PSI in Practice (UK)[1]

PSI IN PRACTICE

aFROM IDEA TO RESULTa

The PSI project in five steps

Read before submitting your application!

Version: June 2010

Page 2of 41

ABOUT THIS DOCUMENT

The Private Sector Investment Programme (PSI) is a programme of the Dutch government that

supports investment projects in emerging markets in Africa, Asia, Central and Eastern Europe

and Latin America. PSI consists of two sub-programmes: PSI Regular and PSI Plus. This

document applies to both programmes. Where necessary, specific references to PSI Plus are

made in the text.

The document deals with the most important practical issues of PSI, from project idea to the

finalization of the project, in five steps. In addition, in Annex I you will find examples of how to

formulate results for four projects in different business sectors.

Step 1 Discussing your project idea

Intake interview

Workshops

Step 2 Application

Basic information

What to submit?

Results

Corporate Social Responsibility

Step 3 Evaluation

Evaluation by Agency NL, NL EVD International

Objection and appeal

Result-based administrative decision

Step 4 Implementation and administration

Reporting of results

Payments

Monitoring

Model forms

Step 5 Finalization

Project conclusion

Spin-off report

Annex I Examples project results

Page 3 of 41

This document is supplementary to the official PSI documents1. These include the PSI

Guidelines, which set out the conditions and procedures that apply to the programme and a list

of terms. Another official document is the PSI Application Form, the mandatory model to be

used when submitting your application. For more information on available documentation, see

our website http://www.agentschapnl.nl/psi. Please note that PSI in Practice is intended only to

provide practical details on PSI, from project idea to result. In case of any discrepancy between

the PSI Guidelines and this document, the guidelines precede.

Please note that the full name of the government agency running the programme is: Agency NL,

division NL EVD International.

Should you have any remaining questions after reading this document, please do not hesitate to

contact PSI directly. We are happy to answer your questions.

Agency NL

NL EVD International

Private Sector Investment programme

Telephone +31 88 602 85 13

E-mail [email protected]

1 Officially known as: Besluit van de minister voor Ontwikkelingssamenwerking van 23 november 2009,

nr. DDE-710/09, tot vaststelling van beleidsregels en een subsidieplafond voor het Private Sector

Investeringsprogramma, Official Gazette of 1 December 2009.

Page 4 of 41

PSI IN BRIEF

The goal of PSI is to promote sustainable economic development by means of stimulating

innovative pilot investments in developing countries. By doing this, the Government of The

Netherlands aims to contribute to poverty reduction through the creation of economic activity,

employment and better income.

A PSI project is an investment project, executed by a Dutch (or foreign) company in cooperation

with a local company, in one of the developing countries eligible for PSI. The project needs to

consist of hardware to be used in a production process (machinery, for example) as well as

technical assistance (training, project management etc). The activity must be innovative for the

respective country. These innovative investments will contribute to the growth of

underdeveloped markets. The innovative character can consist of a new product, a new

production method or new technology for the respective country. PSI reduces the risk for the

companies that make this investment.

The project must contribute to a long term cooperation between the two companies. After the

project period, the companies need to make additional investments that contribute to further

growth of revenue and employment. Furthermore, the project must be commercially viable and

needs to have significant positive impact on the local economy. The Dutch Government attaches

high importance towards Corporate Social Responsibility (CSR) and expects PSI projects to be

trendsetters in their respective country and sector.

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 consists of two sub-programmes: PSI Regular and PSI Plus. PSI Regular applies to 43

countries in Africa, Asia, Central and Eastern Europe and Latin America, while 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. The maximum

project budget for a PSI project is EUR 1.5 million. The grant of PSI Regular consists of a 50

percent contribution to this budget. The maximum contribution therefore amounts to

EUR 750,000. For PSI Plus, the contribution is 60 percent of the project budget. As a result, the

maximum contribution is EUR 900,000.

The Minister for Development Cooperation has assigned the execution of PSI to Agency NL,

NL EVD International, agency of the Ministry of Economic Affairs and government organisation

for international business and cooperation.

Page 5 of 41

STEP 1: DISCUSSING YOUR PROJECT IDEA

You have identified a challenging but realistic opportunity for a long-term investment in a

developing country. You believe the investment is innovative for the country in question. You

have a local company as an investment partner. Now it is time to turn your idea into reality.

However, the risks are high and as a result, commercial financing is not available.

If you are in this situation, a PSI grant could help. But how to know if your idea could possibly

fit the requirements of PSI?

Intake

You are invited to discuss your project idea with one of PSI's Project Officers through our intake

service. This service, offered by NL EVD International (free of charge, year-round) gives you an

indication of the possibilities for obtaining PSI financing. This is how it works:

On our website you will find the PSI intake form. Please fill out this form according to the

instructions and send it to [email protected]. It is important that you supply as much

information available. Also financial figures must be provided. This enables NL EVD International

to better estimate whether the investment could meet PSI's conditions.

PSI Plus If you want an intake interview for a project in one of the PSI Plus countries, please

note that you must fill out the special PSI Plus intake form. This form is also

available on our website.

After having analyzed your intake form, NL EVD International will contact you. If the information

on the intake form gives cause, the relevant Project Officer will invite you for an interview to

discuss the possibilities of PSI. This meeting will take place at NL EVD International's office,

when possible (if not, the conversation will be conducted by telephone).

During this interview, the Project Officer will not only inform you to what extent your idea meets

the conditions, he will also provide general information on the procedures for application and

evaluation. Furthermore, this is your opportunity to raise all questions you might have on the

programme.

Please note that in all cases it is highly recommended to present your project idea to NL EVD

International by means of an intake, before submitting a complete application for PSI.

Workshops

Next to an intake interview, you can also decide to join one of the workshops organized by PSI.

In order to assist you in drawing up your application, PSI regularly organizes a series of

workshops named 'How to apply for PSI'. Workshops are usually organized in the months before

the deadline of a PSI tender and dates are published on our website.

The workshop (one afternoon), will make you familiar with the application form and will provide

you with practical recommendations on how to structure the different elements, including the

financial plan of the project. This enables you to avoid some common pitfalls and to present a

better, well-founded application.

Page 6 of 41

After the workshop you will have a personal meeting with the PSI Project Officer responsible for

the country you want to invest in. In this meeting, you can discuss all specific issues regarding

your project idea and application.

Registration for the workshop is possible by sending an e-mail to [email protected]. Please

attach a completed intake form. This enables the PSI Project Officer to provide you with more

profound advice and recommendations in the personal meeting after the workshops.

Page 7 of 41

STEP 2: APPLICATION

If you have made the decision to apply for PSI, this section explains how you can submit your

application, and how it will be evaluated.

Basic information

PSI is a tender programme. This means that applications compete with one another in an open

competition, held twice a year. The 2010 deadlines for submitting applications are 8 February,

17:00 hrs CET (first tender) and 23 August, 15:00 hrs CET (second tender).

