Project overview 2006 PSOMProgramme for Cooperation with Emerging Markets

The PSOM programme is run by the EVD

on behalf of the Ministry of Foreign

Affairs and the Ministry of Economic

Affairs

www.evd.nl/psom

Project overview 2007

PSOM

project overview 2007

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Dear reader, The EVD proudly presents an overview of all the new business to business projects developed in 2007 under the Programme for Cooperation with Emerging Markets (PSOM). The purpose of the Programme for Cooperation with Emerging Markets (PSOM) is to assist (Netherlands) private companies in their contribution to the sustainable economic development of and positioning in emerging markets. PSOM finances projects to ease some of the initial risk that companies will face when investing in emerging markets. This benefits the emerging markets by generating employment, income and know-how and boosting the capacity of the local private sector. The programme is supported by both the Netherlands Ministry of Foreign Affairs/Development Cooperation and the Netherlands Ministry of Economic Affairs. In 2007, 85 million euros were allocated to 111 new PSOM projects in Africa, Asia, Central and Eastern Europe and Latin America. The PSOM tenders in 2007 were open for 58 countries. The PSOM in the following countries was supported by the Ministry of Foreign Affairs/Development Cooperation (PSOM-OS): Afghanistan Georgia Pakistan Albania Ghana Palestinian Authorities Armenia Guatemala Peru Bangladesh Honduras Philippines Benin India Rwanda Bolivia Indonesia Senegal Bosnia-Herzegovina Kenya Sierra Leone Brazil Macedonia South Africa Burkina Faso Madagascar Sri Lanka Burundi Malawi Sudan Cape Verde Mali Surinam China Moldova Tanzania Colombia Mongolia Thailand Ecuador Morocco Uganda El Salvador Mozambique Vietnam Egypt Namibia Yemen Ethiopia Nepal Zambia Gambia Nicaragua

The PSOM in the following countries was supported by the Ministry of Economic Affairs (PSOM-EZ): Montenegro Turkey The Russian Federation Ukraine Serbia (incl. Kosovo)

We hope this publication will generate new ideas for new projects between companies in the Netherlands and in emerging markets. Many companies have already found their way to PSOM, and many more are welcome. Aad de Koning Judith Arends Manager PSOM-EZ Manager PSOM-OS

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Africa 11

Burkina Faso 13 PSOM07/BF/21 Pilot for a private dental care clinic and a distribution centre for dental care supplies 13

Cape Verde 14 PSOM07/CV/01 Jatropha elite seeds and cuttings from Cape Verde 14 PSOM07/CV/21 Wind Farm on Santo Antão power generation and maintenance 16

Egypt 18 PSOM07/EG/22 High quality piping production in Egypt 18

Ethiopia 20 PSOM07/ET/01 Organic HACCP Operated Sesame Seeds Hulling Project in Ethiopia 20 PSOM07/ET/02 Power to the People, bringing solar electricity to Rural Ethiopia 22 PSOM07/ET/04 The set-up of Alema Koudijs Feed 24 PSOM07/ET/05 Freesia: growing & trading; bulbs & flowers 26 PSOM07/ET/06 Establishing a lily cultivation site in Awassa, Ethiopia 28 PSOM07/ET/07 Establishing an ecolodge at Lake Tana, Ethiopia 30 PSOM07/ET/21 Establishment of artichoke cultivation and export chain 32 PSOM07/ET/22 Mama's Fresh Injera: Industrial Injera Production in Addis Ababa, Ethiopia 34 PSOM07/ET/24 Gorgora Nova Spa Resort & Water Lodges 36 PSOM07/ET/25 Dipasa Agro Ethiopia Ltd 38

Gambia 40 PSOM07/GM/01 Next-door Internet, communication and energy shop in The Gambia 40 PSOM07/GM/02 Introduction of potato and onion production in the Gambia 42

Ghana 44 PSOM07/GH/01 Agro-Forestry Company Ghana 44 PSOM07/GH/03 Pilot Project consumer plastic waste collection & recycling Ghana 46 PSOM07/GH/04 The setting up of a Tilapia production and filleting facility in Ghana 48

Mali 50 PSOM07/ML/21 Development of Artificial Insemination Services in the Malian Livestock Sector 50

Morocco 52 PSOM07/MA/22 Pilot Mushroom Production Unit in Morocco 52 PSOM07/MA/23 Development of an integrated Barite grinding plant of the oilfield sector at Safi, Morocco 54

Rwanda 56 PSOM07/RW/21 Manufacturing of Solar Water Heating Systems for domestic and industrial purposes 56

Senegal 58 PSOM07/SN/01 Decorative stone cutting & polishing (Diamniadio, Rusfisque, Senegal) 58

Sudan 59 PSOM07/SD/04 Joint venture for the production, handling and marketing of seed potatoes in Sudan 59 PSOM07/SD/06 Was Agrico, joint venture for the storage, packaging and distribution of fresh potatoes in Sudan 61 PSOM07/SD/21 Alfalfa production in Sudan 63

Tanzania 65 PSOM07/TZ/01 Vegetable Seeds for Africa: "Piloting premium vegetable seed production in Tanzania" 65 PSOM07/TZ/02 African Roots Ltd 67 PSOM07/TZ/04 Van Egmond Tanzania Ltd Lisianthus production in Moshi, Tanzania 69 PSOM07/TZ/05 Summer flowers - reintroducing horticulture to Iringa 71 PSOM07/TZ/06 The set up of the Misenani Wilton Agriventure 73 PSOM07/TZ/24 Tanzania Safari Channel 75

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Uganda 77 PSOM07/UG/01 Digitising Paper Archives 77 PSOM07/UG/23 Introduction of Tasty Soy Pieces in Uganda 79 PSOM07/UG/25 Margret's Finest: it's Uganda's Best 81

Zambia 83 PSOM07/ZM/01 Diamant-G: Born under the African sky 83

Asia 85

Afghanistan 87 PSOM07/AF/21 Fruit trees for Afghanistan 87

Bangladesh 88 PSOM07/BD/01 Permess South East Asia Ltd 88

China 89 PSOM07/CH/01 A new window for the Chinese shipbuilding market 89 PSOM07/CH/03 Establishing a modern European quality dental laboratory in Dalian 91 PSOM07/CH/04 Propagation of young plants, selection and production of Carnation, Limonium and Alstroemeria

under a Fair-trade label 92 PSOM07/CH/05 Manufacturing of burner installations in Nanchang, China 94 PSOM07/CH/23 The key to perfection in mechanical parts Chengdu Sichuan Province China 96 PSOM07/CH/24 Creating an innovative cold chain for marketing of certified cut flowers and bouquets 97 PSOM07/CH/27 Organic Individual Quick Frozen (IQF) fruits & vegetables 99 PSOM07/CH/28 Setting up production line for Bloksma boxcoolers and plate finned heat exchangers 100

Indonesia 102 PSOM07/RI/21 Intiplasma Blueberry Project Indonesia 102

Mongolia 104 PSOM07/MN/01 Piloting the construction of a horse farm for the production of mare's milk 104

Nepal 106 PSOM07/NP/21 Integrated layer chain in Nepal 106

Sri Lanka 107 PSOM07/LK/21 Sealeafs 107

Thailand 108 PSOM07/TH/01 Unikon Asia Ltd 108 PSOM07/TH/04 Establishing a production site for manufacturing of tracking- and tracing devices in Udonthani,

Thailand 109 PSOM07/TH/21 New quality standards and added value for Thai orchids; '4 Commodity 2 Premium' 110

Vietnam 112 PSOM07/VN/01 Production of Value added super frozen Tuna 112 PSOM07/VN/02 Pilot Production of large fixed Pitch Propellers 114 PSOM07/VN/03 Building Model Shipyard to build Coaster for European Market 115 PSOM07/VN/21 Flexible CPP packaging solutions made in Vietnam 116 PSOM07/VN/23 Pilot production of high-quality marine electronic components & installations Hai Phong Vietnam 117 PSOM07/VN/24 Manufacturing of non-woven disposable material and clothing for export in Khanh Hoa 118

Central and Eastern Europe 119

Bosnia and Herzegovina 121 PSOM07/BA/01 Joint venture for pig breeding and fattening in Bosnia and Herzegovina 121 PSOM07/BA/02 Integrated production of high quality Stainless Steel Products in Bosnia Herzegovina 123

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Macedonia 125 PSOM07/MK/01 Innovative and sustainable clothing production in the Republic of Macedonia 125 PSOM07/MK/21 Growing conifers in Macedonia 127 PSOM07/MK/24 Implementation of city wireless mesh networks in Macedonia 129

The Russian Federation 131 PSOM7/RF/1/1 Quality Veal Products; from farm to market 131 PSOM7/RF/1/2 Establishment of a modern growing facility for ornamental plants in Saint Petersburg 132 PSOM7/RF/3/2 Kaluga Dry Port 133 PSOM7/RF/1/4 Positioning of Dutch rose varieties on the floricultural market of the Russian Federation 134 PSOM7/RF/1/5 "Savvateev Nurseries" - joint venture for the production and marketing of ornamental trees 135 PSOM7/RF/2/5 Production of process belts in Russia 136 PSOM7/RF/2/7 Manufacturing of ambient vaporisers in Omsk, Russian Federation 137 PSOM7/RF/3/3 Multi-modal terminal in the Volga region 138 PSOM7/RF/4/1 High technology waste separation complex for industrial and municipal wastes and modern

controlled landfill operation 139 PSOM7/RF/4/3 Environmentally sound Truck Wash in Moscow 140

Serbia (incl. Kosovo) 141 PSOM7/SB/1/2 Pilot glasshouse production of high quality vegetable seedlings 141 PSOM7/SB/1/3 Veal Production in Serbia 142 PSOM7/SB/2/3 Establishing a modern and well equipped pilot production facility in Serbia for the production of GRP

mouldings, polyester sandwich panels and semi-fabricates/superstructures 143 PSOM7/SB/1/5 Strawberry farm or fruit production and plant material in Serbia 144 PSOM7/SB/2/5 Establishment of an environmentally sound Serbian marine coating and painting service 145 PSOM7/SB/2/7 Production of trendy designed chairs 146

Turkey 147 PSOM7/TR/1/1 Oregano harvest and distillation for ethereal oil production special for the feed industry 147 PSOM7/TR/2/1 Innovative shipbuilding in Turkey and reduce CO2 emissions of tankers 148 PSOM7/TR/2/3 From coffee bean to coffee nut: introducing high-quality espresso coffee for the top hotels and

restaurants in Turkey 149 PSOM7/TR/2/4 Establishment of an EU-accredited pesticide residue testing laboratory in Antalya 150 PSOM7/TR/1/6 Aegean organic asparagus 151 PSOM7/TR/2/6 Introducing advanced gear technology 152 PSOM7/TR/2/.. Cooperation between umbrella organisations in Turkey and the Netherlands to stimulate

investments and trade by Dutch SMEs in Turkey 153 PSOM7/TR/4/1 Clean waterways in the Bosporus area, a demonstration of equipment for early detection and

recovery of oil spills 154 Ukraine 155

PSOM7/UA/1/2 Closing the fresh fruit circle part 1: 'Value added activities for Fresh Fruit supply to the Kiev retail sector' 155

PSOM7/UA/2/2 Setting up a supply chain for wheelchairs in Ukraine 156 PSOM7/UA/1/4 Ginkgo Biloba food supplements from the Ukraine 157 PSOM7/UA/1/5 Rapeseed Oil Production in Ukraine 158 PSOM7/UA/2/5 Production of professional clothing in Ukraine 159 PSOM7/UA/3/1 Development of a modern bonded warehouse and logistics centre in Lviv, Ukraine 161

Latin America 163

Brazil 165 PSOM07/BR/21 Establishment of Amazon rainforest canopy and river eco tourism and research 165 PSOM07/BR/23 Development of production of Recycled Eco Fibre in Ananindeua, Brazil 167

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Colombia 169 PSOM07/CO/02 Construction of first module of a modular floating dry-dock at Navtech S.A. Shipyard 169 PSOM07/CO/21 Flower Compositions in Colombia (FCC) 171

Ecuador 172 PSOM07/EC/02 Handling & processing fresh cut flowers for sea container transport 172 PSOM07/EC/03 Growing tissue culture material to tubers for pot plant Zantedeschia in El Quinche, Ecuador 174 PSOM07/EC/21 Four Season Quality Ecuador: retail-ready processing of premium roses 176

Guatemala 178 PSOM07/GT/01 Mayan Pride - A Small Growers Project 178 PSOM07/GT/21 Sustainable chain management for pre-finished pot plants of Beaucarnea in Guatemala 180 PSOM07/GT/22 Production and marketing of melons in Guatemala 182

Honduras 184 PSOM07/HN/01 Piloting the production an export of prefinished tropical plants in Honduras 184

Peru 186 PSOM07/PE/21 IQF Fruit and Vegetable Specialties 186

Surinam 188 PSOM07/SR/02 Sustainable timber drying and bio energy generation, Surinam 188 PSOM07/SR/21 Hedi Infra N.V. a powerhouse in utility services for Surinam and the CARICOM countries 189 PSOM07/SR/23 Sustainable butterfly farming in Surinam 191 PSOM07/SR/25 ICT Business Consultancy and Software Development in Surinam 192

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Africa

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Burkina Faso

PSOM07/BF/21 Pilot for a private dental care clinic and a distribution centre for dental care supplies

Location Bobo-Dioulasso Sector Other Applicant Perfors Dental Care Holding B.V., IJmuiden Recipient Clinique Saint Leopold, Societe Individuelle, Bobo-Dioulasso Start project 01 January 2008 End project 30 November 2009 Total budget EUR 779,120 (60 percent PSOM contribution)

Summary: Applicant Perfors Dental Care Holding B.V. has a dental clinic in the Netherlands and has set up international production and distribution of dental supplies under the own brand Dentalcare. Furthermore the Director of Dental Care established a clinic and distribution centre in South Africa. The recipient in the project, the private medical centre Clinique Saint Leopold (CSL) provides adequate and accessible health care for people in Bobo-Dioulasso. The third partner in the project, Sompa Central Negoce (SCN) is a trading company, operating in various industry sectors both on the local and international market. In the strategy of Dental Care the dental care sector can only fulfil its societal role if it develops from a traditional craft into a more standardized, technology driven international business. The concept which proved to be successful in South-Africa will be introduced in Burkina Faso. The three partners will establish a joint venture in order to start-up a private dental care clinic in Bobo-Diolassou, the second city of Burkina Faso. They will offer (preventive) basic dental care of good quality against affordable prices. Next to the clinic a distribution centre will be set up for the distribution of dental care supplies for the own clinic and for clinics throughout the country. Results • Legal and administrative structure established; • Capital equipment and hardware acquired and installed; • Recruitment, technical assistance and training; • Dental clinic operational, additional training, evaluation and reporting. Development effects

on knowledge transfer The project introduces new technology in dental practices and a new concept of medical supplies. The project provides training to own personnel and to users of the dental equipment.

on employment The project will create nine (9) direct jobs and nine (9) indirect jobs. Two (2) years after the pilot the project will have generated seventeen (17) direct and twenty (20) indirect jobs.

on impact environment The project has a neutral impact on the environment. The techniques used meet the latest standards on pollution and waste reduction.

on chain Local building companies will be contracted for the building activities.

on women (positive) The impact will be positive as the health care sector is a sector with many employment opportunities for women. The joint venture expects to employ at least four (4) women.

other The project will improve the accessibility of the dental care sector in Burkina Faso by offering free dental treatment to the poorest patients. Furthermore the joint venture will give information to school children about dental care and prevention of caries.

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Cape Verde

PSOM07/CV/01 Jatropha elite seeds and cuttings from Cape Verde

Location Praia Sector Agriculture Applicant Agriom B.V., De Kwakel Recipient Agro Centro, Praia Start project 01 August 2007 End project 31 July 2009 Total budget EUR 820,800 (60 percent PSOM contribution)

Summary: As a result of the world wide demand for bio fuels, investors are looking for valuable vegetable oil yielding species. One of these species is Jatropha, having the advantage to be able to produce even under harsh conditions. Over the last years already 160,000 hectare of Jatropha plantations have been established. However, it is very difficult to buy good quality seed in sufficient quantities. In Cape Verde, for many centuries the Jatropha species have developed under the extremely difficult natural conditions of the islands, which resulted in valuable genetic resources. The project intends to tap these resources and benefit from the additional advantages of Cape Verde. In the past two (2) years the Dutch horticultural research and breeding company Agriom B.V. has developed and tested a mass propagation technology for Jatropha plants. Agriom is committed to commercially set up an elite nursery and seed business in Cape Verde in joint venture with the Cape Verdian company Agro Centro, whose owner has a PhD in Jatropha cultivation and with whom a business relation is established since 2005. The project will be located in Praia, where the 8 hectare seed orchard will be established in addition to the 0.9 hectare elite cutting production facility. The relatively isolated location of the Cape Verdian islands present favourable conditions for the breeding and production programmes. While at the same time Cape Verde has a unique location with direct air links to Africa, North and South America and Europe enabling the distribution of the Jatropha plants and seeds. Results • Set-up joint venture between Agriom and Agro Centro; • Construction phase; • Pilot production and quality control in place; • Promotion, production and sales. Development effects

on knowledge transfer Thirty (30) people will be trained in nursery growing, seed production and breeding techniques, introducing new technologies to Cape Verde. Furthermore, people will be trained in administration, marketing, quality management and Human Resource Management (HRM).

on employment The project will create direct employment for thirty (30) people and after the PSOM phase in total fifty (50) persons will be employed. Indirectly the joint venture will generate employment for sixty (60) people with outgrowers for seed production after PSOM.

on impact environment Rain water will be stored for the dry season and distributed by drip irrigation. It will use marginal land for Jatropha growing. The project will contribute to the worldwide establishment of Jatropha plantations, which contributes positively to the carbon dioxide cycle. As the joint venture will promote Jatropha products on marginal lands, the project should not conflict with production capacity.

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on chain As Cape Verde has established small Jatropha plantations since many centuries, the project will regenerate the dormant Jatropha industry. It is expected that people will start using the plants for local small scale oil or diesel production and for home industries like soap manufacturing as during the 19th century. Plants will be grown for landscaping purposes, life fences and anti erosion schemes, using waste water in peri-urban areas and tourist estates.

on women (positive) It is planned that 50 percent of the employees will be women.

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Cape Verde

PSOM07/CV/21 Wind Farm on Santo Antão power generation and maintenance

Location Porto Novo, Santo Antão Sector Energy / Environment Applicant MainWind B.V., Zevenbergen Recipient Electric Lda, San Vicente Start project 01 January 2008 End project 30 June 2009 Total budget EUR 808,650 (60 percent PSOM contribution)

Summary: The demand for electrical power in Cape Verde is growing fast. The current power generation capacity can not cope with the demand of the growing number of households connected to the grid and the booming tourism sector. Currently the national utility ELECTRA is the only provider of electricity on Cape Verde, except for a small private power supplier on the island Sal. Within the frame of privatisation and the global pressure for diminishing the emission of CO2, Cape Verde offers good opportunities for an independent power provider to supply electricity based on renewable energy, like wind energy. Santo Antão, one of the bigger islands has various locations where the average velocity of the steady ocean wind reaches 10 metre per second or more: ideal sites for the installation of wind turbines. Currently on the other islands of Cape Verde there are thirty (30) wind turbines of which 22 are broken down due to a lack of local maintenance and repair services. The project comprises the installation of two wind turbines with a capacity of 250 kilowatt each on Santo Antão as well as services for installation, operation and maintenance of wind turbines, wind farm planning and management for the Cape Verdian market. For this double purpose a joint venture will be set up between the Dutch company MainWind B.V. and the Cape Verdian company Electric Lda. Results • Set-up of joint venture; • Site preparation and related trainings; • Installation of wind turbines; • Energy production phase. Development effects

on knowledge transfer All seven (7) staff of the joint venture will be trained at theoretical and on the job level in planning, installation, operation and maintenance of wind parks. Four (4) employees will follow the training course at the KEMA academy on development of wind energy projects and be trained at MainWind on installation and maintenance at existing wind parks in the Netherlands.

on employment The joint venture will employ seven (7) people. Depending on the status of the non-functioning wind turbines in Cape Verde, more people will be employed after the PSOM project.

on impact environment The impact on the environment will be positive. Generating power with two 250 kilowatt wind turbines replaces energy produced by 420 ton fossil fuels, leading to an annual reduction of emission of green house gasses of 1,260 ton CO2, 25 ton SO2 and 25 ton NOx. Besides, it reduces the transport of 420 ton fuel to Cape Verde. Complete revision of the wind turbines is also sustainable from an environmental point of view.

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on chain The impact of this project on the wind energy chain on Cape Verde will be rather big. After repair or replacement of the 22 broken down wind turbines and with constant access to maintenance, these turbines can deliver wind energy to the network at the different islands. This would mean less need for fossil fuel generated electricity or a better supply of electricity. At the same time, this offers opportunities for others to install new wind turbines at the different islands, as the costs of local maintenance contracts would come within reach of tourist resorts and local industry. As such, the project would make it possible to start new industries at locations without having access to the electricity grid, offering new job opportunities at remote areas.

other The development impact for local households will be high as the available capacity and the peak load capacity will be increased by 20 percent for Santo Antão, creating the possibility to include more households in the electricity grid, stabilizing the network and reducing the amount of black outs.

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Egypt

PSOM07/EG/22 High quality piping production in Egypt

Location Gamesa Sector Industry Applicant NEM B.V., Leiden Recipient Alhashemiah Contracting Co., Mansoura, Dakahleya Start project 01 January 2008 End project 31 December 2009 Total budget EUR 1,496,500 (50 percent PSOM contribution)

Summary: Applicant NEM B.V. provides solutions in power generation for industrial companies. Since NEM has closed their own production facilities in the Netherlands some twenty years ago, all production is executed by subcontractors. However, bad quality, delays in production and bankruptcy of the subcontractor before the end of the job, are resulting in million dollar claims by the client. NEM is therefore looking into ways to have more control over this production. Recipient Alhashemiah Contracting Co. (ACC) delivers customer-related technical services in among others mechanical and marine constructions and piping and tubing fabrication. ACC is one of the subcontractors of NEM who is performing relatively well but is lacking the facilities and housing for competitive and high quality produce. Together they will establish a joint venture with the objective to manufacture custom made, high quality complex, piping spools, to be used in the installation of power generators anywhere in the world. Project location is Gamessa, 20 kilometre from the port of Damietta. Results • Set-up joint venture; • Construction and equipping piping factory; • Recruitment and training of personnel; • Pilot production. Development effects

on knowledge transfer This pilot project brings new skills and education on how to run a piping production company according to high international quality standards (e.g. ASME standards, Euronorm). The employees of NEM Alhashemiah Ltd will all receive a (practical) training.

on employment The direct employment amounts to 79 persons during the pilot. Two (2) years after the pilot direct employment will grow to 450 persons.

on impact environment In itself this pilot project has a neutral effect on the environment. The waste material of the production process mainly concerns scrap, which can be used again. Welding fumes are taken away from the factory by ventilation. The possibility of filtering those gasses, under the local circumstances will be studied. Special grid for cleaning the piping before painting will be used. This grid can be sieved and used again while contaminant parts can be treated. Using paint that is less damaging for the environment is only possible if the final customer stipulates this possibility in the description of the end product.

on chain A direct chain effect of the project is that parts of the process will be subcontracted (e.g. röntgen analysis of welding seams). Furthermore the factory will buy standard materials (excluded pipes) at the local market.

on women (positive) The effect on the position of women is neutral. The kind of operation in general is a man's job for the factory part. The administrative part can and will be done by women.

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other English courses will be provided by the joint venture and a special focus will be placed on safety standards at the factory floor.

