Private Sector Investment programme PSI 2013 Ben Rutten Alliance Plus RWANDA

Page 2 May, 2013Page 2 In this presentation: 1. What is PSI? 2.PSI Subsidy in Rwanda 3. Project criteria 4. Examples of approved PSI projects 5. Criteria for partnership 6. Criteria for project proposal 7.Impact on local economy 8. How does it work? 9. How to apply for PSI? 10. Interested? / More information

Page 3 May, 2013Page 3 1. What is PSI? PSI provides funding for investments in emerging markets Open to more than 50 countries worldwide Investments executed by partnership of two private sector companies Why? Private sector development is driving force behind poverty alleviation

Page 4 May, 2013Page 4 2. PSI subsidy in Rwanda PSI provides subsidy of 50% of the total project budget (as a grant) - this 50% is paid in various steps Maximum project budget is € 1,5 million (there is also a minimum) Budget consists of Hardware and Technical Assistance Remaining 50% is financed by the local company applying for PSI, together with project partner

Page 5 2. PSI subsidy in Rwanda May, 2013Page 5

Page 6 May, 2013Page 6 3. Project characteristics All sectors of the economy are eligible Pilot character: risky and small scale, pilot plant Innovative character: new to the country, (nothing of this kind available) Activity is commercially viable after start-up phase Impact on local economy: training/knowledge transfer, employment and income, environment Partnership between Dutch or foreign and local company Investments in hardware and technical assistance Green project, good benefits workers, animal friendly environmental friendly etc.

Page 7 May, 2013Page 7 4. Typical examples of approved PSI’s Egg processing plant Liquid and/or solid fertilizer plant Grafted vegetable seedlings Integrated poultry project (production & slaughterhouse) Export chain for export herbs Metal waste recycling Capsicums for export Cattle feed production, cattle and poultry slaughterhouse Fish nursery Feedmill Leasing company for construction machinery Factory for making cheap bricks from local material Cheese factory Yoghurt and milk processing factory

Page 8 May, 2013Page 8 5. Criteria for partnership Applicant is a foreign private sector company Recipient is a local private company Project is in line with core business of the partners and involves local investments Partners are financially sound Partners set up a long term cooperation (preferably a joint venture)

Page 9 May, 2013Page 9 6. Criteria for project proposal Thorough market analysis: competitors, innovative aspect, commercial viability => Business plan Clearly defined results with regard to production and sales figures, employment, training etc. Realistic project budget (hardware and technical assistance) Sound financial plan (cash flow analysis) Clear operational plan Impact on local economy Explain environmental impact and Corporate Social Responsibility

Page 10 May, 2013Page Impact on local economy Direct and indirect employment created Introduction of new technology or product Transfer of knowledge (training) Income effects and sound working conditions Chain effects (SME's, outgrowers, etc.) Impact on the position of women Impact on the environment Corporate Social Responsibility CSR !

Page 11 May, 2013Page How does it work? Two PSI tenders each year Next tenders PSI: - February 2013, - August 2013

Page How to apply for PSI via Alliance Plus? Alliance Plus (AP) will propose a contract on a no cure – no pay arrangement with small commitment deposit Succes fee (on subsidy) for company to do PSI application ~ 10% AP will be active in finding a partner company AP will obtain all relevant information from the project partners to make the PSI application AP will submit the PSI application and communicate with the PSI organisation AP will guide the PSI project during its implementation and provide administrative support during whole implementation phase that can take up to 3 years. May, 2013Page 12

Page 13 May, 2013Page More Information: Alliance Plus: For general PSI information: For PSI via Alliance Plus: