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Programme Cooperation Emerging Markets (PSOM)

Objective:

To reduce poverty by supporting sustainable economic development in PSOM countries;

Through:

  • Encouraging Dutch companies to invest in emerging markets;

  • Promoting durable trade relations

Why is PSOM being executed?
The main goals of the PSOM programme are:

  • Alleviate poverty;

  • Create employment and train people;

  • Income generation;

  • Strengthen private sector in Banglade

Typical PSOM project

  • Pilot investment project (demonstration, new and risk);

  • Joint venture between the Dutch and the Bangladeshi company. Both companies will have to invest in the project;

  • Hardware & technical assistance (80%-20%);

  • New for Bangladesh (new product, production method, technology);

  • Follow-up investments: possibility of expansion after project;

  • Maximum project duration is 2 years, max. budget EUR 825,000;

  • Result based contracts with companies.

Budget

  • Approximately EUR 2 million for Bangladesh per year;

  • Maximum total project costs are approximately
    EUR 825,000 (60% PSOM + 40% companies);

  • PSOM contribution is 60% (max EUR 495,000)

  • Own contribution of project partners is 40%
    (max EUR 310,000)

Economic sectors PSOM Bangladesh

  • All economic sectors are taken into consideration in accordance with the MoU between Bangladesh and the Netherlands;

  • Only Dutch companies can apply for PSOM;

  • The JV that will be established between the Dutch applicant Company and the Bangladeshi partner company will be the recipient of PSOM;

Selection criteria PSOM

  1. Strategic interest

  2. Quality project plan and business plan

  3. Financial aspects

  4. Pilot character

  5. Development effects

Tender Procedure
Only Dutch companies can apply for PSOM:

  1. Intake form (voluntary):
    Free consult for the applicant with EVD advisor to see if the project idea can fit within PSOM;

  2. Qualification proposal (tender):
    Project proposal according to the obligatory format in the tender instructions (an external commission decides upon which project gets the PSOM contribution).

Intake Form

  • NOT considered as project proposal (Additional service offered by EVD)
    – check basic idea
    – avoid energy wasted

  • NOT obligatory to use it (same applies to: Workshop How to Write)

  • No deadline for submission

  • Information treated confidentially

  • Content does NOT have bearing on appraisal procedure

Qualification proposal:

  • Applicant has to use the obligatory format for the qualification proposal that can be downloaded from our website www.evd.nl/psom;

  • Only the applicant can apply for PSOM;

  • Take enough time to write the proposal or ask a consultant.

Summary PSOM: The basic needs

  • Mature project idea creating employment & income in Bangladesh;

  • Two companies; one Dutch; one Bengali
    – Each partner providing 2 annual reports
    – Good financial position partners

  • No commercial funding available;

  • The project partners must pay for their own contribution
    (40% of total project costs);

  • Total project costs max EUR 825,000 (60% PSOM + 40% own contribution)

PSOM: from idea to project

  1. Project idea / search partner

  2. Consult PSOM website (Download: Tender Instructions / General Brochure);

  3. Download / fill out / send: Intake Form;

  4. Consult EVD the Netherlands;

  5. Proposal writing ;

  6. Visit workshop 'How to write a project proposal';

  7. Submit project proposal to EVD the Netherlands by Deadline (15 August 2005);

  8. Appraisal by EVD (including company visits) -> selection / rejection
    (Sep/Oct. 2005);

  9. Contract negotiation/signing (December 2005);

  10. Start project (January 2006).

Partner search

New tender

  • New tender will close on: 6 March 2006;

  • Intake forms for free advice can be downloaded from www.evd.nl/psom;

  • The tender instructions with the format for the qualification proposal can be downloaded from the website www.evd.nl/psom from 1 December 2005 .

Contact

Project Officer PSOM Bangladesh

   

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Dutch Bangla Chamber of Commerce & Industry :: DBCCI ::