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PSI: Private Sector Investment Programme

Funding Opportunity by the Netherlands for Private Sector

What is PSI
The goal of PSI is to promote sustainable economic development by means of stimulating innovative pilot investments in developing countries. The project must contribute to a long term cooperation between the two companies. For that:
After the project period, the companies need to make additional investments that contribute to further growth of revenue and employment.

How Much Funding is Offered


For 2013 a budget of 90 million euro is available. The maximum project budget for a PSI project is EUR 1.5 million. For PSI Plus, the contribution is 60 percent of the project budget.
As a result, the maximum contribution is EUR 900,000

How the Funding is Made


PSI projects are result-based. This means that the grant is disbursed upon the realization of results that are determined before the start of the project. PSI Plus offers more flexible conditions for projects in Afghanistan, Burundi, the Democratic Republic of the Congo, Pakistan, the Palestinian Authority, Sierra Leone and southern Sudan.

What is Being Subsidized


Costs for sustainable capital goods (hardware), which will be used for the production process, excepting existing buildings and land; - Costs for technical assistance, such as project management, training, advisory costs, certification.

Projects Funded in Pakistan


Production of Calcium Chloride Prills Nivoba B.V., Veendam, The Netherlands CRV Holding B.V., Arnhem, The Netherlands Ittehad Chemicals Limited, Lahore, Pakistan EUR 947,000

ProFarm Pakistan Ltd

ProFarm Pakistan EUR Ltd, Lahore, 1,009,587 Pakistan

Fine fragrance and flavour extract manufacturing with benign solvent extraction
Muta Pakistan Project (MPP), Production and sublimation of sportswear

Feyecon Development & Implementation B.V., Weesp, The Netherlands


Muta Sport B.V., Leeuwarden

Kasur Straw Board Factory, Lahore, Pakistan

EUR 540,000

Capital Sports Corp. (PVT) Ltd, Sialkot, Pakistan

EUR 775,000

Project Steps

DISCUSSING PROJECT IDEA

APPLICATION

EVALUATION

Subsidy granting and implementation

Monitoring

STEP 1: DISCUSSING YOUR PROJECT IDEA


have identified a challenging but realistic opportunity for a long-term investment in a developing country. believe the investment is innovative for the country in question. You have a local company as an investment partner the risks are high and as a result, commercial financing is not available.

STEP 2: APPLICATION
PSI is a tender programme. This means that applications compete with one another in an open competition, held twice a year. For PSI Plus, competitions are held three times a year. In 2010, :
8 February, 23 August, always closing

Results
The PSI grant is result-based. This means that the grant will be provided in phases upon realisation of a number of results. In the application form you are asked to divide your project into a maximum of five clearly defined results, grouped according to activity and spread over the duration of the project. These general results should then be divided into more detailed sub-results with corresponding means of verification.

Corporate Social Responsibility (CSR)


An overview needs to be given concerning the current CSR policies of the companies involved in the application. In addition the applicant company either needs to include a CSR policy with the application or submit with the First Project Result. Furthermore, you are asked to include CSR-related (sub-)results in your application. Special attention should be paid to the theme child labour and/ or forced labour.

STEP 3: EVALUATION
This assessment will take approximately 19 weeks. The application must have a sufficient score on each of the three main categories of criteria (Partners, Project and Impact). Apart from a good overall score on the main criteria, there are a few sub-criteria which are considered crucial. Applications will be rejected if they fail to meet the criteria on financial standing of the partners (1E), innovative character of the project (2B), potential for growth of the project after completion (3A), chain effects (3D), environmental impact (3E), or position of women(3F). The maximum project duration is 30 months.

Step 4: Subsidy granting and implementation


Subsidy granting Progress reporting If the period between the completion of two results is more than 6 months, an intermediary progress report should be submitted. In this report, the applicant should update NL EVD International on the implementation of the project and possible problems encountered. Advance payments Fixing of subsidy Information after fixing

Step 5: Monitoring
During the course of the project, NL EVD International will monitor project progress on the basis of the progress reports provided upon completion of the results, or at least every six months if the period between two results is longer than six months. Regular visits to the project location and to the partners also constitute part of the monitoring process. A Project Advisory Committee (PAC) meeting will be organised at least once a year to discuss project progress. This meeting will be attended by the applicant, the local partner, possible third partners and the PSI Project Officer. The Dutch Embassy of the country in question and the local authorities will also be invited to these meetings.

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