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Ethiopia

PSOM07/ET/01 Organic HACCP Operated Sesame Seeds Hulling Project in Ethiopia

Location Addis Ababa and Humera District Sector Agriculture Applicant Tradin Organic Agriculture B.V., Amsterdam Recipient Kaleb Service Farmers House Private Limited Company, Addis Ababa Start project 01 September 2007 End project 31 December 2009 Total budget EUR 645,738 (60 percent PSOM contribution)

Summary: The world organic food market has experienced rapid growth over the years and is expected to continue to grow with 12 percent a year. Hulled sesame seeds are used as ingredients in the food, bakery and processing industry. There is a big shortness in the market for organic hulled sesame seeds, because of the problems with pesticide residues in the hulled seeds from India and the high prices of the sesame from Latin American countries. Hence the need for a new source for organic hulled sesame seeds that is competitively priced. Ethiopia produces and exports good quality sesame seeds, however without adding the value of seed hulling and certifying the already semi-organically grown sesame. Partners in this project will set up a good quality HACCP operated, organic certified hulling factory, with the capacity to produce 800 kilogramme per hour of organic hulled sesame seeds. The project will be implemented by Tradin Organic Agriculture B.V. (Tradin), a Dutch company involved in the import, export and wholesale of organic agricultural products, and their Ethiopian partner Kaleb Service Farmers House Plc. (Kaleb). The latter is specialized in the import of different agricultural machineries and the export of agricultural food products, including oil seeds, coffee and Ethiopian spices. A joint venture will be set up to train 1,500 farmers in the Humera region in organic sesame seed growing, to buy their production and to hull the seeds in the hulling facility of the company in Addis Ababa. The sesame will be marketed by Tradin. Results • Establishment of the joint venture between Tradin and Kaleb; • Installation of all processing machinery; • Training of farmers and factory employees; • Production phase. Development effects

on knowledge transfer Fifty (50) people will be trained on processing level in operating new machinery (sortex and hulling) and on the implementation of HACCP systems and quality control. Further 1,500 farmers will be trained on organic sesame seed production.

on employment The joint venture will employ fifty (50) persons, seven (7) of them in Humera as agronomists and extension agents. Two (2) years after PSOM 93 people will be working at the company. Indirectly 3,100 people will be temporarily employed by the 1,500 farmers producing sesame seed and the construction company (100). Two (2) years after PSOM this will grow to 4,500 farmers employing 9,000 people and 110 by the construction company.

on impact environment The project will have a positive impact on the environment, because of the organic nature of the products and because of the way of organizing the production process. Water used in the hulling system will be recycled. The waste products from the hulling are going to be used for cattle feed. Cleaning and cleaning materials used within the factory have to comply with the environmental friendly rules and laws for organic cleaning, processing and storing; hence no hazardous products are going to be used.

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on chain The sesame seed will be grown by 1,500 farmers in the Humera region. During harvesting season at least 3,000 people will be employed by them. The local government’s extension workers are the providers of general agricultural advice to the farmers and will be trained by the project's trainers and agronomists. As such the impact of the project will be bigger than the farmers participating. Farmers will receive a premium on top of the price for sesame, in case it is organic.

on women (positive) Majority of the factory workers will be women, as well as majority of the harvesters of the sesame in Humera region.

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Ethiopia

PSOM07/ET/02 Power to the People, bringing solar electricity to Rural Ethiopia

Location Ethiopia Sector Energy / Environment Applicant Gira Mundo B.V., Deventer Recipient Solar Technospread Plc., Addis Ababa Start project 01 August 2007 End project 31 July 2009 Total budget EUR 743,700 (60 percent PSOM contribution)

Summary: Electricity consumption in rural Ethiopia is very low. Despite the absence of a national grid, rural households spend up to USD 10 per month on energy sources for lighting and powering telephone and entertainment appliances. Main energy sources used for this purpose are: kerosene, dry-cell batteries and rechargeable recycled car-batteries. Majority of the 60 million rural population has expressed their interest in having access to reliable and clean electricity sources, resulting in a huge potential market for other sources of electricity, like solar electricity. Currently, there are no companies promoting solar energy systems in rural areas on a sustainable way. The joint venture partners Giramundo B.V. and Solar Technospread Plc. will start a company to develop dealer networks in Jimma and Nekewmte Zones and in the SNNP Region. These dealers will be trained in promotion, marketing, assembly, installation, maintenance and repair of solar energy systems, consisting of a solar panel, a closed battery, an improved regulator and anti-theft system, with backstopping from the joint venture engineering facilities in Addis Ababa and Awasa. More advanced systems will be engineered, assembled and supplied from the Addis facility. The roof assembly materials will be made by local workshops. The dealers will be supplied with solar systems for demonstration purposes, to be installed at potential customers for a limited trial period, with the aim of boosting sales and promoting systems amongst neighbouring households. For the same reason, demonstration systems will be installed at local schools and health clinics. To improve the possibility for the rural population to purchase the systems, the joint venture will cooperate with local micro-finance institutions. Results • Set up of joint venture between Giramundo and Solar Technospread; • Engineering facility Addis and Awasa branch office established; • Staff members trained; • Sales and promotion network established; • Production phase. Development effects

on knowledge transfer Seventy (70) people will be trained in marketing techniques, installation, maintenance and repair of solar systems, engineering and system seizing, general management and financial administration and accountancy.

on employment The joint venture will employ eleven (11) people during the project phase and between 20-40 in the two (2) years after PSOM. The joint venture will need highly educated people as trainers of the dealers and their technicians. Indirectly the project will generate at least 35 new jobs for technicians at the dealer level.

on impact environment The impact on the environment will be positive, as solar electricity will replace polluting kerosene and dry cell batteries. The joint venture will organize the recycling of the old lead-acid batteries on a sustainable way.

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on chain The joint venture will create networks of at least 35 dealers. Every dealer will need at least two (2) technicians to be able to install and maintain the systems. The joint venture will source material as much as possible locally, including the metal frames, poles, system parts. Local workshops will be used to produce the roof assembly constructions. Further, as stated earlier, the joint venture will import the solar panels by sea container instead of the current import by air, allowing them to invest in huge stocks. This makes it possible for other solar companies, working at the urban level, to buy good quality solar panels in Addis instead of importing it at high cost in small quantities.

on women (positive) The direct impact on the position of women will be neutral. However, access to good lighting creates good opportunities for all family members to be engaged in education and reading activities at night time, without the negative effects of kerosene. This could have a positive impact on the position of women in society.

other Experiences in other African countries have shown that with access to PV systems, small businesses will develop new services and products, increasing job opportunities and income. Schools will benefit through access to lighting, TV and video, radio, computers. Clinics will get access to solar powered lights, fridges, and computers. Access to electricity will boost penetration of mobile telephone in rural areas, offering opportunities to rural businesses, government bodies, farmers, private households, NGO’s.

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Ethiopia

PSOM07/ET/04 The set-up of Alema Koudijs Feed

Location Debre Zeit, Ethiopia Sector Agriculture Applicant De Heus International B.V., Ede (Gelderland) Recipient Alema Farms Ltd, Finfine Start project 01 August 2007 End project 30 June 2009 Total budget EUR 824,150 (60 percent PSOM contribution)

Summary: Ethiopia has a large population of over 77 million people, of which 70 percent lives in the highlands. Despite the natural resources and favourable climates, the country still struggles with a food deficit. Major increases in both crop and animal production are a prerequisite to the nation achieving food self-sufficiency. Livestock play a vital and catalytic role, with domestic herds and flocks including around 29 million cattle, 24 million sheep, 18 million goats, 1 million camels, 7 million equines and 53 million poultry, distributed throughout the country. The traditional methods of animal husbandry show a very low output per unit of livestock. Under-nutrition and malnutrition are major factors constraining animal production. The number of medium sized commercial farms specialising in poultry, dairy, pigs, beef etc. is growing in response to the nutritional demands of the growing urban populations and rising living standards of the middle class population. These farmers are in need of value-creating farming practices, modern technologies and farm inputs. The use of compound feed is known to significantly boost the production and health performance in livestock farming. One of these commercial farms is Alema Farms Ltd. Together with the Dutch animal feed producing company De Heus International B.V., Alema Farms will set up the joint venture Alema Koudijs Feed (AKF) to produce good quality compound feed in Debre Zeit. Besides producing animal feed for medium and large scale farms, AKF will set up an extensive distribution and service system through resellers to target small scale backyard farmers. The farmers' service of AKF will focus on providing technical assistance and know how transfer on growing conditions, breeding, feeding and animal husbandry in general. Results • Joint venture foundation; • Factory buildings and storage facilities ready; • All hardware installed; • Training of employees and resellers; • Production phase. Development effects

on knowledge transfer The forty (40) employees and the twenty (20) resellers will be trained in subjects related to animal feeding and health. AKF will also provide farmers’ services, aiming at developing commercial farming and improving animal health and performance. Technical assistance and knowledge transfer will focus on growing conditions, breeding, feeding and all general aspects of animal husbandry. During the project the resellers will at least reach 5,000 small scale farmers with trainings.

on employment The joint venture will employ forty (40) persons, of which 24 are already employees of Alema Farms. Besides the joint venture will have contracts with at least twenty (20) resellers. Indirect employment will be for fifty (50) people. Two (2) years after PSOM direct employment will grow to eighty (80) people, indirect employment to 200 persons.

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on impact environment The impact on the environment will be positive, because of the improvement of environmental working circumstances for the employees by preventing the current exhaustion of dust. Further, the company will add value to by-products of local food industries and prevent the loss of valuable nutrients and proteins.

on chain Development effects on the chain will be high in Ethiopia, as the major growth market for AKF is formed by thousands of small scale chicken and other livestock farmers. If AKF can reach a substantial part of these farmers (during the pilot phase they will sell to 5,000 small scale farmers), livestock production will increase, resulting in higher income for these farmers and eventually even in a decrease of the currently very high meat prices in the cities in Ethiopia. Further, AKF provides indirect employment to the resellers, the transport sector and the necessary service providers.

on women (positive) The impact on the position of women will be positive, as AKF will have a women affirmative action policy, including access to education and management positions, equal payments, formulation of a code of practice, person of trust.

other AKF will fulfil its role as a corporate socially responsible organisation within the community around the plant, being involved in health, education, sport and humanitarian assistance. A part of the annual profit will be reserved to invest in social programmes.

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Ethiopia

PSOM07/ET/05 Freesia: growing & trading; bulbs & flowers

Location North Shoa Zone, Sululta Mulo District Sector Agriculture Applicant M. Hofland VOF, Maasdijk Recipient Travel Ethiopia Plc., Addis Ababa Start project 01 September 2007 End project 31 December 2009 Total budget EUR 819,700 (60 percent PSOM contribution)

Summary: Currently, nearly all Freesia flowers are produced in the Netherlands and mainly exported to the United Kingdom. Due to rising production costs and stable market prices, already ten (10) years a decline in production areas can be seen. This was balanced by an increasing production per hectare; however with the current production methods the limits have been overstressed. This project will make an important contribution in changing the way of Freesia flower production in the Netherlands. Currently a greenhouse grower in the Netherlands produces per planted bulb: 1) long A-flower, 2) short B-flowers and one (1) to two (2) new small bulbs. Project partners propose to produce the bulbs and B-flowers in Ethiopia and to produce the A-flowers on tables in the Netherlands. The Ethiopian bulbs will be exported to the three (3) Freesia producing partner companies in the Netherlands, applicant M. Hofland VOF, VOF M&A Barendse and René van Dijk. After production of 1) A-flower the bulb will be destroyed and a new bulb from Ethiopia will be planted. As such an efficient production in the Netherlands can be made possible, while in Ethiopia the project will generate benefits by producing and exporting also the B-flowers on a year-round basis. The three (3) Dutch companies will form a joint venture with the recipient Travel Ethiopia Plc., owner of 30 hectare land at Sululta region near Addis Ababa. Results • Set up of joint venture; • Production facility established; • Staff members trained and first production; • Completion phase. Development effects

on knowledge transfer Detailed training programme is available. All employees will be trained in subjects like overall knowledge on soil and nutrients, agronomy, disinfection processes, responsible use of pesticides, MPS, disease spotting, quality control and use of equipments. Middle management will be trained in leadership/motivational skills; advanced agronomy; accounting; sales and acquisition; maintenance. Besides courses will be given in English, computer skills, teambuilding, personal health/hygiene.

on employment The joint venture will directly employ between thirty (30) and 45 people. The big range is caused as there is no commercial example available of Freesia growing at international level. Indirectly employment will be for another ten (10) persons. In the two (2) years after PSOM this number will grow between eighty (80) and 120 people.

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on impact environment The impact on the environment will be neutral. At the start an environmental impact assessment will be done to check the impact on the use of the water sources, although the area is a former swampy area, already drained by the recipient. Drip irrigation will be used. The joint venture will produce under MPS certification. The area surrounding the farm will be planted with trees to provide shade and shelter, setting an example for other farms.

on chain The company will as much as possible use local materials for their input supply, creating business opportunities for local firms. In case other Dutch growers will follow this Freesia growing example, Ethiopia could become a major player at the Freesia market, as Freesia needs the cold nights to flower.

on women (positive) Majority of the jobs will be for women. Supervisor jobs will be especially for women, for instance on quality control, inspection, planning and packing. Special attention will be given to enable women to work at the farm, for instance by providing transport and/or arranging a nursery.

other The joint venture will allocate 1 percent of each year's turnover to facilitate a local development fund. During the first result and after consultation with the local communities the destination of the fund will be determined. Further, employees will be continuously trained on hygiene issues, which will have an impact on their health situation. Good drinking water will be made available for employees and their families. Computer classes will be organised for the Giant worker families. For surrounding small farmers visits will be organised to the farm to teach basic issues of farming, use of fertilisers, reduced use of water, etc.

28

Ethiopia

PSOM07/ET/06 Establishing a lily cultivation site in Awassa, Ethiopia

Location Awassa Sector Agriculture Applicant Klaver Heerhugowaard B.V., Heerhugowaard Recipient Tabor Herbs Plc., Awassa Start project 01 July 2007 End project 31 December 2008 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: Currently, the cultivation of lilies in the Netherlands takes place in green houses. During wintertime, the production costs are high, because of the additional heating and lighting costs. Therefore, supply of lilies from October until Mid June in the Netherlands is relatively low. The climate and the low labour costs in Ethiopia are interesting production factors, which offer good opportunities to grow lilies in Ethiopia, especially to fill the gap of low Dutch supply during the winter and spring season. For more than three (3) years Dutch lily growers have been looking for suitable locations in Ethiopia. The Klaver Lily Group has found the correct drained soil type in Awassa at the farm of Tabor Herbs Plc.. Klaver Lily is a family run company specialised in the production of lilies. Tabor Herbs has started in 2005 with the production of fresh herbs, however its owners are also specialised in the production of roses and garden plants. Klaver Lily and Tabor Herbs will establish a joint venture, aiming at the pilot production of 4 hectare of oriental lilies according to Ethical Trade Initiative and MPS certification. Results • Set up of joint venture; • Lily production facility established; • Staff members trained and first production; • Completion phase. Development effects

on knowledge transfer Management staff will be trained in management, administration and training skills. All employees will be trained in cultivation of lilies, mostly by the local supervisors. Maintenance staff will be trained separately. All staff will be trained in health and safety issues and HIV/Aids prevention and issues related to MPS and ETI (Ethical Trade Initiative).

on employment As a direct result of the project, 122 permanent jobs will be created. Besides that, during the construction of the site, approximately thirty (30) construction workers will be employed. Two (2) years after the project, the number of employees will grow to 250 people.

on impact environment The impact on the environment will be neutral. Crop rotation will be implemented, in order to avoid disinfection with methyl bromide. The company will be MPS-A and ETI certificated, which guarantees amongst others an environmental friendly production. The same environment protection measures will be taken as Klaver Lily does in the Netherlands. Pesticides will be used only if it is strictly necessary.

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on chain The joint venture aims at purchasing its materials for the building as well as wrappings, fertilizers, food, means of transportation, accountancy services and maintenance services from local Ethiopian companies, thus creating in an indirect manner employment and income for suppliers and dealers. In the Awassa region, there is not yet much horticulture, so this project will boost this sector in this region. As stated before, four (4) out of five (5) years, the soil will not be used for lily cultivation. The joint venture is investigating opportunities for alternative crop production during the years the soil is not used for lily production. This will certainly lead to additional employment and development of the local market in terms of supply.

on women Approximately 80 percent of the employees will be female. Employees will be encouraged to get education: they are expected to learn to read and write. This enhances the social and economic position of women.

other Tabor Herbs has a good working relationship with the neighbouring agricultural research centre, the joint venture will work together with the centre. The joint venture will sponsor a primary and secondary school in the Awassa region.

30

Ethiopia

PSOM07/ET/07 Establishing an ecolodge at Lake Tana, Ethiopia

Location Bahir Dar Sector Tourism Applicant Princeps Management Consultants B.V., Hoenderloo Recipient Village Ethiopia, Addis Ababa Start project 01 July 2007 End project 30 June 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: Ethiopia has a big, under-exposed tourist potential, formed by a mix of historic, cultural, archaeological, anthropological and natural attractions. It creates possibilities for cultural and educational tourism, bird and wildlife watching, water sports and recreation and trekking. Since 1999 tourism is growing at an average rate of 15 percent per year, reaching 227,000 foreign tourists in 2005. One of the problems that become visible as a result of the increasing tourism arrivals is the shortage of quality tourist accommodations. Ethiopian tour operators face big difficulties in getting accommodation for their clients, let alone modern accommodation. The so-called “Historic Route” between the ancient cities of Bahir Dar, Gondar, Lalibela and Axum comprises the most important tourists' sites in the country, attracting 45,000 international and 120,000 local tourists in 2005. Bahir Dar is located at Lake Tana, the source of the Blue Nile. It is important that the growth of tourism will happen on a sustainable way, based on the protection of the natural, socio-economic and cultural environment. The Ethiopian tour operator Village Ethiopia Plc. and the Dutch company Princeps Management Consultants B.V. will form a joint venture to develop the first eco-resort at the lake Tana area near Bahir Dar. The eco-resort will contain twenty (20) lodges with a capacity for forty (40) guests on the island Debre Mariam. Project partners will work closely together with the local inhabitants of the island. The Dutch travel agency Baobab Reizen is already involved in the design phase of the project, in order to secure that the lodge will correspond to the demands of western tourists. This eco-resort will be the first in a chain of four (4) in Ethiopia, creating possibilities for ecotourism package tours. Results • Set up of joint venture; • Eco-resort realized; • Staff members trained; • Eco-resort exploitation phase. Development effects

on knowledge transfer Modern European knowledge regarding hotel management and sustainable tourism will be introduced by this project. For this, the consortium will cooperate with the Internationale Hogeschool van Breda (Centre for Sustainable Tourism and Transport). The company will supply educational programs for the tourist guests, providing visitors a better understanding of the diversity of nature and culture. For this purpose, a small educational centre will be set up, and qualified local guides, with knowledge of the region, history, culture, the importance of the environment for our planet, endemic plants and animals and the interactions and interdependence of the various organisms will be hired and trained.

on employment During the PSOM-project, the joint venture will create a total of 38 jobs; this will grow to 86 people two (2) years after PSOM. Indirect employment will grow from five (5) to fifteen (15) people.

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on impact environment The impact on the environment will be neutral or even positive. The lodge will be sustainable in terms of the intercourse with nature, culture and people. By designing the resort care will be taken to incorporate the lodges in the landscape and to use locally available, natural building supplies. The consortium will implement solar energy for warm water, waste water will be treated by means of helophyte filters, waste treatment and separation system, examine the possibility to re-use water. The local people will be trained in a sustainable intercourse with nature, currently they are deforestating the islands. Finally, the consortium will start a reforestation project in the vicinity of the lodges, to compensate for the loss of nature and trees on the resort.

on chain The positive impact of this project may be that competitors in the future will copy the concept and thus enhance sustainable tourism in Ethiopia. Further, the fact that more eco-resorts will exist in Ethiopia, opens the possibility to start offering ecotourism package tours visiting the different ecoregions of the country.

on women (positive) The impact on the position of women will be positive. Not only because at least 50 percent of the employees will be female, but because of the special attention the project partners will pay to the education and integration of women in the project.

other Materials and services that are necessary for the construction will be supplied locally as much as possible. Local building workers will build the site. The furniture and beds for the lodges, reception, restaurant etc. will be traditional and will reflect the local culture. Consumables (such as food, etc.) will be bought from the local markets or produced by the farmers on the island. On the resort, there will be a small souvenir shop, to be owned and operated by the local population. It is the explicit purpose, to involve the local population as much as possible in the project. On the island, there are currently living approximately 100 people, twenty (20) of them will be the future personnel of the lodge.

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Ethiopia

PSOM07/ET/21 Establishment of artichoke cultivation and export chain

Location Sebeta Sector Agriculture Applicant K.V.E. Flower Handling V.O.F., Nieuw Vennep Recipient Yalkoneh Flowers P.L.C., Addis Ababa Start project 01 January 2008 End project 31 December 2009 Total budget EUR 618,928 (60 percent PSOM contribution)

Summary: The applicant KVE Flower Handling VOF imports various summer flowers from its French supplier Ferme Fleurie SCEA to the Netherlands for sales on the auctions, among which artichokes. Artichokes are sold as flowers and also used as decoration in flower bouquets. But artichokes are mainly known as vegetable. It is the latter that presents the opportunity to be grown year round in Ethiopia. As such the recipient company Yalconeh Flowers P.L.C. will produce the artichokes on a farm of 6 hectares in the Sebeta region. The artichokes will be transported by conditioned sea containers to France, where 51 percent of the artichokes will be sold as vegetables on the French market. The remaining production will be transported to the Netherlands and sold at the Dutch flower auctions for decoration purposes. Yalconeh Flowers is currently producing summer flowers and is owned by two Ethiopian entrepreneurs and the owner of KVE Flower Handling. In the last phase of the project local farmers will be trained as outgrowers to enable them to start producing artichokes on their surrounding farms. As such the major part of the project expansion after the PSOM project will be accomplished by local smallholders. The farm will produce according to the recently established sectoral Code of Conduct of the Ethiopian Horticultural Producers and Exporters Association, at the same level as EurepGAP requirements. Results • Business start-up; • Artichoke production started; • Set-up of post-harvest handling and sea transport; • Production phase. Development effects

on knowledge transfer The project will train forty (40) people in the production and handling of a new vegetable crop, quality management, nursery and laboratory operations and statistical analysis. Also the future outgrowers and their employees will be trained in artichoke growing. A novelty for Ethiopia and the horticultural sector is the introduction of sea-transport for as well the vegetables as the flowers. The knowledge gained by these trials will be shared with all involved in the sea-transport platform.

on employment Yalkoneh Flowers will employ forty (40) people for the artichoke production. Two (2) years after PSOM sixty (60) people will be employed and indirect employment will be created for fifteen (15) people working with the outgrowers.

on impact environment Yalkoneh Flowers will work according to the EHPEA Code of Conduct, as such following environmental requirements comparable with MPS-A level. An environmental impact assessment is part of this Code of Conduct. A test on the water availability has already being implemented. Yalkoneh Flowers will use drip water irrigation, as such reducing the water use. This area is ranked in Ethiopia as potential floricultural area.

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on chain Local enterprises will be sought to supply pots, pallets, boxes, containers and other packaging materials. Local transport companies will transport the containers with artichokes to the Djibouti-harbour. Currently there is a huge import-surplus in terms of containers, as such making the transport to and from Djibouti more viable for the contractor involved. Successful organisation of the conditioned sea-transport will improve the situation for all the horticultural exporting companies in Ethiopia. After PSOM the company wants to start an outgrower scheme with the surrounding five (5) farmers, generating employment for additional fifteen (15) people.

on women (positive) Due to the relatively heavy crop, only 50 percent of the employees will be women.

other Depending on the needs, Yalkoneh Flowers will organise a day care for children, educational programmes and medical care.