PSI Plus For PSI Plus, competitions are held three times a year. In 2010, deadlines are

8 February, 10 May, and 23 August, always closing at 15:00 hrs CET.

Applications will be assessed according to the procedures and conditions laid down in the PSI

Guidelines (available on our website in Dutch and English). These guidelines constitute the legal

basis of the programme. Please note that there are separate guidelines for PSI Regular and for

PSI Plus.

All relevant documentation is available on the PSI homepage (http://www.agentschapnl.nl/psi),

under the link "tender opportunities and tender documents". All documents required to apply for

PSI Regular or PSI Plus can be found on this page. Among these documents is also the PSI

Application form. It is mandatory to use this form to apply for a PSI grant. Use only the

documents listed on this page.

The maximum project budget is EUR 1.5 million. This is the total budget of the project.

Applications for projects with a larger budget will not be taken into consideration. There is no

formal minimum budget. However, projects with a budget lower than EUR 250,000 have

relatively high costs for monitoring and administration. As this negatively influences the

efficiency and effectiveness of the PSI programme, these projects are usually considered too

small for PSI.

What to submit?

The application must consist of the completed application form and annexes. It is mandatory to

fill out all fields in the application form and include all the annexes. These documents must be

delivered (by mail, courier or in person) at NL EVD International's office before the deadline of

the tender. Applications submitted in other formats than the official application form are not

accepted. The application form and annexes must be submitted in 5-fold (1 original and 4

copies) together with one digital copy of the application form and Annex 1 (max 1MB).

In the first few days after the deadline, NL EVD International will assess whether the application

is complete. If one or more elements are missing, NL EVD International will enable the applicant

to complete the application within 7 calendar days after the notice of default. When the

application is not complete in time, it will not be taken into consideration.

With the exception of specific documents requested during this 7-day recovery period, no

additional documents regarding your application are accepted by Agency NL, NL EVD

International after the deadline of the tender!

Page 8 of 41

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 results are descriptions of the most important steps to be

taken in the course of the project.

For example, a standard layout for a production project may be as follows:

• Result 1: Establish the Joint Venture and obtain all the necessary permits;

• Result 2: Build the factory and install the machines;

• Result 3: Recruit and train 100 employees;

• Result 4: Set up an outgrowers network and train this group;

• Result 5: Manufacture and sell 1,000 tonnes of end product, organise an open day and

write a business plan for the future.

These general results should then be divided into more detailed sub-results with corresponding

means of verification. These sub-results should be SMART (specific, measurable, acceptable,

realistic and time-bound) so that the means of verification can be derived logically. Annex I of

this document contains examples of these results of projects in four different business sectors.

You are advised to take these examples as a guideline when formulating the results in your PSI

application.

Corporate Social Responsibility (CSR)

CSR has a high priority for PSI and makes up an important part of the evaluation. Projects

supported by PSI are expected to be in the advance guard of CSR policy in their respective

country and sector. 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. From 2010

onwards the Dutch government expects that the applicant and the partners do not make use of

child labour and/ or forced labour in their companies and will also not make use of child labour

for the proposed project in the application. Please be referred to the list of terms for PSI for the

definition on child labour.

Furthermore, the project partners should ascertain that the first essential supplier of the

project's most important raw materials or semi manufactured products needed for the

production process, does not make use of child labour. If the first essential supplier is not

known at the moment the application is written, the first project results should include the

selection of the first essential supplier and the verification should contain a statement of the

applicant that the first essential supplier is not using child labour.

For a detailed outline of possibilities to strengthen the CSR profile of your project, check out the

document 'Integrating Corporate Social Responsibility in your project' available on our website.

Page 9 of 41

STEP 3: EVALUATION

Evaluation by NL EVD International

Once your application has been taken into consideration, NL EVD International will start the

assessment. This assessment will take approximately 19 weeks.

After having received your application, NL EVD International will check if your application is

complete. If not, you will be informed which documents are missing. These should be submitted

within 7 calendar days after the notice of default. All complete applications will be taken into

consideration.

When taken into consideration, NL EVD International will assess your application according to

the criteria in the PSI Guidelines. Since PSI is a tender programme, all applications compete

with one another. 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). (See

appendix 1 (PSI) or 2 (PSI Plus) section 6 of the Private Sector Investment programme (PSI

Regular sub-programme) Regulation”. published in the Government Gazette of December 1st

2009, number 18299) for an explanation).

All the positively evaluated applications are then ranked on the basis of a number of ranking

criteria. An external advisory committee will check NL EVD International's evaluation and

ranking. The available budget for PSI will be allocated to the positively evaluated applications in

their ranking order until the budget is exhausted.

During the evaluation procedure, NL EVD International may request the advice of an external

expert and of the Dutch embassy in the country concerned. Additionally, it is possible that a

representative of NL EVD International will pay a visit to the company of the applicant and

possibly to the country itself to acquire information from the local partner. An external

organisation, contracted by NL EVD International, may also perform a study of the applicant or

local partner.

You will be informed on the outcome of the evaluation process by mail.

Objection and appeal

NL EVD International's decision on your application is an official administrative decision

('beschikking'). Based on the Dutch General Administrative Law Act, this decision is eligible for

objection and appeal.

Result-based administrative decision

If your application is approved, NL EVD International will present you an administrative decision

('beschikking'), which sets out the details for the implementation of the project and the

payment of the PSI grant. A PSI administrative decision has a fixed layout with a number of

standard clauses. The decision also sets the project budget and the maximum contribution of

PSI. This contribution cannot be increased during the course of the project. Any additional costs

for the execution of the project will be at the expense of the applicant. The results stated in the

Page 10 of 41

administrative decision will be based on the results you have mentioned in your application

form.

Your project can start immediately after the issuance of the administrative decision.

Page 11 of 41

STEP 4: IMPLEMENTATION and ADMINISTRATION

If NL EVD International accepts your application, it is time to start implementing your project.

In the section below an outline is given of the administrative procedures under PSI.

Reporting of results

The PSI grant will be paid in phases upon realisation of the results laid down in the

administrative decision, making PSI a result-based programme.

Each result should be concluded with a progress report, drafted by the applicant and his

partners. This report must describe the progress of the project during the period in question and

mentions any problems or amendments relating to the project. The progress report should be

accompanied by documents demonstrating that the result has been achieved, the so-called

means of verification. For this progress report, a standard model is available (see also

paragraph below on Model Forms).

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.

In case of any delays in the implementation of the project, the applicant should inform NL EVD

International as soon as possible about this delay.

Payments

The PSI programme has two payment schedules: one for Technical Assistance and one for

Hardware.

Payment schedule for Technical Assistance

The Technical Assistance budget has a clear correlation with the various results. When a result

has been achieved, you send a progress report together with all corresponding means of

verification to NL EVD International. NL EVD International will assess these documents. If all

sub-results have been achieved, NL EVD International will pay the provisional contribution for

the result in question.

If NL EVD International has any reason to doubt the cost declared for technical assistance, it

reserves the right to examine these cost for market conformity.

Payment schedule for Hardware

The PSI contribution for hardware is paid out in three phases.

