female
employment there (also in the middle and higher segments) to
at least 34% of the work force.

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Burkina Faso

PSI09/BF/21 Cashew nut kernels cracking plant in Burkina Faso

Location Bobo-Dioulasso

Sector Industry

Applicant Trade Development International B.V. (TDI), Giessenburg,


The Netherlands

Local partner Anastasis S.A., Bobo-Dioulasso, Burkina Faso

Start project 01 October 2009

End project 31 March 2012

Total budget EUR 1,341,702 (50 percent PSI contribution)

Goal of the project


To establish a cashew processing plant which shall be able to process 3,500 Mtons raw
cashew nuts with an output of 700 Mtons of cashew kernels.

Summary
Burkina Faso has an annual production of about 25,000 Mtons of raw cashew nuts which is
increasing, however there exists hardly any local processing capacity. This leaves the local
farmers vulnerable, with only one market outlet: Ghanaian and Ivory Coast traders who buy
the raw nuts for processing in Asia. To counter this trend, there is a need to develop the local
processing capacity of cashew nuts.
The promoters of the project, TDI from the Netherlands and ANASTASIS in Burkina Faso
designed a commercial cashew processing plant in Bobo-Dioulasso, which will produce
cashew kernels for export. Both companies are already cooperating and TDI is running a
similar project in Benin and Mozambique. Their strategy is to create a relevant volume of
tradable cashew nuts through a chain of small factories in the region. The project is unique
for Burkina which lacks a serious processing capacity and a business approach which links all
the elements in the cashew-chain.
The factory shall have a processing capacity of 3,500 Mtons of RCN annually and produce
700 Mtons kernels. The direct spin off will be the creation of at least 500 jobs. 3,500 Farmers
will indirectly benefit of the project by a secured take of for their product against a decent
price, which will stimulate the farmers to process cashew nuts of a good quality. In this way
value addition to the product is done locally.

Results
• Result 1 : Detailed plan of action concerning factory finished;
• Result 2 : Project infrastructure in place;
• Result 3 : Production of 400 Mtons of cashew nut kernels for export.

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CSR aspects
Anatrans intends to start processing according to BRC (hygiene) and BSCI (social) standards
and the project has been approved by the Authorities according to the "Law of Labour" in
Burkina Faso.
Furthermore, the factory intends to do more for her employees then only applying to those
standards and paying a decent salary. One meal will be provided for every employee and
child-day-care will be arranged; Health-care-centre which will provide medicines for factory
employees and HIV / AIDS prevention programmes shall be held at factory level and where
possible grower group level. Pension and insurances will be arranged for every employee.
An internal Code of Conduct will be put in place.
The intention of Anatrans is that part of the production will be certified according to FLO and
ECOCERT standards. WBI and Anastasis are currently cooperating with Fairmatch Support to
arrange certification for certain grower groups. An environmental study is conducted and
approved by the Ministry of Environment in Burkina Faso.

Impact
Long term economic By the end of the project in 2012, the capacity processed until
activity then by the factory is 500 Mtons of cashew nut kernels. It will
grow with extra investments to 700 Mtons of kernels and the
factory will be on a capacity of 1,400 Mtons by 2017.
In the period from 2012-2014, investments are scheduled extra
processing machinery to facility the factory in her growth. This
will be an investment of approximately EUR 250,000 in
additional cashew processing machinery.
Furthermore a EUR 100,000 investment is foreseen in
machinery for a CNSL (Cashew Nut Shell Liquid) extraction
plant.
In 2014 the turnover will be approximately EUR 2.1 million.

Employment and When the project ends the factory will employ 378 low level
working conditions and 19 medium / high level employees. This should increase to
647 low level and 30 medium / high level employees 2 years
later.
Wages paid to the employees in shelling and peeling are result-
based, on basis of well-finished quantities. The rates are
applied in such a way that the wages will be 2-5% above the
minimum wage. All workers are registered with the CNSS
(Caisse Nationale de Sécurité Sociale), which includes an
insurance, family care and retirement. For other levels of salary
for employees, a grid similar to other similar activities is
applied.
Implementation of BSCI conditions / regulations will ensure
decent working conditions for workers. Furthermore, the
company strives to insure all health care costs of permanent
workers, provides a daily meal and there will be a child-day-
care centre. Loan and leasing possibilities for cars and motor
cycles will be offered to the permanent staff and management.

Transfer of knowledge Most of the employees employed by Anatrans have a low level
of education. This means that a lot of knowledge with regards
to cashew processing needs to be transferred. They will be
trained practically on the job, by traineeships at Afokantan for

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longer periods. Afterwards the train-the-trainer principle will be
used, so that people who did a traineeship will instruct others.
Main supplier of machinery Oltremare will set up a service
centre in Ivory Coast which will provide on the job trainings
with regards to maintenance of machinery. Completely new is
the value chain approach of the factory. Producer trainings will
be provided by sister company Genèse with information from
Anatrans. It will be the first time that there is transparency in
sharing facts and figures towards farmers.

Chain effects The people in the region of Bobo-Dioulasso will directly benefit
of the project. As they can get jobs with good salaries and
working conditions. A lot of value addition will be done to the
raw cashew nut which will be an example for other
entrepreneurs in the region.
The estimation is that approximately 3,500 farmers will benefit
from the project in 2013. Farmer organizations will be formed
and strengthened. Most farmers will be progressively linked to
the production plant.
However, when intensifying the agricultural practices in cashew
production, more finance is needed for seedlings, pesticides,
agricultural equipment, and also investments in quality
management equipment like calibrating machines, weighing
scales and similar. Farmers group will be supported to find
access to credits to satisfy these financing needs, by
guaranteed buyback contracts with the factory.

Environment The factory was subject to an environmental study which has


been approved by the Ministry of Environment in Burkina Faso.
On the level of processing, the main risk for the environment
are the cashew shells, which is 75% of the weight of the
cashew nut. The intention is that the shell will be used as a by-
product for the production of energy or for the production of
CNSL, for which a future investment is foreseen. Farmers will
maintain their field and plant cashew trees that will be in line
with the policy of reforestation.

Moreover, less transport of cashew nuts is needed before


processing, which has positive effects on air pollution.

Position of women WBI has a strong focus on empowering women in Africa and
experience in Benin learned that in a cashew processing plant
50% of the employees will be women. These women will work
on different levels inside the organization, directly in the
processing line, in the management and administrative side.
The empowerment of women will result in the fact that they
have their own money to expend.

Other impact The factory will also have a positive impact on industrial
development in Bobo-Dioulasso: on the level of suppliers and
service providers, a client of significant size is added. In
collaboration with them, there might be development of new,

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specific products as plastic bags, software Applications, and
equipment. This has already resulted in an accelerated plan for
an industrial zone in Bobo-Dioulasso.
Also the planning is that in cooperation with GTZ, Fair Match
Support and the Bill and Melinda Gates Foundation satellite
units and community storage will start up. Partners have
established a joint venture to confirm their wish to have a long
term partnership to further develop local processing units. This
vision is not limited to cashews only as the partners also
collaborate on other cash crops as Jatropha, Sheanuts,
Sunflower seeds and Soy Beans.
A health and day-care centre is included in the building plans.

Page 30 of 290
Burkina Faso

PSI09/BF/22 Burkina Primeur, sustainable production of onions


and shallots for the West African market

Location Office: Ouagadougou / Production sites: Kaya

Sector Agriculture

Applicant Harrie Goesten V.O.F., Elshout, The Netherlands

Local partner Faso Fruits et Légumes S.A.R.L., Ouagadougou, Burkina Faso

Start project 31 January 2010

End project 31 December 2011

Total budget EUR 1,469,018 (50 percent PSI contribution)

Goal of the project


The aim of the project is to set up a joint venture in Burkina Faso called Faso Primeur which
will produce high quality planting materials for onions and shallots and will also be a for the
distribution of onions and shallots, produced by its outgrowers. Within the scope of the
project high quality planting material is grown on 4 ha. This should enable the growing of
20 ha of onions and 20 ha of shallots and ultimately yield approximately 400 tons of onions
and 400 tons of shallots.

Summary
The existing commercial relationship between applicant Goesten and local partner Faso Fruits
et Legumes (FFL) dates back to 2005 with the production of green beans. This project
involved 500 outgrowers who produce green beans which are exported to Harry Goesten
V.O.F. in the Netherlands. Because the green bean campaign lasts from October to March,
with an average of 4 month real occupation of the cultivation process, Harry Goesten V.O.F.
and the outgrowers have been investigating opportunities to extend production above the 4
months period and to diversify sources of income.
This search resulted in the idea of introducing the production of onions and shallots. Onion
and shallots can be grown alternatively but more or less parallel with green beans and there
are excellent opportunities for regional export to Cote d'Ivoire, Ghana and Togo. The local
market shows opportunities for especially the onions.

A joint venture will be established which shall develop locally adapted / improved planting
materials and undertake the required activities for the training and supervision of about
6,000 outgrowers (500 of which are outgrowers in the green bean project) to grow over
50 ha of high quality onions and shallots. The production of the outgrowers, roughly
1,200 tons of onions and shallots, will be treated, packaged and commercialized through the
planned joint venture company in the surrounding countries.
The joint venture will create 20 directs jobs and 50 indirect jobs and strengthen the position
of the outgrowers through diversification of their sources of incomes.

Page 31 of 290
Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Building project facilities;
• Result 3 : Hiring of personnel and training of the personnel and outgrowers;
• Result 4 : Production trial;
• Result 5 : Promotion and Marketing.

CSR aspects
The joint venture will fully comply with all the regulations and policies in place in Burkina
Faso to guarantee that the employees and working conditions are safe and comfortable. The
project will in particular adhere to the GlobalGAP (Good Agricultural Practice) rules and
regulations and take care that all required legal documentation (e.g. licenses, building
permits etc) will be obtained in accordance with local rules and legislation. An independent
validation company will be inspecting the location for HACCP certification.

Impact
Long term economic In terms of follow up investment, the joint venture company
activity envisages to invest about EUR 600,000 in expanding its
capacity and output.
This additional investment will cover:
• The acquisition of land for expanding or developing a new
nursery site with all the required irrigation and
mechanization machinery and trucks;
• Expansion of the post harvest handling plant to
accommodate the growth;
• Increase the logistic and marketing facilities and means.
The expected increase of turnover will be about
EUR 1.5 million.
In the future, a diversification into other crops (tomatoes and
other horticultural products) is possible once the onions and
shallots trade chain is mastered by the outgrowers and the
joint venture.

Employment and At the end of the PSI phase, Burkina Primeur will employ a
working conditions minimum of 30 permanent staff members of which at least 8
medium to high level employers and 22 unskilled labourers. In
addition, an estimated 50 part-timers will be employed for 2 to
4 months per year.
Wages and benefits paid for a standard working hours or month
meet, at a minimum, the national legal wage. For the regular
personal, the joint venture will pay at least 10% above the
minimum wage in Burkina Faso (as fixed by the Government of
Burkina Faso) according to the various qualification.
The working hours will comply with national laws and will not
be in excess of 40 hours per week. Overtime will be voluntary
and not exceed 12 hours per week and will be always
compensated at the legal premium rate.
Additionally, the Burkina Primeur will promote an employee
funds that will be managed by the employees. Burkina Primeur
will encourage such creation and donate 1% of the net profit of
the company to the funds.
About 6,000 outgrowers will be self employed to earn decent

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revenues to move them out of the poverty line.

Transfer of knowledge The transfer of new knowledge about new cultivars and
cultivation methods will be introduced which enhances the
abilities of farmers to grow high quality onions and shallots.
Training comprises of: nursery methodologies (seeding
techniques); soil cultivation techniques; planting techniques;
methods of fertilisation; harvesting methods; drying methods;
methods for proper storage and sorting methodologies.

Chain effects The main objective of the project is to develop the onions and
shallots sector of Burkina Faso by improving varieties, quality
and marketability. The following parties will take profit of the
project:
• The farmer communities. The project backbone are the
6,077 smallholders who will cultivate the onions and
shallots. This network of outgrowers will be extended during
the follow phase;
• Providers of farms inputs and equipments such as irrigation
equipments;
• The traders and wholesalers;
• The transportation and logistic companies that will be
mobilised to deliver the onions and shallots to the
customers. Among these, there are several hundred or
thousands of retailers across the countries that will be
enabled to earn a good living.

Environment Because healthier starting material will be used for growing


shallot crops, there will be less need for fertilizers and
pesticides to produce high harvest yields of good quality.
Farmers using this material will be educated to ensure they will
indeed refrain from using more fertilizers and pesticides than is
absolutely necessary.
This switch will allow them to increase their harvest yield (up to
35-50%), using the same amount of land and using the same
amount or less fertilizers and pesticides.
Planting material produced by the joint venture will conform to
GlobalGAP (Good Agricultural Practice) requirements. The
GlobalGAP standard is primarily designed to reassure
consumers about how food is produced on the farm by
minimizing detrimental environmental impacts of farming
operations, reducing the use of chemical inputs and ensuring a
responsible approach to worker health and safety as well as
animal welfare.

Position of women The project will specially benefit women in the sense that
women are the traditional farm workers in Burkina Faso.
Among the 6,077 outgrowers of the planed project, 70% of
them are women. In any case, 70% of the project personnel
will be women especially in the post harvest handling centre.

Other impact The country will benefit from adapted species and varieties of
onions to serve the West African market and reduce imports

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from foreign markets (EU).
The project will have a positive impact on the overall living
condition of the farmers and agricultural performance of the
country. The expected export to the surrounding countries will
bring some macro-economical benefits.

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Burundi (PSI Plus)

PSIP09/BI/31 Introducing modular construction for high quality,


affordable housing in Burundi

Location Bujumbura

Sector Construction / Infrastructure

Applicant PortCargo International Ltd, Ndola, Zambia

Local partner Constructions Achats Approvisionnements SA, Bujumbura,


Burundi

Third partner Sismo N.V., Kalken-Laarne, Belgium

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,400,356 (60 percent PSI contribution)

Goal of the project


To establish a production facility for semi-prefab wall and roof panels, with a capacity of
54,000 m2 per year, to be used in construction of high quality, affordable houses on the local
market.

Summary
As a result of increasing stability in Burundi, the demand for affordable, high quality housing
is on the rise. Urbanisation, the repatriation of refugees and the rise of a middle class lead to
interesting opportunities for the construction sector. However, the supply side of the housing
market is not able to keep up with demand, leading to an annual shortage of 20,000 housing
units.

Applicant Port Cargo International Ltd from Zambia is an export company specializing in
cement and construction materials for the Great Lakes Region. The local partner is a building
and property development company called Constructions Achats Approvisionnements SA
(CAA), and is based in Bujumbura. When discussing the housing problem in Burundi, Port
Cargo recalled its experience with a modular building concept once seen in Libya. This
modular building system came from Sismo N.V. from Belgium, and after contacting Sismo
again, they turned out to be interested to invest in this project as a third partner.

The 3 partners together will establish a pilot scale production facility for production of semi-
prefab wall and roof panels, for the local housing industry. A joint venture will be established
in which all 3 companies will take part. The factory will be based in Bujumbura and will
produce panels for both CAA and other local construction firms.

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As compared to quality brick buildings, the houses built with Sismo panels will be 20%
cheaper. More important is the fact that the construction time for houses will be reduced
significantly, as complete houses can be erected in just one day. This will significantly lower
the financial burden for the property developer, as the invested capital is needed for a
shorter period of time.

Results
• Result 1 : Legal and administrative structure established;
• Result 2 : Production unit operational;
• Result 3 : Own staff recruited and trained, contractors trained, staff of local partner
trained;
• Result 4 : Pilot with the production unit in operational setting, constructing
demonstration houses, evaluation and reporting.

CSR aspects
CSR standards are not institutionalised in Burundi yet. The partners will therefore develop
their own occupational health and safety programme, which will be similar to the Dutch VCA
(Veiligheid, Gezondheid en Milieu Checklist Aannemers). In general, the partners will adhere
to international health, safety and environmental rules and regulations.
They will also develop a HRM policy with a special chapter on gender issues. Additional fringe
benefits can be found under 'Employment and Working Conditions'.

Impact
Long term economic Two years after the project finalization, the partners expect to
activity invest an additional EUR 1,330,000 for expansion of production
capacity, additional training, capital replacement, expansion to
neighbouring countries and additional services. All 3 project
partners will continue their cooperation in the joint venture.

Employment and The project will provide employment to 22 people, of which 13


working conditions will be low qualified and 9 medium / high qualified.
Two years after the end of the project, 44 people will be
employed of which 28 low qualified and 16 medium / high
qualified.
The lowest paid employee will receive 15% above local
minimum wages. In addition, the partners will offer health
insurance, assistance in getting mortgages / housing
allowance, savings programmes, adult education programmes,
HIV / AIDS prevention training, free lunch and transport, and
school fees for children.

Transfer of knowledge The knowledge of modular construction is totally new to


Burundi. Working with advanced CAD/CAM applications is new
as well. Next to training its own employees, the partners will
pay a great deal of attention to training supervisors and on-site
workers of both CAA and other construction companies in order
to get used to building with Sismo panels.
Through this approach, the partners increase the acceptance of
this new concept in the market, and enhance the knowledge
level in the construction sector in Burundi at the same time.

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Chain effects First and foremost this project will allow construction
companies to increase their scale of operations without getting
into a capital intensive growth path. Initially, 50 construction
workers will be involved in this project through training, but the
concept will be open to any interested construction company in
Burundi.
Indirectly, the project will lead to an increase in demand for
supplies, works and services: earth moving works, equipment,
raw materials, installation works, components and finishing etc.
The number of subcontractors is estimated at 19.

Environment The introduction of Sismo panels will have a positive impact on


the environment as it will provide an alternative to the use of
fired bricks. Bricks are traditionally baked in wood-fuelled
ovens. The use of wood poses a serious threat to the scarce
forests in Burundi. In traditional building, timber is also used
for setting of structures. This too will no longer be necessary
when using Sismo panels.
Second, the partners will comply with local environmental
legislation.

Position of women About 25% of the total workforce will be women. These will
mainly be employed in the design / engineering jobs and in
other office jobs.

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Cape Verde

PSI09/CV/02 Shrimp farming on the Cape Verde Island


São Vicente

Location Sao Pedro, São Vicente

Sector Fishery / Aquaculture

Applicant Universo, Fortaleza – Ceara, Brazil

Local partner Sociedade Ultramarina de Conservas (SUCLA), Tarrafal SN –


São Nicolau, Cape Verde

Start project 01 July 2009

End project 30 June 2012

Total budget EUR 1,350,194 (50 percent PSI contribution)

Goal of the project


To build and operate a shrimp farm on São Vicente.

Summary
Currently, the entire yearly consumption of at least 60 tons shrimps in Cape Verde is being
imported. With a growing tourist sector in Cape Verde and a world wide trend to fulfil protein
demand increasingly with seafood, a good market opportunity arises. The project partners
Universo Ltda from Brazil and SUCLA lda from Cape Verde will form a joint venture to
implement a shrimp farm on Sao Vicente of open ponds and expect to replace shrimp import
in short term and to export the surplus production. The Brazilian company Universo is
specialised in the wholesale and retail market of seafood in and outside of Brazil. Further,
through partnerships with other companies they are engaged in the setting up of aquaculture
projects. The local partner SUCLA is well known in Cape Verde for its "Cadorio" canned tuna.
The farm will be certified according to GlobalGAP principles. With this project the partners
want to contribute to a sustainable alternative for marine food stock overexploitation and
maintain the local fish processing culture in Cape Verde.

Results
• Result 1 : Establishment of joint venture;
• Result 2 : Site preparation;
• Result 3 : Finalising farm and first capture;
• Result 4 : Farm fully operational;
• Result 5 : Expanding on world market.

CSR aspects
The company will strictly follow the Cape Verdean Labour standards. In addition, attention
will be given to HIV / AIDS and alcohol dependency problems. An environmental impact
assessment will be implemented twice. HACCP procedures will be implemented and
GlobalGAP certification be obtained. The local company SUCLA has a very active CSR policy,
for instance the payment of the health and accidental risk insurance policies is paid for the

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entire year for all staff, while the majority of the workers only work 6 months per year.
SUCLA is very active in all kinds of corporate social involvement activities in Tarafal.

Impact
Long term economic In the first 2 years the project partners will invest in extra
activity ponds to extent the farm. Later on they will invest in their own
package line, cold storage facilities, a larvae production unit
and even in a second farm.

Employment and Of the 25 employees, 10 will be high and medium level


working conditions employees. Two years after the project the number will at least
increase to 31 people, out of which 13 at high and medium
level. Salaries for the unskilled labourers will be EUR 250 per
month, which is a good salary (in comparison, textile workers
receive EUR 160 maximum). Fringe benefits include canteen,
health insurance, and childcare. Safety measures include
protective clothing and a HIV / AIDS prevention programme.

Transfer of knowledge As aquaculture is new for Cape Verde, all related knowledge
and skills are new for the employees. Trainings will be given on
different levels. Knowledge of pond construction techniques will
be transferred to staff of a local constructor. The experience of
working with HACCP and GlobalGAP can easily be used at other
companies.

Chain effects Besides the Brazilian suppliers of shrimp food and larvae, the
local ice supplier and the cold storage facility in Mindelo will
benefit.

Environment The shrimp larvae will be grown in Brazilian laboratories, so


natural stocks are not affected. In case of an escape of the
shrimps or larvae into the sea, it will not create a problem, as
the larvae of Litopenaeus vannamei are Specific Pathogen Free.
However, escape is prevented by trapping in settlement tanks
and consecutive drying of debris. Similarly, an outflow of
fertilisers is prevented in the settlement tanks and will be used
to feed the algae, providing starting food for the larvae. The
location of the shrimp farm is far away from Cape Verdean
protected marine areas. Moreover, an EIA will be conducted at
the start and the end of the project. The company will work
according to GlobalGAP principles, which also includes
environmental issues.

Position of women 80% of the employees will be women, including all


management positions. Childcare facilities for young children
will be offered.

Other impact Establishment of aquaculture in a society which can not provide


the daily need for protein through its own agricultural activities
can become an eye opener for others. The National Institute for
Fisheries has already conducted many studies in the field of
aquaculture and could assist others to continue this new
development.

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Cape Verde

PSI09/CV/22 An innovative and ISO 9001 certified manufacturing


facility for high quality, aluminium fenestrations in
Cape Verde

Location Mindelo, São Vincente

Sector Construction

Applicant Window Warehouse (GB) Ltd, Leicester, United Kingdom

Local partner CRIARQ – Estudos E Projectos Limitada, Mindelo, São Vincente,


Cape Verde

Third partner Aluminium Window Systems Limited, Boston, Lincolnshire,


United Kingdom

Start project 01 January 2010

End project 30 April 2012

Total budget EUR 1,043,800 (50 percent PSI contribution)

Goal of the project


Set up a modern ISO 9001 certified manufacturing facility for aluminium fenestrations and
architectural systems in Mindelo, Cape Verde.

Summary
Over the last 10 years the construction sector is booming in Cape Verde. On all islands
resorts, hotels, apartment complexes and private houses are being built for tourists, Cape
Verdeans living abroad and for the local population. Currently, all facades and fenestrations
are imported in Cape Verde.
In the majority of the constructions, aluminium facades, windows and doors are being used
as wood is severely affected by the harsh salty and humid climate of Cape Verde.
However, most imported aluminium products are also of a quality which is not suitable for
that climate. The aluminium, its protective coating and the glass windows are too thin and
thus not sustainable. The offer of imported facades and fenestrations is also very limited in
terms of forms, sizes and colour. Through this project the project partners will establish a
factory for the local manufacturing of high quality, ISO 9001 certified aluminium facades and
fenestrations in Mindelo on the island São Vincente. It will also broaden the range of
aluminium products for sale in Cape Verde, as the facades and fenestrations will be tailor
made according to the wishes of the customer.
For this purpose the applicant Window Warehouse (GB) Ltd, the local partner CRIARQ −
Estudios E Projectos limitada and the third partner Aluminium Window Systems Limited will
establish a joint venture. The joint venture will produce on a safe and environmentally
sustainable way.

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Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Establishment of manufacturing facility;
• Result 3 : Training of the managers in the United Kingdom;
• Result 4 : Training of the employees in Cape Verde;
• Result 5 : Operational phase.

CSR aspects
Applicant Window Warehouse has a CSR handbook which is part of the contract of the
employee. It includes issues like equal opportunity policy, good salaries, pension, insurances,
right for flexible working hours, health and safety procedures, grievance procedure,
harassment policy, etc.
This handbook will be adapted to the situation in Cape Verde and applied to the project.
Active employee participation will be encouraged. Child and forced labour are not accepted
within the company. A gender policy will be implemented as well as environmental care.

Impact
Long term economic In the 2 years after the project, the partners will expand the
activity production facility to enable the manufacturing of a wider range
of products, such as windows with double glazing, automatic
and rotating doors and also the production capacity to be able
to start export to neighbouring Western African countries as
well. A hardening plant for glass will be set up.

Employment and During the project 57 employees will be contracted, of which


working conditions 8 high level, 37 medium level and 12 low level.
This will increase to 99 full time employees 2 years after the
project.
Salaries are at least twice the minimum wage level. Good and
safe working conditions will be offered.
Employees will have to use protecting equipments and be
trained on health and safety issues. There will be internal
control for safety issues.
A social package including health insurance will be offered.
Employees receive fringe benefits as transportation to the
workplace and canteen facility.

Transfer of knowledge As manufacturing aluminium systems is absent in Cape Verde,


the transfer of knowledge on the ISO 9001 manufacturing of
high quality manufacturing of aluminium architectural systems
is completely new. This will give the employees an advantage
on the labour market.

Chain effects The project will have a positive impact on the construction
sector as better quality aluminium products will be made
available in all sizes and colours.
Users of the buildings and houses will benefit of the better
windows and doors. The houses and offices will be better
isolated.
The tourist sector will be able to create a better image through
the quality of the fenestrations and facades.
The implementation of 9 franchises on the other islands will

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have a good chain effect.
During the project period they will start as employees, but they
will be stimulated to become more and more independent and
start their own businesses with the technical support of the
manufacturing plant.

Environment The project will have a neutral impact on the environment. It


could even have a slight positive effect as the windows will be
better isolated than the imported ones reducing the amount of
energy needed for air conditioning of the rooms.
The company will take several measures to minimize the
impact on the environment.
The plant's waste materials, such as glass and aluminium, will
be collected and recycled. Water will be purified for use up to
10 times. No toxic materials are used in the production
process. Powder coating is a closed process where powder is
put on the aluminium frames through an electric process.
It does not use chemicals or toxic dilutants. The remaining
powder will be filtered and reused. An environmental impact
assessment will be carried out.

Position of women The joint venture will reserve 28% of the job positions for
women in order to ensure a certain gender balance in an
industry which is male dominated. Out of the 16 women, 1 is at
high skill level and 12 on medium skill level.

Other impact The joint venture will create a football team and training facility
for the employees and the local community and provide gear
and equipment.

Page 42 of 290
Cape Verde

PSI09/CV/23 Safe and reliable transport services for Cape Verde

Location Sal Island

Sector Transport / Logistics

Applicant Rotterdamse Mobiliteit Centrale RMC B.V., Rotterdam,


The Netherlands

Local partner Vany Taxy Drivers (VTD), Sal, Cape Verde

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,355,000 (50 percent PSI contribution)

Goal of the project


To establish a professionally organised taxi centre on the island of Sal with 13 own taxi
vehicles, 4 (mini) buses and 40 taxis of associates and to run an own car repair and
maintenance workshop.

Summary
The Island of Sal in Cape Verde depends for 90% of its total income of activities in tourism.
As there are no organised public transport facilities on Sal, the most common means of
transport for local people and tourists are mini buses, pick-up trucks and taxis.
The business of 100 licensed taxis is negatively affected by a double amount of illegal taxis
that operate with vague tariffs and appear to be unreliable and unsafe. Due to the lack of
reliable transport, especially at night, it is rather difficult for tourists to visit areas outside
their hotel or resort. As a result, the local tourism sector remains rather underdeveloped.

Vany Taxi Drivers (VTD) wants to improve the taxi services on Sal. For that purpose it will
establish a joint venture with the Dutch company Rotterdamse Mobiliteits Centrale (RMC)
and start a professionally organised taxi centre that provides safe, reliable and coordinated
taxi services to the local population and the visitors of Sal.
All licensed taxi drivers can join this taxi centre as an associate.

The project partners aim to improve the quality of the taxi services by:
1. implementing new quality standards based on ISO;
2. ensuring transparency of tariffs;
3. guaranteeing the uniformity of taxis and taxi drivers;
4. developing safety standards and a code of behaviour for the drivers.

Besides an intense training programme, project partners will invest in special taxi vehicles,
an advanced communication infrastructure and the establishment of a professional workshop
for repair and maintenance of vehicles.
In summary, the business model will have 3 sources of income: own vehicles, contribution
paid by associates and the workshop.

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Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Office and workshop reconstructed;
• Result 3 : Communication infrastructure established;
• Result 4 : Staff trained;
• Result 5 : Commercial exploitation of taxi centre.

CSR aspects
RMC has an active CSR policy. RMC possesses ISO 9001:2000 certificate and stimulates its
associated taxis to obtain the same or at least fulfil the requirements of the national taxi
label TX Keur.
RMC offers attractive employment conditions: collective health insurance, good pension fund,
car insurance, 50% discount on a sporting ticket, travel expenses, trainings. RMC enables
smaller taxi companies to sign the Rotterdam covenant on incidents of violence by allowing
them to use their communication network. RMC maintains strict procedures in collecting and
disposing its waste.
VTD ensures a fair payment of its employees (25% higher), 8 hour work day for its drivers in
stead of 12 hours, access to trainings, paid holidays and accommodation and moving
expenses for employees from other islands.
The new taxi centre will obtain ISO quality and safety certificate, good employment
conditions including good salaries, possibility to work part-time, social security and health
insurance for the employees and their families, free lunch coupons, uniforms, trainings,
possibility for the (associated) drivers to obtain company shares. In addition, a project to
help street children will be assisted.

Impact
Long term economic The joint venture will invest in expansion of the communication
activity infrastructure on Sal to enable their network to also host
communications of police, fire station and other public
organisations.
Furthermore, the business model will be established on another
Cape Verdean island as Boa Vista, Maio or Santiago. The
amount of associated taxis on Sal will increase with 35 to 75.
The workshop will develop and establish its own "APK-keuring"
on Sal.

Employment and At the end of 2011 the company will employ 47 employees,
working conditions including the 9 already working for VTD. Of these 47, 1 is high
level and 3 medium level. Two years after the project, this will
have been increased to 67 employees.
Cape Verde does not have an official minimum wage. The
employees will receive a monthly salary 25% higher than the
average paid for comparable functions. Salary increase will be
2% per year. The company ensures a safe and comfortable
working environment with regards to the facilities provided in
the office and workshop. Employees have access to canteen
facilities, social security, health insurance and training. The
drivers and workshop staff receive working clothes and shoes.

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Transfer of knowledge The knowledge on operation and management of a professional
taxi centre coordinating rides for associated taxis is new for
Cape Verde as well as the communication infrastructure of the
centre. Knowledge on the quality and safety procedures of ISO
is new within the taxi sector in Cape Verde. The operation of
special transport services for elder and disabled people is
unknown as well. The development of an "APK-keuring" with
the local government will introduce a new concept in Sal and
eventually in Cape Verde.

Chain effects The taxi centre will provide work to at least 80 drivers of the
40 associated taxi entrepreneurs (every taxi has 2 drivers per
day) in 2011, this will increase with another 70 drivers to
150 in 2013. Those taxi drivers will have additional income as a
result of the 40% additional rides through the taxi centre.
The entire transport sector on Sal will benefit as the standard
will be uplifted.
The local customers will benefit through an affordable, reliable
and safe means of transport over the island.
The tourism sector will benefit from the taxi centre, as it
enables tourists to safely visit more places on the island during
the day and at night time. Those tourists will spend more
money outside the luxury resorts, which will be beneficial to the
Cape Verdean owners of souvenir shops, restaurants and bars.
It will create a positive image of Sal in the tourist industry
which can attract even more foreign tourists.
After the project the local government, police, fire brigade and
ambulance will benefit by making use of the established
communication network at a different frequency.

Environment The project will have a neutral effect on the environment. The
operation of the taxi centre could potentially have a negative
impact as more cars will be used on the island. However, the
cars to be used will be new cars and will have an energy label
A. For the associated taxi's one of the requirements to become
a member is that the car needs to be in a good condition. All
cars will be regularly checked and maintained.
The taxi centre's coordination of taxi rides will ensure an
efficient execution of rides, bringing down the number of
"empty kilometres".
The workshop will be equipped with Western equipment of high
standard in accordance with European standards on safety and
environmental issues. The floor of the workshop will be a liquid
tight one in order to avoid any leakage to the ground water.
The waste will be collected and disposed off according to
Western standards.

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Position of women The taxi centre will employ a majority of women for its different
function ranging from head of education until mechanical
worker or taxi driver. The taxi centre will ensure the possibility
to use safe and reliable transport services 24 hours per day,
increasing the possibility for women to work also at night time
hours in restaurants and hotels.

Other impact Currently a growing number of children in Santa Maria town are
hanging around on the streets in stead of being educated at
school. They are disturbing tourists by begging for money or
cleaning cars without being asked for. Their presence creates a
less safe environment and in that sense they could scare away
tourists. This will negatively affect the business of both the
tourist industry but also the taxi sector.
For this reason, but also from the point of view of corporate
social responsibility for the future of those kids and their
families, the joint venture will assist the local organisation
ICCA.
ICCA provides alternatives for the kids through basic education,
family assistance, assistance with organising their lives and
finding internships at local enterprises. The joint venture will be
the first company to provide this internship at the taxi centre
and the workshop.

Page 46 of 290
Cape Verde

PSI09/CV/24 Tilapia juveniles for tuna live bait on Cape Verde

Location Sao Pedro

Sector Aquaculture

Applicant Universo − Criacao, Comercio de pescados importacao e


exportacao Ltda, Fortaleza − Ceara, Brazil

Local partner Sociedade Ultramarina de Conservas, Ltda (SUCLA), Tarrafal,


São Nicolau, Cape Verde

Start project 01 January 2010

End project 31 December 2012

Total budget EUR 1,215,484 (50 percent PSI contribution)

Goal of the project


To establish a tilapia farm of 7 ha pond area, capable of an annual production of 23 million
tilapia juveniles for tuna live bait in Cape Verde.

Summary
Target species for tuna fishing in Cape Verdean waters are the yellowfin tuna, skipjack tuna,
wahoo and bigeye tuna.
Cape Verde has an internationally agreed ICCAT quota to catch 29,000 tons of yellowfin tuna
per year, of which only 4,000 tons is caught and mainly by the EU-registered vessels with
huge nets, resulting in a large percentage of by-catch of unwanted species.
Cape Verdean fishermen themselves focus mainly on skipjack tuna, catching it by artisanal
pole and line fishing. Pole and line fishing is internationally considered by ICCAT and MSc as
the most sustainable way of catching tuna. These artisanal tuna fishers on Cape Verde need
about 600 tons of live bait fishes per year to be able to catch 6,000 tons of skipjack tuna.
The live bait fishes, mostly mackerel, they catch themselves.
As such, the fishermen spend 50% of their effective tuna fishing time in catching live bait.
They can not reach the agreed quota, due to lack of live bait fishes and fishing time.
This project will facilitate the artisanal fishermen to continue with their sustainable way of
pole and line tuna fishing by producing tilapia live bait. The tilapia farm of 7 ha pond area on
São Vicente will yearly produce 23 million young fishes of 12 to 15 gr.
For this purpose the Brazilian company Universo − Criacao, Comercio de pescados
importacao e exportacao Ltda and the Cape Verdean partner Sociedade Ultramarina de
Conservas Ltda (SUCLA) will form a joint venture. The bait fishes will be raised in brackish
waters with state of the art technology and adapted to seawater prior to delivery in the
harbour.
The project will contribute in the process of adapting the tuna fishery chain in Cape Verde
towards a sustainable way of exploitation.

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Results
• Result 1 : Establishment of joint venture;
• Result 2 : Site preparation and training;
• Result 3 : First sales of the imported stock;
• Result 4 : Second season, first sales of own bred;
• Result 5 : Full production.

CSR aspects
The company will follow the Cape Verdean labour laws, but offer all kinds of extra benefits as
described at the employment section. The joint venture will train all tuna fishermen on the
requirements of ICCAT and assist the government with the implementation of the code of
conduct for responsible fisheries.

Impact
Long term economic The partners will build 1 extra breeder and 25 additional grow-
activity out ponds. In case the demand for tilapia bait raises beyond
the current amount of live bait used, a second farm will be
considered on the leeward island Santiago.

Employment and The company will employ 25 workers of which 4 high and
working conditions medium level. This will increase to 32 people in the 2 years
after the project.
The salaries are at least 10% above minimum wages in the
sector. The company will pay a lot of attention towards safe
working conditions.
Fringe benefits include the canteen facilities, health insurance
and protective clothing.
The largest part of the investments in hardware are the
investments in pond construction by local contractors with
heavy machinery. This will take about 12 months for 10 to
12 people.

Transfer of knowledge The knowledge for construction of the ponds will be transferred
to the construction companies. All knowledge and skills
necessary for tilapia breeding and fish farming will be new for
Cape Verde. As well as the process of adaptation towards the
salty sea water.

Chain effects The project will have a positive impact on the tuna fishing and
processing chain. It will enable the Cape Verdean fishermen to
catch more skipjack tuna on the artisanal way at a lower cost,
making better use of the quota allocated to Cape Verde.
It will enable SUCLA and other tuna processing companies in
Cape Verde to increase their production and to introduce MSc
certification in future. As the international requirements of
ICCAT are more strict on tuna fishery, this improvement of the
first link of the chain will enable the Cape Verdean fishers to
continue their sustainable way of fishing and creating a better
and long term market access.

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Environment The impact on the environment will be positive as the amount
of caught wild mackerel for the purpose of live bait will
decrease and the chain of tuna fisheries of the Cape Verdean
fishermen will be made more sustainable, in future even
leading to MSc certification.
The project will favour the artisanal way of fishing, which has
no side-catch as compared to the big international vessels with
seiners. An environmental impact assessment will be done on
the impact of the farm. The used water will be filtered before
reaching again the ocean.
There is no risk that tilapia introduced in the marine
environment will lead to marine populations, as the live bait is
almost 100% male, tilapia is a fresh water fish and needs
special (not present) requirements in their reproductive phase.
Moreover, the natural populations in the West African rivers
have never led to marine populations.

Position of women Fifteen out of the 25 employees will be women, to be employed


in administrative functions, as feeders and at the laboratory.

Other impact The project partners will closely work together with the
National Institute for Fisheries Development INDP on research
of aquaculture. This could lead to other companies starting
related project opportunities in future.

Page 49 of 290
Egypt

PSI09/EG/04 Quality controlled logistics & distribution of high


quality fresh vegetables & fruits for the domestic
urban market in Egypt

Location Multi locations: Desert Road area, the Nile Delta and Cairo

Sector Horticulture: vegetables and fruits

Applicant Metro Cash & Carry Int. B.V., Diemen, The Netherlands

Local partner Makro Cash & Carry Egypt LLC, Cairo, Egypt

Start project 01 July 2009

End project 01 July 2012

Total budget EUR 1,476,100 (50 percent PSI contribution)

Goal of the project


The goal of this project is to develop a fruits and vegetables sourcing chain for Metro Cash &
Carry Stores in Egypt, consisting of 2 collection platforms and a distribution centre,
processing 850 tons of produce, cultivated by small farmers, in the second year of the
project.

Summary
Egypt has a poorly developed supply chain for fresh fruits and vegetables. Standards for local
market production are low and, as a result, both quality and hygiene levels are insufficient.
On the other hand, market demand for high quality fresh produce is increasing. Upper-class
consumers, international offices and the booming tourism industry are demanding safe and
high-quality fruits and vegetables. Applicant Metro Cash & Carry International B.V., a large
wholesaler, is the mother company of local partner Makro Cash & Carry Egypt LLC. Since
both partners belong to the same group, no joint venture will be established. Makro Egypt
will open 10 wholesale stores in the upcoming years, with its first Cairo branch to be opened
in 2009. In order to respond to market demands, the group will establish a pilot
infrastructure and train farmers and operators to supply high quality fresh fruits and
vegetables to their Egyptian cash & carry stores. The project consists of training and
contracting a large number of small farmers that will deliver their products to one of the 2
collection centres that will be set up under the project. From these platforms, products will
be transported to a distribution centre in Cairo where products will be handled, stored and
distributed to Makro stores around the country. The project will raise the knowledge level
and income position of a large group of farmers. Furthermore, the innovative project will
have significant impact on the development of the fruits and vegetables supply chain for the
local market, which makes a contribution to food safety.

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Results
• Result 1 : Inception;
• Result 2 : Construction of the cold chain infrastructure;
• Result 3 : Training programme;
• Result 4 : GAP development, certification and commercial production.

CSR aspects
Within the project, Makro's own 'Cali' quality system will be implemented to guarantee
quality throughout the supply chain. The Distribution Facility will be HACCP certified. All
supplying farmers will be certified according to the MakroGAP standard (a local standard
derived from GlobalGAP but less demanding). A number of 10 farmers will be selected for
GlobalGAP certification. These farmers will be the frontrunners of quality improvement and
serve as an example for other suppliers.

Impact
Long term economic The planned follow-up investments in the 2 years after
activity project completion amount to EUR 2.0 million. These
investments consist of further development of the cold chain
infrastructure and extensions to process other fresh products
such as meat and fish. The expected turnover in the second
year after finalisation of the project is EUR 2.0 million. In the
long term, the Distribution Centre and the collection
platforms will cater for Makro stores in neighbouring
countries as well.

Employment and The project will have created 49 direct jobs at the end of the
working conditions project's implementation. This number will grow to 98 in the
second year after completion. Of the 49, a total of 5 jobs will
be at the higher level.

Transfer of knowledge Knowledge of the advanced supply chain that Makro is


setting up (with the involvement of a large number of small
farmers) is new for Egypt. The extensive training
programme will result in a higher knowledge level of
800 local farmers on quality management, growing
techniques and production planning.

Chain effects Chain effects are significant, as the number of small growers
with supply contracts will be 250 at the end of the project.
These farmers receive technical inputs, knowledge and a
more stable and higher income. Furthermore, 800 farmers
will be included in the Makro training and capacity building
programme. This provides these farmers with knowledge of
growing techniques, fertilization and quality management,
which improves their market performance. Another chain
effect of the project is its positive impact on the quality and
safety of food in several business sectors, especially in
tourism. Currently Egypt suffers from a reputation of bad
food quality resulting in stomach problems among tourists
and locals.

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Environment In the Distribution Centre and at the collection platforms a
waste water management system will be implemented.
Pesticide usage will be minimized and an integrated pest
management system will be set up. A system of reusable
crates with deposits will be implemented.

Position of women Approximately 60% of all direct employees will be women.


At the medium and higher level (including management
positions), women and men will be equally represented.

Page 52 of 290
Egypt

PSI09/EG/21 MABA Retail: joint venture for the retail-packing


and distribution of ware potatoes in Egypt

Location Delta Left Bank (70 km north west of Cairo)

Sector Agriculture / Agro-processing

Applicant Agrico U.A., Emmeloord, The Netherlands

Local partner Maba Ltd, Giza, Egypt

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,425,000 (50 percent PSI contribution)

Goal of the project


Stimulating the development of a high quality domestic potato sector by value-chain
management, establishing a packing facility and introducing new marketing / retail concepts.

Summary
Egypt is a large producer and exporter of table potatoes for the European market. It also has
a domestic market for potatoes (mainly as a vegetable), but the value-chain is
underdeveloped and characterized by mismatches and poor marketing. The objective of this
project is to improve the processing (packing) and marketing side of fresh potatoes for
domestic use, and by doing so to also change retailer and consumer behaviour.
The project involves the establishment of an ISO 22000 certified facility for washing, grading,
retail-packing, cooling and marketing of potatoes under private label. In addition, the project
will invest in the promotion and distribution of selected varieties in the major supermarket
chains and the hotel and catering sector, each with different characteristics and use for the
consumer. The packing facility will be built 70 km north from Cairo along the Cairo −
Alexandria road, not far from potato growers in the Delta.
At the end of the pilot the project will process and market 10,000 tons of retail-packed
potatoes per year, with an annual turnover of EUR 2.2 million. Potatoes will be sourced from
the local partner and GlobalGAP certified contract farmers.
Applicant is Agrico UA (Emmeloord) and local partner is Maba Ltd an agricultural production
& trading company in Egypt. Partners will establish a joint venture in which Agrico holds 25%
and Maba 75% of the shares.
The project is innovative as in Egypt the value chains for fresh produce for the domestic
market, here potatoes, are underdeveloped. The project involves not only technology
transfer, but also introduces new marketing concepts for promoting the potato as a staple
crop. By doing so, the impact of this project is expected to be much wider and of strategic
importance. Potatoes are a more sustainable substitute for rice and wheat because of low
water demand during cultivation. Therefore the project is expected to contribute to the
Egyptian macro policy of self-reliance in (basic) food crops.

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Results
• Result 1 : Inception phase and joint venture registration;
• Result 2 : Engineering and building construction, installation of all machinery and
equipment;
• Result 3 : Marketing plan and brand development;
• Result 4 : Business development of fresh-pack potatoes and sales to supermarkets.

CSR aspects
Both partners have integrated CSR / HRM policies and internationally recognized certificates
for food safety and environmental management. This will also be the case for the joint
venture (GlobalGAP-certified potatoes, ISO 22000).

Impact
Long term economic The project foresees follow-up investments of EUR 700,000 for
activity expansion of the grading and packing lines. In addition, to
increase the volume to 20,000 tons per year the production hall
will be expanded. The expected annual turnover in the second
year after completion of the project − and with follow up
investments − is EUR 3.3 million compared to EUR 2.2 million
at the end of the pilot. The longer term target (4 to 6 years
after PSI) is 40,000 tons per year.

Employment and During the project period 35 permanent jobs will be created of
working conditions which 15 are medium / higher staff. This will be respectively
47 and 17, 2 years after the project. Benefits for employees are
safe and hygienic working conditions, above average salaries,
overtime payment, 3 meals per day, medical insurance and
training. Maba has the intention to also provide staff housing
near the processing / packing facility within the next 2 to
3 years.
The project will indirectly − through Maba Ltd − engage
50 contract farmers.
In addition the project will give structural income to suppliers
of e.g. packing material, spare parts and operation and
maintenance.

Transfer of knowledge Training in Maba Retail will occur across the organisation. Along
with ISO 22000 certification, new technologies, production and
marketing concepts are introduced. Contract farmers of Maba
Ltd will receive some training as well, especially in post harvest
handling methods. Farmers are GlobalGAP certified.

Chain effects Structurally, the applied value-chain approach will result in


efficiency and quality gains along the chain. This will apply to
primary producers as well as to retailers. The concept also
serves as an example for other fresh produce value chains and
relates to the economically and politically highly important
issue of Egypt's self reliance for affordable and safe basic food
products.

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Environment Environmentally the project is sound. Production for the
domestic market under GlobalGAP ensures more sustainable
cultivation methods. The packing facility is ISO 22000 certified
which also ensures minimization of negative impact on the
environment (e.g. water purification). If successful in the long
run in changing consumer habits towards using the potato as a
substitute for wheat and rice, this will have strong
environmental impact as well. Particularly in terms of
optimization of Egypt's scarce water resources (water
requirement for production of 1 kg of potatoes is 10%
compared to 1 kg of rice).

Position of women The project will have non-discriminatory policies for female
employees. At least 50% of them will be women and this also
applies to medium / high level staff.

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Egypt

PSI09/EG/22 Growing Radish in the Egyptian desert for the EU


and CEE markets

Location Wadi El Natroun

Sector Horticulture / Agro-processing

Applicant Zwin Brothers B.V., Monster, The Netherlands

Local partner Al Ahram Co. for Cultivation and Land reclamation S.A.E.,
El Sharqia & Cairo, Egypt

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,499,320 (50 percent PSI contribution)

Goal of the project


To introduce commercial radish growing and packaging in Egypt for sales in export markets
with a production of 1,400 tons at the end of the project.

Summary
Egypt has a fast growing horticultural export sector for supply to European markets (both EU
and CEE markets). To expand its share in the global market, Egypt needs to diversify the
product range and assure highest quality and year round supply. Radish is a crop that is
hardly known in Egypt and commercial production offers opportunities for both the export
and domestic market. This project primarily targets the export market.
The project will start GlobalGAP certified conventional cultivation of 10 ha of radish under
irrigation, as well as the construction and operation of a modern HACCP certified processing /
packing house, and the distribution to EU / CEE markets and possibly Gulf States. During the
project a feasibility study will be carried out to comply with SKAL directives for organic
production, which is the ultimate goal of the partners. At the end of the pilot, production will
be 1,400 tons of packed radish with an annual turnover of EUR 1,750,000.
Applicant Zwin Brothers B.V. (1983) from Monster is a grower, importer and retail-packer of
radish for the EU / CEE markets. Local partner is Al Ahram Co for Cultivation & Land
Reclamation Ltd (1981) from Egypt. Partners will establish a joint venture.
The project is innovative as in Egypt radish is not grown and marketed on a commercial
basis, neither for the local nor export market. Transfer of know-how and technology is high.
The project will contribute to diversification of the horticultural sector in Egypt and will put
Egypt on the map as an international player in this market segment.

Results
• Result 1 : Establishment of the joint venture company;
• Result 2 : Cultivation equipment, cold storage and post harvest handling services
operational and employees trained;
• Result 3 : The joint venture is completely operational.

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CSR aspects
Although a formalized CSR policy document for the partners was not submitted or mentioned
in the Application, it appeared during verification, that both companies have "informally"
incorporated many CSR related issues into their day-to-day business activities. This applies
e.g. to workers' conditions, environ-mental sound practices and community relations, and is
also reflected by the various certificates both companies have (e.g. HACCP / BRC,
GlobalGAP).
The joint venture will work accordingly and a more formal CSR policy document will be added
as one of the project's sub-results in Result 3.

Impact
Long term economic In the follow up phase the cultivated area will be expanded
activity with 10 ha (or 20 ha in case of organic production due to
requirements for rotation). This amount requires an extra
investment of EUR 450,000. This will increase by 50% if
organic cultivation will be practised as more land is needed in a
rotational system.
The expected annual turnover in the second year after
completion of the PSI pilot is EUR 2.8 million (against
EUR 1.4 million at the end of the pilot).

Employment and During the project 14 people will be employed (19 after 2 year
working conditions follow-up) which reflects the rather capital intensive
(mechanized) character of the investment. To a large extent,
the high level of mechanization is common to international
practice of radish cultivation and packing, and the demands for
high quality, safe end-product without skin-damage. Although
relatively low in number, all employees are skilled labourers
and within the Egyptian context (horticultural sector), should
be classified as medium / high. All are involved in operation of
equipment / machinery and will receive training accordingly.
Al Ahram's employees are well paid (much higher than
elsewhere in the sector for comparable positions) and provided
with many secondary benefits, incl. medical insurance and a
pension scheme. The vast majority of staff has already been
with the company for 15 or more years. This reflects the
company's staff policy to invest in human resources and give
attractive remuneration packages as an incentive for workers'
performance and loyalty. The joint venture staff will have the
same package and will work in a safe and clean environment.

Transfer of knowledge All training and other transfer of know-how regarding the
cultivation of radish, packing technology and operation of
international markets (for radish), is new to the country.

Chain effects The project is expected to have a positive impact on the chain
or sector as it will allow for diversification. Radish is a new crop
and if successful in penetrating the international market, other
growers will follow. The project will also give income to
suppliers of farm inputs, packaging materials and spare parts.
With a modernizing retail sector and changing consumer habits,
radish may also very well find a promising domestic market.