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Ethiopia

PSOM07/ET/22 Mama's Fresh Injera: Industrial Injera Production in Addis Ababa, Ethiopia

Location Addis Ababa Sector Other Applicant J. Vink jr. Holding B.V., Sliedrecht Recipient Hailu Tessema Fresh Injera, Addis Ababa Start project 01 January 2008 End project 31 December 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: Injera is a traditional Ethiopian pancake-like staple food and a fixed component of the daily meal of almost all Ethiopian citizens. It is made of a mixture of water and an indigenous grain known as teff. Production of injera for sale is almost exclusively home-based or catered for by - usually informal - micro-businesses under rather primitive conditions, using manual labour and single woodstoves (occasionally electrical stoves are used). Production volumes are low (300-500 daily). Urbanization and modernization of Addis Ababa society has led to a growing middle class, expansion of a catering and retailing sector and the growth of an institutional market for injeras (school and army campuses, hospitals, etc). This has resulted in a vast demand for standardized packed injeras of constant quality and large reliable supply. The project aims to tap the rapidly growing demand for reliable supply of standardized packed injeras. It does so by establishing a modern semi-automated injera bakery (2,500 square metre) with a capacity of 60,000 injeras daily, thereby creating 174 permanent jobs within the project period. Through follow-up investments this will eventually (2011) be increased to 180,000 pieces and 500 workers; in addition the export market will be penetrated. The project will be implemented by a joint venture whose shareholders are the Dutch applicant J. Vink jr. Holding B.V. and the local partner Hailu Tessema Fresh Injera. With regards to the applicant, implementation and management of the project will be done by De Bioderij B.V. (100 percent daughter of applicant). De Bioderij is market leader in the Netherlands of pre-packed pancakes and related convenience food products and exports to 26 countries worldwide. The recipient Hailu Tessema Fresh Injera - based in Addis Ababa - started five (5) years ago and expanded daily production to 7,000 injeras to date within the "confinement" of traditional production system and technologies. At present it is the largest truly commercial producer of injera in the local market. Results • Set-up joint venture J. Vink jr. Holding B.V.; • Plant built and fully equipped; • Hiring and training of remaining employees and pilot production; • Completion of the project. Development effects

on knowledge transfer The project has a strong component of knowledge transfer at various levels: higher management, middle cadre and production workers. Apart from on-the-job training and skill development, a formal training programme is planned for at two (2) levels: (a) training-of-trainers for five (5) middle cadre staff, (b) who will be trained as subject-matter trainers for all lower cadre staff (169). Training and skill development will encompass all operational aspects of the business entity: production, management and administration, marketing and sales.

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on employment The project will create direct employment for 174 people. Since the present enterprise of the recipient will be phased out and production and employees shall be integrated into the new industrial bakery once operational, net direct employment creation is 174 - 40 = 134. Two (2) years after the PSOM project period this number will have increased to 500. For indirect employment creation these numbers are seventeen (17) and fifty (50) respectively.

on impact environment The impact on environment will be positive in terms of replacement of woodstoves by electrical baking units with a much higher energy-efficiency rate and less emission of smoke. Waste water from the production process and cleaning of floors and installations will be discharged in accordance to sound practice and (local) government regulations.

on chain The project will have a positive impact on the agri-business chain. Demand for high quality year round supply of teff will benefit farmers. The joint venture guarantees fair price and payment conditions to the local producers/farmers. The injera production sector will be modernized. The diversifying injera market will benefit from a reliable supply of standardized high quality products. Export markets will be penetrated at medium-term.

on women (positive) It is foreseen that 80 percent of employees will be women.

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Ethiopia

PSOM07/ET/24 Gorgora Nova Spa Resort & Water Lodges

Location Gorgora, North Gondar Sector Tourism Applicant Green Dream Company B.V., Zaltbommel Recipient Tsedale Nega College, North Gondar Start project 01 January 2008 End project 31 December 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: The project Gorgora Nova Spa Resort and Water Lodges is an eco-tourism project that comprises of the establishment of a main building with eight (8) hotel rooms, an eco-tourism training centre and twelve (12) water lodges in Lake Tana, Gorgora, Ethiopia. Besides the accommodation and spa/wellness facilities, a variety of eco-tourism activities will be offered. The objective is to develop an unique tourist accommodation that attracts both domestic and international tourists and will function as an important recreational facility for inhabitants from the city of Gondar, Bahir Dar and even Addis Ababa. The project is specifically meant for the development of sustainable tourism to act as a trigger for job creation and economic development in the Gondar district. It is therefore specifically focussed on the on-the-job training of the employees of local hotels and restaurants and local students on all aspects of sustainable tourism and hotel management. Short term theoretical and tailor-made trainings will be offered within the Tsedale Nega College. A joint venture will be established between the Dutch Green Dream Company B.V. (specialised in labour intensive projects on real estate development, IT infrastructure and tourism), the Tsedale Nega College (a private vocational training institute for the middle class society in the city of Gondar) and Princeps Management Consultants. Both the latter as well as the Ethiopia Hotel Gondar participate in the consortium as economical partners with expertise in sustainable tourism development and hotel management. Results • Set-up of joint venture between Green Dream Company, Tsedale Nega College and Princeps Management Consultants; • Project development phase; • Construction phase; • Training and marketing phase; • Production phase. Development effects

on knowledge transfer Because of the nature of the project partners, impact on the transfer of knowledge will be high. All staff will be trained on related tourism and hotel management issues. Also the on the job trainings for employees of other hotels and restaurants will initially take place at the Ethiopia Hotel in Gondar and later at the resort.

on employment The resort will employ 38 people on full time contracts; in addition forty (40) indirect jobs will be created during construction, at local tour operators, suppliers and other services. In the two (2) years after the project in total 55 people will be employed and indirect employment will be created for 55 people.

on impact environment The impact on the environment will be positive. The company will work according to international standards of eco-tourism and educate the people from Gorgora city on environmental issues, a.o. waste disposal. They will introduce water lead top cooling from the lake, solar heating and proper waste and wastewater management.

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on chain Local spin-off is expected to be strong. First of all, all activities like boat trips, bird watching, horseback riding, and guided tours will be offered in cooperation with the local community, creating direct jobs. In the second place food and beverage, household textiles, transportation and other services and supplies needed to operate the resort will be sourced locally. Construction will be done by a local company.

on women (positive) The impact on the position of women will be positive. The project will employ at least 50 percent women; women will be considered also for management positions and stimulated to participate in the education programme of the project with TNC.

other To financially support the development of local communities a fund will be created. This fund will be fed with donations from customers and from a percentage of the profit of the resort. For the identification and execution of such projects, the resort shall enter into partnerships with a local NGO and the local authorities. In close contact with the local business community, TNC will continue to increase the number of business training subjects, giving opportunities for local business development.

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Ethiopia

PSOM07/ET/25 Dipasa Agro Ethiopia Ltd

Location Burayou, Ethiopia Sector Other Applicant Dipasa Europe B.V., Enschede Recipient Agro-Prom International Plc., Addis Ababa Start project 01 January 2008 End project 31 December 2009 Total budget EUR 824,136 (60 percent PSOM contribution)

Summary: Ethiopia has significantly increased sesame seed production from less than 60,000 hectares in 2001 up to 136,000 hectare in 2004 and exported more than 150,000 tons sesame seeds in 2006. Production acreage is still increasing. It is estimated that about 3 million farmers are engaged in the production of oil seeds in Ethiopia. Other oil seeds cultivated in Ethiopia relevant to this project include linseed, Niger seed and safflower seed. Except for sesame and Niger seeds, all other seeds are mainly for domestic consumption, albeit its export potential. All exported sesame seeds are cleaned only up to a maximum of 99.5 percent purity, requiring further specialised cleaning and processing before it can be used for toppings and inclusion in bread and food snacks. As such, Ethiopia is missing out on added value, which could be achieved locally. Besides, there have been recent food scares in the United States of America, Japan, Germany and other European countries concerning salmonella bacteria in sesame seed. Roasting has proven to be the most effective and favourable technique to eradicate salmonella in sesame seed, whilst maintaining the natural taste. This project will jump in this added value vacuum by introducing the first 99.9+ percent cleaning and roasting plant for the four mentioned oil seeds. Three hundred (300) farmers in the Humera region will be trained to produce the required quality as according to HACCP principles. The project is a joint initiative of Dipasa Europe B.V. and Agro Prom International Plc.. Dipasa in the Netherlands is specialised in marketing and processing of oil seeds and related bakery products. Agro Prom is an oil seeds and pulses trading company based in Addis Ababa. A joint venture will be formed on the basis of equal share division. Results • Set-up of a joint venture; • Processing building completed; • Machinery installed and employees trained; • Set up of quality control system; • Production phase. Development effects

on knowledge transfer Employees will be trained in the technique of roasting and hulling of the sesame seeds and in the techniques of cleaning of all oil seeds towards 99.9+ percent. All employees and the 300 farmers and their organisations will be trained in tracking and tracing system and HACCP requirements.

on employment The company will employ 25 people during the PSOM phase. This will increase to thirty (30) people in the two (2) years after PSOM. During the project phase 300 farmers will be trained as out growers in Humera region, this will increase to 600 in the two years after PSOM, 900 in the next years, etc.

on chain During the construction phase local construction companies will be involved to build the factory. During the production phase 300 local farmers and their families will benefit from the project activities, as well as the transport and logistics companies.

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other The company will provide health care to its employees and train them on HIV/Aids issues.

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Gambia

PSOM07/GM/01 Next-door Internet, communication and energy shop in The Gambia

Location Seven locations within a 20 kilometre radius of Banjul. Headquarters are in Serrekunda Sector Energy / Environment Applicant Econcern B.V., Utrecht Recipient Nice Gambia Ltd, Bakau Start project 01 August 2007 End project 31 July 2009 Total budget EUR 822,787 (60 percent PSOM contribution)

Summary: Applicant Econcern B.V. and recipient Nice Gambia Ltd want to offer Energy, ICT and Education related services to Gambian consumers by setting up a franchise of internet, communication and energy shops called NICE cafés. These services will be based on solar energy as the Gambia currently lacks constant and reliable power supply. Econcern’s mission is to make durable energy available around the globe. NICE cafés will allow people to have access to energy related services, which they cannot afford individually. Services provided include an internet café, education, a mini cinema (both for educational purposes as pleasure), battery charging services, printing and scanning. Apart from the project's focus on individual people, the NICE cafés also target NGO's who lack the facilities to provide their target group with proper education and extension services. The project partners already started two (2) pilot cafés to explore the possibilities of energy related services in close collaboration with a NGO. In order to spread all over the Gambia however, partners need to go commercial and set up a franchise, which brings along considerable risks. This project aims to set up seven (7) new cafés which will be prepared to be rented out to local franchisees. As the recipient is already a 99 percent daughter of the applicant, no new joint venture will be set up. The first locations will be in urban areas within a 20 kilometre radius from the capital city of Banjul. In the future, NICE aims to establish fifty (50) cafés all over the country, thereby making durable energy and ICT services available close to all Gambians. Results • Establishment of management agreement and renting project locations; • Seven pilot locations established; • Recruitment and training of personnel and franchising concept; • Franchise organisation realised. Development effects

on knowledge transfer All employees are trained on the job to operate the pilot locations. This includes training on organisational management, human resource management etcetera. In the cafés multiple ICT courses will be given to local people. This project allows people all over the Gambia to have access to sound educational facilities.

on employment The project will employ 45 people in The Gambia and two (2) in the Netherlands directly. Indirectly another twenty (20) people in the Gambia and four (4) in the Netherlands will be employed. Two (2) years after the project 125 people will be employed directly and sixty (60) indirectly in the Gambia, versus six (6) directly and twelve (12) indirectly in the Netherlands.

on impact environment The impact on the environment is positive as the cafés will rely on solar energy instead of kerosene generators and solar energy will be promoted to the local population.

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on chain As a franchise organisation, the NICE concept will benefit individual entrepreneurs who will become franchisees in the future. Second, with the development of different financing schemes for franchisees and customers of NICE, local financial institutions may be involved. Third, several spin off activities may be expected resulting from the availability of sound ICT services and secure and cheap energy supply. Finally, cleaners, builders, security personnel etcetera will be involved in the operation of the NICE cafés.

other Apart from giving the local people access to knowledge provided through the ICT services, the NICE facilities also give local people the opportunity to take basic IT courses and other educational services at low costs. Another development effect is the ‘next-door’ access to durable energy, which many people do not have at their homes.

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Gambia

PSOM07/GM/02 Introduction of potato and onion production in the Gambia

Location Kuloro Farm, Banjul Sector Agriculture Applicant Farm Frites Beheer B.V., Oudenhoorn Recipient M.A. Kharafi & Sons Ltd, Serrekunda Start project 06 July 2007 End project 05 July 2009 Total budget EUR 822,000 (60 percent PSOM contribution)

Summary: Applicant Farm Frites Beheer B.V. is a privately Dutch owned company active in the production and marketing of fresh and frozen potato products. The founder of the company handed over the company’s daily management to his son, and now spends part of his time and capital to the development of projects in developing countries. The projects need to have clear commercial potential, but at the same time need to have a positive humanitarian and social impact in terms of employment, food supply and income position. In the Gambia, all potatoes and most of the onions are being imported. As there is hardly any local production and as there are no cooled storage facilities, the products tend to be relatively expensive. Together with recipient M.A. Kharafi & Sons Gambia Ltd, Farm Frites therefore wants to set up a production chain for potatoes and onions on a 50 hectare plot in Kuloro, including a cooled storage facility. The partners hereby want to create a stable market outlet for onions and potatoes in the Gambia and the neighbouring Senegal. Theoretically the local climate allows for two (2) crops of onions and potatoes per year. Nonetheless, this never has been proven and the partners will have to make sure to harvest the second crop just before the rainy season starts. In order to deliver onions and potatoes to the market all year round, storage facilities are required. Recipient M.A. Kharafi & Sons Gambia Ltd is part of the Kuwait based Kharafi company. In 2002 they have started a 200 hectare vegetable farm in Kafuta. Farm Frites and Kharafi have successfully cooperated before in Egypt in the eighties, by setting up a potato and vegetable farm, now employing thousands of people. In the Gambia, they will establish a new joint venture together with third party Farm Foods Gambia Ltd. Farm Foods is an investment company set up by the founder of Farm Frites and a honorary consul for the Gambia. Results • Establishment of the joint venture; • Delivery of field equipment and training; • Delivery and installation of halls + equipment for storage and handling of potatoes and onions; • Production and marketing of onions and potatoes. Development effects

on knowledge transfer Six (6) employees will be trained on operation and maintenance of equipment and on spraying equipment and safety precautions. Another six (6) employees will be trained to operate, maintain and repair the storage equipment. A Dutch experienced potato grower will be (semi)permanent at the project location during the growing season to transfer the knowledge directly on site.

on employment The project will provide fulltime employment to twelve (12) people directly, and seasonal employment to 120 people. Two years after the project, the joint venture will employ a total of 32 people directly and 480 people for seasonal work.

on impact income The joint venture will pay 150 percent of the regional minimum salaries.

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on chain The project will influence local consumption standards as good quality potatoes and onions will be available at reasonable prices throughout the year. Furthermore, the joint venture will use the project equipment to prepare land near the five (5) villages surrounding Kuloro and supply the people with seed potatoes, fertilizer and training in order for them to produce their own crop.

on women (positive) At least 50 percent of the workers will be women.

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Ghana

PSOM07/GH/01 Agro-Forestry Company Ghana

Location Asubima, Kumasi Sector Forestry Applicant Form Ecology Consultants B.V., Hattem Recipient Penta Ltd, Accra Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,406,508 (50 percent PSOM contribution)

Summary: The applicant Form Ecology Consultants B.V. (Form International) provides advisory services and training in the field of sustainable forest management and certification. The director of the recipient company Penta, is engaged in the hotel and real estate business and in agricultural projects in Ghana. The third local partner, Wienco Ghana, is a company supplying fertilizers and agricultural inputs in Ghana. Some years ago FORM carried out a study for plantation investments in Ghana. The outcome was that the potential for commercial forestry in Ghana is good due to favourable climate and soils and the commitment of the Ghanaian authorities. The partners, all interested in commercial forestry, decided to join forces to start a commercial reforestation project. Serving as an example for sustainable plantation establishment and management, thus attracting new investors to the sector. In the degraded forest reserve of Asubima, north of Kumasi, the partners will set up a demo plantation of 400 hectare, together with a nursery to cultivate the trees. The plantation will be FSC and CO2 certified and will serve as demo and training ground. Furthermore the partners will offer commercial forestry services such as plantation management and certification. On an additional 25 hectare the partners will start an agro-forestry project with local farmers. For the purpose of this project a joint venture will be set up between FORM, Penta and Wienco Ghana. Results • Joint venture established; • Basic infrastructure in place for nursery, offices and training centre; • Model plantation established and staff trained; • Commercial forestry services in place and model plantation completed; • Follow-up business plan. Development effects

on knowledge transfer The joint venture staff will be trained in sustainable forest management, nursery techniques, soil survey, FSC and carbon credits certification, taungy plantation system, marketing and sales. In addition the same training will be offered to paying clients.

on employment The direct employment amounts to 48 persons during the pilot (forestry engineers, nursery staff, plantation staff, security, drivers, administration), plus fifty (50) part time jobs. Next to that 25-50 small holders will be involved in the project for agro-forestry. After the pilot direct employment will grow to 68 full time and 150 part time jobs.

on impact environment The sustainable management of the plantation will have a positive effect on the restoration of a degraded forest area, preserving biodiversity, avoiding erosion and slash and burn practices. The plantation will be FSC and CO2 credits certified.

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on chain The joint venture will involve local building and transport companies in the project as well as suppliers of agricultural inputs. If the pilot proves successful this will have a positive social-economic effect on the timber sector by creating employment, export earnings and attracting foreign investment.

other The project will show to farmers that forestry and cash crops can go together on the same land. This will raise awareness of the long term benefits of planting trees as means of investment for small farmers. The small plantations of the farmers might be accepted as collateral for local banks, giving small farmers access to credit.

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Ghana

PSOM07/GH/03 Pilot Project consumer plastic waste collection & recycling Ghana

Location Village of Aburansa, KEEA-district Sector Energy / Environment Applicant Cyclus N.V., Gouda Recipient Vanhold Constructions Ltd, Legon - Accra Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,484,715 (50 percent PSOM contribution)

Summary: Cyclus N.V. is involved in waste management and public space management in the Gouda area. The key activity of Van Hold Construction Ltd is the construction of residential properties in the southern part of Ghana. Next to applicant and recipient two (2) technical partners are involved in the project: Envirotec which main activity is to provide equipment and know how for plastic recycling. And Design 180, which is specialized in consultancy on environmental problems and waste management. Three years ago the applicant and recipient met during a project to establish a waste collection system in the city of Elmina in the Central Region. After realization of this system, partners thought of a way to turn (plastic) waste into a viable business. For Cyclus this is an interesting commercial activity, giving the possibility to share its knowledge on waste management and recycling. Van Hold 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 Central Region. The collected PET/HDPE and LDPE plastics will be recycled in a plant which will be built in the KEEA district in the city of Elmina. The plant will produce plastic scrap (flakes), pressed plastics and construction materials such as roof parts and tiles. Applicant and recipient will set up a joint venture for this purpose. Results • Inception phase completed; • Plastic recycling factory completed and operational; • Staff hired and trained, knowledge transfer and technical assistance; • First plastic collection and recycling and first plastic sales realised; • Project completion. Development effects

on knowledge transfer The transfer of knowledge will cover the introduction of a consumer plastic waste collection system and production of construction materials out of plastic and sand. The joint venture employees will be trained in technical characteristics of plastics, separating and sorting, operating of equipment, production of construction materials.

on employment The joint venture will employ sixteen (16) persons. Indirect employment is created by paying the people collecting the plastic waste (equalling to 502 jobs during the pilot). Two (2) years after the project the joint venture employs 24 people while the amount of indirect incomes has grown to 2,583.

on impact environment The project will have a positive effect on the environment of the Central Region as it will reduce pollution by plastic waste. The water used in the factory will be cleaned.

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on chain Local building companies will build the factory. The introduction of plastic waste collection and recycling creates a whole new economic sector which on the longer term reduces imports of raw materials for plastic production in Ghana.

other The project will create awareness in the field of environment and treatment of waste.

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Ghana

PSOM07/GH/04 The setting up of a Tilapia production and filleting facility in Ghana

Location Sogokope Sector Agriculture Applicant Anova Holding B.V., ’s-Hertogenbosch Recipient Newco A.P.I. Ltd, Navrongo Start project 01 July 2007 End project 31 July 2009 Total budget EUR 1,352,318 (50 percent PSOM contribution)

Summary: The applicant Anova Food B.V. is a company active in production, import and distribution of (fresh) fish and has subsidiaries in various countries in the world, including Kenya and Tanzania. In the Netherlands Anova is one of the partners in a tilapia fishfarm. The recipient Newco Api Ltd is a tilapia hatchery and fingerling production facility situated in the north of Ghana. Anova Food has an interest in securing its supply of fish as demand is growing and worldwide production lacks behind. The director of Anova has concluded that Ghana could be a reliable supplier of Tilapia as this fish originates from Africa and can be produced year round in Ghana, because of the high temperatures. Recipient Newco on the other hand, is looking for an outlet for his fingerlings as his farm proved to be ideal for the production of fingerlings because of the remote geographical situation. For the same reason it was less suitable for maturing fish and exporting them. The partners will thus join forces and establish a fish farm and fish filleting plant in the south of Ghana near the River Volta. The fingerlings will be provided for from the production facility in the north. Results • Set up of joint venture; • Hardware imported, personnel recruited and water works established; • Buildings and processing equipment installed; • Business developed. Development effects

on knowledge transfer The joint venture will introduce a new activity in Ghana, which is fish processing through filleting. The joint venture will provide training in the following fields: operation, maintenance of machines in the filleting plant, safety, hygiene (HACCP) and storage (ten persons in plant), filleting process (fifteen persons in plant), all aspects of fish farming (own farm and outgrowers, 25 persons in total), feed manufacturing (four persons).

on employment The joint venture will employ 85 persons during the project period (including personnel on own farm and outgrowers). Indirect jobs (200) concern people producing fish feed. Two (2) years after the project the amount of direct jobs is 120 and of indirect jobs 300.

on impact environment The effect on the environment will be neutral. Naturland standards for organic aquaculture are the basis of the approach.

on chain The joint venture will involve small scale farmers as out growers in the project. The outgrowers programme entails assistance for: building fish ponds, training on fish farming, supply of fingerlings and fish feed, assistance with harvesting, guaranteed outlet for the fish. Furthermore local farmers can supply the joint venture with agricultural products for the production of fish feed.

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on women (positive) The effect on the position of women will be positive as 60 percent of the workforce will consist of women.

other The joint venture will establish a community development fund from an annual contribution from its profits to benefit the villages that surround its facility. Educational programmes can be supported by the fund.

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Mali

PSOM07/ML/21 Development of Artificial Insemination Services in the Malian Livestock Sector

Location Bamako, Koutiala Sector Other Applicant KI Samen B.V., Panningen Recipient SOPEMA, Koutiala Start project 01 January 2008 End project 30 June 2009 Total budget EUR 529,600 (60 percent PSOM contribution)

Summary: Cattle rearing is a very important sector in the agricultural economy of Mali. Production levels have steadily increased over the past few years, but productivity in both the dairy and beef cattle sector has remained low. The innovative and more commercial livestock farmers are particularly found in the areas around the main cities (Bamako, Koutiala, Segou, etc). These farmers produce milk for the urban dairy processing industries and / or are engaged in the fattening of beef cattle. They have access to improved feed produced from cotton seed cake, molasses, wheat and rice bran and maintain the health of their cattle. Off and on, the Malinese government has imported semen from France with the goal to boost milk and at a lesser stage meat production. The quality of this semen was in general poor and the characteristics of the bull unknown to the client. The Applicant, KI Samen, a private AI-breeding station from the Netherlands, will establish a joint venture with SOPEMA, importer of veterinary medicines and semen for the animal husbandry sector in Mali. The joint venture will import semen from the Netherlands on a regular basis, built and equip reception and storage facilities in Bamako and Koutiala and commercialise this product via a network of fifty (50) private veterinary doctors and technicians to be equipped with basic tools and semen. At the end of the pilot a detailed plan will be prepared to start a breeding farm to select and breed local bulls for local semen production. Results • Business structure operational; • AI service and distribution centres established; • Staff recruited and trained; • Marketing and sales program operational; • Cattle breeding farm and strategy planned in detail. Development effects

on knowledge transfer Knowledge transfer is the main pillar of the project. All staff will be trained (in the Netherlands and in Mali). Through them local veterinarians will be trained. Subjects for training are: heat detection techniques, practical AI-skills, quality control, record keeping, animal selection and breeding

on employment The direct employment amounts to sixteen (16) persons during the pilot. After the pilot direct employment will grow to 24.

on chain Some fifty (50) veterinary doctors will be involved and earning an income out of the new activity. This will also redynamise their operations on the veterinary chapter by having access to transport means already paid for. Dairy processing units are already producing at near full capacity, not able to tackle the current demand for dairy products and will have the possibility to expand their production as a result of higher milk production.