• 30 percent of the PSI contribution is paid upon presentation of the order confirmation

from the supplier;

• 50 percent of the PSI contribution is paid upon presentation of the invoice and the Bill of

Lading (if the hardware does not have to be forwarded, you should send the invoice and a

Protocol of Receipt);

• 20 percent of the PSI contribution is paid upon realization of a production target specified

in the administrative decision. Proof of this needs to be submitted in the form of a so-

called Protocol of Production, and a Protocol of Receipt if this protocol has not been

submitted with the second tranche yet. Generally speaking, the Protocol of Production will

be obtained at the end of the project.

Page 12 of 41

Before you can declare costs for hardware, you have to submit a Request to Purchase Goods

and Services (RPGS) to NL EVD International for approval.

• You can submit a RPGS after the first result of your project has been achieved. A RPGS is

a standard protocol on which you specify what hardware you want to purchase from what

supplier at what price. The corresponding (pro-forma) invoices or quotations must be

submitted together with this RPGS;

• NL EVD International will assess the content of the RPGS by comparing this with the

original hardware list provided in the application;

• If the total value of the RPGS exceeds EUR 25,000, or if it contains second-hand goods,

NL EVD International will send the RPGS to a market conformity assessment agency;

• The market conformity assessment agency will determine whether the prices of the stated

hardware is conform to market prices. In the case of second-hand goods, the agency will

also check whether the stated goods conform to the minimum quality requirements (at

least SHA-4);

• As soon as the market conformity agency declares that the RPGS conforms to the market,

NL EVD International will give you permission to purchase the hardware in question and

you can declare the first PSI contribution for hardware;

• NB: Please include as much hardware as possible on one RPGS. During the project you

can submit a maximum of three RPGSs.

All PSI payments for hardware and technical assistance are disbursed as provisional payments.

These payments will be converted into a definite payment at the end of the project when a final

verification has taken place and the grant is settled. This final inspection will be conducted by a

PSI Project Officer or by personnel of the Netherlands' embassy of the country in question.

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.

Model forms

In order to standardise the handling of PSI projects, PSI has a number of standard models for

reports, payment requests, etc. The following models will be made available on

http://www.agentschapnl.nl/psi:

• Progress report: Required for reporting during the project.

• Final report: Required for reporting on the project's conclusion.

• Spin-off report: Required two years after the conclusion of the project.

• Bank guarantee: Optional.

• Request to Purchase

Goods and Services

(RPGS):

Required for approval of hardware purchases.

• Payment request: Required to claim a PSI contribution once a result has

been achieved or (part of) the hardware has been

Page 13 of 41

purchased.

• Protocol of Receipt: Required to claim the second part of the PSI hardware

contribution.

• Protocol of Production: Required to claim the third part of the PSI hardware

contribution.

You are expected to use these models in your communication with NL EVD International.

Page 14 of 41

STEP 5: FINALIZATION

Project conclusion

When all results in the administrative decision have been achieved, the PSI project will in

principle be completed. In order to finalize the project and settle the PSI grant, you will have to

submit a final report, together with the proof of completion of the last project result. The PSI

Project Officer or a representative of the Netherlands' embassy will visit the project in order to

verify that all results have been achieved in full.

After verification the payment for the last result will be transferred and all provisional payments

will be declared definite. The grant will then be fully settled.

Spin-off report

Two years after the conclusion of the project, you will be asked to send us a spin-off report

indicating how the project has developed two years after the official conclusion. Among other

things, this report must address developments in project turnover, developments in

employment prospects and follow-up investments made.

Page 15 of 41

Annex I Result Examples

In this annex you will find examples of results for four different types of projects:

• Agriculture;

• Transport;

• Service;

• Industry.

These examples are derived from existing projects. For privacy reasons, the company names,

locations and budgets have been altered. Please note that Australia is not an eligible country for

PSI.

Page 16 of 41

Example 1: Agriculture

Australian Poultry Abattoir with Outgrower Scheme

NB: This example is derived from an existing project. For privacy reasons, the company names,


PSI.

Location Donnybrook, Western Australia, Australia

Sector Agriculture

Applicant International Poultry Ltd

Local partner Donny Chicken Company Ltd

Start project 01 July 2006

End project 30 June 2008

Total budget EUR 820,000 (50 percent PSI contribution)

Summary

In this project applicant International Poultry Ltd from Antarctica will cooperate with local

partner Donny Chicken Company Ltd from Donnybrook, Australia. The applicant is an

investment company established in 1999. It has been investing in several agribusiness start-ups

in New Zealand, all relating to poultry (hatchery and production) and ostrich production

services. The local partner was established in April 2004. This company is a producer of one-day

old chicks and animal feed, which is sold to local small farmers. Due to their common principal

shareholder and existing relationship, the partners prefer not to establish a new Joint Venture,

but rather to work under a cooperative and investment agreement. The partners will receive

technical support from three experienced Antarctican parties; Ostrich Feeds, Antarctican

Chicken Trust, and the Royal Ostrich Company. The latter is managed by Mr Jones - the brother

of the local partner's managing director - who is an expert in the field of slaughtering.

Despite the fact that the Western Australian climate is very suitable for rearing chickens and

growing feed crops, very limited commercial poultry production occurs. Most agricultural activity

in the region takes place in the family sector (smallholder), including the rearing of poultry

where families use backyard scavenging production systems. The limited production capacities

are not able to meet a growing commercial demand for poultry. Also, there is no contract

abattoir available to accommodate increased production volumes or to develop new markets.

The existing consumer market of 38 million birds per year is served by imports for 37 percent.

In cooperation with the Australian government, an industry group comprising Australia's main

commercial poultry producers recently formed PIDG (Poultry Industry Development Group) to

develop the Australian poultry industry by increasing production quality and efficiency, thereby

reducing costs, and to reduce foreign dumping on the Australian market. The government has

already taken steps to protect the industry from harmful import trade practices.

In line with these developments, under PSI the partners will establish a contract abattoir in

Donnybrook. To secure its inputs, also a small-scale contract outgrower scheme will be set up

under this project. The 200 small-scale poultry farmers will be managed by a dedicated

Outgrower Division that will be responsible for mentorship relationships, contract administration

Page 17 of 41

and coordination between growers, input suppliers, and abattoir demand. At the end of the PSI

project these outgrowers will supply 75 percent of the abattoir's needs.

The wholesale frozen trade will target existing local traders and trading networks. The focus will

be on import substitution, expansion of available product range (different packaging options to

extend customer choice including portions, pieces, custom cuts, whole birds), and reducing

inventory costs for traders through managed delivery schedules and logistics to maintain the

cold chain to the buyer. The frozen products will be delivered from the abattoir freezer to the

buyer via refrigerated transport according to agreed delivery schedules.

Project results

• Result 1: Formalisation of Cooperation; Budget EUR 15,000

• Result 2: Realisation of an export quality poultry contract abattoir; Budget: EUR 475,000

• Result 3: Contract outgrower division set-up; Budget EUR 315,000

• Result 4: Business development; Budget EUR 15,000.

Follow-up investments

Follow-up investments will be around EUR 355,000 for expansion of the slaughter line,

additional freezing capacity, packaging capacity and transport capacity.