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Environment The environmental aspects in this project are related to
cultivation practices and use of water resources for irrigation.
As for irrigation, each and every borehole requires a permit
from the Egyptian Ministry of Water and is subject to an EIA
carried out by the same Ministry according to Egyptian legal
provisions. The actual use of water for irrigation (and
pesticides), will be optimized through Application of the Dutch
"Dacom" system. A high-tech satellite connected monitoring
system with sensors and weather stations to monitor plant
requirements on a daily basis. This system is already in use by
Al Ahram for other crops.
Production will be GlobalGAP certified which means reduction of
pesticides. During the project partners will carry out a
feasibility study for organic cultivation under SKAL directives. If
feasible, production in the follow-up phase will shift towards
organic.
In 5 to 10 years from now, the project is expected to use Nile
water (instead of ground water), as the area is to be connected
to a multimillion USD World Bank project, to build canals from
the Nile to the desert west of the Delta.

Position of women The joint venture will be an equal opportunity employer.


Female employment is expected to be at least 50% of the staff
employed.

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Egypt

PSI09/EG/25 Sinai Integrated Chain Project for Freezing and


Drying of Herbs

Location Abu Sultan area

Sector Horticulture / Agro-processing

Applicant Verenigde Nederlandse Kruidendrogerijen B.V., Biddinghuizen,


The Netherlands

Local partner Al Hoda Co. Cairo, Egypt

Start project 01 January 2010

End project 01 July 2012

Total budget EUR 1,494,950 (50 percent PSI contribution)

Goal of the project


To set up a high quality export chain for herbs and spices in Egypt for sales of 1,400 tons
processed herbs at the end of the project to the West European food and catering market.

Summary
Egypt produces herbs for herbal teas, culinary and medicinal use, both for the local and
export market. Local processing leaves much to be desired leading to post-harvest losses,
microbiological and physical contaminations, and generally low quality of produce, resulting
in a high rejection rate (especially in international markets). The objective of this project is
to improve the value chain for selected herbs (such as thyme, savory, marjoram, sage, basil)
by setting up a processing facility with a drying and a freezing line, and based on controlled
primary production. The project will mainly produce for export.
The location of the project is near the Suez canal, close to the farm of the local partner in the
Sinai. At the end of the pilot annual production will be 1,400 tons of frozen and dried
product, with a turnover of EUR 2.2 million.
Applicant is VNK B.V. (Verenigde Nederlandse Kruidendrogerijen B.V.) from Biddinghuizen.
Local partner is Al Hoda Company Ltd, an agricultural production and trading company with
its headquarters in Cairo. Partners will establish a joint venture with equal shareholding.
The project is innovative as in Egypt the value chain for herbs for the food industry is
underdeveloped. The project will introduce new management concepts and technologies in
the field of growing and processing. Freezing of fresh herbs for the export market is a
novelty in Egypt altogether.

Results
• Result 1 : Preparation phase;
• Result 2 : Construction of building, installation of machinery and equipment;
• Result 3 : Processing / production of herbs.

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CSR aspects
VNK and Al Hoda have good social policies, sustainable production and care for the
environment integrated into their business activities. Both comply with local and international
standards for product quality and safety (HACCP, BRC, TESCO, Organic, etc). Salaries at Al
Hoda are only slightly above what is paid elsewhere in the sector, but they are
complemented by secondary benefits (medical insurance, child care and lunch at work e.g.).
Al Hoda provides the nearby communities with free purified drinking water and is the largest
employer in the area. The project will integrate CSR into its operations and will be asked to
present a CSR policy document in Result 3. During verification it was suggested and agreed
that instead of a (not very critical) EIA for the factory, the project will implement a Labour
Safety Inventory and Implementation Plan according to Dutch standards (ARBO RIE and
PvA). This guarantees that workers' health and safety provisions will equal the standards of
the VNK factory in the Netherlands.

Impact
Long term economic The project foresees follow-up investments of EUR 500,000
activity during the 2 years after completion of the pilot. This is only
related to the processing facility and excludes expansion of the
cultivated area (central production and outgrowers), as the
latter is outside the direct scope of the joint venture. The follow
up investments are targeted at bringing also the final CCS-step
to Egypt, including some retail-packaging for supermarket
chains like TESCO, thereby adding more value to the local
value chain. Total turnover 2 years after the project are
projected at EUR 3.8 million compared to turnover at end of
PSI of EUR 2.7 million.

Employment and During the pilot 61 staff will be directly employed by the joint
working conditions venture (processing facility) of which 7 are medium / high staff.
This figure will not increase during the 2 years follow up period,
which is explained by the fact that employees will be more
experienced and start working in 2 shifts.
The project will also create indirectly employment in primary
production at Al Hoda (50) and for outgrowers (25). At the end
of the 2 year follow-up phase these figures will be 90 and 50.
Salaries will be at least 10% above the average paid for similar
jobs in the sector and workers will have secondary benefits like
basic medical insurance, free lunch and maternity. Workers'
health and safety is critical due to the exposure to dust and the
danger of explosion due to static electricity. This will be
addressed by a Risk Analysis for Labour Safety (RIE) and
subsequent safety measures. This will be incorporated in the
Result Schedule.

Transfer of knowledge Most or part of the training related to cultivation practices, post
harvest handling methods, and − more in particular − the
operations of the processing facility, is new to the country. The
drying and freezing techniques are state-of-the art and energy-
efficient or friendly. Freezing of fresh herbs is altogether new
for Egypt.

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Chain effects At sector level this project will serve as an example of effective
chain management from grower to consumer, with an
important element of value addition and technology transfer to
the local economy. As a spin off, the project will furthermore
create employment and income for a number of local service
providers, e.g. in operation and maintenance and transport /
logistics.

Environment In a narrow sense the scope of this project is the processing


facility only (the joint venture). However, indirectly the scope
also covers the cultivation of herbs. As for the former, impact
on the environment is not critical, apart from the issue of
ventilation and remittance of dust. Provisions to control this will
be according to standards applied by VNK in Holland.
Cultivation practices will be according to GlobalGAP directives,
thereby reducing as much as possible use of pesticides. As for
irrigation, Al Hoda uses Nile water as opposed to ground-water
and makes use of the Dacom system. This system optimizes,
and so minimizes, the use of water for irrigation (and
pesticides), through Application of a high-tech satellite
connected monitoring system with sensors and weather
stations, for monitoring plant requirements on a daily basis.

Position of women The project will aim at employing at least 50% female staff for
all positions. However this may be slightly less in management
positions and higher for production work.

Other impact If the project is successful, partners will set up a social fund for
the community to which they will then contribute EUR 10,000
annually.

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Ethiopia

PSI09/ET/01 Blueberry cultivation in Ethiopia

Location Gurage

Sector Horticulture: vegetables and fruits

Applicant Petruhan Trading and Investment Ltd, Caudan – Port Louis,


Republic of Mauritius

Local partner Linssen Roses Ethiopia PLC, Addis Ababa, Ethiopia

Start project 01 July 2009

End project 30 June 2012

Total budget EUR 1,482,750 (50 percent PSI contribution)

Goal of the project


To set up a blueberry farm to produce fresh blueberries for the European market.

Summary
The world market for blueberries has been growing strongly over the past 5 years; the total
production acreage increased from 29,000 to 48,000 ha worldwide over this same period.
The blueberry belongs to the high-value crops, not at least because of its antioxidant
qualities. The berries are harvested from the end of April until September at the Northern
hemisphere and from September until February in the Southern hemisphere. As the berries
cannot be stored long, there is a period of at least 1 month that no fresh berries are
available on the market. This creates an opportunity for blueberries from Ethiopia, as its
climatic conditions are mainly determined by altitude. By choosing the right location and
varieties, berries from Ethiopia can be brought on the market at a moment that no other
production region can supply berries. The project partners will start a blueberry farm for the
export market in Europe. The applicant company is the horticultural trading company
Petruhan Trading and Investment Ltd from Mauritius. A joint venture will be established with
Linssen Roses Ethiopia PLC. Strategic marketing and knowledge partners in this project will
be Frankort & Koning B.V., its daughter company All Seasons Fruit (ASF), as well as Veens
Blauwe Bessen.

Results
• Result 1 : Preparation phase;
• Result 2 : Evaluation of the adaptation of blueberry plants;
• Result 3 : Observation of berry productions and first transport;
• Result 4 : Second planting and MPS-GAP certification;
• Result 5 : Marketing and Export.

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CSR aspects
The new venture will implement a CSR policy for its personnel including health and safety
issues, environmental and food safety, dealing with corruption and a corporate social
involvement initiative. The company will encourage the establishment of an employee
committee in order to discuss ideas for improvement of the company.

Impact
Long term economic The company will extend the farm in the 2 years after the PSI
activity phase.

Employment and The company will employ 1 farm manager, 3 medium level
working conditions managers, 100 permanent employees for planting, weed
control and pruning and 220 seasonal workers for soil and bed
preparation, construction of hail net structures, blueberry
harvesting and packing. This will increase to 15 management
employees, 350 permanent employees and 720 seasonal jobs
2 years after PSI. The salary for low level workers will be
increased annually by 8%. Secondary working conditions
include medical care and child care for their family. Employees
at management level and the foremen will receive training in
employee management, leadership and dealing with
responsibilities. A HIV / AIDS prevention programme will be
organised, including awareness raising and free condoms.
Training will be given on safety on the work floor, personal
safety, product safety and hygiene.

Transfer of knowledge The handling of soft fruits according to GAP and HACCP
procedures is new for the employees involved, as well as the
technical trainings on blueberry cultivation.

Chain effects Local carton box factories and refrigerated transport companies
will benefit of this project as at the end of the project already
35,000 boxes of 5 kg are needed for export purposes that year.

Environment An Environmental Impact Assessment will be implemented.


However, blueberries are not prone to many diseases or pests,
so hardly any chemical control is needed. As much as possible
biological control will be implemented. Also not many fertilisers
are needed in comparison with other crops. MPS-GAP
certification will be started during the project.
Frankort & Koning will assist in the processes to obtain other
necessary certifications as IFS, BRC or HACCP.

Position of women Nearly all employees will be female, including the farm
manager and some of the supervisors. Out of the 220 seasonal
workers, 145 will be women. All work teams will be of equal
gender, including the foremen and women.

Other impact After the successful finalisation of the third result, the company
will contact representatives of the local community to reach an
agreement on financial support. The company will donate
EUR 10,000 per year over a period of 5 years to improve
schooling and medical conditions of the community. Within this

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framework, the community is free to decide on what specific
activity or materials they want to use the donation.

Page 64 of 290
Ethiopia

PSI09/ET/03 Developing the market for protein rich soy products


in Ethiopia

Location Durqam (40 km southeast of Addis Ababa)

Sector Agro-processing

Applicant Export Trading Company Ltd, Nairobi, Kenya

Local partner DI Patel Co., Addis Ababa, Ethiopia

Third partner Seba Foods (Malawi) Ltd, Lilongwe, Malawi

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,251,500 (50 percent PSI contribution)

Goal of the project


To set up a soybean processing plant in Durqam for the production of Tasty Soy Pieces.

Summary
With a fast growing population, Ethiopia faces challenges to provide enough healthy and
nutritious food to its (young) population. Soya-based products are protein rich products
which can be a healthy supplement to the local diet and can substitute meat. The joint
venture of the Kenyan Export Trading Company Ltd (applicant), the local partner DI Patel Co.
and the Malawian Seba Foods Ltd aims to set up a soya processing plant in Durqam, directly
employing 75 people. For the purchase of (non-genetically-modified) GMO-free soya, an
outgrowers scheme will be set up with 5 farmer cooperatives involving 250 soya producers.
The farmers will be supported with seeds and crop advice. The processing plant will produce
soya based products like Tasty Soy Pieces (TSP), enriched with essential minerals and
vitamins, which can be used as a meat substitute in regular dishes. The products will be
distributed through a network of local wholesale companies and will be sold at a retail price
approximately 25% lower than the price of meat, also in reach for people with lower
purchasing power.

Results
• Result 1 : Joint venture between DI Patel, Export Trading Company and Seba Foods
founded;
• Result 2 : Building and warehouse constructed and related infrastructure completed;
• Result 3 : Soy processing lines installed and plant operational;
• Result 4 : Management and staff trained and suppliers of soybeans supported;
• Result 5 : Sales and business development.

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CSR aspects
A CSR policy will be drafted, including work safety, salary payments, secondary working
conditions, health policy and compliance with environmental standards. A CSR audit (ETI /
SA8000) will be done. General agreements on salaries and working conditions, defy child
labour and applying of gender neutral and non-discrimination policy will be made in
collaboration with the labour union. Furthermore, the project will be HACCP certified and it
will apply all GMP principles.

Impact
Long term economic The follow-up investment concerns doubling of the capacity of
activity the processing lines and expansion of the warehouse.

Employment and At the end of the pilot project 22 high / medium workers will be
working conditions employed, 53 low level workers and 15 temporary workers. In
addition, 250 outgrowers will be involved in the project. Two
years after the pilot 35 high / medium workers will be
employed, 90 low level workers and 25 temporary workers. The
wages will at least be 50% higher than the minimum wages.
Secondary working conditions are free meals, payment of
overtime, HIV / AIDS awareness activities and testing, free
counselling, health insurance and assistance with childcare.

Transfer of knowledge The training will enhance people's working skills, especially with
HACCP and GMP. Special attention will be paid to marketing
and sales and an extensive marketing campaign will be
developed. This will be a valuable experience that is not much
developed in Ethiopia.

Chain effects The processing plant will require an increasing amount of


soybeans. Therefore it is of huge importance that the project
invests in stable relations with a growing number of soybean
producers (through provision of seeds, crop advice, stable
prices, easier access to credits). Moreover soybeans enrich the
soil and can be used for crop rotation (stimulated by
government and NGOs).
A new distribution network needs to be created to sell TSP.
Wholesale companies will be contracted to distribute TSP to
shops and outlets.
At the end of the chain the consumer will profit, as protein rich
food products will come on the market, which can supplement
and replace expensive meat.

Environment At the start of the project an Environmental Impact Assessment


will be done. Hereafter, the necessary investments will be done
to minimize environmental impact. HACCP and GMP will
guarantee that the joint venture operates under international
standards. The training for small farmers will focus on efficient
use of fertilizers, pesticides and water, resulting in very limited
impact on the environment.

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Position of women The company will have a preferential policy to employ women,
especially in the marketing department, quality control
department and administration. The aim is that 10 to 15% of
the workforce is female. Many women work in the soy
production in rural areas. During outgrowers' training, special
attention will be paid to the position of women.

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Ethiopia

PSI09/ET/04 Breeding roses on the African continent

Location Debre Zeit

Sector Horticulture / Floriculture

Applicant De Ollies B.V., De Kwakel, The Netherlands

Local partner Olij Roses Ethiopia plc, Debre Zeit, Ethiopia

Start project 01 June 2009

End project 31 May 2012

Total budget EUR 1,475,000 (50 percent PSI contribution)

Goal of the project


To starting a rose breeding farm of 0.6 ha in Ethiopia.

Summary
Currently, 40% of the worldwide cut rose production takes place in Africa. However, up to
2009 all rose varieties are bred in Western Europe. These varieties are not adapted to the
climatologic circumstances in Africa, mostly resulting in lower prices for the African roses at
the international markets. This project will introduce rose breeding to Ethiopia, leading to
improved new varieties in terms of resistance, yield and vase-life. As such, all rose growers
in the regions close to the equator will benefit from these new varieties, strengthening their
international competitiveness. A joint venture will be started in Debre Zeit between the
Dutch rose breeding and production company De Ollies B.V. and Olij Roses Ethiopia PLC.

Results
• Result 1 : Set up of joint venture;
• Result 2 : Breeding facility built and equipped;
• Result 3 : Pilot production;
• Result 4 : Project completion.

CSR aspects
The joint venture will obtain the following certificates: MPS ABC and SQ, Fair Flowers Fair
Plants FFP and the certificate of EHPEA. These certificates take into account all aspects of
CRS.

Impact
Long term economic After project completion the project partners will construct a
activity propagation greenhouse of 6,000 m2. After project completion
the company will start propagating plants themselves to be
able to deliver plants directly to the rose growers, besides
working with the already established propagators.

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Employment and At the end of the project 15 people will be employed by the
working conditions company, of whom 7 at high and medium level. Total
employment will increase to 65 people as a result of the
investments in the propagation unit. The minimum salary paid
to the production workers will start at Birr 12 per day, which is
Birr 3 higher than the minimum in the sector. Working
conditions will be according to Fair Flower Plants standards. The
company will provide subsidized lunches and will provide work
clothes and transport services. Health care costs will be
reimbursed by the company.

Transfer of knowledge All knowledge related to the breeding process and its
registration procedures is new for Ethiopia and involves higher
skilled people.

Chain effects This project introduces the missing link in the rose production
chain in Ethiopia. All African growers will benefit from this
activity as higher quality roses are expected to result in
increased market prices for the African roses. Further, the new
varieties will give higher yields per plant. It will make the
African rose growing sector more competitive.

Environment It is expected that the project will have a positive impact on the
environment in the regions where roses are being produced.
This is due to the fact that the new varieties will be less
sensitive to diseases, so there will be less need to use
pesticides. In the case of the joint venture, an EIA will be
conducted and production will be certified according to MPS
ABC, SQ and FFP.

Position of women The impact on the position of women will be positive as the
management (administrator and agronomist) will be female
and most of the employees as well (12 out of 15).

Other impact The new company will implement social projects such as
assistance to start a school.

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Ethiopia

PSI09/ET/23 Pilot composting in Ethiopia: Soil fertility, Ecology


and Rural Development

Location Ziway

Sector Biological agriculture

Applicant Rhea Holding B.V., Waddinxveen, The Netherlands

Local partner Farm Organic International Private Limited Company, Addis


Ababa, Ethiopia

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,356,600 (50 percent PSI contribution)

Goal of the project


Setting up a composting plant to produce organic compost with a maximum production
capacity of 40,000 m³ organic compost per year and sell this organic compost to farmers,
coops and unions in the region of Ziway.

Summary
Due to extensive use of artificial fertilizer, the soil in the region Ziway has become
exhausted, while on the other hand about 85% of the people are dependent on agriculture
for their employment.
The result is decreasing yields for the farmers which they try to compensate by using even
more intensive farming methods.
Soil & More, daughter company of Rhea Holding B.V. (applicant) will set up a joint venture
with Farm Organic International Plc (local partner). The core business of the joint venture is
the sustainable and economically-viable production of a high quality and environmentally-
friendly compost.
The partners are planning to produce commercial quantities of compost using the green
waste of roses. The partners will get these input from rose farmers in the region of Ziway,
turn this into organic compost within 8-10 weeks, and sell this to the same rose farmers and
other private farmers, small-holder farmers, coops and unions.
There is no other existing organic composting plant in Ethiopia which produces organic
compost with the proposed technology of Controlled Microbial Composting (CMC).

Results
• Result 1 : Set up joint venture;
• Result 2 : Establishment facilities, recruitment and training;
• Result 3 : Human Resource policy, training;
• Result 4 : Certification and business development;
• Result 5 : Sales and completion.

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CSR aspects
Besides the environmental impact of the project the joint venture is going to implement a
CSR policy which contains social standards including a gender policy, employment standards,
working manuals on "salary and wages", working conditions (health and safety programme),
rural development (during the implementation of the project a parallel farmer support
programme will be run together with local NGOs). Further, the production process will be
qualified with an Eco Cert or another European equivalent. The organic compost will be
validated by TUV Nord.

Impact
Long term economic The planned follow-up investment will be used to increase the
activity input capacity to 40,000 m3 per year. The investment will be
used for further professionalising facilities, machinery and
equipment with higher capacities.
Furthermore the project partners plan to cooperate with small-
scale cooperatives to set up small-scale composting sites
throughout the country. Since the transport of input is
relatively expensive, it is better to set up several small-scale
compost sites.
Besides setting up compost sites, another object of cooperation
of SMI and FOI will be the carbon and water foot printing
services.

Employment and At the end of the pilot project, the amount of full-time
working conditions employees will be around 40 people. Five of them will work in
the management of the composting facility and 35 people will
be employed as production employees, operating the machines,
trucking, loading and other type of work.
Two years after ending the project the amount of employees
will be 60. The wages will be at least 10% higher than the
minimum level of Ethiopia.
The joint venture will use a HRM policy, which will include
working conditions like limited working hours and HIV / AIDS
preventing programme.

Transfer of knowledge The knowledge of organic farming and composting is not well
developed in Ethiopia. The technical knowledge about
composting and organic farming and skills acquired for the
production of compost is new. Also the joint venture will
introduce working conditions based on Western standards.
Furthermore the management will be trained based on Western
standards in accounting, monitoring and technicalities. The
project will raise environmental awareness. Besides the
influence on the direct employees of the compost site, local
farmers will be invited to visit the production facility and also
50 small holder farmers will be trained in sustainable farming.

Chain effects The raw materials will come from the 8 rose farmers, whose
waste problem will be solved. The customers, private sectors,
coops union, will benefit from the project because their yields
will increase by using the organic compost for their land.

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Environment The joint venture proposes a biological process. Obviously this
project will have a positive impact on the environment since
the use of chemicals and pesticides will be reduced. Also the
enormous amounts of waste which are currently being dumped
and start emitting methane, a greenhouse gas which is a lot
stronger than CO2, will be reduced. SMI designed a composting
system that complies with UN standards for CO2-emission
reduction projects. Another big problem which is being
addressed in this project is the increasing water scarcity. The
farmers can save significantly on their water irrigation using
the organic compost which will be produced by the joint
venture.

Position of women Women will be hired in technical, administrative and laboratory


positions whenever possible. Emphasis will be given to the
development of knowledge and skills of women.

Other impact The project will improve the quality of the agricultural ground
in Ethiopia. Also, the health impact is huge since it cleans the
air and removes the bad smell of the waste in the surrounding
area.

Page 72 of 290
Ethiopia

PSI09/ET/25 LaserTech Ethiopia Ltd; Ethiopia's first recycling


and remanufacturing company of cartridges and
toners

Location Tefke, Sebetta township

Sector Industry: recycling (non chemical)

Applicant LaserTech Kenya Ltd, Nairobi, Kenya

Local partner Rina International Trading Plc., Addis Ababa, Ethiopia

Start project 01 January 2010

End project 01 June 2011

Total budget EUR 1,499,540 (50 percent PSI contribution)

Goal of the project


To set up a cartridge and toner recycling facility which on full capacity will recycle
42,000 toner cartridges, 16,800 inkjet cartridges and 42,000 ribbon cartridges.

Summary
Per annum at least 4,800,000 cartridges and toners are imported into Ethiopia. Duties are
extremely high and recycling and remanufacturing of cartridges in a responsible way are
non-existent.
The applicant Lasertech Kenya and the local partner Rina International Trading Plc. propose
to set up a cartridge and toner recycling facility equipped with specialized machinery for
refurbishment and testing in Tefke, right next to Sebetta township, Ethiopia. The joint
venture will be named Lasertech Ethiopia.
The partners distinguish a favourable climate to start up this business in Ethiopia. They
indicate a significant need for affordable cartridges and toners of good quality, a shortage of
foreign currency to pay for imports, plus very high duties and taxes of about 50 percent on
imports of cartridges and toners.
The environmental impact of this project can be significant, since currently most cartridges
and toners are being dumped in the garbage. Via this project, the project partners want to
create environmental impact and inform citizens about the consequences of dumping the
cartridges and toners.

Results
• Result 1 : Project Inception;
• Result 2 : Construction of factory. First steps in awareness campaign, marketing and
promotion of recycling of cartridges and toners. Collection system set-up will
be started;
• Result 3 : Purchase, installation and testing of hardware;
• Result 4 : Knowledge transfer. Training of all staff. Promotion / marketing of the new
company brand. Awareness campaign;
• Result 5 : Pilot production and business development.

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CSR aspects
LaserTech Ethiopia will offer a solution to the current dumping of cartridges and toners which
is very environmentally unfriendly. The company will incorporate an environmentally
responsible way of handling their waste disposal. The partners will work together with Close
the Loop, an Australian recycling company with the specific goals of recycling toner and
inkjet cartridges, to recycle the plastic parts that finish as waste. The ink waste will be
recycled for the use of dying textiles and the production of shoe polish. Further the partners
aim to implement a CSR-policy which will include social standards like competitive salaries,
health protection, health care programmes, food, child care for women and personal care. At
the farm of Golden Rose which is beside the project premises, there is a clinic, a school and a
nursery (day-care) for staffs' children.

Impact
Long term economic The first planned follow-up investment 2 years after the end of
activity the project will be used to invest in upgrading with the latest
technology.
Furthermore, the partners will invest in the increase of staff,
training of staff and collectors, purchase of equipment items
and more vehicles. When the partners have developed a stable
and known brand, they plan also to offer maintenance and
repairs of computers, refurbished printers, printer maintenance
contracts, hardware maintenance contracts and network
solutions. The aim is then to establish a "One-stop-shop".
Finally, the partners aim to expand their business with the
export to Sudan and win East African tenders. This will require
marketing and setting up offices in other countries.

Employment and In total, 30 jobs will be created, of which 8 are low level jobs
working conditions and 22 high level jobs. The total number of jobs 2 years after
the end of the project will be 38.
The number of indirect employment is estimated at 28 jobs.
Two years after the end of the project this will be about
52 indirect jobs.
Forty to 50 persons will be hired as collectors and will work on
a commission basis.
The partners will provide with good working conditions and
benefits to serve their employees.

Transfer of knowledge The employees will acquire new skills and knowledge in the
field of remanufacturing and refurbishing cartridges. This
technical know-how is currently not present in Ethiopia.

Chain effects The parties that will benefit from the joint venture's activities
are the customers who currently have to purchase imported
cartridges and toners. LaserTech will also provide smaller
companies and private persons with cartridges, who currently
cannot afford them.
Third parties, like shop owners and independent collectors will
benefit from this project since their income will rise and new
job opportunities will be provided.

Page 74 of 290
Environment This project will set an example and create awareness for the
public. Currently all damaged and non refillable cartridges and
toners end up in the garbage. Toner is a very fine powder
which is cancerous and is so fine that it can penetrate the skin
and enter the bloodstream directly. Inhalation of toner is also
dangerous.
A lot of toner and cartridges have a selenium drum. Selenium
has a very negative impact on the environment.
LaserTech Ethiopia will maintain appropriate measures
regarding public health, hygiene, solid waste, liquid waste,
sewage, water usage and energy saving.

Position of women The project will strive to employ at least 60% woman.

Other impact The involvement of the company New Start to recruit and train
employees provides for an extra social dimension to the
project. For the employment of employees, New Start focuses
on recent graduates and socially excluded groups like long term
unemployed, older people, HIV / AIDS infected working in the
sex industry, handicapped and undereducated people.
Furthermore, the cartridges and toners will be sold under an
Ethiopian local brand.

Page 75 of 290
Ethiopia

PSI09/ET/27 Farming for the future

Location North west of Debre Zeit (Bishoftu town)

Sector Animal husbandry modern / intensive

Applicant Flier Beheer B.V., Barendrecht, The Netherlands

Local partner Holland Dairy Plc., Debre Zeith, Ethiopia

Start project 01 January 2010

End project 01 January 2013

Total budget EUR 1,499,940 (50 percent PSI contribution)

Goal of the project


Set up of a mixed farm that produces annually a maximum of 9,925 tons of animal feed
products and 430,000 litres milk in Debre Zeit Ethiopia.

Summary
Ethiopians have used milk as part of their diet for centuries. Most of the milk is produced by
rural small-scale farmers. Although Ethiopia has the largest livestock population in Africa, the
total milk production is very low in comparison with other African countries.
This is caused by the low average yield of 166 litres per cow per year. The constraints the
dairy sector is dealing with are poor dairy genetics, animal diseases, availability of feed and
fragile markets.
This project will introduce good quality fodder crops for dairy farmers and will show improved
animal husbandry practices at farm level. Applicant Flier Beheer B.V. from The Netherlands
will start a strategic alliance between Alfa Farms and the dairy processing factory Holland
Dairy PLC. in Debre Zeit. Alfa Farms will produce fodder crops for cattle like Lucerne, maize,
triticale, grass and fodder beets and sell the Total Mixed Ration feeding to at least 500 small
scale farmers in the area around Debre Zeit, enabling a 50 percent reduction of feed costs
per litre milk produced. A demo farm will be started in Debre Zeit with the objective to show
and train farmers how to improve animal husbandry practices, leading to higher milk
production. As such, the project will improve the dairy chain around Debre Zeit area.

Results
• Result 1 : Project inception phase;
• Result 2 : Farm buildings constructed;
• Result 3 : First forage crop harvested;
• Result 4 : First milk delivered;
• Result 5 : Farm fully operational.

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CSR aspects
The applicant started his activities in Ethiopia 10 years ago with a drive of poverty reduction.
However, as a real entrepreneur he believes this can only be achieved on a sustainable way
if you do that by running a successful company.
Alfa Farms is a partner in the joined efforts in Debre Zeit of several Dutch business people.
The profit of the company will be reinvested to continue the expansion of forage and food
production. The company will implement integrated crop management principles, work
according to a Human Resource Management handbook including a code of conduct.

Impact
Long term economic The project partners will do an extra investment by importing
activity additionally 100 heifers, by increasing the area for fodder crop
production with 100-150 ha and to start a farm shop.

Employment and In total 62 people will be employed and 100-200 people will
working conditions have seasonal jobs. Out of the 62, 12 will be on medium and
high management level.
Two years after PSI this will be 25 managerial level, 80 people
at operational level and 200-600 seasonal workers. The latter
depending on the type of crop. The basic salaries will be 12%
above locally paid wages for comparable jobs. The HRM and
salary policies include employee discount on farm products,
extra hours are paid, farm meals, free education and training,
personal development planning including management
trainings, free first aid and a health care prevention plan, free
birth assistance for women and paid maternity leave, voluntary
HIV prevention programme and testing, collective transport,
child care on the farm, free English lessons, safety standards.

Transfer of knowledge New skills and knowledge level acquired by local employees will
be measured by recognised certificates. At the start of the
project qualifications of each employee will be documented. As
a result of the education and trainings received from Alfa
Farms, the employees' level of acquired knowledge will be
tested by the Hope University.
However, the knowledge on forage production will be new for
Ethiopia. At least 500 farmers will be trained in animal
husbandry practices.

Chain effects The sales of forage to the animals will result in higher milk
output per cow, as well as in lower feed costs per litre milk
produced.
Therefore, the farm income of at least 500 small scale farmers
will increase. Secondly, the dairy factories in that region will be
able to source more and better quality milk closer to the
factory, enabling them not only to expand the production, but
also to change to high-value dairy products. With a substantial
increase of milk production in Ethiopia, there is less need for
import of milk powder, saving foreign currency. In future, by
the export of Lucerne hay foreign currency will be generated.

Page 77 of 290
Environment An Environmental Impact Assessment will be executed during
the first result. The forage will be produced according to
Integrated Crop Management principles. It is expected that the
impact on the environment will be neutral.

Position of women Six out of 12 management positions will be held by women;


however the positions will be open for men and women. The
seasonal workers will mainly be women. In total 150 women
will be involved. On-farm child care will be started. Alfa Farms
will cooperate with Hidi Clinic, offering emergency help and
delivery assistance to women. Alfa farms will support women
by organising empowering discussions.

Other impact Alfa farm will supply drinking water to the neighbouring
community on an accessible place.

Page 78 of 290
The Gambia

PSI09/GM/21 Establishing local production of metal building and


construction materials in the Gambia

Location Greater Banjul

Sector Industry: metal

Applicant Finish-Profiles B.V., Purmerend, The Netherlands

Local partner MA Trading Ltd, Banjul, The Gambia

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,499,486 (50 percent PSI contribution)

Goal of the project


To establish a local production facility for steel and sheet metal building and construction
materials, parts, kits and turnkey buildings, offering 6 different types of profiles and metal
sheets and at least one standardized construction package for residential buildings, to the
local market.

Summary
In the Gambia housing supply is not able to keep up with the population growth, especially in
urban areas. Major factors hampering the development of the housing sector are a lack of
building and construction materials, landownership issues and problems with housing
finance.
Applicant Finish Profiles B.V. from the Netherlands is a specialized producer of steel profiles,
wall panels and roofing sheets for use in pre-fabricated constructions of houses, offices,
warehouses and industrial buildings. Local partner MA Trading from The Gambia is involved
in trade of all sorts of construction and building materials, both for the local market and for
the export to other ECOWAS countries.
Steel profiles and roofing sheets are already being imported to the Gambia, but in order to
bring these products at affordable prices, the partners now want to invest in a local
manufactory for metal building and construction materials. The partners will establish a joint
venture and initially will focus on the local market.
The project will be located in one of Gambia's Economic Free Zones, which gives the partners
the tax exemption advantage over imported building materials. By seeking cooperation with
the Social Security & Housing Corporation and local banks and real estate developers, the
partners intend to help and ease the current issues with insufficient housing supply.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Manufactory operational and employees trained;
• Result 3 : Joint venture completely operational.

Page 79 of 290
CSR aspects
The partners will respect the ILO instructions and guidelines. The factory will become ISO
9001 certified. Minimum wages and working hours will be in accordance with the Gambian
Labour Act.
In addition, the partners realize that providing building materials at affordable prices alone is
not sufficient to solve the housing problem in the Gambia. They will therefore seek
cooperation with national and international organizations involved in housing issues, like UN
Habitat, in order to solve land ownership and financing issues for the poor.

Impact
Long term economic In the 2 years after the PSI project phase the partners will
activity invest another EUR 420,000 in an own factory annex office
building made of their own construction material, and in
employing and training a second shift of personnel.
The partners will continue their cooperation on a fifty-fifty basis
and intend to fully reinvest their earnings in additional
production capacity in the first 5 years of the company's
existence.

Employment and At the end of the project the joint venture will be employing
working conditions 19 people (15 metal workers, 1 designer-engineer, 1 marketing
and sales and 2 administrative-financial).
Two years after the project an additional 15 metal workers will
be hired and an additional designer-engineer or marketing-
sales person.
The salaries paid will at least be in line with minimum wage
levels. On top, all employees will receive health insurance.
Furthermore, the joint venture will aim at complying with global
good practices.

Transfer of knowledge The concept of prefabricated building is new to the Gambia.


This project introduces new contemporary production
technology and design, structural calculation and planning tools
to enable this new kind of building.
The designer-engineer and the metal workers will be trained in
designing and working with blueprints and advanced
machinery, in a way that is currently not known in the Gambia.

Chain effects This project will be the first professional production site of steel
and metal building and construction materials in The Gambia.
This will affect the construction sector as more building
opportunities will become available at a lower price. By
introducing the modular building concept of prefab houses,
buildings can be built faster and customized to any demand.
This will have positive impact on the construction sector in
general.

Environment The impact on the environment is neutral. In fact, the prefab


houses are better insulated than normal houses and therefore
easier to keep cool. This will save on energy costs for air-
conditioning.

Position of women The partners will strive to employ 50% women.

Page 80 of 290
Other impact The joint venture will cooperate with local educational
organizations and offer practical trainee positions for students.
Furthermore, the partners will actively seek cooperation with
organizations involved in improving affordability of good
housing and shelter, such as Shelter Afrique, the African
Housing Fund and UN Habitat.

Page 81 of 290
Ghana

PSI09/GH/02 Vehicle Testing in Ghana

Location Tema and Brong Ahafo Region

Sector Transport industry

Applicant Van Leeuwen Test Systems B.V., Etten-Leur, The Netherlands

Local partner Toptech Drive Consult Limited, Accra, Ghana

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


To contribute to road safety in Ghana by establishing the first automated licensed Vehicle
Testing Station in Tema with a capacity of 30,000 tests per year and a new licensed mobile
Vehicle Testing Station for the Brong Ahafo Region with a capacity of 20,000 tests per year.

Summary
Ghana's vehicle fleet is in a very unsatisfactory state which results in unsafe situations. In
combination with driver's misbehaviour, it is the cause of an extreme high level of road
accidents. The Driver Vehicle and Licensing Authority (DVLA) of Ghana introduced a more
rigorous and comprehensive roadworthiness examination and certification system, based on
European methods. It includes safety issues and emission levels. The new vehicle testing
standards are to be implemented at new Vehicle Testing Stations, to be built and operated
by licensed private sector parties. Toptech Drive Consult Ltd (TDC), local partner of this PSI
project, obtained one of these licenses. Together with the Dutch applicant Van Leeuwen Test
Systems B.V., they aim to set up the first automated Ghanaian Vehicle Testing Station.
Although DVLA has already issued licenses to private sector parties, due to the high risks,
none have so far actually set up a testing station. This PSI project can set the example in
setting up commercially operated high quality testing stations. The partners will also operate
a mobile testing unit in the less dense populated region of Brong-Ahafo. The project will
create 54 direct jobs. Furthermore it will create additional work and income for repair
workshops and suppliers of vehicle spare parts, because it is foreseen that a significant
number of cars will fail the tests. To prevent conflicts of interests, DVLA prohibited testing
stations to provide vehicle repair services.

Results
• Result 1 : Business foundation / project inception;
• Result 2 : Fixed vehicle testing station and training facility established and staff trained;
• Result 3 : Mobile vehicle testing station set up and staff trained;
• Result 4 : Business development and certification.

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CSR aspects
The project will raise awareness on road safety in collaboration with the Global Road Safety
partnership. The joint venture's internal process will be ISO 9001 certified, assuring that it,
on top of the national standards, is working according to international quality standards. The
partners aim to work according to a high CSR profile. Corruption in relation to car test results
for example, will be prevented by not letting the car owner meet the inspector. Generous
remuneration packages will be provided to retain staff (good salary, health care system,
taking part in the Collective Bargaining Agreement of the transport sector and workers'
union). In addition a Social Fund will be established to which 10% of the annual net profits
will be transferred. This fund will be used for social projects for staff and for community
projects.

Impact
Long term economic The partners are committed to a long term cooperation. In the
activity spin-off phase the capacity of the Vehicle Testing Station in
Tema will be doubled to 6 testing lanes. In addition at least
3 new stations (x 3 testing lanes) will be set up elsewhere. This
would bring the joint venture's capacity to 15 lanes enabling
inspection of 25% of Ghana's vehicle fleet. The required follow-
up investment will amount to approximately EUR 4,000,000.
The project partners are considering to operate the new Vehicle
Testing Stations under a franchise formula through which other
operators can participate under the joint venture's overall
license. The joint venture could also provide the required
technology and technical assistance to the franchisees.

Employment and At the end of the project period 54 people (8 high level,
working conditions 23 medium level and 23 low level) will be employed by the
joint venture. Two years after the pilot 202 people (31 high
level, 86 medium level and 85 low level) will be employed.

Transfer of knowledge VLT will introduce new knowledge on the use of modern test
technologies and technical performance of private and
commercial vehicles. Staff especially has to be trained in
logistics and work-order to make sure that the run-through
time per car is at its shortest, without compromising quality
and effectiveness of the test.

Chain effects The joint venture's activities will be strictly separated from car
repair services. Therefore, mechanics and car technicians will
take advantage of the fact that (more) failed vehicles need
repair services or replacement of parts.

Environment The joint venture's operation itself will have little to no impact
on the environment. The only waste will consist of cars that
failed the test and cannot be repaired, and for which the car
owners are responsible. Indirectly the initiative will bring
improvement to the environment as, on the long run, vehicles
need to comply with the emission standards.

Position of women The project partners will positively discriminate the recruitment
of female staff. Approximately 20% of the workforce will be
female.

Page 83 of 290
Other impact The project will, on the long run, contribute to road safety in
Ghana, with a positive influence on the accident rate, leading to
less injured and death people and less (financial) losses.

Page 84 of 290
Ghana

PSI09/GH/21 Volta Fruits: joint venture for Tropical Fruit


Processing in Ghana

Location Liati, Volta Region

Sector Agro-industry

Applicant Afropa Nederland B.V., Zeist, The Netherlands

Local partner Volta Fruits Estate Ltd, Accra, Ghana

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,485,000 (50 percent PSI contribution)

Goal of the project


To establish a fruit infusion and drying plant with the capacity of processing 140 tons of
infused products per year for export to the European market.

Summary
The local partner Volta Fruits Estates Ltd (Volta Fruits) and small farmers in the Volta region
produce mangoes and pineapples. As the fruits, and especially mango's, often do not meet
the international requirements for fresh exports, large quantities go to waste because there
is no large local market. To create a new market for mango's, a plant will be set up in Liati to
process fruits into infused dried tropical fruits. The end product will primarily be exported to
Europe for further application in the food processing industry. The new factory will be located
on the mango and pineapple farm of the local partner. The applicant company Afropa
Nederland B.V. (Afropa) has a strong European network to market the products. The
technology on fruit infusion will be brought in by third partner Agriplan.

Results
• Result 1 : Inception phase and formalisation partnership;
• Result 2 : Construction of fruit processing facility;
• Result 3 : Marketing and business development.

CSR aspects
The joint venture will offer good and safe working conditions, at least in accordance with ILO
standards. No child labour will be allowed. A HR policy will be implemented, including
housing, meals, medical care, transport, training, education, maternity leave and child care.
The employees will be encouraged to join trade unions and meetings with management staff.
Equal rights and opportunities for men and women will be offered. An environmental impact
assessment will be included in the first result of the project. The new factory will obtain the
following certificates: ISO, Fair Trade and HACCP.

Page 85 of 290
Impact
Long term economic To double the capacity of the factory EUR 950,000 will be
activity invested in the 2 years after the PSI project. The investment
will mainly be done in extra production lines. The investment
partners have committed themselves to a long term
cooperation.

Employment and At the end of the project 30 (25 low level and 5 medium / high
working conditions level) people will be contracted by Volta Fruits. Two years after
the project this will be 90 (80 low level and 10 medium / high
level). Employees will be offered a meal during lunchtime and
protective clothing.

Transfer of knowledge The transfer of new knowledge will mainly be focussed on fruit
preparation and processing according to international
standards. Furthermore several farmers will be trained on
improved tropical fruit production.

Chain effects The processing facility will create a new outlet for mango's in
Ghana, for mango's which do not respond to export
requirements and would otherwise go to waste as local demand
is smaller than supply. At least 20 farmers will be involved in
the supply of fruits.

Environment The impact on the environment will be neutral. In the first


result of the project an impact assessment will be executed.

Position of women The impact on the position of women will be neutral.

Page 86 of 290
Ghana

PSI09/GH/23 Establishing a high value certified production chain


for extruded floating fish feed

Location Vicinity of Tema

Sector Agro-industry (fish feed)

Applicant Raanan Fish Feed Ltd, Ashrat, Israel

Local partner Sefa & Jane Agro Chemicals Ltd, Kumasi, Ghana

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,498,500 (50 percent PSI contribution)

Goal of the project


Establishment of a fish feed factory for the processing of 3.5 tons extruded floating fish feed
per hour for sales on the Ghanaian market, and for export to neighbouring countries.

Summary
In the Ghanaian fish sector, fish feed for commercial fish production is imported. This makes
the feed quite expensive. Since the fish farming sector is growing, the increasing need for
fish feed creates opportunities for the development of local fish feed production. Therefore
the project partners aim to set up a fish feed factory in Tema. Local production would reduce
the cost for the feed, as costs for transport, insurance and clearing will be avoided. For the
production of fish feed, primarily local products will be used. Therefore a lot of indirect
employment will be created among farmers.
The applicant Raanan Fish Feed ltd (Raanan) in Israel is already exporting fish feed to the
Ghanaian market. By starting production in Ghana, it wants to expand its Ghanaian market
and the market in Benin and Nigeria. Sefa & Jane Agro Chemicals Ltd (SJAC) will set up a
joint venture with the applicant. The local partner currently distributes Raanan's fish feed
and provides trainings to farmers. During the project the local partner will also train local
farmers on how to grow the crops which are input for the feed, while Raanan will train fish
farmers on aquaculture.

Results
• Result 1 : Business structure established;
• Result 2 : Production facilities operational;
• Result 3 : Staff recruited and trained; fish farmers' school established;
• Result 4 : Farmers trained and contracted;
• Result 5 : Business development and certification.

Page 87 of 290
CSR aspects
The joint venture will implement a HR policy as currently applied at Raanan Israel. The
partners will provide a safe and healthy working environment according to OHSAS. The
company will be ISO 9001 and 14000 certified. Medical insurance, transport and lunch meals
will be offered to the employees. Chain responsibility is taken seriously for upstream as well
as downstream activities with the aim to contribute to a sustainable business.

Impact
Long term economic Once the plant is established, follow-up investments of
activity EUR 1.0 million are foreseen to enlarge the capacity in order to
expand the existing market and to target new markets such as
Burkina Faso, Cameroun, Gabon, Ivory Coast, Senegal and
Togo. Moreover, the joint venture wants to gradually convert
from conventional production into organic production.

Employment and At the end of the project 33 people (15 low level and 18 high
working conditions level) will be contracted at the factory. In total 150 jobs will be
outsourced of which 3 farmers (organisations) will be
subcontracted for the supply of raw materials. The other
outsourced positions are in transport, clearing, legal and
financial advice, technical assistance, etc. Two years after the
project 63 people will be contracted (32 low level and 31 high
level). Moreover 2 year after the project, in total 40 farmer(s)
organisations will be subcontracted and 12 other
subcontractors will be involved in the project.

Transfer of knowledge The knowledge on the production of extruded floating feed will
be new for the country and will be according to international
standards on safety, health, environment and quality
management. Furthermore 100 small fish farmers will be
trained in aquaculture and 10 farmers or farmers organisations
in agricultural production.

Chain effects The fish feed will become easily available, of better quality and
cheaper which can give a boost to fish production in Ghana.
Indirectly employment will be created for farmers who will
supply the plant with soya and corn.

Environment The impact on the environment will be neutral. Energy saving


measures will be taken and water recycling and filtering
technologies will be used. Furthermore extruded floating feed is
less polluting than pelletized feed that sinks to the bottom. For
catfish feed only MSC fish by-products will be used. For Tilapia
feed no fish by-products will be used, but poultry by-products.

Position of women Female employment will be positively discriminated. The joint


venture aims to recruit 40% female employees.

Other impact Micro finance schemes will be set up for farmers with the
assistance of the fish farmers association. Furthermore the
project is substituting the import of extruded floating fish feed.

Page 88 of 290
Kenya

PSI09/KE/03 Breakthrough in solar energy manufacturing in


East Africa

Location Nairobi

Sector Energy

Applicant Ubbink B.V., Doesburg, The Netherlands

Local partner Largo Investments Ltd, Nairobi, Kenya

Start project 01 June 2009

End project 30 July 2011

Total budget EUR 1,481,500 (50 percent PSI contribution)

Goal of the project


To start the first East African manufacturing plant for polycrystalline (PV) modules with a
production of 15,000 modules at the end of the pilot.

Summary
East Africa is a fast growing (import) market for solar energy applications and Kenya in
particular is leading in this respect. However growth figures dropped over the last few years
due to the particular composition of technological solutions and modules supplied and the
segmentation of the consumer market. This project will contribute to the further local (and
regional) development of this sector, by establishing the first production plant for high
quality poly-crystalline PhotoVoltaic (PV) modules in East Africa. In addition, a low-voltage
mini-Solar Home System (SHS) will be developed and introduced to the market at a
revolutionary price. The project introduces high-tech laser and lamination production
technology and expects to be a catalyst for further development of the solar chain. Laser
technology is applied to convert rejected but reusable solar cells from European factories into
mini-cells.
Partners in this new venture are: Applicant Ubbink B.V. from Doesburg which is part of the
Centrotec Group of companies and local partner the Kenyan company Largo Investments Ltd
in cooperation with its 100% subsidiary Chloride Exide Kenya Ltd. The project is highly
innovative. There is no production of solar modules in East Africa yet; all systems are
imported. The project involves a high element of technology transfer and training and will
benefit urban and rural households. It is also expected to result in policy changes to arrive at
a more favourable investment climate for local producers of solar energy applications, and a
further deepening of the solar system producer and consumer market.

Results
• Result 1 : Set up of joint venture;
• Result 2 : Production facility built and equipped;
• Result 3 : Pilot production and training;
• Result 4 : Completion of the project.

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CSR aspects
Both partners have integrated CSR policies and an excellent reputation in this respect. As for
the applicant, CSR in a wider context is – next to sound commercial interests – one of the
drivers behind this project. The following aspects will be part of the project's CSR policy:
• Staff Code of Conduct, attractive salaries and sound labour standards;
• Health and safety policy (favourable package including basic medical insurance);
• Sound environmental standards, reduction of negative environmental impact;
• Human rights, anti-corruption, product quality and chain responsibility.

Impact
Long term economic Follow-up investments of EUR 1,050,000 are projected during
activity the 2 years after completion of the pilot. This includes
investments of EUR 400,000 in a second production line;
EUR 150,000 to invest in development of new high-end
applications, and EUR 500,000 for investments to enter the
market of grid-connected solar systems. The expected annual
turnover in the second year after completion of the pilot is
EUR 2.90 million (EUR 1.45 million due to the PSI investment).

Employment and During the project 32 people will be employed of whom 5 are
working conditions medium / higher staff. This will be respectively 48 and 9,
2 years after the pilot. Wages are considerably higher than the
minimum for similar positions in the local manufacturing sector.
Side benefits include training, lunches at work, performance
related and annual bonuses, housing allowance, medical cost
reimbursement, transport from home to work and a pension
scheme. Working conditions are good with ample attention to
occupational health and safety. The joint venture will develop a
staff Code of Conduct in line with the existing Code of CEKL.

Transfer of knowledge All training related to the production process is new to the
country. Modern technologies and production concepts will be
introduced. The extensive training package foreseen in this
project will importantly contribute to new knowledge and skills
for employees across the organization.

Chain effects The establishment of a local production unit for high quality
solar modules is expected to have a profound impact on this
sector, both in terms of supply, but – equally important – by
pushing the boundaries of the market much further. This is
particularly true when the mini-SHS proves to be a success on
the market and shall become in reach of new groups of
consumers, who could otherwise not afford it. It is further
anticipated that the example of high quality local production by
a professional partnership, backed by conducive fiscal
government policies, will invite others to invest in the sector,
thus crowding-in new players in the market and making it even
more competitive and innovative. Parties benefiting in the long
term are distributors / retailers, system integrators, end-users
(households and small businesses, schools, hospitals who are
off-grid) and local producers of components. The project
expects to give structural work and income to minimal 3 sub-

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contractors or other suppliers of goods and services.

Environment The project will have a positive impact on the environment as


solar energy will, to an important extent, replace the use of
batteries and kerosene. A limited EIA will be carried out prior to
construction of the production facility. NEMA certification also
includes environmental screening, next to an inventory of
occupational health and safety risks.

Position of women The percentage of women in almost all positions is expected to


be 50% and possibly even higher at production level due to the
required accuracy in this high tech environment. Women will
get the same remuneration package as men for similar
positions and are entitled to pregnancy leave.

Other impact Widespread use of solar systems will have a positive effect on
the productive capacity of households and small businesses
who are now off-grid, which applies to over 70% of Kenya's
population, particularly in the rural areas.

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Kenya

PSI09/KE/04 Introducing seed based propagation in the Kenyan


cut flower sector

Location Naivasha

Sector Horticulture

Applicant Bloom B.V., Amstelveen, The Netherlands

Local partner Stokman Rozen Kenya Ltd, Naivasha, Kenya

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 913,000 (50 percent PSI contribution)

Goal of the project


Introducing seed based propagation in the Kenyan cut flower sector by establishing a fully
integrated seedling propagation unit for Lysianthus.