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on women (positive) The impact of the project on the gender situation in Mali is expected to be positive / neutral. There are a number of female farmer organizations engaged with livestock rearing. The project partners will make sure that these groups will be targeted also to make sure that the female livestock owners will also have access to the services required to upgrade the performance of their cattle. Women and men will have equal opportunities for employment at the KI Samen/SOPEMA joint venture company.

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Morocco

PSOM07/MA/22 Pilot Mushroom Production Unit in Morocco

Location Meknes Sector Agriculture Applicant Panbo Systems B.V., Beringe Recipient KWIKS Champis SARL, Temara Start project 01 January 2008 End project 30 September 2009 Total budget EUR 1,498,511 (50 percent PSOM contribution)

Summary: The applicant Panbo Systems, experienced in design, technical support and implementation of turn key commercial mushroom projects, works in more than fifteen (15) countries worldwide. The Moroccan recipient, formerly active in the retail and restaurant business, identified the cultivation of mushrooms as an opportunity in Morocco. On the basis of the positive findings of an extensive market survey, applicant and recipient decided to set up the joint venture KWIKS Champis in order to start the cultivation of mushrooms in Morocco. Commercial cultivation of mushrooms does hardly exist in Morocco, whereas demand for fresh mushrooms is growing, also as a result of the growing tourism industry. The joint venture will set up six (6) growing rooms which will be equipped with modern climate control equipment, growing shelves and sensors connected to a computerised monitoring system. High quality growing substrate, already enriched with champignon mycelium, will be imported from the Netherlands to grow high quality mushrooms. The six (6) growing cells will enable the joint venture to have a constant supply of mushrooms. The joint venture targets the main restaurants and large retailers in Casablanca and Rabat to start with. The remainder of mushrooms can be sold at the wholesale market of Casablanca. Results • Business planning and registration finalised; • Production units constructed; • Starting up of mushroom production process; • Expansion of the marketing and supply arrangements; • Investment and marketing plan for expansion. Development effects

on knowledge transfer The project will introduce modern technology and know how on the commercial cultivation of mushrooms in Morocco. Key elements in the technology transfer are: construction and equipment requirements, quality and use of growing substrate, hygiene and crop protection, control of growing conditions (air, temperature, humidity), harvesting and post-harvest handling.

on employment The direct employment amounts to 32 persons during the pilot. After the pilot direct employment will grow to 43. Indirect employment creates four (4) and later on six (6) jobs.

on impact environment The project will have a neutral effect on the environment, as the cultivation is without use of agro-chemicals to control pests and diseases. Cleaning of cultivation rooms between crops will be done with steam treatment. The residues of the growing substrate will be sold to farmers as soil enrichment.

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on chain The joint venture plans to develop a scheme of contract growers who will grow mushrooms for the joint venture. These cultivators will get training from the joint venture and will also be assisted with equipment and substrate.

on women (positive) The impact on the position of women will be high as more than 50 percent of the workforce (18) will consist of women. As in rural areas most women can not read and write, the joint venture will offer language courses (French in reading and writing).

other This project will create work in a very important sector of the Moroccan economy. The own farm and later on the contract growers will provide work in rural areas, thus countering the migration of people from rural to urban areas. Furthermore the project will substitute actual import of mushrooms with local production.

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Morocco

PSOM07/MA/23 Development of an integrated Barite grinding plant of the oilfield sector at Safi, Morocco

Location Safi Sector Industry Applicant CEBO International B.V. IJmuiden Recipient Broychim s.a.r.l., Casablanca Start project 20 December 2007 End project 15 December 2009 Total budget EUR 1,424,469 (50 percent PSOM contribution)

Summary: The applicant CEBO is a processor of minerals for the gas- and oilfield industry. CEBO operates a barite production facility in IJmuiden to service the North Sea oil and gas industry. Recipient Broychim is a Moroccan supplier of barite, amongst others to the applicant. Broychim operates a talc grinding plant in Casablanca and imports and distributes colorants for the varnish industry. Applicant and recipient have been working together for three (3) years now. To avoid double transportation of the raw material to the Netherlands and of the finished product back to African customers, CEBO and Broychim decided to jointly start a barite grinding plant in Morocco. This way the raw material can be processed locally, allowing Broychim to sell an end product, and CEBO to operate more cost effective, thus making the African markets more attractive. The operations of the new plant, to be constructed at Safi, consists of breaking, grinding, intermediate storing in silo's, packaging and distribution to clients, oilfield service companies in Africa. Results • Establishment of joint venture; • Production plant constructed and operational; • Recruitment and training of personnel; • Business development. Development effects

on knowledge transfer All employees will be trained on the job to operate the mill. Employees of the joint venture will be trained in operation, maintenance of the mill, lab testing, shovel driving, forklift driving, administration, marketing and HRM. Furthermore local mining companies and artisans will be informed and trained on how to meet the OECD guidelines on environment, health and safety as well as the ILO principles.

on employment The direct employment amounts to 25 persons during the pilot. After the pilot direct employment will grow to 35 jobs, including extra personnel for the warehouse activity. Indirect employment consists of miners who extract the raw material and of truck drivers and is estimated at 250 persons during the project period.

on impact environment The impact on the environment will be neutral. The mining activity is underground and almost exclusively takes place in desert/waste land. The joint venture will pay specific attention to the way mining is executed.

on chain The joint venture will set up a vendor audit system in order to check whether their suppliers of raw material comply with ILO and OECD guidelines with regard to sustainable mining practices. When required suppliers will be trained in these matters.

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on women (positive) The impact on the position of women will be neutral. Three out of 25 jobs (in the office and laboratory) will be carried out by women in a sector highly dominated by male labourers.

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Rwanda

PSOM07/RW/21 Manufacturing of Solar Water Heating Systems for domestic and industrial purposes

Location Kigali Sector Energy / Environment Applicant Solar Construct Ltd, Kampala - Uganda Recipient Conetas s.a.r.l., Kigali Start project 01 January 2008 End project 31 December 2009 Total budget EUR 650,500 (60 percent PSOM contribution)

Summary: In Rwanda, 30 percent of the electricity bill of an average household is used for water heating. Since electricity is getting more and more expensive and power supply is irregular, solar water heating (SWH) systems provide an interesting alternative. Applicant Solar Construct from Uganda currently runs a SWH manufacturing workshop in Kampala, producing a highly efficient SWH type, designed and patented by Batec A/S, Denmark. Recipient Conetas used to be in architectural design, planning and design of domestic homes and hotels, but now is mainly running its own hotel. The owner however, is also partly owner of another construction company, and as such, is still involved in many building and upgrading activities, including importing SWH systems from Australia. Together the partners will set up a joint venture for the production of SWH systems in a workshop in Kigali. The installation of the systems will partly be done by the joint venture’s own plumbers, but the partners will also set up a public plumbers’ association in which craftsmen will be trained in plumbing skills in general, and installation of SWH systems in particular. The proposed SWHs are both for domestic use and for large scale use at hotels, schools, universities, churches etcetera. Results • Business partnership established; • SWH manufacturing plant operational, personnel recruited and trained, SWH-demo systems installed; • Establishment of plumber association and promotion campaign executed; • Business developed, planned production and sales realised. Development effects

on knowledge transfer All fifteen (15) employees for the SWH production will be trained in planning, design and manufacturing of SWH systems, as well as in know-how in the layout of hot water systems and advance plumbing skills. They will be trained in project management and marketing as well. Besides training of their employees, the project will also train thirty (30) plumbers and 100 plumbing students in general plumbing skills, and installing SWHs in particular.

on employment The project will employ fifteen (15) people directly during the project and 130 people indirectly (plumbers for installing SWHs). Two (2) years after the project they will employ a total of twenty (20) people directly and sixty (60) people indirectly.

on impact environment The promotion and sales of SWH systems will reduce the electricity consumption per household up to 30 percent. The installed SWH systems will offset some of the emissions from diesel power plants and from diesel and petrol generators. The manufacturing of SWH systems requires little water and energy. Wastes are mainly metallic and will be recycled in steel rolling mills.

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on chain The partners will support the formation of a plumbers' association, just like they did in the applicant's country, in order to train the plumbers in both technical and business skills. Local plumbing companies will be involved as sales partners, contracted and their staff trained to carry out the installation work.

on women (positive) Out of fifteen (15) employees, six (6) will be female (40 percent).

other Partners will provide basic education on HIV/Aids prevention, and training to create awareness on sustainable consumption and production, energy conservation, efficiency and management.

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Senegal

PSOM07/SN/01 Decorative stone cutting & polishing (Diamniadio, Rusfisque, Senegal)

Location Diamniadio, Rusfisque, Senegal Sector Other Applicant Maveco B.V., Bladel Recipient NSMTP S.A. (Nouvelle Société des Mines et des Travaux Public), Fann - Dakar Start project 10 July 2007 End project 10 July 2008 Total budget EUR 823,500 (60 percent PSOM contribution)

Summary: Maveco B.V., a company specialised in the design and construction of stone transforming equipment will form a joint venture with Nouvelle Société des Mines et des Travaux Publics, Sarl (NSMTP), a Senegalese company in quarrying and sales of decorative stone. NSMTP is the owner of a granite and marble quarry in Kédougou in south-eastern Senegal. The granite is very black and highly demanded on the international market. NSMTP sells raw blocks of granite and marble to Italy and buys back part of the cut and polished marble slabs to be sawn into tiles in Senegal. The goal of the project is to establish a stone cutting factory where the raw blocks of stone can be cut and polished instead of sending them to Italy and end products will be sold directly at the Senegalese market or to Europe. The raw blocks will be transported from Kédougou to Dakar where the factory will be located. Maveco has a good knowledge of and access to the European stone market and will market finished products like tiles and granite slabs for kitchens on the European market. Results • The establishment of a joint venture between Maveco and NSMTP; • Preparation of project location and purchase of equipment; • Installation of equipment and infrastructural works; • Operational phase. Development effects

on knowledge transfer 21 Employees will be trained in stone cutting and all related operations.

on employment 24 Direct jobs and ten (10) indirect jobs will be created by this project.

on chain The project will reduce imports from Europe.

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Sudan

PSOM07/SD/04 Joint venture for the production, handling and marketing of seed potatoes in Sudan

Location Dongula, Sudan Sector Agriculture Applicant Stet Holland B.V., Emmeloord Recipient WAD El-Sheikh Commercial, Industrial & Agricultural Group Co, Khartoum Start project 01 August 2007 End project 31 September 2009 Total budget EUR 824,768 (60 percent PSOM contribution)

Summary: Stet Holland, a company in the field of cultivation, production and export of seed potatoes, has been working in Sudan for fifteen (15) years. With a yearly export of 3,000 tons of seed potatoes it is one of the main suppliers in Sudan. The company has a local agent and knows the market very well. Wad El-Sheikh Commercial, Industrial & Agricultural Group Company Ltd (Wad El-Sheikh) is involved in the import of seed potatoes and potato production and owns a cold store with a capacity of 6,000 tons in Khartoum. Because the Sudanese planting season follows too quickly on the Dutch harvest season, there is a problem with the dormancy of the potatoes. Potatoes are harvested in September in the Netherlands and need to be planted in November in Sudan. Not only is this logistically a big problem but there is simply no time for a dormancy period of three (3) months. Stet Holland does not want to loose market share to competitors in the South of Europe who can harvest earlier. Therefore Stet Holland is looking for opportunities to shift and extend the planting season. Dongola has a suitable cold climate during the winter months for the cultivation of seed potatoes. Basic seed potatoes will be supplied from the Netherlands and Wad El-Sheick will do further multiplication. Stet Holland and Wad El-Sheikh will form a joint venture to produce locally certified seed potatoes for supply to farmers in Sudan. The joint venture will start a farm on 50 hectares resulting in a yield of 1.000 ton seed potatoes. The fields will be examined for viruses and will have post harvest control. Each year in November imported potatoes will be planted, supplied to the project by Stet Holland. The joint venture will cultivate the E quality potatoes into A potatoes. Potatoes will be kept in a cold store with a capacity of 1,000 ton from February to October. In October the potato seeds approved by Stet Holland (with quality certificate) will be sold through the agent of Stet to farmers in Sudan. The project will give direct work to 37 people and indirectly to 100. All skilled employees will get training on potato farming as well as the future buyers of the seed potatoes and the farmers in the region. Results • Establishment of the joint venture; • Establishment of pilot production; • Establishment of storage and post harvest facilities; • Business development. Development effects

on knowledge transfer All skilled employees will get training on potato farming. One hundred (100) potato farmers in Dongola will get training as well on cultivation practices.

on employment The project will give direct work to 37 people and indirectly to 100. Two (2) years after the project the numbers will be ninety (90) direct and 200 indirect workers.

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on impact environment The application of fertilisers and chemicals is indispensable, but will be properly used. As production will be done under Stet Holland approved quality certification (based on NAK certification), large disease outbreaks will be prevented. Chemical control will be kept to a minimum. A waste management plan will be installed as well as training about efficient irrigation.

on chain Farmers will have access to seed potatoes of good quality. Local companies will be involved in the project for construction, transport and services.

on women (positive) About 20 to 30 percent of the employees will be women.

other A practical field training programme will be held for 100 potato farmers in Dongola. The pilot farm will be used for demonstration to farmers and students of the University.

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Sudan

PSOM07/SD/06 Was Agrico, joint venture for the storage, packaging and distribution of fresh potatoes in Sudan

Location Khartoum, Sudan Sector Transport / Infrastructure Applicant Agrico, Emmeloord Recipient Was Trading Company, Khartoum Start project 06 July 2007 End project 30 June 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: The applicant Agrico is an Emmeloord based cooperative enterprise and worldwide trader in potatoes. WAS Trading Company in Sudan is their representative in Sudan for seed potatoes and will act as the recipient of this project. Aim of the project is to establish a joint venture named WAS Agrico. The idea is to become a leading company in Sudan in production, marketing and sales of potatoes. One of the major current problems of potato producers in Sudan is the marketing of their products. The potato season is very short in Sudan, from November till March and all potatoes are harvested and sold in a short period of time. Because small farmers need cash to pay back the investments they made to grow potatoes, they are obliged to sell their potatoes to traders at the moment that the price is at its lowest. Traders store the potatoes and sell them to potato sellers at sometimes five (5) times the price they paid to the farmers. The project will work together with the farmers on a cooperative base and will focus on storage, packing and distribution of fresh potatoes. A cold store and a sorting and packing line will be set up and farmers will be allowed to store their potatoes. Furthermore they will be sold directly to supermarkets and restaurants when prices are high, thus eliminating the traders and securing a better price for the farmers. A 5 hectare demonstration field to introduce improved cultivation techniques of Agrico potato varieties will also be part of the project. The project will be located some 30 kilometre from Khartoum where WAS owns an irrigation scheme of 30 hectare. The cold store will also be constructed at this site. Results • Establishment of a joint venture between applicant and recipient; • Installation of trial fields and farmers service centre; • Construction of cold store, sorting and packing facilities; • Training and marketing. Development effects

on knowledge transfer The demonstration fields will be used to train fifty (50) farmers in improved potato cultivation and post harvest handling and five (5) farmers will follow a course on potato cultivation in the Netherlands. Four (4) employees will receive on-the-job training to operate the cold store and sorting and packing facilities.

on employment Eighteen direct and ten (10) seasonal jobs will be created, as well as 75 indirect jobs for the farmers who will benefit from this project. These numbers will increase to thirty (30) direct jobs and 125 indirect jobs two (2) years after completion of the project.

on impact environment Increased efficiency in potato production will result in less hazards for the environment. EurepGAP standards for production will be implemented and up-to-date technology will be used for the cold store as it makes use of environmental friendly Freon.

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on women (positive) Traditionally a lot of the agricultural work within the potato sector is done by women and most of the employees of the sorting and packing facility will be women.

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Sudan

PSOM07/SD/21 Alfalfa production in Sudan

Location Alsaggay East Area Sector Agriculture Applicant Bleu Nile Shipstores B.V., Rotterdam Recipient B.N.S. Khartoum Ltd, Khartoum Start project 01 January 2008 End project 31 December 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: In the Middle East and Gulf region a large demand for fodder exists to supply mainly the dairy cattle, producing the fresh milk for the local market. The applicant Blue Nile Shipstores B.V. (BNS), based in Rotterdam, is a shipping and trading company with 23 years of experience with supplying various goods to this region. The last few years fodder export from Europe (mainly alfalfa from Spain) has become one of its main products (last years 4,000 to 10,000 tons /year). The recipient, BNS Khartoum (Sudanese sister company from BNS Rotterdam) is working in the field of food production and processing and also import/export. Together they will form a joint venture that is going to exploit large areas of former desert land 700 kilometre north of Khartoum, the home of the family that owns BNS and BNS Khartoum. Since the market for fodder in the middle east is much bigger than BNS can buy in Europe, the project proposes that, as a pilot. The joint venture will cultivate 150 hectare of alfalfa in the Dongola area, with a total production of 1,950 ton per year, partly on own fields and partly, from the second year on, with outgrowers. In this pilot state-of-the-art farming equipment, irrigation equipment and farming techniques will be introduced together with an extensive training program to ensure that the joint venture can produce export high quality bales of alfalfa. BNS will take care of the marketing and BNS Khartoum of logistics and shipping to the middle east. A Dutch company with many years experience in fodder producing will train joint venture staff and outgrowers in producing and processing alfalfa fodder at export quality level. Results • Inception phase; • Installation of equipment; • Employment and training; • Land preparation and alfalfa production; • Marketing and sales. Development effects

on knowledge transfer The project will introduce new irrigation techniques and mechanization to the Dongola area. A Dutch agricultural company will provide training to twenty (20) employees of the farm in the field of cultivation and processing of alfalfa, use of machines, farming techniques, irrigation, fertilizers, marketing sales and logistics. Training will also be provided on management level (equipment, procedures, finance, HR, health and safety).

on employment The joint venture will employ 24 persons during the pilot. Two (2) years after the pilot the number of personnel will have grown to 75.

on impact environment The impact on the environment will be positive as alfalfa is known to enrich the soil and to prevent erosion of the land. Water for irrigation can be obtained from the Nile without permission nor environmental assessment study. Sudan actually takes only 60 percent of the amount of water they are allowed to take from the Nile.

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on chain To maintain and repair tractors and other equipment local mechanics will be trained. With this project they will get more business. Transport (to Port Sudan) and related logistic services will increase because of the project.

on women (positive) The impact on the position of women is neutral to positive as almost half of the temporary workforce will consist of females. Seven women will be employed permanently by the project and two years after the project the total number will be twenty (20).

other Project partners will set up a health care centre as one of the Shamat family members is a medical doctor. Medical treatment will be free of charge for the employees and their family members. This health care centre will entirely be financed from the profit made by this project. The health care centre will be established in the village of Wad Halfa, near the project location at about 80 kilometre from Dongola. Students from Dongola University will be enabled to do practical research on the alfalfa farm. In general, besides the objective to start up a profitable business, there is also a strong social objective for the Shamat family, to invest in their home town part of the capital they made in Rotterdam and the Middle east for the benefit of their poorer relatives.

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Tanzania

PSOM07/TZ/01 Vegetable Seeds for Africa: "Piloting premium vegetable seed production in Tanzania"

Location Moshi Sector Agriculture Applicant East-West International B.V., Enkhuizen Recipient Vasso Agroventures Ltd, Moshi Start project 06 July 2007 End project 30 June 2009 Total budget EUR 822,236 (60 percent PSOM contribution)

Summary: The applicant, the Dutch company East West international, is a multinational vegetable seed producer. Currently, it produces, develops and sells tropical vegetable seeds mainly on the South East Asian vegetable seed markets. In Tanzania up till now (according to East West) virtually all commercial vegetable seeds are imported and few of the vegetable varieties are specifically developed for Tanzanian or African conditions. East West International wants to use its expertise to initiate a pilot facility for the processing of locally produced seeds in Tanzania. The project will endeavour the improvement of the yield of the so called open pollinated crop varieties (tomatoes, eggplants, onions etc). To achieve this, the company wants to improve and multiply seeds which generate crops which better withstand the specific conditions in Tanzania and Africa. This project will have beneficial impact on the quality of seeds used by farmers. For this purpose a joint venture will be set up between East West International, the Tanzanian company Vasso Agroventures ltd and the Dutch project partner Praktijkonderzoek Plant & Omgeving B.V.. Vasso Agroventures is a horticultural company which produces cuttings and rooted cuttings for ornamental flower growers in the Netherlands. Praktijkonderzoek Plant & Omgeving (PPO) B.V. is a research & development company connected to the University of Wageningen, which core business is to look for sustainable solutions in agricultural production chains. The joint venture will lease a plot of land of 5 hectare of Vasso Agroventures for the seed crop cultivation, the construction of a laboratory, office space and storage & training facilities. Its location is near Moshi in northern Tanzania. The project will generate about forty (40) direct fte's and 100 indirect fte's. Results • The formation of the joint venture and finalisation of legal and financial obligations as well as updating of the investment-,

work- and training plan; • The construction and installation of an Integrated Seed Processing Factory including the design and implementation of a

seed quality control capacity; • Vegetable varieties and foundation seeds for Open Pollinated reproduction prepared for multiplication and trial production

cycle completed; • Integrated programme on vegetable farm extension and dissemination; • Integrated seed production and processing capacity prepared for commercial operation, staffed with fully trained personnel

to produce and market quality vegetable seeds. Development effects

on knowledge transfer By the end of the project about forty (40) outgrowers will be trained in seed production. Also the projects own staff (about forty (40) people) will be trained in seed production, management and sales. An extensive training handbook will be produced during the project. The buyers of vegetable seeds will be advised in proper growing conditions for the vegetables.

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on employment The project will generate direct employment of approximately forty (40) people and about 100 people indirectly among outgrowers and agricultural input supply companies.

on chain The project has the opportunity to boost the Tanzanian vegetable sector by the introduction of improved and affordable vegetable seeds for the local market. The improved seeds will generate a better harvest and therefore create a higher income to farmers. Besides, the outgrowing of the seed production, will create an alternative source of income, considerably more profitable compared to normal field crops.

on women (positive) The project strives to employ more then 50 percent women.

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Tanzania

PSOM07/TZ/02 African Roots Ltd

Location Arusha Sector Agriculture Applicant Smit Sappemeer Beheer B.V., Sappemeer Recipient Rotian Seed Company Ltd, Arusha Start project 01 August 2007 End project 31 July 2009 Total budget EUR 825,000 (60 percent PSOM contribution)

Summary: Applicant Smit Sappemeer Beheer B.V. is a Dutch registered horticultural company specialised in the cultivation of Orchids (Phalaenopsis) an various succulent plant species. The recipient is the Tanzanian registered Rotian Seed Company. A company specialised in the production of bean seeds for the export market. The project partner will be a Tanzanian registered company Dutch Mountains Ltd. This company has to be founded and will be owned by the project manager of the joint venture and his partner. The project will be called: ‘African Roots Ltd'. African Roots limited will be a horticultural greenhouse business producing Phalaenopsis semi-finished product, succulent cuttings and Agapanthus rhizomes. These three (3) varieties are not yet being produced in Tanzania. The project will take two (2) years and during the project a 2 hectare greenhouse will be established. Succulent cuttings and Phalaenopsis will be produced in the greenhouses. Agapanthus rhizomes will be produced by three (3) outgrowers and will be purchased by African Roots Ltd. At the moment the consortium has an option on a piece of land about 10 kilometre outside Arusha in northern Tanzania. The production of succulent cuttings and Agapanthus rhizomes is very labour intensive and the production of the indoor Orchid plant Phalaenopsis as a semi-finished product and succulent cuttings requires a high input of energy (oil or natural gas). Because of these high cost it is a comparative advance to start producing these plant species in Tanzania. During the project period the total production volume will be sold to the applicant company, in a latter stage the products will also be sold to other growers in the Netherlands and Belgium and possibly to growers located in other countries. The parties will set up a joint venture company for the pilot project. Results • Project inception; • Establishment of 2 hectare of greenhouses and service buildings and the start of planting; • The completion of planting of 1 hectare Phalaenopsis young plants, 1 hectare succulent mother plants and 2,000 square

metre of Agapanthus outdoor; • Training of outgrowers and marketing; • Certification and business planning.