Development effects

Direct employment created during the project is 67 jobs. Indirectly the project will contract 200

outgrowers. The wage level for the industrial employees exceeds the stipulated minimum wage

level. Depending on the production capacity per cycle (5-6 weeks) the outgrowers will earn an

amount ranging from EUR 40-160. The Applicant International Poultry Ltd ascertains that no

child labour is used in the project and at the farms of the outgrowers. Overall environmental

impact will be neutral. The project includes a waste water treatment plant for the effluent waste

water, whereas remaining solid waste will be applied as compost to cropping land. To prevent

diseases such as Newcastle Disease and Avian Flu, local partner Donny Chicken Company Ltd

will implement bio-security measures. Producers will adopt farm management procedures for

vaccination, disinfection, isolation, and in/out production systems. Furthermore, PIDG has

developed a coordinated industry and government response plan to address an outbreak of

Avian Flu in Australia. Donny Chicken Company Ltd will keep up-to-date and comply with

developments in the emerging SADC protocol for addressing Avian Flu in the region. The project

fully endorses the objectives of the Poultry Industry Development Group by increasing

slaughtering quality and efficiency, reducing costs and in this way promoting Australian meat.

Besides, feed ingredients (such as maize, cassava and soy bean) will be purchased from local

smallholder farmers. All abattoir staff will be trained. Furthermore, extension staff will be

trained, who will train all 200 outgrowers involved. Also, the local partner will donate 10 percent

of the pre-tax profits to community development projects in producer communities. The local

partner also intends to make its training centre available for use by community organisations

and to further develop it to offer camping opportunities for children and youth.

Page 18 of 41

Sample results

Result 1 Formalisation of Cooperation

Period Start date: July 1st 2006

End date: 31st October 2006

Sub-results Means of Verification

1. Local partner informed by the

Applicant about the administrative

decision for the project.

1.1. Copy of the grant award letter

signed on each page by the local

partner.

2. Formalisation of the Cooperation

between International Poultry Ltd

and Donny Chicken Company Ltd, in

accordance with Australian law.

2.1. Copy of the legally signed

Cooperation agreement, including

any related documents such as

annexes or side letters, in English or

translated into English.

2.2. Copy of the registration of the

Cooperation at the Desgignated

Authorities, in English or translated

into English.

2.3. Copy of legally signed management

agreement between International

Poultry Ltd and Donny Chicken

Company Ltd concerning the rights

and duties of the project partners

with regard to the project, in

English.

2.4. Copy of the bank statement relating

to the deposit of EUR 410,000

corresponding to the shares of the

project partners in the Cooperation.

3. Bank guarantee for the amount of

EUR 410,000 obtained.

3.1. Original bank guarantee.

4. Signed long-term land agreement. 4.1. Copy of legally signed land lease

contract, in English.

5. Signed partnership with Ostrich

Feeds, Antarctican Chicken Trust,

and the Royal Ostrich Company.


partnership agreement with Ostrich

Feeds, Antarctican Chicken Trust,

and the Royal Ostrich Company, in

English or translated into English.

6. Completed design and engineering

plan for the contract abattoir.

6.1. Copy of the design and engineering

plan for the contract abattoir,

signed for approval by all Joint

Venture partners.

6.2. Copies of required permits, such as

a construction license from district

authority.

6.3. Copy of the final report on the

Environmental Impact Assessment.

Page 19 of 41

7. Finalised layout of training

programme and logbook concerning

training of abattoir staff.

7.1. Copy of the detailed layout of

training programme, including the

template of the training logbook,

containing number of people to be

trained, subject of training, time

planning.

8. Setup of outgrowers programme

developed; including description of

selection, training, mentorship and

price and delivery conditions (e.g.

credit facility).

8.1. Copy of detailed setup of the

outgrowers scheme.

8.2. Statement signed by the Applicant

that the supplying outgrowers do

not make use of child labour.

9. The Applicant ascertains that no child

labour and/ or forced labour is used

by the first essential supplier of the

project.


that the first essential supplier does

not make use of child labour and/ or

forced labour.

10. Progress Report. 10.1. The Progress Report elaborating on

the implementation of the project,

containing all documents stated in

this result.

Result 2 Realisation of an export quality poultry contract

abattoir

Period Start date: November 1st 2006

End date: September 30th 2007


1. Abattoir completed and processing

line installed and tested with a

capacity of 172,000 broilers per

month.

1.1. Legally signed Protocol of Receipt

for all equipment.

1.2. Pictures of abattoir and installed

processing line.

1.3. Specification of abattoir capacity

drawn up by authorised

independent auditor.

1.4. Report on first test run.

2. 30 employees contracted of which at

least 10 are female. The salaries are

at least 25% above the Australian

minimum wages.

2.1. Employment records including

name, date of birth, gender, salary

and position.

2.2. Copies of one (1) labour contract

per position.

2.3. Copy of a one-month payroll.

2.4. Copy of HRM policy documents.

3. 30 employees trained on the job to

operate the abattoir.

3.1. Updated training logbook: training

report drafted by a trainer covering

all training subjects, all days on

which training was actually given

and names of trainees and trainers.

3.2. Copy of one (1) training certificate

per training level.

3.3. Copy of training material and

training manual.

Page 20 of 41

4. Progress report. 4.1. The Progress Report elaborating on



this result.

Result 3 Contract outgrower division set-up

Period Start date: October 1st 2007

End date: November 30th 2007

Sub–results Means of Verification

1. Outgrower division developed. The

division operates an outgrower

scheme according to the

specifications of Result 1.8, involving

at least 80 farmers. Selection,

training, mentoring and monitoring of

the farmers (including evaluation of

production) are part of the division's

responsibilities. The activities of the

division cover: administration,

distribution of chicks and feed,

collection of live birds, and producer

financing arrangements (and price

and delivery conditions).

1.1. Copy of outgrower division manual,

minimally elaborating on:

• selection procedure;

• list of selected producers;

• formation of associations;

• meeting and visit schedules;

• training programme;

• training manuals;

• meeting and visiting schedules;

• price settings;

• delivery conditions;

• collection system.

1.2. At least 10 sample copies of

producer contracts.

1.3. At least 10 sample copies of

protocols of producer financing

arrangements.

1.4. Copy of Community Survey Report.

1.5. Summary of producer performance

monitoring reports.

2. Buildings necessary to run the

outgrower division ready for use.


for all hardware necessary to run

the outgrower division.

2.2. Pictures of all related hardware.

3. All project transportation operational. 3.1. Legally signed Protocol of Receipt

for all project transportation.

3.2. Pictures of all project

transportation.

4. 25 employees contracted of which at

least 13 are female. The salaries are

at least 25% above the Australian

minimum wages.



and position.


per position.


4.4. Copy of HRM policy document(s).

Page 21 of 41

5. 10 employees trained of which 5 are

technical and mentoring staff.






5.2. Copy of one (1) training certificate

per training level.


training manual.

6. Health care and HIV/AIDS prevention

programme.

6.1. Copy of a legally signed healthcare

contract with healthcare provider.

6.2. Copy of hygiene and disease

prevention programme, including

HIV/AIDS.