Summary
Kenya is one of the largest exporters of cut flowers. The local flower market in Kenya is
maturing and deepening in the sense that, as a spin-off of primary production, more and
more segments of the chain are being developed and commercialised in a professional
manner. Besides, service related activities are initiated and brought to international
standards (agro-inputs, packaging, laboratory services, integrated pest management, etc).
This project aims to capitalize on these dynamics by establishing a local seed-based seedling
propagation business for selected cut flowers, in particular Lysianthus. This will replace
expensive overseas imports of seedlings on which Lysianthus growers in Kenya currently
totally depend.
The project will construct a modern fully-integrated seedling propagation unit (4,000 m2) at
the premises of Stokman Rozen Kenya Ltd in Naivasha. Production will be 400,000 seedlings
per week.
Applicant Bloom B.V. from Amstelveen is a flower marketing company and was established in
2005. The local partner is Stokman Rozen Kenya Ltd (1995) from Naivasha. Partners will not
establish a joint venture company but will sign a joint business agreement.
The project is new for Kenya and will bring in new technology and knowledge. It is an
important step forward in chain management in the flower sector. It will replace costly
imports of seedlings, thus contributing to a more competitive sector, and reduces the
possibility of bringing plant diseases into the country.

Results
• Result 1 : Joint business founded;
• Result 2 : Propagation unit constructed and operational;
• Result 3 : Training / technical support to management;
• Result 4 : Sales and business development.

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CSR aspects
The project will comply with Stokman's CSR policy, Kenya Flower Council standards and MPS.
Production will be such that higher-up in the chain, flower growers can comply with Fair
Trade standards if so required (NB: the scope of Fair Trade certification does not (yet)
include plant material propagators). The project will be NEMA-certified, which includes an
assessment of occupational health and safety and environmental impact.

Impact
Long term economic The project anticipates follow-up investments of
activity EUR 1.5 million during the 2 years directly after completion of
the pilot. This amount is sufficient to double the floor space of
the propagation unit (from 0.5 to 1.0 ha) and to increase
production from 400,000 to 900,000 seedlings per week. The
expected annual turnover in the second year after completion
of the pilot is expected to increase to EUR 2.35 million. Both
Bloom and Stokman Rozen consider the involvement in the
joint propagation venture as an important part of their long-
term business strategy.

Employment and During the project 42 people will be employed, of whom 5 are
working conditions medium / higher staff. This will be respectively 75 and 6,
2 years after the project. In addition the project will employ
10 seasonal staff (15 during the 2 year follow-up). Wages are
higher than the legally minimum wage and workers have
attractive secondary benefits, like: overtime pay, protective
clothing, housing allowance, leave travel allowance, paid
annual leave, free basic medical services, schooling for
workers' children, HIV / AIDS awareness and counselling.

Transfer of knowledge Most training related to the production or propagation process


is new to the country. Specific agronomic knowledge will be
provided by Ball USA / the Netherlands. Modern technologies
and production concepts will be introduced. The project will pay
ample attention to quality control and certification (GlobalGAP /
MPS). The training package foreseen in this project will cover
all this and shall bring new knowledge and skills for employees
across the organization.

Chain effects The project is expected to have a positive impact on the chain
or sector. It will allow the sector to diversify, will make it more
innovative and will reduce costs for growers of Lysianthus and
related varieties. It will also reduce the risk of bringing in plant
diseases through imports. All these benefits will make the
sector more competitive. Other beneficiaries of the project are
local suppliers of substrate, fertilizers, micro-elements /
organisms and pesticides.

Environment The project will comply with the requirements of NEMA and
GlobalGAP / MPS. Both pay much attention to environmentally
friendly production methods. E.g. under GlobalGAP / MPS the
use of pesticides and fertilizers is subject to strict regulations.
Stokman Rozen has a purification system for treatment of

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waste and irrigation water. This system will also be used for
this project.
The local production of seedling will replace weekly imports
thereby reducing air cargo movements.

Position of women As much of the work in a propagation unit will require


accurateness, care and dedication, the majority of employees
(75%) will be women. The project will have non-discriminatory
labour policies for female staff.

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Kenya

PSI09/KE/05 Production and marketing of flower care products


in the Kenyan floriculture industry

Location Nairobi

Sector Industry: light manufacturing

Applicant Global Floral Technology Group B.V., Naarden, The Netherlands

Local partner Lachlan Kenya Ltd, Nairobi, Kenya

Start project 01 July 2009

End project 31 December 2010

Total budget EUR 934,380 (50 percent PSI contribution)

Goal of the project


Production and marketing of flower care products in Kenya, by establishing a modern
certified production facility for solid and liquid products, and advisory services and marketing
at field level.

Summary
Kenya is the largest exporter of cut flowers to the European market. Proper post-harvest
handling and treatment is a requirement to satisfy the demands of auctions, retailers and
consumers. The use of products that retard deterioration and wilting of flowers directly after
harvesting and during transport is essential. Besides, flower bunches and bouquets packed in
Kenya need to be supplied with sachets of flower food that enhances the vase-life for
consumers.
The project will transfer its production and distribution/support activities for large clients in
Kenya, presently served directly from Naarden in Holland, to Nairobi Kenya. The production
facility in Nairobi will be certified and comply with the international Chrysal Code of Practice
for the manufacturing of flower care products (fluids and sachets). At the end of the pilot
project the annual production will be 10,000 to 15,000 litres of liquid pre-treatment products
and 50 to 60 million sachets (5 to 10 grams).
Partners in the new venture are applicant Global Floral Technology Group B.V. (GFTG) based
in Naarden, holding company of the Chrysal Group and the local partner Lachlan Kenya Ltd,
a distributing agent for agricultural inputs for Kenya and East Africa.
Partners will establish a joint venture private company named Flower Care Kenya Ltd.
The project is innovative as there is no certified production facility in Kenya or East Africa,
providing the range of products and advisory services as proposed in this project. The sector
relies heavily on imports. The project involves much technology transfer and training. It will
also contribute to a more competitive floriculture sector, due to cost-reduction in the supply
of flower care products, and improved post-harvest management in the flower chain.

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Results
• Result 1 : Project inception, joint venture;
• Result 2 : Production for liquid, solid flower care products set up;
• Result 3 : Warehouse, distribution, sales system in place;
• Result 4 : Marketing and advisory services developed;
• Result 5 : Business development / project completion.

CSR aspects
Both partners have integrated CSR policies and so will the joint venture. The project will be
in compliance with the Ethical Trade Initiative Base Code (ETI). In addition, special emphasis
will be on environmental care at the production site and on environmentally sound
production methods amongst its clients.

Impact
Long term economic The project anticipates follow-up investments of EUR 750,000
activity during the 2 years after completion of the pilot. This will
concern the expansion of the liquid production line (with
conditioning products and additional pre-treatment solutions),
expansion of the warehouse and establishment of a small
laboratory and vase-life testing room. The expected annual
turnover in the second year after completion of the pilot is
EUR 1.35 million.

Employment and During the project 24 people will be employed, of whom 8 are
working conditions medium / higher staff. This will be respectively 36 and 17,
2 years after the pilot. Benefits for employees are: attractive
and safe working conditions, above average salaries, overtime
payments, lunch and basic medical insurance. Measures to
safeguard sound occupational health and safety standards
consist of protective clothing, industrial vacuum cleaners,
exhaust hoods, climate control and ventilation, and special
precautions for the storage and handling of hazardous
chemicals. The project will comply with the ETI Base Code.

Transfer of knowledge All training related to production, warehousing and advisory


services is new to the country. Modern technologies and
concepts will be introduced across the organisation. The
Chrysal Code of Practice and the ERP software will guarantee
continuous quality control of production and sales. The
extensive training package foreseen in this project contributes
to new knowledge and skills for employees across the
organization.

Chain effects At sector level, this project will contribute to an internationally


competitive floriculture sector in Kenya. Besides the project will
source products and services from local companies, such as
part of the raw materials (chemicals), packing material, cliches.
Work will be outsourced to service providers in ICT,
maintenance and repair, legal and administrative services.

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Environment The production facility will have environmental protection
measures equivalent to those at the production facility in
Baarn. The products themselves are subjected to strict
pesticide and biocidal regulatory rules, including labelling and
user-instructions, guaranteeing safety for the user and the
environment. Production of flower care products and advisory
services near the market will lead to reduction of wastage of
cut flowers up to 10% from grower to vase.

Position of women Flower Care Kenya will be an equal opportunity employer.


Female employment is expected to be circa 25% of total staff
with opportunities especially in the administration and
extension sections.

Other impact The project will set up a social development fund. Yearly a local
development project will be supported through this fund. The
identification and selection of the project will be a joint decision
of the management and the workers.

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Kenya

PSI09/KE/06 Rejuv Kenya

Location Mombasa

Sector Medical (phytotherapy)

Applicant Hakhold B.V., Werkendam, The Netherlands

Local partner Amcod Ltd, Mombasa, Kenya

Third partner QuaTerNes B.V., Almkerk, The Netherlands

Start project 01 July 2009

End project 30 December 2011

Total budget EUR 950,000 (50 percent PSI contribution)

Goal of the project


Establishment of a certified value chain for herbal therapeutical products, particularly Rejuv,
with an annual output of 10,000 kg per year.

Summary
On a global scale there is a growing market for nutroceutical and / or phyto pharmaceutical
products. These can be defined as herbal products with therapeutical properties. The aim of
this project is to capitalize on this and to create a profitable production, processing and
marketing line with full chain control for herbal products, to be used as ingredients for Rejuv.
Rejuv is a trade name and is patented by Amcod Ltd (Mombasa) in Israel where it is used in
medical clinics. Rejuv's main ingredient is derived from a specific type of Neem tree (leaves,
bark), which grows in coastal Kenya and Tanzania. The products from this Neem variety are
known (evidenced by empirical data and research) for balancing glucose levels in diabetes
Type 2 patients. The ingredients produced by the project will be marketed to licensed
medical professionals and intermediaries, who are qualified and legally permitted to prepare
and prescribe Rejuv.
The project will be located in the Mombasa's coastal area of Kenya. It will establish a nursery
and outgrowers cum collectors scheme, demo-plantings, collection / pre-drying centres, a
processing facility and a distribution and marketing organisation. The chain shall be HACCP-
certified.
Applicant is Hakhold B.V. (1991) from Werkendam and local partner is Amcod Ltd from
Mombasa. Partners will establish a joint venture company with equal distribution of shares.
Third partner is QuaTerNes B.V. from Almkerk.
The project is innovative as there is no integrated and controlled (certified) chain approach in
Kenya for therapeutic herbal ingredients.

Results
• Result 1 : Establishment of joint venture;
• Result 2 : Establishing procurement facilities / organization;
• Result 3 : Establishing the processing facility;
• Result 4 : Business established.

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CSR aspects
Partners' policy regarding marketing and sales is to sell the herbal ingredients only to
licensed and duly registered medical practitioners and intermediaries (medical doctors,
pharmacists, manufacturing laboratories, supervised clinics). An integrated CSR-plan will be
developed by the project. This will include sound environmental and occupational health and
safety standards. As the project will comply with GMP / HACCP, these will be at international
standards.

Impact
Long term economic The project anticipates follow-up investments of
activity EUR 1.0 million during the 2 years directly after completion of
the pilot. This will be invested in extra collection and pre-drying
points and in another production line for processing, including a
pilot for spray-drying.

Employment and During the project 69 fulltime jobs will be created and 156
working conditions seasonal workers will be employed. Seventeen fulltime staff
can be considered as medium / higher staff. Two years after
the pilot the number of fulltime staff will be almost 100 (27
medium / high) with 228 seasonal labourers. Wages will be
slightly higher than local standards and special care will be
taken for (health) insurances, education and other fringe
benefits. During the pilot indirect employment will be created
through contract farming (200 contract farmers) which number
will be doubled 2 years later.

Transfer of knowledge Most of the technologies, concepts and related training are new
to the country or the sector. Training will be across the
organisation, and knowledge transfer also involves several high
level jobs in areas such as agro-forestry, food technology and
engineering, physical and chemical analysis, quality control
systems and procedures, as well as finance, administration,
and marketing.

Chain effects Chain effects will be up (outgrowers) and down (buyers of the
herbal ingredients) the chain. Benefits will also accrue to the
suppliers of services and products for packaging materials,
technical components, utilities, financial and administrative
services.

Environment The project will have a positive impact on the environment by


introducing sound agro-forestry production practices and
reduction of deforestation, through providing alternative use
and value to the Neem tree.

Position of women The impact on the position of women is positive as employment


in the project shall create substantial number of jobs for
women in Kenya. The project will offer equal opportunities for
men and women. The majority of contracted outgrowers /
collectors will be women.

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Other impact The project has the potential to have profound impact on the
reputation of the herbal sector in Kenya, and on the national
regulatory framework for herbal products and medicines. This
includes mainstreaming of the sector (or parts of it) into the
more formal institutional framework for health care and health
products and services in Kenya.

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Kenya

PSI09/KE/24 Kipini Swahili Eco-lodge

Location Kipini Conservancy


Sector Tourism
Applicant Princeps Management Consultants B.V., Hoenderloo,
The Netherlands
Local partner Nairobi Ranching Company Ltd, Kipini, Kenya
Start project 01 January 2010
End project 30 June 2012
Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


The preservation, maintenance, and development of the Kipini conservancy by implementing
a concept in which conservancy, tourism, and community involvement are integrated. At the
end of the project a turnover of EUR 1,5 million will be realised and 1,500 guests will be
received.

Summary
The Kipini conservancy is located in the northeast of Kenya, and consists of an area of
220 km2. The conservancy links the coastline to the hinterland and is part of a connected
migration corridor for elephants and other species.
The size, geographical location and biodiversity of conservancy are unique and recognised as
ecologically and biologically outstanding by the WWF.
The project partners have developed a concept in which conservancy, tourism, and
community involvement are integrated and interconnected. This concept is already
successfully introduced with a PSOM grant in Ethiopia.

The joint venture will develop and exploit lodges and tourist activities, and thereby generate
income for conservancy and local communities. A separate entity, The Kipini Wildlife and
Botanical Conservancy (KWBC), will be responsible for maintaining and developing the
conservancy. The consortium will contribute a minimum of 25% of his profit, an average of
EUR 150,000 per year, to the KWBC. The local communities will be an essential part of the
tourist activities. Touristic potential in the communities (Orma tribe, Kipini women's group,
Fishery Association Kipini) will be developed, together with the consortium, what will lead to
steady income for the locals. They will also ad to the maintenance of the conservancy by the
sustainable use of it. A joint venture will be established between Princeps Management
Consultants and Nairobi Ranching Company with share division and division of own
contribution of 50%.
The project frame is 30 months, the project budget EUR 1,500,000.

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Results
• Result 1 : Set-up of joint venture;
• Result 2 : Project development and architectural drawings, constructional drawings,
contracting and hardware selection;
• Result 3 : Eco-lodge site built and fully equipped;
• Result 4 : Pilot operation and training of employees;
• Result 5 : Completion of the project.

CSR aspects
The whole business concept is set up around environmental sustainability, ecological
conservancy, ecotourism, inclusion of the local community and capacity building of the local
community.
The joint venture will follow the internationally recognized ETI Base Code regarding the basic
working conditions. In addition they will provide free lunches, payment of medical care
insurance, education and professional training, access to HIV / AIDS prevention, family
planning programmes, housing and transport to and from the lodge. Furthermore, the
ecolodge will be certified by the Eco Tourism Society of Kenya, which guarantees a
sustainable approach with regard to energy (solar/wind), waste disposal and the design and
construction of the lodge. An Environmental Impact Assessment (EIA) will be executed at the
beginning of the project.

Impact
Long term economic After the project, the joint venture will invest in expansion of
activity the capacity of the lodge. The joint venture will invest in
another 15 units and 3 tented camps. Besides 2 additional and
cruisers will be needed. Total investment costs for these
investments mount up to EUR 810,000.

Employment and Thirty-six full time jobs will be created. In addition employment
working conditions will be created in the local communities. They estimate that
150 indirect jobs will be created in the local communities at the
end op the project. The joint venture will follow the
internationally recognized ETI Base Code. Following working
conditions will be provided by the joint venture:
• Good salaries;
• Company lunches;
• Medical care insurance / reimbursement of medical costs of
employees;
• The opportunity of education and professional training;
• Access to a HIV / AIDS prevention and family planning
programme;
• Transport to and from the lodge;
• Housing.

Transfer of knowledge This project introduces a new business concept to Kenya, in


which conservancy, tourism, and community involvement are
integrated and interconnected. All stakeholders, including
guests, will be taught about the concept, on their own level:
• Employees will receive training in the principles of the
concept;
• The inhabitants of the involved communities will be trained
in the development of sustainable economic activities and

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the sustainable use of the conservancy;
• Guests of the lodge (the tourists) will be offered the
opportunity to learn about the concept, the unique
characteristics of Kipini and the local community culture and
traditions.

Chain effects Parties that benefit directly from the project on long term are:
• Employees, by having the opportunity for a secured long
term job;
• Local communities around the conservancy, by having
opportunities to generate income from tourist activities;
• KWBC, by receiving a steady flow of income for the
maintenance and development of the conservancy;
• Tour operators, by being able to offer new activities /
locations;
• Tourist accommodations in the region, by spin off effect and
enhancement of the attractiveness of the area.

Environment The central aim of the project is the preservation of the natural
environment of the Kipini conservancy. The lodge will be
designed by a professional eco-architect to fit as harmoniously
as possible into its natural environment. In the design, as many
natural materials as possible will be used. State-of-the-art
sustainable solutions will be used regarding energy (solar
energy, wind energy), water (use of rain-water for flushing
toilets, waste water treatment by means of helophyte filters),
and waste disposal (a waste treatment and separation system
will be considered).

Position of women At least 50% of the workforce will be female. They will be
trained and educated. Furthermore, the Community Cultural
Tourist Clusters (CCTC) will be managed by local women's
groups. Since women will be managing the clusters, mainly
women will be trained, in the field of management and creating
sustainable income generating economic activities.

Other impact Enhancing the touristic attractiveness of the broader region.


Enabling continued conservancy of the site.

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Madagascar

PSI09/MG/01 Madagascar Welding Technology Center

Location Antananarivo and Toamasina

Sector Construction / Infrastructure

Applicant Hilarius Haarlem Holland B.V., Haarlem, The Netherlands

Local partner Sipromad Commerce & Distribution SA, Antananarivo,


Madagascar

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,118,800 (50 percent PSI contribution)

Goal of the project


Establishment of Madagascar's first welding technology centre that provides welding
secondment, welding trainings and technical support.

Summary
In Madagascar there is a lack of qualified welders as well as adequate welding knowledge
and skills. Therefore large welding contracts for oil exploitation, construction, mining and
shipbuilding are granted to foreign companies, leaving local SMEs behind. High costs are paid
to fly in expensive expats. Local manufacturing industries loose their competitiveness, the
infrastructure remains weak and maintenance and repair solutions are unused. The Dutch
applicant Hilarius Haarlem Holland B.V. and its Malagasy local partner Sipromad Commerce &
Distribution SA act upon this opportunity and will establish the first Madagascar Welding
Technology Center with a branch in Antananarivo and Toamasina. In this joint venture,
technical assistance, training and secondment services to local SMEs and large companies
will be offered. The centre aims to employ 30 employees within the joint venture and 100 on
secondment. These 100 professionals will participate in a support and coaching programme
with the aim that in the end welding vacancies will be filled in by local people and welding
contracts by local firms.
Overall the centre will train 345 people during the first 2 years amongst whom own
employees, employees of the local partner, welders of other companies and the 100 welding
professionals.

Results
• Result 1 : Legal and administrative structure established;
• Result 2 : Welding technology centre (2 locations) operational;
• Result 3 : Own staff recruited and trained, external self employed welders contracted
and trained, staff of local partner trained;
• Result 4 : Pilot with the centre in operational setting: providing training, assistance and
other services. Evaluation and reporting.

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CSR aspects
The joint venture wishes to play a role model in Madagascar. The partners will develop a CSR
policy, including health and safety, prevention of child labour, chain responsibility,
environmental management, employment standards, gender policy, non-discrimination
policy, anti-corruption policy and employee participation. The CSR principles will be promoted
among employees, suppliers and clients. The project will obtain an international certificate.
Moreover, 15 welders will be trained for an international welding certificate.

Impact
Long term economic In the spin-off period the partners will invest in more locations,
activity more advanced techniques and more services which requires a
follow-up investment of EUR 455,000.

Employment and At the end of the project 17 low level people will be employed,
working conditions 13 medium-high level employees and 100 employees will be on
secondment. Two years after the project 32 low level people
will be employed, 26 medium-high level and 150 employees
will be on secondment. The project partners will provide good
safety and working conditions, similar to the working standards
in the Netherlands. Also secondary benefits are offered as
assistance in getting adequate housing, health insurance,
education for employees and their families, etc.

Transfer of knowledge All knowledge transfer is new to the country. Currently welding
knowledge is practically non existent in Madagascar.

Chain effects The project will have a significant positive long term impact on
the chain. It provides the welding chain with accurate
knowledge. Entities within the chain who profit, are among
others, local contractors, local SMEs, unemployed technicians,
industrial markets.

Environment Due to the implementation of the latest clean technologies, the


welding processes in Madagascar will become much cleaner.
The project indirectly leads to waste reduction. Companies will
improve repair and maintenance and extend the life span of
products. The project introduces the best standards in
environmental care. Employees and subcontractors have to
commit themselves to the company's environmental principles.
Part of the project plan is to assess whether environmental
certification in this field in possible.

Position of women One of the proposed managers of the training department is


female. Nevertheless, the welding industry is dominated by
men. The project will promote female employment and try to
have a workforce with 30% females.

Other impact The project stimulates the development of the welding sector
which is currently ruled by foreign companies. In this sense
Madagascar will become less dependent on expensive imports
of welding services. Moreover the project might indirectly lead
to improved infrastructure (energy, roads, rails, telecom, and
drinking water).

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Malawi

PSI09/MW/22 Establishment of a Diagnostic Centre in Malawi

Location Lilongwe

Sector Health care

Applicant DRC Medical B.V., Beesd, The Netherlands

Local partner Medical Consultants Africa, Lilongwe, Malawi

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,499,580 (50 percent PSI contribution)

Goal of the project


The project partners will establish an (outpatients) imaging and diagnostic centre where a
variety of services, including CT scanning, MRI scanning, X rays, Ultrasound, Mammography
and Laboratory referrals, will be offered to the population of Malawi.

Summary
Currently the medical services available in Malawi are of a very poor quality. The project
partners would like to establish a modern outpatient imaging and diagnostic centre to
improve the overall standards of the medical diagnostics services in Malawi. At the same
time this project fills a gap in the local health care sector. Currently there are no modern
imaging and diagnostic services available, forcing patients to go abroad in order to get a
medical diagnosis.
The Applicant in this project is the Dutch registered company DRC Medical B.V.. The local
partner is the Malawi registered company Medical Consultants Africa (MCA).
The diagnostic centre will be established in Lilongwe, the capital of Malawi.
The investment partners will establish a joint venture.

Results
• Result 1 : Organisational structure established;
• Result 2 : Equipment installed;
• Result 3 : Recruitment and training of employees;
• Result 4 : Commercial exploitation.

CSR aspects
The imaging and diagnostic centre will adhere to international quality standards. The clinic
will be certified according to the rules and regulations of the 'Clinical Governance' certificate.
This certificate intends to embody 3 key attributes: recognisably high standards of care,
transparent responsibility and accountability for those standards, and a constant dynamic of
improvement.

Furthermore, the centre will develop a pro policy. The clinic will also treat the low income
Malawian households for a strongly reduced tariff. The centre will seek cooperation with
NGOs or other organisations for the referral of these patients.

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Impact
Long term economic The project partners will extend the variety of services of the
activity centre in the near future and in due time hope to transfer it
into a small private hospital.

Employment and At the end of the project the joint venture will employ
working conditions 37 people. The clinic will employ at least 3 radiologists, 5 lab
technicians, 6 radiographers, a microbiologist, a biochemist a
haematologist and management and support staff. Two years
after project completion the joint venture hopes to employ
67 people in total.
The salaries the centre will offer are high in comparison to the
public sector. A hygiene and safety protocol will be
implemented.

Transfer of knowledge There is no or little experience with imaging and diagnostics


equipment in the country, such as for example MRI and the CT
scans. Further, working with hygiene and safety rules, a high
service level and strict quality control, can be considered as a
big knowledge improvement for the medical sector in Malawi.

Chain effects This project can introduce a higher quality of health care within
Malawi and can be considered as the first step in improving the
health care facilities in the country. This project can also
contribute to a higher level of training of the local specialists
and might prevent local doctors to look for job opportunities
abroad.
Further, patients who had to travel (if possible) abroad for a
diagnosis can now be diagnosed locally. Following the diagnosis
the doctors can decide if further treatment (outside the clinic)
is necessary.

Environment The joint venture will set up a proper medical waste


management system. Due to the fact that the medical centre is
not involved in surgery and other patient treatment and that all
scans are digitalised, the amount of medical waste is relatively
low. The government does have a medical waste disposal
scheme. The clinic will use these facilities to dispose of the
waste.

Position of women It is expected that at least 60% of the employees will be


female.

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Morocco

PSI09/MA/02 Integrated and organic production of young plants


in Northern Morocco

Location Kenitra

Sector Horticulture: vegetables and fruits

Applicant Grow Holding B.V., Naaldwijk, The Netherlands

Local partner Sincofel Sarl, Agadir, Morocco

Start project 01 July 2009

End project 31 December 2011

Total budget EUR 1,436,364 (50 percent PSI contribution)

Goal of the project


To set up a nursery of 3.2 ha for the production of integrated and organic young plants for
farmers in Morocco and eventually Spain.

Summary
The applicant Grow Holding and its local partner Sincofel will set up a joint venture in Kenitra
to establish the first integrated and organic nursery (3.2 ha of greenhouses) for young
(grafted) plants for sales in Morocco. In order to be able to export important food crops
(especially melon and tomato) local growers need high quality plants to meet international
standards. Increased market demands and restrictions (production without methyl bromide)
in the use of chemicals for crop protection are threatening exports. High quality young plants
are needed to use less pesticides. A demonstration greenhouse will be used to showcase
farmers how to grow food crops most efficiently and organically. After the pilot project the
project partners intent to expand to 6 to 8 ha, offering jobs to 200 to 300 employees.

Results
• Result 1 : Start up of joint venture;
• Result 2 : Section 1 and 2 of production site and demonstration site completed;
• Result 3 : Start up integrated production and demonstration, section 3 production site
completed;
• Result 4 : Start up organic production, section 4 production site completed;
• Result 5 : Business development.

CSR aspects
The joint venture aims to get a GlobalGAP certification for integrated / organic nurseries.
Since this is not yet possible in Morocco they will be actively involved in setting this up with
the relevant institutions. The project strives to acquire a quality and organic certification
within the PSI time line. Also the first steps will be taken for ISO 9001:2000.

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Impact
Long term economic After the pilot project the joint venture partners will expand to
activity an integrated and organic nursery of 6 to 8 ha, to offer a wider
range of products. This will be a EUR 1.0 million investment.
The turnover will increase with 25% to EUR 5,625,000.
Furthermore the partners want to invest in R&D in collaboration
with Moroccan universities.

Employment and At the end of the pilot project 19 high / medium level
working conditions employees and 54 low level employees will be contracted. Also
50 seasonal workers will be employed. Two years after the end
of the pilot 7 extra high / medium and 28 low level employees
will be contracted. Moreover, more than 200 extra seasonal
workers will be employed. The wages will be 10 to 20% above
the average minimum monthly wages of Dirham 50 per day.
Also health insurance and tax payments will be arranged for
every employee. Good working conditions and safety
procedures will be implemented according to international
standards. Other working conditions staff will benefit from are
medical care, housing, meals, sanitary, work clothes, education
and the possibility of child care.

Transfer of knowledge The specific cultivation techniques for integrated and organic
young plant production are new for the country. Also organic
and / or integrated crop production for farmers will be new.

Chain effects The project will have a positive effect on the performance of
farmers, for they will be able to produce more efficiently.
Furthermore, their export possibilities will be preserved by
producing according to organic and / or integrated standards.

Environment The reduction in use of pesticides and the reduction of


production losses, and subsequently waste and resources used
per plant, will have a positive effect on the environment.

Position of women The joint venture will recruit female staff members as much as
possible (up to 60%), including for the higher positions.

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Morocco

PSI09/MA/21 Tissue Culture Morocco

Location Agadir

Sector Agriculture

Applicant Grow Holding B.V., Naaldwijk, The Netherlands

Local partner Sincofel S.A.R.L., Agadir, Morocco

Start project 01 November 2009

End project 31 October 2012

Total budget EUR 1,076,502 (50 percent PSI contribution)

Goal of the project


To establish the first tissue culture young plant laboratory in Morocco to supply local growers
with, eventually 2 million high quality young plants per year, from a broad assortment
offering an alternative for expensive and unreliable import of young plants and seeds and to
develop export of these plants.

Summary
To secure their future market position Moroccan fruit and vegetable growers need to meet
increasing market demands and restrictions in the use of chemicals for crop protection. In
both challenges young plant material is critical for success. A production start with healthy
top quality young plants is crucial to be able to use less pesticides and achieve optimal
production yields. With methyl bromide for soil disinfection officially to be banned in 2015
(unofficially earlier because of demands from export food markets), there is need for uniform
disease-free top quality young plants.
Growers currently depend on seeds and / or imported young plants, being expensive and
unreliable because of difficulties in quality control in the supply chain. The Grow Group B.V.
of the Netherlands, a leading company growing and marketing young plants for vegetable
farmers all over the world and Sincofel Sarl, of Morocco, part of the Azura Group joined
forces in a joint venture to provide Moroccan growers with healthy and high yielding young
plants. The joint venture creates a pilot laboratory for tissue culture multiplication of young
plants and markets them (in cooperation with nurseries for hardening) also delivering
horticultural advice to clients. First products to be supplied are artichoke, strawberry, tomato
and citrus young plants. With the pilot capacity ready in 3 years, the project partners expect
to be optimally equipped, having protocols implemented to successfully market the above
mentioned species by a well trained staff of 25 employees.

Results
• Result 1 : Set-up joint venture;
• Result 2 : Lab building and management recruiting;
• Result 3 : Employees recruited, building up of stock, start multiplication;
• Result 4 : Start up production and sales, further recruitment and training.

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CSR aspects
Concerning labour standards and personnel policy project partners in the joint venture aims
to contract mostly women (75% in total and especially in management positions) and are
going to offer salaries at least 10-20% above minimum wages.
All employees are going to be trained and social facilities such as housing, meals and medical
care and insurance will be taken care off for employees.
It is also planned to offer medical care to employees and educate them in hygiene by
periodically stationing a nurse at the site and to organise consulting-hours every 2 to 4
weeks by a qualified doctor visiting the site.
With respect to environment and food safety the social responsibility is evident as seen from
the projects contribution to the realisation of sustainable food production in Morocco.

At the moment however GlobalGAP certification for tissue culture laboratory in Morocco is not
possible. With respect to nursery activities project partners are actively involved in the
development of a certification scheme according to GlobalGAP standards for young plant
supply in Morocco (IP (Integrated Pest Management) Moroc initiative).
It is the purpose of the joint venture to certify for a relevant certification scheme as soon as
this is going to be available. However this scheme is not expected to be realised before the
end of the pilot project.

Impact
Long term economic Partners have already been cooperating a long time together
activity on the vegetable production business. They plan to continue
this relationship and reinforce it with this joint venture on
tissue culture.
As seen from the expected market developments, the capacity
of the lab will be sufficient only until the end of the project. The
bottleneck in the development of the lab are the number of
bench places for production. In the pilot for production
10 benches are foreseen. Within the 5 years following the pilot
conclusion an expansion to 40 production bench places in total
is planned. The number of bench places is going to increase
gradually. Shelf and lab space created in the pilot are built to
suffice up to 40 bench places, this because of the efficiency in
constructing buildings and climatologic installations on a larger
scale at once. This will lead to spin off investments of
EUR 400,000 in the second year after project completion and
EUR 1.0 million after 5 years. Annual turnover 2 years after the
project completion will be EUR 1,528,000, which is nearly
tripling the turnover at project completion.

Employment and During the project direct employment is going to be created


working conditions for:
• 1 general manager lab (high level);
• 1 assistant manager lab including administration (medium
level);
• 2 supervisors, medium preparation, production (medium
level);
• 2 quality controllers (medium level);
• 1 dispatch;
• 10 production workers benchroom (low level);
• 1 sales representative (medium level);

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• 1 cleaning worker;
• 1 greenhouse manager (medium level);
• 5 greenhouse workers including maintenance.

In total 25 full time employees are going to be contracted


(8 high / medium level and 17 low level). Two years after
completion of the project it is to be expected that the next
phase of investment after the pilot is going to create work for
another 20 full-time employees (4 high / medium and 16 low
level).
Concerning labour standards and personnel policy project
partners in the joint venture aims to contract mostly women
(75% in total and especially in management positions) and are
going to offer salaries at least 10-20% above minimum wages.
All employees are going to be trained and social facilities such
as housing, meals and medical care and insurance will be taken
care of for employees. There is also a plan to offer medical care
to employees and educate them in hygiene by periodically
stationing a nurse at the site and by organising consultation
hours every 2 to 4 weeks by a qualified doctor visiting the site.

Transfer of knowledge During the project all staff members are going to be trained to
prepare them for their role in the management of the joint
venture. They are also going to be taught to give training
themselves to local staff. Local staff with all production
employees will be thoroughly trained in relevant specific tissue
culture multiplication techniques that are new to the country.
Respectively the knowledge on the specific marketing aspects
and horticultural advice in tissue culture young plant material is
also new and is going to be transferred and trained to the sales
representative.
In general the level of education and horticultural knowledge in
Morocco is relatively high. This can be an advantage in the
recruitment of staff members and production workers.

The training courses therefore can be very practical and on the


job with a focus on:
• Professional tissue culture young plant production;
• Cutting techniques for multiplication and rooting;
• Hardening off techniques for tissue culture plants.
These topics are all still being (for the most part) new for the
country and so all employees concerned acquire new skills that
enhance their knowledge and therewith position on the labour
market.

Chain effects Forward chain effects:


The performance of all companies in the supply chains
concerned strongly depends on the quality of young plant
material at the start of the chain.
The establishment of a tissue culture lab for young plants
contributes to a large extent to the development of these
chains by:

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1. Improving the market position of farmers by making them
less dependent of expensive seed or import young plant
material;
2. Increasing production yields of farmers by reduction of
production losses through offering a uniform quality,
improved planning an control and low disease risk;
3. Improving the market position of farmers by reduction of
use of chemicals, pesticides etc;
4. A positive impact on all companies in trade and export of
fruit and vegetables.

Backward chain effects:


In general the successful realisation of the project and
therewith further development of food production in Morocco
will have a positive influence on the perspective for all local
suppliers in agriculture. It is clear that for the future
perspectives of these local suppliers the development of the
local agricultural production is of mayor importance.

Environment The positive environmental effects concern the reduction of the


use of pesticides and the reduction of production losses and
subsequently waste and resources used per plant produced as
young plants have a basic health situation.

Position of women Because of the positive earlier experiences in Morocco with


female staff, the strategy of the joint venture is to recruit
female staff members as much as possible. The impact on the
position of women is therefore going to be very positive.
The joint venture creates jobs that require higher education
and specific knowledge and expertise for mostly women. This
gives them a chance on income and education in a social
setting where women are forming the greater part of staff. The
total workforce will consist of 25 employees of which more than
75% women.

Other impact Project partners in Morocco have undertaken several initiatives


(for example sponsoring an ambulance for local healthcare in
Agadir) to contribute to social improvement. The joint venture
TGM will also have a positive social impact with possible future
initiatives to be explored for the tissue culture lab settling down
in its region.

Page 113 of 290


Morocco

PSI09/MA/22 Environmentally friendly Zelliges from Morocco

Location Khemisset

Sector Building / Infrastructure

Applicant De Tegel B.V., Breda, The Netherlands

Local partner Aquafocus Sarl, Casablanca, Morocco

Third partner Cakewalk B.V., Bergen, The Netherlands

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


Setting up an environmental friendly and decent production facility for 32.500 m2 Zelliges per
year for the export to the European market.

Summary
The Dutch Applicant De Tegel B.V. and the Moroccan partner Aquafocus Sarl will set up a
joint venture for the responsible production of Zelliges (Moroccan tiles) in Khemisset.
Traditional production of Zelliges is very hazardous for the environment and people.
Moreover, child labour is used. In Fez all ovens were closed or destroyed by the army to
reduce pollution from traditional ovens. This led to a decrease of Zelliges, while the
international demand is still rising. This project will set an example of 'ecological' production
and will transform the hazardous and polluting industry into a decent and clean industry.
Environmentally-friendly gas-fuelled kilns to bake the Zelliges will be used and also non-toxic
glazes will be introduced. Special attention will be given to CSR and the working conditions of
the employees, which are currently far below any (international) standard. Moreover, the
project will only work with adults. Current profit margins of traditional production are small
because, there is 50% waste, due to production errors of traditional production methods.
By using new production methods, the partners will reduce waste and produce more
efficiently. Furthermore, from 2010 onwards it will be prohibited to import product containing
toxic elements into the EU. Therefore, the new production method is essential for the import
of Zelliges to the Netherlands.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Procurement and installation of equipment;
• Result 3 : Recruitment and training of employees;
• Result 4 : Test production and operational phase.

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CSR aspects
The partners will put forward large efforts to implement CSR policy, not only because of the
social impact, but also because this will lead to committed employees. The same working
standards as in The Netherlands will be preserved. Employees will have a voice in the
organisation. Suppliers, which are not complying with CSR standards, will not be worked
with. Further, working conditions are described at 'employment and working conditions'.
ISO 8000 will be the certificate that will be applied for. In the project period this can not be
achieved because of the procedure. In the final result a report of the first audit for ISO 8000
will be asked together with a contract between the joint venture and a service provider for
the certification procedure. All the above mentioned certificates and standards will be put in
the results.

Impact
Long term economic The partners know each other and do business together for
activity years so chances are that they will continue to do so. Two
years after the start of the project EUR 1,600,000 follow-up
investment will be done. This will include among others,
4 additional gas fuelled kilns of 8 m3, pulverisers, mixers,
glazing equipment, cutting machines, trucks and a pick-up.
Also the factory building will be extended. Sales will be set up
for purified clay and biscuits to sell to other Zellige producers.
The expected turnover will grow to EUR 3,705,000.

Employment and At the end 55 employees will be working for the joint venture
working conditions of which 3 high, 14 medium and 38 lower levels. After the spin-
off 120 people will be employed of which 5 high, 28 medium
and 84 lower levels. The salaries within the joint venture will at
least be 120% of the minimum wages and on average 178%.
Each employee will have 24 paid holidays and 13 national
holidays. After a year employees will receive an indefinite
contract. Free lunches and drinks will be provided. A canteen
with a separate part for women with babies will be installed.
Also a crèche for children will be taken care of. Free health care
insurance will be offered to the employees and their children.
Separate showers for men and women will be installed and
working clothes, shoes, safety and protective equipment
supplied. All employees will receive safety training and the
safety regulations will be applied vigorously. Education of
children from employees will be positively influenced.

Transfer of knowledge Environmental friendly production, safety regulations and CSR


are very new in the Zelliges industry and Morocco. All
employees will be trained on these subjects and on how to
respect the environment in general and waste management.
The largest part of the equipment will also be new to Morocco.

Chain effects If the project partners manage to make the project visible to
other producers, it can set an example in terms of CSR and
environmental Zelliges production.

Environment Compared to traditional production of Zelliges, the project will


produce much less toxic waste. The footprint of the production

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will be much less on the environment already largely by the
fact that under 5% of the Zelliges turns out to be discarded
instead of the 50% with the traditional production methods.

Position of women Nearly 50% of the positions will be filled by women. Also in the
high level positions. The local partner confirms that women are
much more cautious to handle expensive products as Zelliges.
They are more reliable also (according to both partners).

Other impact The project will set a CSR example in the region. Zelliges
production is part of Moroccan cultural heritage that should be
preserved. The factory is planned to be built right in the middle
of a slum area. The poorest people of Khemisset live in this
area. The local partner is employing people from this
neighbourhood which results in a large impact on family life.
For all non-specialised workers the joint venture will recruit its
personnel also here. This gives the company more safety
because of the well being it creates in the neighbourhood.

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Morocco

PSI09/MA/23 The establishment of an EcoCert certified bio


organic compost plant to boost organic agriculture
in Morocco

Location Had Soualem

Sector Bio agriculture

Applicant C & A van Vilsteren, Marknesse, The Netherlands

Local partner Casa Fresh S.A.R.L., Casablanca, Morocco

Start project 01 January 2010

End project 30 June 2010

Total budget EUR 575,035 (50 percent PSI contribution)

Goal of the project


The goal of the project is to establish an EcoCert certified bio organic compost plant with a
capacity of 30,000 tons, to boost organic agriculture in Morocco, avoiding the actually
existing 'soil mining' in some regions.

Summary
The project consists in the implementation of a plant to produce EcoCert certified compost
that will be sold to organic farmers in Morocco in the Casablanca region. Organic farming is
rapidly increasing in Morocco but no certified organic compost for organic farming is available
in the country yet. Organic farmers are obliged to use manure or to make their own compost
to fertilise their organic crops, or, use up the existing soil fertility without manuring at all and
thus 'mining' the soil. When the soil is completely 'empty', another plot is put into organic
production.
Certified organic compost is a far richer fertiliser than manure or home made compost,
resulting in higher harvests for organic farmers. The use of 'rough' manure for organic
agriculture is forbidden for organic vegetables and potatoes sold in Britain. The only fertiliser
allowed for organic products for sale in Britain is certified organic compost. This project will
boost the organic agriculture in Morocco, especially export to the UK. The project is perfectly
in line with the Moroccan Government's strategy to improve the agricultural sector in
Morocco as expressed in Maroc Vert, the Government's strategic document to develop and
improve the agricultural sector. The project will produce 30,000 tons of EcoCert certified
organic compost per year and will employ 34 employees.
The partners, Van Vilsteren and Casa Fresh are involved in trading the vegetables produced
by the organic farmers and have both an interest in a healthy continuation and expansion of
this farming system.

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Results
• Result 1 : Establishment of the joint venture, legal documents;
• Result 2 : Site preparation and installation of equipment;
• Result 3 : Recruitment of personnel and training in Egypt;
• Result 4 : Recruitment of personnel and training in Morocco;
• Result 5 : Operational phase and EcoCert certification.

CSR aspects
Casa Fresh is Ethical Trading Initiative (ETI) certified.
Ethical Trading Initiative is described as a partnership between companies, NGO and trade
unions which aim to work together in order to define and promote some practices that are
socially involved in the setting of conduct codes that lead to good working conditions. ETI is
also responsible for the control and for the independent verification on the application of the
codes of conduct by the suppliers.

The members devote themselves to the business ethical questions and responsibility for the
companies and also for the promotion of the workers' rights and human rights in general. In
the field of employment, the ethics of the businesses include the efforts made to put an end
to child labour, forced labour, and also the analysis of health and safety issues to improve
working conditions. The ETI criteria will also be applied to this project.

Impact
Long term economic After the pilot phase has been implemented successfully, the
activity production capacity will be increased from 30,000 tons to at
least 60,000 tons. At the same time an additional production
facility will be set up near Souss Massa, Gharb or Lokkous,
depending on the availability of raw materials.
Total additional investments will be EUR 750,000 (EUR 300,000
for expansion of the pilot plant and EUR 450,000 for the second
plant).
Additional turnover will be EUR 2,470,000.

Employment and At the end of the pilot project 34 employees will be employed
working conditions full time at the production site; of which 5 high skill level,
4 medium skill level and 25 lower skill level employees.
Two years after the pilot project the joint venture will employ
34 full time extra employees, 5 high level, 4 medium level and
25 lower level employees at the new plant and an additional
15 low level and 3 medium level employees at the existing
plant. This is a total of 52 additional jobs.
ETI criteria will be applied to this project, assuring good
working conditions for the employees.
On average the project will pay the employees 252% of
minimum wages.
It should be noted that in general wages far less than minimum
wages paid within the agricultural sector. By paying salaries
even above minimum wages, this project will truly set an
example of CSR.
A free health care insurance will be offered to the employees
and their children. Separate showers for men and women will
be installed and working clothes, shoes, safety and protective
equipment supplied.

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Transfer of knowledge The production of EcoCert certified organic compost is
completely new to Morocco so all training will cover subjects
formerly unknown in Morocco. Because of the focus of the
Moroccan Government on the development of the agricultural
sector, including organic agriculture, the employees of the
project will learn skills that will guarantee a job for many years
to come.

Chain effects Agro industrial companies like Surac, a sugar company that
makes sugar from sugar cane, produces 15,000 tons of bio
waste per year. Because they have no use for it, they burn all
the waste. Surac has expressed its interest to solve their bio
waste problem and the project will sign a contract with them to
buy their bio waste. Similar contracts will be negotiated with
Nestlé and Naturex and other agro industries. Poultry and dairy
farmers sell their manure as clients appear at the gate. Large
parts of the year there are no clients. Those farmers are very
interested in a contract with the joint venture to have their
manure taken away from their farm at a regular basis.
Transport companies will be hired, from the second year on, to
transport the raw material and end product. An estimated 10
additional trucks with driver and aid-driver will be needed every
day. A contract will be signed with a transport company. As
Certified compost is a bottle neck in Organic or Bio production,
the availability will give a boost to this production and all the
players in the value chain involved.

Environment The actual 'mining' of fields which provokes erosion and bio
degradation will be stopped with the farmers growing organic
vegetables for export to Great Britain.
In general, compost acts as a sponge in the soil, preserving
water and minerals, so less irrigation and fertilisation will be
necessary. The uncontrolled degeneration of agricultural waste
produces large quantities of N2O and other nitrogenous gasses
which affect global warming much more than CO2.

Position of women To improve the situation of women, the project partners will
engage women where possible although the making of compost
is a heavy job dominated by a male workforce. One of the
managers will be a women.

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Morocco

PSI09/MA/24 Introduction of UASB technology for decentralised


wastewater treatment in Morocco

Location Kasba Tadla

Sector Water

Applicant Colsen International, Hulst, Netherlands

Local partner Ste. Mabsout, Kasba Tadla, Morocco

Start project 01 February 2010

End project 30 June 2011

Total budget EUR 1,465,590 (50 percent PSI contribution)

Goal of the project


Building a pilot sewage treatment plant based on UASB (Up flow Anaerobic Sludge Blanket)
technology in Kasba Tadla as a demonstration object for the partners to market the
technology.

Summary
Water and clean water in particular, is scarce in Morocco. The lack of sufficient water
resources is endangering the country's economic growth, as 2 of the main economic pillars,
agriculture and tourism, are largely dependent on the availability of sufficient water of good
quality. Traditional wastewater treatment technologies are expensive because of the high
investment costs, high operational costs (electricity costs in particular) and high maintenance
costs. The application of UASB technology will lead to a considerable reduction of these
investments and to substantially lower operational costs. The traditional treatment plants
deliver drinking water quality. The UASB plant will deliver irrigation water quality. So UASB is
proposed at a comparably very low cost to deliver just a little less clean water.
At this moment only a small number of wastewater treatment facilities is operational in
Morocco. It is therefore expected that when taking into account the costs and sustainability
of the UASB technology, the project will have a positive economic impact and that follow-up
sales of similar systems in Morocco will be generated after launching of the pilot plant in
Kasba Tadla. The pilot project will not only be a show case for Kasba Tadla, but also for other
municipalities with similar problems in Morocco and other countries in the North-Africa an the
Mediterranean. The Applicant Colson B.V. is active in design and building of this kind of
installations since 1989 in the Netherlands but also abroad (Cyprus, Egypt). The local partner
Mabsout Sarl is a contractor active in building infrastructure for new urban and industrial
areas. Part of his job is to build the sewage systems. The Partners believe strongly that there
is a large market in Morocco for this technology especially with the actual back up by the
Moroccan government. They will join forces in a joint venture.

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Results
• Result 1 : Formalisation of the business organisation by the partners and preparatory
design works;
• Result 2 : Local construction phase 1;
• Result 3 : Local construction phase 2; UASB components manufacturing;
• Result 4 : UASB components assembly and installation (phase 3) and finishing of the
UASB reactor unit (phase 4);
• Result 5 : Start-up, monitoring and analysis, training and workshops.

CSR aspects
An extensive CSR package is provided for by the Partners: subjects treated are: labour
standards, personnel policy, employee participation, health and safety employees,
environment and food safety, chain responsibility, corruption, human rights and corporate
social involvement.

Impact
Long term economic Partners plan to cooperate in the joint venture for many years
activity to come. The joint venture will promote, design and sell the
reactors. Building of the reactors will be subcontracted to
Sté Mabsout. For the moment EUR 400,000 is planned as spin
off investment. This investment will be used for more training
of employees and offices in other Moroccan regions and
logistics (cars etc).
The partners believe that this is the minimum investment.
Probably sales will go much faster and of higher volumes and
than investments also have to be much more important. Spin
off turnover is calculated at EUR 5,400,000, 2 years after
completion of the project.

Employment and During the pilot phase, 30 people will be employed (16 low
working conditions level and 14 high or medium level). Two years after completion
of the project this will be a total of 72 employees (39 low level
and 33 high level).
Fulltime employees in the joint venture will receive a salary
package that is consistent with the prevailing salary levels in
Morocco. Starting point for the joint venture is that employees
will receive a wage that reflects their educational background
and skills, experience, responsibilities, and that it will motivate
them to grow within the company. Also the coverage of
expenses, health, insurance premiums, social funds, etc is
considered as part of the salary package. In particular because
it is expected that part of the personnel may have to be
recruited outside Kasba Tadla and therefore additional travel
and lodging expenses may be considered. Depending on the
position it is expected that the range of salaries will be between
4,000 and 7,000 Dirham (EUR 440 resp. EUR 775), that is for
medium and high level personnel. Minimum wage in Morocco:
Dirham 2,009.

Transfer of knowledge Most of the knowledge to build, operate and maintain a UASB
reactor is new to Morocco and all this knowledge has to be
transferred.

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Chain effects Especially the Agricultural and Tourist Industry will benefit from
the introduction of this technology and thus by this project.
National health care will also benefit. At the moment 40% of
the drinking water of the city of Casablanca comes from the
river in which Kasba Tadla discharges its waste.

Environment The development of Morocco's economy is largely depending on


the availability of sufficient water. The 2 sectors that form the
main engine of the Moroccan economy are agriculture and
tourism, both sectors that have a large demand for water.
While supply is limited, demands are increasing, and pollution
is threatening surface and groundwater resources.

Position of women It is expected that 15% of the workforce will be women.

Other impact Whereas the project will co-operate with the technical
university in Beni Mellal, it expects to be able to transfer the
UASB technology to all students interested in wastewater
treatment. In that way the project will be able to recruit also
female students who want to build up a career in wastewater
management for jobs or internships. For female students this
can mean that they have access to a specialised market, which
normally may be difficult to access in a country like Morocco.
The Dutch LEAF foundation will use the reactor at Kasba tadla
as a study object for students and research people from
Universities in Morocco.

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Morocco

PSI09/MA/25 TISLI Flowers: Extended peony production for


Morocco

Location Porte d'Atlas

Sector Agriculture

Applicant De JetSet B.V., Aalsmeer, The Netherlands

Local partner Isli Flowers S.A.R.L., Rabat, Morocco

Third partner Tierra B.V., Renkum, The Netherlands

Start project 01 December 2009

End project 31 October 2012

Total budget EUR 1,409,764 (50 percent PSI contribution)

Goal of the project


The partners want to achieve an extended production and sales of quality peonies for export
in the Atlas Mountain range of Morocco on 3 different locations totalling 5 ha with outgrower
farmers resulting in a final production level of 924,000 stems of peonies in from year 7 on, of
the project.