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Development effects

on knowledge transfer Growing succulents is new to Tanzania. Therefore, in three (3) years time ten (10) people will be trained in water management, the correct use of fertilizers and additional plant specific skills. The growth of Phalaenopsis, will need special techniques in water management, hygienic handling of the plants, integrated pest management and climate control. For the growth of Phalaenopsis fifteen (15) persons will be trained during the whole project to improve the quality of the plant. Also the harvesting of the Agapanthus rhizomes need special skills and training of the out growers. To train persons for the preparation and packing of Agapanthus rhizomes, twenty (20) people are needed and for the preparation and packing of succulents cuttings and Phalaenopsis, twelve (12) people will be trained.

on employment 70 Jobs will be created by the joint venture, including management, and security staff and three (3) outgrowers including there staff will produce for the project. Two (2) years after the project in total 145 jobs will be created. The number of outgrowers stays the same.

on impact environment Neutral. The water that will be used for the plants will be collected via boreholes and not from surface water, therefore it will not affect the water supply for surrounding villages and nature. The use of pesticides will be minimised. The project partners want to carry out an environmental assessment and go for MPS certification.

on chain The project will make use of a local blacksmith or brick maker for the start of the business. To put the succulents mother plants on a construction of about 15.75 inches high, a three-pin construction has to be made by a local blacksmith. The tables of the Orchids will be provided by a local supplier too. Also local materials will be needed for the construction of the service buildings, the fence, communication networks, cold storage and for the furnishing of the buildings.

on women (positive) Positive. At the farm, more than 70 percent of the employees will be women. The company will establish free day-care at the farm for employees during working hours.

other Three times a year there will be an organised meeting for employees on HIV/AIDS prevention which will be organised in cooperation with local clinics. To educate the employees English, lessons will be given once a week after working hours on a voluntary bases and free of charge. Watoto foundation is an NGO that takes care of street children who are addicted to drugs or sniffing glue. In cooperation with Watoto foundation the farm will employ one (1) young person in the first year after the start of the business and one (1) person in the third year.

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Tanzania

PSOM07/TZ/04 Van Egmond Tanzania Ltd Lisianthus production in Moshi, Tanzania

Location Moshi Sector Agriculture Applicant Selectie Vermeerderingsbedrijf J. van Egmond & Zn. B.V., Rijnsburg Recipient Corunna Ltd, Arusha Start project 06 July 2007 End project 30 June 2009 Total budget EUR 809,150 (60 percent PSOM contribution)

Summary: In this project proposal the Dutch registered applicant company, Selectie & Vermeerderingsbedrijf J. van Egmond & Zn, will set up a joint venture with the Tanzanian registered company Corunna Ltd. In the Netherlands the cost of production is rapidly rising, especially the heating costs during the Dutch winters are becoming costly. Van Egmond wants to benefit from the comparative advantages from growing Lisianthus in Tanzania especially the high light levels and low production costs. The joint venture wants to establish a company of 2 hectares for the production of Lisianthus cuttings and Lisianthus Flowers. The project will be located close to the town of Moshi in the north of Tanzania. Results • The set up of a joint venture; • Greenhouse buildings and installations finalised; • First cultivation season of 1 hectare of Lisianthus cut flowers and 1 hectare of Lisianthus cuttings; • Future planning and finalisation of the pilot phase. Development effects

on knowledge transfer The employees will be trained in administrative activities and Good Agricultural Practices (GAP).

on employment Direct employment created during the PSOM project: forty (40) jobs. The indirect employment created during the PSOM project is difficult to estimate. Two (2) years after the project 100 direct jobs will be created.

on impact environment The company will apply for MPS (Milieu Project Sierteelt) certification.

on chain The production of Lisianthus flowers and cuttings is a new initiative in Tanzania. The initiative will create employment and service related activities.

on women (positive) Due to the nature of the work involved with the producing of Lisianthus flowers and cuttings the joint venture is planning to employ a higher percentage of women.

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other Most of the horticultural companies are based near Arusha. This new development will be the first horticultural activity in the area of Moshi. Van Egmond is convinced that the conditions in northern Tanzania are much more suitable for the production of Lisianthus than for roses. Van Egmond wants to help the rose farmers to transform from roses to Lisianthus. In the Lisianthus the competition is not so harsh. Local cuttings are available and the joint venture can advice the companies how to grow Lisianthus. Also the joint venture can supply the Lisianthus growers in Kenya with cuttings. The cuttings are accustomed to the African climate and the prices are cheaper because normally the Lisianthus young plant material had to be imported from Europe.

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Tanzania

PSOM07/TZ/05 Summer flowers - reintroducing horticulture to Iringa

Location Ihemi, Iringa Sector Agriculture Applicant Marginpar B.V., Uitgeest Recipient Shira Farming Ltd, Iringa Start project 01 August 2007 End project 31 July 2009 Total budget EUR 791,600 (60 percent PSOM contribution)

Summary: In this project the applicant Marginpar B.V. will cooperate with the Tanzanian recipient company Shira farming Ltd. The companies will set up a joint venture. The objective of this project is to establish a summer flower production farm in the southern highlands of Tanzania, in the underdeveloped region of Iringa. This will be the first summer flower producer in that region and also the first in the country to produce the flower species Echinops, Hydrangea and Agapanthus. A 2.5 hectares summer flower farm will be established in the Iringa region near the place Ihemi. An out grower will be assisting in setting up a pilot area for Agapanthus. The project will include investment in land preparation, irrigation, innovative low energy (LED) lightning, propagation tunnels, a pack shed with vacuum cooler, a cold store and a cooled truck for transporting the flowers to Dar es Salaam. About thirty (30) production and packing staff will be hired and educated locally. The flowers produced in the Iringa region will be taken by road to Dar es Salaam from where they will exported by air to the flower auctions in the Netherlands. Also trials will be undertaken to transport the flowers to the Netherlands by boat. Results • Establishment of the joint venture; • Land preparation and establishment of irrigation infrastructure; • Planting, production and harvest, recruitment of field staff; • Pack house construction, pack house staff recruitment and training; • Business development. Development effects

on knowledge transfer During the PSOM phase seventy (70) people will be trained. On the job training for the production workers and more extensive training for the senior workers. The training programme is not fully developed yet.

on employment Employment created during the PSOM project: direct thirty (30) jobs, indirect five (5) jobs. Employment created two (2) years after the PSOM project: direct 100 jobs, indirect fifteen (15) jobs.

on impact environment The project will include an Environmental Impact Assessment and it will follow its recommendations to minimize environmental impact. The use of LED light and the trials with transport of summer flowers by sea will have a positive influence on the energy balance of the project.

on chain All the employees will get an on the job training in how to handle the various summer flower species.

on women (positive) It is expected that about 70 percent of the farm workers will be women.

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other Before the Nyere era the Iringa region was one of the most important agricultural regions of Tanzania. Because of Nyere economic policy the agricultural activities in region almost completely disappeared. At the moment the horticultural and the agricultural activities in region are very limited. This project might create a spin off for the region by attracting more agribusiness to the region. Further, the joint venture will fund a local clinic to cover basic health needs. Support will also be provided to local schools to help ensure that the farm workers children have access to education.

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Tanzania

PSOM07/TZ/06 The set up of the Misenani Wilton Agriventure

Location Mwanza region Sector Agriculture Applicant Bokkers Trading B.V., Putten Recipient Misenani agri-services Ltd, Mwanza Start project 01 August 2007 End project 31 July 2009 Total budget EUR 791,600 (60 percent PSOM contribution)

Summary: For this project a joint venture will be established between the applicant company Bokkers Trading, the recipient company Misenani Agri-services and the project partner De Heus International. The three (3) companies want to set up a poultry feed factory together with a maize flour factory for human consumption. The main focus is the production of poultry feed. The combination of a poultry feed and a maize flour factory seems strange. The reasons is that the by-product (called bran) of the maize flour factory is one the base materials for the poultry feed. It would be very difficult to procure the amount of base materials needed for the production of poultry feed on the Tanzanian market. So the poultry feed factory can't be operational without the maize flour factory. The factory will be located in Mwanza, the third largest city of Tanzania bordering lake Victoria. At the moment there are no specialised animal feed producers in the region, the nearest feed factory is located more 1,000 kilometre away from Mwanza. Currently all poultry feed is produced by the farmers themselves. It is lacking quality, and is very unhygienically produced. Because of the bad feed the growth of the chickens is slow and they are prone to disease. In Tanzania good quality maize flour is only produced in or near Dar es Salaam. The current situation is that maize from Mwanza, being an important maize producing region, is transported to Dar es Salaam to be milled. The high quality flour is then transported back to the region to be sold to the middle class. The business partners are seeing a good opportunity to produce poultry feed and maize flour. The market is asking for it. The farmers will benefit from the project because good poultry feed will improve there revenue. Also good quality maize flour can be offered to the local market at a better price. To realise this a joint venture will be established between Bokkers Trading, Misenani Agri-services and De Heus International. Results • Joint venture foundation and project inception; • Buildings completed and processing lines installed; • Recruitment and training; • Production. Development effects

on knowledge transfer The joint venture will support the farmers to improve the animal health and performance of the livestock. Technical and veterinary assistance and know how transfer will focus on growing conditions, breeding, feeding and animal husbandry in all aspects. The knowledge transfer will be done by seminars but also on a client relationship. The joint venture will be an ideal place for students in agriculture to learn the ins and outs of animal feed and feed processing and modern farm management in combination with feed. The joint venture will undertake a research programme to show farmers what quality feed can do for the animal in terms of health, welfare and performance.

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on employment During the project sixty (60) direct jobs and fifty (50) indirect jobs will be created. Two (2) years after the project the expectations are that 100 direct and 100 indirect jobs are created.

on impact environment This project might have a slight positive effect on the environment. To produce maize flour in the region instead of transporting it to Dar es Salaam for milling will save fuel consumption.

on chain The business initiative will have a positive effect on the production chain. The production of poultry feed create demand for the base materials like maize and cereals. Secondly the establishment of the factory creates jobs. Thirdly, the farmers who will buy the quality poultry feed will get healthier an faster growing chickens creating a higher income.

other The shareholders are highly committed to fulfil a role as a corporate socially responsible organisation within the wider community. The joint venture will get involved in health, education, sport and humanitarian assistance. A part of the annual profit will be reserved to invest in social programmes.

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Tanzania

PSOM07/TZ/24 Tanzania Safari Channel

Location Arusha Sector Other Applicant Nature Conservation Films B.V., Hilversum Recipient Moivaro Investment and Trade Ltd, Arusha Start project 01 January 2008 End project 31 December 2009 Total budget EUR 810,000 (60 percent PSOM contribution)

Summary: The applicant company Nature Conservation Films B.V. (NCF) will set up a joint venture with the recipient company Moivaro Investment and Trade Ltd. The joint venture wall be named Tanzanian Safari Channel (TSC). The new company will be established in the town of Arusha in Northern Tanzania. Tanzania is a country with a big attraction to tourists. Tanzania hosts several large game reserves of which the Serengeti and the Ngorogoro Crater are the most famous. Another big tourist attraction is Mount Kilimanjaro, the highest mountain of Africa. Moivaro Investment and Trade is a company active in the tourism industry. It runs three community based lodges and three tented camps in Tanzania. NCF has built up a vast library of high quality footage of Tanzania s nature in last thirty (30) years. A large part of this library is the work of the late Hugo van Lawick, a well known Dutch nature filmmaker. NCF was asked by the Tanzanian Ministry of Tourism to think about possibilities to promote Tanzania's tourist potential. The Ministry of Tourism would like to further develop the tourism potential within in the country and would like to divert the tourists' main focus on the northern part of the country towards other interesting regions within the country. NCF, being a multi media company with a lot of experience in Tanzania, came up with the idea to set up the TSC. TSC aims to be an internet (TV) channel that provides information on the natural and cultural values of Tanzania. Up till now in the online promotion of Tanzania's tourist attractions hardly any use is made of high quality video footage. NCF offers its library (on the internet) to help Tanzania to promote its tourist potential. The database can be used for study purposes, information for travellers and as a commercial tool for travel bookings. To continue the timeline TSC will keep on creating new footage about Tanzania's nature and culture values to keep the channel up to date. The joint venture will generate income on commission bases by visitors who book various accommodations via the website. Another source of income will be the production of custom made safari films for individual tourist and the production of promotion films for companies and NGO's. Results • Establishment of the joint venture; • Basic website online; • Set-up of equipment for the production crew; • Training of staff & HRM policy implemented; • Film making and sales. Development effects

on knowledge transfer The joint venture will use local personnel as much as possible for their internet site. The website is not an average website but contains an archive and will have the possibilities to show various footage of Tanzania which makes the web application quite complicated. The joint venture has the intention to educate the people in web designing and uploading of the video content. The film crew will be trained in filming and editing activities. In total twenty (20) people will be trained.

on employment During the project period twenty (20) direct jobs will be created, and two (2) indirectly. Within two (2) years after the project 35 direct jobs will created and four (4) indirectly.

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on chain The joint venture will use local suppliers as much as possible as well as local companies active in web designing. With the introduction of new internet technology the joint venture hopes to stimulate and improve the local ICT sector.

other After reaching the break even point the TSC will invest 10 percent of its net profits in healthcare and education projects.

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Uganda

PSOM07/UG/01 Digitising Paper Archives

Location Nakasero, Kampala Sector Industry Applicant Collar-IT B.V., Haastrecht Recipient Collar-IT Uganda Ltd, Nakasero - Kampala Start project 01 July 2007 End project 30 June 2009 Total budget EUR 750,000 (60 percent PSOM contribution)

Summary: Many organisations both in Europe as well as in Africa 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 (2) systems running simultaneously: the ‘old’ paper system side-by-side the ‘new’ digital archive. End-users are now facing the setbacks to work with two (2) systems instead of with one, as they were used to. Therefore, a growing need to digitise existing paper documents into digital archives develops. Digitising paper documents into a digital archive is a labour intensive job. As labour costs in the Western world are rising 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 Collar-IT B.V. and its daughter company Collar-IT Uganda (recipient), both active in providing documentary solutions, will set up a management agreement and invest in installing a document scanning facility in Kampala, Uganda 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 Uganda is the increase in speed of a developing market and know how of digital archives in Uganda itself. Results • Setting-up organisational structure; • Building and equipment; • Employee recruitment and training; • Expansion of production capacity; • Promotion and business development. Development effects

on knowledge transfer The skills and technologies of digitizing paper archives are new to Uganda. All employees (71) will be trained by experienced personnel in this area on all aspects of scanning, digitising and archiving of documents.

on employment The project will employ 71 people directly and three (3) people indirectly in Uganda and two (2) directly and one (1) indirectly in the Netherlands. Two (2) years after the project this will be 97 directly and four (4) indirectly in Uganda, and three (3) directly and one (1) indirectly in the Netherlands.

on impact environment As the power supply in Uganda is currently one (1) day on / one (1) 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.

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on chain - Recycled paper will be sold to local SME's where they make beads for necklaces, bracelets, greeting cards, stationery etcetera for the export market.

- Collar IT Uganda will implement a Small Projects venture as part of the employee's employment contract. This venture allows employees to support local companies by visiting that company for a couple of weeks, installing software and maintaining a laptop

- Third, Collar IT will introduce a storing method to local governments by reusing the Archive Boxes which have been used to store documents.

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Uganda

PSOM07/UG/23 Introduction of Tasty Soy Pieces in Uganda

Location Tororo Sector Agriculture Applicant Seba Foods (Malawi) Ltd, Lilongwe Recipient Export Trading Co. Ltd, Kampala Start project 01 January 2008 End project 31 December 2009 Total budget EUR 823,073 (60 percent PSOM contribution)

Summary: The applicant company is Seba Foods Ltd registered in Malawi. The recipient company is Export Trading Uganda Co. Ltd.. The consortium will establish a joint venture. Seba Foods has branches in Malawi and Zambia. Both branches are producing 'Tasty Soy Pieces'. Tasty Soy Pieces (TSP) is a nutritious, low cost meat replacing food item that is developed from soybean combined with maize, salt and spices. Seba Foods Malawi has developed the product and successfully markets it in Malawi, Zambia and other countries in Southern Africa. After having completed some trial supplies in East Africa with good results, Seba wishes to expand its market in East Africa and therefore will set up a soybean processing plant for the production of TSP in Uganda. This processing plant will be established in cooperation with Export Trading Uganda (EXTU), the largest buyer of soybeans in Uganda. EXTU wants to diversify its business and add more value to its products locally. Currently most of the soybeans bought by Export Trading are exported to other countries where it is processed into food items or other products with an added value. The project will be located in Tororo in Eastern Uganda, close to the border of Kenya. Results • Business established; • Factory building, warehouses and related infrastructure completed; • Facilities operational and staff trained; • Marketing; • Business development. Development effects

on knowledge transfer The TSP production process is new to Uganda. Further, the project will introduce food safety, hygiene and manufacturing criteria (HACCP and GMP) to the production and processing of soybeans. Staff will be trained in the production process and compliance with these international standards. In total about forty (57) people will be trained. Supplementary, the consortium will set up an out growers scheme of eighty (70) farmers for the production of soy beans. The farmers will receive technical assistance and improved seeds. Aim is to go from one soy harvest a year to two soy harvests a year.

on employment The project will create 57 direct jobs and ten (10) jobs indirectly. Two years after the project 72 direct jobs will be created and thirty (30) jobs indirectly.

on impact environment An environmental Impact Assessment has been performed on the TSP Manufacturing Unit plans. The impact on the environment will be relatively neutral. Waste is reused and converted into cattle feed. Water is used for the washing of the soy beans and will not be contaminated with all kinds of chemicals.

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on chain The consortium will make use of local companies for the construction of the production facilities. Further the transport sector will benefit because of the transport of soy beans and TSP.

other The new joint venture will actively work with local NGO’s to improve the cultivation skills of Ugandan farmers with a view to increase the annual harvesting frequency. Further TSP is a good, protein rich and cheap alternative for meat which makes it a healthy and accessible meat replacement for the poor people of Uganda.

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Uganda

PSOM07/UG/25 Margret's Finest: it's Uganda's Best

Location Bukaya, Entebbe Sector Agriculture Applicant K. Immerzeel Holding B.V., Naaldwijk Recipient JP Cuttings (U) Ltd, Bukaya - Entebbe Start project 01 January 2008 End project 31 December 2009 Total budget EUR 824,616 (60 percent PSOM contribution)

Summary: Uganda has the perfect climate to grow almost anything. Local vegetables are successfully being grown by multiple farmers. More exotic varieties like cherry tomatoes, flesh tomatoes, sweet pepper and English cucumbers however, are hardly found. The varieties that do appear on the market are being imported. Applicant K. Immerzeel Holding B.V. and recipient JP Cuttings want to introduce the production of high quality vegetables in completely controlled greenhouses, in order to serve the top segment of the local market. Since tourism is growing bigger and bigger in Uganda, the demand for high quality exotic vegetables is growing in hotels, restaurants, supermarkets and in-flight catering services. But also expats and the top end of the market have shown their interest. After piloting some test plots in an uncontrolled environment, JP Cuttings found out there is a growing demand for high quality vegetables. By investing in 3 hectares of greenhouses with substrate, drip irrigation, rails and lorries for internal transport, the partners will be able to deliver a wide variety of quality vegetables all year round. Although initially not meant for export, the project will become GlobalGap certified, in order to comply with the highest quality standards. The project will be situated in the township of Bukaya in Entebbe, on the premises of JP Cuttings. A joint venture will be set up between K. Immerzeel Holding, JP Cuttings and JP Cutting's manager, Mr Blaise Howett. Results • Business partnership established; • Greenhouse erected and logistical process operational; • Recruitment and training of personnel; • Marketing and business development. Development effects

on knowledge transfer All employees will be trained in agricultural skills needed to grow the new varieties of vegetables. On top of that, supervisors will be trained in management and communication skills. A couple of people will be trained to become electrician and five people will obtain their driver's license and will receive training in soil treatment. Last of all a few accountants will be trained in computer skills and administrative skills.

on employment The project will employ 100 people directly and five (5) people indirectly. Two (2) years after the project an additional 100 people will be employed directly.

on impact environment The project partners will introduce a closed system production system using hydroponics and drip irrigation. This reduces the need for water and guarantees minimal leakage of fertilizer into the open ground. The partners will produce as environmentally friendly as possible and will produce with biological control (Integrated Pest Management) and obtain GlobalGap certification during the pilot phase.

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on chain Several local companies will be involved during the construction phase and the operational phase thereafter. Since the project starts of small (3 hectare) and gradually will expand to 8 hectare in five (5) years time, local companies will continuously be involved and benefit from this project.

on women (positive) 75 Percent of all employees will be female.

other The partners will establish a nursery house for child care and a small hospital on site. Clean quality water will be provided for free to the employees to be distributed by them on a daily basis to their families and friends.

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Zambia

PSOM07/ZM/01 Diamant-G: Born under the African sky

Location Zambia, Siavonga area Sector Industry Applicant De Weijs Veendam B.V., Veendam Recipient Zambezi Natural Stone Company, Siavonga Start project 01 August 2007 End project 31 July 2009 Total budget EUR 818,600 (60 percent PSOM contribution)

Summary: Applicant De Weijs Veendam is an im-/exporter of natural stone and is specialised in quartzite and slate. Recipient Zambezi Natural Stone Company (ZNSC), for 50 percent owned by De Weijs, is active in mining and manufacturing of quartzite in Zambia. In 2004, ZNSC started quartzite production of floor tiles. With the Zambian natural stone proving to be well suited for wall-cladding and increasing sales of mosaic all over the world, the start of a mosaic-line in Zambia became interesting. After a small trial production of their material with positive feedback, the consortium decided to extend their current business with a mosaic-production line. Building a total equipped factory in Zambia will be more profitable for ZNSC as well as for the total Siavonga area. The project will be located on the premises of ZNSC in Siavonga. Results • Project preparation; • Construction of production hall and installation of mosaic line; • Marketing; • Training of staff; • Pilot production and business development. Development effects

on knowledge transfer The project will introduce processing of mosaic tile in Zambia. All staff (40) will be trained in assembly gluing control of mosaic tiling and operating relevant machinery.

on employment The project will directly employ forty (40) persons. Indirect employment will be created for miners in the area. Follow-up investments will create an additional twenty (20) jobs.

on impact environment The environmental impact is neutral. ZNSC has submitted an Environmental Impact Assessment, which was approved by the Ministry of Mines.

on chain Small local companies will supply goods or services for the production process.

on women (positive) The consortium expects to employ thirty (30) women.

other The project will provide Zambia with a chance to add value to a raw material for export.

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Asia

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87

Afghanistan

PSOM07/AF/21 Fruit trees for Afghanistan

Location Herat (province of Herat), and the other one in the Kabul area Sector Agriculture Applicant Verbeek Boomkwekerij B.V., Steenbergen Recipient Abaca Agricultural Business and Consultancy, Kabul Start project 01 January 2008 End project 31 December 2009 Total budget EUR 822,000 (60 percent PSOM contribution)

Summary: The consortium will establish two demonstration orchards to produce fruit and sell fruit and fruit trees. They will train fifty (50) local farmers in the practicalities of orchard keeping. These trainer/farmers will support the sales of fruit trees by supplying educational services to train other farmers in orchard keeping. One orchard will be near Kabul and one in vicinity of Herat. The applicant Verbeek Boomkwekerij B.V. is supported by Boomkwekerij Henri Fleuren B.V.. The recipient, ABACA Ltd is a recently established company in agriculture, marketing and quality management. The founders have extensive experience in agriculture and Afghanistan. Results • Establishment of joint venture; • Development of training material, 1st plantation of 15 hectares with fruit trees; • training of fifty (50) extension workers completed, plantation of 2nd 15 hectares; • Storage and cooling facility finalised. Development effects

on knowledge transfer Fifty (50) extension workers will receive a high level training.

on employment Direct employment at the end of the project will be 10 fte; indirect 60 fte. Two (2) years later, direct employment is said to be 120; indirect 100.

on chain The orchards will open up ways to supply fruit production programmes with trees.