6.3. Brochures and attendance list of

meetings.




this result.

Result 4 Business development

Period Start date: December 1st 2007

End date: June 30th 2008


1. Number of out grower farmers

increased to at least 150.

1.1. Summary of individual producer

performance monitoring reports.

2. Total number of recruited staff

amounts to at least 67.



and position.

3. Realisation of a total production of at

least 258,000 birds and EUR 465,000

of sales.

3.1. Legally signed Protocol of

Production.

3.2. Copy of sales records.

3.3. Two (2) copies of legally signed

sales contracts and accompanying

invoices in English or translated in

English.

4. Finalised marketing strategy. 4.1. Copy of marketing plan covering at

least the 4 P's: product, price, place

and promotion.

5. HACCP certification of the abattoir by

independent validation company.

5.1. Copy of HACCP certificate.

5.2. Copy of the certificate report.

6. Bankable business plan developed. 6.1. Copy of bankable business plan.

7. Organisation of a demonstration

event.

7.1. Copy of the programme and visitors

list.

8. Final report. 8.1. Final Report covering both the

implementation of the project and

the development and spin-off

Page 22 of 41

effects as stated in the grant award

letter.

Page 23 of 41

Example 2: Transport

Multi-modal terminal in the Northern Territory



PSI.

Location Darwin, Northern Territory, Australia

Sector Transport

Applicant International Transport Holding

Local partner Australian Logistical Services, limited partnership

Third partner Together TL, limited partnership

Start project 01 January 2008

End project 31 December 2009

Total budget EUR 1,500,000 (50 percent PSI contribution)

Abstract

The project partners will create a multi-modal terminal in Darwin in order to offer an innovative

logistic solution that includes warehousing, customising of imported machinery and other

services to Australian clients. The project will include the establishment of a new Joint Venture

and the construction of an office, terminal, preparation centre, washing station and storage

platform.

Project partners

The Applicant (450 employees) is a transport company that started with international transport

during the 60's. Currently, the company also has subsidiaries in Spain, Egypt and India.

Recently, it took over the oil-related customers of a Saudian company in East Australia.

Australian Logistical Services Ltd (ALS) was originally the transport department of a refrigerator

manufacturer, but continued as an independent transport company called ALS with 17

employees in 1994. It operates eight trucks plus trailers for international transport. The

company transports office equipment, oil-well equipment, raw materials, private cars, car- and

tractor-loaders and equipment for cafes and bars. In 1994 the Applicant and Local partner

established Together T.L., in which the Applicant holds a majority of shares (70 percent).

Together T.L. operates 60 trucks for international transport. Because of the risks involved in this

investment project, the consortium partners do not wish to integrate the new activities in

Together T.L.. A new Joint Venture for the multi-modal activities will thus be established, in

which the Applicant will own 70 percent of the shares and the Local partner 30 percent.

Business plan

The current market for Australian logistics (storage and distribution) amounts to EUR 550

million, 0.1 percent of GNP in 2005. The Australian logistic market is expected to grow with 30

percent per year till 2010. The market share for exceptional transport in Australia of the

Applicant is relatively good. Other foreign competitors in Australia are mainly South African and

Page 24 of 41

Indian companies. Besides these transport companies, the Australian transport market is being

served by a large number of small companies providing limited services. Investigations show

clearly that for long-distance or large quantities, inland shipping and rail transport is much more

cost efficient than road transport. Due to the establishment of sea and inland terminals, for long

distances these modalities have become competitive to road transport. Clients nowadays

request door-to-door transport and modal shift in order to reduce costs and environmental

burden. Another trend is the development of value added activities at terminals, besides

warehousing.

One of the Applicant's long-term clients approached them to discuss cost and energy

inefficiency in current road transport to the Darwin region. The Applicant and Local partner

proposed multi-modal shift and the client reacted enthusiastically. Based on their long-term

relationship, the client has confidence in the successful implementation of this project and in the

quality of the services that the project partners are aiming to provide in Darwin. Furthermore,

the Applicant has contacted other international suppliers of agricultural machinery to check their

interest in the 'to be established' terminal and preparation centre. They also showed their

interest. During the second half of 2007 the project partners will contact all current customers

delivering goods to Australia or neighbouring countries. They will be informed about the planned

investments in multi-modal facilities and the project partners will offer them the new services.

Furthermore, the project partners will make an inventory of potential clients.

The office will be carrying out the following activities: accepting customers' orders, planning the

transport, monitoring the transport, taking delivery of goods and stock control, planning the

preparation centre and planning the distribution of goods to customers and (financial)

administration.

The customs terminal will carry out the storage and transport of the goods on the site and

ensure implementation of all customs regulations. The preparation centre will be responsible for

adjusting the equipment according to customers' requirements, including small repairs (like

damages during transport by paint-spraying). Finally the machinery will be washed and cleaned

before delivery.

Project results

• Result 1: Establishment of the Joint Venture and training plan drawn up; Budget

EUR 25,000

• Result 2: Fences, gates, security equipment, fire prevention installed; terminal and

preparation centre established; Budget EUR 250,000

• Result 3: Storage platform constructed; Budget EUR 400,000

• Result 4: Terminal and preparation centre equipped, infrastructure constructed and

employees recruited and trained; Budget EUR 600,000

• Result 5: Commercial exploitation; Budget EUR 225,000.


Follow-up investments are expected to be made in expansion of the facilities for an amount of

EUR 2,265,000.

Page 25 of 41

Development effects

The project, including parallel investment, will provide additional employment for 38 people in

Australia. By means of a multi-modal terminal in Darwin, the local harbour will be stimulated

significantly. It is planned to transport at least 200 machines by ship or train in 2009. The

project partners are used to working according to ISO quality standards and in compliance with

standards of corporate social and environmental responsibility. They expect the subcontractors

to operate according to the same guidelines, as much as possible.

The new Joint Venture will offer employees a salary that is at least market conform.

Furthermore, the company will supply good working conditions: proper education; working

clothes and shoes; decent sanitary rooms and showers, a sleeping facility, a free canteen, a

recreation room, a safe and modern work space; lifting devices, heating and lighting and

transport to and from work. The project partners support equal rights and opportunities for men

and women. Especially for the positions in the office, women will be recruited. Work at the

terminal and preparation centre is mostly done by men as it is physically heavy work and as

mostly men are technically educated. The Joint Venture expects to employ 11 women in two

years time.

The current road transport of agricultural machinery is environmentally-unfriendly and the quick

transport required to get the machinery delivered to the customers on time, is not energy

efficient. Furthermore, up to 80 percent of the trucks return empty as transport companies are

not able to arrange a return load or to combine loads due to time pressure. The estimated

energy savings in 2011 to be realized by transporting 450 combines by ship instead of by truck

is 7.7 million MJ. The CO2-reduction for this project is 1,179 ton. Furthermore, the floors of the

terminal, preparation centre and storage will be liquid tight. All oil, grease and gasoline waste

will be properly collected and removed from the site in special barrels. The project partners are

willing to build according to the Cradle-2-Cradle method to assure future opportunities for the

next generation. Furthermore, the partners want to collect or 'buy' rainwater for the washing

station and invest in a closed-loop system including purification techniques.