Summary
Peony production is actually limited by the number of cold hours the plant has to receive
before flowering. This makes peonies rare outside a narrow selling season in the Netherlands
as well as in the USA. By using the enormous diversity in altitudes and thus in chill hours of
the Atlas mountains this project plans to bring Peonies to the market as well as before as
after the normal season. The Atlas area is the most undeveloped region of Morocco with
mainly subsistence farming as means of livelihood. As a lot of other crops have the same
necessity on chilling, this peony operation can be the beginning of a development for this
difficult region.
With this project the partners want to achieve an extended production and sales of quality
peonies for export in the Atlas Mountain range of Morocco on 3 different locations totalling
5 ha with out grower farmers. Within 3 years, this project will establish 5 ha of peony
production at 3 locations and trial fields at different locations for future expansion.
Production sites are located within 60 km range at selected altitudes for central processing.
To achieve stable quality it is vital that crop care, harvest and handling will be initially
coordinated and managed centrally while out growers are gradually trained and phased into
the system. Production will be transported to Casablanca for export to the US, Europe and
the Middle East or, alternatively by truck to Europe.
Investments in hardware include planting stock of selected varieties from the EU and the
States, irrigation equipment, processing storage and local logistics. The Applicant company is
Aalsmeer auction based and owned by a Dutch family of Moroccan origin. The local partner
company is a joint venture of a Moroccan entrepreneur together with a French company
owned by a Dutch individual. In Total 65 people will be employed and trained.

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Results
• Result 1 : Business establishment;
• Result 2 : Initial planting;
• Result 3 : Planting phase 2;
• Result 4 : Capacity building;
• Result 5 : Production, communication, quality management.

CSR aspects
The project will be managed under good practice management by the directives of the Fair
Flowers Fair Plants (FFP) certificate. This certificate covers both social directives as well as
environmental directives. The FFP certificate is based on the MPS Socially Qualified
certification, which has an elaborate social chapter as well as an elaborate environmental
chapter. For all positions the project will be an equal opportunity employer while all key
positions related to quality will be reserved for female employees. The project regards it's
employees as key assets and sees medical care as a condition to corporate well being.
Consequently medical care is considered a part of employment benefits.
To avoid extreme inspections in the USA regarding drugs and terrorist activities, a special
certification of Authorised Economic Operator (AEO) will be obtained.

Impact
Long term economic As one generation of a peony plantation takes between 20 and
activity 30 years the partners do commit themselves with this project
for a long term economic activity. Spin of activities with a value
of EUR 1.0 million in the second year after the pilot phase,
resulting in a turn over of an extra EUR 663,173, consist of; a
larger acreage, continuous introduction of new varieties and
cultivation of other export crops (flowers, vegetables and fruit)
which need chill hours and can be cultivated in the Atlas
mountains). Other micro climates in these mountains will be
explored to fit other harvesting periods in line with marketing
demands.

Employment and A total of 65 jobs will be created by this project including 7 of


working conditions high / medium level. Key positions in the project will be female.
Processing will be done in a shielded area away from seasonal
influences. In line with the FFP requirements, workers will
benefit of several secondary working conditions. These are i.e.
clean and working sanitary, lunchroom and lunch offered by the
employer, European standards concerning manipulation of
pesticides and fertilizers, medical care and free access to trade
unions and labour consultancy. Considering the importance of
quality in the project we argue that quality management team
is considered skilled labour and receives the required credits for
this in our employment and for the project evaluation.
Seasonal employment will be sourced from extended families in
tradition with local customs and practises.
Apart from more than average wages (10% above the local
usual minimum wage) for all employees local key positions in
the Quality Management Team will be rewarded with a bonus
for skilled labour additional 5%.

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Transfer of knowledge Three types of knowledge will be transferred:
• Agricultural (specific knowledge on how to grow export
flowers is still an unknown topic in Morocco);
• Managerial capacities do exist in Morocco but not yet
abundantly in the Atlas region;
• Logistic knowledge and competences are very specific for an
extremely perishable product as cut flowers and are not
much available in Morocco.

Chain effects Chain effects are merely applicable to Agro- input suppliers and
transport companies. The idea of growing chill hour crops in the
Atlas zone can easily lead to other economic operators copying
the initiative with the same or other crops.

Environment The project will rely on manual labour for crop care in stead of
agro chemicals. It is the intention of the project to use no or
very limited agro chemicals. However it should be noted that
peonies are new to the region and pest and weed control is a
result of regional environment. In case of application of any
agro chemical use, workers will be supplied protective clothing
and equipment in the best MPS standards.
Soil conservation will be stimulated when a perennial crop is
planted instead of annual crops. Furrow irrigation is commonly
practised in the usual present annual crops which is
unfavourable in leaching of nutrients and soil erosion. (potato,
cereals and onions) Drip irrigation is more efficient on water,
nutrients and plant health.

Position of women Key positions in the project will be female. The project will
favour female employment for all positions.
Female employment in key positions is very scarce in this
region.

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Mozambique

PSI09/MZ/21 Manufacturing of granulated compound fertilisers


for the Southern African markets

Location Beira

Sector Chemical industry

Applicant Sainath international Private Ltd, Satna, India

Local partner Agro Industries Limitada, Gurué, Mozambique

Third partner Export Trading Malawi Ltd, Limbe, Malawi

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,266,154 (50 percent PSI contribution)

Goal of the project


The goal of the project is to set up a pilot project for the production of granulated compound
fertilizers for the local Mozambican market and the Malawian market.

Summary
The 3 project partners will establish a fertilizer granulation plant for the production of
granulated compound fertilizers in the port of Beira in Mozambique for the Mozambican and
Malawian market.

The applicant in this project is Sainath International Private Limited, the local partner is Agro
industries Limitada and the third partner is Export Trading Malawi.
The current supplies of compound fertilizers in Mozambique are mostly imported from
South Africa, Asia and Europe. The remaining 15-20% of the total amount of fertilisers used,
is blended by local blending companies: concentrated nutrients procured at the world market
are mixed together into locally-specific fertilizers according to the N:P:K ratios required by
the farmers. Blended fertilisers tend to be cheaper than imported compounds, but the quality
of these fertilisers is inferior. With a granulation plant the cost benefit of blending over
imported compounds are the same, but the quality of the fertilizer is remarkably better.

The project partners will establish a new joint venture (named SAF) company that will
operate a fertilizer granulation plant. The production will consist of 4 production lines for the
production 4 types of fertilisers.

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Results
• Result 1 : Inception phase / business structure finalised;
• Result 2 : Construction of the new fertilizer granulation plant;
• Result 3 : Production of the first granulated compound fertilisers;
• Result 4 : Farmers' training and fertiliser distribution in operation;
• Result 5 : Business operation evaluated and expansion planned.

CSR aspects
The partners will implement their own CSR guidelines for the project.
A draft CSR-guideline has been developed and comprises a range of issues and principles
including:
regional development (e.g. support to a local school, improving local medical care, etc) and
environmental conservation (ISO 14000 certification), support to the agricultural
communities (extension of technical support and information to the members of the rural
communities).

Impact
Long term economic The partners plan to invest EUR 750,000 to increase the
activity capacity of the fertiliser plant, create additional storage and
sourcing of raw materials, establish a soil laboratory and to
increase the number of sales outlets during the 2 years
following project conclusion.

Employment and During the project 43 new jobs will be created of which 7 on
working conditions medium / high level.
Two years later this will increase to 54 jobs of which 10 on
medium / high level.
The project partners will pay more than the current minimum
monthly wage.
In addition, at least 580 farmers will be connected to the
project.

Transfer of knowledge The project will train the 43 employees of the project and at
least 580 farmers.

Chain effects The project will use at least 25 subcontractors by the end of the
pilot project (mainly fertilizer dealers as well as producers of
the ballast products).

Environment The environmental effect of the fertilizer plant will be neutral.


The project will develop environmental management
procedures that will be ISO 14001 certified.

Position of women Given the nature of the operations at the fertilizer plant, the
project partners expect that the majority of the employees will
be male.
During farming training activities and selection of rural dealers,
the project partners will ensure that at least 50% of the target
group will be female.

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Other impact Each year, the joint venture will select a social development
project (e.g. support to a local school, improving local drinking
water facilities, etc) that will contribute to improving the
welfare of the local community.

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Namibia

PSI09/NA/02 Strengthen the chain of fruit and vegetable


production at the ORIP farm in Namibia

Location Aussenkehr

Sector Horticulture: vegetables and fruits

Applicant AgroCap Invest, Ridderkerk, The Netherlands

Local partner NAMS, Aussenkehr, Namibia

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


To set up a certified production chain of fruit and vegetable crops, including the development
of a cold chain, for sales at the Namibian market as well as export to Cape Town.

Summary
Applicant AgroCap and local partner NAMS (Namibian Agro Management Services) will set up
a joint venture to develop a commercial production field of vegetable crops and a modern
cold store. NAMS recently acquired a 10 year contract to manage the ORIP farm (Orange
River Irrigation Project) in the South of Namibia. The focus of this farm has so far been on
grapes only, all for export. This project will focus on producing fruit and vegetables for the
local market using improved cultivation techniques, including HACCP and GlobalGap
certification. Markets to be served are local markets in the project area, as well as Windhoek
and Cape Town. The joint venture will offer locally produced crops, which should replace the
very expensive fruit and vegetables which are currently all imported from South Africa. Even
produce from Namibia is first transported to South Africa, to Cape Town or Piketberg,
because of a lack of cold storage facilities in Namibia. The project will create employment in
a very remote area and will support some 20 settlers with their agricultural production.

Results
• Result 1 : Setting up a joint venture;
• Result 2 : Cold store constructed, equipment installed and employees recruited and
trained;
• Result 3 : Production field laid out, equipment installed, cultivation plan completed;
• Result 4 : Project completion and operation of the production field and cold store.

CSR aspects
The joint venture considers CSR a high priority.
• Labour standards will include a minimum age for employees of 16 years, working weeks of
45 hours in summer and 40 in winter and paying 150% for working on a Saturday and
double on Sundays. Also, workers may consume fruit and vegetables that are produced at
the field, transport will be provided free of charge. A safety plan will be implemented for

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the cold store, protective clothing is provided and employees can go to a health clinic
twice a week on company costs;
• The joint venture will acquire HACCP and GlobalGAP certificates;
• The joint venture is also active in Corporate Social Involvement. They will extend the
Stars in their Eyes programme to Aussenkehr. This is a community development
programme, using football to promote teamwork, commitment and a healthy lifestyle.

Impact
Long term economic In the 2 years after the pilot phase the project partners will
activity invest at least an extra EUR 700,000. Follow-up investments
will be done in extension of the farm and in additional business
developments.

Employment and The joint venture will employ 101 people by the end of the
working conditions pilot, of whom about 70 will be seasonal workers. Medium /
high level jobs concern 4 managers, 6 foremen, 8 in
administration. All other jobs are low level.
The 20 settlers will get support and training to extend their
2 ha grape farm with 2 ha of vegetables.
Salaries will be about 25% above minimum wage.
Two years after the project the joint venture will employ
137 people, of whom about 95 seasonal workers. The number
of small scale farmers will increase to 30.

Transfer of knowledge The employees will all have to adhere to the standards of
GlobalGAP and HACCP. The settlers will also be trained in good
agricultural practice.

Chain effects The 20 settlers will benefit from this project as the vegetables
they will grow, using the infrastructure and sales channels of
the joint venture, will give them year-round income, instead of
only during the grape season.
Local stores, salesmen and supermarkets do no longer have to
purchase their vegetables from Windhoek or Cape Town and
will get them at a lower price.
The joint venture will buy their inputs locally, from about
9 different suppliers. Inputs include packing material, transport
services, fertilizers, etc.

Environment The overall impact on the environment will be neutral. The joint
venture will be HACCP and GlobalGAP certified. The joint
venture will implement a policy to deal with solid waste and
intends to use compost instead of chemical fertilizers as much
as possible.

Position of women Approximately 60% of the employees will be women. Several


middle management positions in the administrative department
will be available for women.

Other impact Workers of the joint venture will have the possibility to use a
certain area on the farm for own production. They will be
allowed to use the infrastructure and facilities that the joint
venture puts in place.

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Namibia

PSI09/NA/21 FSC certified charcoal from invader bush in Namibia

Location Northern region of Namibia

Sector Energy: charcoal

Applicant Eko Blok B.V., Almelo, The Netherlands

Local partner Jumbo Charcoal PTy / Ltd, Windhoek, Namibia

Third partner Densi Tech B.V., Almelo, The Netherlands

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,389,300 (50 percent PSI contribution)

Goal of the project


Setting up an efficient charcoal production unit using the twin retort system to produce FSC
certified charcoal and briquettes.

Summary
Charcoal is a popular fuel in Namibia and South Africa. In addition there is a growing demand
for FSC certified charcoal in Europe. Namibia's woodlands are a particular good source of
wood for charcoal production as invasive species need to be removed to restore the original
ecosystem.

The primary focus of local partner Jumbo Charcoal has thus far been on trading charcoal.
With this project the company will be producing its own charcoal.
In addition to lacking discernment with regard to selection of species, local charcoal
production practice is often small-scale and inefficient. The traditional charcoal is of variable
quality. Traditional charcoal production efficiencies are as low as 10 to 15%, i.e. 7 to 10 kg
of wood is needed for the production of 1 kg of charcoal.
The carbonization technology − the so-called twin retort technology − is far more
environmental friendly compared to traditional methods of carbonizing as emitted gas is
reused and weight efficiency is 33%. The technology is new to Namibia but proven in various
other countries. The twin retort technology was developed in the Netherlands by the Carbo
Group, of which Eko Blok is a part of.

Results
• Result 1 : Finalizing project plan and getting required permits;
• Result 2 : Ordering and installation of equipment;
• Result 3 : Employment and training;
• Result 4 : Commercial FSC charcoal production.

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CSR aspects
CSR is of vital importance to the project, if not from a moral then from a commercial point of
view. As the charcoal is sold to several supermarket chains in Western European countries,
each has its own CSR requirements. For example supermarkets in the United Kingdom
require ethical audits by organisations such as Veritas or Africa Now. Their focus is on labour
conditions. Special attention is paid to the conditions of the workers in the factory and wood
cutter safety. Environmental sustainability is a focus of the partners and is guaranteed by
their commercial interest to comply with FSC standards.

Impact
Long term economic The amount of the additional investment will be EUR 1.3 million
activity for 2 twin retort systems and additional equipment. With an
estimated 200 million tons the bio-mass of invasive species is
enormous and will not limit long term growth of the company.

Employment and The project employs in total 82 people, about 10 of them are
working conditions already employed by Jumbo Charcoal. The other 70 are
additionally employed people. Of the 82 about 13 are medium
or higher level staff. Two years after the pilot phase an
additional 62 people will be employed. The lowest paid workers
will get EUR 50 per month which is about 2.5 times the normal
wages for unskilled labour.
The following arrangements will be made regarding conditions
and side benefits:
• Conditions for the workers in the factory: heat and charcoal
dust require safety regulations and preventive measures
such as mouth caps;
• Wood cutter safety: sharp cutting equipment and thorny
trees require handling instructions, first aid instructions and
a first aid kit;
• Employees get a health insurance, admission to a pension
scheme, a social fund for calamities and a credit and saving
system will be established.

Transfer of knowledge All training related to the kiln operation is new for the country.

Chain effects The charcoal production chain is relatively short. The most
important chain effect is therefore the partial clearing of land of
about 20 large scale farms (10,000 ha each). Land that had
become impenetrable for cattle will become accessible once
more.

Environment Currently 26 million ha (i.e. one third of Namibia's surface


area) is suffering from invasive species, locally referred to as
invader bush. In contrast to the indigenous landscape, which is
parkland-like, characterised by tall trees, scattered bushes and
grasslands, the invasive species form thick, thorny,
impenetrable bushes that are very deep rooting. Where wildlife
and cattle used to feed on the grasslands, the bushes are a
threat to their existence. The deep root system depletes ground
water levels to levels where grassroots do not reach. The
progress of invader bush finally results in desertification of the

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area.
The project benefits the ecosystem by using the invasive
species as raw material for charcoal production. Other elements
of the project that benefit the environment are the use of
gasses emitted in the carbonizing process, the maximum use of
the charcoal as even the dust particles can be pressed into
briquettes and the improved input output ratio compared to
traditional production methods.

Position of women About one third of the employed staff will be women. Women
will especially take the medium level positions.

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Senegal

PSI09/SN/01 The establishment of a specialised hospital laundry


facility in Senegal

Location Diamnadio, Region of Dakar

Sector Medical

Applicant Ziermann GmbH, Sasbach, Germany

Local partner Senalmed SARL, Dakar, Senegal

Start project 01 July 2009

End project 31 July 2011

Total budget EUR 1,499,750 (50 percent PSI contribution)

Goal of the project


To build a laundry facility near Dakar, the capital of Senegal, to clean and disinfect medical
linen and clothing serving the majority of hospitals and clinics in the Dakar region.

Summary
The goal of the project is to build and exploit a cleaning company, close to Dakar, the capital
of Senegal, specialised in washing / disinfecting medical linen and clothing. Customers, who
have pronounced themselves in letters of intent, are hospitals and private clinics in the Dakar
region. At the moment linen and clothes contaminated with blood and excrements are
washed under basic conditions leading to contamination of washing personnel, medical
personnel who have to work with not completely disinfected linen and clothes and last but
not least the patients in the hospital itself who are already ill and therefore more vulnerable
to other infections.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Factory building and procurement equipment;
• Result 3 : Installation of the equipment;
• Result 4 : Recruitment and training of staff;
• Result 5 : Operational phase.

CSR aspects
The processing of contaminated linen can potentially be dangerous for the employees if the
health and safety regulations as set by the management are not adhered to by the staff. This
could affect staff, but also influence the overall performance of the company in the long run.
Therefore emphasis will be put on training and daily supervision. Routine drills and control
are needed to prevent potential accidents and infections. All the employees will be insured by
the company. Since water is a scarce resource, it will be treated and re-used in order to
reduce waste as much as possible. Waste water will be treated. ISO 90001 certification will
be strived for by the project partners.

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Impact
Long term economic The promoters of the project clearly envision the perspective of
activity expanding their services in the future, both within Senegal and
in neighbouring countries. The project would thus also work as
an incubator. Follow-up investments during the 2 years after
completion of this pilot project will consist of:
• Additional medical washing equipment in Dakar:
EUR 500,000;
• Establishment of own collection department with 10 small
trucks: EUR 300,000;
• Setting up of similar but smaller facilities in Kaolack,
Tambacounda, Saint Louis, Ziguinchor and Thies:
EUR 750,000. The total amount of the follow-up investments
will be EUR 1,550,000. These follow-up investments will
create an additional 148 jobs at the respective locations.
Based upon assessment of the market potential, the promoters
project an additional turnover of EUR 3.0 million for the second
year after the pilot phase.

Employment and There will be 96 permanent jobs created of which 8 are of high
working conditions or medium level. In addition, up to 22 contract workers will be
employed for designated periods. More temporary workforce
will be hired when needed to cover peak business periods. The
joint venture partners are committed to pay a minimum wage
that is 144% of the official minimum wage in Senegal.
With regard to the working conditions, an entire set of
preventive measures will be taken to prevent contamination of
the personnel:
• Protective tools such as gloves, mouth covers and special
clothes to put emphasis on security. Air filtration and air
conditioning to provide clean air in the plant facilities and to
underline the importance of security;
• Regular training sessions to emphasize security procedures.
All the employees will be insured by the company as
prescribed by Senegalese legislation. They will have
individual and collective insurance to ensure medical
coverage and social security;
• In addition, the employees will receive fringe benefits: their
transportation fees will be paid by the company. There will
be a canteen open during the day. A monthly school fee
(EUR 20 per child) will also be included.

Transfer of knowledge Because of the lack of adequate medical laundry facilities in


Senegal, soiled laundry from medical establishments has been
treated similarly as ordinary laundry, in spite of its high degree
of contamination. This project will introduce new technology
and new knowledge in order to handle those contaminated
laundry correctly. The project will therefore define an overall
framework for its communication, both internal and external
including a permanent training programme. The overall
objective here is to explain the rationale behind the innovative
approach taken by Senalmed with this project.

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Chain effects The project will make use of local companies that can provide
detergents, transportation services, mechanical maintenance
and packaging materials leading to an estimated indirect
employment of 25 persons. The project will definitively
establish a new set of standards in the laundry services in the
entire West African region.

Environment Most of the waste water used by traditional laundry shops is


flowing uncontrollably into the open gutters in streets and
backyards. The waste water from the joint venture laundry and
cleaning plant will be fully treated before being reused in the
form of steam or evacuated into the public sewage system.
Residues will be chemically treated and filtered before being
released into the sewage system of the Diamnadio industrial
complex. It should be added that the entire waste water of the
industrial zone of Diamnadio is further treated before being
released into the general sewer system.

Position of women Senalmed has committed itself to employing 76 women out of


the total number of 96 employees. This is 83% of the total
workforce. Women will have the same contracts and working
conditions as men.

Other impact The project will introduce an innovative service that is not yet
available in Senegal or other West African countries. Moreover,
this specialised service addresses a fundamental need of
healthcare establishments, namely to provide treatment of
their patients in an environment where infectious germs are
kept at a low level. Most of the viruses and bacteria are
contracted from soiled bed sheets, towels and other textile-
based items disposed of at hospitals and clinics. Most of these
viruses and bacteria are resistant to traditional washing and
antibiotics. The project will thus contribute directly to an
improvement in the healthcare sector in Senegal. By putting
into place a framework of rigid quality control and compliance
with both medical healthcare norms and environmental
standards for its operation, the project may also serve as a
model to inspire other businesses in areas where health aspects
are an important risk factor.

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Senegal

PSI09/SN/21 Farm Machinery Rental

Location Richard Toll

Sector Agriculture

Applicant Hines Industries Inc., Michigan, USA

Local partner Agrina Senegal SARL, Dakar, Senegal

Start project 12 December 2009

End project 15 May 2012

Total budget EUR 1,417,890 (50 percent PSI contribution)

Goal of the project


To launch a company that rents tractors, ploughing attachments and other farming
machinery to farmers in Senegal's northern agricultural region, fulfilling the demand for farm
equipment by users who cannot justify the purchase of equipment based on their own less-
than-full- time needs for equipment.

Summary
The project involves the set-up and launch of a professional farm machinery rental business.
Project financing will be used to purchase and refurbish used machinery and equipment and
to provide training and knowledge transfer in multiple facets of the business. Training and
knowledge transfer modules shall be carried out on technical subjects but also on the
managerial aspects of a modern equipment rental company.
Following start-up and training, the project plan foresees start of equipment rentals for the
2010 pluvial growing season. Initial machinery purchased will include tractors, levellers and
various ploughing, planting and harvesting attachments, as well as excavators, front-loaders,
other loading equipment, and machinery and personnel transport vehicles.

Results
• Result 1 : Joint venture formed;
• Result 2 : Set up T.A. and training;
• Result 3 : First equipment purchase and start up;
• Result 4 : Second equipment purchase and training;
• Result 5 : Operations result and final report.

CSR aspects
The farm equipment rental company will strive to provide rental services to sectors of the
market that are normally difficult to reach (small farmers) for financial reasons. The
company has begun discussions with microfinance partners, who have voiced initial interest
in working with the company to provide financing vehicles for groups and individual small
farmers.
As mentioned above, safety training will be carried out with all employees, and employees
with customer contact will also receive training on "training the customer" to observe safe
behaviour around farm machinery.

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The company will be an equal opportunity employer and will recruit and employee personnel
without regard to ethnicity, gender, etc.
The company will also act with integrity and transparency and will not accept corrupt
practices by employees or partners.

Impact
Long term economic The joint venture expects to make additional investments in the
activity 2 years following the project's completion, to triple the initial
rental capacity of the company. The plan includes expansion to
Southern Senegal and to other countries in the region.
Additional investments will be primarily in farm machinery and
training of additional personnel to replicate the business model
and expertise developed during the Project. Estimated return-
on investment after completion of the Project is EUR 3.0 million
for expansion to additional locations using the same business
model.
Estimated turnover in year 4 (second year after completion of
the project) is EUR 865,000.
The partners plan to continue their cooperation both through
expansion of the Farm Equipment Rental company, and by co-
launching additional agriculture-related service businesses in
West Africa.

Employment and Sixty employees will work for the company by the end of the
working conditions project. The partners estimate that the company will employ
74 people, 2 years after completion of the project. In order to
ensure safe working conditions, the company will support
ongoing training for employees in safety and skill
enhancement. The joint venture will also institute semi-annual
reviews which will include employee feedback regarding
working environment.
Agrina has a special 'holidays programme' with the children of
the employees. When they are free from school in the summer
holidays, they are employed by Agrina and occupied with light
jobs in the morning. They get classes in agronomy and other
practical topics. Their 'salary' is used by Agrina to buy school
books and school uniforms for them (which is in Senegal a
major preoccupation for parents every year!). This has become
a very popular 'vacation job' and nearly all the employees'
children participate. The partners want to copy this programme
also for the joint venture employees.

Transfer of knowledge The knowledge transfer of professional business processes


related to equipment rental business are new to Senegal. Also,
formal training on use of tractor attachments and relation of
mechanical skills to agricultural techniques is new outside of a
few self-contained European-owned farming operations.
The concept of businesses run according to formats and
processes (such as in service franchises in Europe and the USA)
is new in Senegal, so the planned training in new processes,
which will be driven by forms and process flow maps, will bring
an enhanced knowledge level that can be applied to other

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service industries (including healthcare, food services and
tourism-related services). The value of this new knowledge is
that it provides a formula for success in execution of operating
service businesses – and reduction of errors and irregularities.

Chain effects The primary direct beneficiaries of the project are small and
mid-sized farmers and the farm workers they employ, since the
Project will assist them in increasing the hectares of production
per farmer, the yield per hectare of production and food quality
(and therefore price).
Approximately 2/3 of residents in Senegal are involved in
agriculture, and over 95% of farmers have little or no access to
tractors and other basic farm machinery. Based on these
figures, the total potential beneficiaries of farm equipment
rental service exceeds 4 million people.
Small and contract farmers and out growers: With the initial
equipment purchased for the project, 18 tractors and 5 units of
earth-moving machinery, and assuming average of 1 to 2 ha
per farmer served, the project can serve 1,500 to 2,000
farmers per year (based on one season per farmer) or 800 to
1,000 farmers for farmers with irrigation who are able to
produce twice per year.

Environment The project will have a positive effect on the environment. The
Sahel suffers from the advance of desertification, and the use
of ploughs, watering systems, and agriculture with wind blocks
have been shown to reverse the process of desertification.
Especially in the North of Senegal , the Sahara desert is only
50 km away. Due to the presence of the Senegal river, which
has its sources far away in more wet areas, agriculture has a
high, but relatively little used potential.
Equipment purchased for the project will adhere to the norms
of Europe and/or USA in terms of exhaust and fuel usage
standards. No environmental certification is required.

Position of women It is foreseen that the majority of office staff will be women,
and that the majority of equipment operators, drivers and
security guards will be men. Likely positions of women
employees include: company manager, bookkeeper, scheduling
manager.
The target customers of the project include small and mid-sized
farmers. Approximately 50% of farmers in Senegal are women,
and the project is expected to have a large, immediate impact
on the annual incomes of small farmers, via improved
mechanisation.

Other impact By enabling farmers to cultivate larger areas while improving


the quality and yields of food produced, there is an immediate
indirect effect on rural incomes and employment. The top
2 priorities of rural families are food and health. Increases in
income are first spent on food and healthcare – particularly
financing of quality care for childbirth.

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Sierra Leone (PSI Plus)

PSIP09/SL/01 Mechanised food crops production in the Northern


Province of Sierra Leone

Location Makomp, Northern Province Sierra Leone

Sector Agriculture

Applicant Drie Wilgen Development B.V., Ellemeet, The Netherlands

Local partner Genesis Farms - Sierra Leone Ltd, Freetown, Sierra Leone

Start project 01 July 2009

End project 30 June 2012

Total budget EUR 1,499,816 (60 percent PSI contribution)

Goal of the project


The goal of this project is to introduce commercial and mechanised farming on 2 different
locations in Sierra Leone based on low tillage precision farming techniques for the production
of rice, sorghum and sesame. In addition, an agricultural centre will be established for
training purposes.

Summary
Since the civil war that devastated the country, Sierra Leone heavily depends on the import
of all food products to feed its population. Currently the production of food crops in Sierra
Leone is largely based on slash and burn subsistence farming. Because of over exploitation of
the soil the yields per hectare are continuously decreasing. The goal of this project is to
introduce commercial and mechanised farming in Sierra Leone using low tillage precision
farming techniques. This is a more sustainable farming practice as it needs less inputs, will
increase the average yield per hectare and will prevent depletion and erosion of soils.
Next to the farming activities the project will establish an agricultural centre where
agricultural and computer training will be given to the surrounding farmers and inhabitants.
The project will be located in the Port Loko district. The project partners aim to set up a total
production area of 400 ha, divided over 2 different farms located in 2 different chiefdoms.
The partners in this project are the Sierra Leonean registered company Genesis Farms Ltd
and the Dutch company Drie Wilgen Development B.V., which has a share of 70% in Genesis
Farms. Therefore a separate joint venture will not be established.

Results
• Result 1 : Business foundation / project inception;
• Result 2 : Procurement of equipment, construction of farm buildings;
• Result 3 : Contracting and training of personnel, land preparations;
• Result 4 : First hectares cultivated and harvested;
• Result 5 : Farm operational.

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CSR aspects
This project will comply with international regulations in the field of labour and CSR, taking
into account good working conditions, equal opportunities for men and women, safety
conditions and employee participation in work councils.
As for the environment, precision agriculture is an agricultural technique that respects the
environment.
A social fund will be set up to contribute financially to social events and social family
obligations like marriages, baptisms and funerals. Medical costs school fees, school uniforms
and the like will be paid for in total or partially for those connected to the project.

Impact
Long term economic In due time the joint venture hopes to expand its areal under
activity production to 700 ha. In order to make this possible the joint
venture needs to invest in additional farming and irrigation
equipment, processing equipment, additional storage facilities
and other buildings, GPS equipment and additional training.

Employment and The joint venture will employ 85 permanent workers, as well as
working conditions 50 casual labourers within the project period. Most of the
permanent (55) jobs are manual labour jobs (farm workers).
The remaining 30 permanent jobs concern medium / higher
educated employees.
The wages are at least 25% above the minimum wage in
Sierra Leone for the least paid employees.

Transfer of knowledge At the moment there are no commercial large farming


companies operational in Sierra Leone. The introduction of
modern agricultural practises using low tillage precision farming
techniques can be considered as new for the country. Next to
training of the joint venture employees, knowledge will also be
shared with neighbouring subsistence farmers through training
and reflexive 2 monthly farmers meetings.

Chain effects This project will be the first step to strengthen the agricultural
sector. This will have a moderate influence on the related
supply and service sector. Genesis Farms will attract suppliers
of fertilisers, fuel, agro-chemicals, financial services etcetera.

Environment Genesis Farms will apply low tillage precision farming practises,
which consumes less inputs in terms of fuel, chemicals and
fertilisers compared to conventional farming. The (fossil)
energy per kilogram of production is far lower than with
conventional farming. No chemicals forbidden in the EU will be
used in Sierra Leone as EU standards will be practised.

Position of women This project will provide equal opportunities for men and
women. However it is expected that only 30% of the
employees will be female contracts. Women will mainly be
employed for administrative and processing jobs.

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Other impact Genesis Farms wishes to be embedded in the local
communities, which implies that the company will take up
social responsibilities on community level as well as on
individual level. Policies for assistance will be developed, so
that requests for assistance can be considered within the
policies and financial capabilities.
In the agri-centre in Makomp, secondary school students from
the town will be offered study facilities and internet access.

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Sierra Leone (PSI Plus)

PSIP09/SL/02 LPG bulk storage and distribution in Sierra Leone

Location Kissy Grassfield, Freetown

Sector Energy

Applicant Geogas Trading S.A., Geneva, Switzerland

Local partner Benco Trading Ltd, Freetown, Sierra Leone

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,500,000 (60 percent PSI contribution)

Goal of the project


The goal of this project is to introduce a permanent LPG bulk storage facility with a maximum
capacity of 300 tons in Freetown, Sierra Leone, together with the establishment of 4 gas
filling stations, 1 in Freetown and 3 in other Sierra Leonean Cities, in order to increase the
availability of LPG, for a better price, in the country.

Summary
The applicant in this project is Geogas Trading S.A. based in Switzerland. Geogas is a trader
and supplier of LPG (Liquid Petroleum Gas) world wide. The local African partner is Benco
Trading Ltd, a Sierra Leonean trading company, which mainly deals with the import and sales
of food items, construction materials and small quantities of LPG. Both companies will
establish a joint venture located in the oil harbour of Freetown.
The aim of this project is to introduce permanent LPG bulk storage facilities (with a
maximum storage capacity of 300 tons) in order to supply the home market with LPG. The
LPG will predominantly be used for cooking, but the gas can also be used for industrial
practices, like welding, cooling etc. The applicant will supply the storage facility once a
month. Next to the introduction of the LPG storage facilities, the project will establish 4 filling
stations for (5 kg) LPG gas bottles, 1 in Freetown and 3 in other Sierra Leonean cities.
Sierra Leone is a Greenfield market, where the usage of gas is limited. This project will lead
to the first permanent storage facility for LPG within Sierra Leone. Not only will the
availability of gas will increase because of the monthly supply by Geogas, but it is also
expected that the sales price per kilogram of LPG will drop with 60% in comparison to the
current sales price per kilogram LPG. When the joint venture manages to increase the
demand for LPG, a possible spin off effect of this project will be the reduction of the use of
firewood for cooking purposes.

Results
• Result 1 : Business foundation / project inception;
• Result 2 : LPG bulk storage facility established and staff trained;
• Result 3 : Cylinder filling station set up and staff trained;
• Result 4 : Business development.

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CSR aspects
Geogas takes full responsibility for the supply chain to the bulk storage facility. Furthermore
the company will make sure that all the installations of the joint venture will be secure. If
there is any doubt about safety, the supply of LPG gas will immediately be halted. The
facilities will be shut down until the problem is fully remediated. Furthermore, Geogas will
make sure that there are clear-cut safety protocols and that its employees will receive
comprehensive training and safety instructions. All the salaries are considerably above the
minimum wages. All employees will receive health insurance. The joint venture's staff will be
under strict instruction not to pay bribes. In case any employee or distributor is found to
engage in any corrupt or unsafe practices, he or she will be dismissed immediately.

Impact
Long term economic Once the PSI Plus project has ended, the Geogas-Benco
activity partnership plans to continue its joint venture on a long-term
basis with a view to develop the Sierra Leonean market in line
with other African countries where LPG is more widely
available. The first step will be to expand the bulk storage
facilities from 300 tons to 600 tons of gas storage.

Employment and In total 49 people will be employed by the joint venture within
working conditions the project period. Twenty-two of those jobs can be considered
as high level jobs, 8 at a medium level and the remaining jobs
are at a lower level. 21 Indirect jobs will be created at the gas
filling stations.
After the follow-up investments, 33 additional jobs will be
created, 14 high level jobs, and 19 lower level jobs. The lowest
salary levels of the joint venture are at least 200% above the
minimum wage.

Transfer of knowledge All the training concerning the maintenance of the facility, the
safety protocols and the management of LPG bulk storage
facility can be considered as new for the country.

Chain effects In Freetown, the joint venture will work with 15 to 20 vendors
who will operate as sales agents, each covering an assigned
zone. They will each distribute a minimum of 1,000 cylinders in
a system that is modelled on the system used by the local
cement industry. The vendors will be trained within the project.
Three of the 4 filling stations will be exploited by other
companies, who will also be trained in safety aspects.
The joint venture will supply gas to other major distributors,
which may have their own filling station (presently only one
operated by National Petroleum) but another company Safecon
may reactivate its earlier LPG business and Total has expressed
interest. It is in the interest of the joint venture that more
parties are interested to participate in the mass distribution and
marketing of LPG cylinders.

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Environment For the bulk storage site an environmental impact assessment
will be carried out before the start of the project. It is however
not expected that this project will have a negative impact on
the environment. The LPG business chain produces a limited
amount of waste, as the product is fully consumed at the end
of the chain and the gas cylinders will be re-used.

Position of women The joint venture will provide equal employment opportunities
to both men and women. The joint venture aims to have at
least 1 female person employed at senior management level
and will employ at least 10 women at other levels.

Other impact LPG is a much cleaner and efficient type of fuel than other fuels
actually used in Sierra Leone for cooking purposes.
Furthermore, if the usage of LPG increases, this can decrease
the demand for firewood and charcoal. This project can then
after a period of time reduce the speed of the deforestation in
the country.
LPG can also be used for commercial purposes like welding and
refrigeration and as such can be of assistance for the
development of micro-enterprises.

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Sierra Leone (PSI Plus)

PSIP09/SL/21 Potatoes for Sierra Leone

Location The towns / villages Makeni, Ogoo and Hamilton

Sector Agriculture

Applicant The Potato Company B.V., Emmeloord, The Netherlands

Local partner Agro Ventures Ltd, Makeni, Sierra Leone

Third partner Food and Agriculture Organisation of the United Nations,


Freetown, Sierra Leone

Start project 01 September 2009

End project 30 April 2012

Total budget EUR 1,499,994 (60 percent PSI contribution)

Goal of the project


The establishment of a commercial potato farm comprising 90 ha for the production of seed
potatoes (30 ha) and ware potatoes (60 ha) in combination with an outgrower scheme of
100 small-scale farmers for additional (ware) potato production.

Summary
The applicant in this project is The Potato Company B.V. (TPC). The company's main
economic activity is the international trade in seed and ware potatoes. Next to the potato
trade the company is also involved in the breeding of new potato varieties.
The local partner in this project is Agro Ventures Ltd. This company was recently established
in May 2009.
The third partner involved in this project is the Food and Agriculture Organisation (FAO) of
the United Nations. The FAO will be involved in the set up of an outgrowers scheme and will
contribute EUR 50,000 to this project.
A joint venture will be established between TPC and Agro Ventures. Furthermore this joint
venture (JV 1) will establish a new joint venture (JV 2) with the Ogoo and Hamilton
cooperative farms.
The goal of this project is to produce seed and ware potatoes in Sierra Leone. At the moment
the majority of the potatoes are imported. This project will establish the first commercial
potato farm in the country. Potato farming is not done on a commercial basis yet in the
country, besides by small farmers who use the potatoes mainly for their own consumption.
The commercial potato farm will be located near Makeni, a town about 150 km away from
Freetown.
The potato outgrowers scheme will be are closely located to Freetown.

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Results
• Result 1 : Project contract;
• Result 2 : Ordering and instalment of hardware;
• Result 3 : Employment and training;
• Result 4 : Smallholder production;
• Result 5 : Commercial production.

CSR aspects
• The employees will earn much more then the official minimum wages;
• Employees will be covered for medical expenses;
• A social fund will contribute to social events;
• Modern agricultural techniques will be used respecting the environment.

Impact
Long term economic The partners will continue to jointly invest in the joint venture
activity and will also look for other business opportunities in the
agricultural sector.

Additional investments will be made in expanding the number


of hectares for potato cultivation with at least 150 ha.
Additional hardware in machinery and irrigation equipment and
storage and handling equipment will be needed for this
expansion.

Also, it is planned to expand the cooperation with the


outgrowers to other areas in the country. World Vision
International (an NGO) has already invited the project partners
to expand their activities to the north of the country. There is
an enormous demand for (seed) potatoes and agricultural
knowledge not only in Sierra Leone but also in countries in the
region like Guinea and Liberia.

Employment and During the project 10 persons will be employed in permanent


working conditions jobs (managers, clerks and cold storage employees),
12 persons in 6-months jobs (equivalent to 6 fte) and
200 employees (equivalent to 50 fte) in seasonal jobs.
Furthermore 100 outgrowers will be engaged by the project.

Official minimum wages are around EUR 23 a month in


Sierra Leone. The least paid employees will earn EUR 92 which
is 400% above the official minimum wages.

The employees will have official labour contracts including a


social security package, medical insurance and pension
schemes. As far as working conditions are concerned, much
attention will be given to safety (in relation to working with
chemicals and agricultural equipment).

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Transfer of knowledge At the moment potatoes are only grown by small and mainly
subsistence farmers. Currently no potatoes are produced on a
commercial scale. Modern potato cultivation simply doesn't
exist in the country. Therefore the introduction of modern
potato techniques into the country can be considered as
completely new for the country.

Chain effects Currently there is no real production chain for agricultural


products from producer to end user. This project will establish a
solid production chain for potatoes, from inputs for farming to
sales to consumers.
The outgrowers will benefit from the delivered seed potatoes
and the technical assistance they will receive from the joint
venture. This will increase their yields and thus income. In this
primary production chain it is important that other farmers
participate. The more participation, the stronger the
agricultural chain will become.
Strengthening the agricultural sector will also strengthen
related supplies and services, such as suppliers of fertilisers,
fuel, agro chemicals and financial services.

Environment No chemicals forbidden in the EU will be used in Sierra Leone


as EU standards for their use will be applied. Crop protection
will de done by using the Integrated Pest Management
Guidelines (IPM).

Position of women This project will provide equal job opportunities for men and
women.
The project partners do guarantee that at least 50% of the
employees will be female.

Other impact The joint venture wishes to be embedded in the local


communities, which implies that the company will take up
social responsibilities on community level as well as on
individual level, as they come across. Policies for assistance will
be developed, so that requests for (financial) assistance from
the community can be considered within the policies and
financial capabilities.

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Sierra Leone (PSI Plus)

PSIP09/SL/22 Establishment of a Medical Imaging & Diagnostics


Centre in Freetown, Sierra Leone

Location Freetown

Sector Health care

Applicant Akai House Clinic Ltd, Accra, Ghana

Local partner Medics Services Ltd, Freetown, Sierra Leone

Start project 01 September 2009

End project 31 August 2011

Total budget EUR 1,500,000 (60 percent PSI contribution)

Goal of the project


This project would like to establish an (outpatients) imaging and diagnostic centre where a
variety of services, including CT scanning, X rays, Ultrasound, Mammography and Laboratory
referrals, will be offered to the population of Sierra Leone.

Summary
Currently the medical services available in Sierra Leone are of a very poor quality. The
project partners would like to establish a modern imaging and diagnostic centre to improve
the overall standard of the medical services in Sierra Leone. At the same time this project
fills a gap in the local health care sector, with currently no adequate imaging and diagnostic
services available, forcing patients to go abroad in order to get a medical diagnosis.
The Applicant in this project is Akai House Clinic Ltd, which is registered in Ghana. The local
company, Medics Services Ltd, is registered in Sierra Leone. The project partners will
establish a new joint venture for the execution of this project.
The project will be located in Freetown, Sierra Leone.

Results
• Result 1 : Business foundation / project inception;
• Result 2 : Imaging & Diagnostics Centre established;
• Result 3 : Human Resources;
• Result 4 : Business Development and start up.

CSR aspects
The joint venture will put high emphasize on quality control standards. The partners will
adopt the principles of Clinical Governance (CG) – a certification which proves the clinic is in
compliance with international healthcare standards. Furthermore, the joint venture will
comply with the principals of Good Laboratory Practice − an international certification with
regards to laboratory performance and the quality of the diagnostics. The joint venture will
also adhere to the criteria of the Clinical and Laboratory Standards Institute (CLSI). CLSI is a
global non-profit organisation that promotes the use of voluntary consensus standards and
guidelines within the health care community.

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Furthermore the joint venture will cooperate with NGOs on the referral of patients, whom,
due to their situation cannot afford the clinic's services. The amount of the referred patients
may not exceed 10% of the daily capacity. These patients will be treated for only 25% of the
commercial costs.
The joint venture will pay high salaries, the lowest income group will earn at least 1500%
more than the official minimum wage. A medical waste management programme will be in
place.

Impact
Long term economic In due time the investors hope to realise a fully equipped
activity private hospital containing about 30 beds. Furthermore, the
joint venture would like to establish a national health care
system in cooperation with Nassit, the national security
provider.

Employment and The clinic will employ a total of 38 people. Ten people in high
working conditions level jobs (1 doctor, namely the radiologist who will do the
diagnosis and technicians operating the various medical
instruments). Twelve in medium level jobs (nurses,
administrative people, laboratory technicians and maintenance
engineers) and 16 in lower level jobs (cleaners, security staff).
The staff will receive a decent salary, The lowest paid employee
will receive at least 1500% of the official minimum wage in
Sierra Leone. As a secondary benefit, the employees will
receive health insurance and will be treated free of charge in
the new clinic.

Transfer of knowledge There is no experience with most of the imaging and


diagnostics equipment in the country, so the medical training
activities bring new knowledge to the country. Also, working
with hygiene and safety rules, a high service level and strict
quality control, can be considered as innovative for the local
health sector.

Chain effects This project can introduce a higher quality of health care within
Sierra Leone and can be considered as an important step in
improving the health care facilities in Sierra Leone.
This project can also contribute to a higher level of training of
the local specialist and might prevent Sierra Leonean doctors to
look for job opportunities abroad.
Further, patients who had to travel abroad for a diagnosis can
now be diagnosed locally. Following the diagnosis the doctors
can decide if further treatment (outside the clinic) is necessary.

Environment The joint venture will set up a proper medical waste


management system. Due to the fact that the medical clinic is
not involved in surgery and other patient treatment and that all
scans are digitalised, the amount of medical waste is relatively
low. Therefore an environmental impact assessment has not
been included in this project proposal.

Position of women It is expected that about 40% of the employees will be female.

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Other impact Ten percent of the clinics daily capacity will be directed towards
the low income groups. These patients will be recommended by
NGOs, which will refer the patients to the clinic. It is the idea
that the NGOs will cover the cost for the patients for only 25%
of the commercial rates.

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Sierra Leone (PSI Plus)

PSIP09/SL/23 Processing smallholder palm oil into toilet soap in


Freetown, Sierra Leone

Location Freetown

Sector Industry

Applicant Adam Afrique SARL, Abidjan, Ivory Coast

Local partner Washex Industries Limited, Freetown, Sierra Leone

Start project 01 September 2009

End project 31 August 2011

Total budget EUR 1,296,000 (60 percent PSI contribution)

Goal of the project


The production of affordable toilet soap from palm oil locally produced by smallholders,.

Summary
The Applicant in this project is the in Ivory Coast registered company Adam Afrique SARL.
Adam Afrique is a company which is producing laundry soap for the internal market and the
export market. The local partner is Washex Industries Ltd. This company is also involved in
the production of laundry soap but for the internal market.
The companies will establish a joint venture which will be located in Freetown.

The aim of this project is to set up a factory for the local production of toilet soap. At the
moment toilet soap is not produced in the country but is imported from abroad.
This project will introduce new technology and expertise into the country. The production of
toilet soap is more complicated and technical advanced then the production of laundry soap.
Furthermore this project will have a positive impact on the rural community. The main
ingredient for toilet soap (but also laundry soap) is palm oil, which is locally produced by
small farmers. Increased soap production will thus lead to improved sales of palm oil for the
farmers.

Results
• Result 1 : Business foundation / project inception;
• Result 2 : Soap processing line operational and technical staff trained;
• Result 3 : Quality assurance system set up and staff trained;
• Result 4 : Business development.

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CSR aspects
The joint venture will integrate Corporate Social Responsibility in its operations in the
following ways:
1. Quality certification: the soap factory will acquire GMP certification for quality
management. All employees will receive training in this field;
2. Health and safety on the work floor: Standard Operating Procedures will be developed and
introduced aiming to ensure health and safety for all employees. Employees will be trained
on the job in these fields;
3. Social standards: the joint venture will provide decent salaries to its personnel, far above
the official minimum wages in Sierra Leone, including health insurance;
4. Environmental standards: the joint venture will adhere to international standards for soap
manufacturing.

Impact
Long term economic Within 2 years after the finish of the PSI project, the joint
activity venture will result in an extra production line with a double
capacity in comparison to the first production line.

Employment and In total 33 people will be employed by the joint venture within
working conditions the project period. Five of those jobs can be considered as high
level jobs, 6 are medium level jobs and 22 can be considered
as low level jobs.
These employees will all be newly recruited persons, as the
current employees will continue to be involved in the
manufacturing of laundry soap for Washex Industries.
Within 2 years after project completion, an additional number
of 24 people will be employed by the joint venture.

Transfer of knowledge This project will introduce new soap producing technology in
the country.

Chain effects This project will have the following chain effects:
1. the project will have a positive impact on the oil palm famers
and traders, because the demand for palm oil for the soap
production will rise (at least for a few).
2. the joint venture will contract logistical companies to take
care of the distribution of the toilet soap, both locally and
regionally (mainly in Liberia and Guinea).
3. customers buying toilet soap will be beneficiaries of the
project as they will get access to more affordable toilet soap.

Environment Oils and perfume are insoluble in water and if spilled can create
problems. Perfumes are bought in lined steel drums that are
adequately robust, and flammable perfumes are not used in the
manufacturing of soaps.
All the storage tanks are surrounded by bunds to catch the
contents of the tank, in case it ruptures or a valve fails.
Inside the plant, all the process and operational areas are also
bonded, and the waste is piped to an interception tank before
draining to the council's waste system. The contents of the
interception tank are consistently monitored for alkalinity or
acidity. If in the case, a spill is observed in the plant itself, a

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part of the interception tank can be isolated and the
consequences of the spill neutralized before the waste will be
drained.

Position of women The joint venture will provide equal job opportunities to men
and women.

Other impact The joint venture will promote increased hygiene such as
washing of the hands through promotion programmes which
might lead to a decrease of avoidable diseases like diarrhoea.

Page 154 of 290


Sierra Leone (PSI Plus)

PSIP09/SL/32 Rebuilding Sierra Leone

Location Freetown, Sierra Leone

Sector Services

Applicant Roho Holding B.V., Roelofarendsveen, The Netherlands

Local partner Zacky's Transport Services, Freetown, Sierra Leone

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,500,000 (60 percent PSI contribution)

Goal of the project


The establishment of a lease company and a workshop for operation and maintenance of
heavy equipment, like cranes, bulldozers etc.

Summary
The applicant in this project is the Dutch registered company Roho Holding B.V. The local
partner is the local registered company Zacky's Transport Services (ZTS).
The aim of this project is to establish a lease company for heavy equipment (including
operators) like bulldozers, cranes, graders etc. At the moment heavy equipment is not for
rent in Sierra Leone. Local companies do need heavy equipment but cannot afford to invest
in it themselves. As a consequence all larger construction contracts in Sierra Leone go to
foreign companies, who import there machinery from there own stock according to their
needs. After the job is done they take there machinery back to the country of origin.
The project partners will establish a joint venture.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Workshop constructed and procurement of equipment;
• Result 3 : Recruitment of personnel, training of mechanics and heavy equipment
operators, HIV / AIDS training for all employees;
• Result 4 : Operational phase.

CSR aspects
The joint venture will respect the official labour regulations of the country, but will also work
according to the same standards that are used in the Netherlands.
Safety regulations will be implemented and respected vigorously because working with heavy
equipment can be dangerous.
Safety equipment working clothes and shoes and ear protectors will be made available to the
employees.
HIV / AIDS training will be provided to all employees. Free preservatives will be made
available.

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Impact
Long term economic In the future, the joint venture would like to expand its
activity activities in the country. This means that the company will
invest in additional heavy equipment and the extension of the
workshop.
Another future market potential is the repair and maintenance
of heavy equipment for third parties and the supply of spare
parts.

Employment and In total 51 people will be employed within the project, 29 in low
working conditions level positions, and 22 in medium / high level positions.
The employees will be provided with official labour contracts,
including medical insurance and pension schemes.

Transfer of knowledge The company will introduce knowledge how to operate and
maintain heavy equipment which currently not available in the
country, like dumpers, telescopic cranes and crawler cranes.

Chain effects Companies in the construction, mining and transport sectors in


Sierra Leone will benefit directly from this project. The lack of
proper heavy equipment is a constraint in the country.
The project partners estimate that at least 25 companies will
benefit directly from the lease services at the end of the
project.

