Application Form Appendices

2014

Private Sector Investment
programme

To be used for applications for PSI Regular and PSI Plus

Contents

General information

Brief description of the appendices

Appendix IProject plan

Appendix IIProject Budget Calculation Sheets

Appendix IIIFinancial statements of the partners

Appendix IVOrganisation chart (optional)

Appendix VCSR policy (optional)

General information

An application for PSI consists of interactive PDF application forms (referred to as Application Form and Partner Form) and a set of appendices for which models are provided here. The same set is used for all countries (including the Arab countries, which have a separate budget and ranking criteria). For PSI Regular and PSI Plus only the Budget Calculation Tools differ, the other forms are the same for PSI Regular and PSI Plus.

Only completely filled out application forms, including all obligatory appendices, will be taken into consideration. All text in the blue text boxes may be erased after filling out the model.

  • Four copies (1 original and 3 copies) of the complete set of application forms, including all appendices, must be submitted in writing within the tender period. This can be done by post, courier or in person.
  • The submission must include electronic copies:
  • (in PDF or Word format) of the Application Form, the Partner Form(s) and Appendix I (Project Plan);
  • (in Excel) of the Project Budget Calculation Tool (including Liquidity Requirement sheet) (Appendix II);
  • (in Excel) of the Cash flow (Appendix 1, Chapter 2.3.B).

This must be delivered on USB-stick (USB flash drive) together with the printed version (max10 MB). Electronic copies other than on USB-stick, for example by
e-mail, will not be accepted.

  • Application forms sent by fax will not be taken into consideration.

Delivery address / Postal address
Netherlands Enterprise Agency
Attn. PSI
PrinsesBeatrixlaan2
2595 AL The Hague
The Netherlands / Netherlands Enterprise Agency
Attn. PSI
P.O. Box 93144
2509 AC The Hague
The Netherlands

Make sure that all documents are received by the Netherlands Enterprise Agency before the deadline of

10 March 2014, 15:00 hrs CET

Brief description of the appendices

The following appendices need to be submitted with the application form:

  • Appendix I: Project Plan
  • The use of this model form is obligatory. Make sure to complete every paragraph in this model.
  • Appendix II: Project Budget Calculation Sheets
  • A print-out of all sheets of the Project Budget Calculation Tool, including the Liquidity Requirement sheet. See paragraph 2.2.F of the Project Plan form for more information on the project budget.
  • Appendix III: Financial statements of the partners
  • In order to assess whether the project partners are able to finance their own contribution, to pre-finance the PSI contribution, to furnish working capital and to cover any additional unexpected costs, the most recent audited annual reports of all partners need to be submitted.
  • If no annual report is available, at least the annual financial statements should be provided, covering the company's balance sheet and income statement in relation to the preceding year's figures.
  • If the local partner or any third partner cannot provide this information because it was only recently established, other information will have to be provided in order to assess the financial position of this/these partner(s).
  • The balances and income statements need to be (translated) in either Dutch or English.
  • Please follow the instructions in this appendix for more detailed requirements.
  • Appendix IV: Organisational chart (Optional)
  • Optional Appendix in case one or more partner(s) is part of a holding or group (see chapter 1 and 2).
  • PSI Plus only: If the local partner is an individual person, a résumé (curriculum vitae) of this person needs to be submitted.
  • Appendix V: CSR policy Applicant (Optional)
  • Only if the applicant has a formalised CSR policy (see 1.E.)