International Transport Holding Group financially supports projects implemented by 'SOS

Kinderdorpen' nearby their subsidiaries in India and Egypt.

Sample results

Result 1 Establishment of a Joint Venture and training plan drawn up

Period Start date: January 1st 2008

End date: January 31st 2008







partner.

2. Establishment of the Joint Venture

between International Transport

Holding and Australian Logistical

Services in accordance with

Australian law.

2.1. Copy of the legally signed Joint

Venture agreement, in English or


2.2. Copy of the registration of the

Joint Venture at the Designated

Authorities, including any related

documents such as annexes or

side letters, in English or

Page 26 of 41



management agreement between

International Transport Holding

and Australian Logistical Services

concerning the rights and duties of

the project partners with regard to

the project, in English.

3. Signed long-term land agreement. 3.1. Copy of legally signed land

purchase contract in conformity

with the zoning plan.

4. Completed design and engineering

plans of the buildings.

4.1. Copy of the buildings design and

engineering plans, signed for

approval by all Joint Venture

partners.

4.2. Copies of required permits.


programme and logbook.


training programme, including the

template of the training logbook,


trained, subject of training, time

planning.

6. The Applicant ascertains that no

child labour and or forced labour is

used by the first essential supplier of

the project.


that the first essential supplier

does not make use of child labour

and or forced labour.




this result.

Result 2 Fences, gates, security equipment, fire prevention installed;

terminal and preparation centre established

Period Start date: February 1st 2008



1. Fences, gates and security

equipment installed.


for all equipment.

1.2. Pictures of fences, gates and

installed security equipment.

1.3. Specification of this equipment.

2. Terminal and preparation centre

built.


for all equipment.

2.2. Pictures of terminal and

preparation centre.


Page 27 of 41




this result.

Result 3 Storage platform constructed


End date: March 31st 2009


1. Outside storage platform for the

equipment in customs constructed,

including the separate fence and

gate.


for all equipment.

1.2. Pictures of outside storage

platform.





this result.

Result 4 Terminal and preparation centre equipped, infrastructure

constructed and employees recruited and trained

Period Start date: April 1st 2009

End date: August 31st 2009


1. Preparation centre and terminal

equipped.


for all equipment.

1.2. Pictures of equipped preparation

centre and terminal.


2. Infrastructure (electricity, water,

gas, transformer and sewage

system) constructed.


for all equipment.

2.2. Pictures of this infrastructure.


3. 14 new employees contracted of

which at least 5 are female. The

salaries are at least four times the

minimum wage.



and position.


per position.


3.4. Copy of HRM Policy.


operate the office, terminal and

preparation centre.


report drafted by a trainer

covering all training subjects, all

days on which training was

actually given and names of

trainees and trainers.

4.2. Copies of one (1) training

Page 28 of 41

certificate per training level.


training manual.

5. Permit granted by Australian customs

to use the facilities.

5.1. Copy of the permit.

6. Finalised marketing strategy. 6.1. Copy of a marketing plan covering

at least the four P's: product,

price, place and promotion.




this result.

Result 5 Commercial exploitation

Period Start date: September 1st 2009

End date: December 31st 2009


1. Realisation of a turnover of

EUR 1,000,000 in the period

1 January until 31 December 2009.


Production.


1.3. Copy of standard operating

procedures.

1.4. Copy of weekly work plans.

1.5. Two (2) copies of legally signed

sales contracts and accompanying

invoices in English or translated in

English.

2. 15 new employees contracted of

which at least 6 are female. The

salaries are at least four times the

minimum wage.



and position.


per position.




operate the office, terminal and

preparation centre.





and names of trainees and

trainers.

3.2. Copies of one (1) training

certificate per training level.


training manual.

4. Finalised advertising campaign. 4.1. Report on advertising campaign.

4.2. List of parties contacted.

4.3. Copies of advertising material.

5. Finalised training programme and

logbook.

5.1. Training logbook: training report

drafted by a trainer covering all

Page 29 of 41

training subjects, all days on which

training was actually given and

names of trainees and trainers.

5.2. Copy of training certificates for all

trained staff.

6. ISO certification of the office,

terminal and preparation centre by

independent validation company.

6.1. Copy of ISO certificate.

6.2. Copy of certificate report.

7. Developed bankable business plan. 7.1. Copy of business plan, approved by

the Principal.

8. Organisation of a demonstration

day/official opening.

8.1. Copy of the programme and

visitors list.

8.2. Pictures of the demonstration

event.

9. Final Report. 9.1. Final Report covering both the




letter.

Page 30 of 41

Example 3: Service

Digitising Paper Archives



PSI.

Location Naracoorte, South Australia, Australia

Sector Service Industry

Applicant North Sea IT B.V.

Local partner North Sea IT Australia Ltd



Total budget EUR 770,000 (50 percent PSI contribution)

Project partners

The consortium consists of applicant North Sea IT B.V. (founded in 2002) and its recently

established daughter company North Sea IT Australia Ltd based in Naracoorte (2005). Both

companies create, sell, implement, maintain and support software applications in the area of

documentary solutions. They both want to supply high quality software applications and services

in the area of documentary systems by delivering complimentary and highly integrated products

and services. Digital archiving product sales and digitising of paper archives enforce each other

and will strongly increase (each others') business opportunities. The local Australian partner

North Sea IT Australia spent the last year providing archiving services to local governments,

banks and other large companies in Australia. Currently, this mainly concerns arranging and

creating order in the chaos of local archives. After the paper archives have been neatly

arranged, a second step would be to provide scanning services to these local companies.

Abstract

Many organisations both in Europe as well as in Australia have some form of paper documents

stored in paper archives. More and more, organisations migrate their (semi) dynamic archives

to a digital archiving system. From that moment on they have two systems running

simultaneously: the 'old' paper system side-by-side the 'new' digital archive. End-users are now

facing the setbacks of working with two systems instead of with one, as they were used to.

Therefore, a growing need to digitise existing paper documents into digital archives is

developing. Digitising paper documents into a digital archive is a labour intensive job. As labour

costs in the European world are increasing more and more, such digitising is becoming a very

expensive affair. A second, however not less important, fact is that many documents have a

confidential character. Therefore, many organisations are reluctant to let outsourced workers

within the Netherlands have access to these documents.

Applicant North Sea IT B.V. and its daughter company North Sea IT Australia, both active in

providing documentary solutions, will set up a management agreement and invest in installing a

Page 31 of 41

document scanning facility in Naracoorte, Australia to start digitising documents for Western

organisations at -for European standards- relatively low cost by fellow workers who do not

speak and read the document language used. A positive side-effect of bringing this technology

to Australia is the increase in speed of a developing market and know-how of digital archives in

Australia itself.

Project results

• Result 1: Setting-up the organisational structure; Budget EUR 20,000

• Result 2: Building and equipment; Budget EUR 600,000

• Result 3: Employee recruitment and training; Budget EUR 25,000

• Result 4: Expansion of production capacity; Budget EUR 115,000

• Result 5: Promotion and business development; Budget EUR 10,000.