Environment This project imposes a potential risk for the environment in


terms of oil spills etc. The workshop will be equipped with a
special concrete floor to avoid leakage of any kind of liquids
into the soil.
A special unit for the collection of wastes like oil, grease, and
chemicals like acid from batteries will also be installed in the
workshop. A rinsing tub will be used to clean parts from grease
and oil. However, in Sierra Leone there are no facilities
available to properly dispose the collected waste products. The
joint venture will look for a solution of this problem during the
implementation phase.

Position of women The operation and maintenance of heavy equipment is


predominantly a men's job in Sierra Leone. It is estimated that
only 7 employees (14%) of the workforce will be female.

Other impact In Africa it is common that companies sponsor all kinds of


social activities. As part of the CSR policy of the company, the
joint venture is planning to sponsor hospitals, sports, cultural
events etc.

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South Africa

PSI09/SA/06 Development of a project company using mini


excavators and a network of small enterprises in
the telecom and utility market

Location Cape Town

Sector Construction / Infrastructure

Applicant NMH Holding B.V., Hedel, The Netherlands

Local partner MHZA machine handling SA CC, Gants Centre, South Africa

Start project 01 July 2009

End project 01 January 2012

Total budget EUR 1,331,658 (50 percent PSI contribution)

Goal of the project


To set up a new business model in excavation works with a network of small entrepreneurs
using mini excavators for infrastructural activities in the telecom and utility market, resulting
in 9 new enterprises by the end of the project.

Summary
A few years ago the applicant noticed that in South Africa the digging of trenches was done
by hand. In the Netherlands mini excavators are used for this purpose and NMH is one of the
companies specialised in this business, contracting independent entrepreneurs (ZZP-ers) to
do the actual work. He tried to set up a similar business in South Africa, but encountered
serious problems and realised that just training to use the excavators was not sufficient to
prepare the people to become entrepreneurs. This lead to this project, introducing a new
business model to South Africa with a network of small enterprises, including intensive
training.
A joint venture will be set up, which will train black South Africans to run a small enterprise
in excavation works for the telecom and utility sector. The joint venture will train the people
and if found suitable it takes care of all the paper work for them to start an enterprise, a hire
purchase contract for a mini excavator, car and trailer for transport, sales contracts etc.
During the first 2 years the entrepreneur will have a job contract with the joint venture.
The joint venture will spend a lot of time and effort to train the people in a range of subjects,
from technical skills, safety, health and environment, personal management skills and
(starting) enterprise skills. The joint venture will pre-finance the mini-excavator, the car and
the trailer. Once the concept is proven, banks will be approached for the pre-financing.
The pilot project will take place in the Cape Town area.

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Results
• Result 1 : Set up joint venture;
• Result 2 : End of preparation phase;
• Result 3 : Training, coaching and employment;
• Result 4 : Training of South African staff;
• Result 5 : First projects executed by the project organisation and the new enterprises.

CSR aspects
The joint venture strives to create a healthy and creative working environment both
internally and externally.
The joint venture will implement ISO 9000 and VCA (Veiligheid, Gezondheid en Milieu
Checklist Aannemers) procedures and aims at reducing energy and water consumption,
placing reuse collection bins. In their HR policy the joint venture commits itself to conducting
its business fairly, honestly and transparently, not making or offering bribes, nor accepting
bribes and developing a programme to implement and support these principles.

Impact
Long term economic After the pilot phase the project partners will start identical
activity projects in other cities, expecting to invest an extra
EUR 1,350,000 in the 2 years after the project. The joint
venture will also continue training in the Cape region until
60 enterprises have been established.

Employment and By the end of the project the joint venture will directly employ
working conditions 22 people. Furthermore 9 small entrepreneurs will have
established their own business and 135 people will be
employed as ground workers by these entrepreneurs.
Two years later these numbers will be up to 36 employees in
the joint venture, 35 small enterprises, plus 359 jobs for
employees of these small enterprises.
Salaries will be at least 125% of minimum wage. The Dutch
VCA standards will be implemented by the joint venture, a HR
policy will apply. A health care insurance will be provided to
employees as part of the social package, covering both the
employee and his or her children and spouse. During the
training period free lunches, coffee and tea will be offered to
staff and trainees.

Transfer of knowledge The knowledge on how to use a mini excavator to dig trenches
in large infrastructural projects is new. More important than the
technical skills is the knowledge of the project approach.
Learning how to start and run your own business with the use
of a mini excavator is a new aspect in South Africa. The project
will prepare the trainees to become small entrepreneurs.

Chain effects The main chain effect of the project is the establishment of
9 small enterprises by the end of the pilot phase and the set up
of a training programme and infrastructure in other cities to
further increase this number. Furthermore, by introducing mini
excavators into the telecom and utility market the production
speed of these projects will increase, so projects can be
executed a lot faster.

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Position of women The aim of the project partners is to have at least 50% of
trainees to be women. For the administrators and engineers
they aim for 70% women. Of the 3 top managers of the joint
venture, 1 will be a woman.
Furthermore the joint venture will support the female
employees by offering a separate space to take care of the
children, a 6 week parental leave (not for trainees) and
childcare for children up to the age of 4.

Other impact A Black Economic Empowerment (BEE) implementation plan is


part of the final project result.

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South Africa

PSI09/SA/22 Potatoes - Main food source for today's and future


Africa

Location Kwa-Zulu Natal Midlands, Nottingham Road

Sector Horticulture: vegetables and fruits

Applicant Van Rijn International B.V., Poeldijk, The Netherlands

Local partner Van Rijn Agriculture South Africa (VRASA), Pietermaritzburg,


South Africa

Start project 01 January 2010

End project 01 April 2012

Total budget EUR 625,830 (50 percent PSI contribution)

Goal of the project


To establish a centre and infrastructure for the rapid multiplication of new potato varieties
making use of the innovative ICON multiplication technology.

Summary
Due to phytosanitary restrictions it is not possible to import potato seed into South Africa. All
new varieties have to start from in vitro plantlets and it can therefore take 8 to 10 years to
grow a sufficient volume of seed potatoes to commercialise a new potato variety.

Dutch applicant van Rijn International B.V. and South African partner VRASA, experienced in
the South African agribusiness, like to introduce an innovative multiplication technology,
named ICON, in combination with a comprehensive production and marketing system which:
• Enables seed potato producers to produce at a reduced cost with less risk for diseases and
production losses;
• Gives end users the quantity and better quality of products within a much shorter period
of time so they can meet market demands.
The project will be implemented in the Kwa-Zulu Natal Midlands, near Durban.

The multiplication technology introduced through this project is unique to South Africa. The
impact on the South African (and later surrounding countries) potato market of this
advanced knowledge about multiplying seed potatoes will be: greater efficiency; higher
quality of potatoes; a decrease of production risks. Consumers benefit because they are
offered better quality potatoes with more variety (e.g. taste and application). The South
African economy benefits of higher output and exports.

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Results
• Result 1 : Completion of joint venture / leasing the land for the project;
• Result 2 : Construction of warehouse incl. laboratory, greenhouse and cold storage
room;
• Result 3 : Building comfort facilities for labour & recruitment of workers, training and
certification;
• Result 4 : Construction of greening facilities;
• Result 5 : Procure hardware necessary for production cycle and first production cycle.

CSR aspects
The Government laboratory and Certification Services shall screen the invitro plantlets from
the Netherlands to ensure they are disease free.
The most significant corporate social responsibility in South African is Black Economic
Empowerment (BEE). The combination of VRASA providing the varieties and the training /
consultancy to the farmers on how to grow these varieties of potatoes most effectively on
the one hand and the contracts from large and strong buyers on the other hand is extremely
beneficial to in particular small BEE farmers: one of the requirements is that companies have
to purchase a minimum volume of their requirements from BEE companies or individuals. But
it will only be possible to cooperate with the BEE farmers after 3 to 5 years when sufficient
volume is created for commercial crop growing.

Impact
Long term economic In the long term growth of the Icon multiplication system is
activity seen as the most important spin-off effect after the initial
phases of the project.
The scale of the project will more than triple between year 3
and year 10. But the system will also be duplicated to other
regions to begin with Free State and Western Cape while the
laboratory and greenhouse in Nottingham Road will still be
used for the production of the basic material.
The follow-up investments are EUR 200,000.

Also the technology can be transferred to other African


countries as the market potential in these countries is very
good.

Employment and In total 73 jobs (60 low and 13 medium / high level) will be
working conditions created with the implementation of this project. Of these
employees, 30 low level and 1 at medium level will be seasonal
workers, employed 6 months per year.
Two years after the project the total number of jobs created in
South Africa will increase to 80 direct (70 low and 10 medium /
high level) and 160 indirect labourers of which 120 low and
40 medium / high level jobs.

VRASA will pay its employees decent salaries and it further


aims at permanent rather than temporary assignments. Those
working in the warehouse, laboratory and greenhouse will be
paid more than the minimum wage as their work is more highly
skilled.

Furthermore, VRASA will offer the following fringe benefits and

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working conditions:
• Housing facilities on site. A certain percentage of the
workers is already housed on farms in the immediate vicinity
but those that have to travel from further away will be
housed in buildings to be upgraded;
• Provision of 2 nutritious meals per day, on site, which other
farm workers in the area do not receive;
• A profit incentive will be payable on production of a
minimum level of tuber multiplication;
• Workers will be given written contracts, which is not the
norm in the potato industry in South Africa;
• Contributions to the Unemployment Insurance Fund (UIF)
will be made on their behalf;
• Workers will be equipped with skills which will allow them to
find future employment in the potato industry in SA, should
the need arise for them;
• A health worker will visit the project regularly to assist with
health issues such as TB treatments, HIV / AIDS issues and
general well-being;
• The facilities for farm workers will be designed so as to
provide accommodation and a recreational area for tea and
lunch breaks and after hours activities.

Transfer of knowledge Knowledge of potato multiplication is enhanced. The introduced


Icon multiplication technology is new to the country.

Chain effects As the Icon System involves the production of much smaller
than normal seed, it requires considerably more labour for the
production and harvesting phases. The production phases
(laboratory and greenhouse) require more skilled trained
people and the land production stage fewer skilled or trained
people.
Parties that directly benefit from the project are:
• Seed potato farmers who will receive disease free, high
quality potato seed. They can save costs on e.g. pesticides,
production losses and can increase yields through which they
can reach the requested volumes in a more efficient way. At
least between 4 and 8 farmers will benefit and from years 6
onwards at least 15 to 20 seed growers;
• Commercial potato farmers will receive better quality seed
potatoes as input for their commercial crops and will in that
way achieve higher efficiencies. In the first 5 years at least
20 commercial farmers will benefit and thereafter,
depending on the success of the varieties, probably at least
40 to 50 farmers. Due to the use of G1 of G2 disease-free
seed the commercial farmer could retain some seed to
replant the following season.

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Environment Because the potato seeds will be more disease free the amount
of pesticides used by the seed is less. Another important
characteristic of the new technology is the fact that less land
and less water is needed.
VRASA will apply non-chemical agricultural nutrition in the
project.

Position of women 85% of employees will be women. Most of the field, grading
and packing employees will be women: the ratio of men to
women most suited is approximately 1:12. Women will most
likely be employed as the technicians and assistants in the
laboratory and greenhouse.

Other impact The families associated with the project will receive appropriate
forms of medical insurance as well as schooling assistance for
children: VRASA has made contact with a school located in the
region and has offered the school a sort of 'Introduction to
Agriculture' programme for students to have theoretical and
practical exposure. Also VRASA will offer a small section where
the students can do their own production. Space permitting, a
soccer field will be built on the farm where Icon production
takes place.

Furthermore the implementation of the project is indirectly of


interest to the following groups:
• End users (processors and retail) will be able to obtain far
more quickly the varieties they would like to have in
sufficient quantities to satisfy their marketing programmes.
These will be the larger processors like McCain Foods and
Simba (Frito Lay) and chain stores like Pick & Pay,
Woolworths and Spar;
• Transport/distribution companies that can handle the
distribution of seed potatoes to farmers and of commercial
potatoes to retailers will be used on a regular basis and can
become a partner in the chain;
• Potato breeders will achieve faster introduction of their
varieties. The implementation of the Icon System will have a
major impact on Royalties that revert to potato breeders.
Because this project will result in greater volumes of new
varieties into the market place as a result of Icon System
tubers being produced, there will be increased revenue
remitted to potato breeders;
• End consumers will in the end have quicker access to new,
better potato varieties, offered by either the processors in
form of fries and crisps or by the retailers in form of baby
potatoes, special table potato concepts, etc.

Page 163 of 290


South Africa

PSI09/SA/23 First stand-alone toolshop for thinwalled injection


moulds in South Africa

Location Durban

Sector Industry

Applicant Gereedschappenfabriek Van den Brink B.V., Harskamp,


The Netherlands

Local partner Topline Tooling (proprietary) Limited, Durban, South Africa

Start project 01 July 2009

End project 31 December 2011

Total budget EUR 1,490,804 (50 percent PSI contribution)

Goal of the project


A stand-alone toolshop able to manufacture and refurbish high quality and complex thin-
walled injection moulds.

Summary
Moulds are used by the (plastic) packaging industry in injection moulding machines for
producing e.g. plastic pots, cups, lids etc. Many of these plastic products can be found in
supermarkets for the packaging of food-products.
Although the South African packaging market is well developed, the mould-making industry
is still an underdeveloped sub-sector in the entire packaging supply chain in South Africa.

Considering their long-term relationship and matching ambitions and strategy, Dutch mould-
maker Van den Brink B.V. and its South African client Topline Tooling Ltd, recognised their
good match to successfully start a stand-alone toolshop in South Africa able to produce and
refurbish complex injection moulds of high quality.

This project will result in added value to the South African packaging supply chain in general
and develop the mould-making industry in particular. South African moulders, who currently
strongly depend on foreign (= distant) toolshops for their complex and expensive injection
moulds, will find an alternative manufacturer nearby.
For knowledge partner Van den Brink the project will lead to a solid position on the South
African market, which fits in their strategy: a similar project is being implemented by Van
Den Brink in Russia.

The joint venture between Van den Brink and Topline Tooling will contract 11 new high level
full time employees and equip a modern toolshop able to stand on its own. Once this pilot
project is in operation and successful, the partners will further invest in the joint venture to
be able to manufacture bigger volumes and develop its position in the South African plastic
packaging industry and other (emerging) markets in the Southern Hemisphere.

Page 164 of 290


Results
• Result 1 : Joint venture established;
• Result 2 : Stand-alone toolshop operational;
• Result 3 : Recruitment and training of personnel and staff;
• Result 4 : Business development.

CSR aspects
The joint venture will take over the ISO 9001 certification from the old Topline Tooling. In
S.A. Topline Tooling qualifies as a small company and should consequently contribute to 4
out of the 7 BEE elements. In this context the company shall implement:
1. Employment equity: Implement a pro-active recruitment policy in order to have at least
50% black employees;
2. Skills development: The stand-alone toolshop will spend at least 2% of the skills
development levy on a training for black employees;
3. Enterprise development: The stand-alone toolshop will spend at least 2% of the Nett Profit
After Tax (NPAT) on enterprise development;
4. Socio-economic development: The stand-alone toolshop will spend at least 1% of the
NPAT on a social programme.

Impact
Long term economic After finalising the project and a successful introduction on the
activity South African market, the joint venture will start investing
EUR 1,000,000 in the equipment to manufacture bigger
volumes of complex thin walled injection moulds. The joint
venture will keep investing in training and education.

Employment and During the pilot period Topline Tooling will create 11 new full
working conditions time jobs. Two years after the project the toolshop will contract
and train 10 extra full time employees. Finally, in year 7, 60 full
time jobs will have been created.

The minimum wage in urban areas is ZAR 12,492


(approximately EUR 1,100) per year. The stand-alone toolshop
will pay its unskilled employees ZAR 78,000 per year and offer
all employees an extensive package of fringe benefits and
working conditions.

Transfer of knowledge South African engineers will develop themselves into Van den
Brink level injection mould-experts which means they will be
upgraded with new injection moulding skills to a knowledge
level almost comparable to that in the Van den Brink's
toolshop.

Chain effects The customers (moulders and brands) will gain time when
refurbishing and/or maintaining their complex injection moulds.
The plastic packaging industry in South Africa will further
mature.

The supply chain for the stand-alone toolshop will benefit from
the outsourcing of activities such as transport of moulds and
marketing and promotional events.
It will trigger the market to start a high quality steel hardening

Page 165 of 290


company as will still be outsourced to a company in Germany.

Position of women Most probably the financial manager will be female but in
general the impact of this project on the position of women is
neutral.

Other impact With the introduction of EU-standard business and employment


conditions, this toolshop shall be an example to other
(industrial) initiatives.

Page 166 of 290


Southern Sudan (PSI Plus)

PSIP09/SD/31 Establishing modern printing services in Juba

Location Juba

Sector Industry: graphic/paper

Applicant Mac-Nels Gulf FZCO (Free Zone Company) Ltd, Dubai, United
Arab Emirates

Local partner Afristar International Ltd, Juba, southern Sudan

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 942,400 (60 percent PSI contribution)

Goal of the project


To set up modern printing services with a production capacity of 792,000 books,
594,000 posters and 1,584,000 leaflets at the end of the project.

Summary
After the establishment of the Central Peace Agreement in 2005, South Sudan is developing.
The presence of international aid organisations and an emerging southern Sudanese middle
class result in a growing demand for services in southern Sudan. The demand for printing
services is also growing.
However, there currently are no large scale multicolour printing services available in
southern Sudan. Public and private organisations which are located in southern Sudan and
need printing services, now have to use the services of printing companies in East Africa or
the Middle East. Expensive logistics add significantly to the printing costs. In addition,
supervision of the print work by southern Sudanese clients is minimal, since printing
activities take place abroad.

The Applicant Mac-Nels Gulf FZCO (Macnels), which is located in Dubai, and the local partner,
Afristar International Limited (Afristar), propose to set up a joint venture in which they both
own 50 percent of the shares.

The core business of the joint venture will be printing services. The project partners will
construct a warehouse in Juba and will acquire a 4-colour offset printing press, mainly for the
production of books, leaflets and posters. The joint venture will employ 52 staff members,
which can be translated into 32.5 full time jobs. The project will substantially contribute to
the development of the service sector of southern Sudan. The project is innovative, since
currently no other southern Sudanese company is able to print the proposed printing
materials. Therefore, the project will bring new knowledge into the country.

Furthermore, the project will reduce printing costs, since printing activities can be executed
locally. The project can facilitate the spreading of information as promotion materials can be
printed cheaper and faster by the joint venture.

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Results
• Result 1 : Set up joint venture and project inception;
• Result 2 : Printing facility operational and management recruited and trained;
• Result 3 : Quality assurance system set up and staff recruited and trained;
• Result 4 : Business development.

CSR aspects
The partners will incorporate a social CSR policy, which will include the provision of free
lunches, payment of social contribution for the personnel, stimulation of staff to send their
children to school and a health care allowance for employees and their family.
Standard Operation Procedures will be developed and introduced to ensure health and safety
for all employees.

Impact
Long term economic Two years after the end of the project the partners plan to
activity invest another EUR 1,500,000. The joint venture will invest in
an additional printing line, with a double or triple capacity
compared to the pilot project. In addition to the follow up
investments in capacity, the partners plan to expand the range
of services offered. The partners will invest in building up
expertise in graphic design and desktop publishing, so that
more advanced products can be offered.
Further, the partners will consider printing newspapers.

Employment and The project will provide employment to 52 persons, which can
working conditions be translated into 32.5 full time jobs.
Out of the 52 persons, 30 persons will work at basic level and
22 will work at medium or high level. The low level jobs
concern the finishing and binding jobs, printer trainees and
casual labourers. High and medium level jobs are the manager,
supervisors, printer operators and Desk Top Publishing experts.
Two years after the end of the project the joint venture will
employ in total 68 people, which can be divided into 44 low
level jobs and 24 medium and high level jobs. According to the
project partners, the minimum wage in Sudan is about EUR 38
per month. The partners will pay at least 200% above this
minimum wage and substantially above the average for the
sector and the region.

Transfer of knowledge The transfer of knowledge to operate the 4-colour offset printer
is completely new for southern Sudan. The training leads to an
enhanced knowledge level and to the acquisition of new skills.
For example, the staff will be trained in Desk Top Publishing, a
computer programme which is being used for offset printing.

Chain effects For most consumables it will not be possible for the partners to
apply a local sourcing policy, because the required products are
not available on the southern Sudanese market. The project
partners plan to hire 2 packaging companies for the supply of
simple packaging materials and 2 local logistic companies.

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Environment The partners are committed to conducting their business
operations in a manner that protects both the environment and
the health and safety of employees, customers and the public.
The project partners aim to use materials that either are
recyclable or biodegradable. The project partners plan to
recycle all the waste paper for packing purposes. This however
will not be possible in Juba, but the joint venture will look at
recycling possibilities in neighbouring countries.
For chemicals, waste chemicals will not be disposed of but used
for their alcohol content for maintenance and cleaning of
machinery.
The project partners aim to use recycled paper and encourage
their clients to accept products printed on recycled paper
wherever possible. The project partners will avoid the use of
plastic packaging and shrink wrapping of finished products to
minimize additional waste. Standard Operating Procedures in
the Quality Assurance Manual will guide staff with regard to
health aspects such as working with chemicals, safety aspects
such as working safely with the press without risk of injuries
and environmental aspects of waste processing, recycling,
energy and water use and paper and ink use.

Position of women The joint venture will favour the recruitment of female
employees.

Other impact The project partners plan to establish internship programmes


with the University of Juba for students wishing to learn the
offset printing business. This will be offered in the form of a
"scholarship scheme" and will be performance based for
students showing high degree of aptitudes in particular fields.
The training programme will be conducted during vacation
periods so as not to interfere with existing study programmes.

Page 169 of 290


Southern Sudan (PSI Plus)

PSIP09/SD/32 Establishment of an abattoir and butchery in Juba

Location Juba area

Sector Agro-industry (meat processing)

Applicant Crewe Industrial Services Ltd, Grange Mill, United Kingdom

Local partner Vegetables and Meat Production Ltd, Juba City, southern Sudan

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,496,924 (60 percent PSI contribution)

Goal of the project


To set up an abattoir and butchery with a processing capacity of 200 animals per week.

Summary
After the establishment of the Comprehensive Peace Agreement in 2005 the southern
Sudanese consumer market is rapidly developing. The demand for fresh products, like beef
and beef products is growing as a result of an influx of expatriate workers and a growing
southern Sudanese middle class. Currently, all quality beef and other beef products have to
be imported, because there are no proper slaughter facilities in southern Sudan.

The Applicant, Crewe Industrial Services (Crewe Industrial), and the local partner,
Vegetables and Meat Products Ltd (VaMP), plan to set up an abattoir and butchery with a
capacity for slaughtering up to 200 animals per week.
The joint venture which will be established will be called Juba Meat & Abattoirs. The abattoir
will be established on a farm area 7 km south of Juba. This farm area will cover 200 to
300 ha, with ample possibilities for further expansion in the future. Adjacent to the VaMP
retail outlet in Juba City a conditioned butchery will be established in a number of converted
containers. Here the quartered carcasses from the abattoir will be cut and processed in the
different beef products required by the various retailers, corporate and individual clients.
Local partner VaMP is a recently established retail company for the sale of fresh products in
Juba and will sell the meat which will be produced by the project.

Besides the establishment of an abattoir and butchery in southern Sudan, the project
partners will also set up a feed lot to see whether fattening of animals in the weeks prior to
slaughtering has an economic and quality effect.

Through this project, modern slaughtering techniques and equipment, safety and hygiene
procedures and training of staff in butchery skills will be introduced in southern Sudan. The
proposed project will establish a totally new production chain in southern Sudan. Local cattle
owners will get a new market outlet and will gain access to the higher end of the consumer
market. Furthermore, HACCP certification will be introduced to ensure health and food safety
during the production process. This will result in an improvement of the quality of locally
produced meat. Therefore, the risk of food related illnesses will reduce in southern Sudan.

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Results
• Result 1 : Set up joint venture;
• Result 2 : Abattoir and butchery established;
• Result 3 : Staff recruited and trained;
• Result 4 : Beef fattening tested;
• Result 5 : Business development.

CSR aspects
The project partners plan to incorporate a CSR policy which will include the provision of a
safe and healthy workplace for its staff members, being a responsible partner for the local
communities in the area where the joint venture operates, and contribution to the protection
of the environment.

The project partners will provide health and safety training for all members of staff, including
training in HIV / AIDS prevention by a health NGO. The project partners plan to implement
HACCP certification. As such, food safety and hygiene procedures will be developed. These
standards will be introduced through training and staff supervision.

Impact
Long term economic Two years after the end of the project the project partners plan
activity to invest an additional EUR 1.5 - 2 million in order to increase
the capacity of the abattoir. Next to an increase in the capacity
for slaughtering animals, the project partners also plan to
slaughter different kinds of animals, for example sheep and
goats. Furthermore, the follow up investment will be used to
expand vertical integration in the chain. The project partners
plan to breed their own cattle and produce their own grain and
other crops. Different food crops, including cereals such as
maize, will be grown to provide crop residues that are very
useful as fodder for the cattle. In addition to the slaughtering of
own animals, the company will also start to offer slaughtering
services for butchers and retailers at commercial rates.

Employment and At the end of the project, the joint venture will employ
working conditions 21 members of staff on a full-time basis. Two of these 21 full
time jobs will be high level jobs, being 1 manager of operations
and 1 veterinarian. 13 Jobs will be medium level jobs, being
7 slaughterers and butchers, 3 administration positions and
3 drivers. Six jobs will be basic level jobs, being 4 general
workers and 2 security persons.
Two years after the end of the project (without follow-up
investments) the joint venture will employ 24 people. The
3 additional employees are 1 extra slaughterer or butcher,
1 administration person and 1 general worker.
The company will pay above the minimum wage. Besides, the
project partners will supply 3 meals per day, all medical
expenses will be covered and housing will be provided to the
managers.

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Transfer of knowledge Butchering skills and meat processing techniques, which are
based on modern knowledge and techniques, will be
transferred to the employees of the joint venture, to produce
quality meat and meat products. Further, awareness and skills
necessary for implementing HACCP standards will be
transferred to the employees of the joint venture. Also, animal
welfare standards will be introduced into southern Sudan.

Chain effects The establishment of a modern abattoir and butchery will


facilitate the development of a new supply chain in the
southern Sudanese meat sector. Local cattle owners will be
given the opportunity to access a new market outlet serving
the higher end of the consumer markets in southern Sudan.
Further a local security company will be hired to protect the
premises of the abattoir.

Environment Environmental responsibility will include the effective collection


and treatment of waste water. To this effect a waste water
pond will be constructed where the water will be treated and
cleaned. Water samples will be taken to ensure that draining
the treated waste water into the river will not cause
environmental or health problems.
The abattoir will have a closed drainage system that does not
allow seepage of waste water into the open environment. The
abattoir will be constructed at a safe distance from any housing
or other businesses to prevent inconvenience. Further, there
will be little waste from the animals themselves, since most
parts can be used. The skins and heads of the animals will be
sold for consumption. Most of the offal is washed out and sold
as local food. Meat of poorer cuts will not be boned out, but will
be sold as a local delicacy that is either deep fried or cooked as
a stew.
For this reason there will be very little bone waste. Hooves and
other offal can be turned into blood and bone fertilizer.

Position of women The impact on the position of women will be neutral. The joint
venture will provide equal opportunities to male and female
candidates for the available jobs. However, considering the
nature of work, it is not realistic to expect that many female
workers will be employed by the joint venture. The project
partners estimate that in total around 10 to 15% of the
employees will be female. About 2 managers will be female.

Page 172 of 290


Tanzania

PSI09/TZ/02 Eco Charcoal in Tanzania

Location Rotian Farm in Simanjiro district

Sector Energy

Applicant Fresh Food Technology B.V., Tiel, The Netherlands

Local partner Rotiana Social Investment Ltd, Simanjiro district, Tanzania

Third partner Stichting Het Groene Woudt (SHGW), Driebergen,


The Netherlands

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,099,250 (50 percent PSI contribution)

Goal of the project


The goal of this project is to establish an ecologically friendly charcoal factory with a capacity
of 1,170 tons of eco charcoal and charcoal briquettes per year in the Simanjiro district.

Summary
For cooking purposes Tanzania's population is largely dependent on charcoal. The production
of charcoal mainly results from wood from illegal cutting of trees. This leads to a high level of
deforestation in the country. The aim of this project is to establish an ecologically friendly
charcoal factory using a twin retort system. The Twin Retort system is a semi-continuous
production module, with a capacity of 900 tons of charcoal and 270 tons of charcoal dust (in
the form of briquettes) per year. In each of the 2 retorts a vessel with fresh wood is to be
placed alternately. Carbonisation of 1 vessel usually takes about 12 hours.
When 1 vessel has reached the carbonisation temperature (ca. 900°C), thermal
decomposition takes place, and pyrolysis gasses are emitted from the vessel. These gasses
are combusted in-situ to provide the heat supply for heating up the other vessel. This way,
no external energy source is needed after start-up. The used wood will be FSC certified.
The production efficiency of the traditional method producing charcoal can be as low that 8 to
15 kg wood will lead to only 1 kg of charcoal. With the Twin Retort system, charcoal can be
produced far more efficiently as only 3.3 kg of wood is needed to produce 1 kg of charcoal.
The major sales market of the produced charcoal will be the towns of Arusha and Moshi
about 80 km from the production site.
The applicant in this project is the Dutch registered company Fresh Food Technology (FFT)
B.V which will establish a joint venture with the local Tanzanian partner Rotiana Farm Ltd.
Stichting Het Groene Woudt, a corporate foundation (SHGW) is the third project partner. This
project is the first initiative in Tanzania to produce charcoal in a environmentally sustainable
way making use of the Twin Retort System. The factory will be located in the Simanjiro
district on the Rotiana Farm.

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Results
• Result 1 : Project inception;
• Result 2 : Purchase and instalment of equipment;
• Result 3 : Employment and training;
• Result 4 : Commercial charcoal production.

CSR aspects
• RSI and SHGW have a Human Resource Manual based on the Dutch labour laws and the
partners will apply this on the project as well;
• Safety regulations and instructions will form an essential part of this project because the
employees will have to work with heavy equipment and very high production
temperatures. The safety regulations will be implemented vigorously;
• All employees will receive a working contract with health insurance and pension scheme;
• A credit and saving system will be established for the employees as well as a social fund
for calamities;
• 74% of the employees will be female, including the management of the factory;
• The charcoal will be FSC certified.

Impact
Long term economic Within 2 years of project completion 2 additional kilns for the
activity production of charcoal will be installed.

Employment and In total 34 full time employees will be employed by the end of
working conditions the pilot project. Two of these jobs are on a high
(management) level, 10 on a medium level, and the remaining
22 on a more basic level. Good working conditions will be
assured by respecting working hours per day and by providing
adequate clothing and safety equipment to the employees, also
free lunch will be provided. The salaries will be at least 20%
above the minimum wages.

Transfer of knowledge The most important knowledge which will be transferred is the
production of eco charcoal with the use of the twin retort
system. This process requires a deep understanding of the
charcoaling process and constant monitoring of the production
process is required as exact temperatures have to be
maintained.

Chain effects The most important chain effect is that this project can set an
example for the country on how charcoal can be produced on a
sustainable environmentally friendly way. At least in the direct
surroundings of this project deforestation because of charcoal
production will be diminished. This project is located in a very
remote area of the country at least 100 km away from the
nearest serious settlement. The expectation is that the charcoal
will be sold to traders. These traders will sell the charcoal most
probably in the nearest towns Arusha and Moshi. The traders
are responsible for the transport of the charcoal to the
markets.

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Environment This project will have a positive effect on the environment. The
production of eco charcoal requires far less wood than the
traditional production process. Furthermore cooperation will be
sought with the local authorities to prevent the illegal cutting of
trees for the production of traditional charcoal in the region.
Compared to the traditional charcoal production processes, the
Twin Retort system is very low on emissions.

Position of women The impact on the position of women will be positive. In total
25 out of the 34 employees will be women, which is 74% of the
total workforce.

Other impact Because of the high temperature at which the eco charcoal is
made, no toxic substances remain in the charcoal. When the
charcoal is used in a kitchen, no toxic gasses are released. With
the traditionally made charcoal toxic substances are not burnt
during the charcoaling process. The use of eco charcoal will
significantly reduce pollution with toxic gasses within the
households.

Page 175 of 290


Tanzania

PSI09/TZ/04 Mruazi Heifer Breeding Unit

Location Tanga region

Sector Agriculture

Applicant K.I. Samen B.V., Grashoek, The Netherlands

Local partner Holland Dairies Ltd, Tanga, Tanzania

Third partner Tanga Dairies Cooperative Union (TDCU), Tanga, Tanzania

Start project 01 August 2009

End project 31 July 2012

Total budget EUR 1,118,382 (50 percent PSI contribution)

Goal of the project


To establish a heifer / breeding bull farm producing Zebu, Sahiwal, Friesian Holstein cross
breeds on a 1,000 ha farm resulting in a mother herd of 500 animals after 3 years. The
offspring will be sold to Tanzanian dairy farmers. The farms by-products will be milk and
weaner bulls.

Summary
The main aim of this project is to establish a quality heifer and breeding bull farm to supply
the Tanzanian dairy farmers with cows / bulls which produce a higher amount of milk per
cow / offspring, but are also resistant to the regions climatic conditions. At present there is
no existing heifer / breeding bull company in the country which can supply quality livestock
to the dairy farmers. A by-product of the heifer breeding is milk and weaner bulls. The milk
will be sold to the milk factory, the weaner bulls to the meat industry.
The project partners would like to cross-breed the indigenous Zebu cow, the Pakistani
Sahiwal and the Dutch Friesian Holstein in order to produce a more productive milking cow /
breeding bull. This project will be the first initiative in Tanzania to breed quality live stock for
milk production using the 3-way cross breed. Experience with this breed in Kenya and
Australia shows that this breed produces about 25% more milk than the currently used Zebu
/ Friesian Holstein cross breed (2,300 versus 1,800 litres per lactation period).
The new breeding farm will be established by 4 project partners: the Dutch registered
applicant K.I. Samen, the local partner company Holland Dairies, the third partner the
Tanzanian Tanga Dairies Cooperative Union (TDCU) and the fourth partner the Tanzanian
company Katani Ltd.
The project will be located in the Tanga region on part of the land of Katani Ltd.

Results
• Result 1 : Company establishment;
• Result 2 : Farm development phase 1;
• Result 3 : Farm development phase 2;
• Result 4 : Completion of farm development;
• Result 5 : Project completion.

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CSR aspects
The new company will incorporate a CSR policy. All employees will have a pension scheme,
health insurance, and working hours etc according to the Tanzanian labour laws. Minimum
wages will be at least 20% above labour laws. For part of the staff the company will provide
proper housing.

Impact
Long term economic As the production of the quality heifers is a time consuming
activity process (minimum 4 years) follow-up investments are not
requested within 2 years after completion of the pilot. It takes
time to build up the parent stock of the company. The partners
will invest though in replacement of animals.

Employment and The project will directly employ 54 people from year 3 onwards.
working conditions Two of those jobs can be considered high level jobs, 4 are
medium level jobs and 48 can be considered basic level jobs.
Furthermore, many seasonal workers will be employed. Their
number can be estimated at 40 to 100 per day. The salaries
paid for the lowest paid workers are 120% of the minimum
wages.

Transfer of knowledge This project will introduce the knowledge about breeding
programmes (3-way crossing), herd management systems
(computerised) and the knowledge about the use of sexed
semen.
Furthermore knowledge will be transferred to the small-scale
dairy farmers through training days, visits and informal
contacts.

Chain effects The following chain effects are expected:

Beneficiaries Kind of benefit Nature of benefiting


party

1 Rural Farmers Higher income Individuals


through: Heifers (at the moment 3,000
Breeding bulls established dairy
Breeding farmers)
techniques

2 Tanga Fresh Ltd Better profit Company Ltd, partly


through more owned by cooperative
supply of milk

3 TDCU Income through Cooperative union,


profit sharing shareholder in Tanga
Fresh Ltd and in the
new company

4 Cattle feed and Higher turnover Individuals


input suppliers

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Environment The joint venture will have to partly clear the area of thorn
bushes in order to make grazing for the herd possible. The
bigger trees will be left untouched. Further the joint venture
will actively prevent soil erosion through riverside forest
conservation, utilization of environmentally friendly acaricides
and peripheral tree planting. Further the joint venture will
make use of insecticides from vegetable origin.
Overgrazing is prevented through controlled rotational grazing
using solar powered electric fencing.

Position of women For specific farm duties preference will be given to female
workers (management / staff functions, milking, calf rearing,
artificial insemination, administrative duties). However, overall
it is expected that the impact on the position of women will be
neutral.

Other impact It is expected that the biggest creation of employment is


through the sales of dairy cattle to smallholder farmers.

Page 178 of 290


Uganda

PSI09/UG/03 Uganda's first cardiology clinic "Piloting advanced


diagnostics and intervention"

Location Kampala, Uganda

Sector Medical

Applicant Dr Moopen's Holding FZC, Sharjah, United Arab Emirates

Local partner International Hospital Kampala, Kampala, Uganda

Start project 01 July 2009

End project 01 July 2011

Total budget EUR 1,498,400 (50 percent PSI contribution)

Goal of the project


To establish a commercial cardiology clinic based on catheterisation lab technology for
advanced diagnostics and treatment of heart diseases, having a maximum capacity of around
3,000 patients annually.

Summary
The medical sector in Uganda is developing. Next to public healthcare providers, there are
several privately owned hospitals and clinics that provide the urgently needed healthcare.
Most healthcare centres however, do not go beyond primary and secondary levels. General
diagnoses can be executed, but specialized interventions and treatments often cannot be
provided in Uganda.
Applicant Dr Moopen's Holdings FZC from Dubai is the largest private healthcare provider in
the United Arab Emirates operating more than 60 healthcare establishments (polyclinics,
hospitals and pharmacies) in both UAE and India. They are all characterized by their cost
effectiveness at project level, allowing the hospitals to provide low cost healthcare to the
public. Dr Moopen's Holding among others owns the MIMS centre in India, which is renowned
for its institute for cardiac sciences.
Local partner International Hospital Kampala (IHK) is the most successful private hospital in
Uganda. Established by Dr Ian Clarke, it has grown to become a modern 100 bed hospital
offering services ranging from gynaecology and ear, nose and throat to surgery and
cardiology.
At the moment, IHK can only offer basic cardiac diagnosis through echoes and stress ECGs.
For interventions and treatments however, patients need to travel abroad to Kenya, South
Africa or India, which comes at considerable costs. The partners therefore propose to
establish Uganda's first cardiology clinic for advanced diagnostics and intervention by
investing in a catheterization lab and specialized training of all medical personnel involved.
The partners will establish a separate venture in a building adjacent to IHK. This project will
not only be of help to many cardiac patients, it will also boost the image of the medical
sector in Uganda by showing this kind of interventions can be done in Uganda.

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Results
• Result 1 : Project inception;
• Result 2 : Construction and installation;
• Result 3 : Knowledge transfer and training of medical staff;
• Result 4 : Pilot production and business development.

CSR aspects
For a healthcare provider, international professional standards are of the utmost importance.
During the project a pre-audit for the Quality Assurance System (ISO 9001 and ISO 14001)
for provision of medical services will be done.
With regard to staff, IHK is well aware they need to offer their employees competitive
salaries, challenging career opportunities and professional training and education
programmes, in order to keep them.

Impact
Long term economic The partners expect to invest another EUR 1.0 million within
activity 2 years after the pilot.
DMH and IHK will continue their joint effort to develop their
business in Uganda and expand the capacity of advanced
cardiology. Another possibility the partners think of, is to open
a branch in Tanzania, or to develop similar plans for other
medical fields of expertise like kidney dialyse and kidney
transplantation.

Employment and The project will generate 44 new employment positions. A few
working conditions of them are low qualified (3 cleaners), most of them are
medium / high qualified, or even at a specialist level
(3 people).
Two years after the project, this number is expected to grow to
100 employees, of which only 4 are low qualified.
The wages will be compliant with other private hospitals. Good
working conditions are part of the Quality Control routine as
these highly responsible tasks require well educated, well
motivated and fit personnel.

Transfer of knowledge All knowledge regarding this advanced diagnosis and


intervention clinic is new to Uganda. Not only will this project
lift the level of cardiac knowledge present in Uganda, it will also
make it more attractive for Ugandan specialists to choose a
certain specialization and stay in Uganda, as this will be the
first time cardiac specialists can actually work in a fully fledged
cardiac clinic in Uganda. The brain drain in developing countries
is mostly caused by a lack of possibilities in the local country.
By introducing this tertiary level clinic, the partners will do their
part in counteracting this brain drain.

Chain effects The tertiary medical service will also bring more patients to
Kampala, leading to medical tourism and increasing services
demand in Kampala. This will benefit all service providers that
cater for the medical industry in the country.

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Environment The impact on the environment will be neutral. As part of the
Quality Assurance system, the hospital will maintain
appropriate measures with regard to public health, hygiene,
medical waste, solid waste, liquid waste, sewage, water usage
and energy saving.

Position of women At least 60% of all employees will be female. This applies to the
organisation as a whole, from nurse to specialist.

Page 181 of 290


Uganda

PSI09/UG/04 Pilot production of generic veterinary medicines in


Uganda

Location Kampala

Sector Pharmaceutical industry

Applicant Alfasan Nederland B.V., Woerden, The Netherlands

Local partner Farm Support Ltd, Kampala, Uganda

Start project 01 July 2009

End project 01 December 2011

Total budget EUR 1,497,286 (50 percent PSI contribution)

Goal of the project


To establish Uganda's first manufacturing unit for production of GMP-Pharma certified generic
veterinary medicine, starting of with the production of at least 12 different powders and
liquids.

Summary
In a country where 80% of the people depend on agriculture, livestock is an important asset.
Because of the tropical climate in Uganda, many livestock diseases are prevalent. The
availability of veterinary pharmaceutical products is therefore crucial to the sector.
Applicant Alfasan Nederland B.V. is a manufacturing and distribution company for generic
veterinary medicines. Their products are marketed in over 100 countries worldwide. Local
partner Farm Support Ltd from Uganda is the local representative of the Alfasan brand in
Uganda and the sub region, since 2005. Farm Support has always had the ambition to locally
produce veterinary drugs. As all drugs are currently being imported, the partners see an
interesting business case to become the first local manufacturer of veterinary medicine in
Uganda. This will allow them to produce drugs at a lower price and to have a faster response
time to sudden outbreaks of diseases. The factory will be established in Kampala.

Results
• Result 1 : Joint venture established and EIA;
• Result 2 : Construction and utilities;
• Result 3 : Installation of equipment;
• Result 4 : Training and certification;
• Result 5 : Pilot production and business development.

CSR aspects
The production facility will be established in compliance with Good Manufacturing Practice
standards.

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Impact
Long term economic It will take time to optimise the installed production capacity
activity and to obtain all required licences. Expansion of the factory will
in first instance be reached by employing more staff, rather
than through new equipment. Therefore no follow-up
investments will be done in the 2 years following the project's
completion. However, the partners are fully committed to
making this project a success. In due time partners are
thinking of investing in the production of acaricides and
injectables.
Two years after the end of the project, the partners expect to
quadruple their annual turnover as compared to the turnover at
the end of the project.

Employment and Altogether 23 people will be employed by the end of the


working conditions project: 15 production workers, 7 middle managers and
1 pharmacist. Two years later this will become 25 production
workers and 12 middle managers.
The lowest paid staff will at least receive 50% above local
minimum wages. Additionally they will receive medical
insurance, meals when on duty and protective clothing.

Transfer of knowledge All training provided will be new to the country. Especially the
pharmacist and the middle managers will obtain highly valuable
knowledge.

Chain effects The obvious effect in the chain will be the low cost provision of
good quality medicine in Uganda. This will help farmers to keep
their cattle in better shape, which in the end leads to a higher
yield. The farmers will also be informed about the analysis of
diseases and correct use of medicine by the sales team of Farm
Support. This is already ongoing business for Farm Support,
but will be intensified and supported by the joint venture, once
the project is up and running.
In terms of indirect employment, Farm Support expects to be
hiring 50 additional sales people for its own business to sell all
the Alfasan Uganda products.

Environment An Environmental Impact Assessment will be conducted upon


implementation of the project. Additionally a water treatment
system will be installed and solid waste will be safely disposed
of.

Position of women At least 50% of the employees will be female. At least 4 will be
in a higher management position.

Other impact One additional advantage of this project is that Alfasan Uganda
can better adapt to the local needs of individual farmers. An
example was given by Stephen Birungi from Farm Support:
many farmers cannot afford animal drugs because many drugs
are in large (and thus for the small farmers unaffordable)
packaging. Local manufacturing will make it possible to produce
smaller volume packs, thereby reaching more smaller farmers.

Page 183 of 290


Uganda

PSI09/UG/05 Pilot production of water-based paint and coatings


in Uganda

Location Kampala

Sector Chemical industry / Plastics

Applicant Sadolin Paints East Africa ltd (SPEAL), Nairobi, Kenya

Local partner Sadolin Paints (U) Ltd, Kampala, Uganda

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,022,720 (50 percent PSI contribution)

Goal of the project


To establish a production line for water based glossy paints with an annual capacity of
200,000 litres, and a line for water based architectural coating with an annual capacity of
250,000 kg, designated for the local market.

Summary
In the decorative paint industry one can generally distinguish between matt and glossy
paints. Both products can either be made on a solvent base or a water base. In Europe,
solvent based paints are banned from the consumer market because of the hazardous
volatile organic compounds (VOCs), yet in Uganda these paints are still commonly used by
the public. Matt paints already are produced on a water basis in Uganda. High gloss paints
(approximately 30% of the market) however, still are not, as they require a specific
production process. An additional advantage of water based paints, is the fact that it has a
major positive impact on the environment.
Applicant Sadolin Paints East Africa Ltd (SPEAL) from Kenya and its sister company Sadolin
Paints Uganda Ltd (SPUL) from Uganda are market leaders in the paint industries in their
respective countries. As such, they want to be on the forefront with regard to technological
innovations.
For this PSI project, the partners want to invest in a paint production line for water based
glossy paints and for water based architectural coatings. The former product is currently not
available on the Ugandan market and thus will compete with solvent based glossy paints.
The latter product is currently being imported and will thus act as import substitute.
Although there is no legislation on the hazardous use of solvent based paint yet, the project
partners want to think ahead and introduce innovative technologies in order to allow for new
standards to be set.
As both companies are owned by the same holding company, no new joint venture will be
established. The project will be located at SPUL's current premises, in the Industrial Area of
Kampala.

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Results
• Result 1 : Inception and planning;
• Result 2 : Building adapted and production lines operational;
• Result 3 : Staff trained in production and certification protocols;
• Result 4 : Pilot production, promotion and follow-up business plan.

CSR aspects
Both SPEAL in Kenya and SPUL in Uganda are ISO 9001 certified. The new production lines
will be incorporated in this quality control system. During the project, the partners intend to
obtain ISO 14000 certification as well. This certificate focuses more specifically on
environmental issues.

With regard to occupational safety and working conditions it is worth noting that Akzo Nobel
just recently started auditing both Sadolin Kenya and Uganda (and Tanzania), in order to
make sure these 'Akzo agents' live up to the CSR standards Akzo Nobel has set for its
activities worldwide.
Last of all, Sadolin adopted the International Financial Reporting Standards in 2007.

Impact
Long term economic As demand for the 2 water based products will only rise
activity gradually, investment in additional production capacity within
2 years after project completion is likely not required. The
turnover in the second year after project completion will
therefore be generated by the initial production capacity.

Employment and Twenty new people will be employed for the water based
working conditions production lines. These people will be dedicated to these lines,
as they require other skills than for the other production lines.
Five people will be medium / highly skilled. The remaining
15 are general production workers. Two years after the project
has finished, this number will double to 10 medium / highly
skilled and 30 low skilled employees, in order to meet the
increased demand.
All employees will be paid at least 50% above local minimum
wages. This includes bonuses, transport allowances and the
like. On top, all employees are offered medical insurance under
the Jubilee healthcare scheme, covering the employee, spouse
and up to 3 children.
Additional benefits include free lunch whilst on duty, protective
company clothing and contribution to Uganda's pension fund
NSSF.

Transfer of knowledge The technology to produce water based glossy paints and
architectural coatings is new to Uganda, albeit related to the
current practices of paint production. Additionally, the
knowledge of ISO 14000 management standards, production
protocols and environmental requirements is new to the
industry in Uganda.

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Chain effects This project will provide additional business for Sadolin's
existing network of transporters and distributors. On the input
side, a few local suppliers of calcium carbonate and grinded
stones will be contracted. Also, the labelling and packaging
industry will be involved. In total, a number of 10 organisations
are expected to benefit from this project.

Environment An environmental impact assessment will be conducted. SPUL


already has a waste water treatment facility, which will be used
for waste water produced by this project as well. During the
project, SPUL will obtain ISO 14000 certification.
The positive thing of water based paints as compared to solvent
based is the virtual elimination of hazardous Volatile Organic
Compounds (VOC) during production and application. On top,
the paint can be easily washed away with water which is more
environmentally friendly than thinner or other oil based
products.

Position of women As a lot of labour involves dealing with heavy loads, the
production is generally done by men. Out of the 5 higher skilled
employees however, at least 2 will be female.

Other impact A long term effect of this project may be an improvement in


environmental legislation with regard to the use of solvent
based paints. At the moment, solvent based paints cannot be
forbidden in Uganda as there is no alternative. With this
project, an alternative can finally be provided.

Page 186 of 290


Uganda

PSI09/UG/21 Aloe Cure − Carefully the best

Location Around Kampala

Sector Industry / Pharmaceutical

Applicant Rossen Seeds B.V., Hem, The Netherlands

Local partner NG'Kor Cottage Farm Ltd, Moroto, Uganda

Third partner Agroni Ltd, Moscow, The Russian Federation

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


To establish a processing plant for Aloe Vera, capable of processing 500 tons of aloe leaves
per year into 300 tons of aloe gel, aloe drink and aloe lotion for both export and the local
market.

Summary
In 2004, a national export promotion policy from the Ugandan government encouraged
several farmers to start growing high value crops like aloe vera. Unfortunately, no attention
was being paid to the processing and marketing of Aloe Vera, leading to several hundreds of
disappointed farmers who now leave their Aloe Vera fields be.
In this project, a factory for processing Aloe Vera leaves into gels, drinks and lotions will be
established in order to finally give these farmers access to market.
The Applicant in this project is Rossen Seeds B.V. from the Netherlands. Rossen Seeds B.V.
is a breeding and production company for vegetable seeds, who is always on the lookout for
interesting agricultural projects throughout the world. Rossen Seeds B.V. has experience in
growing Aloe Vera in Niger, but discovered that Aloe Vera grown in Uganda yields much
heavier leaves. Local partner NG'Kor Cottage Farm Ltd is a family owned, 2,000 acre farm in
the Karamojong region in northeast Uganda, on which they herd cattle and grow various
agricultural products. The 2 partners first met in 2006 and developed their plans over time.
For financial purposes, a third partner, Agroni Ltd from the Russian Federation, has been
added to the consortium and in order to have the required expertise for production and
marketing of aloe products on board, the Nederlandse Bereidingsapotheek (NBA) has been
added as a strategic partner.
Initially a joint venture will be established between Rossen Seeds B.V., NG'Kor Cottage Farm
Ltd and Agroni Ltd. At the end of the project, NBA will buy itself into the venture until all
partners own 25% of the shares.

The project will seek close collaboration with the Luwero Aloe Vera Growers Association that
represents aloe farmers in several districts around Kampala. About 100 member farmers will
deliver aloe leaves to the factory during the project period, leading to a substantial increase
in their yearly income. This project will be the first to deliver such a steady marketing
opportunity to these farmers.

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Results
• Result 1 : Joint venture established;
• Result 2 : Purchase, installation and commissioning of hardware, with parallel the
renovations of the factory building;
• Result 3 : Training of staff, factory employees and farmer families;
• Result 4 : Commercial production.

