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