If the pilot project turns out to be successful, additional investments will be made of at least

EUR 350,000 (2 additional scanning units). Total turnover in the second year after the project

will be at least EUR 835,000. 100 full-time employees will be contracted in the second year

following the project.

Development effects

The project will employ 71 people directly and 3 people indirectly in Australia and 2 directly and

1 indirectly in the Netherlands. Two years after the project, this will be 97 directly and 4

indirectly in Australia, and 3 directly and 1 indirectly in the Netherlands. The impact on the

position of women will be neutral. Men and women will be employed in any of the positions

based on their qualifications and capabilities and will be treated equally. The levels of income

paid will be at least 10 percent above minimum wages. Good working conditions include a

medical care scheme, lunch and break facilities including a community area, a health and safety

policy and opportunities for advanced trainings for all employees. As the power supply in

Australia is currently one day on / one day off, the project will use solar energy to provide the

power needed. A generator will be installed for back-up. The only rest product from digitalising

paper archives is paper, which will be recycled at a local recycling plant. The skills and

technologies of digitizing paper archives are new to Australia. All employees (71) will be trained

by experienced personnel in this area on all aspects of scanning, digitising and archiving

documents.

Sample results

Result 1 Organisational structure established









partner.

2. Establishment of a management

agreement between North Sea IT

2.1. Copy of the legally signed Joint


Page 32 of 41

B.V. and North Sea IT Australia Ltd. translated into English.

2.2. Copy of the registration of the Joint

Venture at the Designated


documents such as annexes or side

letters, in English or translated into

English.


management agreement between

North Sea IT B.V. and North Sea IT

Australia Ltd concerning the rights

and duties of the project partners

with regard to the project, in

English.

2.4. Copy of a bank guarantee from the

Contractor to the Local partner of

EUR 300,000.

3. Signed long-term land lease contract. 3.1. Copy of legally signed land lease

contract, in English.

4. Completed design of premises and

lay out.

4.1. Copy of architects design and

engineering plan, signed for


partners.

4.2. Copies of required permits.

4.3. Photographs of plot of land.

4.4. Copy of equipment floor plan.


programme and logbook.


training programme and logbook,


trained, subject of training and time

planning.

6. First customer contracted. 6.1. Copy of the first customer contract

indicating volume, price, process

and time period for completion.

7. Signed partnership with Health

company Australia for health care

and HIV/AIDS prevention

programme.


partnership agreement with Health

company Australia.

8. The Applicant ascertains that no child

labour and or forced labour is used

by the first essential supplier of the

project.


that the first essential supplier does

not make use of child labour and or

forced labour.




this result.

Page 33 of 41

Result 2 Building established and equipment installed

Period Start date: September 1st 2007

End date: May 31st 2008


1. Construction of premises, scanning

department and containers including

environmental control systems.


for all equipment.

1.2. Pictures of building and control

systems installed.

2. Installation of all operating

equipment.


for all equipment.

2.2. Pictures of all equipment.

3. Software additions to ArchTalk for

back-log scanning and auditing.

3.1. Copy of ArchTalk licenses;

3.2. Copy of hourly reports on time

spent.

4. Implementation of ISO 9001-2000

programme.

4.1. Copy of the ISO 9001-2000

programme customized for North

Sea IT Australia Ltd.




this result.

Result 3 Employees recruited and trained

Period Start date: June 1st 2008



1. 19 employees contracted for start-

up. Salaries are at least 10 percent

above minimum wages.



and position.

1.2. Copies of all contracts, including

North Sea IT Australia's Code of

Conduct.

2. 19 employees are trained on the job

to operate the facility.




which training was given and names

of trainees and trainers.

2.2. Copies of training certificates for all

trained staff.

3. Health care and HIV/AIDS prevention

programme.

3.1. Copy of a legally signed healthcare

contract with healthcare provider.

3.2. Copy of hygiene and disease

prevention programme, including

HIV/AIDS.

3.3. Brochures and attendance list of

meetings.



Page 34 of 41


this result.

Result 4 Production capacity expanded




1. Installation of all additional operating

equipment.


for all additional equipment.

1.2. Pictures of all equipment.

2. 52 additional employees are

contracted. Salaries are at least 10

percent above minimum wages.



and position.

2.2. Copies of all signed contracts,

including North Sea IT B.V.'s Code

of Conduct.


2.4. Copy of HRM policy.

3. 52 additional employees are trained

on the job to operate the facility.




which training was given and names

of trainees and trainers.

3.2. Copies of 5 certificates provided to

the trainees.




this result.

Result 5 Promotion and business development executed




1. At the end of the project scanning

services worth EUR 350,000 and

archiving services worth EUR 10,000

have been delivered in the last 12

months of this project.


Production.

1.2. Copy of order book.

1.3. Copies of the customer sales

contracts, of which at least one local

Australian customer, and letters of

satisfaction from all customers;


procedures.

2. Local partner is ISO 9001-2000

accredited.

2.1. Copy of ISO 9001-2000 audit report

by an independent accredited

organisation.

3. Promotion campaign conducted. 3.1. Report on promotion campaign.

Page 35 of 41

3.2. List of parties contacted.

3.3. Copy of promotional materials.

4. Positive equity of North Sea IT

Australia Ltd proven.

4.1. Copy of an audited annual account

of North Sea IT Australia Ltd,

proving positive equity.

5. Demonstration of project at least one

open day.

5.1. Copy of programme.

5.2. Copy of visitors list.

5.3. Billboard placed at production site

with reference to co-financing by

Ministry of Foreign Affairs;

Directorate General for

Development Cooperation.

6. Bankable business plan developed. 6.1. Copy of business plan.





letter.

Page 36 of 41

Example 4: Industry

Pilot Project consumer plastic waste collection & recycling Australia



PSI.

Location Ayr, Queensland, Australia

Sector Industry

Applicant Dutch Plastics N.V.

Local partner Queens Construction Ltd

Third partners Frisian Plastic Recycling B.V.

Recycle Consult B.V.



Total budget EUR 1,290,000 (50 percent PSI contribution)

Project partners

The Dutch applicant Dutch Plastics N.V. is involved in waste management and public space

management in the Groningen area. The local partner in Australia will be Queens Construction

Ltd. The key activity of Queens Construction Ltd is the construction of residential properties in

the north-eastern part of Australia. The director of the company is also a traditional chief of a

community and member of the district assembly in the city of Cairns. In addition to the

applicant and the local partner, two technical partners are involved in the project: Frisian Plastic

Recycling, whose main activity is to provide equipment and know-how for plastic recycling, and

Recycle Consult B.V., which is specialized in consultancy on environmental problems and waste

management.

Abstract

Three years ago the applicant and local partner met during a project to establish a waste

collection system in the city of Cairns in Queensland. After realization of this system, the

partners thought of a way to turn (plastic) waste into a viable business. For Dutch Plastics this

is an interesting commercial activity, giving the possibility to share its knowledge on waste

management and recycling. Queens Construction is interested in the project because it gives

access to new technology and enables the company to produce affordable construction

materials.