CSR aspects
The partners intend to adhere to local regulations. An environmental impact assessment
(EIA) will be executed and submitted for approval to NEMA. During the building of the
factory, the partners will implement GMP requirements. A GMP pre-audit will be part of the
project results.
The partners have signed an agreement with a local women's group, stating to recruit
women from this group in particular, depending on the final location of the factory. Two
thirds of all staff will be female.
Last of all the partners agreed to establish an African Solidarity Fund from 2011 onwards in
which 2% of total export turnover will be donated to be at the disposal of the Aloe Growers
Service and the local women's group.

Impact
Long term economic The partners plan to invest another EUR 800,000 in the second
activity year after project completion. This will be invested in leaf
drying, cutting and packing equipment for the production of
pure gel capsules. These investments will be done in
accordance with the new division of shares in the joint venture,
being 25% for each partner.
The partners intend to continue their cooperation once the PSI
project has finished. In the long run, they want to cover the
whole of Uganda as far as aloe vera farmers are concerned.

Employment and The project will employ 29 people in total (24 low level,
working conditions 5 higher level) and sign up contracts with 20 main outgrowers.
Two years after the finalisation of the project a total of
58 people is expected to be employed (48 low level, 10 higher
level) and 40 main outgrowers to be contracted.
Employees will be paid fair and competitive wages. In addition,
EUR 15,000 per annum is budgeted for staff catering, social
welfare and healthcare (this comes down to EUR 500 per
person).

Transfer of knowledge The professional Aloe Vera processing technology is new to


Uganda and thus adds to better and higher educated
employees. Next to the joint venture's staff, Aloe Vera farmers
will be trained through an aloe growers service. This service
consists of a demonstration / test field adjacent to the factory
on which farmers will be trained in good growing conditions,
preparation of soil, plantation, fertilization, irrigation and
harvesting and post-harvest handling. This is new to the
country as well.

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Chain effects The most important impact on the chain is that Aloe Vera
farmers finally will have access to the market. During the
project an estimated 100 farmer families will be involved, but
this will soon double once the project is up and running.
Farmers on average own 0.4 ha of Aloe vera. With a density of
one plant every 2 m2, an average yield of 3 kg per plant per
year and a price of EUR 0.25 per kilogram, every farmer can
earn EUR 1,500 on a yearly basis.
Next to farmers, the joint venture will also generate
employment for about 20 transport companies for transport of
leaves.

Environment The impact on the environment is neutral as no harmful


chemicals will be used, nor will any harmful effluents be
produced. The Aloe leaves waste will be fully recycled and sold
as ingredient for capsules and tablets.

Position of women Two thirds of all employees will be female (20 in total). This
includes women on management positions, so 3 women will be
employed in higher management.

Other impact After the second year of operation, the partners have agreed to
establish the African Solidarity Fund. In this fund, 2% of all
turnover generated through export to the Russian Federation
and Europe will be donated and will be at the disposal of the
women's group (25%) and the Aloe Growers Service (75%).

Page 189 of 290


Zambia

PSI09/ZM/21 Zambia's first manufacturers of high quality woven


polypropylene bags

Location Lusaka

Sector Industry / Packaging

Applicant AU-STAR CC, Johannesburg, Republic of South Africa

Local partner Specialised Systems Ltd, Lusaka, Zambia

Start project 01 January 2010

End project 01 July 2011

Total budget EUR 1,498,400 (50 percent PSI contribution)

Goal of the project


To establish a plastics factory for the production of 12 million AD PROTEX bags annually for
the local and regional cement industry.

Summary
Zambia has a substantial cement industry. Cement used to be packed in paper bags but this
has almost completely been replaced by woven polypropylene bags. Polypropylene bags are
stronger than paper bags which results in low breakage rates. In Zambia, 95% of all cement
bags used are AD PROTEX bags.
Applicant AU-STAR CC from South Africa used to be a distributor of plastics machinery and a
consulting expert in the field. They used to sell machinery from Windmoller & Holscher and
BSW, that is used to manufacture the AD PROTEX bags. Just recently, AU-STAR CC started to
invest in its own plastics manufactories and now owns 4 factories in South Africa.
Local partner Specialised Systems Ltd is a sales company and service provider in a wide
range of sectors varying from sales and installation of ICT related products and supplying
and servicing the health care sector, to delivery and installation of ATM's and sales of Philips
Lightning systems. Specialised Systems is part of the Kenian based AJ Group who has
subsidiaries in several eastern and southern African countries.
Together, these partners want to establish Zambia's first local production factory for AD
PROTEX bags. Initially, mainly the cement industry will be serviced, but in time the partners
intend to supply the sugar, maize, tea, fertilizer and wheat industry as well.
The partners will create a joint venture in which AU-STAR CC will take 30% of shares, and
Specialised Systems 70%. The project will be located in Lusaka.

Results
• Result 1 : Project inception;
• Result 2 : Purchase, transport and installation of equipment, start of promotion, start of
testing hardware and test production;
• Result 3 : Knowledge transfer and training of general and technical staff;
• Result 4 : Pilot production and business development.

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CSR aspects
For Quality Assurance the partners will implement ISO 9001 and will take appropriate
measures regarding public health, solid waste, liquid waste, sewage, water usage and energy
saving.

Impact
Long term economic The partners intend to continue their cooperation once the PSI
activity project is finalized. The partners will invest in a second
production line, and an extrusion and weaving machinery to
produce plastic fabric. This will be done in order to fill in market
demand from neighbouring countries.

Employment and The project will provide jobs to 30 people: 5 in the office (all
working conditions high skilled), 20 in operations (of which 9 medium / high skilled
and 11 low skilled) and 5 other (low skilled).
Since the extrusion and weaving process is very labour
intensive, the project will employ a total of 170 employees
(150 low, 20 medium / high) 2 years after finalization of the
project (80 additional people for the weaving and extrusion
line, and 60 additional people for the double capacity
AD CONVERTEX line and the additional production shifts).
Wages will be compliant with other businesses and additionally
the company will provide health care programmes and personal
care for its employees.

Transfer of knowledge The knowledge of producing these kind of bags is new to


Zambia and as such will enhance the level of technical
professionalism in Zambia.

Chain effects This project will mainly affect the clients who now have to
import their bags or use inferior material because of the high
import costs. The product will easier available (just in time)
which saves on stocking costs. Furthermore the company's
clients will no longer bear the risks of fluctuating currency
exchange rates.

Environment The (little) waste generated by this factory will be sold to local
recycling companies. The bags are known to be reused time
and time again. Because of their durability, the bags are used
for storing food items, or to make seed containers in plant
nurseries etc.
As part of its quality assurance system, the partners take
appropriate measures regarding public health, solid waste,
liquid waste, sewage, water usage and energy saving.

Position of women Approximately 40% of all staff will be female.

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Asia

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Page 194 of 290
Afghanistan (PSI Plus)

PSIP09/AF/21 Good Agricultural Practices (GAP) centre for


Afghanistan

Location Kabul

Sector Agriculture

Applicant Alb Groot B.V., Schagerbrug, The Netherlands

Local partner Agricultural Business and Consultancy Afghanistan, Kabul,


Afghanistan

Start project 01 August 2009

End project 31 December 2011

Total budget EUR 1,500,000 (60 percent PSI contribution)

Goal of the project


Providing key agricultural supplies, training and services to Governmental Organisations,
NGOs and private farmers to promote GAP, food security and agricultural development.

Summary
The project aims to establish a Good Agricultural Practices (GAP) centre near Kabul. The
centre will include a warehouse for agricultural supplies, advisory services (soil, water, and
pest analysis), a production workshop for simple tools (including spare parts and repairs), a
demonstration and training facility and a cold storage. Target customers are Governmental
organisations, NGOs and private farmers.

Results
• Result 1 : Business establishment;
• Result 2 : Practical training and demo site in place;
• Result 3 : Construction of warehouse, cold storage, training centre and small workshop;
• Result 4 : Production, communication, quality management and spin off.

CSR aspects
The project will target the safe Application of agro chemicals and will contribute to a more
selective application of pest control chemicals, which will be beneficial for the environment.
The project partners will cooperate with local government agencies to develop a protocol for
the handling of agro chemicals.

Impact
Long term economic The partners aim to roll out several other outlets in
activity Afghanistan, investing another EUR 400,000. Turnover will
increase to EUR 802,600, 2 years after the projects end.

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Employment and The project will employ 17 people. Salaries will be above
working conditions market average and employees will get one meal a day. The
joint venture will ensure a clean and safe working environment
in accordance with Dutch standards.

Transfer of knowledge Seventeen people will be trained (10 low level, 7 medium /
high level). In addition, the project aims to train 150 NGO
workers and 20 extension workers through a train the trainer
concept. Theoretical trainings support the practical training in
the demo field.

Chain effects The project can fulfil an important part in the agricultural value
chain by guaranteeing a continuous supply of high quality
agricultural inputs.
Four companies will benefit directly from this project.

Environment The project can have a positive effect on the environment by


improving the use of chemical fertiliser and reducing the use of
pest control chemicals.

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Bangladesh

PSI09/BD/01 Introducing the production of PP / PE multi-layer


wide width liners and coatings for Flexible
Intermediate Bulk Containers

Location Gazaria

Sector Packaging industry

Applicant LC Packaging International B.V., Nieuwerkerk aan den IJssel,


The Netherlands

Local partner Dutch Bangla Pack Ltd, Dhaka, Bangladesh

Start project 01 July 2009

End project 31 June 2011

Total budget EUR 1,488,610 (50 percent PSI contribution)

Goal of the project


To establish a production line for wide width coatings and wide width multi-layer liner films
for application in FIBCs, with a capacity of respectively 343 tons per year (coating) and
1,067 tons per year (liner film).

Summary
To facilitate the needs of high-end customers of flexible intermediate bulk containers (FIBCs
or 'big bags'), the projects partners, LC packaging B.V. and Dutch Bangla Pack Ltd, will
invest in a production facility for wide width multi layer liner material and wide width PP / PE
coating for woven fabrics. Both semi finished products can be used in the manufacturing of
specialised FIBCs for high-end users in the food, pharmaceutical and petrochemical markets.
The project will be located in Gazaria, south of Dhaka. Since LC packaging is already 50%
owner of Dutch Bangla Pack, the project will be implemented under the latter entity.
Although coating of small width woven fabrics is already being done in Bangladesh, the
proposed wide width coating line is new in both technological complexity (difficult to apply an
equal layer) and application of the coated fabrics (e.g. seamless FIBCs). Normal, small width
film extruders are used in Bangladesh for the production of – for instance – plastic bags for
the export market. However, the proposed production of wide width liners will introduce new
technology in both the larger diameter and the co-extrusion of multi layers. The liner
material can be used as a specialised inner bag inside an FIBC. Other type of products from
the wide width film extruder are for example sheeting for housing and agricultural
applications.

Results
• Result 1 : Business structure established and completed design of production facility;
• Result 2 : Production facility operational;
• Result 3 : Staff trained en certification acquired;
• Result 4 : Commercial production , sales and business development.

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CSR aspects
The social standards of the project are laid down in the HR policy of DBP, ensuring excellent
working conditions and secondary benefits like health insurance. During the project, the
facility will be certified for:
• ISO 9001:2000 (quality management);
• ISO 14000 (environmental standards);
• ISO 22000 (food safety management, including HACCP and BRC certification);
• OHSAS 18001 (Occupational Health and Safety Assessment Series).

Impact
Long term economic Two years after the pilot, the follow-up investments will
activity amount to EUR 2.0 million, spend on expansion and
diversification of the production capacity. This will lead to a
doubling of the turnover to EUR 3.6 million in the second year
after the project.

Employment and The project will create 52 jobs (35 low, 17 medium / high level)
working conditions and 2 years later this will be increased to 92 (67 low,
25 medium / high). The least paid worker in the project will
receive USD 54 per month, more than double the minimum
wage of USD 24 per month.

Transfer of knowledge The training to operate and control the high tech machines will
introduce new knowledge. Additionally, the ISO 22000 and
OHSAS 18001 are rather uncommon in Bangladesh.

Chain effects The production and sales of high quality semi finished goods
will stimulate other manufactures to improve their operations.
As an unexpected spin off, the liner film extruder will produce
sheeting for application in housing and agriculture.

Environment The ISO 14000 certification ensures proper environmental


management systems. Additionally, the plant will recycle its
cooling water after application in the production process, saving
both water and energy.

Position of women The project prefers female candidates, but it is uncommon for
Bangladeshi women to work in technical positions. However,
the partners commit themselves to hiring at least 30% female
staff, also in the medium / high positions (at least 5).

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Bangladesh

PSI09/BD/02 E.G.T. Textiles Ltd, a joint venture for the


production of wider width jacquard mattress
tickings

Location Gilarchala, Keowa, Sripur, Gazipur

Sector Textile industry

Applicant Enterprice Global Trading B.V., Enter, The Netherlands

Local partner Apex Jersey Ltd, Dhaka, Bangladesh

Start project 01 June 2009

End project 31 May 2011

Total budget EUR 1,001,300 (50 percent PSI contribution)

Goal of the project


To establish a production facility for high quality mattress ticking, with a capacity of 25
ticking per hour for the European and regional market.

Summary
The project partners aim to develop a production facility to produce high quality wider width
jacquard knitted mattress ticking products. Jacquard knitting is a high quality knitting
technique that enables many technical features like computerised patterns. A mattress
ticking is the cover (outer layer) of a mattress. The production facility will be set up in
Gazipur, North of Dhaka by the project partners Enterprice Global Trading B.V. and Apex
Jersey Ltd.

Results
• Result 1 : Set up of joint venture and factory design;
• Result 2 : Production facility operational;
• Result 3 : Recruitment and training of personnel;
• Result 4 : Commercial production and certification.

CSR aspects
The partners want to comply with all relevant standards, concerning working conditions and
environmental awareness. The following certificates will be obtained:
• SA 8000 certificate (social compliance);
• Wrapp certificate (Waste reduction and purchasing policy);
• Oekotex 100 standard compliance certificate;
• ISO 9001 certificate (Quality management system);
• ISO 140001 certificate (Environmental management system);
• Membership BGMEA (Bangladesh Garment Manufactures and Exporters Association).

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Impact
Long term economic The partners plan to invest another EUR 800,000 in a quilting
activity line, additional jacquard knitting machines and a laminating line
within 2 years after the pilot. This will increase the expected
turnover with 70% to EUR 4.3 million.

Employment and During the project 70 jobs will be created of which 45 medium
working conditions / high level. Two years later this will increase to 120 jobs of
which 60 high level. The wages will be at or above market
average and the workers will receive additional benefits such as
medical allowance, maternity benefit, festival bonus, provident
Fund and paid overtime. The many certifications will guarantee
good working conditions.

Transfer of knowledge Expertise about jacquard knitting and high end mattress
ticking, transferred during the project, will be new knowledge.

Chain effects The project will generate indirect employment to 20 people in


the value chain (yarn producers, quilting, transport, etc).

Environment The project will have a neutral impact on the environment. The
production process does not require toxic chemicals and does
not produce a lot of waste. The washing plant will have an
Effluent Treatment Plant (ETP) for the waste water.

Position of women Given the nature of the operations (textile industry), the
project partners expect that at least 70% of the employees will
be female (50). Of the medium and high level jobs, 20% will be
female.

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Indonesia

PSI09/RI/01 Lombok Sumbawa Flores Home Industries

Location Mataram, Lombok with branch on Sumbawa and Flores

Sector Decorative industry

Applicant Westkust Holland Export B.V., Egmond Binnen,


The Netherlands

Local partner Satrya Putra Mandiri, Mataram, Indonesia

Start project 01 July 2009

End project 01 July 2011

Total budget EUR 897,500 (50 percent PSI contribution)

Goal of the project


The purpose of the project is to contract and train 1,200 home industries that deliver at least
20 different products attaining a volume of 30 sea containers for shipment to Europe.

Summary
The applicant Westkust Holland Export B.V. (hereafter Westkust) is an importer and
distributor of decorative products for flower arranging and general decoration. The partner
CV Satrya Putra Mandiri is a trading company in decorative products from Lombok.
The market in Europe for decorative products is continually changing. Buying patterns and
trends change rapidly. Therefore Westkust is forced to maintain a wide range of different
products. Westkust should broaden its product range with different ornamental products that
are not available in the present sourcing areas of Java en Sumatra. Together with CV Satrya
Putra Mandiri, Westkust has identified the eastern islands of Lombok, Sumbawa and Flores
as new sourcing areas. The inhabitants of these 3 islands have developed a large variety of
handicrafts, however to date this has not been materialised. The islands are facing difficulties
due to the geographical isolation, the lack of quality awareness and product renewal.
The aim of the project partners is to establish an organisation for sourcing of home industry
products with large contracting schemes for the handicraft and collectors industry of Lombok,
Sumbawa and Flores. The business will have branches with staff on each island to organise
the cooperation with the home industries and to collect the products and prepare these for
transport.

Results
• Result 1 : Joint venture established between applicant and partner;
• Result 2 : Facilities constructed, equipment installed and 40 staff contracted;
• Result 3 : Training of staff and home industry network established;
• Result 4 : Pilot production and business development.

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CSR aspects
The project partners will only trade in products that are environmentally sustainable. The
partners will follow CITES (Convention on International Trade in Endangered Species of Wild
Fauna and Flora).
Furthermore, Corporate Governance according to the FCGI (Forum for Corporate Governance
in Indonesia) will be implemented and sustainability will be monitored according to GRI
(Global Reporting Initiative).

Impact
Long term economic The joint venture expects to grow to a volume of
activity 150 containers per year before 2016. It is the intention of the
partners to increase the capacity in 2013 and invest an
additional EUR 500,000 to meet the future expansion.
Investments in other regions in Indonesia such as Sulawesi,
Kalimantan and Papua are also foreseen for a further
diversification of the handicraft assortment. Expected turnover
2 years after the project has been finalised is EUR 1.0 million.

Employment and At the end of the project 40 jobs will be created of which 20 at
working conditions a medium / high level. Two years after finalisation of the pilot
80 staff will be contracted.
Salaries will be 15% above minimum wages. Furthermore, staff
will receive a meal allowance, transportation fee and medical
programme.

Transfer of knowledge New for East Indonesia is knowledge at the level of the home
industries with regard to quality control, product information,
planning, chain approach and communication.

Chain effects During the project 1,200 home industries will be contracted to
produce and supply handicraft to the newly established joint
venture.

Position of women As women are front runners in the handicraft industry it is


expected that a high percentage of women will benefit from
this project.

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Indonesia

PSI09/RI/04 Fresh cut, pre-packed and safe vegetables


Convenience products connecting Indonesian
farmers to new markets

Location Bogor, West Java Indonesia

Sector Agro-industry

Applicant Hessing B.V., Zwaagdijk-Oost, The Netherlands

Local partner PT Saung Mirwan, Bogor, Indonesia

Start project 01 July 2009

End project 01 June 2011

Total budget EUR 1,110,650 (50 percent PSI contribution)

Goal of the project


The purpose of the project is to set up a processing facility for the production of 450,000 kg
fresh cut vegetables per year for the domestic market.

Summary
The applicant Hessing B.V. has existed for over 40 years and controls the whole supply chain
for fresh cut vegetables including cultivating, cutting, cleaning, mixing and seasoning to
packing and shipment. It is the policy of Hessing B.V. to administer every phase of the
supply chain in order to guarantee the best quality and food safety. The partner PT Saung
Mirwan produces flowers and vegetables. The vegetables are produced through a network of
outgrowers. Subsequently the vegetables are packed and distributed.
In Indonesia the food service market is expected to increase substantially in the next couple
of years. PT Saung Mirwan as a producer and distributor of fresh vegetables also received
ample signals from retail and catering companies that there is a need for high quality, fresh
cut and processed vegetables. However, catering for the food services' market is a highly
specialised business that needs special skills, expertise and equipment. Currently hardly any
domestic companies are able to supply the Indonesian food industry with fresh, safe and pre
packed vegetables. To service these new markets the project partners aim to set up the first
modern, large scale fresh cut vegetables factory. The processing facilities will be designed for
maximum hygiene and HACCP certification is envisaged within the project. The processing
facility will be established at the premises of the Indonesian partner near Bogor. For supply
of vegetables existing and new outgrowers will be contracted mainly in the area of Bandung.
An intensive agronomy training programme will be developed to support the outgrowers in
Good Agricultural Practices and to prepare them for GlobalGAP certification.

Results
• Result 1 : Joint venture established between applicant and partner;
• Result 2 : Facilities constructed and equipment installed;
• Result 3 : Pilot Product Market Combinations and dissemination;
• Result 4 : Training and agricultural support, certification and production target attained.

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CSR aspects
HACCP and GlobalGAP will be implemented during the project.
Because the processing of vegetables requires large quantities of water, equipment for
cleaning the water will be installed. Further, the vegetable waste will be used by surrounding
farmers for animal feed and compost.

Impact
Long term economic The joint venture expects to reach the maximum capacity of
activity 2,000 tons processed vegetables per year in 2014. In order to
increase the volume new washing, cutting and mixing
equipment is required. Furthermore, new trucks and cooling
facilities will be needed. This implies follow-up investments with
an amount of EUR 700,000, 2 years after the project.
Expected turnover 2 years after the pilot has been finalised is
EUR 2.0 million.

Employment and During the project 61 jobs will be created of which 20 jobs on
working conditions medium / higher level.
Two years after finalisation of the pilot 100 staff will be
contracted.
Salaries will be 10% above minimum wages. Furthermore, staff
will receive a medical insurance, meal allowance and pension
scheme.

Transfer of knowledge The knowledge with regard to processing of fresh cut


vegetables is new for Indonesia.

Chain effects During the project 250 outgrowers will be contracted and
trained to cultivate different kinds of crops. The joint venture
will negotiate the contracts with approximately 20 key farmers
that represent the other farmers.

Position of women At least 50% of the staff to be employed will be women.

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Indonesia

PSI09/RI/23 Indosoya Sumber Protein. A soya based processing


pilot

Location Jakarta / West Java Region

Sector Agro-industry

Applicant HOS B.V., Haarlem, The Netherlands

Local partner PT Macrotama, Jakarta, Indonesia

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,498,000 (50 percent PSI contribution)

Goal of the project


The purpose of the project is to set up a processing facility for the production of
1,240,000 kg of UHT soya milk and 666,000 kg of tofu for the domestic market.

Summary
The applicant HOS B.V. is an importer and exporter of used machinery.
The local partner PT Macrotama Binasantika is a trading company in food ingredients, meat
processing and bakery equipment.
The need for protein for human consumption in Indonesia is high and Indonesia ranks among
the countries that do not meet the required daily intake of protein per capita per day. Animal
protein from meat, dairy, eggs and fish is scarce and expensive in Indonesia. To produce
protein from animal origin is far less efficient in terms of energy, water and minerals
compared to production of soya protein. Indonesia is familiar with soya related food such as
tofu and soymilk. Soymilk can be an excellent source of protein for the population of
Indonesia. It can be produced cheaply and it may well substitute milk.
However, to date both soymilk and tofu are products of the home industries that do not
comply with hygiene and modern quality certificates. Therefore, safe and certified soy
products will be new to Indonesia and will serve modern retail, Horeca and food processors.
Indonesia uses 2.2 million tons of soya of which almost one third is produced within
Indonesia. Soya bean cultivation has been decreasing significantly due to the competitive
soya offered on the world markets.
The aim of the project partners is to set up a soya processing plant for soymilk and tofu
production using new technology like Ultra High Temperature (UHT) treatment and
pasteurization. These new technologies will lead to the production and marketing of food safe
soya beverages for low prices. In addition the project partners will stimulate the domestic
soya crop production through issuing farm contracts for direct sourcing.
A joint venture will be established between HOS B.V. (30%) and PT Macrotama Binasantika
(70%).

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Results
• Result 1 : Project inception and joint venture established;
• Result 2 : Construction and installation;
• Result 3 : Training, product pilot production preparation for certification, product
development, soya farm promotion;
• Result 4 : Pilot production and business development.

CSR aspects
Good Manufacturing Practice and HACCP will be implemented during the project which also
addresses the waste management practice and energy use.
Good Agricultural Practice for soybean cultivation is not yet defined by the Indonesian
authorities. Nevertheless, the project will assess the soybean cultivation and determine rules
for Good Agricultural Practice.
Further, CSR will be monitored and evaluated according to the Forum of Corporate
Governance in Indonesia.

Impact
Long term economic The joint venture expects to reach the maximum capacity in
activity 2015. Two years after the project the partners intend to invest
in product innovation and diversification by adding value to the
Okara (solid by product) that is initially sold to farmers as
animal feed. These investments will comprise of the
construction of auxiliary buildings and new state of the art
equipment and installations. This implies follow up investments
with an amount of EUR 800,000. Expected turnover 2 years
after the project has been finalised is EUR 2,500,000.

Employment and During the project 50 jobs will be created of which 20 jobs on
working conditions medium / higher level. Two years after finalisation of the
project 95 staff will be contracted.
Salaries will be 15% higher than official minimum as per
Indonesian law. Furthermore, staff will be provided with
support for medical insurance and care as well as meal
allowance.

Transfer of knowledge The knowledge with regard to UHT technology for soymilk and
pasteurisation technology for tofu preparation is new for
Indonesia.

Chain effects During the project 400 outgrowers will be contracted and
trained to practice sustainable soya farming. Soy bean
cultivation has been decreasing significantly in Indonesia due to
the competitive soya offered on the world markets. Therefore,
the project partners aim to revitalize regional and domestic
soya bean farming in cooperation with the Ministry of
Agriculture, Bogor Agricultural University and practical Dutch
consultants.

Position of women At least 60% of the staff to be employed will be women.

Page 206 of 290


Mongolia

PSI09/MN/01 Private University Hotel Management Institute of


Mongolia

Location Ulaanbaatar

Sector Education / Tourism

Applicant Schiphorst Holding B.V., Breda, The Netherlands

Local partner Gardi Tours Co. Ltd, Ulaanbaatar, Mongolia

Start project 01 June 2009

End project 31 May 2011

Total budget EUR 1,426,776 (50 percent PSI contribution)

Goal of the project


The foundation of a private training institute in hotel and tourism management offering a one
year college programme for students and contracted training for employees in the hotel and
tourism industry in Mongolia.

Summary
Within the proposed project Schiphorst Holding and Gardi Tours will establish a private
training institute in hotel and tourism management. The Institute will offer a one year college
programme for students and contracted training for shorter periods for employees in the
hotel and tourism industry. The Institute will consist of classroom training facilities, as well
as on-the-job training facilities in the form of limited hotel rooms, a restaurant and hotel
reception and shop. Next to the Institute a dormitory will be constructed for on-campus
students from outside Ulaanbaatar.
The training programme will be developed, implemented and monitored by INHolland
University of Applied Sciences, Department of Tourism and Recreation management, and the
Mongolian University of Science and Technology (MUST), Department of Tourism
management and Regional studies. INHolland and MUST will train the Mongolian teachers
who will teach students and hotel / tourism personnel at the Institute.
The rationale for the proposed project is the rapid growth of the tourism industry in Mongolia
combined with the current lack of adequately trained Mongolian hotel and tourism
management personnel. At the Institute Mongolian students and hotel / tourism personnel
will acquire the necessary professional skills in order to acquire management positions in one
of the existing or new (international) hotels and tourism enterprises in Mongolia. The
majority of management jobs are currently occupied by foreign personnel due to the lack of
qualified Mongolians. Through the 'upgrading' of professional skills in hotel and tourism
management, this project will improve the employment opportunities and income conditions
for Mongolian students and people working in the hotel and tourism industry and provide a
stimulus for the further development of the industry in Mongolia.

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Results
• Result 1 : Establishment of a new judicial entity between Schiphorst Holding and Gardi
Tours and partnership with INHolland and MUST;
• Result 2 : Development of educational training programmes;
• Result 3 : Selection and training of teachers and staff;
• Result 4 : Design and construction of the Institute and dormitory;
• Result 5 : Start and first year implementation of the college year and contracted
training.

CSR aspects
The project is supported by the Mongolian Ministries of Education and Tourism. The Institute
and the educational programme will be certified by the Ministry of Education.

Impact
Long term economic In the 2 years after project completion project partners expect
activity that the capacity of the Institute will be insufficient to facilitate
the growing number of students and trainees for contracted
training and they will need to look for another location in
cooperation with MUST. This will result in follow-up investments
of about EUR 600,000 for construction costs and EUR 200,000
for interior training facilities and education materials.

Employment and The Institute will employ 8 full-time Mongolian mentor and
working conditions assistant teachers, 4 part-time Mongolian / foreign visiting
lecturers and 8 Mongolian / foreign staff members. Besides
3 Mongolian guards, all are medium / high level employees. In
the second year after the project's completion the Institute will
employ 14 full-time Mongolian teachers, 7 part-time Mongolian
/ foreign visiting lecturers and 11 Mongolian / foreign staff
members, of which 3 guards. Wages are on average 20%
higher than the regular wages for similar jobs in Mongolia. This
is related to the higher workload of mentor and assistant
teachers compared to regular schools and universities. All
teachers will be given board and lodging in the city or at the
campus and a contribution in their pension and medical
insurance plan.

Transfer of knowledge The envisioned concept of vocational training in a realistic hotel


/ restaurant setting, similar to the European "hotel schools", is
completely new in Mongolia. The transfer of knowledge will
focus on understanding western expectations of the touristic
product. This aspect is new to Mongolian teachers in the field of
hotel / tourism management. After being trained by staff from
INHolland and MUST, they will in turn transfer this knowledge
to Mongolian students and hotel / tourism personnel. The
knowledge transfer will lead to an 'upgrading' of professional
skills in hotel and tourism management in Mongolia.

Chain effects Through the 'upgrading' of professional skills in hotel and


tourism management, the project will improve the employment
opportunities for Mongolian students and people working in the
hotel and tourism industry. The availability of qualified local

Page 208 of 290


hotel / tourism personnel will in turn stimulate further
development of the tourism industry in Mongolia.
It is expected that other public and private universities in
Mongolia will copy the vocational training methods. In fact, the
Mongolian Ministry of Education has already adopted a policy of
stimulating vocational training centres.

Environment The construction of the Institute will pose no environmental


threat since there is no special flora or fauna at the site in
Ulaanbaatar. The Institute will pay special attention to
responsible management regarding the environment. Hotel /
tourism managers who are trained at the Institute will influence
the decision making process regarding environmental aspects
in their own companies.

Position of women Within the workforce of teachers and staff, special attention will
be paid with respect to hiring female employees. They will have
equal salary and rights for similar positions as male employees.

Other impact Through this project INHolland and MUST will closely
collaborate, it is expected that this relation will continue after
the completion of the project.

Page 209 of 290


Nepal

PSI09/NP/21 Gandaki International

Location Kathmandu

Sector Agriculture

Applicant Honey International B.V., Almkerk, The Netherlands

Local partner Gandaki Bee Concern, Kathmandu, Nepal

Third partner De Traay B.V., Lelystad, The Netherlands

Start project 01 February 2010

End project 30 January 2013

Total budget EUR 600,000 (50 percent PSI contribution)

Goal of the project


Establishment of a long-term sustainable cooperation between Honey International and
Gandaki Bee Concern for the production and marketing of (organic) honey products (up to
280 tons per year) with a controlled supply chain from the flower to the market.

Summary
Considering the ecological and biological diversity, Nepal is recognised as one of the most
potential countries for mass scale beekeeping. It is estimated that Nepal has a potential of
producing more than 10,000 metric tons of honey, but is currently harnessing less than 15%
of its potential.
Honey International (HI) and Gandaki Bee Concern (GBC) want to develop a cooperation to
increase both quality and quantity of bee products (honey) in Nepal for local demand and
export purposes.
The partners will establish a new joint venture to process the current honey supply of GBC
according to HACCP standards and process, market and export several niche products
(organic honey, rock honey, api health products). The partners will set up a bee resource
(queen rearing) centre and a quality control laboratory. The processing facility will be in
Kathmandu and the partners will train 600 (and contract 300) small beekeepers in remote,
rural areas of Nepal. Improving the honey sector in Nepal can have a large impact on
marginalised minorities in the remote rural areas of Nepal.
Currently, Nepal cannot export honey to countries in the EU.

Results
• Result 1 : Set up joint venture and paper work;
• Result 2 : Service and training centre established, beekeepers contracted;
• Result 3 : Processing facility;
• Result 4 : Quality control laboratory;
• Result 5 : Market development, export and sales.

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CSR aspects
Collection of Rock honey is considered a cultural phenomenon of some marginalised
minorities and is done in a traditional (and hazardous) way.
The project will establish an association of rock honey hunters that will supply safety training
and equipment and educate the hunters in sustainable ways to collect rock honey. The
project will certify part of the production as organic and has a strong vision on CSR. GBC is
an active member of CSR network Nepal and reflects the 10 principles of the UN Global
Compact. In line with GBC's current policy, the joint venture will take a pro-active stance in
Human rights, labour, environment and anti-corruption issues.

Impact
Long term economic The partners intend to invest another EUR 200,000, within
activity 2 years after the project in additional beekeepers, collection
equipment, processing and packaging expansion and
marketing. This will result in more than doubling of the
turnover to EUR 265,700, 2 years after the project.

Employment and The project will create 55 low level and 15 high level jobs,
working conditions additional to the 40 current employees of GBC. Two years after
the project, this will be increased to 70 basic level and 30 high
level jobs.

Transfer of knowledge Modern beekeeping techniques (seasonal management) are


new for Bangladesh. The project will train staff in HACCP
standards, and train certain beekeepers in organic beekeeping.
In addition it will introduce queen rearing Artificial Insemination
(AI) technology.

Chain effects The project will train 600 new beekeepers and contract 300.
The increased productivity and possible export of honey will
have a positive impact on the sector.

Environment Beekeeping is an environmentally friendly activity and


pollination is essential for flora propagation. The project will
develop certified organic honey and promote sustainable
collection methods for rock honey by local bee hunters.

Position of women Sixty percent of the project's staff will be female, including
9 out of 15 medium / high level jobs.

Page 211 of 290


Nepal

PSI09/NP/22 Golmagad Hydro Project

Location Bandungrisian VDC, Doti (far western district)

Sector Energy

Applicant E & Co Bangkok Co. Ltd, Bangkok, Thailand

Local partner Manasarowar Power Pvt. Ltd, Kathmandu, Nepal

Third partner E & Co Inc., Bloomfield, USA

Start project 01 January 2010

End project 01 December 2010

Total budget EUR 543,000 (50 percent PSI contribution)

Goal of the project


Establishment of a 580 kW hydro power plant to feed into the national grid, and (improved)
irrigation to 125 ha of farm land.

Summary
Despite having a huge potential in hydro energy, the hydro sector still remains underinvested
and underdeveloped in Nepal. Nepal's electrification rate is a mere 40% and even this 40%
has to bear long hours of power outages every week. E & Co Bangkok Co. Ltd aims to invest
in Manasarowar Power to set up a small scale hydro power plant that innovatively combines
electricity generation with improved irrigation.
The site is located in a remote and poor, rural region, near Doti in the Far Western District of
Nepal. The project uniquely utilises an existing water transport canal and will establish
irrigation facilities for the neighbouring farmers as part of the water discharge of the
electricity plant.

Results
• Result 1 : Cooperation formalised;
• Result 2 : Civil works and canal repair and upgrading;
• Result 3 : Powerhouse installed;
• Result 4 : Staff trained;
• Result 5 : Hydro power station operational, first sales.

CSR aspects
As a major enterprise in the area, the local partner is keenly aware of its CSR. The company
expects to be involved in boosting agricultural output of the area by increased use of the
available water. It will use its technical expertise and knowledge and contacts to assist the
local farmers to produce and market their produce.
The project will also be involved in supporting the local community in social and
environmental development aspects. Having worked for GTZ, the local partner is familiar
with best practice in terms of maximizing developmental, social and environmental benefits
of hydro projects.

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Impact
Long term economic The nature of hydropower is such that the output of any
activity individual project will remain more or less the same throughout
its life. As such, Golmagad project will not increase its output
over the years. However, the company is undertaking other
feasibility studies for which PPAs will be applied for from NEA at
a later date. This will be done with Manasarowar Powers or
other partners as deemed appropriate. Some of the revenues
generated from this project will be used for the development of
other hydro projects in the future. E & Co Bangkok Co. Ltd
expects to invest in other hydro projects that will be developed
by the local partner in the future. Depending on the feasibility
studies, the follow up investments range from EUR 500,000 to
EUR 5.0 million.

Employment and The project will create 10 jobs. Four will be at low level-
working conditions labourers, guards and general handymen. Three will be higher
level technicians who will operate and run the system and
one administrative level staff. Two will be managerial and
engineering and to provide the overall management and
technical guidance.

The yardstick for wages and benefits will be that of NEA, the
national utility, whose pay scale is much higher than the
national average. In additional the employees will get bonuses
based on the profits earned and performance related bonuses.
On average the employees' package will be 50 to 100% more
than that of an average private sector employee. Other benefits
will include health and accident insurance, travel and housing
benefits.

Transfer of knowledge Most of the skill and knowledge required is available in Nepal,
but not locally. Specific proprietary knowledge will be made
available from the equipment manufacturers.

Chain effects Once the power plant starts operating, water will be available
continuously which should enable the farmers to diversify their
crops and to increase their planting of cash crops thus leading
to increased income. An additional 50 ha of land will get water
for irrigation. The presence of a technologically competent
organisation established in the locality will also provide
additional source of information and support for other
entrepreneurial activities which the water users and others may
wish to establish.

Although there are many opportunities, the hydro sector still


remains under-invested and underdeveloped in Nepal. E & Co
Bangkok Co. Ltd believes that this opportunity will help it break
into this market and create further investment opportunities in
the future, by promoting Independent Power Producers (IPPs)
to help bring a more diversified and stable supply of electricity
on a national level.

Page 213 of 290


Environment The ecological / environmental impact of small-scale micro
hydro of this kind is minimal. In addition, this project will use
an already existing irrigation canal constructed by the Irrigation
Department 15 years ago – so the impact of this facility is well
known in the area.
Small scale hydro projects do not produce any carbon dioxide,
sulphur dioxide, nitrous oxides and there are no methane
emissions because it does not involve any inundation and
flooding of vegetation.

Position of women Approximately 20% of the work force will consist of women i.e.
out of 10 employees 2 will be women. One of the women will
work as the administrative staff and the other is expected to
work at the project site as a lower level staff.

Page 214 of 290


The Palestinian Authority (PSI Plus)

PSIP09/OT/21 Fair Trade organic ISO 22000 compliant olive


processing for export in Jenin, Palestine

Location Jenin

Sector Agriculture

Applicant Dr. Bronner's Magic Soap Inc., Escondido − California, USA

Local partner Canaan Co., Jenin, Palestine

Third partner Zaytoun Common Interest Company, London, United Kingdom

Start project 01 October 2009

End project 31 December 2011

Total budget EUR 1,499,993 (60 percent PSI contribution)

Goal of the project


Annual production of 500 tons of fair trade organic olive oil and 30 tons of fair trade and
organic pickled olives for the North American and European market.

Summary
The project joint venture 'Canaan Processing' will establish a processing line to bottle Fair
Trade organic olive oil and pickled olives according to ISO 22000 standards. Without the
ISO standards, it is not possible to access the international market beyond bio and solidarity
shops. The processing unit will be in Jenin, Palestine. The Applicant company is Dr. Bronner's
Magic Soaps Inc. from the USA. The local partner, Canaan Co., already has an extensive
network of small farmers that produce organic and fair trade olive oil. The third partner,
Zaytoun Common Interest Company from the UK, will be responsible for developing the sales
to the European supermarkets. The project will train 700 Palestinian small holder farmers in
ISO 22000 (including HACCP) compliant olive production and processing and will ensure that
they will maintain access to the North American and European Market.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Building prepared and equipment installed;
• Result 3 : Employment and operational training;
• Result 4 : Training for certification and successful test run;
• Result 5 : ISO 22000 certification and commercial production.

CSR aspects
For Canaan's products, certifications for fair trade and organic are essential. Canaan is very
active promoting and supporting training and certification of farmers of both fair trade and
organic. These standards will also be incorporated in the ISO monitoring and certification. In
addition, the joint venture will guarantee good working conditions and security protocols.
The joint venture will be a certified fair trade organisation.

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Impact
Long term economic The partners envisage additional investments in the joint
activity venture of EUR 2 to 3 million, increasing production capacity
and training an additional 1,300 farmers. The turnover is
expected to amount to EUR 8 million by that time.

Employment and The project will create 22 full time jobs. Twelve medium / high
working conditions level and 10 low level. Additionally, 40 seasonal jobs
(5 months) will be created. The salaries will be 25% above the
average market salaries (the Palestinian Authority does not
oblige a minimum wage). These jobs are additional to the
27 full timers and 40 seasonal workers that currently work for
Canaan, whose jobs will be secured. ISO 22000 and HACCP
criteria will require good working conditions.

Transfer of knowledge The certifications for ISO 22000 and HACCP are new for
Palestine.

Chain effects At least 4 companies will benefit continuously as suppliers to


the facility.
In additional approximately 1,000 farmers will deliver olives
and oil to the new joint venture. Farmer groups will be
strengthened and local presses will be brought to ISO 22000,
fair trade and organic standards.

Environment Production of organic olives is per definition not harmful for the
environment. Given the dry climate and water shortage in
Palestine. The washing water is reused for several batches,
reducing water usage to 60 litres per ton for oil and 100 litres
per ton for table olives. As the harvest is in the rainy season,
water availability is not problematic.

Position of women Canaan is very active in promoting gender equality, which is


very uncommon in the agro industry in Palestine. Women will
be recruited for 40% of the newly created full time jobs. The
seasonal workers are all female.

Other impact The project is strongly embedded in the local society. Canaan's
involvement in and drive behind the Palestinian Fair Trade
Association will positively impact many small farmers in the
West Bank.

Page 216 of 290


Thailand

PSI09/TH/01 Development, manufacturing and marketing of


high-tech cryogenic equipment

Location Pathumthani

Sector Transport industry

Applicant Rota Holding B.V., Nijkerk, The Netherlands

Local partner Cryotech Company Ltd, Pathumthani, Thailand

Start project 01 July 2009

End project 01 July 2011

Total budget EUR 1,495,034 (50 percent PSI contribution)

Goal of the project


The goal of this project is to set up a pilot project for the design and manufacturing of high-
quality cryogenic equipment with a capacity of 50 cryogenic units per year in Thailand.

Summary
The project partners aim to set up a production facility to produce internationally certified
cryogenic pressure vessels and equipment for the ASEAN market in Thailand. These products
have to meet high international quality standards and require substantial engineering and
production skills. A substantial training programme is therefore envisaged. Rota Holding B.V.
will bring in both technological design and commercial added value to enable Cryotech to
update and diversify its product range and to improve its international marketing skills. The
project will create 25 new jobs and will train 60 employees (including the already existing
employees at Cryotech).

Results
• Result 1 : Inception phase, set up of joint venture;
• Result 2 : Delivery and installation of hardware and technical assistance;
• Result 3 : Local training programme and start of production.

CSR aspects
The partners want to comply with all relevant standards concerning working conditions and
quality systems (IMO code, ISO 9001:2000, A.S.M.E. and PED 97/23/EC) externally audited.
The project will also install an active waste management system. The partners will at least
pay double minimum wage and will provide all necessary protective clothing and devises as
will be stated in the health and safety programme in the project. In addition, the partners
will provide social facilities such as sponsored meals and educational programmes.

Page 217 of 290


Impact
Long term economic The partners plan to invest another EUR 1.0 million in the
activity expansion of the production location by acquiring the adjacent
land to be able to extend the current production facility. This
will increase the expected turnover with 80% to
EUR 4.5 million.

Employment and During the project, 25 new jobs will be created of which
working conditions 10 medium / high level. Two years later this will increase to
60 new jobs of which 15 medium / high level. The wages will
be at least 50% above the minimum wage.

Transfer of knowledge Training will be an important part of the project focussing on


design (using 3-D software), welding, quality control (weld
rejection rate of less than 3%), safety and work environment
and management. The comparative level that will be taught is
the equivalent of the Dutch HTS.

Chain effects More than 95% of all raw materials and inputs will be sourced
from local Thai companies. As such, the project may well
generate indirect employment among these companies. Due to
the high demands set by international production standards on
material quality, suppliers will be educated by the project.
Together with the supplier, the partners will set up procedures
to ensure a reduction of non-conformity. Suppliers will also be
audited, so that lower rejection rates can be obtained.

Environment The project will have a neutral impact on the environment.


Strict waste management will be observed. Steel and
components will be recycled where possible. Focusing on
energy efficiency and waste minimisation is an active policy at
Rota Holding B.V. to benefit the environment and to decrease
production costs.

Position of women The workforce will consist of 20% women (engineering,


planning, design, quality control and support).

Page 218 of 290


Thailand

PSI09/TH/02 Tropical Shallot Planting Material

Location Chiang Mai

Sector Agriculture

Applicant De Groot en Slot Allium Beheer B.V., Heerhugowaard,


The Netherlands

Local partner D.A.T.T. Co. Ltd, Chiang Mai, Thailand

Start project 01 August 2009

End project 30 July 2011

Total budget EUR 1,449,000 (50 percent PSI contribution)

Goal of the project


To establish a facility for the production of 1,950 tons of shallots bulbs (F1) per year. The
facility will include a Primary Production Site and a Demonstration and Training Farm.

Summary
The Dutch applicant De Groot en Slot Allium Beheer B.V. (DGS) is worldwide probably the
only company that produces and sells shallot seed. Furthermore, it supports its worldwide
clients by providing technical assistance bringing together shallot producers and buyers /
users, and by launching commercial activities to promote the use of shallots. DGS has
developed shallot seed from local varieties found in Thailand.

In the project, DGS will form a joint venture with the Thai company D.A.T.T. Co. Ltd (DATT)
to introduce the use of clean shallot bulbs derived from seed to raise the crop yield by 35 to
50%. To accomplish this, the joint venture will set up a Primary Production Site (PPS) and
Demonstration and Training Farm (DTF). At the PPS shallot seed supplied by DGS will be
used to grow clean shallot bulbs (F0). The F0 bulbs will be propagated by dedicated growers,
to produce a clean F1 generation that will then be sold to farmers to produce shallots for
consumption (F2). At the DTF, dedicated F0/F1 growers and those that will use the F1
material will be trained to ensure an optimal benefit for using these clean shallots. The
trained contract growers (30) and outgrowers (225 during the pilot project) will be
stimulated to organise themselves into a cooperation, allowing the joint venture to provide
continuous education and materials, including agricultural machines (buy, lease, or rental).

Results
• Result 1 : Establishment of joint venture and obtaining all required permits;
• Result 2 : Recruitment and training;
• Result 3 : Set up of building facilities and installation of hardware;
• Result 4 : Implementation of cultivation cycles;
• Result 5 : Promotion and sales.

Page 219 of 290


CSR aspects
The joint venture will implement a CSR policy that is similar to the CSR-policy of DATT. The
joint venture will only hire personnel from 18 years and older and all employees will be
contracted. The CSR policy will include topics on labour standards, personnel policy, health
and safety, environment and food safety (GlobalGAP, Thai-GAP and Thai-GMP and HACCP
certification) rights of local population, chain responsibility, human rights, corruption and
Corporate Social Involvement.

Impact
Long term economic Follow-up investments are planned at EUR 600,000 and include
activity expansion of the Primary Production Site (PPS) and
construction of additional buildings and facilities (drying,
storage and office space). This will increase the expected
turnover to EUR 3.8 million. The project partners intent to
reach 50% market share in 2019.

Employment and The project will create 31 new jobs including 16 medium / high
working conditions level jobs. In addition, the project will include 30 contract
growers and 225 outgrowers. Two years after the realisation of
the pilot project, this will increase to 75 jobs (including 30
medium / high level positions), 70 contract growers and
800 outgrowers. The employees are paid at least 10% higher
wages compared to the market. The joint venture will ensure
that the farmers will receive a higher price for their superior
quality crop than they are currently receiving for their shallots.

Transfer of knowledge The project will train 15 basic level employees and 16 medium
/ high level employees. In addition, 30 contract growers will be
trained and 225 outgrowers.

Chain effects The project includes both contract farmers and outgrowers. In
addition, the farmers will be stimulated to organise themselves
into cooperations.

Environment The project will have a neutral-positive effect on the


environment. As healthier starting material will be used for
growing shallot crops, there will be less need for fertilizers and
pesticides to produce high harvest yields of good quality. In
addition, the F0/F1 planting material will be produced conform
GlobalGAP requirements.

Position of women Most of the joint venture employees will be female including
1 woman at the higher management positions (out of 3).

Other impact It is foreseen that 10% of the wage costs will be put into
special CSR projects. The initial idea is to use this to fund a
project that will give young, promising people the chance to
receive a scholarship for the University of Agriculture (MAEJO)
in Chiang Mai.

Page 220 of 290


Thailand

PSI09/TH/21 Production of vacuum over dried HVP's and reaction


flavours in Thailand

Location Samutprakarn

Sector Agro-industry

Applicant Exter B.V., Zaandam, The Netherlands

Local partner Thai Theparos, Samutprakarn, Thailand

Start project 01 January 2009

End project 01 August 2011

Total budget EUR 1,133,402 (50 percent PSI contribution)

Goal of the project


The goal of this project is to establish a production facility for hydrolyzed vegetable protein
(HVP) and reaction flavours in Thailand.

Summary
As a result of economic growth and rising purchasing power in Southeast Asia, the demand
for processed food is on the rise. An important input for processed food items, such as
ready-to-eat meals, snacks, soups and sauces, is hydrolyzed vegetable protein (HVP), a
flavour enhancer. In order to benefit from this business opportunity, Dutch company Exter
and local company Thai Theparos wish to establish a modern production facility for vacuum
oven dried HVP's and reaction flavours on the premises of the local partner in Samutprakarn
Province. Exter is an independent, privately owned producer of flavourings for the processed
food industry. Thai Theparos produces seasoning products, such as sauces and bouillons,
mainly for the Thai market. Under a joint venture these partners will produce a range of HVP
products and reaction flavours that will be sold to the food industry in Thailand and abroad.
The project introduces new technologies for the production of these items to Thailand.
Furthermore, it offers better and higher quality ingredients to the fast-growing food industry
in Thailand, providing them with a better market position and improved export possibilities.

Results
• Result 1 : Establishment of joint venture;
• Result 2 : Production area built;
• Result 3 : Installation of hardware;
• Result 4 : Hardware tested, personnel hired and trained;
• Result 5 : Production and Business development.

CSR aspects
Within the project, a Human Resources Policy will be developed and implemented. The HRM
policy will cover transport, meals, bonuses, medical arrangements and employee safety.
HACCP and ISO 9002 certifications will be obtained to ensure food safety. An Environmental
Impact Assessment will be executed before the production facility will be established.

Page 221 of 290


Impact
Long term economic The planned follow-up investments in the 2 years after project
activity completion are comprehensive. These investments consist of a
doubling of capacity of evaporation equipment and ovens. As a
result of these investments in capacity expansion, the expected
turnover in the second year after finalisation will increase
significantly.

Employment and The project will create 15 direct jobs. This number will grow to
working conditions 23 in the second year after the project. Four of these jobs are
medium / high level. The remaining 11 positions are low level
production employees. The joint venture's salaries will be at
least 33% higher than the applicable minimum wage.
Furthermore, partners will develop an HRM policy that includes
transportation, pension fund, health care and several
performance related benefits.

Transfer of knowledge The project introduces knowledge and technology to the


country, since industrial production of reaction flavours is
completely new to Thailand.

Chain effects Chain effects are concentrated forward in the chain. The
increased availability of quality food flavours will benefit the
growing food processing sector in Thailand, since it will enable
the industry to develop innovative products and improve
competitiveness in relation to multinational food companies.
Furthermore the higher quality produce will enable Thai
processed foods producers to market their products on Western
markets.

