Private Sector Investment (PSI) and Match Making Facilities (MMF) Amman – Jordan September 2013

2 Content 1.Private Sector Investment Program: what is PSI? 2.Projects: conditions and examples 3.Criteria: partners, projects and impact 4.How to start? 5.Match Making Facilities (MMF) 6.Contact information

September Private Sector Investment Program (PSI) What is PSI? Subsidy program of the Dutch Ministry of Foreign Affairs / Foreign Trade & Development Cooperation Supports innovative investment projects in emerging markets To stimulate local private sector development by creating long- term sustainable employment and transfer of knowledge 60 countries worldwide

September Conditions of PSI-projects (I) A PSI Project… Is a joint investment project by a Dutch company and a local Jordanian company Can be in any sector: commercial or industrial Is modest in size: an investment budget of maximum €1.5 million, SME’s prefered Has an innovative effect: new to the country or sector Has a maximum duration of 30 months, 36 months for projects dependent on seasonal influences Starts as a pilot – commercially viable and scaled-up after PSI phase Has a measurable positive impact on the local economy: employment, income, environment, consumers, corporate social responsibility

September Subsidised costs PSI subsidises 50% of eligible costs of an investment project, to a maximum of €750,000. The total project budget cannot exceed €1,5 million.  Take note: co-funding by other (Dutch) government agencies is not permitted Eligibility* Sustainable capital goods (hardware), which will be used for the production process, except existing buildings and land; Technical assistance, such as project management, training, advisory costs, certification. * See application form appendices for detailed information on eligibility Conditions of PSI-projects (II)

Netherlands Jordan Cooperation 50 % PSI Grant September 20136

Project examples (I) Project I - “Breeding Of Disease Tolerant Vegetable Seed” Gebr. Bakker – Zaadteelt & Zaadhandel (NL) & Alquabas Agricultural Co. (JO) Goal: establish a seed breeding centre in Jordan for breeding tolerant or resistant vegetable varieties Budget: € 964,300 (50% PSI contribution = € 482,150) CSR aspects: improved working conditions, women employment, transfer of knowledge – the agricultural faculty University of Amman, reduce the use of chemical pest, and a contribution to the food security. September 20137

Project examples (II) Project II - “SunCycle Middle East” Suncycle Technology BV (NL) & Jordan Medical Supplies & Services Co. (JO) Goal: Establising a manufacturing facility for Suncylcle Solar energy systems – selling units a year in Jordan and neighbouring countries Budget: € 1,500,000 (50% PSI contribution = € 750,000) CSR aspects: Introducing new technologies, further introduction of green energy in the community, a joint venture of commercial and non-commercial partners in the sector, reducing the dependence on fossil fuels September 20138

9 Criteria - Partners Applicant is a Dutch company that is active for at least 2 years; Recipient is a Dutch-Jordanian joint venture, registered in Jordan; Companies have substantial economic activities and experience; Partners are financially sound and reputable (due dilligence); The project is in line with core business of the partners; Partners set up a long term cooperation (preferably a joint venture); Partners show they have financial means to support own contribution; Preference for SMEs; Preference for local ownership of partner company; No child/forced labor.

10September 2013 Criteria - Projects 1.Commercial plan Demonstrable market Innovation and no market distortion Risk analysis 2.Operational plan Clearly defined results (SMART) Pilot scope Training personnel 3.Financial plan Commercial viability Commercial funding not possible

September Criteria - Impact Growth potential after project completion Lasting employment with good wages and working conditions Transfer of knowledge Chain effects Positive impact on the environment Positive impact on the position of women Positive impact on other related areas

September 2013 How to start? 1.You have an innovative project idea?  Find a Dutch partner (or be found) 2.Visit the website 3.Read the instructions and format for the project application 4.Fill out and submit intake form (Embassy’s website, not obligatory) 5.Discuss your idea with the Embassy and/or PSI project officer  If positive reaction: make an application and submit the complete application before the deadline Two tenders each year. Per tender approximately €2.4 million for 4 countries. Deadlines: 2014

September Match Making Facilities (I) The bridge to the Netherlands and PSI Target group: Companies looking for a Dutch partner Goal: Structural cooperation, long term and constructive relationship Knowledge transfer Trade Investment cooperation – cooperation should lead to PSI proposel

September Match Making Facilities (II) Applicants should… Be a local company – focus on SME’s Exists two years or more Have a solid financial structure Have a good idea for cooperation Have a workforce of at least 10 people When applying, think about… A well-elaborated business plan What partner you’re looking for: give as many details as possible on the partner you are searching Completeness: the more information you provide, the better your chances for positive screening and matchmaking The unique selling points of your plan

September Match Making Facilities (III) Step 1 - Application Download the intake form at the Embassy’s website Fill in the form completely and send it back to the Embassy Step 2 – Screening The Embassy will screen your appliciation Step 3 – Making the match Positively screened applications will be forwarded to Agency NL Agency NL will approach potential Dutch business partners Step 4 – Shaping the cooperation The consultant is assigned by Agency NL (MMF) based on sector expertise The consultant is paid by Agency NL

September Match Making Facilities (IV) What will the consultant do? A quick scan for the Dutch company Organizing a visit program for you to the Netherlands (own expenses) Creating a follow-up plan with short and long term goals Evaluating the process so far

MMF in Jordan In 2012, the first year of the MMF’s application to Jordan, two Jordanian companies have succesfully applied to the MMF: 1.Berenice Beach Club: a proposal for cooperation with Dutch tourism companies to facilitate a charter business in order to bring tourist from the Netherlands and neighbouring countries to Aqaba. 2.Amman Pharmaceutical Industries: a proposal for a business opportunity in the Netherlands, either by finding an eligable and capable buyer or by finding a strategic partner who has an interest in manufacturing in Jordan.

September In short: 1. Create a business plan 2. Send MMF intake form to the Embassy 3. Agency NL Match Making Facility Trade relationship Opening export market PSI Proposal

19September 2013 Embassy of the Kingdom of the Netherlands Commercial assistant Private Sector Investment program Project Officer for Jordan