The project partners will set up a paid collection system for consumer plastics in the Queensland

area. Starting with three districts the system will have to cover all 13 districts by year 4. The

collected PET/HDPE and LDPE plastics will be recycled in a plant with a total production of 5159

ton plastic scrap during the pilot period, for sales on the national and international market,

which will be built in the KEEA district in the city of Cairns. The plant will produce plastic scrap

(flakes), pressed plastics and construction materials such as roof parts and tiles. The applicant

Page 37 of 41

and local partner will set up a Joint Venture in which Dutch Plastics will hold 90 percent of the

shares and the local partner 10 percent. There are two technical partners involved in the

project, Frisian Plastic Recycling and Recycle Consult B.V., for knowledge transfer and training.

Project results

• Result 1: Joint venture established; Budget EUR 20,000

• Result 2: Plastic recycling factory completed and operational; Budget EUR 1,000,000

• Result 3: Staff hired and trained, knowledge transfer and technical assistance; Budget

EUR 200,000

• Result 4: First plastic collection and recycling and first plastic sales realised; Budget

EUR 125,000

• Result 5: Project completion; Budget EUR 35,000.


Follow-up investments amount to EUR 600,000 and consist of expansion of production of plastic

construction materials, expansion of the factory building and self-sufficiency in electricity via

biomass.

Development effects

The Joint Venture will employ 16 persons. Indirect employment will be created by paying the

people collecting the plastic waste (equalling up to 502 jobs during the pilot). The Applicant

Dutch Plastics N.V. ascertains that no child labour is used at the Joint Venture and by the waste

collectors. Two years after the project the Joint Venture will employ 24 people, while the

number of indirect incomes as a result of the project will have grown to EUR 2,583. The impact

on the position of women will be neutral. 25 percent of the workforce will consist of women.

Salaries will be at least 20 percent above average and health costs will be taken care of. A fund

will be started to collect money for the secondary education of children of staff members. The

project will have a positive effect on the environment of the Queensland Region as it will reduce

pollution by plastic waste. The water used in the factory will be cleaned. All Joint Venture

employees will be trained in technical characteristics of plastics, separating and sorting,

operating of equipment, production of construction materials.

In addition, 200 district leaders and staff members will receive training on plastic waste

collection. The project partners will establish a simple water treatment facility in the

neighbouring town where no access to clean water is available. Most employees live in this

town.

Sample results

Result 1 Set up of Joint Venture




1. Local partner informed by Applicant

about administrative decision for the

project.



partner.

2. Establishment of the Joint Venture 2.1. Copy of the legally signed Joint

Page 38 of 41

between Dutch Plastics N.V. and

Queens Construction Ltd, in

accordance with the law of Australia.


translated in English.

2.2. Copy of the registration of the Joint

Venture at the Designated


documents such as annexes or side

letters, in English or translated into

English.

2.3. Copy of the loan agreement (which

will cover at least the project

period) between Dutch Plastics

N.V. and the Joint Venture.

3. Signed long-term land agreement. 3.1. Copy of legally signed land

rental/lease/purchase contract.

4. Approval process with

Environmental Protection Agency

(EPA) started.

4.1. Copy of registration with EPA.

5. Implementation plan established for

the involvement of the private

sector in the collection of plastics,

including a revised training

programme for both authorities and

private sector.

5.1. Copy of the implementation plan.


that the supplying waste collectors

do not make use of child labour.

6. Completed factory design and

engineering plan.

6.1. A copy of the factory design and

engineering plan, signed for


partners.

6.2. Copies of (application) for required

permits.


programme and logbook with regard

to training of own personnel.


training programme and format for

logbook, containing number of

people to be trained, subject of

training, time planning.

8. The Applicant ascertains that no

child labour and or forced labour is

used by the first essential supplier

of the project.


that the first essential supplier

does not make use of child labour

and or forced labour.

9. Progress Report. 9.1 The Progress Report elaborating on



this result.

Result 2 Plastic recycling factory completed and operational

Period Start date: September 1st 2007 End date: March 31st 2008


1. Building completed and processing

line (for PET/HDPE) installed and

tested with a capacity of 500 kg per


for all equipment.

1.2. Pictures of factory and processing

Page 39 of 41

hour. line.

1.3. Copy of required permits.

1.4. Specification of processing line

capacity.





this result.

Result 3 Staff hired and trained, knowledge transfer and technical

assistance completed

Period Start date: April 1st 2008

End date: October 31st 2008


1. 15 employees and 1 director

contracted of whom at least 25

percent are female. The salaries for

skilled labourers are at least 25

percent above minimum wages.



and position.


per position. The contract respects

and explicitly mentions the labour

standards and minimally includes

the date of birth, working hours,

overtime policy, days of leave and

policy of conflict settlement.



2. 16 persons are trained on the job to

operate the factory.



training subjects, all days on which

training was given and names of

trainees and trainers.

2.2. Copy of training manuals.

2.3. Training certificates for all trained

staff.

3. Knowledge transfer to private

companies, local inhabitants and

local authorities with regard to their

role in the project, the collection and

different qualities of plastics.



training subjects, all training days


3.2. Copy of instruction leaflet/card on

various types of plastics and the

proper way to separate and deliver

these to the collection points.

3.3. Protocol of Receipt for the

hardware.




this result.

Page 40 of 41

Result 4 First plastic collection and recycling realised

Period Start date: November 1st 2008



1. First purchases of plastic waste

realised.

1.1. Purchase records showing the

purchase of plastics.

2. First plastic recycling realised. 2.1. Records of recycled LDPE plastic

(pressed in bales) from the first

month of operation.

2.2. Records of recycled PET/HDPE

plastic (scrap) from 1st month of

operation.

3. Production of LDPE construction

materials started.


for all hardware.

3.2. Pictures of the hardware.


4. 16 employees trained in the

production of LDPE construction

materials



training subjects, all training days


4.2. Copy of instruction manual.

5. Marketing and sales activities

started up

5.1. List of potential clients and/or

contracts for sales of PET/HDPE,

LDPE plastics and LDPE

construction materials.

5.2. Copy of marketing plan for

construction materials.




this result.

Result 5 Project completion and sales realised




1. Processing of 3000 tons of plastics

during the pilot period. Sales volume

during this period will be

EUR 1,000,000.


Production.



procedures.

1.4. Two (2) copies of sales contracts or

invoices.

2. Collection of plastic waste carried

out by the private sector.

2.1. Copy of contract(s) with private

companies with regard to the

collection of plastic waste.

2.2. Copy of final collection scheme.

Page 41 of 41

3. Opening of the plastic recycling

factory.

3.1. Pictures of demonstration/opening

of the factory.

3.2. Copy of the programme and

visitors list.

4. Developed bankable business plan. 4.1. Copy of business plan.

5. Fund established for the education

of the children of the employees of

the Joint Venture.

5.1. Copy of the design of the fund,

including purpose, management of

the fund and the allocation of the

money.

6. Approval process with EPA finalised. 6.1. Copy of Approval by EPA.





letter.

Documents

PSI in Practice (UK)[1]