Environment An Environmental Impact Assessment will be performed before


construction of the production facility will commence.
Production processes of the facility have a neutral impact on
the environment.

Position of women No specific measures to improve the position of women will be


taken.

Page 222 of 290


Vietnam

PSI09/VN/01 Pilot production of high value added chocolate


decorations for export

Location Dong Nai

Sector Agro-industry

Applicant Dobla Beheer B.V., Heerhugowaard, The Netherlands

Local partner BO NI VA Co. Ltd, Ho Chi Minh City, Vietnam

Start project 15 July 2009

End project 15 August 2011

Total budget EUR 1,497,118 (50 percent PSI contribution)

Goal of the project


To establish a HACCP, ISO 14001 and ISO 9001:2000 certified manufacturing facility for the
production of 28 containers of high value added hand-made special designed semi finished
chocolate products and chocolate decorations for export.

Summary
The Dutch applicant Dobla B.V. produces and sells chocolate decorations in over 50 countries
worldwide. Dobla wants to establish a production facility for the production of its customer
made special designed semi finished chocolate products and chocolate decorations for the
upper-high market segment for exports. Applicant Dobla will set up a joint venture with the
Vietnamese chocolate producer (bonbons) Boniva Ltd. The project will produce 2 sorts of
products:
1. Products of Dobla's Chef's Collection (Twist, Rio and Tube which are handmade customer
made and special designed semi finished chocolate products & chocolate decorations for
the upper-high market segment);
2. Specialty hand-made chocolate cups for the upper-high market segment for the USA
market (Tulip).
The project will include modification of a building for the production facility, including office,
storage and production line as well as a training facility. The facility will acquire certification
on HACCP, ISO 14001 and ISO 9001:2000. Forty people will be contracted and trained. In
addition, at least 7 subcontractors will be connected to the project.

Results
• Result 1 : Inception and set up of joint venture;
• Result 2 : Modification of building, storage office & facilities including hardware;
• Result 3 : Recruitment and training of staff;
• Result 4 : Pilot production;
• Result 5 : Bankable business plan & certification.

Page 223 of 290


CSR aspects
The project will acquire HACCP certification as well as ISO 14001 and ISO 9001:2000
certification. In addition, Dutch working standards as used by Dobla in the Netherlands will
also be implemented in Vietnam.

Impact
Long term economic In the 2 years following the project's completion, Dobla and
activity Boniva will further invest in the expansion of the production
capacity (building, production lines, expansion of the
assortment, cooling facility, storage and transport facility).

Employment and The project will create 40 new jobs of which 6 medium / high
working conditions level and will include 7 subcontractors. Two years later, this will
increase to 53 jobs and 15 subcontractors.

Transfer of knowledge The project will train 34 employees on a basic level and
6 employees on a medium / high level.

Chain effects The project will have a positive effect on local companies in the
field of transport, packaging materials, import / export and
trade.

Environment The project will have a neutral environmental effect and will
include an environmental impact assessment.

Position of women In total 60% of the workforce will consist of women.

Page 224 of 290


Vietnam

PSI09/VN/02 BRC certified rice vermicelli production with


outgrowers in Southern Vietnam

Location My Phuoc Industrial Park (MPIP), Binh Duong Province

Sector Agro-industry

Applicant Sukmono B.V., Oss, The Netherlands

Local partner Nhat Nam Phuong Ltd and North Wind Hotel Ltd,
Ho Chi Minh City, Vietnam

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,498,790 (50 percent PSI contribution)

Goal of the project


To establish a BRC, ISO 14001 and ISO 9001:2000 certified dried rice vermicelli production
facility, with a capacity of 2,160 tons of rice vermicelli per year for both industrial use and
the retail sector for export.

Summary
The Dutch applicant Sukomono B.V. produces and sells traditional ready-made Asian meals
for the European market and intends to establish a rice vermicelli production facility near
HCM City, sourcing rice both from rice processors and outgrowers within the region. For this
purpose a joint venture will be set up with the Vietnamese packing company Viet Phat JST
Co. Ltd and the HCM City based hotel North Wind.
The project will include a production facility with processing equipment and a water
treatment unit. The project will acquire certification on BRC, ISO 14001 and ISO 9001:2000.
A number of 104 staff will be employed and trained in different aspects related to production,
safety, HIV / AIDS prevention and quality management. In addition, 50 rice growers will be
trained in applying Best Management Practices (BMP). The partners will enter into a long
term buying arrangement with the outgrowers for the supply of rice.

Results
• Result 1 : Business structure established;
• Result 2 : Production facilities operational;
• Result 3 : Staff recruited and trained;
• Result 4 : Outgrowers trained;
• Result 5 : Business development & certification.

Page 225 of 290


CSR aspects
The project will acquire BRC certification (handling and storage of food products) as well as
ISO 14000 and ISO 9001:2000 certification. In addition, the partners will provide staff with
above-average employment contracts in which staff are remunerated for at least 120% of
the prevailing wages. The partners will provide excellent working conditions as well as
medical insurance to staff. Adjacent to the factory, the project partners will build housing
facilities (dormitories) for factory employees.

Impact
Long term economic The project partners plan to further invest in the increase of
activity the production capacity and in product diversification.

Employment and The project will create 104 new jobs of which 22 medium / high
working conditions level and will involve 50 outgrowers. Two years later, this will
increase to 164 new jobs of which 42 medium / high level and
will include 600 outgrowers.

Transfer of knowledge The project will train 82 low level employees and 22 medium /
high level employees. In addition, at least 50 outgrowers will
be trained in BMP.

Chain effects During the project period, the rice will be sourced from rice
processing companies and from outgrowers. Hence, rice
suppliers will benefit from the project in terms of supply to the
joint venture. In case the rice is directly sourced from the
outgrowers, the joint venture will outsource the washing and
sorting to the rice processing companies.

Environment The impact on the environment will be positive as the project


will introduce energy saving measures and modern water
recycling and filtering technologies. In addition, the joint
venture will comply with ISO 14001 certification.

Position of women The workforce will consist of 25% women.

Page 226 of 290


Vietnam

PSI09/VN/21 Saigon Port Training Centre

Location Ho Chi Minh City

Sector Education

Applicant STC B.V., Rotterdam, The Netherlands

Local partner Saigon New Port Company, Ho Chi Minh City, Vietnam

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,395,000 (50 percent PSI contribution)

Goal of the project


The goals of the project is to establish, build and operate a port training centre for
professional port and transport managers, supervisors and workers to increase the efficiency
in all Vietnamese ports. Within the scope of the project in total 240 students will be trained
at the centre.

Summary
The project will establish a training centre in Ho Chi Minh City for the port- and transport
market: despite the need for human resource development and great demand for skilled
workers, such an institute, which could contribute to the upgrading of the port and transport
sector, still does not exist in Vietnam.
The centre will develop a port training programme for the transport chain, local trainers will
be trained and the first graduated managers and workers certified. A number of 8 staff will
be employed and trained.
For this purpose a Joint Stock Company (JSC), registered with the Ministry of Planning and
Investment, will be set up between Dutch Applicant STC and the local Vietnamese container
terminal partner, Saigon New Port Company. This JSC will closely collaborate with the
Vietnamese University of Transport HCMCity (UT-HCMC).

Results
• Result 1 : Inception;
• Result 2 : Procurement of building and equipment;
• Result 3 : Implementation;
• Result 4 : Execution.

CSR aspects
Dutch and local standards concerning CSR will be implemented, amongst others combating
corruption, wage dumping and excluding child labour. Also, STC is an IIP (Investor in People)
certified company since 2003. This standard is a business improvement tool designed to
advance an organisation's performance through its people and this is what the project
partners also envisage for the training centre.

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Impact
Long term economic Within 2 years after completion of the project, follow-up
activity investments will be made consisting of a crane simulator,
computer-based training programmes, the set-up of a
dangerous-goods laboratory and a safety training centre. The
follow-up investments will result in 17 jobs.

Employment and At the end of the project, Saigon Port Training Centre will full-
working conditions time employ 8 employees of which 4 at medium / high level.
Income levels of the planned Saigon Port Training Centre staff
will at least be in accordance with regular Vietnamese
compensation levels for staff and instructors of training
centres.

Transfer of knowledge The knowledge transfer of the port and transport chain and the
operational skills training is new to Vietnam. Vietnamese
instructors will for the first time be exposed to didactic
approaches and tools in competency based education, in the
use of simulators, in the process definition of logistic problems,
in the development and design of scenario's for the logistic
chain. The centre could also claim a position as service centre
for vocational training and train-the-trainer programmes.

Chain effects In the medium and long term, the national port, transport and
logistics companies (state owned and private) will directly
benefit from the project. Secondly, foreign investors will be
supported through the availability of well-trained staff.

By upgrading people's knowledge and skills at managerial,


supervisory and operational level, the efficiency of the
transport chain will increase. At the same time this shall
positively affect the environmental, personal and financial risks.
There will be better chances for a career and employment in
the ports / on terminals and / or the Vietnamese transport
industry.

Environment The increase in expertise and knowledge on operations and


terminals, and specific training activities aimed at the increase
of safe and secure operations, will, but in the long term, have a
positive effect on the local awareness and handling of the
environment.

Position of women For this project, the project partners are convinced that the
participation of women at operational and managerial level in
the transport and logistics industry can be increased. This
conviction motivated the STC-Group to start the first 100%
women groups for the maritime sector next academic year.

Other impact The availability of international expertise and experience


through the support of the STC will act as a "show-case" for
transport and logistics education and training, and will increase
general education and knowledge levels of local people.

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Yemen

PSI09/YE/01 Ancient traditions with a new technology

Location Jazair street, Sana'a

Sector Food processing

Applicant Machinehandel Lekkerkerker B.V., Lopik, The Netherlands

Local partner Imdad Trading Ltd, Sana'a, Yemen

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


Commercial production of traditional Yemeni sauces (Yemeni chilly sauce and Shafout) in
pasteurised consumer packages for the local market with a total capacity of 20,000 kg per
day.

Summary
The project partners want to establish a joint venture for food processing in Sana'a for the
production of 2 traditional Yemeni sauces: Yemeni chilli sauce and Shafout premix. Shafout is
a yoghurt based sauce, with a variety of green herbs. The premix has to be mixed with
yoghurt to yield Shafout. The chilli sauce is ready made. The applicant, Machinehandel
Lekkerkerker B.V., specialises in the marketing and sales of food processing machines. The
local partner Imdad Trading is part of a group that owns several restaurants and is active in
marketing and advertising.

Results
• Result 1 : Establishment of joint venture and factory design and engineering;
• Result 2 : Factory competed and employees trained;
• Result 3 : Contract farmers trained;
• Result 4 : Promotion campaign and commercial production.

CSR aspects
The factory will have strict regulation against qat consumption (like the other companies of
the Imdad group). To enable female employees, the factory layout will comprise separate
women quarters.

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Impact
Long term economic The follow-up investments of EUR 2.0 million consist of
activity increasing the production capacity to support the expected
growth and diversification into the production of yoghurt to
produce ready made Shafout. (Note that Lekkerkerker has
expertise in dairy processing too.) This will increase the joint
venture's turnover to EUR 6.2 million in the second year after
the project.

Employment and At the end of the project 39 permanent jobs will be created, of
working conditions which 10 on a medium / high level. This will increase to 70
(25 medium / high) 2 years later. The joint venture will pay at
least twice the local minimum wage (2 x USD 100 per month),
additional to transportation costs, health insurance and duty
meals.

Transfer of knowledge The project will introduce food processing techniques and
general manufacturing practices on food safety and hygiene.
For the contract farmers new seeds and farming techniques will
be introduced.

Chain effects The project will have a positive impact on 100 contractors in
the value chain. Mainly suppliers (e.g. packaging material,
ingredients), transporters and distributors (wholesalers,
retailers).

Environment As water is a scarce resource in Yemen, the joint venture is not


allowed to drill for water on the site. Therefore, it has to rely on
the supply of water by trucks. To minimise the water usage (for
washing) the process will filter the water and recycle it during
the day. As part of the registration procedure, all new
companies have to carry out an environmental impact
assessment.

Position of women Although it is gradually changing, it is still not common for


Yemeni women to work outside the house. Hence, the project
will have a positive effect on the position of women, as it will
employ 50% women, also in the medium / high level of
finance, accounting and the lab.

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Central and
Eastern Europe

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Page 232 of 290
Bosnia and Herzegovina

PSI09/BA/01 Innovative repair / assembly centre for return and


overstock (consumer-household) goods

Location Orasje, District Brcko

Sector Services

Applicant Tronex B.V., Oldenzaal, The Netherlands

Local partner Tehno Mag d.o.o., Orasje, Bosnia and Herzegovina

Start project 01 July 2009

End project 31 December 2011

Total budget EUR 829,500 (50 percent PSI contribution)

Goal of the project


To establish a repair centre for return and overstock goods in Orasje, Bosnia and
Herzegovina.

Summary
Applicant is Tronex B.V., established in Oldenzaal, the Netherlands and in Bad Bentheim,
Germany. Tronex is a trading company in return and overstock electronic consumer goods.
In addition, it repairs (refurbishes) electronic goods that have either been damaged in
transport (also if only the packaging has been damaged) or have defaults by fabrication or
operation. The goods are not second hand. Partner is Tehno Mag d.o.o, established in Orasje,
Bosnia and Herzegovina. Tehno Mag imports and sells electronic goods (white and brown
goods) to retailers in Bosnia and Herzegovina.
Over a year ago, the idea emerged to start a repair centre for return and overstock goods in
Bosnia and Herzegovina. End products are to be sold in Bosnia and Herzegovina, Croatia and
Serbia, as partners perceive local market potential. This potential is to be realized within the
framework of a new joint venture which will be localized in Orasje, Bosnia and Herzegovina,
close to the boarders with Croatia and Serbia.
Goods will be supplied through Tronex in the Netherlands, and repaired in Bosnia and
Herzegovina. The new joint venture will make use of existing sales channels of the partners
in the Balkans and is also looking to expand this customer base. Offices, reparation facility
and distribution centre for the new activity are expected to take up about 1,300 m2. This
space is already owned by the local partner.

Results
• Result 1 : Establishment of the joint venture, signing of contracts, finalized factory
design and training programme;
• Result 2 : Construction / renovation of the building, installation of the equipment and
start of training in the Netherlands;
• Result 3 : Recruitment and training of new personnel, development of CSR, marketing
and bankable business plan;
• Result 4 : Joint venture fully operational and turnover in 2011.

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CSR aspects
Of goods that cannot be repaired, all potentially useful spare parts will be stripped and
stored. About 5 to 10% of all inputs is estimated to be irreparable. Irreparable parts are to
be collected by certified companies with which the new joint venture wants to enter into a
contract. The new joint venture will adhere to ROHS standards (Restriction of Hazardous
Materials), as all products sold to the joint venture originate through Tronex which is ROHS
certified.

Impact
Long term economic Two years after the pilot is finalized, a follow-up investment is
activity foreseen, almost doubling turnover achieved by then,. Partners
will continue to do business with each other after the
completion of the project as Tronex will remain the new joint
venture's principal supplier.

Employment and The number of jobs created when the project is completed is
working conditions 22, of which 6 low, and 16 medium / high levelled employees.
Two years after completion of the project, the total number
amounts to 29, of which 9 low and 20 medium / high levelled
employees.
Salaries paid will at least be a substantial percentage above
minimum wages in Bosnia and Herzegovina. Pensions and
medical insurance will be provided for all staff. Employees will
be provided with company clothing and receive a company
meal per day.

Transfer of knowledge The knowledge transfer that focuses on repair is not entirely
new to Bosnia and Herzegovina, as repair centres do already
exist. However, the knowledge transfer will be of a
sophisticated kind, and requires a higher level of analysis.
Repair staff will be highly skilled. The transfer of knowledge on
this level is likely to be unique in Bosnia and Herzegovina.

Chain effects Principal suppliers of inputs will be Tronex as well as another


business partner in the Netherlands. The number of structural
suppliers in Bosnia and Herzegovina or in the neighbouring
countries will most likely consist of 4 companies, representing a
transport company, a producer of boxes, a recycling company
and a cleaning company.

Position of women The manager of the new joint venture will be a 29 years old
female who was a past intern at Tronex. Since then, she has
been working for Tronex on a freelance basis as a sales agent
in the Balkans.
In addition, the workforce is to exist of 3 women that are all
medium-level employees.

Other impact Business relations will be increased and formed across the
boarders of a region formerly struck by war among ethnicities.

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Bosnia and Herzegovina

PSI09/BA/03 Plastic overmoulding technology

Location Gracanica

Sector Chemical industry / Plastics

Applicant Bema Beheer B.V., Zierikzee, The Netherlands

Local partner Bema BA d.o.o., Gracanica, Bosnia and Herzegovina

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 452,500 (50 percent PSI contribution)

Goal of the project


The production and export of newly developed spacers for sales to the European construction
sector.

Summary
In 2003, Bema Beheer B.V. and local partner Ambra d.o.o. founded Bema BA in Gracanica,
Bosnia and Herzegovina with support of the former PSO-programme. Bema BA produces
injection moulded plastics.
Currently Bema Beheer wants to team up with the local company Bema BA to produce
spacers for the building sector. Spacers are devices that connect prefabricated concrete
walls. The spacers that are to be produced would consist of a new combination of materials.
The resulting product will be more sophisticated in shape, material usage and measurements
than existing spacers. In addition, the mould for making this spacer will be constructed by
Bema BA itself, too. These efforts will require the transfer of knowledge to Bosnia and
Herzegovina. This knowledge will largely be transferred onto women as unemployment
among women is particularly high in Bosnia and Herzegovina.

Results
• Result 1 : Technology transfer on mould making to produce the mould and further
elaboration of the project plan;
• Result 2 : Training of management, hardware installation, hiring and training new
employees and drawing up the production plan;
• Result 3 : Technology transfer on plastic injection overmoulding to produce the spacer,
further hardware installation and start of production;
• Result 4 : Technology transfer on plastic injection overmoulding to produce the spacer,
last hardware installation and further increase of production.

CSR aspects
The applicant and local partner will impose regulations for employee safety and provide for
company clothing. Water which is used to cool machines will be reused by running it through
the heating system of the production facility and offices attached. Working conditions similar
to those that are valid in the Netherlands (ARBO a.o.) will be implemented. The partners

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commit to strictly apply a non-discrimination policy (gender, race, ethnic background etc),
and have declared to strongly reject corruption. Partners will apply a separate waste
collection policy. Plastics however can be recycled and reused in the own factory and the
steel tubes will be supplied ready for use. Bema BA will obtain the ISO 9001 certificate for
this new production facility.

Impact
Long term economic Two years after the end of the project, a follow-up investment
activity will be made. This investment will be used to finance the
expansion of the existing spacer line.

Employment and The number of new personnel hired at project completion is 11,
working conditions of whom 9 low and 2 medium-high jobs. Two years after the
completion of the project, this number is expected to rise to
22, consisting of 18 low and 4 medium / high jobs. Salaries will
be paid substantially above the local minimum. Bema BA will
cover a meal per shift per employee. All employees will receive
health insurance.

Transfer of knowledge The technology transfer on sophisticated mould making and


more complex injection overmoulding for the purpose of
producing spacers is new to Bosnia and Herzegovina.
The technology upgrade will generate knowledge and skills that
can be employed to produce other sophisticated injection
moulded products in the future in Bosnia and Herzegovina.

Chain effects Expectedly, there will be 6 suppliers in Bosnia and Herzegovina


that will structurally benefit from the additional activity in Bema
BA which would be generated by this project. These include
suppliers of polypropylene granulate, steel, steel calibration,
pallets, cardboard boxes and a transporter.

Environment The new production facility will make reuse of cooling water,
using it to provide central heating. All plastics are recycled, so
there will not be any polypropylene waste. Apart from this, the
impact on the environment is neutral.

Position of women The partners want to make sure that women have equal
opportunities as men within their company. Because of
relatively higher unemployment among women in the region,
they would like to hire at least 6 women and to train these as
operators, with women at least making up for 55% of new staff
hired for the project.

Other impact Business relations will be increased and formed across the
boarders of a region formerly struck by war among ethnicities.
Bema BA would like to hire employees that originate from other
ethnic groups in Bosnia and Herzegovina.

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Bosnia and Herzegovina

PSI09/BA/21 Establishment of a high tech CNC machines centre


in Bosnia and Herzegovina to serve the South-East
European metalworking market

Location Bosanska Krupa

Sector Machine industry

Applicant Style High Tech B.V., Bunschoten-Spakenburg,


The Netherlands

Local partner ZAH D.O.O., Bosanska Krupa, Bosnia and Herzegovina

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,491,540 (50 percent PSI contribution)

Goal of the project


The establishment of a sales, service and repair centre for CNC machines in Bosnia and
Herzegovina.

Summary
This project entails the establishment of a joint venture in Bosanska Krupa between Style
High Tech B.V. from Bunschoten and ZAH d.o.o. from Bosanksa Krupa in Bosnia and
Herzegovina. Style High Tech develops CNC machines for metal processing and ZAH is a
metal processor itself. Together, these 2 companies would like to establish a distribution,
service and refurbishment centre for CNC machines in Bosanksa Krupa. Through the
establishment of such a joint venture, the partners foresee new market potential to be
tapped. This new market consists in the fact that all of the current CNC machines are still
imported from abroad and are not appropriate for the production of small series of products.
However, a lot of companies are unable to afford such machines, as any training and
maintenance would have to be performed abroad. These companies in Bosnia and
Herzegovina still use conventional metal processing machines, which are operated by hand.
PSI would allow this untapped market potential to become tapped.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : The building is finished and equipped, and employees have been trained;
• Result 3 : The joint venture is completely operational.

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CSR aspects
On CSR, partners pledge the following:
• ISO 9001 will be implemented for this project. As the business model of Style will largely
be copied, the same ISO rules will be followed and so ISO will be expectedly be
implemented in the joint venture without mayor difficulties;
• Waste will be collected by certified companies. The metal waste that results from the
training, on the CNC machines, is collected, melted again and resold to metal processing
companies;
• Galvanization will not take place within the new joint venture;
• Partners commit to providing a safe workplace and will provide protective clothing where
necessary.

Impact
Long term economic The follow-up investment which is foreseen within 2 years after
activity this project is to be concluded will be spent on business
expansion. Elements are additional staff to be trained,
marketing for entering additional markets in South East
Europe, and the extension of the building and hardware.

Employment and Within the new joint venture, 7 medium to high level full time
working conditions jobs will be created during the project. Two years after the end
of this project, an additional 3 full time medium to high level
jobs will have been created.

The following conditions apply:


• Workers will receive normal health insurance and pensions;
• Workers will receive protective clothing where needed. The
machines are not dangerous in operation because they are
not operated by hand but by software once they are closed
and ready for production;
• Workers will receive allowance for food, money for holidays,
religious holidays free from work, social / health insurance,
pensions.

Transfer of knowledge This project will transfer new knowledge to Bosnia and
Herzegovina in working with and adapting modern CNC
software and machines. This is expected to enable metal
working companies to become acquainted with CNC for the first
time. These companies will therefore become able to produce
small series of products much more efficiently. This knowledge
will also be transferred to the educational system, via the
University of Bihac.

Chain effects Indirectly, it is foreseen that this project will have a positive
spin-off effect as it will induce the development of a new
market. CNC machines will become a possibility for part of the
metal processors that currently still work with conventional
machines.

Other impact The training to be provided to the students of the University of


Bihac.

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Georgia

PSI09/GE/01 Establishment of a decorative plant nursery

Location Tbilisi

Sector Horticulture: ornamental plant cultivation

Applicant Fachjan B.V., Honselersdijk, The Netherlands

Local partner ABG & Profservice Group Ltd, Tbilisi, Georgia

Start project 08 June 2009

End project 07 December 2011

Total budget EUR 1,371,396 (50 percent PSI contribution)

Goal of the project


To establish a joint venture which will grow and supply the local market of decorative plants,
intended for consumer retail and project planting. At least 115,000 stems of pot plants and
200,000 bedding plants will be produced and sold.

Summary
Within this project a modern greenhouse will be established to grow decorative pot plants.
The partners Fachjan B.V. and ABG & Profservice Group Ltd wish to sell these plants on the
institutional market and on the consumer market.
Fachjan B.V. was established in 1989 and has experience in growing of young pot plants and
the trade in plants and planting materials for project planting. They specialise in indoor
landscaping.
ABG & Profservice Group Ltd was established in 2007. They design lighting and electrical
installations. They offer innovative complete solutions on a project bases. In this framework
they also supply services in the field of interior design.
As the project partners offer compatible services they intend to cooperate in order to develop
the market in Georgia together. The applicant will supply knowledge and planting materials.
The local partner will bring in the sales channels and the local operating knowledge.

Results
• Result 1 : Establishment of company and enabling environment;
• Result 2 : Construction and putting into operation of greenhouse;
• Result 3 : Operation, production and sales.

CSR aspects
The partners will carry out environmental impact assessment. Furthermore they will develop
a CSR policy. This will be based on the rules in the EU and Georgia. Partners wish to
introduce MPS certification for the greenhouse.

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Impact
Long term economic A follow-up investment of EUR 154,000 is expected in
activity extension of their production unit. The additional turnover will
be EUR 2.3 million.

Employment and Five medium / high level workers, 10 low level workers, as well
working conditions as 8 part-time workers will be hired by the joint venture during
the project.
Two years after the project 7 medium / high level workers and
20 basic level workers will be hired.
The joint venture will cover Health Insurance for all employees,
pension and if necessary transport services (depending on
location). They will pay a salary of EUR 375 per month.

Transfer of knowledge Modern and up-to-date knowledge about plant growing is


currently not present in Georgia. Further ideas on
environmentally safe production will be transferred. Under
modern management, the employees will learn about
marketing and the use of new products.

Environment The partners do not expect to impose any risks on the


environment. Water and energy will be used in limited
quantities due to saving measures that are incorporated in the
computer software. CO2 produced by burning natural gas is
guided back into the greenhouse and used as a fertiliser for the
plants. The project will adjust their production process in line
with MPS certification.

Position of women The project partners estimate that 80% of the workforce will be
women. Fifty percent of the management team will consist of
women. Female workers will receive the same wages as male
workers.

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Kosovo

PSI09/K3/01 Galvanization in Kosovo: Establishment of a hot-dip


galvanization facility in Kosovo for the production
of high quality durable metal products

Location Prizren

Sector Industry: metal

Applicant Zinkunie B.V., Boxtel, The Netherlands

Local partner Zinkunie Kosovo Sh.p.k., Prizren, Kosovo

Start project 01 July 2009

End project 31 December 2011

Total budget EUR 1,498,000 (50 percent PSI contribution)

Goal of the project


To set up and run a galvanization plant, with a production of 5,250 tons according to the
desired quality level, for the production of durable metal products.

Summary
Zinkunie B.V. and Zinkunie Kosovo Sh.p.k. will establish a joint venture called Zinkunie Galva
Sh.p.k. This new venture will specialise in galvanisation, packaging and shipment of various
durable metal products according to the required quality standards.
Currently there are no companies in Kosovo that are able to galvanize metal products.
Therefore local metal producing companies are not able to produce durable products on the
quality level that is internationally required.
Galvanization increases the lifespan of metal products and prevents corrosion. Modern
hardware in the field of hot-dip galvanizing will be introduced and technical assistance will be
provided. Galvanizing will take place according to EN-ISO 1461 and EN 1179 norms. This
project will be executed in Prizren. An area next to the local company of more than 100 m2 is
available.

Results
• Result 1 : Setting up a joint venture;
• Result 2 : Operational production facility;
• Result 3 : Recruitment and training;
• Result 4 : Pilot production.

CSR aspects
The partners attach importance to CSR. The joint venture will work according to the EN-
ISO 1461 / EN 1179 norms, invest in a filter installation to filter all emissions and invest in a
heath transfer system.

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Impact
Long term economic An additional investment will be done in new galvanisation
activity equipment. This additional investment amounts to
EUR 1.5 million. The turnover will be EUR 11,680,000. The
partners will continue their sustainable cooperation which is
guaranteed because they are both members of the Zinkunie
group of companies.

Employment and At the end of the project period 60 staff members will be
working conditions working for the joint venture.
54 are low level employees and 6 are medium/high level
employees. Two years after the project period 116 staff
members will be working for the joint venture, among whom
110 low level employees and 6 high level employees. The staff
members will receive at least a wage of 60% above minimum
wage. They will be offered transportation from work every day,
health insurance, a safe working environment and education
and training will be provided. All working conditions will be
according to Dutch standards.

Transfer of knowledge In Kosovo there is no up-to-date knowledge about the


galvanisation process. The technical knowledge is completely
new for Kosovo. The way of working is new; working efficiently
to achieve a high output and working with high accuracy to
obtain optimal production quality.

Chain effects This project will have a positive effect on the manufacturers of
steel products in Kosovo and the Balkan region. The project
expects to have 10 subcontractors among others zinc suppliers
and maintenance companies.

Environment Zinkunie Galva will work according to the following norms:


EN-ISO 1461 and EN 1179. Furthermore, an EIA will be
executed. And additional investments will be made in: a fume
hood, a filter installation and a heat transfer system. Chemical
collection and recycling will take place. Zinc can be recycled
indefinitely without loss of its physical or chemical properties.
Thus the environmental risks have been mitigated to the
maximum.

Position of women The project will hire 3 women. The positions in production will
most likely be filled by men.

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Macedonia

PSI09/MK/21 Establishment of a Macedonian-Dutch steel Rebar


production joint venture

Location Skopje

Sector Industry: metal

Applicant Betonijzervlechtersbedrijf Gerliko B.V., Nederhorst den Berg,


The Netherlands

Local partner Europroekt DOOEL, Skopje, Macedonia

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,497,700 (50 percent PSI contribution)

Goal of the project


To establish the first modern equipped metal rebar production company in Macedonia that
will manufacture prefabricated steel rebar products for the building and construction industry
of Macedonia and its neighbouring markets.

Summary
The partners will establish a Steel Rebar production company. The use of prefabricated steel
rebar for concrete reinforcement will improve the productivity in the building and
construction sector. The constructions in Macedonia will become more stable.
The project will most likely be located in the Free Economic Zone of Skopje.
The Applicant for this project is Betonijzervlechtersbedrijf Gerliko B.V.. This is a Dutch
company specialised in manufacturing non-galvanized steel rebar products for the residential
and non-residential building and construction sector.
The local partner for this project is Europroekt DOOEL. This is a Macedonian construction
company that is particularly active in the non-residential construction sector.
The partners will establish a joint venture with a share division of 51% for the applicant and
49% for the local partner.
This project will professionalize the construction sector in Macedonia.
The partners will obtain ISO 9001 and 14001 certifications and work according to NEN 6008
norms.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : The new prefabricated steel rebar products manufacturing joint venture is
operational and the employees have been trained;
• Result 3 : The joint venture is completely operational.

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CSR aspects
The partners mention that the new joint venture will be an integrated part of the community
that it operates in. Long term success of the joint venture is based on good relations with all
stakeholders.
The joint venture will work according to the NEN 6008 norms and will obtain the ISO 9001
and ISO 14001 certification. Further filter installation and heating will be installed in the new
building.

Impact
Long term economic In the spin-off phase a follow-up investment of EUR 1,298,000
activity is foreseen.
For this amount the partners will expand the production hall
and the production means. The turnover 2 years after the end
of the project will be EUR 5.4 million.

Employment and During the project 14 people will be employed. Three medium /
working conditions high level jobs and 11 low level jobs. Two years after the
project 10 additional people will be employed by the joint
venture; 2 medium / high level jobs and 8 low level jobs.
During verification it became clear that the workers will earn at
least 10 to 15% above the average wage in Macedonia.
The working contacts will also cover health insurance and
pension building.

Transfer of knowledge The low level employees will acquire knowledge about
processing the material into different prefabricated rebar
products for the industry. They will learn how to use and
maintain different machines and installation. Further they will
learn to assemble rebar products at the construction site. The
designer-engineer will learn to work with new and strong
design, engineering, structural calculation and planning
software.

Chain effects The construction sector will be professionalised. This project


will lead to a simplification of the work for building and
construction contractors. They can gain time and reduce the
costs. For the workers this is also cleaner and safer work.
Further an additional 14 employees will be indirectly employed
through this project.

Environment To ensure optimal environmental friendly manufacturing the


joint venture will acquire the ISO 14001 certificate. This
involves the adaptation of an Environmental Management
System. All steel is recyclable.

Position of women Men and women will have equal opportunities both in respect to
position as job opportunity. The partners expect 29% of the
positions to be filled by women. This would mean that 4 female
employees will be hired. Two in medium / high positions and
2 in low positions.

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Other impact The proposal mentions that the project will strive for
cooperation with regional technical schools and create training
positions for technical students.

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Moldova

PSI09/MD/01 Production of modern pig farming equipment in


Moldova

Location Cosnita

Sector Industry: metal

Applicant Everink Beheer, Lichtenvoorde, The Netherlands

Local partner Miradera S.R.L., Chisinau, Moldova

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 484,110 (50 percent PSI contribution)

Goal of the project


Establishing a production company for modern pig farming equipment in Moldova with a
turnover of EUR 335,000 in the last project year.

Summary
Pig farmers in the EU and in Eastern Europe are demanding new equipment. Currently both
project partners, Th. Everink Beheer B.V. and Miradera S.R.L, provide a wide range of
various pig farming equipment. They wish however to improve their competitiveness on the
EU and Eastern European markets. The partners see a business opportunity in the production
of modern pig farming equipment in Moldova, in Cosnita. So far in Moldova no modern pig
farming equipment is being produced.
The joint venture will give pig farmers in the Netherlands a chance to buy new hardware that
is in line with new legislation and pig farmers in Moldova the chance to professionalize their
farms.

Results
• Result 1 : Set up of the joint venture;
• Result 2 : Renovation of the production facility;
• Result 3 : Delivery and installation of the equipment;
• Result 4 : Production facility fully operational.

CSR aspects
Partners will devote efforts to integrate CSR in the project, addressing the following issues
decent salaries, training, medial insurance, maternity leave, health and safety of the
employees.

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Impact
Long term economic The project partners expect to invest at least EUR 140,000 in
activity extra machines, such as a conveyer system and a bending
machine. EUR 635,000 is the expected turnover 2 years after
the project conclusion.

Employment and At least 12 full-time employees will be contracted by the


working conditions project on a permanent contract. Salaries of the low-level
employees will at least equal the average rates in Moldova and
the medium-high level employees receive 25% above the
average rate. The production facility will be prepared according
to local standards (or higher) to ensure safety.

Transfer of knowledge The produced equipment is new for Moldova.


Further the production workers will have to be trained in
western-type corporate practices, such as health and safety
regulations and the importance of quality and flexibility. An
additional emphasis will be put on correctly reading the
drawings and accurately following them.

Chain effects The Moldovan pig farmers will benefit from the project. They
will have the possibility to start a professional pig farm with
modern equipment. At least 20 pig farmers will be trained.
Painting services will be outsourced. Further local steel trading
companies will benefit from having a new regular customer and
2 local mechanics will have maintenance contracts.

Other impact Cosnita, the village where the project partners intend to
produce is located within the security zone due to the conflict
over the status of the Transnistrian region of Moldova. Cosnita
and its surrounding have been neglected for many years.
Economic activity is welcomed in this region.

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Moldova

PSI09/MD/02 Realisation of an egg processing plant in Cimislia,


Moldova

Location Cimislia

Sector Agro-industry

Applicant Eiprodukten Donkerbroek B.V., Drachten, The Netherlands

Local partner Intervetcom Ltd, Chisinau, Moldova

Start project 15 June 2009

End project 31 October 2011

Total budget EUR 1,386,972 (50 percent PSI contribution)

Goal of the project


To construct an egg processing plant, where liquid will be made for the Moldovan food
industry, with a capacity of 20,000 eggs per hour.

Summary
The project partners Eiprodukten Donkerbroek B.V. and local partner Intervetcom Ltd wish to
construct a plant for egg processing. Automatic egg processing will be a new processing
technology in Moldova giving far better results than manual production which leads to
products of inferior quality and a possible risk to food safety.
The applicant Eiprodukten Donkerbroek B.V., is a holding company for the production of
semi-finished egg products and a poultry farm. The production of semi-finished egg products
is executed by daughter company Frisian Egg. The local partner Intervetcom Ltd is a poultry
farm in Moldova with 29 employees.

Results
• Result 1 : Setting up a joint venture;
• Result 2 : Construction of plant;
• Result 3 : Furnishing of plant;
• Result 4 : Personnel hired, trained and start up production;
• Result 5 : Knowledge transferred to suppliers.

CSR aspects
The plant will process according to HACCP and EU-standards. The project partners are
familiar with ILO on labour and OECD guidelines for multinational corporations and they will
apply them within the joint venture. The partners have agreed on developing a CSR policy
for the joint venture.

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Impact
Long term economic Spin-off investments for an amount of EUR 825,000 are
activity foreseen in this project.
The partners expect a turnover in the second year after project
completion of EUR 3,378,790. The joint venture is foreseen to
have a solid base and stand for a long term relationship
between the partners.

Employment and During the project the following direct jobs will be created by
working conditions the project:
14 of which 4 medium / high level jobs and 10 low level jobs.

Two years after the project the number of jobs amount to 21 of


which 5 medium / high level jobs and 16 low level jobs.
All employees will receive wages above the current minimum
wage of Lei 2,200 (approximately EUR 161). The low level
employees will receive EUR 200 to EUR 280. The medium / high
level employees will receive between EUR 400 and EUR 900.
Further a lunch will be offered, free health care will be provided
and the joint venture will contribute to the pension insurance
fund.

Transfer of knowledge The product and the production process are new for Moldova.
The employees will receive training on the production process,
use and maintenance of equipment and in hygiene and food
safety.

Chain effects At first large users of egg products will mostly benefit from this
project as the project will enable them to buy required
quantities of a hygienic, liquid, easy to use product.
Around 3 large farmers that supply eggs to the processing plant
will also benefit. Later on also small farmers will be involved in
the supply chain of the factory.

Environment In order to start up a plant, the national government has to


provide a license. In this license environmental issues are
stated. The waste product of the plant consist of egg shells.
These shells can be used as fertilizer in agriculture.

Position of women Around 75% of the workforce will consist of women, both in low
as in medium / high level jobs. Considering the high level of
unemployment in Moldova, work in the factory will grant
women the opportunity to stay with their family instead of
moving abroad to earn money.

Other impact One indirect development will be the overall upgrading of


hygienic standards in the food sector as the plant will work
according to European hygienic and food safety standards.

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Latin America

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Page 252 of 290
Bolivia

PSI09/BO/21 Developing a reliable supply chain of quality wild


cocoa

Location Chapare, Cochabamba & Itenéz, Beni

Sector Agriculture

Applicant Pronatec AG, Winterthur, Switzerland

Local partner Rainforest Exquisite Products S.A., La Paz, Bolivia

Start project 01 January 2010

End project 30 June 2012

Total budget EUR 503,000 (50 percent PSI contribution)

Goal of the project


To develop a reliable and sustainable supply chain for wild cocoa beans, generating 350 tons
per year, of which at least 175 tons per year are export grade.

Summary
Applicant, Pronatec AG, is a Swiss trader of mainly organic products, who supplies wild cocoa
beans to the chocolate industry. Local Partner, Rainforest Exquisite Products S.A. (REPSA), is
the only major exporter of Bolivian wild cocoa beans, which it sells to Pronatec AG.
The commercial trade of wild cocoa is extremely rare and mostly sourced from Beni and
Cochabamba departments, in Bolivia. The wild cocoa beans from Bolivia are recognised by
the high end of the chocolate market, as an exclusive product for which top chocolate
makers are willing to pay an exceptional price. On average some 200 to 250 tons are
collected annually, of which only 20% can be exported due to quality problems This situation
is unsatisfactory for all parties in the supply chain; the high ratio of non-exportable beans
translates in lower average returns for the collectors; the volume of only 40 to 50 tons per
year is too small for traders to be profitable; and the European market has a higher demand
that can not be met from the current supply. Thus with the aim of substantially increasing
the volume of exportable wild cocoa beans, a project is proposed comprising several
interventions to improve quality and reliability throughout the supply chain:
• Organisation of 800 cocoa collectors into groups resorting under 6 buying stations;
• Provision of fermentation-drying units and camp sets to collector groups;
• Training of collectors in quality-oriented harvesting, fermentation, drying and transport;
• Establishment of 3 new and upgrading of 3 existing buying stations;
• Training of buying station staff and quality control staff;
• Improved transport to La Paz by investing in cargo tracking and better shipping;
• Organic / FairWild certification.
As a result of these interventions, the total volume collected is projected to increase to
350 tons with the exportable share eventually doubling to 50%, or some 175 tons exported
per year. This will provide a profitable and sustainable basis for the wild cocoa business
whereas Pronatec will benefit from a reliable and substantial volume of quality wild cocoa
beans.

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The collectors will see their income improved, their number will double to 800 and new
employment is created at the buying stations.
Partners will establish a joint venture, who will enter into a long-term sales contract with
Pronatec with regard to the export and sales of wild cocoa beans.

Results
• Result 1 : Business foundation, joint venture establishment;
• Result 2 : Building or renovation of buying stations, equipment purchased and
operational;
• Result 3 : Training of joint venture staff and external collectors;
• Result 4 : Business development and certification.

CSR aspects
Both Pronatec and REPSA are companies with strong Corporate Social Responsibility (CSR)
profiles as reflected in the mission statement of the 2 companies and put into practice in
their contracts with their suppliers (organic premiums, technical assistance, guaranteeing
market, health insurance, etc).
The joint venture's CSR policy with regard to social standards will be made explicit in a
document to be produced as part of Result 3.
All members of staff as well as the collectors will receive training and coaching in their
respective fields and secondary benefits, like health and first aid training, supplemental
health insurance and 13 months payment for all permanent staff. The salaries are at least
25% above minimum wages in Bolivia. The joint venture partners have continuous contact
with the collectors groups to tackle gender and child labour issues.
Safeguarding the environment lies at the basis of every activity REPSA undertakes in the
highly diversified 'hotspot' eco region of Iténez and Chapare. As such, the joint venture has a
strong environmental policy and the joint venture partners will maximize their efforts in
raising environmental awareness amongst their staff and collectors to ensure environmental
friendly business practices. Staff will be trained in forest ecology, implementing an internal
control system for organic / wild harvest certification and complying with organic harvest
standards, whereas a complete training module is dedicated to sustainable harvesting, to
educate the collectors in avoiding fire and combat small fire outbreaks, manage the wild
cocoa stands in the forests, hunting rules and camp and waste management. The joint
venture's production will be Organic / FairWild certified.

Impact
Long term economic Forests with sufficient density of wild cocoa trees, to be suitable
activity for commercial harvest, are extremely rare and basically only
encountered in the Chapare and Iténez Province. It is therefore
not expected that the supply of wild cocoa will increase
significantly after the pilot. At the most, the joint venture will
invest in 2 additional buying stations during the spin-off phase
and appoint 2 more station managers and staff.
The main follow-up investments will be made in organic cocoa
plantations in Alto Beni and Chapare. Since 2007, REPSA
started exporting organic cocoa to Pronatec with an agreement
to increase production up to 200 tons yearly from 2011
onwards. To achieve this 1,200 smallholders, who are currently
not linked to the international market, will be involved. REPSA,
in partnership with Pronatec and other interested companies,
has undertaken another project, aimed at improving the quality

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of the Bolivian organic cocoa. REPSA and its partners will focus
on extending and rolling out the successful activities that have
been undertaken with regard to the cultivated organic cocoa.
Estimate follow-up investment will be about USD 750,000, and
the project is complementary to the wild cocoa project as
harvest and processing of cultivated cocoa run from May to
October and do not overlap with the wild cocoa harvest from
December to March. This will also allow the use of the hardware
purchased for the pilot, during 8 instead of 4 months per year.
REPSA will be working in both projects and, as such, will further
diversify its business and reach full financial sustainability by
2012.
In addition, Pronatec and Mr Lehmann are considering to
develop ecotourism trips to the 'chocolatales' (wild cocoa
growing areas) in the Beni region as this will positively
contribute to the wild cocoa story and will increase awareness
and interest among consumers and importers.

Employment and At the end of the project, the joint venture will employ 28 staff
working conditions (18.5 fte). This will increase to 37 (25 fte) 2 years after the
pilot. As the activities only take place during part of the year,
the employment figures must be detailed:
• The complete staff from REPSA (5), will be managing the
joint venture during the harvest period, and is included in
the 28;
• 12 persons (for each buying station: 1manager +
1assistant) will be permanently employed by the joint
venture throughout the year;
• 13 persons will be hired by the joint venture for 4 months
per year, during harvest, and will work in REPSA's organic
cocoa activities, during the remaining part of the year.
The joint venture's unskilled labour will be paid a minimum of
20% above the legal minimum wage, and they will enjoy the
following fringe benefits:
• 13 months payment per year;
• A bonus received for every year they complete working with
the company;
• Contribution to employee's health insurance and state
pension fund.

Transfer of knowledge Although the collectors in Iténez are already receiving technical
assistance on some topics by REPSA personnel, the scope,
intensity and professionalism of the training modules being
implemented in this proposed project is new to Bolivia, and will
serve as an example for other fair and sustainable collected
ingredients throughout the region. New knowledge will be
transferred in the practices of sustainable wild cocoa collection
according to the FairWild standard which is novel to Bolivia.

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Chain effects The number of collectors involved will increase from 400 to
800, and their income will increase by 10%, due to the fact
that a larger share of the collected beans will meet export
quality, for which better prices are paid.
As the total export volume is projected to triple, the project will
generate additional economic activities for transportation
companies (by river and by road) and for REPSA (in quality
inspection and storage and forwarding).

Environment The effect of the project on the environment is neutral. Most of


the beans fall from the trees naturally or, when harvested, it
will take place in a careful and traditional way not harming the
trees. No chemicals whatsoever are applied; certified wild
cocoa is a completely natural product. Indeed, this project will
be beneficial to the environment if it succeeds in raising
environmental awareness among the collectors through
education and knowledge transfer on various aspects of forest
ecology and sustainable harvest practices; in addition, the
promotion campaign will create ecological awareness with a
wider public by making use of various local media.

Position of women About 20% of the total workforce will be women, mainly in
management and quality control, as the field operations are
remote and involve physical work such as lifting heavy bags.

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Bolivia

PSI09/BO/22 Piloting the generation of electricity and carbon


credits through gasification of Brazil nut shells and
Pods at Cobija

Location Cobija

Sector Energy

Applicant Ankur Scientific Energy Technologies Pvt. Ltd, Gujarat, India

Local partner Tahuamanu S.A., La Paz Murillo, Bolivia

Start project 01 December 2009

End project 31 December 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


To implement a 700 kW power generation plant, fuelled with biogas generated by the
gasification of nutshells, that result from the Brazil nut processing plant.

Summary
Tahuamanu from Bolivia is the world's largest processor and exporter of Brazil nut.
Thousands of collectors gather the nuts in the Amazon forest in the north of Bolivia for
processing at the company's plant in Cobija. For years the empty shells have been stockpiled
for lack of economic use. Tahuamanu has long searched for an affordable and reliable
technological solution to generate electricity out of the biomass, which has a very high caloric
value, to alleviate Cobija's increasing power shortage. It has identified Ankur Scientific
Energy Technologies from India as its long-term partner to implement a biomass gasification
system – unique to Bolivia – as a basis for power generation for delivery to ENDE, the public
utility in charge of electricity transmission and distribution in Cobija. The pilot plant will
generate 4,500 MWh per year, some 15% of Cobija's current electricity demand. Moreover,
owing to replacement of fossil fuel to produce electricity, the project's emission reductions
should qualify under the Gold Standard of the Clean Development Mechanism (CDM).
The project thus will lead to substantial fossil fuel savings. Fuel which is now transported for
over 1,100 km and subsidized heavily. Also the project will generate income for biomass
collectors, who will be paid for gathering biomass. The increased power supply to Cobija will
benefit the private and the public sector alike, thus contributing significantly to local
development. Shortage of energy is seen as main impediment to economic development in
many remote areas. The pilot is relevant to many areas in the Amazon region of Bolivia that
is rich in biomass but too remote to be supplied through the main energy distribution
network. It is anticipated that the pilot project will contribute to revision of national energy
policies in favour of such projects, which the partners are planning to develop through follow-
up investment.

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Results
• Result 1 : Business foundation, joint venture establishment;
• Result 2 : Building / installation of the gasification equipment and power generation
plant. Training of the operating staff;
• Result 3 : CDM project registration;
• Result 4 : Business development and issuance of Emission Rights.

CSR aspects
The joint venture will apply Tahuamanu's CSR standards. Tahuamanu is part of the Global
Compact of USAID and United Nations which is a strategic policy initiative for businesses that
are committed to aligning their operations and strategies with 10 universally accepted
principles in the areas of human rights, labour, environment and anti-corruption.

Impact
Long term economic Ankur and Tahuamanu will continue their cooperation through
activity their joint venture to develop more biomass gasification plants
in the region. Following the successful implementation of this
pilot project, the partnership is planning to double the capacity
of the plant to 1.6 MW (gross) requiring a considerable follow-
up investment.
Apart from this, the partners have already identified 3 other
projects which they intend to develop in the Pando and Bendi
departments, adding up to a total installed capacity of 4.7 MW:
Cobija 2nd phase(Pando) 0.8 MW
Riberalta (Beni) 2.2 MW
Puerto Rico (Pando) 0.5 MW
Sena (Pando) 0.4 MW
Total 3.9 MW

Of these projects, 50% could realistically be built within 2 years


after the pilot, if pricing issues are resolved, resulting in follow-
up investments of EUR 3.5 million.

Employment and The project will create 12 direct jobs (including 2 high level and
working conditions 5 medium level) to operate and maintain the plant. This should
increase to 28 within 2 years after the pilot, when 2 to 3 new
power plants are implemented.
The joint venture will pay a monthly wage to its lowest level
employee (Cleaner) which is 35% over the legal minimum
wage. It will also pay additionally for overtime, vacations, years
of employment and end-of-year bonuses, according to what is
stated by the General Labour Law. The joint venture will pay a
'productivity bonus' twice a year to the employees according to
a ranking scale.
The fringe benefits provided by the joint venture to its
personnel, will include:
• Two daily meals at 50% of cost price;
• Free breakfast for workers at duty at 6 a.m.;
• Free use of nursery school for children of staff under 5 years
old;
• Health insurance and life insurance;
• Access to Tahuamanu's housing plan (easy finance coupled

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to direct payment deduction from salary).

Transfer of knowledge The gasification of biomass is complete new technology for


Bolivia, and is not limited to nut shells and pods, but is also
applicable to a large number of other available waste products
from the wood industry (sawdust), agriculture (rice husks, corn
cobs, sugar cane waste, etc). The technology allows a much
more efficient use of the energy contained in this biomass.

Chain effects Moderate chain effects on the income of the nut collectors are
expected, as the joint venture will pay EUR 40,000 per year for
collected pods. This will not represent a high income,
considering there are 500 collectors, but not all of them will
engage in the pod collecting and it is additional income that can
be realised outside the nut harvest season. If, for instance,
only 100 collectors participate, they will earn an additional
EUR 400 per year, which is substantial in Bolivia.

Environment The environmental impact of the project is significant by virtue


of the replacement of fossil fuel (1350 tons of diesel annually),
and thus the avoidance of GHG emissions equivalent to
4,235 tons CO2.
The project will be certified according to the Gold Standard for
Certified Emission Rights.
Gold Standard carbon credits are the highest grade currently
available and require that renewable energy and energy
efficiency technologies also lead to sustainable development for
the local community (such as increased standards of living,
knowledge transfer, job creation or pollution reduction). All
Gold Standard projects are rigorously tested for environmental
quality by registered third parties. The Gold Standard
Foundation only awards its label after third-party validation and
verification of the project.
Ash and tar produced during the gasification process are
possibly harmful to the environment. Ankur's gasifiers have
been specially designed with proper throat size and nozzle
geometry to ensure almost complete tar cracking in the gasifier
itself. Thus, the hot gas leaving the gasifier is generally tar-free
over the operating range of the gasifier. A system of gas
scrubbers and filters remove tar (if any) and remaining
particles from the gas before combustion.