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Bangladesh

PSOM07/BD/01 Permess South East Asia Ltd

Location Dhaka Sector Industry Applicant Permess B.V., Goor Recipient Newtex Pacific Ltd, Dhaka Start project 01 September 2007 End project 31 August 2009 Total budget EUR 810,773 (60 percent PSOM contribution)

Summary: The Dutch applicant Permess (42 employees) develops and produces high-quality interlining products for high-end applications (major fashion brands) for the garment industry. In addition, Permess supports their major clients during the development/design of their new apparel collections to apply specific quality of interlinings in their clothes. The Bangladeshi partner Newtex Pacific Ltd (40 employees) is a buying office for the associated companies within the Newtex group of companies. The Newtex group is a collective noun for a number of associated garments and textile companies that cooperate under this name. These companies include four (4) Ready Made Garments factories and three (3) backward linkage factories (textile, knitting and dyeing). The two (2) project partners know each other for more than fifteen (15) years. The project partners will establish a joint venture to setup a factory for the production of 3,000,000 square metre interlining materials that will be located in Dhaka. The factory will include a building including office, powder coating production facility, a small laboratory for quality testing and a technical service centre. The facility will be Oko-tex certified. Demand for interlining material is increasing and the project partners foresee further growth of the market in Bangladesh for interlining material. Results • Set-up of a joint venture; • Production, lab and building finalized; • Recruitment and training of personnel; • Business development, marketing plan and finalisation of the project. Development effects

on knowledge transfer The project will train twenty (20) employees.

on employment The project will create twenty (20) direct jobs.

on impact environment The project will have a zero-positive effect on the environment.

on chain The project is expected to have a positive impact on the chain.

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China

PSOM07/CH/01 A new window for the Chinese shipbuilding market

Location Dailian, Liaoning Sector Industry Applicant Het Anker B.V., Schelluinen Recipient Dalian Shipbuilding Industry Ltd, Dalian Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,444,550 (50 percent PSOM contribution)

Summary: Het Anker specialises in the production of windows, portholes and doors for naval use and offshore and is worldwide one of the major players in this niche markets. It has production facilities in Italy and France and is developing a production location in Romania. The Dalian Shipbuilding Industry Corporation (DSIC) is a state owned company and part of the China Shipbuilding Industry Corporation. It was formed in 2005 by a merger of the Dalian New Shipbuilding and the Dalian Shipyard. It produces fifty (50) ships a year, but will increase this number to 140 ships a year in 2015. Besides building ships it also specialises in marine equipment such as marine propellers and engines. It has joint ventures with companies from Hong Kong, Germany, Singapore and Sweden. In recent years the market for shipbuilding has been changing. China is becoming the new centre of the shipbuilding industry with a market share of 18 percent, which will increase to 50 percent in seven (7) years. The Chinese shipbuilding is also moving from rather simple lower quality production to more complex high quality ships. In this shift it is important that the supply industry also shifts to a high quality production. In the northeast, however, there is no production of high quality windows that are in compliance with international standards, which are required if the DSIC wants to build high quality and complex ships. Secondly, it is important for Het Anker to be strategically present in important shipbuilding areas in order to be close to the customer. Since China is rapidly becoming an important shipbuilding country, Het Anker wants to have a presence in China. Therefore the consortium proposes to set up a joint venture to produce naval windows and portholes during the project and add naval doors after the project. These naval windows and portholes will be certified and in compliance with international standards. Results • Inception phase; • Building and hardware; • Training of personnel and realising production quality; • Start up of production and completion. Development effects

on knowledge transfer In total 25 employees will be trained in the production process. Four (4) employees will receive training in the Netherlands and transfer this training to twenty (20) of their colleagues in China under the supervision of Dutch experts. Other training will include quality management.

on employment During the project 25 people will be employed directly and five (5) people will be indirectly employed.

on chain Raw materials and components will be sourced locally if available.

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other Working conditions will be according to ILO standards. Safety will be up to European standards. Investments will also be made in washing and dressing facilities and a canteen. The project will receive a SA 8000 pre-audit.

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China

PSOM07/CH/03 Establishing a modern European quality dental laboratory in Dalian

Location Dalian City, Liaoning Sector Other Applicant Bonnes Wehl Exploïtatiemaatschappij B.V., Wehl Recipient Dalian Dr. Sha Cosmetic Plastic Surgery & Dental Centre, Dalian City Start project 01 July 2007 End project 31 January 2009 Total budget EUR 500,000 (50 percent PSOM contribution)

Summary: Bonnes Wehl Exploïtatiemaatschappij (Bonnes) is the parent company of Tandtechnisch Laboratorium Bonnes B.V., which specialises in the production of dental laboratory products and is run by the two (2) brothers Bonnes. Dalian Dr. Sha Cosmetic plastic Surgery & Dental Centre (Dr. Sha) specialises in plastic surgery and dental health care. The company is run by Dr. Sha. In China the demand for high quality dental laboratory products is growing. However, there is a lack of high quality dental laboratory products in China. Presently, most dental laboratory products in China come from Shenzhen. However, these products have to be shipped to Dalian over a long distance and the quality of these products is average. Therefore the consortium proposes to establish a dental laboratory in Dalian to produce high quality dental laboratory products such as crown and bridge work and frame and acrylic dentures. Target will be the dental clinics of Dr. Sha and other dental clinics in Dalian and Northeast China. The Laboratory will be up to DEMAQS (Dentalprosthesis Manufacturers Quality System) quality standard, the standard for dental laboratory products. Results • Joint venture formalised; • A new quality dental laboratory ready to operate; • Staff trained; • Business development. Development effects

on knowledge transfer 25 Employees will receive a general training. Six (6) table heads will receive a training in Europe. Nineteen (19) laboratory technicians will receive on the job training. The laboratory manager will receive management and business coaching. Five (5) workshops will be held for local dentists and a local dental student will receive a traineeship.

on employment During the project 25 persons will be employed directly. After the project the number of technicians will be increased by 25 persons at a time.

on chain Equipment and products will be sourced locally if available.

on women (positive) At least four (4) women will be hired, but it is expected that more women will be hired, as women are usually hired in dental laboratories for their precision in work.

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China

PSOM07/CH/04 Propagation of young plants, selection and production of Carnation, Limonium and Alstroemeria under a Fair-trade label

Location Next to the Flower Demonstration Park in Songming, Yunnan Province Sector Agriculture Applicant Hilverda B.V., Aalsmeer Recipient Pure Tea Co. Ltd, Kunming Start project 01 August 2007 End project 31 July 2009 Total budget EUR 1,499,576 (50 percent PSOM contribution)

Summary: Hilverda is a leading company in the selection, breeding, propagation and production of various cut flower varieties, such as Carnation, Limonium and Alstroemeria. Hilverda exports to more than seventy (70) countries worldwide. Hilverda produces carnation cuttings in Kenya in cooperation with Finlay Flowers. Pure Tea is a Chinese tea and coffee trading company located in Kunming. It exports to Europe, the Middle East, Japan and Korea and serves the domestic market. China is a major producer of cut flowers, while the domestic market for flowers is increasing rapidly. The main production area is located in Yunnan and the main flowers produced are carnation and rose. The problem is that the quality of carnations produced is low and medium, partly due to a lack of understanding of proper growing techniques and chain management and partly due to the use of cuttings and propagation material of inferior quality. Secondly, most carnation varieties, but also Limonium, are grown illegally, without royalties being paid. This hampers the development of the flower export sector, as flowers over which no royalties have been paid cannot be exported. At the same time, the production of cuttings is rapidly shifting to countries with lower labour costs, such as China. For companies involved in propagation it is therefore important to be present in these markets. Therefore the consortium proposes to jointly invest in the propagation, selection and production of carnation, Limonium and Alstroemeria cuttings (young plants) and the introduction of new varieties of carnation, Limonium and Alstroemeria. Also an outgrowers scheme will be part of the project. These cuttings will be produced under FLO, the Fair Trade Label, which will be a first in China. Secondly, close attention will be paid to breeder's rights. Results • Business structure established; • Tissue culture lab operational; • Production of cuttings and variety trials set up; • Rooting facilities established, staff trained; • Outgrowers scheme, certification and business development. Development effects

on knowledge transfer During the project 97 employees will be trained in one of the following subjects: tissue cutting and handling, planting and propagation, observation and reporting, rooting and harvesting and FLO. Ten (10) outgrowers will also receive training.

on employment During the project sixty (60) people will be directly employed. Twenty (20) outgrowers will be indirectly employed. Two (2) years after the project 141 people will be directly employed and fifty (50) outgrowers indirectly.

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on impact environment The impact on the environment is positive. Steam sterilisation will be used to sterilise the soil and insect pest management will be used to reduce harmful chemicals used in crop management.

on chain Materials will be sourced locally if available. The project will be an example for the flower sector on how to produce high quality cuttings in a professional way under the fair trade label. It will also set an example for the cultivation of carnations, Limonium and Alstroemeria in compliance with breeder's rights.

other A company loan scheme to enable permanently employed staff to lend money from the company will be established.

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China

PSOM07/CH/05 Manufacturing of burner installations in Nanchang, China

Location Wanchai HK Sector Industry Applicant Lijster Beheer B.V., Capelle aan den IJssel Recipient Wan Fang International (HK) Ltd, Wanchai, HK Start project 01 July 2007 End project 30 June 2009 Total budget EUR 812,889 (50 percent PSOM contribution)

Summary: Costerm specialises in the area of boiler and burner techniques. In the field of burners it specialises in techniques such as low NOx emissions. It has a daughter company in Switzerland that specialises in the design and fabrication of burners with a capacity of 1.5 - 40 Megawatt. Wan Fang International is a company that specialises in the sale and service of burners and its accessories. It has a network of eight (8) offices covering the major cities in China. Jiangxi Jianglian energy and Environment Co. belongs to the top ten (10) Chinese boiler producers. It produces boilers that are coal, gas and oil fired. As the Chinese economy is rapidly developing, the demand for industrial burners is also increasing. At the same time, due to industrial development, pollution is increasing rapidly in China. As a result, the Chinese government stimulates the use of cleaner fuels such as gas and oil and tries to reduce the use of coal. The Chinese government stimulates the use of cleaner fuels through subsidies and regulations, through, in some areas, restricting the use of coal fired burners and through actively promoting conversion form coal to gas. However, in China there are no producers of good quality burners with a capacity of 1.5 - 60 MW that use natural gas or oil. These burners are all imported; mostly form Europe. The consortium, therefore, proposes to set up a production facility to produce high quality burners that use gas, oil, or both (dual fuel). Burners will be produced for the local Chinese market and for export. Results • Inception phase; • Setting up the production facility; • Staff trained; • Production realised. Development effects

on knowledge transfer The 23 staff of the joint venture will be trained in one or more of the following subjects: production process and ISO certification, environment, burner techniques and low NOx technology and fuel transformation techniques, sales and marketing and after sales and service. Training will take place in China and Europe.

on employment During the project 23 people will be directly employed and fifty (50) indirectly. Two (2) years after the project 39 people will be directly employed and sixty (60) indirectly.

on impact environment The project will have a positive impact on the environment. It will introduce high quality burners that have low NOx emissions. In this way they will contribute to cleaner production processes. The project will also contribute to the transformation from coal to natural gas for a competitive price.

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on chain Materials will be sourced locally if available.

other The factory will be ISO certified. The factory will receive a SA 8000 pre-audit.

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China

PSOM07/CH/23 The key to perfection in mechanical parts Chengdu Sichuan Province China

Location Chengdu, Sichuan Sector Industry Applicant Lucassen Beheer Sittard B.V., Sittard Recipient Mico Precision Machinery Co. Ltd, Chengdu Start project 01 January 2008 End project 01 January 2010 Total budget EUR 1,062,200 (50 percent PSOM contribution)

Summary: Lucassen Beheer Sittard is the holding company for C-Key; a company specializing in the sourcing of high quality mechanical metalworking products and precision parts. Mico Precision Machinery Co. is a company that specializes in the production of mechanical parts. Through China’s rapid growth there is a growing demand for mechanical metalworking products and precision parts. However, high quality and complex metalworking products and precision parts are still being imported. At the same time, in the west, customers of metalworking products, in order to stay competitive demand a yearly price decrease from producers, causing enormous pressure on producers. As a result producers of mechanical and precision parts maintain knowledge intensive production of high end parts in Europe, while production of labour intensive parts, both simple and complex, shifts to low wage countries such as China. The problem, however, in China is that Chinese metal working is dominated by low-end technology, while the quality is low and not stable. As a result the project partners propose to establish a joint venture to produce high quality complex mechanical metalworking products and precision parts for Dutch customers, while, at the same time, also the Chinese market will be served by both metalworking products and precision parts from the joint venture and by offering companies in China engineering solutions from the Netherlands. Results • Inception phase; • Processing equipment finalised, Employees recruited and trained; • Business development and certification. Development effects

on knowledge transfer During the project one (1) person will be trained in the Netherlands in quality concepts. Fifty-five (55) employees will be trained in China in quality and how to operate the machinery. One (1) person will be trained in sales and marketing.

on employment During the project 55 persons will be employed. Two (2) years after the project, 145 additional people will be employed.

on chain Equipment will be sourced locally if available.

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China

PSOM07/CH/24 Creating an innovative cold chain for marketing of certified cut flowers and bouquets

Location Kunming, Yunnan Sector Agriculture Applicant Top Flora International B.V., Aalsmeer Recipient Kunming May-Sun Trading Co. Ltd, Kunming Start project 01 January 2008 End project 31 December 2009 Total budget EUR 849,638 (50 percent PSOM contribution)

Summary: Top Flora International specialises in the sourcing and export of flowers, flower bouquets and ornamental plants. Its customers are international retail chains, such as supermarkets, discounters and garden centres. Kunming May-Sun Trading company is a Chinese company involved in the import and export of flowers, young plants and bulbs. One of its markets is Japan. The company also specialises in the preservation of flowers. CHC Agriculture is an agent for several Dutch horticulture companies. It has sales offices in Kunming and Shanghai and a network of customers. Although the production of flowers in Yunnan is developing rapidly and the quality is improving, there is a lack of cold chain facilities, such as handling, packing and cold storing. This seriously hampers the development of export, as the flowers deteriorate in quality and freshness. As a result, low quality flowers are being exported and growers are forced to organise handling, packing, storage and transport themselves. On the other hand it also hampers the development of the Chinese market. Supermarkets are forced to organise the supply of flowers themselves, the quality of flowers is low due to bad handling, packing and storage, and the product range is limited as they only offer individual flowers and cannot offer, for example, ready made bouquets. As a result the consortium proposes to set up facilities for proper post-harvesting, packing and cold storage for flowers under MPS Florimark Trade. Flowers will be sourced from outgrowers and flower companies and will be sold to supermarket chains in China and exported to countries such as Japan. It will also introduce new marketing concepts to China. It will introduce and sell ready made flower bouquets to supermarkets, starting with Beijing and Shanghai. Results • Business structure established; • Packing and storage facilities operational; • Staff trained, marketing strategy developed; • Certification and business development. Development effects

on knowledge transfer During the project 23 employees will be trained in Florimark ISO & GTP Compliance, and/or post harvesting, bouquet composing, marketing and sales. Additionally sixty (60) outgrowers will be trained outside the project in cultivation techniques, pest control methods and management.

on employment During the project 23 persons will be directly employed. Sixty (60) outgrowers will be involved in this project. Two (2) years after the project thirty (30) persons will be directly employed and 160 outgrowers involved.

on impact environment The impact on the environment will be positive, as flower growers will be educated to use effective crop management thereby minimising the use of chemicals.

on chain Materials and equipment will be sourced locally if available.

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other The project will be Florimark Trade certified, including GTP and ISO 9001:200. GTP (Good Trade Practice) involves social criteria, ensuring the right of workers to be paid decent wages. Minimum health and safety as well as environmental standards must be complied with and no child or forced labour may occur. It also concerns traceability and quality assurance.

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China

PSOM07/CH/27 Organic Individual Quick Frozen (IQF) fruits & vegetables

Location Cheng Shan, Liaoning Sector Agriculture Applicant Pasterkamp Beheer B.V., Amsterdam Recipient BAI Guo Shu Food Trade Co. Ltd, Dalian Start project 01 January 2008 End project 01 January 2010 Total budget EUR 1,086,090 (50 percent PSOM contribution)

Summary: International demand for organic products is constantly growing (15 percent growth over the last five (5) years, to a value of EUR 35 billion in 2007), driven by the consumer's demand for organic, healthy and safe food and ensuing growth of organic restaurants, canteens and catering. Within this growing organic food business, organic IQF fruits and vegetables have shown the fastest growth. The project partners plan to construct an IQF factory and organise farmers to supply organic fruits and vegetables (strawberries, beans, broccoli, edamame, asparagus, peaches, apricots, cherries, blackberry, raspberry and blueberry) to meet the increasing demand for organic IQF products. In addition, warehouses, cooling facilities and a road will be constructed for processing and transportation purposes. Results • Inception phase, arrange documentation for the construction; • Construction of IQF processing line, buildings and storage; • Recruitment and training of personnel; • Set up of farmers base; • Business development, factory certification. Development effects

on knowledge transfer Approximately 110 people will be trained in local management, processing and quality. New crops will be introduced: strawberries, blackberries, green beans, broccoli, edamame and asparagus. 800 farmers will be trained to cultivate these crops in an organic way.

on employment During the project 100 direct jobs and ten (10) indirect jobs will be created. Two years after the project, this number will be double. Cultivation of fruit and vegetables is more labour intensive than the cultivation of traditional crops.

on impact environment As the project concerns organic farming the impact on the environment is positive. Erosion and desertification are decreased by improving the organic matter of the soil. The IQF facility will be built according to Montreal rulings.

on chain Building an IQF facility will create jobs and therefore stop the immigration from the countryside to the cities.

on women (positive) Approximately 75 percent of the factory workers will be female, and most of the people working on the fields are female, so the impact on the position of women is positive.

other Organic farming will result in healthier living conditions for the local community, and stop the flow of people from the countryside to the cities. The project will be SA8000, HACCP and organic certified.

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China

PSOM07/CH/28 Setting up production line for Bloksma boxcoolers and plate finned heat exchangers

Location Wuhan Sector Industry Applicant Bloksma B.V., Almere Recipient Wuhan Marine Machinery Plant Co. Ltd, Wuhan Start project 01 January 2008 End project 31 December 2009 Total budget EUR 1,430,000 (50 percent PSOM contribution)

Summary: Bloksma is a company that specialises in the production of heat exchangers for oil water and air purposes, such as plate finned oil heat exchangers and box coolers. It has offices in the Netherlands, Germany, France and Singapore and exports throughout the world, including China. Its main customer is the shipbuilding industry. Wuhan Marine Machinery Plant (WMMP) is a state owned company and part of the China Shipbuilding Industry Corporation (CSIC). It specialises in marine equipment, such as hoisting equipment for ships. It has a joint venture with the Japanese company Kawasaki and produces under license for MAN B&W. In recent years the market for shipbuilding has been changing. China is becoming the new centre of the shipbuilding industry. It has set itself the goal to be the largest shipbuilding country in the world in 2015. Besides producing for foreign shipping companies, the domestic market is also growing in importance. It is expected that in the next ten (10) years, 95 percent of the inland shipping fleet needs to be replaced. The Chinese shipbuilding is also moving from rather simple lower quality production to more complex high end vessels. As a result, the supply industry also has to shift to high quality production. Presently, there is no production of box coolers comparable to the standard Bloksma produces nor plate finned heat exchangers. Box coolers are either imported for the production of ships for western shipping companies, or ship builders use plate coolers, a different technology, or cool engines directly with water from outside. These techniques are mostly used in the domestic market. The plate finned heat exchanger Bloksma produces is also new to China, as, presently, only conventional plain shell and tube heat exchangers are being used. As a result, the project partners will establish a joint venture to produce both box coolers and plate finned coolers. This fits within the strategy of WMMP to add more products to its range and to diversify into the market for smaller ships. It also fits within the strategy of Bloksma to be close to its market and to reduce costs by producing in China. Results • Inception phase; • Hardware for production activities; • Staffing/training/product certification; • ERP system implemented; • Business development. Development effects

on knowledge transfer During the project nine (9) employees will be trained in the Netherlands in one or more of the following subjects: assembly, welding, quality, ERP, product information. 33 Employees will be trained in China in these subjects.

on employment During the project 39 persons will be employed. Two years after the project an additional forty (40) persons will be employed.

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on impact environment Impact on the environment will be neutral. Special measures will be taken regarding the oven used in the coating process. It will be equipped with an afterburner to minimise emissions. Reservoirs used for pre-processing during the coating process will be monitored, regenerated and/or disposed of according to Dutch standards or local standards, whichever is most stringent.

on chain Equipment will be sourced locally if available.

on women (positive) Impact on the position of women will be positive. During the project 20 percent of the employees hired will be women.

other The project will be SA 8000 certified. A certification in the field of working conditions. The project will be ISO 9001:2000 certified and the products will receive type certification.

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Indonesia

PSOM07/RI/21 Intiplasma Blueberry Project Indonesia

Location Sarongge Atas, Cianjur Sector Agriculture Applicant De Weert Beheer B.V., Rossum Recipient PT. Strawberindo Lestari, Kemang - Jakarta Start project 01 January 2008 End project 31 December 2010 Total budget EUR 1,488,642 (50 percent PSOM contribution)

Summary: The applicant De Weert Beheer B.V., through its affiliated company Westerbouwing is specialised in soft fruit. The applicant has a vast network in berry production, material and varieties, nursery and trade. The recipient PT. Strawberindo Lestari has developed a successful business in growing and marketing high quality strawberries in Southeast Asia. Together the applicant and the recipient have been involved in a raspberry PSOM project in Indonesia which has recently been successfully finalised. For this project Allseasons Holland B.V. was set up. With the support of financing from FMO the consortium will double its capacity of strawberries and raspberries in the next three years. As the demand for berries, including strawberries, raspberries, blueberries and blackberries all over the world has been growing and the majority of the customers of Allseasons Holland B.V. is requesting for blueberries, the partners see an excellent business opportunity to diversification into blueberry production and marketing. To achieve the objective of creating a sustainable business of blueberry production the consortium has opted for the Intiplasma business model. This model consists of the Inti which is a private sector company and the Plasma which are the small holder farmers that surround the Inti. Results • Joint venture established; • Construction and installation and organisational set up; • Farmers contracted and training; • Production, quality control, marketing and human resource management. Development effects

on knowledge transfer At least 150 people from the Inti and the out-growers and their workers from the Plasma will be trained.

on employment During the project at least 209 jobs will be created of which nine (9) jobs on supervisor/management level. The number of indirect jobs that will be created is 110. In the two (2) years after the project an additional 160 jobs will be created.

on impact environment The impact on the environment is regarded to be positive as EurepGAP quality standards will be adopted. Using greenhouse technologies and biological control of major pests the use of toxic chemicals will be eliminated. Within the out-grower programme small holders will be introduced to modern environmental technologies such as drip irrigation, biological control and soil conservation farming practices reducing potential loss of top soil and erosion.

on chain Many local companies will be involved during the building phase. Most of the raw materials are also locally available.

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on women (positive) Impact on women is positive. At least 50 percent of the staff working on supervisor/management level will be women. As the consortium partners have positive experience with female employees the majority of the personnel that will be contracted will be female.

other EurepGAP certification is included in the project.

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Mongolia

PSOM07/MN/01 Piloting the construction of a horse farm for the production of mare's milk

Location Selenge Aimag Province Sector Agriculture Applicant Hibbert (Nederland) B.V., Rotterdam Recipient Monenzyme Research & Production Co. Ltd, Ulaanbaatar Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,036,470 (50 percent PSOM contribution)

Summary: Hibbert Nederland B.V. is a real estate investment and exploitation company and part of the Van Herk Group. Besides real estate the group is also involved in biotechnology by investing in a number of biotech companies. The group is also involved in developing a social housing project in Mongolia. Monenzyme Research and Production Co was established in 1976 as a state owned biotechnology research company. Its main products are enzyme preparations from animal pancreas, mare’s milk powder and cosmetics based on mare milk. In 2003 the company was successfully privatized. Monenzyme and Hibbert came in contact through the Van Herk Group. As the Van Herk Group actively participates in the biotechnology sector, it became interested in Monenzyme and its products, especially mare’s milk products. Both worldwide and in Mongolia there is an increasing demand for mare’s milk. Although Monenzyme produces powdered mare’s milk for the local market, demand exceeds supply and mare's milk needs to be imported from China. Moreover, as the supply and quality of the milk is not consistent and too low, it cannot be exported to international markets. The reason is that in Mongolia all mare’s milk is acquired from nomadic herders; there are no commercial horse farms. As a result, it is difficult to guarantee the quality and supply of mare's milk. Therefore the consortium proposes to invest in a horse farm for the production of mare's milk up to HACCP standards, first for the local market and after the project also for the international market. The farm will be established in addition to the milk supplied by the nomadic herders. Besides training given to farm personnel, training will also be given to nomadic herders participating in the project in order to increase the quality of their milk. Monenzyme will be responsible for the processing of milk and local sales, while Hibbert will supply expertise in the field of horse breeding, animal feed and hygiene, and, after the project, international sales and marketing. Results • Business structure established; • Horse farm constructed; • Stables populated, staff contracted and trained, sales agreement concluded; • Milk collection scheme, smallholder herders trained, training teachers Mongolian University, certification; • Business development. Development effects

on knowledge transfer 31 Employees will be trained in quality and farm management, engineering, farm operation and certification. 27 Herders will be trained in hygiene, milk storage, cooling, transport and effective milking. Three teachers from Mongolian Agricultural University will exchange knowledge with WUR to set up a training curriculum.