Appendix IProject plan

Please note:

  • Only project plans written in accordance with the mandatory model found in this appendix will be taken into consideration. It is obligatory to fill out every paragraph of this model.
  • The model consists of three main chapters, dealing with information with regard to:
  1. the partners;
  2. the project;
  3. the project's impact.
  • Each chapter is divided into multiple paragraphs. Each paragraph corresponds with one of the selection criteria stated in paragraph 6 of appendix 1 and 2 of the PSI Regulation published in the Government Gazette (Staatscourant) of January 2014.
  • You are requested to fill out every paragraph by answering at least the lead questions and points of attention given in the blue text boxes below each paragraph.
  • After filling out the model, please erase all text in the blue boxes, only leaving your own text.
  • The project plan should not exceed 28-30 pages.
  • Please insert page numbers to the project plan.
Chapter 1The partners

1.ABackground of the project partners (ref.: selection criterion 1a)

  • Describe the applicant, the local partner and, where appropriate, any other third partners here. Answer the following questions for each partner:
-When was the company established?
-In which sector is it active?
-How many employees are employed?
-Who are the managers? Arab region: How old is the CEO of the local partner? Is the CEO male/female?
-Who are the owners? What percentage of shares does each shareholder have?
-If the company is part of a group, please supply an organisation chart depicting the complete group of companies (Appendix IV to the application form).
-Has the company been involved in an application for PSOM or PSI (Plus) before? If so provide the project numbers here.
-What are the company's activities? What products/services does it produce/deliver?
-Who are the customers?
  • Only applicable to PSI Plus:If the local partner is an individual person, please describe this person's background, also including country of citizenship.
Rationale:
PSI aims to support cooperation between already existing companies. Partners need to prove that they have established a substantial business operation prior to the application being submitted.

1.BPartners' interest (ref.: selection criterion 1b)

  • Describe the relationship between the project partners:
-How long have they known each other?
-How did they get to know each other?
-Where did the underlying project idea originate?
  • Next, describe the interest of each partner for participating in the project. Explain to what extent the project fits in with the partners' current core activities, and their organisational strategy (not applicable for the local partner, if the local partner is an individual person).
  • If the local partner is locally owned, how will the local shareholders be affected by the project?
Rationale:
  • In view of the long term viability of the project, a project that is in line with the core business of the partners stands a better chance for successful implementation.
  • PSI wishes to support local entrepreneurship and gives preference to local partners managed/owned by entrepreneurs originating from the PSI country.

1.CKnowledge and experience (ref.: selection criterion 1c)

  • Describe the knowledge and experience needed for the project's success and the extent to which the partners possess these. Think of the technical, management and market knowledge, and international experience.
  • If the partners do not have this knowledge, explain how they plan to acquire it.
Rationale:
In order to be successful, knowledge and experience in the business domain of the project is required.

1.DProposed cooperation between the partners (ref.: selection criterion 1d)

  • What kind of cooperative structure will be set up for this project?
  • If a joint venture will be set up, explain its proposed ownership structure. Preferably use the following table:
Applicant / Local partner / Opt. third partner(s) / Total
Division of shares in joint venture (%) / … % / … % / … % / 100%
Division of own contribution (%) / … % / … % / … % / 100%
  • If the division of the own contribution does not correspond with the division of shares in the project, explain why not.
Rationale:
  • The cooperative structure indicates the long term commitment of the partners. A well-balanced joint venture is preferred.
  • Only in case of PSI Plus: If the local partner is not a registered organisation, it is a prerequisite to establish a legally registered joint venture in the project's initial months (Result 1).

1.ECSR policy applicant and project partner(s) (ref.: selection criterion 1i)