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Brazil

PSI09/BR/01 Production of Babassu charcoal in Brazil

Location Tufilandia, Maranhão

Sector Energy

Applicant Eneco Energy Trade B.V., Capelle aan den IJssel,


The Netherlands

Local partner Fazenda Alcides Braun, S. Luis – Maranhão, Brazil

Start project 01 June 2009

End project 31 March 2011

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


To set up a sustainable production chain of charcoal, made of Babassu waste, with a capacity
of 3,000 tons per year, to be used as fuel in Dutch powerplants.

Summary
Babassu is a native palm of the northeastern region of Brazil. The tree produces a nut, from
which the Babassu oil, a valuable ingredient for the cosmetic industry, is obtained. This
however represents just 7% of the mass of the nut, resulting in 93% of nut "cake" and an
even larger volume of shells, that are currently regarded as waste. The commercial
exploitation of the Babassu is therefore far from optimal, and the large natural Babassu
forests in the State of Maranhão are considered a plague instead of a blessing. Of the original
6.5 million ha of Babassu, only 2.0 million ha are left, because farmers have cut down large
areas to use as cattle fields. The government has now proclaimed the Babassu as a protected
species, and issued a law forbidding its uncontrolled deforestation.
The project aims at achieving a sustainable exploration of the Babassu forests, by
transforming the large amounts of wasted biomass (shells, undergrow, old unproductive
trees) into fuel for electricity generation in the Dutch powerplants of Eneco.
Eneco Energy Trade B.V. (EET) is the applicant and Fazenda Alcides Braun (FAB) is the local
partner. A new joint venture will be formed between Eneco New Energy B.V. (ENE) and
Fazenda Alcides Braun.
The innovative approach for an integrated exploitation of Babassu, based on a responsible
and sustainable management of the natural forests, can have a significant impact on the
region, in terms of environmental conservation and job creation. A profitable
commercialisation of the former waste will further serve as an example of how care for the
environment and economic growth can go hand in hand.

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Results
• Result 1 : Joint venture established;
• Result 2 : Production facility operational;
• Result 3 : Employees hired and trained;
• Result 4 : Commercial production & promotional plan implemented, business plan
updated.

CSR aspects
The project will apply for NTA 8080 certification. This certificate is based on the Cramer
Criteria, and sets high standards regarding greenhouse gas emissions, competition with food
production or other local stakes, biodiversity, the environment, welfare and well-being. Good
labour conditions, a well-elaborated (social) personnel policy and safety and health of
employees are required to be NTA 8080 certified. Sustainability of the biomass production
and chain responsibility are obligatory as well. Besides NTA 8080, the project will also be
SEMA certified. SEMA (the Brazilian Special Environment Agency) is responsible for Ecological
Stations which are similar to National Parks but are selected to preserve good examples of all
Brazilian ecosystems and connect them with Universities' Research Projects.

Impact
Long term economic Follow-up investments amount to EUR 4,500,000 for expansion
activity of the plant processing capacity to 15,000 tons per year.

Employment and The project will generate 29 direct jobs, of which 3 of a higher
working conditions income level (10 to 15 times minimum wage). For production
operators salaries will be 2.5 times the legal minimum. Two
years after the pilot the number of permanent jobs will have
increased to 70 (mainly operators and supervisors).
Besides good primary working conditions, employees will have
benefits such as:
• 14 months salary per year;
• Health insurance;
• A work doctor available;
• School for workers and family;
• Child care facilities;
• Transport to and from the farm;
• The opportunity of housing on the farm at no charge for
board or lodging costs.

Transfer of knowledge New knowledge will be introduced in terms of the Twin-retort


charcoaling production technology and sustainable forest
management.

Chain effects The local community will learn that forest management will
lead to economic gains on the short and the long term. They
will learn that deforestation is not necessary to gain a good
income from Babassu: by means of natural management of the
forest, both a good income and sustainability is possible.
Transport costs of the charcoal are estimated at EUR 50,000,
so that the project will generate EUR 150,000 per year
additional turnover further in the chain.

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Environment The project will have a positive impact on the environment, and
is therefore supported by the local authorities. The whole
operation will be NTA 8080 and SEMA certified. More important,
by demonstrating that an economically feasible exploitation of
the Babassu forests is possible, it will reduce the pressures on
deforestation.

Position of women Women will be treated equally to men and they can take
positions at every level in the company, from operators to
management. The aim is to hire 50% female employees.

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Brazil

PSI09/BR/02 "Cerrado" Frozen Fruits Ltd: Modernization of


Procurement and Processing Facilities for exotic
frozen fruit pulps in Carolina, Brazil

Location Carolina, Maranhão

Sector Agro-industry

Applicant QuaTerNes B.V., Almkerk, The Netherlands

Local partner FrutaSã Industria Comércio e Exportadora Ltda, Carolina, Brazil

Third partner Stichting ICCO, Utrecht, The Netherlands

Start project 01 July 2009

End project 30 June 2012

Total budget EUR 1,000,000 (50 percent PSI contribution)

Goal of the project


To implement a modern fruit processing plant, with a capacity of 350 tons per year, while
stimulating sustainable procurement from indigenous communities and small local farmers.

Summary
In northern Brazil, between the dry savannah-like regions in the east, and the dense Amazon
jungle in the west, lies the "Cerrado", an area with intermediate vegetation, a large
biodiversity and inhabited by several indigenous communities. The Cerrado produces a great
variety of exotic fruits, that are traditionally collected by the indigenous populations (no
cultivation). To support these indigenous communities the NGO Centro de Trabalho
Indigenista (CTI) was created. Among other activities CTI stimulates indigenous people to
create economic activities to support themselves financially, but trying not to interfere in
their traditional lifestyle. In the past, in cooperation with ICCO, CTI implemented a fruit
processing plant FrutaSã (healthy fruit) that has been operating for over 20 years. However,
the company has always lacked the technological know how and professional management to
make it a commercial success. Furthermore, the indigenous people do not dispose of any
knowledge to correctly harvest and handle their produce, resulting in erratic supply, poor
quality and substantial losses.
Applicant, QuaTerNes, from the Netherlands, and FrutaSã from Carolina, Maranhão, now
intend to form a joint venture to set up a modern fruit processing plant, that will meet the
most severe food safety and health requirements to be able to even export their products to
the EU. Simultaneously they will implement a modern procurement system to ensure
optimum freshness and quality of the fruit collected in the indigenous areas. Several
collecting stations will be installed within the communities to cool the fruit immediately after
harvest, and pre-process on the spot to maintain maximum quality and taste. This is
completely new for Brazil, and will have a significant positive impact on the economy of the
indigenous communities.

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Results
• Result 1 : Joint venture established;
• Result 2 : Procurement system / facilities operational;
• Result 3 : Processing building upgraded, new equipment installed and operational;
• Result 4 : Training of the staff, certification & business development.

CSR aspects
CSR is practically embedded in the project through the participation of ICCO and FrutaSã.
Both organisations have the mission of providing a fair income to the poorest segments of
the population, and have been active for years in the support and development of the
indigenous communities, without affecting their traditions and way of life.

Impact
Long term economic Partners expect to invest an additional EUR 280,000 in the
activity 2 years following the pilot. First additional equipment will
increase depulping and (retail) packing capacity. The bottleneck
for growth is the procurement, which will have to be
continuously developed.

Employment and The project will generate 12 new direct jobs, of which 1high
working conditions level (manager), 5 medium level (3 procurement staff and
2 machine technicians) and 6 low level (operators for handling
and preparation of fruit). For low level operators salaries will be
1.5 times the legal minimum, and for medium level 2.0 times.
Two years after the pilot the number of permanent jobs will
have increased to 20.

Transfer of knowledge The transfer of knowledge concerning quality and logistics


(storage and transport) of the fruits to the local fruit pickers /
producers is completely new. Although the used technologies
and techniques may be applied in other parts of Brazil, the
involvement of indigenous people is unique. To avoid any over-
harvesting, the indigenous pickers will be educated on
ecosystem interdependence and will be guided by procurement
staff.
Finally, the project will introduce international quality control
systems (including ISO and HACCP certification, tracking and
tracing system) for the complete supply chain, including all
chain actors. This is new for the region.

Chain effects The project will have impact (and responsibility) on a total of
450 fruit pickers / farmers who will have supply contracts.
These contracts will clearly specify the projected production /
supply and the training that will be given by the project. The
supply contracts will have a long term character and will
guarantee a reasonable income to the farmers and, in case
they can comply with the international quality standards set by
the joint venture, will result in a significant price increase
compared to current raw material prices.
Further in the chain, the project will create long-term contracts
for suppliers of utilities (maintenance), financial and
administrative services and packaging materials.

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Environment The direct impact of the project on the environment will be
neutral. On a long term however the impact is positive, as it
will support indigenous communities to sustainably exploit the
Cerrado fruit trees, thereby reducing the risk of this ecosystem
disappearing over time.

Position of women The joint venture will offer equal opportunities for men and
women. Moreover, the impact on the position of the indigenous
women who will pick and supply the exotic fruits is positive.
Non-timber products such as fruits and nuts are a significant
source of livelihood for forest populations, and these activities
are traditionally performed by women. Harvesting non-timber
products normally involves low technology, but is also a
knowledge-intensive activity, particularly suited for women in
forest areas. Moreover, it can easily be combined with other
household activities.

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Brazil

PSI09/BR/03 Project Production Peppers

Location Ceara

Sector Horticulture: vegetables and fruits

Applicant Meurs Groep Holding B.V., Beusichem, The Netherlands

Local partner Fazenda Canafistula, Ocara – Ceará, Brazil

Start project 01 May 2009

End project 01 November 2011

Total budget EUR 1,322,600 (50 percent PSI contribution)

Goal of the project


To implement the production of fresh organic Spanish Peppers in Ceará, to be exported by
sea to Europe, with a capacity of 400 tons per year.

Summary
Pepper import into the EU originates mainly from Asia (80%). The long distances, require
that fresh peppers be transported by air, which substantially increases the cost. Project
partners see a business opportunity for the production of Spanish Peppers in the northeast of
Brazil, where climate conditions are ideal, and products can be shipped by sea container to
Rotterdam in 9 days.
The project partners will set up an organic production of Spanish Peppers, in a 15,000 m²
greenhouse, in Ocara, state of Ceará.
Applicant is Meurs Groep Holding from the Netherlands, and local partner is Fazenda
Canafistula in Ocara. The project will be embedded in the company of the local partner, with
assistance from the applicant.
The production of fresh peppers for export is completely new in Brazil. It is a very labour
intensive activity, and will create a substantial number of jobs in a very poor area. In follow-
up to the project, it is the intention to further increase production by involving local farmers
in the contract growing of peppers too.

Results
• Result 1 : Facilities design, training programme and detailed planning;
• Result 2 : Greenhouse, building and infrastructure operational;
• Result 3 : Handling, packing and transport equipment operational;
• Result 4 : Staff recruitment, certification, commercial production started, business plan
updated;
• Result 5 : Training of the staff, external support.

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CSR aspects
In order to be able to export food to the EU market, HACCP and GlobalGAP certification are a
basic requirement, and will be implemented.
The project partners consider CSR as a basic motivator for doing business. Therefore they
have developed own policies that result in good salaries, additional benefits, high focus on
safety for the employees and no use of forbidden pesticides.
In addition to trainings focused on the job, employees can (voluntarily) participate in
education sessions about not-work-related subjects like hygiene, primary health care, birth
control and sexual transmitted diseases. The training will be given by professionals in
cooperation with the local authorities and the existing health programme of the government.

Impact
Long term economic Partners expect to invest an additional EUR 1.5 million after the
activity project, mainly to increase greenhouse capacity. With this
investment turnover should jump from EUR 1.6 million to
EUR 4.5 million.

Employment and The project will generate 82 new direct jobs, of which 3 high
working conditions level (management positions), 10 medium level (several
technical positions) and 69 low level (direct labour). Unskilled
labour will be paid at least minimum wage, but all employees
will get free company meals, medical assistance, free transport
to the farm and free working clothes. Two years after the pilot
the number of permanent jobs will have increased to 375.

Transfer of knowledge The technology for organic cultivation of peppers in a controlled


environment (greenhouse + substrate) is new for Brazil. This
will significantly increase the skills and knowledge of the staff,
improving their "employability".

Chain effects Chain effects will largely be limited to the seed suppliers and
the company that will grow the seeds to small plantlets. In a
later phase, partners intend to involve contract growers to
increase the production volume. However this depends on the
availability of low cost greenhouse types that are being
developed by the local manufacturer, as the small farmers do
not have the means to make large investments.

Environment Due to the organic production, the impact on the environment


will be neutral.

Position of women Women will get equal treatment regarding salary and career
possibilities. Work in the greenhouse is not heavy, and
adequate for women. Part time work is also possible. Goal is to
get 60% female workers.

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Brazil

PSI09/BR/21 Exotic mushrooms from Brazil

Location Vitória da Conquista, Bahia

Sector Agriculture

Applicant P.P. Tropisch Fruit B.V., Kwadendamme, The Netherlands

Local partner Agro Commercial Bella Vista Ltda / Valentim Appolari,


Sao Paulo, Brazil

Third partner Shanghai Pan Globe Food Co. Ltd, Shanghai, China

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,499,966 (50 percent PSI contribution)

Goal of the project


To set up a − HACCP and GlobalGAP certified − pilot production of exotic mushrooms
(King Oyster, Shimeji, Enoki) in Brazil, with an output capacity of 1,000 kg per day.

Summary
P.P. Tropisch Fruit B.V. (applicant), is a wholesaler of tropical fruits and exotic mushrooms in
the Netherlands; Agro Comercial Bella Vista Ltda (local partner) is a wholesaler of fruit and
vegetables in Brazil; and Shanghai Pan Globle Food Co. Ltd (third partner) is a grower and
exporter of mushrooms, vegetables and fruits in China.
Based on recent market surveys, these companies see an opportunity to develop the
production of exotic mushrooms in Brazil. There is a growing domestic demand for healthy
products in a more balanced economic society and, due to its large immigrant population,
Brazil also has an increasingly diversified restaurant and catering industry, always looking for
new products and ingredients.
The project partners, therefore decided to set up a joint venture to start the cultivation of
exotic mushrooms in Vitória da Conquista, southern Bahia.
Currently, commercial (certified) cultivation of exotic mushrooms does not exist in Brazil. The
mushrooms that are available on the domestic market, are cultivated on a small scale
according to traditional (empirical) methods. Due to uncontrolled processing the quality is
poor and the prices are too high.
The project is new for Brazil, will introduce new production technology and create
60 medium / high level jobs, in one of the poorest regions of Bahia state. Furthermore,
market prospects are positive and a solid return on investment can be expected.

Results
• Result 1 : Joint venture established;
• Result 2 : Factory building completed and equipment operational;
• Result 3 : Employees hired and trained;
• Result 4 : Commercial production and promotional campaign implemented.

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CSR aspects
The project will introduce food safety, hygiene and manufacturing criteria (GlobalGAP and
HACCP) to the production and processing of mushrooms. The plant will be equipped with fire-
extinguishers, fire-fighting equipment, emergency exits and a safe electrical system.
Emergency drills will be held regularly. Some of the staff members will receive First Aid
training and medical assistance is regularly available for all employees and their families. A
crèche will be available for employees' children.
Employees and their families will all have medical insurance.

Impact
Long term economic If the market develops as expected, partners will double the
activity production capacity within 2 years after the pilot
(EUR 1.5 million), resulting in an annual turnover of
EUR 829,000. Furthermore, an extensive production of Shitake
mushrooms is planned, which must be cultivated outdoors, and
for which a system of contract growers (200 to 400) will be put
in place. The investment in production facilities will have to be
done by the individual outgrowers (the Brazilian development
bank Banco do Nordeste already informed that it will finance
these outgrowers, if the joint venture guarantees the purchase
of the Shitake mushrooms), but the joint venture will have to
increase quality control / packaging / storage / distribution
facilities.

Employment and The project will generate 60 direct jobs, of which 20 of a high
working conditions and 40 of a medium level. For production operators salaries will
be 30% above minimum wages. Two years after the pilot the
number of permanent jobs will have increased to 120 (basically
a doubling of the capacity).
Besides good primary working conditions, employees will have
benefits such as:
• 13 months salary per year;
• Health insurance;
• Child care facilities;
• A basic "food basket" for employees with children under 16.

Chain effects Between 10 and 15 fte's will be involved in the supply of


substrate materials. They will be paid a price per kilogram
delivered, and will receive back the used substrate, that can be
sold as fertiliser.
An estimated 10 to 20 persons will be involved with the
distribution of the mushrooms in the retail activities.

Environment The production process is completely "clean" and can be seen


as a demonstration facility in that respect. Basic ingredients
used are waste from other processes and a healthy (high
protein) food product is the result. Sub products of the process
(used substrate) will be recycled as fertiliser for other
agricultural activities. The water used will be filtered and
reused.

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Position of women About 60% of the workforce is expected to be women. The
most likely positions will be in laboratory handling, but also in
harvest and packaging of the mushrooms. This high percentage
is only possible by having a child care centre near the factory.

Page 270 of 290


Brazil

PSI09/BR/22 Amazon Outdoor Training & Teambuilding


Conference Centre

Location Margem Rio Negro, Irandubai, Manaus

Sector Tourism

Applicant P.J.T. Holding B.V., Nijmegen, The Netherlands

Local partner Tiwa Participacoes e Representacoes Ltda, Irandubai, Brazil

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 1,475,000 (50 percent PSI contribution)

Goal of the project


To set up a full service outdoor training and teambuilding centre, with a capacity of training
2,400 person-days per year (40 groups of 60) in the unique Amazon environment, with
modern management training concepts, in a sustainable and ecologically responsible way.

Summary
Over the last 20 years, outdoor training and teambuilding activities, offered by professional
organizations, have outgrown the "fun" and "non-serious" image, and have become part of
the established and seriously recognised training and group activities, particularly for
multinational companies, worldwide.
The Amazon Outdoor Training & Teambuilding Conference Centre will offer a full service
operation, incorporating a wide range of training and teambuilding activities, with outdoor
and indoor facilities. It will combine modern training and group activities with the unique
environment of the Amazon forest. It will integrate the outdoor and indoor activities with the
supporting catering and overnight services. It will be a truly unique outdoor centre
worldwide.
The centre will be located on a 2 ha flat area, on the margins of the Rio Negro, across the
city of Manaus, close to the Tiwa Amazonas Ecoresort.
Applicant is PJT Holding from Nijmegen (PJT) and local partner is Tiwa Participações e
Representações Ltda (TIWA) from Manaus.
The project will be set up as a separate business unit within TIWA, with a management and
cooperation contract with PJT. The long term commitment and relationship is guaranteed
through the participation of PJT Holding in the ownership of TIWA.
The concept of outdoor training & teambuilding is still young in Brazil and, although there are
companies providing these services in the Amazon region, dedicated and professional
facilities are completely inexistent. Currently, trainers approach regular tourist hotels to host
their trainings and each time have to build up and dismantle the training sets. Furthermore,
outdoor activities take place amidst tourism facilities and are disturbed by the lack of a
professional setting.
For PSI the project is interesting because it will introduce a very innovative activity in the
Amazon region. It will also create a significant number of (high level) jobs, when compared
to standard tourism related projects.

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Results
• Result 1 : Project setup and general design finished;
• Result 2 : Detailed Engineering and Ground works finished;
• Result 3 : Building, Outdoor Sites, Pier and Boat built and operational;
• Result 4 : Knowledge base detailed (Training programmes, Handbooks and Safety
Guidelines);
• Result 5 : Training of the staff, certification and marketing development.

CSR aspects
As is already the case with the Resort, the project will implement a Corporate Social
Responsibility concept, with regard to the impact of all its services and operations on
customer, suppliers, employees, shareholders, local communities and the environment.
Although CSR policies go beyond legal obligations, the Centre will obey all legislation with
regard to any of its activities. Environmental standards include approval of all facilities by
IPAAM and IBAMA. All legal aspects with regard to workforce and employee health and safety
issue will apply. Brazilian legislation regarding the Amazon is well developed, but is not often
obeyed. Therefore, recognition of the legal environment is not a loose issue. No deforestation
is needed to build the Centre. An open spot of 2 ha is readily available.
All activities will be safe and technically sound, with no environmental impact. There will be
no machine or motor driven activities.
Typically the Centre will hire and train as much employees as possible from the local
communities nearby. Salaries will be at least 20% above minimum wage and above market
average.
The Social Responsibility Policy of the Centre also will include partnerships with relevant
organisations in this field, especially with the FAS (Fundação Amazonas Sustentavel or
Amazon Sustainable Foundation).

Impact
Long term economic Assuming a successful implementation of the training centre, it
activity is expected that in the 2 years following the pilot, additional
investments will have to be made in an Extension of the indoor
and outdoor facilities, a second boat and extension of hotel
facilities. Annual turnover should reach EUR 2.0 million.

Employment and The project will generate 30 new direct jobs, of which 10 high /
working conditions medium level (managers, supervisors and trainers) and 20 low
level (technical support, waiters and general services). For low
level staff, salaries will be 20% above the legal minimum, for
medium level 3 times and for high level (6 positions) 6 times
the minimum. Employee benefits will also include transport,
meals, adequate clothing and medical services coverage. Two
years after the pilot the number of permanent jobs will have
increased to 45.

Transfer of knowledge The transfer of knowledge concerning team building training is


completely new for the region. Although training programmes
are offered in Brazil, they are not up to the state-of-the-art
standards of European markets.

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Chain effects The Centre will not create large scale 'chain effects' with regard
to its operations. It will however structurally buy food
(ingredients) and maintenance services on the local market,
expanding the outsourcing of the Resort.

Environment The Centre is located outside the urban boundaries of Manaus,


at the edge of the original, untouched Amazon jungle. As such
any of its activities creates the risk of further impact on the
environment in general and specifically on the rainforest. These
risks involve the risk of waste (including water waste) in the
direct surrounding of the Centre, the risk of deforestation and
the risk of noise / light in the direct surrounding. Furthermore,
the transfers by boat create the risk of water contamination.
The Centre will apply a professional waste management,
including securement of all waste to be collected and dealt with
in a professional way (separation, re-use, delivery to adequate
waste handling etc). It will implement waste management
orientations into its purchasing procedures.
With regard to water, all water used will be processed through
the sewage system of the Tiwa Amazonas Ecoresort, that has
capacity to handle 600 persons per day (the resort does not
surpass 150 when fully booked). This installation has been in
place for some years now and is still unique in the wide region.
No trees will be taken down, to create landscape. On the
contrary, 2 ha of the specific location had been deforested
many years ago and the creation of the Centre will allow this
area to become green again. The region directly around the
Centre is still covered by dense tropical rainforest and will be
maintained as such.

Position of women The Amazon Outdoor Training will actively promote the
participation of women in its workforce. Women will receive
equal remuneration as men. Therefore, for the Centre it is
relevant to implement decent working ethics towards women,
starting with the right management culture who will not
tolerate any form of (sexual) harassment.

Page 273 of 290


Honduras

PSI09/HN/21 Establishing the production and export of small


indoor plants

Location Santa Barbara

Sector Agro-industry

Applicant Bunnik Plants Beheer B.V., Bleiswijk, Netherlands

Local partner Matas de Sula SA de CV, Valle de Naco, Santa Barbara,


Honduras

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 969,450 (50 percent PSI contribution)

Goal of the project


The goal of this project is the establishment of a production facility of small indoor pot
plants.

Summary
The applicant, Bunnik Plants Beheer B.V., and the local partner, Matas de Sula SA de CV, are
going to set up a joint venture that will establish a production facility of small foliage indoor
pot plants in the valley of Naco, Santa Barbara, Honduras. In this production facility 4 kinds
of pot plants will be produced; the livistona rotundifolia, the dracaena reflexa, the
chrysalidocarpus lutescens, and the rhapis excelsa.

Results
• Result 1 : Business foundation;
• Result 2 : Field cultivation established;
• Result 3 : Greenhouse facility set-up;
• Result 4 : Existing pack house adapted and operational;
• Result 5 : Business development and certification.

CSR aspects
Both project partners are MPS-A and MPS-GAP certified. The joint venture that they will
establish will be certificated in the same way. Furthermore, with respect to working
conditions, the partners will strive to adhere to the standards set by MPS-SQ as much as
possible.

Impact
Long term economic In the 2 years that follow the pilot phase at least a further
activity EUR 1.0 million will be invested and an additional turnover of
EUR 1.4 million is projected.

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Employment and By the end of the project there will be approximately 66 full-
working conditions time employees, of which 9 are medium / high level
employees. Two years after the project has been completed
there will be approximately 102 full-time employees, of which
14 are medium / high level employees. Most salaries will be
above the minimum wage and employees will receive a range
of fringe benefits.

Transfer of knowledge Employees of the joint venture will acquire knowledge about
the finishing of small pot plants, advanced greenhouse
technology and production techniques and thereby raise local
production standards.

Chain effects During the establishment and operation of the joint venture,
the project partners will contract local suppliers and service
suppliers as much as possible.

Environment The joint venture will be MPS-GAP certified. By finishing the pot
plants in Honduras, the production period will be shortened and
the energy consumption will be reduced due to a more
favourable climate. Through the use of drip fertigation, the use
of water and the depletion of fertilizers into the soil will be
reduced. Finally, for shipment steel crates instead of wooden
pallets will be utilized.

Position of women All job positions within the joint venture will be equally open for
men and women. It is estimated that at least 50% of the
employees will be female.

Other impact The project partners have the intention to invest a certain
percentage of the joint venture's realized profits in a foundation
that will be dedicated to social and community development
projects that will benefit the joint venture's staff, their families
and communities.

Page 275 of 290


Nicaragua

PSI09/NI/01 Piloting the cultivation of fresh herbs for export in


Nicaragua

Location Carazo

Sector Horticulture

Applicant Bar Magen Ltd, Kfar Bnei Zion, Israel

Local partner Holanda Agroindustria SA, Managua, Nicaragua

Third partner Ginosar Valley Agriculture, Ginosar, Israel

Start project 01 July 2009

End project 31 March 2011

Total budget EUR 959,100 (50 percent PSI contribution)

Goal of the project


The goal of this project is to set up the cultivation of fresh chives and basil for export.

Summary
The Israeli applicant, Bar Magen Ltd, trades agricultural products and is the largest supplier
of fresh herbs to the east coast of the USA from Israel. Since the demand for fresh herbs is
growing annually, while production and transportation costs are increasing, Bar Magen wants
to set up a joint venture in Nicaragua for the cultivation and packing of high quality chives
and basil together with Ginosar, an Israeli supplier of a.o. tropical fruit to Bar Magen, and the
Nicaraguan company Holanda Agroindustria.

Results
• Result 1 : Business foundation / inception;
• Result 2 : Herb growing farm set up;
• Result 3 : Herb post harvest handling operational;
• Result 4 : Business development and certification.

CSR aspects
The joint venture will certify its production process for food safety. The plan is to acquire
PRIMUS certification for the entire production process. This certificate, developed in the USA,
addresses FDA / USDA guidelines, covering Good Food Practices (GAP), Good Manufacturing
Practices (GMP), Sanitation Standard Operating Procedures (SSOP) and Hazard Analysis
Critical Control Point programme (HACCP).

Impact
Long term economic In the first 2 years after the completion of the PSI project
activity follow-up investments to the tune of EUR 1.0 million are
anticipated. The turnover in 2012 is expected to be
EUR 1.9 million.

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Employment and At the end of the PSI project the joint venture will employ
working conditions 55 staff. Another 100 will be added within 2 years after the
project. As the joint venture will be in a Free Trade Zone,
salaries will be well above minimum wage.

Transfer of knowledge The project will introduce cultivation of herbs in greenhouses to


Nicaragua, which knowledge is not present in Nicaragua at this
time. Staff will get acquainted with greenhouse technology and
production techniques.

Chain effects During the establishment and operation of the joint venture,
the project partners will contract local suppliers and service
suppliers as much as possible.

Environment The environmental impact will be limited as production will take


place in greenhouses covered by plastic and insect proof nets.
The joint venture will be PRIMUS certified to cover hygiene and
environmental aspects. Soil disinfection will be realized through
solar radiation.

Position of women Work in the nursery and activities such as transplanting,


sorting and grading will mainly be done by women. The
estimation is that at least 60% of the employees will be female.

Other impact The joint venture will contribute a certain percentage of its
realized profits to social activities and local communities.

Page 277 of 290


Peru

PSI09/PE/01 Dairy Factory Peru

Location Arequipa

Sector Agro-industry

Applicant Machinehandel Lekkerkerker B.V., Lopik, The Netherlands

Local partner Agrícola Pammpa Baja SAC, Arequipa, Peru

Start project 15 July 2009

End project 15 November 2011

Total budget EUR 1,495,000 (50 percent PSI contribution)

Goal of the project


The project aims at setting up a milk processing plant in Arequipa, with a daily production of
25,000 litres of Cream Yoghurt with Tropical Fruit, 1,000 kg of 48+ Gouda Cheese and
15,000 litres pasteurised milk for the Government school-programme.

Summary
In the Arequipa Department in southern Peru, there is no dairy processing plant producing
higher added value products. All milk produced by local farmers is purchased by 1major dairy
processor who evaporates the fresh milk in a local plant, then transports it to Lima for
further processing. Recipient, Agricola Pampa Baja (APB), is a local farm with a daily
production of 30,000 litres of milk, and wants to increase its added value by locally
producing new products like yoghurt and cheese. Applicant Machinehandel Lekkerkerker B.V.
(ML) runs a dairy plant in Lopik and also manufactures processing equipment for the food
industry. In Peru ML sees a good opportunity to operate a modern dairy plant, as well as for
marketing its products. It will set up a joint venture with the recipient and build a dairy
processing plant – some 100 km outside the city of Arequipa – to produce Cream Yoghurt
with natural fruit, high fat 48+ mature Gouda Cheese and Pasteurised Fresh Milk in special
dispensers for school programmes. These are new products for Peru, and will create added
value and several new jobs in the region.

Results
• Result 1 : Joint venture established;
• Result 2 : Processing building finished, all equipment installed and operational;
• Result 3 : Employees contracted and trained, contracts with fruit suppliers;
• Result 4 : Commercial operations started, distribution system implemented.

CSR aspects
The project will be HACCP certified, and also get a certification from the Peruvian Health
Department. Local partner has its own CSR policy that is applied to the complete farm.

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Impact
Long term economic Follow-up investments amount to EUR 4.5 million for expansion
activity of the milk reception capacity, a second pasteurisation unit and
doubling of the cold storage.

Employment and The project will generate 30 direct jobs, of which 11 of a high /
working conditions medium level and 19 of a basic level. For production operators
salaries will be twice the legal minimum. Two years after the
pilot the number of permanent jobs will have increased to
53 (17 high / medium and 36 low level).
Besides good primary working conditions, employees will have
benefits such as:
• 13 months salary per year;
• Health insurance;
• Pension plan;
• Daily lunch;
• 30 holidays per year;
• Transport to and from the farm.

Transfer of knowledge The technology for the production of cream yoghurt with
concentrated fruits is new to Peru.

Chain effects The main effect on the chain are the fruit supply contracts, that
will generate income for at least 100 small fruit producers.
A long term contract will be signed with Fruit Products S.A.C. in
Lima, a modern processing plant who will process 6,000 tons
per year of fresh fruit into concentrated pulp, that will be
supplied in aseptic packages.

Position of women About 50% of the workforce will consist of women.

Page 279 of 290


Peru

PSI09/PE/02 Introducing subsurface drip irrigation and organic


asparagus growing to Peru

Location Chincha Alta

Sector Organic agriculture

Applicant Van der Staaij Barendrecht B.V., Barendrecht, The Netherlands

Local partner Crystal Ocean SA, La Molina, Peru

Start project 01 July 2009

End project 31 March 2012

Total budget EUR 1,500,000 (50 percent PSI contribution)

Goal of the project


Setting up a farm (50 + 50 ha) for the production of organic (450 tons per year) and
conventional Asparagus (500 tons per year), introducing subsurface irrigation technology, in
the desert area near Chincha Alta.

Summary
Peru is world's leading producer of fresh asparagus, with total exports amounting to
USD 235 million (2007). Peru also has large areas of desert land, that is perfectly suited for
growing asparagus, provided there is a good irrigation system available. Being a desert area,
with no previous agricultural activity or contamination, this land is also ideal for the start of
organic production. In 2008 Crystal Ocean (Lima) has acquired 380 ha of such virgin desert
land, approximately 30 km east of Pisco (250 km south of Lima). The plot has good access to
water for irrigation and, of the total 380 ha some 250 ha are suitable for cultivation. Van der
Staay (Barendrecht) is a trader in fruit and vegetables, and wants to invest in the cultivation
of asparagus in Peru to ensure the own supply of fresh and, if possible, organic asparagus.
Both partners will set up a joint venture, that will introduce production of organic asparagus,
as well as sub-surface drip irrigation in Peru, on an area of 100 ha initially.

Results
• Result 1 : Joint venture established, required licenses obtained;
• Result 2 : Infrastructure, groundworks and office / sanitary building finished;
• Result 3 : Plantation of 50 ha asparagus using SDI, established;
• Result 4 : Plantation of 50 ha organic asparagus established;
• Result 5 : Business development and certification.

CSR aspects
The joint venture will have explicit Corporate Social Responsibility (CSR) policies with regard
to Social standards, Safety & Environment issues, Production Process Certification and
policies regarding salaries and secondary benefits, as well as policies regarding gender equal
opportunity enforcement.

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With regard to Safety & Environment, the joint venture will develop and implement a policy
concerning workplace health and safety. Focus areas are safe storage and use of fertilizers
and pesticides, safe use of machineries and tools, and hygiene. Staff will receive protective
clothing and be assured enough working breaks and sanitary facilities. The joint venture will
also formulate an environmental policy as part of the company's manual with regard to water
safety, environmental friendly disposal of packing material and reduced energy consumption.
Responsible water usage is guaranteed through the application of SDI and strict
environmental standards are adhered to through Organic guidelines.
With regard to process certification, organic production will be certified by an accredited and
independent certifier (Control Union). The full operation will be GlobalGAP certified.

Impact
Long term economic An expansion of the production area to 300 ha is foreseen
activity within the first 2 years following project completion. The main
investment will consist of the seedlings, organic manure and
irrigation equipment for an additional 150 ha. Also, investment
in an IQF line is foreseen to freeze C-quality asparagus tips and
pieces for stir-fry vegetables mixes.
Turnover is expected to have increased to EUR 2.0 million in
the second year after the project's completion, eventually
reaching EUR 3.5 million once the 300 ha are in full production.

Employment and At the end of the project the joint venture will employ 121 staff
working conditions on a full time basis, of whom 6 of a high level, 8 of medium
level and 107 of a low level. For low level jobs salaries will be
10% above the legal minimum, for medium level 3.5 times
minimum and for high level 10 to 20 times minimum.
Two years after the pilot the number of permanent jobs will
have increased to 283 (8 high, 13 medium, 262 low level).
In addition to good primary working conditions, employees will
have:
• performance based bonuses (for unskilled production
workers);
• doctor's services paid for by the joint venture;
• free daily meal at the canteen;
• free transport to and from the farm.
Another 150 seasonal workers will be needed each year for
every 2 month-harvest campaign, corresponding to 25 fte.

Transfer of knowledge New knowledge will be introduced in the practices of SDI and
Organic asparagus farming. The plantation of the joint venture
will double as demonstration field for other farmers,
government officers and agricultural universities in the region
interested in the results of SDI and its suitability for asparagus
growing in the desert of Peru. Knowledge transfer and
increased awareness about soil and crop management and pest
and disease management attuned to organic standards will lead
to sustainable agriculture practices in the asparagus industry of
which future generations will benefit.

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Chain effects Besides direct jobs, the project will generate an additional
economic activity in several parts of the chain: nurseries for
asparagus plants, cattle farms for the sale of manure, mechanic
workshops for maintenance of equipment, transportation
companies, and so on. According to estimates of a large
Peruvian player in the logistics of fresh asparagus, 36% of the
value generated from production to port of dispatch (including
air transportation) corresponds to farm activities; 16% to
activities performed in the packing houses; 1.5% to land
transportation; 1.6% to storage, loading and export logistics in
the port and 45% percent to air transportation. This means
that for each Euro generated at the farm, almost EUR 2.0 value
are added in the chain by other entities.

Environment The effect of the project on the environment is close to neutral,


or even positive if compared to conventional asparagus
cultivation. The introduction of SDI will save about 2.5 m3 of
water per year per hectare, given 25% of savings compared to
conventional drip irrigation. The absolute water consumption of
course has some negative impact on the natural resources, but
this is professionally managed by the local water authority, who
issues permits and quota for every project that uses large
volumes of water.
The organic cultivation of asparagus uses no chemical
herbicides or pesticides and therefore has a positive effect on
the environment.

Position of women The project will create at least 30 permanent jobs for women.
More important perhaps is that at least 75% out of 300
seasonal workers (harvesters, packers) will be female.

Other impact The advantages of SDI are not restricted to asparagus only but,
if successfully implemented, will be an important innovation for
Peruvian horticulture at large.

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Suriname

PSI09/SR/02 Establishment of HACCP-certified meat processing


for export

Location Paramaribo

Sector Agro-industry

Applicant Jozef Hassan Holding B.V., Utrecht, The Netherlands

Local partner Verenigde Cultuurmaatschappijen N.V.,


Paramaribo-Zuid, Suriname

Third partner VABI N.V., Paramaribo, Suriname

Start project 01 July 2009

End project 30 June 2011

Total budget EUR 1,244,000 (50 percent PSI contribution)

Goal of the project


To set up a meat processing facility with a maximum capacity of 35,000 kg sausages
(20,000 kg beef sausage and 15,000 kg Frankfurter) per week for export to the EU.

Summary
The project partners intend to set up a meat processing facility where sausages will be
produced for export. In order to be able to export to the EU, HACCP certification and EU
approval for the facility must be gained.
In order to be able to export to the EU, meat will be sourced from Brazil as there are no EU
approved sources for meat at his time in Suriname. There are numerous EU approved farm
and slaughterhouses in Brazil. During the PSI project the process to acquire EU certification
for 2 local cattle farmers and a slaughterhouse will be started in order to make local sourcing
possible in time.
Jozef Hassan operates a HACCP certified meat processing facility in Utrecht with a capacity of
200 tons per week. Here various lamb and chicken products are being manufactured. The
local partner is Verenigde Cultuurmaatschappijen. The company has been active in cattle
production since the 1950ies. The major shareholder Mr Van Alen participates in various
other companies including chicken farms, construction material producing companies and a
slaughterhouse. Partner in the project, VABI N.V., is a sister company of Verenigde
Cultuurmaatschappijen, it produces construction elements. The company will be involved in
the project as co-financing partner.
A few years ago Jozef Hassan initiated the project in order to profit from the low import
status Suriname has as an ACP country. By processing meat in Suriname an important
advantage could be acquired. For that purpose Jozef Hassan Holding B.V. established a new
temperature controlled facility in Suriname in 2006. EU approval could however not be
acquired as no processing line was established yet. Until today the building remained unused
as the additional investments needed for the processing line were not done. The current
partners will take the project one step further and will invest in a processing facility which
will be installed in this unused building.

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Results
• Result 1 : Business foundation;
• Result 2 : Processing line finalised, employees recruited and trained;
• Result 3 : Training of staff;
• Result 4 : Export certification and business development.

CSR aspects
As HACCP certification is an important issue for the project, issues like workers health and
safety and HRM policy will be tackled.
With time the project will enhance companies in Suriname involved in meat production. As
the project partners intend to export Suriname meat to the EU this will stimulate the
upgrading of the sector in order to meet EU requirement such as a registration system for all
cattle, a disease monitoring system as well as a qualified and certified laboratory.

Impact
Long term economic The expected total investment in the 2 years following the PSI
activity project is EUR 700,000. Depending on market developments,
other production lines for hamburgers, chicken nuggets, etc will
be set up.
The turnover in the second year after the PSI project is
expected to be EUR 3.0 million.

Employment and At the end of the project the joint venture will employ 22 staff,
working conditions 3 high level, 3 medium level and 16 basic level.
The joint venture will pay at least 35% above average for
comparable positions.
In the 2 years following the PSI project another 17 employees
will be contracted, 15 production staff and 2 support staff.

Transfer of knowledge As the joint venture will operate according to EU standards,


local employees will need extensive training. HACCP, although
not new to Suriname is not largely applied, certainly not in
meat processing.

Chain effects The project can enhance development in the meat sector in
Suriname. The intention is that after the PSI project is finished
a slaughterhouse and 2 meat producers will also be encouraged
to upgrade, qualify for HACCP and achieve EU certification. This
could partly replace the sourcing of meat from Brazil.

Environment There are no expected environmental risks.


There is no organic waste to be disposed of and water used to
clean the plant will be collected in tanks. Here organic matter
will be broken down by bacteria before the water is discharged
into the sewer.

Other impact As EU certification of the plant is a prerequisite, and the


ministry of LVV in Suriname will play a large part in acquiring
this approval the project can boost the ongoing development in
the ministry in setting up a laboratory and relevant inspections.

Page 284 of 290


Suriname

PSI09/SR/03 Establishing a Dedicated Maroon Wellness Centre

Location Domburg

Sector Services / Tourism

Applicant Tacstone La Rive B.V., Hilversum, The Netherlands

Local partner Bouwbedrijf Kiesel N.V., Paramaribo, Suriname

Third partner The Wellness Company B.V., Amsterdam, The Netherlands

Start project 01 July 2009

End project 31 December 2011

Total budget EUR 1,287,366 (50 percent PSI contribution)

Goal of the project


To establish a wellness centre offering various wellness treatments as well as food and
beverages. The wellness centre has a maximum annual capacity to serve 8,000 guests,
receiving 12,000 treatments.

Summary
The project partners intend to set up Maroon Wellness Centre in Domburg, on the riverbank,
near Paramaribo. The centre will offer treatments based on Maroon culture and wellness
treatments in order to attract international wellness tourists as well as locals seeking
wellness treatments. A Maroon knowledge centre will be part of the project. Here information
with regard to the culture and practices of the Maroon will be provided.
Applicant Tacstone La Rive B.V. is a business development company. Local partner is
Bouwbedrijf Kiesel N.V., a construction company undertaking both utility, building, civil
works and renovation projects. The consortium is completed by the Dutch company De
Wellness Company. De Wellness Company is the mother company of Puur & Kuur, a wellness
travel organisation.
Also involved in the project are Fytotheek Pakosie, Living Well SPA & Wellness Group as well
as 24H-Architecture.
The intended site is located along the Suriname River and the Para creek, 25 minutes by car
from Paramaribo. At this centre treatment will be offered derived from the Maroon culture
and using herbs from the tropical forest in combination with known wellness treatments such
as baths and massages. Furthermore, a riverside restaurant, lounge and bar will be added in
Maroon style. In addition to the buildings, equipment and facilities such as a pool, herbal
baths, steam baths, hot tubs, foot baths and massage tables will be needed.
Based on the growth in wellness tourism and the lack of a specific wellness resort in
Suriname – or even Latin America – the partners see good business potential in realising the
project.

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Results
• Result 1 : Business foundation;
• Result 2 : Maroon wellness centre set up;
• Result 3 : Maroon wellness concept development and staff trained;
• Result 4 : Business development.

CSR aspects
The joint venture will acquire a recognised eco-certification in the travel and tourism industry
and will be a general member of ISPA. ISPA is the International SPA association.
With regard to the staff the aim is to have al least 1staff member certified as ISPA certified
spa supervisor and 1member will be certified in retail management for spas.

Impact
Long term economic In case there is enough interest a second Maroon Wellness
activity Centre will be established requiring an investment of
EUR 2.0 million.
An expansion of the facilities would require an investment of
EUR 300,000.

As a parallel investment 15 villas and 15 apartments / studios


will be built by the project partners in order to accommodate /
house wellness tourists. The required investment needed is
EUR 2,240,000.

Employment and At the end of the PSI project the joint venture will employ
working conditions 26 staff, 6 high level, 9 medium level and 11 low level.
Two years after the PSI project the amount of employees will
be 38. Of these 7 will be high level, 14 medium and 17 basic
level.
Personnel will receive above average wages. Furthermore,
employees will be given health insurance. A company canteen
will be constructed and a first aid specialist contracted and
clothing provided for employees.

Transfer of knowledge Employees of the joint venture will be given training in Maroon
culture as well as dedicated wellness aspects.

Chain effects Food and beverages will be bought locally. Vegetables and
fruits will be purchased from farmers that offer naturally grown
products.

Environment The impact on the environment will be neutral.


Measures that will be taken to ensure a low impact on the
environment include:
• Rainwater collection and filtration for drinking, river water
filtration for irrigation and pool water;
• Solar energy for power and led lights;
• Composting of green waste.

Position of women Women will make up 65% of the staff.

Other impact Preservation of Maroon culture and an increase in awareness of


their culture.

Page 286 of 290


Suriname

PSI09/SR/22 Strengthening of the Suriname Rice Industry

Location Nickerie

Sector Agriculture

Applicant Alesie Food Holland B.V., Ootmarsum, The Netherlands

Local partner Sahara Rijsthandel N.V., Paramaribo, Suriname

Third partner Caribecom Trading B.V., Ootmarsum, The Netherlands

Start project 01 January 2010

End project 31 December 2011

Total budget EUR 728,768 (50 percent PSI contribution)

Goal of the project


To set up a rice mill for the production of 160 tons parboiled rice per month.

Summary
The intention of the project partners is to set up a factory for the production of parboiled
rice.
EU policy for the import of rice was adapted in 2008. As a result the quota for Suriname was
increased and import is duty free. Production and export in Suriname is therefore an
interesting business proposition. Furthermore, the CARICOM market is duty free for
Suriname rice. As parboiled rice is a healthier product than regular rice a premium is usually
paid. This higher price will in turn make it possible to pay a better price for paddy rice to
farmers and of course more income for the mill.
The rice plant will be set up in the Nickerie region where the rice will be sourced from local
farmers. A group of 50 preferred suppliers of rice will be trained and HACCP certification will
be gained for the rice plant.
Applicant Alesie Food Holland B.V. − a rice trading company − will set up a joint venture with
local partner Sahara Rijsthandel N.V. - producer and processor of white rice and Caribecom
Trading.

Results
• Result 1 : Establishment of the joint venture;
• Result 2 : Set up of rice milling equipment;
• Result 3 : Set up of parboiled plant;
• Result 4 : Production and marketing.

CSR aspects
The production facility will be HACCP certified. Furthermore, the joint venture will provide
free medical check ups for their employees, and a HIV / AIDS prevention programme will be
set up.

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Impact
Long term economic To increase production volumes to 12,000 tons (based on
activity 2 shifts) an additional EUR 200,000 will be invested in
parboiling and milling equipment.
In time also investments will be needed in a separate air
conditioned room and packaging machines which will cost
EUR 100,000.

Employment and At the end of the project the joint venture will employ 35 low
working conditions level employees and 3 high level employees.
Two years after the PSI project this will have risen to 45 low
level employees and 5 high level employees.
The joint venture will pay at least 15% above the average
wage.
Protective clothing will be distributed.

Transfer of knowledge New will be the way and technique to produce high export
standard parboiled rice. The rice milling itself is not new, but
rather the specific way parboiled rice is produced and the re-
use of paddy hulls for drying.
Furthermore the training given to farmers will stimulate them
to use less pesticide. Furthermore, their yields can be
improved, with the introduction of eco-friendly pesticides. Now
farmers harvest about 4 tons per hectare in Suriname. In the
USA, as comparison, this can go up to 20 tons per hectare.

Chain effects Fifty farmers will be organised in a farmers association. These


farmers will receive a higher price for their paddy (USD 10 to
20 tons above market price), provided the rice is of a good,
constant quality.

Other rice millers will be invited to demonstrate the new


technology to. Not only the parboiling process, but also the
husk furnace.

Environment The joint venture will make use of a cyclonic husk furnace to
burn paddy husks. In other rice mills these are simply gathered
and burnt in the open air.
By using the furnace the amount of waste will be reduced and
use of diesel, commonly used for drying will, not be necessary.
Outgrowers will be trained on how to use less pesticide, putting
less pressure on the environmental.

Position of women The joint venture expects to employ about 40% women.

Page 288 of 290


Suriname

PSI09/SR/24 Establishment of a manufacturing facility for


innovative dog chewing products

Location Paramaribo

Sector Industry

Applicant Hasmo B.V., Hoogeveen, The Netherlands

Local partner Suribreed N.V., Paramaribo, Suriname

Start project 01 January 2010

End project 30 June 2012

Total budget EUR 1,117,600 (50 percent PSI contribution)

Goal of the project


The goal of this project is to set up a production facility for the production and export of
8 tons dog chewing products weekly.

Summary
The project partners intent to set up a production facility for the production of pet rewards.
Based on the favourable international market trends for pet rewards Hasmo, a pet reward
manufacturer from Hoogeveen, The Netherlands, initiated the project. Because of the
abundant availability of raw materials and lower production costs, Suriname was chosen as
project location. Hasmo approached Suribreed to be involved as local partner.
The partners will set up a joint venture in which each partner will hold 50% of the shares.
Two products will be produced by the joint venture: jerky, a standard dog chew, and
evergon, a new product.
The investment will be made in 2 production lines, extrusion and injection moulding as well
as additional (packaging) equipment and adaptations of the building, located in Paramaribo.
There is no manufacturing of pet rewards in Suriname. The new activity and innovative
product as well as the local sourcing of raw materials will stimulate the Suriname private
sector.

Results
• Result 1 : Business foundation;
• Result 2 : Manufacturing unit established;
• Result 3 : Quality management and certification;
• Result 4 : Business development.

CSR aspects
The aim is to set up a production facility that will meet all EU requirements regarding health,
safety, environment and labour standards. The company will acquire GMP+ certification and
thereby operate in accordance with good manufacturing practices for the animal food
industry. Furthermore BRC certification will be acquired as well.

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Impact
Long term economic The joint venture partners intend to double the production
activity volumes in the 2 years after the PSI project and to diversify in
more evergon varieties. To create another production line,
investments will be made in extrusion equipment. In this way it
will be possible to run several smaller production lines instead
of one production line with high capacity. In this way different
phases in the production can take place simultaneously and
more than one sort of product can be produced at the same
time. An extra investment of EUR 500,000 is expected.

Employment and At the end of the project the joint venture will employ 10 fixed
working conditions staff and 5 temporary staff. This equals 13 full time employees,
10 low level and 3 high level. Two years after the PSI project
this will have raised to 22 employees, 17 low level and 5 high
level. The wages will be at least 15% above the minimum
wage. Furthermore, health care will be provided to employees.

Transfer of knowledge Both jerkys and evergon are new products to Suriname. The
knowledge needed to produce the products, specifically given
the local circumstances with regard to humidity and
temperature will have to be transferred.
GMP+ certification of a pet reward facility is also a novelty in
Suriname.

Chain effects The joint venture will source raw materials locally as much as
possible, specifically rice flour. In view of the joint venture's
certification requirements, local rice flour suppliers need to be
HACCP certified. Manglie and Rijstpak, 2 identified potential
suppliers, are currently both ISO and HACCP certified. Other
materials such as packaging materials will be purchased locally
as much as possible. Animal flour may be bought locally in due
time, during the first phase this will be imported in order not to
take any unnecessary risks.

Environment The joint venture will produce very little waste. All raw
materials will be used to produce the pet rewards, any spillage
can be reintroduced to the production chain. The only water to
be released is the water that will be used for regular cleaning of
the facility.

Position of women Impact on the position of women will be neutral.

Other impact The project will increase the total export of Suriname and
diversificate the private sector.

Page 290 of 290

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