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on employment At the end of the project sixteen (16) employees will be employed directly. 27 People will be indirectly employed. Two (2) years after the project 32 people will be directly employed and seventy (70) people will be indirectly employed.

on impact environment Impact on the environment will be neutral. Grassland management will be implemented to maintain grass coverage and to avoid detrimental overgrazing.

on chain Goods will be sourced locally if available.

other The project will be HACCP certified and ISO 9001:2000.

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Nepal

PSOM07/NP/21 Integrated layer chain in Nepal

Location Butwal Sector Agriculture Applicant Bokkers Trading B.V., Putten Recipient Shreenagar Agro Farm Pvt. Ltd, Kathmunda Start project 01 January 2008 End project 31 December 2009 Total budget EUR 824,880 (60 percent PSOM contribution)

Summary: The consortium aims to establish a layer chain in Nepal. The joint venture of Bokkers Trading (applicant) and Shreenagar Agro Farm (recipient) will specialise in layer pullets rearing. It will cover the whole chain of feed production, import of parent stock, sales of day old chicks, rearing and sales of layer pullets, production of eggs and buy back of eggs from contract farmers under the Assured Egg Program. The joint venture will involve small, local farmers in the production of eggs and the growing of crops as raw material for chicken feed. The new farm will be built in the Kathmandu Valley due to its favourable climate conditions. Results • Partnership officialised & project inception; • Buildings & facilities ready; • Recruitment & operational training of staff and employees. Company branding; • First production of layer pullets, table eggs under Assured Egg Programme. Involvement of local farmers. Development effects

on knowledge transfer All employees will get a basic training. Additionally more than thirty (30) people will get extensive training. Moreover, all contract farmers will get practical training in poultry farming.

on employment Employment at the end of the project will be 70 fte direct and 200 indirect. Two years later these figures will have doubled to 140 direct and 400 indirect employment.

on chain Many small farmers will be involved in the production of eggs and the growing of crops for chicken feed. The project will set a new standard for egg quality assurance.

on women (positive) The impact on the position of women will be positive as most of the local farms are run by women, because most men are working abroad. Twenty (20) percent of the employees are women.

other Promotion of crop farming for chicken feed in underutilised areas in the hills and specifically the growing of winter maize (new for Nepal) will lead to additional income for small farmers.

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Sri Lanka

PSOM07/LK/21 Sealeafs

Location Puttalem Sector Agriculture Applicant Handelskwekerij Spaargaren-van Doorn B.V., De Kwakel Recipient Sarath Fernando Haldandowane, Palama Start project 01 December 2007 End project 31 December 2010 Total budget EUR 803,700 (50 percent PSOM contribution)

Summary: The core business of the applicant Spaargaren & van Doorn B.V. (SPADO) is import/export of growing plants, pottery and cutfoliage. They have over twenty (20) years experience with export from Sri Lanka to the Netherlands. The recipient, Spado International Ltd has been set up in 1992 and produces growing plant, pottery and cutfoliage. The latter company is a full daughter of Spado in the Netherlands. The project will establish a new export market from Sri Lanka with special cutting leafs to the Netherlands using container sea transport. The Sri Lankan local manager will become the third business partner of the new joint venture to be set up for the development of this new business opportunity. The project contains growing plants for production of cutting leafs mainly for export to the Netherlands. These cutting leafs are used for flower industry and mostly by flowershops. The plant types that are needed for cutting leaf are some well-known types and a few new types that will be introduced in Sri Lanka. The applicant developed a new way of producing cutting leafs that makes the leaf strong enough for transport by seafreight. With seafreight in stead of airfreight the costprice of the leafs can be reduced significant which gives the new joint venture a competitive advantage. Ensured market demands and fixed minimum selling prices makes the project Sealeaf interesting according to the applicant. Results • Inception report; • Setting up infrastructure of 5 hectare cultivated land; • First production and training programme; • Second phase, 5 hectare land development; • Final report and protocol of production. Development effects

on knowledge transfer The train the trainer principle will be fully applied. The local general manager will be trained by the Dutch applicant. The two (2) supervisors and sixteen (16) coordinators will be trained and they will train the workers. These two (2) supervisors will also receive a training programme in the Netherlands. The workers will receive at least two (2) hours of training each week. A main training topic will be quality awareness.

on employment Ninety (90) direct jobs will be created.

on impact environment The impact on the environment will be positive. Organic fertilizers will be used to prepare the land. Rain water will be collected for irrigation purposes.

on chain A detailed list of eleven (11) SME suppliers is given. Most of them will be structurally involved in the future operation of the joint venture.

on women (positive) Eighty (80) percent of the total workforce will be women.

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Thailand

PSOM07/TH/01 Unikon Asia Ltd

Location Bangkok Sector Industry Applicant W.M.A. van Weeghel Beheer B.V., Barneveld Recipient SMT Industrial Services Co. Ltd, Suan Luang, Bangkok Start project 01 July 2007 End project 30 June 2009 Total budget EUR 574,470 (50 percent PSOM contribution)

Summary: The project partners will establish a joint venture to setup a factory for the production, assembly, sales and services of high-quality industrial washing machines (T-1200 series). The project partners plan to start production in Thailand of relatively small cabinet washers. After two (2) years of manufacturing cabinet washers, further development is planned towards more complex tunnel washing systems. The project partners will first target the food industry in Thailand and surrounding countries. However, Unikon products can also be used in other sectors such as the medical (disinfection) and pharmaceutical sector. Results • Set up of joint venture; • Recruitment and training of personnel; • Assembly line and offices/building finalised; • Business Development (marketing & business plan for follow-up investments finalised). Development effects

on knowledge transfer The project will train twelve (12) employees.

on employment The project will create twelve (12) direct jobs.

on chain The project is expected to have a positive impact on the chain.

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Thailand

PSOM07/TH/04 Establishing a production site for manufacturing of tracking- and tracing devices in Udonthani, Thailand

Location Ampur Muang, Udonthani Sector Industry Applicant Satworld Holding B.V., Tiel Recipient Udon Mastertech Co. Ltd, Aumphur Muang, Udonthani Start project 01 July 2007 End project 31 May 2009 Total budget EUR 1,259,915 (50 percent PSOM contribution)

Summary: The project partners will establish a joint venture to setup a facility for the production of 2,500 tracking- and tracing devices (Eureca Asia Pacific). Tracking and tracing systems can be used to locate and track down transportation vehicles and other mobile units. The system consists of a cellular mobile communication system (“black box”) embedded in e.g. cars, which transmits a distress signal as soon as an emergency occurs (e.g. car theft). A growing number of insurance companies obligate their customers to install a tracking and tracing system in their car. The pilot project will include the construction of a new factory including offices and machinery (pick-and-place machine, test equipment, etc.) and an air filtration system. In addition, the factory will include various pieces of office equipment (ICT hardware, software and furniture). Results • Establishment of the joint venture; • Building & plant completed; • Pilot production and knowledge transfer; • Marketing activities & finalising business plan concerning follow-up investment completion of the project. Development effects

on knowledge transfer The project will train all fifty (50) employees.

on employment The project will create fifty (50) direct jobs in the production.

on impact environment The project will have a zero-positive impact on the environment. The project will be ISO14001 certified.

on chain The project is expected to have a positive impact on the chain.

on women (positive) The project will employ 35 women (70 percent).

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Thailand

PSOM07/TH/21 New quality standards and added value for Thai orchids; '4 Commodity 2 Premium'

Location Nakhon Pathom Sector Agriculture Applicant Ter Haar Ornamental Flower B.V., Aalsmeer Recipient JF Orchid Co. Ltd, Bangkok Start project 01 January 2008 End project 01 October 2009 Total budget EUR 1,380,874 (50 percent PSOM contribution)

Summary: For more than ten (10) years, Ter Haar imports Thai orchids from the two (2) Thai project partners. Definition of the challenge of the project: Improvements to the Thai orchid sector urgently require a chain approach, with investments in new technology and training to bring Thai orchids producers and exporters up to new international standards. The production of orchids is a longstanding Thai tradition, and indeed part of the country’s image abroad. Yet, the introduction of quality measures and standards throughout the chain has not taken place over the last decade making the sector potentially a victim of its previously uncontested success. Ultimately this project may lead to a certified, quality brand of Thai cut flowers, which are increasingly traded from the producing country directly to retailers and clients. In addition, the project will provide a safe and environmentally conscious alternative for the current practice where every export consignment is fumigated with methyl bromide under often dangerous circumstances and with uncontrolled chemical waste harming the environment and public health. Ter Haar and JF Orchids will establish a joint venture to setup a post harvest handling facility (2,000 m²) including sorting, packing, vacuum cooling and conditioned storage facilities before export to the Netherlands, Japan and China. The facility will provide employment to 69 workers. In addition, fifteen (15) outgrower suppliers will be prepared for certification according to Thai GAP standards and the yet to establish Ter Haar brand. The project partners and producers will be trained in the use of innovative and effective technologies to prevent Thrips Palmi in the fields such as hygienic conditions between flower beds, scouting Thrips Palmi and control them in the early stages, control of Thrips Palmi with sticky traps and responsible use of disinfestation equipment. In addition, biological pest control (Entocare) will be introduced. New quality standards, including IPM and environmentally conscious disinfestation methods of flowers will be promoted amongst other Thai flower producers and exporters, facilitated by the Department of Agriculture (DoA) and the Thai Orchid Exporters Association together with the Kasetsart University in Thailand. Pilot exports consignments of certified cut flowers (produced by Sawasdee and outgrowers) will be geared up. The new quality will be promoted to clients (retailers and consumers) in the Netherlands, thus introducing the first (Business to Business) branded certified Thai orchids. Results • Project inception and joint venture establishment; • Flower handling / added value centre established; • Environmental conscious control programme Thrips Palmi; • Training and capacity building in new quality standards and certification; • Dissemination of new quality standards and pilots. Development effects

on knowledge transfer The project will train 64 direct employees and fifteen (15) farmer suppliers.

on employment The project will create 69 direct jobs in the flower handling facility of which thirty (30) jobs can be considered as extra or “new” employment. In addition, 100 farmer suppliers will be connected to the project of which fifteen (15) suppliers will be prepared for certification.

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on chain The project is expected to have a positive impact on the chain. One hundred (100) farmer suppliers will be connected to the project of which fifteen (15) suppliers will be prepared for certification.

on women (positive) The project will employ mostly women.

other The project partners will set-up a children’s day care facility, provide medical facilities for the workers and introduce regular check ups for the staff.

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Vietnam

PSOM07/VN/01 Production of Value added super frozen Tuna

Location Nah Trang Sector Agriculture Applicant Ibro Mar B.V., Rotterdam Recipient Hai Vuong Co. Ltd, Nah Trang Start project 01 January 2008 End project 31 December 2010 Total budget EUR 1,477,250 (50 percent PSOM contribution)

Summary: The Dutch applicant Ibro Mar B.V. (nineteen (19) employees) is a trading company that imports under own label deep frozen seafood from all over the world for export to European markets, targeting mainly wholesale, retail chains (e.g. Albert Heijn and Tesco) and caterers. The local Vietnamese company Hai Vuong Co. Ltd (500 employees) is one of the biggest fishery companies in Vietnam and processing mainly tuna, swordfish, marlin and shark. The two project partners have a long-lasting business relationship. The project partners will establish a joint venture to setup a factory for the production of super frozen tuna and will be located in Nah Trang. The factory will include an office building, cold rooms (-20 °C and -62 °C) and a processing and a vacuum skin packing hall. The facility will be certified HACCP, BRC and Ethical Trading Certificate. In addition, the project is aimed at the employment of yellow fin tuna fish from small-scale fishery in the deep-sea waters around Vietnam. For this the project partners will set-up a programme for 2,000 fishermen (175 fishing boats) for support and training. The programme will include new catching methods with new designed hooks and gears (recommended by WWF) to save sea life and avoid by catch of non target marine species. New storage and conservation methods and techniques will be introduced and the project partners will provide ice and isolation modules to improve their ships. In addition, 270 direct workers will be trained for the factory. The project will be MSC certified. Results • Pre-assessment of MSC certification and start up of project partnerships; • Project inception and business partnership established; • Pilot facility established, employees contracted and trained and start-up of production prepared; • Training of employees and set-up and training of 2,000 fishermen; • Realisation of output of 650 metric tons vacuum packed super frozen tuna, MSC certification, marketing and business

developed & finalisation of the pilot project. Development effects

on knowledge transfer The project will train 270 persons in new packing and processing skills. In addition, the 2,000 fishermen involved in the landing of tuna fish for the joint venture will be instructed and trained in new catching methods with new designed hooks and gears to save sea life and avoid by catch of non target marine species. New storage and conservation methods and techniques will be introduces and explained.

on employment The project will create 270 direct jobs in the production facility and 2,000 fishermen will be connected to the project.

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on impact environment The project partners have committed themselves to a sustainable production of frozen tuna including: - reduction of by catch by as much as 90 percent using specially designed fishing hooks as recommended by WWF researchers; - increase average size of catch, avoiding small juvenile fish catches by use of short gears and specially designed hooks as recommended by WWF; - higher utilization and lower direct spoilage of tuna fish caused by an adequate cooling, handling and treatment. Less tuna fish will be required for the same amount of seafood; - the new cold chain to supply super frozen tuna to Europe will result in a smaller ecological footprint by avoiding air transport.

on chain The project is expected to have a positive impact on the chain and will be MSC certified.

on women (positive) The project will employ 144 women.

other The 2,000 local fishermen will be provided with ice and isolation modules to improve the cooling facilities of their ships. Also, a small health clinic will be included in the project. As one of the goals of the project to guarantee a production process that complies to the corporate social entrepreneurship rules of the customers in the EU, the project will be guaranteed child labour free.

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Vietnam

PSOM07/VN/02 Pilot Production of large fixed Pitch Propellers

Location Hai Duong Province Sector Industry Applicant Wärtsilä Propulsion United B.V., Drunen Recipient Vietnam Shipbuilding Industry Corporation / Vinashin Imex, Hanoi Start project 01 August 2007 End project 31 July 2009 Total budget EUR 1,499,955 (50 percent PSOM contribution)

Summary: The project partners will establish a joint venture to setup a facility for the production of a wide range of large fixed propellers in Vietnam. The complete facility will be realised in four (4) phases, of which the first phase covers the pilot project and include the pilot production of large (max 40 tons) fixed pitch propellers (FPP). The second phase will include an expansion of the unit size and volume plus the ISO certification of the factory. In the third phase, the project partners will produce complete FPP packages including own design, shaft lines and sealing systems. The fourth phase will establish a commercial and international contacts department. The pilot project will include the setup of the joint venture, the lease and setup of the production hall and the installation of the machines and equipment (hydraulic balancing equipment, grinding manipulator, grinding hand tolls, high frequency converters, welding equipment, various tools, measuring equipment and office equipment, In addition, during the pilot project the local staff (50 persons) will be trained and ten (10) large fixed pitch propellers are planned to be produced. Results • Setup of joint venture and preparation for implementation; • Machines and equipment installed; • Recruitment and training of local staff; • Pilot production and bankable business plan. Development effects

on knowledge transfer The project will train all 54 employees.

on employment The project will create 54 direct jobs in the production facility and 100 indirect jobs.

on impact environment The project will have a zero-positive impact on the environment.

on chain The project is expected to have a positive impact on the chain.

on women (positive) The project will employ eleven (11) women.

other Apart from their basic income, a bonus system will be developed for the employees if they have good performance and achieve good training result. All workers will be provided lunch in the company canteen and insurance for the health care costs will be paid by the joint venture as well as a certain contribution for the pension of the staff.

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Vietnam

PSOM07/VN/03 Building Model Shipyard to build Coaster for European Market

Location Hai Phong Province Sector Transport / Infrastructure Applicant Rensen Seatrade B.V., Zwijndrecht Recipient Hong Ha Company, Hai Phong Province Start project 01 August 2007 End project 01 August 2009 Total budget EUR 1,499,510 (50 percent PSOM contribution)

Summary: The project partner will establish a joint venture to setup a production facility (a shipbuilding dock) for the construction of complete special small seagoing vessels that can be used along the coasts in series. These vessels are also called coasters, which are between 2,500 DWT - 6,000 DWT. The pilot project will only include the first phase of the project, which is the construction of the new dock and setting up the production facility, training the staff and local designers and to ISO certify the production facility. The second phase will include the expansion of the production capacity and to establish a design department. The third phase will diversify the production with other types of vessels. During the pilot project, one (1) 2,600 DTW coaster will be build. Rensen is planning to build twelve (12) coasters in 2013. Results • Setup of joint venture and preparation for implementation; • Construction of dock, machines and equipment installed; • Recruitment and training of local staff; • Pilot production and bankable business plan. Development effects

on knowledge transfer The project will train all 53 employees.

on employment The project will create 100 direct jobs in the production facility and 100 temporary jobs. Indirect, the project partners expect to create approximately 200 additional jobs.

on impact environment The project will have a zero-positive impact on the environment.

on chain The project is expected to have a positive impact on the chain as a serious involvement of local companies is required in this project (e.g. supply of materials, parts and services).

on women (positive) The project will employ ten (10) women.

other In addition to the basic income, a bonus system will be developed for the management and staff. The project partners will also pay for secondary benefits and all employees will be provided lunch. Finally, the project partners will pay for health insurance and a certain contribution for the pension of the staff will be paid by the joint venture.

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Vietnam

PSOM07/VN/21 Flexible CPP packaging solutions made in Vietnam

Location Ho Chi Minh City Sector Other Applicant Dillewijn Group B.V., Aalsmeer Recipient Up State Enterprise (VN) Co Ltd, Thuan An, Binh Duong Start project 01 January 2008 End project 31 December 2009 Total budget EUR 835,992 (50 percent PSOM contribution)

Summary: The project partners will establish a joint venture to set up a factory for the production of CPP plant packaging materials. CCP is a stretchable and very strong material printed, folded and sealed on specially tuned equipment. The required technology is substantially different from manufacturing BoPP (bi-oriented polypropylene) flower sleeves, which uses ready made firm sheets which are much easier to process (print, cut and seal). Whereas CPP plant packaging is currently only produced in the Netherlands, Germany and Colombia, BoPP flower sleeve production is done world-wide. The pilot project will include: 1) the establishment of a new joint venture between Up State and Van Dillewijn, 2) a fully equipped and operational facility for custom designed plant CPP packaging, 3) promotion activities to inform the industry about the new products and shorter lead times and 4) a bankable business plan for follow-up investments to reach full commercial scale. The facility will be ISO9001 certified as well as Ethical Trading Initiative (ETI) and BRC. The project will be located in one wing of the existing production facility of Up State, which will be rented from the local Vietnamese partner. The project will be located on an industrial park near HCM City. Results • Joint venture established; • Manufacturing unit operational; • Product development, training and promotion; • Business development. Development effects

on knowledge transfer The project will train all seventeen (17) employees.

on employment The project will create seventeen (17) direct jobs in the production facility and twenty (20) indirect jobs.

on impact environment The project will have a zero-positive impact on the environment.

on chain The project partners intent to involve many local SME companies to supply parts, components and services including cartridges, carton boxes, ink, etc. Therefore, the partners expect to have at least fifty (50) suppliers.

on women (positive) The project will employ eight (8) women.

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Vietnam

PSOM07/VN/23 Pilot production of high-quality marine electronic components & installations Hai Phong Vietnam

Location Hai Phong Sector Energy / Environment Applicant Eilander Elektro B.V. h.o.d.n. eL-Tec elektrotechnologie, Hattem Recipient Hai Pong Electrical Industry Joint Stock Company (Heijco), Hai Phong Start project 01 February 2008 End project 31 January 2010 Total budget EUR 1,483,295 (50 percent PSOM contribution)

Summary: The project partners will establish a joint venture to set up a manufacturing facility for the production of marine electronic monitoring and control systems. During the pilot project, the joint venture will mainly focus on the production of electronic switch boards that will monitor and control the marine vessel, but will also include the integration of electrical and electronic monitoring and control systems on board of the vessels (not only assemblage). The project partners will build an energy safe facility for the set-up of a workshop to produce 32 marine auxiliary switch boards, four (4) marine main switch boards & electrical installation for four (4) vessels during the pilot project. The joint venture recruits and trains in total sixty (60) workers/engineers and the facility will be ISO9000:2001 certified. The partners have planned to use the full capacity of 35 switch boards per year in 2013. Besides the production of the switch boards, the project partners will also produce the rest of the electronic monitoring and control systems of which the switch boards is part. Results • Setup of joint venture and preparation for implementation including master- and engineering plan; • Constructions of workshop, office & testing facilities; • Recruitment and training of local staff; • Installation of machines and equipment; • Pilot production and bankable business plan. Development effects

on knowledge transfer The project will train all sixty (60) employees.

on employment The project will create sixty (60) direct jobs in the production facility and fifty (50) indirect jobs.

on impact environment The project will have a positive impact on the environment, as the factory will be built in an environmental friendly way. The building will be constructed with good insulation, energy saving technologies based on the experiences of eL-Tec’s office building in the Netherlands, where eL-Tec only uses 20 percent of the normal amount of energy for such buildings.

on chain The project partners intend to involve many local SME companies to supply parts, components and services. Therefore, the partners expect to have at least fifty (50) suppliers.

on women (positive) The project will employ ten (10) women.

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Vietnam

PSOM07/VN/24 Manufacturing of non-woven disposable material and clothing for export in Khanh Hoa

Location Khanh Hoa Sector Other Applicant Dispo-Dent B.V., Heerenveen Recipient Lucky DAY Co., Ltd, Ho Chi Minh City Start project 01 February 2008 End project 31 January 2010 Total budget EUR 1,450,582 (50 percent PSOM contribution)

Summary: The project partner will establish a joint venture to set up a facility for the production of non-woven disposable materials and clothing (less than 40 gram per square metre). The facility will include a PP fabric workshop, PP and PE workshops, a warehouse, offices, a small laboratory, a clipcap machine and packing machinery needed for the production. The pilot facility will be ISO9001 and ISO2000 certified and will employ and train 196 workers. The production capacity of the facility will be twenty (20) containers of non-woven disposable materials and clothing per month and the facility will be 6,000 square metre. Results • Set-up of joint venture and inception phase; • Construction of workshop, office and facilities; • Recruitment and training of staff; • Machines and equipment installed; • Pilot production and bankable business plan. Development effects

on knowledge transfer The project will train all 188 employees.

on employment The project will create 188 direct jobs in the production facility and eight (8) indirect jobs.

on impact environment According to the partners, the project will have a zero-positive impact on the environment, also because PP and PE are "environmental friendly" plastics and leftovers can be used again in the production process.

on chain According to the partners, the project is expected to have a positive impact on the chain and various suppliers will be needed for the project.

on women (positive) The majority of the workforce will be women.