  • Does the Applicant company have a formalised CSR policy document?
-If yes, please attach a copy of the document to the plan and refer in this box to the document. No further description of the CSR policy in this box is needed. However in case the CSR policy does not yet include a description of how the policy is implemented in the company (including management instruments) and how the company communicates on the implementation with its stakeholders, these two subjects should be described in this box.
-If no, please describe the CSR policy of the Applicant in this box concerning for example employment standards, workplace health and safety, gender policy, non-discrimination policy, child labour, employee participation, chain responsibility, measures to prevent corruption, how to deal with red tape, environmental management.
  • Please describe the policy of the other project partner(s) regarding the above mentioned CSR issues.
  • In case your company or any of your partners, is active in or related to animal husbandry, fisheries or fish farming, also describe the measures you take for implementing animal welfare standards in the companies or supply chain of the companies.
Rationale:
  • The applicant and the other project partner(s) should comply with the OECD guidelines for multinational enterprises with regard to CSR, the ILO declaration on fundamental principles and rights at work and the UN convention on biodiversity.
  • The CSR policy should be based on the principles of the OECD guidelines, the IFC Performance Standards or ISO 26.000 and cover at least a number of its principles. A tool how to design your CSR policy based on OECD can be found at:
  • The Netherlands is a frontrunner on animal welfare aspects. The basic standard for animal welfare is the European Union legislation.
  • If the applicant has no CSR policy yet, PSIwill require the Applicant to produce a CSR policy as part of the first project result. This will be set as a condition in the administrative decision for approved grants.
  • Have a look at examples, guidelines and links on the PSI website to learn more about how to design a CSR policy.

Chapter 2The project

This chapter is divided into three paragraphs: the commercial plan, the operational plan and the financial plan.

2.1Commercial plan

2.1.AMarket analysis (ref.: selection criterion 2a)

  • Describe the market the partners wish to enter. Include answers to the following in the description:
-Which parties are already operating in this market (describe the market segment for which local competitors deliver products)?
-Who are the customers in this market?
-What is the size of this market in terms of supply and demand?
-What are the market prices and how are they expected to evolve in the coming years?
-Who are the indispensable suppliers in this market?
-What substitutes are available on the market?
-How has the market evolved over the past few years with regard to the above? What tendencies are expected?
Rationale:
PSI only finances commercially feasible projects. If there is no market for the proposed product or service, the project will never become a commercial success.

2.1.BInnovative aspect (ref.: selection criterion 2b)

  • Describe the business opportunity that will be explored.
  • How is the product, the service or the production methodology new for the country in which the project will be carried out?
  • In which other aspects is the project activity different from similar activities in the sector in the project country? E.g. think in terms of the logistical approach, marketing, etc.
  • To what extent will this project compete with existing commercial activities in the country where the project will be established?
  • Why are you convinced that PSI subsidy to your project will not lead to market distortion?
Rationale:
PSI intends to strengthen the local economy, either by broadening the private sector or by improving the private sector by transferring new technology. PSI projects may not compete directly with products or services which are already produced locally for the same market segment. PSI projects may not lead to market distortion.

2.1.CBusiness risk analysis (ref.: selection criterion 2c)

  • Describe the risks that may influence the project's results and its viability. Indicate which risks are highest.
  • How will these risks be mitigated?
Rationale:
PSI finances risky investments in emerging markets. Nonetheless a sound risk analysis is needed in order to assess the feasibility of the project.

2.1.DOnly applicable to PSI Plus: Security risk analysis (ref.: Plus selection criterion 2d)

  • Describe the security risks and the risks related to the political and socio-economic situation in the PSI Plus country. This includes personal risks as well as capital risks. Indicate which are the most significant risks and explain how these risks are dealt with.
  • Describe how the local security situation will be dealt during the implementation of the project. Be as specific as possible. Elaborate on personal safety and on transport of people and equipment.
Rationale:
  • In order to assess the external risks of the project, a sound analysis of the political and socio-economic risks is required.
  • As the security situation in the country may also influence the implementation of the project, a security plan should be part of the operational plan in order to assess the feasibility of the project.
  • Please note that PSI Plus will facilitate the insurance of the investments with MIGA SIP or a similar insurance by another provider; E.g. .

2.2Operational plan

2.2.AProject execution (ref.: Regular selection criterion 2e;
Plus selection criterion 2f)

  • Describe how the business opportunity described in the preceding paragraph, will be put into practice:
-What kind of business will be established?
-What will be the main activities of this business?
-What will be the position of the project in the business chain?
-Who will be the suppliers and who will be the customers?
  • Please provide a drawing of the production chain to illustrate the project's position.
  • What does the production process look like in terms of inputs, outputs and logistical aspects? This may be illustrated by a flowchart.
  • How will product or service be brought to the market? Include the 4 Ps of the marketing mix in the answer:
-Product: what product(s) or service(s) will be sold?
-Price: at what price will these product(s) or service(s) be sold?
-Place: where will these product(s) or service(s) be sold?
-Promotion: how will the product(s) or service(s) be brought to the market).
  • Which partner will assume which responsibilities within the project?
Rationale:
A clear description of the operational process allows PSI to assess whether the project goals are realistic and whether the proposed results are feasible.

2.2.BHardware (ref.: Regular selection criteria 2f, 2g and 2h; Plus selection criterion 2g, 2h and 2i)

  • Provide a list of all hardware that will be bought during the project and specify the costs per item.
  • Which production method or technology will be used?
  • Is this a commercially proven technology?
  • What is the maximum capacity of the hardware that will be purchased?
  • What percentage of this capacity will be used at the end of the project?
  • Where is the bottleneck point in the production process with regard to the production capacity?
Rationale:
  • An overview of all hardware is needed to assess the project's budget. PSI aims to support the initial investment in an innovative project idea. As partners are expected to continue investing in the country after completion of the PSI project, PSI will not finance any production capacity that will only be used long after the project has ended.
  • Although PSI subsidises projects that are innovative to the targeted country, the viability of the technology itself needs to have been commercially proven elsewhere.

2.2.CPersonnel and training (ref.: Regular selection criterion 2i; Plusselection criterion 2j)

I / II / III / IV / V / VI
Training number / Training title / Type of training* / Training cost / Number of people to be trained / Number of training days per person
Training 1 / Basic
Medium
High
Training 2 / Basic
Medium
High
Etc

* For example: on-the-job, in the field, class teaching, at an external training institute, at Applicants own company, etc.

  • Give a detailed description of the training programme:
-What kind of training will be given?
-Which skills or knowledge will be taught?
-Who and how many people will be trained? Distinguish between basic-level employees, medium- or high-level employees and possible third parties (such as outgrowers) that will be trained. Basic-level employees are production workers operating machines, agricultural workers for planting and harvesting, drivers, cleaners, security guards, waiters, cooks and the like.
-Who will be providing the training?
-How many days will the training take?
-How much will the training cost?
  • Provide a table stating subject of training, the cost of training, number of people to be trained, qualification of trainees (basic-, medium-, high-level), and number of days.
Rationale:
  • Transfer of knowledge is an essential aspect of every PSI project. Training of employees and sometimes third parties is essential to the successful implementation of a project.
  • The budget for Technical Assistance is partly based on this training programme.

2.2.DCorporate Social Responsibility (ref.: Regular selection criterion 2j; Plus selection criterion 2k)

  • Describe what efforts will be devoted to integrating corporate social responsibility (CSR) in the project. Think of certification of production processes, social standards, environmental standards etc.
  • What will be the CSR policy of the project (including issues like employment standards, workplace health and safety, gender policy, non-discrimination policy, child labour, employee participation, chain responsibility, measures to prevent corruption, how to deal with red tape, environmental management, etc)?
  • In case your proposed project need to acquire land, describe how the rights of the current tenure right holders will be recognised and respected.
  • In case your proposed project will be active in or related to animal husbandry, fisheries or fish farming, describe how your proposal will comply with European Union legislation on animal welfare or equivalent standards.
Rationale:
  • The Dutch government places a great deal of value on CSR. PSI projects are expected to set an example in their respective sector with regard to CSR, and should not have any negative impact.
  • Have a look at the CSR document provided on, to learn more on how to incorporate CSR in the project.
  • Chain responsibility is part of the CSR responsibility of the project partners, however the efforts related to the chain responsibility should be described separately in the next paragraph 2.2.E.

2.2.EChain responsibility (ref.: Regular selection criterion 2d; Plus selection criterion 2e)