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Central and

Eastern Europe

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121

Bosnia and Herzegovina

PSOM07/BA/01 Joint venture for pig breeding and fattening in Bosnia and Herzegovina

Location Bosanska Gradiska (north of Banja Luka) Sector Agriculture Applicant Varkenshouderij A. van Genugten B.V., Best Recipient Agro Internacional Doo, Bosanska Gradiska Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,416,000 (50 percent PSOM contribution)

Summary: Varkenshouderij A. van Genugten B.V. is a leading company in the Netherlands in production of fattening pigs. The company has 33,000 pigs and has its own feed mill and transport company. Van Genugten has reached the limits of expansion in the Netherlands. Therefore, the company is exploring possibilities for foreign investment. Recently Van Genugten set up a company in Hungary, and is now looking to start a fattening farm in Bosnia-Herzegovina (BiH). Agro Internacional was founded in 1996. Its owner was educated in the Netherlands and speaks fluent Dutch. The company’s main activity is to represent Dutch agribusiness companies, such as Cehave, Agrico and Bejo Zaden. As a supplier of feed ingredients, the owner is highly knowledgeable about the local pig sector. Slaughterhouses do not use their full capacity because they lack a steady supply of good quality meat. At least 10,000 tons per year are imported. The project aims to substitute part of these imports. The project will fill the gap between demand and supply by setting up a joint venture called Country Pork (75 percent Van Genugten, 25 percent Agro Internacional). It will be situated in the Republika Srpska, north of Banja Luka. A new building for 3,500 animals will be built. This means that each year 7,000 animals will be fattened from 25 to 135 kilogramme. Sows from reliable Dutch genetic stock will be sold to small local breeding farmers, who will supply the joint venture with piglets weighing 25 kilogramme. Results • Established joint venture, land purchased, permits obtained, signed contracts with at least fifteen (15) private breeding

farmers; • Construction of factory hall, installation of equipment, first employees contracted, fifteen (15) private breeding farmers

trained, demonstration day organised; • Training and knowledge transfer, cooperation agreements with slaughterhouse, veterinary institute signed, two (2)

traineeships offered to students from agricultural university; • Production of 6,720 fattening pigs, sales and marketing, IKB standards applied to greatest extent possible. Development effects

on knowledge transfer The project will bring new stable technology to Bosnia, which is unknown at the moment. The introduction of new genetics will stimulate the pig sector as well. Manure application on arable fields will be introduced by injection technology. Training will be given in engineering stables, operation and maintenance of the equipment and animal husbandry.

on employment During the project twelve (12) new jobs will be created. These persons will be employed in animal husbandry (eight) (8), management (two) (2) and administrative support (two) (2). During the spin-off phase employment will increase with another ten (10) people. The project will start breeding activities with fifteen (15) private farmers, but it is foreseen that this will increase soon to 30-40 farmers.

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on impact environment Environmental effects will be taken into account when building the stables. This means that the ammonia emission will be minimal because of construction of reduced ammonia emission stables, storing the manure under the stables instead of in open basins. Furthermore the manure will be injected right into the soil.

on chain The project will stimulate the whole chain by supplying good quality genetics to local private breeding farmers, it’s own fattening farm will set new standards in livestock husbandry, environment and manure application. The slaughterhouse can increase it’s processing capacity, since it operates only two (2) days a week, because of lack of supply of good quality piglets. (The slaughterhouse declared in a letter it wants to buy all the piglets of Country Pork.) Cooperation will be established with Veterinary Institute and the Agricultural College of Banja Luka. Two (2) traineeships per year are offered to students.

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Bosnia and Herzegovina

PSOM07/BA/02 Integrated production of high quality Stainless Steel Products in Bosnia Herzegovina

Location Tešjan Sector Industry Applicant HVM Fryslan, Oosterwolde (Friesland) Recipient SZR INOX Ajanovic, Tešjan Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,000,000 (50 percent PSOM contribution)

Summary: HVM Fryslân, a design and development company for stainless steel products, will establish a joint venture (HVM-INOX) with SZR-INOX-Ajanovic for the production of advanced stainless steel products with modern technology. The existing activities of the SZR-INOX-Ajanovic company, which produces stainless steel products with rather outdated equipment for export (70 percent) and local markets (30 percent), will be 100 percent integrated into the new joint venture. A new factory (1,000 square metre) will be built in Tešjan (Central Bosnia) with a processing capacity of 200,000 kilogramme stainless steel per year. It is also expected that about 70 percent of the products from the joint venture will be exported. All exports to Dutch and European markets will go through HVM Fryslân. The joint venture will only be responsible for sales to the local market. The product range of the new facility will consist of stainless steel garden furniture for the top segment, shop interiors, industrial products, fences, frames, appendages, water tanks, parts for water purification systems and other products such as mobile bars, stairs and recreational equipment. The main problem impeding further expansion of the current cooperation is that SZR-INOX has reached full capacity, and the technology used is too old. It cannot produce products with a high degree of accuracy in large quantities and acceptable quality. This prevents HVM Fryslân from meeting the increasing demand for its products. Because of the project’s modern production technology, the joint venture HVM-INOX could triple its production in the pilot project compared with existing production at SZR-NOX. With the new production facility, HVM will be able to meet its current demand in the Netherlands and will have sufficient capacity to start an intensive marketing approach for newly designed products. With this project, HVM will become competitive in the industrial and design furniture product markets in the Netherlands and Europe. Results • Established joint venture, land purchased, permits obtained, factory design completed, signed letter of intent with high

school concerning two (2) traineeships; • Construction of factory hall (1,000 square metre), installation of equipment, 10,000 kilogramme stainless steel processed

into products, employees contracted; • Fifty (50) employees trained in administration, logistics, management and operation of the factory; • Production and sales of 100,000 kilogramme of stainless steel transformed into final products, ISO 9001:2000 certification

obtained, open day organised.

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Development effects

on knowledge transfer The project will introduce new technical skills to employees to operate the new modern machines. Management will be trained. Cooperation with a local technical school will be deepened. Knowledge of internal logistics will be a focus point.

on employment At this moment SZR INOX employs 28 employees. The joint venture will take over 100 percent of the business activities of SZR INOX. During the project 25 workers are additionally employed, mainly in the factory (production process). After the project direct employment will increase with another 25 employees. During the implementation period indirect employment will grow with five (5) and within two (2) years after the project with five (5) as well. (In the chrome, galvanize, transport, woodprocessing and construction sector.)

on impact environment Because of the modern production technology less waste material is produced. Production will be clean, not leading to pollution, emissions etc.

on chain Because of increase in production of the joint venture, the orders to sub contractors will increase as well: wood and glass processors, companies who can galvanize steel products, companies who can chrome metal products, companies who plasticize and powder coat metal products. Local construction companies will be hired to build the new building, the local transport sector will benefit because of the export to the Netherlands/Europe, the local technical school will benefit because of more possibilities of cooperation (traineeships). At least five (5) indirect jobs will be created during implementation phase.

on women (positive) The effects on the position of women are limited. Some women will be employed in administration.

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Macedonia

PSOM07/MK/01 Innovative and sustainable clothing production in the Republic of Macedonia

Location Stip Sector Industry Applicant Ethics B.V., Baarn Recipient Beas-C, Stip Start project 01 September 2007 End project 30 June 2009 Total budget EUR 1,402,450 (50 percent PSOM contribution)

Summary: The applicant is Ethics B.V., manufacturers of women’s clothing and outdoor/sportswear for fashion retailers in the Netherlands and neighbouring countries. Ethics operates in the mid- to upper price segment and manufactures private label collections for retailers and brands in particular. The recipient, Beas-S, is a contracted apparel manufacturing company founded in 1992. It also produces under its own label (Beas-ABS). BEAS-ABS is sold in Macedonia and neighbouring countries. In 2006 Ethics subcontracted Beas-S for the manufacturing of women’s clothing orders and was satisfied with the quality of the apparel. However, Beas-S cannot currently meet the demand by Ethics because of inadequate capacity. Therefore the two (2) companies decided to start a joint venture and invest in modern and innovative technology in order to cope with the high quality requested by Western customers (export) and to improve supply chain management. In addition, the joint venture will focus on sustainable production of smaller quantities with a higher margin and shorter lead periods. The private label of Beas-S, Beas-ABS, will also be further developed. The main purpose of the project is to increase the production capacity of the Beas-S company by introducing innovative supply chain management skills and technology, modern production equipment and socially responsible management. Results • Joint venture established; • Production equipment installed and one (1) truck purchased; • Production flow improved and employees trained; • Production fine-tuned. Development effects

on knowledge transfer Knowledge will be transferred on modern and innovative technology for the clothing manufacturing industry: knowledge on quality and production monitoring, pattern making (CAD/CAM), modern cutting, sewing, pressing and finishing techniques, logistical knowledge related to the use of a conveyor system, electronic data interchange and ERP software use. Also modern management skills will be taught in order to cope with quick response systems.

on employment During the implementation period of the project, 61 direct full-time jobs will be created in management, transport and in production. Indirectly another 400 jobs will be created, because only 30 percent of the orders of Ethics will be produced at Beas-S. The remainder of the orders will be subcontracted by Beas-S to other clothing manufacturers. Two (2) years after the project, it is expected that ten (10) additional direct full-time jobs will created and fifty (50) indirect jobs.

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on impact environment The project team will seek to apply environmentally friendly solutions for all waste produced at the factory. Also energy sources will be used in a sensible and careful way.

on chain The increasing number of sub-contracted production orders will positively influence the business activities of several small and medium-sized companies, specialised in washing, printing, embroidery and transport. Also local suppliers of fabrics and accessories (SME’s) will benefit from the project.

on women (positive) The impact on the position of women will be positive in the project. Traditionally, more women are employed in the clothing industry, but with the high rate of unemployed men in the region, men will be employed as well.

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Macedonia

PSOM07/MK/21 Growing conifers in Macedonia

Location Tetovo Sector Agriculture Applicant Handelskwekerij gebroeders Michels B.V., Melderslo Recipient a.d. Borec Import-Export S. Lesok - Tetovo Joint Stock Company, Tetovo Start project 01 January 2008 End project 30 June 2010 Total budget EUR 1,230,964 (50 percent PSOM contribution)

Summary: Applicant Handelskwekerij Gebrs. Michels B.V. is a large trader of conifers that its sister company Boomkwekerij Gebr. Michels B.V. and third parties grow in the Netherlands. The company sells conifers mainly to Northern European countries. After ten years of rapid growth, further expansion is constrained by the limited availability of land and labour in the Netherlands. Market research showed a keen interest in conifers in southeast Europe, but no adequate suppliers. Therefore the Gebr. Michels started looking for opportunities to establish a conifer production in one of the Balkan countries. This search led the Gebr. Michels to recipient AD Borec, specialised in cherry and apple growing and some other agricultural production and trading. Both parties have agreed to enter into a long-term partnership for the production of conifers, to be sold mainly at the southeast European market. At the start of the project Handelskwekerij Gebrs. Michels B.V., AD Borec and European Plants Dooel will sign a commercial agreement regarding the supply of planting material and sales of final products. The project partners will initially plant conifers on 40 hectare of open field. The tree nursery will furthermore include 1.3 hectare of foil greenhouses for the production of container-reared conifers. An open field section of 1.5 hectare will be planted with mother plants for the propagation along with 2,000 square metre greenhouse for the rooting of cuttings so that the company will be able to produce its own seedlings in the future. A separate area of 0.5 hectare will serve as a demonstration field for different varieties of conifers. At the end of the implementation phase the joint venture will have produced and sold at least 500,000 conifers, while a larger investment plan foresees an expansion to 4 million conifers per year, requiring a follow-up investment of around EUR 1 million in the spin-off phase. Results • Project inception; • Establishment of an open-field conifer plantation; • Establishment of a protected nursery for production of container-reared conifers; • Establishment of conifer propagation and variety testing; • Establishment of post-harvest facilities and business development. Development effects

on knowledge transfer During the project 43 persons will be trained of which thirteen (13) persons will be employed on a full-time contract while the remaining thirty (30) persons will be working on a part-time basis. Training programmes will focus on land preparation and integrated soil management, tree planting techniques, irrigation techniques, tree harvesting and post-harvest handling and propagation techniques for conifers.

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on employment During the project thirty (30) full-time positions will be created and another 27 part-time jobs due to the seasonal nature of the fieldwork. Two (2) years after the project forty (40) full-time jobs will be created and another 25 part-time jobs. Indirect employment will be mainly in the transport and logistics sector and in the nursery retail sector.

on impact environment The cultivation of conifers is a clean process that takes place without the use of pesticides. The main plant disease in conifer growing is caused by nematodes (vector). To keep the soils clean from nematodes, nursery growers can use chemical soil disinfectants. Alternatively, a fallow crop of marigolds can be grown, which is a natural deterrent for nematodes. The latter nematode control strategy will be adopted at the conifer nursery in Macedonia and chemical soil disinfectants are avoided.

on chain A number of local companies will become supplier of goods or services. Fertilizer, farm tools, irrigation pipes, pumps, etc. will be procured locally. Also local transport and logistic services will be hired to transport conifers to the market.

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Macedonia

PSOM07/MK/24 Implementation of city wireless mesh networks in Macedonia

Location Tetovo Sector Other Applicant Hopling Technologies B.V., Almere Recipient Anic-Systems Ltd (Digimak), Strumica Start project 01 January 2008 End project 30 June 2009 Total budget EUR 870,434 (50 percent PSOM contribution)

Summary: The main purpose of the project is to implement city wireless mesh networks in Macedonia in order to offer affordable and technologically advanced Internet access, voice-over-IP (VoIP) telephony and other wireless services to the Macedonian citizens. To this end the applicant Hopling Technologies B.V. aims together with the recipient Digimak to install wireless mesh networks in five major cities in Macedonia: Bitola, Prilep, Ohrid, Gostivar and Kicevo. The cities have been chosen in regional areas of Macedonia where little or no investment in IT and high technology has taken place. The project activities consist of setting up a company, Sun Wireless (100 percent recipient), for all business activities of the project, training related and not related to goods, the purchase and installation of hardware, the exploitation of a wireless mesh network offering Internet and VoIP services to a minimum of 8,321 customers by 30 June 2009 and the production of a practical guide on Wi-fi mesh network implementations for other commercial organisations or cities worldwide. In the spin-off phase wireless mesh networks will be expanded to another seven (7) cities. Results • The set up of a company, Sun Wireless, for all business activities of the project. The first training not related to goods has

been completed; • Purchase and installation of hardware and second training not related to goods have been completed. In addition, the first

training on the use, service and maintenance of hardware has been delivered; • Five Macedonian cities have started the exploitation of a wireless network by offering Internet and VoIP services to

potential customers. The second training related to goods and the third training not related to goods have been implemented;

• A final report, a practical guide on Wi-fi mesh network and a minimum number of 8,321 subscribers have been delivered. Development effects

on knowledge transfer The project introduces and promotes new technical skills and technologies that are not yet implemented in Macedonia on this scale. Ten (10) engineers will be certified for the installation and management of Hopling and other Wi-fi equipment. These engineers together with Hopling will in turn train fifteen (15) technicians for the installation and maintenance of the equipment. Sales training will be delivered as well.

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on employment During the implementation period of the project, seven (7) jobs will be created in each of the five (5) Macedonian cities. In total 35 jobs related to management and maintenance. Indirectly, another sixty (60) jobs will be generated, because sales teams will work based on the commission of sales. Two years after the project, it is expected that seven (7) additional cities will request wireless networks and therefore employment could increase to 75 direct jobs and 125 indirect jobs.

on chain In the public sector Sun Wireless will co-operate with the local governments in order to offer e-government services to their citizens. Similarly, co-operation will be sought with the local utilities companies to improve their management of water and electric usage in the cities by installing wireless water and electric meters.

131

The Russian Federation

PSOM7/RF/1/1 Quality Veal Products; from farm to market

Location Nesterovka (Kaluga Region) Sector Agriculture Applicant Boszicht Beheer B.V., Bant Recipient OOO Nesterovka, Moscow Start project 01 August 2007 End project 31 December 2009 Total budget EUR 749,000 (100 percent) funded by Ministry of Economic Affairs

Summary: Applicant Boszicht Beheer B.V. (five (5) employees) is the holding company of De Woldberg, one of the largest private primary veal producers with about 4500 sites in the Netherlands. The owner was one of the first farmers to switch from raising bulls to rosé veal, which is more animal friendly than white veal. Recipient OOO Nesterovka (fifteen (15) employees) is the former collective farm Kommunar, once one of the largest and financially healthy farms in the Kaluga region. The owner bought the farm to remodel it into a modern environmentally and animal friendly farm, using Dutch agricultural know-how and technology. Consortium partners are aiming to set up veal production for the Russian market. On the one hand, Russian dairy farms have to kill off bull calves from the milk cows, because the farmers lack the technical dietary knowledge to produce high-quality veal. On the other hand, Russia suffers from a supply deficit in quality meat and quality veal in particular. The crops of recipient Nesterovka can be used for calf feed (parallel project) and in turn, the manure can be used as fertilizer for Nesterovka crops. Results • Established joint venture between the Dutch partners and Nesterovka; • Stable for starters with 400-head capacity operational and first calves bought from suppliers; • Finishing stables (8 units) with 120 heads operational; • First veal meat sold and export realised for Dutch partners. Parallel project A key element in producing quality veal is the calves’ diet. To produce veal meat fodder, roughage as well as concentrates are required. It is possible to buy these feed ingredients, but it is more secure to produce one’s own feed. Therefore, the development of veal fodder production has been chosen as a parallel project with the title “Quality Crop Products; from Farm to Market”. This project also has a budget of EUR 749,000 funded by the consortium partners.

132

The Russian Federation

PSOM7/RF/1/2 Establishment of a modern growing facility for ornamental plants in Saint Petersburg

Location Pushnoye, Leningrad Oblast Sector Agriculture Applicant Las Palmas International B.V., Aalsmeer Recipient North-West Flowers Ltd, Saint Petersburg Start project 01 August 2007 End project 31 July 2009 Total budget EUR 750,000 (100 percent) funded by Ministry of Economic Affairs

Summary: Las Palmas International Trade B.V. is one of the leading companies in the Netherlands for import and export of tropical plants, cuttings, seeds and seedlings. The recipient is the applicant's major client in the Russian Federation, and supplies to well-known customers based in Russia, such as IKEA and large retail chains including Okey, Lenta and Karusel. The applicant supplies the recipient with young plants, which are raised by the recipient in plastic tunnels until they have reached their commercial sizes. However, the growing conditions in these plastic tunnels cannot be controlled optimally, resulting in loss of quality, sub-par growing periods and inefficient use of labour, energy and surface area. Investing in glass greenhouses will contribute to a more effective approach to the Russian market. In the PSOM project, a 0.5 hectare modern growing facility for ornamental plants is proposed, in the vicinity of Saint Petersburg. By developing local production of ornamental plants, transportation of mature plants - which is expensive and accountable for loss of more than 10 percent of the plants - can be significantly decreased. Initially the focus will be on green plants, planted on 0.5 hectare, but follow-up investments will expand the area to 3.0 hectare and investments in grow lamps will facilitate the production of flowering potted plants. Results • Joint venture established, leasing contract and building permits acquired, staff appointed; • Greenhouse constructed and equipped, registration for MPS certification, production staff trained; • 3,600 square metre out of 4,000 square metre of greenhouse area planted, production losses reduced to less than

10 percent of the plants, production and sales of 300,000 ready potted plants, turnover of EUR 850,000, bankable business plan for follow-up investments, production staff trained, MPS certification acquired.

Parallel project There are two (2) parallel projects: the first is a cash and carry for ornamental plants in Saint Petersburg; the second is a cash and carry for potted plants and cut flowers in Moscow.

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The Russian Federation

PSOM7/RF/3/2 Kaluga Dry Port

Location Worsino, Kaluga Oblast Sector Transport Applicant H&S Foodtrans B.V., Oss Recipient OOO Intermodal Partners, Kaluga Oblast Start project 01 August 2007 End project 31 March 2009 Total budget EUR 739,978 (100 percent) funded by Ministry of Economic Affairs

Summary: H&S Foodtrans B.V. and Haesaerts Intermodal N.V. (both logistic service providers), through their joint venture Intermodal Partners B.V., have established the company OOO Intermodal Partners in Russia. This company will set up a dry port in Kaluga Oblast to enable fast and secure transport by rail and by combined rail / short sea (via Saint Petersburg) between Western Europe (the Netherlands) and Russia. This enables a “modal shift” from road- to rail / short sea transport. The dry port will have the ability to organise 'own' trains but will also be open to other rail services as a public terminal. The intention is to work with weekly ‘block’ trains, where all train wagons are transported from the same origin to the same location, without sorting occurring en route. The terminal will be based on the Western European modern technical concept, aiming at terminal processing times under thirty (30) minutes for trucks to be in and out of the facility. In order to realise this, modern equipment and transfer of knowledge on modern terminal operations are crucial. At a later stage, the expectation is that the project will stimulate industrial development: warehousing, cold storage and industrial production. Eventually the project partners also want to have their own storage facility at the terminal. On a more indirect level, it is expected that the project will facilitate foreign investments in Kaluga Oblast. The establishment of the dry port therefore receives the full support of the Kaluga Oblast Administration. Results • Structure of recipient completed and preparatory documents ready; • Dry port infrastructure and equipment completed; • Employees hired and trained, marketing & sales strategy completed; • Dry port fully operational and ready for follow-up investments. Parallel project The parallel project “Intermodal Trucking” involves establishing on-site container trucking capacity for transport between the terminal and local Russian import / export companies. The trucking capacity adds value to the dry port by offering door-to-door delivery options.

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The Russian Federation

PSOM7/RF/1/4 Positioning of Dutch rose varieties on the floricultural market of the Russian Federation

Location Kireevsk, Tula Oblast Sector Agriculture Applicant Lesambre B.V., Aalsmeer Recipient OOO Chekhov Garden, Kireevsk - Tula Oblast Start project 01 January 2008 End project 31 December 2009 Total budget EUR 749,400 (100 percent) funded by Ministry of Economic Affairs

Summary: This project looks to improve and increase the sale of licences and plant material of high-quality Dutch rose varieties in the Russian Federation in a controlled manner. This way Dutch rose varieties can be strongly positioned on the Russian market. A nursery under Dutch supervision will be established to test the potential of rose varieties interesting for the Russian market, by setting up production under Russian climatic conditions. The varieties that perform well will be made available to Russian growers under license. This procedure ensures both breeder and grower that planting a certain variety will have a successful result in terms of production and quality in this climatic area, which will in turn enhance the image of Dutch horticultural products. Results • Establishing the joint venture and preparing project implementation; • Building a greenhouse with propagation and nursery; • Observation and selection of varieties and testing of propagation techniques; • Marketing plan for commercial propagation and establishment of a representative office. Parallel project In the parallel project, plant propagation will be implemented at the same location, making it possible to supply new plants to growers. The expected increase in rose production will be accompanied by a growing demand for plant propagation. The applicant aims to stay ahead of this development by expanding his business to Russia to be able to control the sales of licences and propagation of the plant material.

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The Russian Federation

PSOM7/RF/1/5 "Savvateev Nurseries" - joint venture for the production and marketing of ornamental trees

Location Shachovskaya (Moscow Oblast) Sector Agriculture Applicant Combinatie Mauritz Boomkwekerijen B.V., Opheusden Recipient OOO K. Ch. Sungorkina V.N., Shachovskaya (Moscow Oblast) Start project 01 January 2008 End project 31 December 2009 Total budget EUR 739,970 (100 percent) funded by Ministry of Economic Affairs

Summary: Combinatie Mauritz Boomkwekerijen B.V. and OOO K. Ch. Sungorkina VN, together with Landbouwmechanisatiebedrijf J. van Dam B.V. and Clootwijck Nurseries B.V., will set up the joint venture Savvateev Nurseries Ltd for the production and marketing of ornamental trees in Russia. The project involves the establishment of an integrated demonstration/pilot nursery of 14 hectare for ornamental trees and conifers/shrubs in Shachovskaya (Moscow Oblast). Spills will be imported from Combinatie Mauritz to be cultivated further by Savvateev Nurseries, and then sold on the Russian market and possibly to neighbouring markets (e.g. Kazakhstan). The project also includes a Nursery Service Centre, which will provide specialised equipment and advisory services to both the nursery itself as well as to contracted ‘outsource growers’. Equipment for the Nursery Service Centre will be imported from Landbouwmechanisatiebedrijf J. van Dam B.V. Results • Establishment of the joint venture Savvateev Nurseries Ltd; • Establishment of a Nursery Service Centre with specialised equipment and advisory services; • Realisation of the initial planting stage on 7 hectare of the pilot nursery (3 hectare with ornamental trees and 4 hectare with

conifers/shrubs); • Realisation of the second planting stage on 7 hectare of the pilot nursery (see result 3) and realisation of sales projections. Parallel project Parallel to the PSOM project, the same consortium will set up the joint venture Savvateev Plant Garden Ltd for the marketing and sales of garden plants and ornamental trees. The parallel investment (EUR 740,000) involves the establishment of a marketing and sales facility and a Landscape Design Centre adjacent to the nursery. The marketing and sales facility will sell ornamental trees and conifers/shrubs cultivated at the nursery, as well as imported garden plants and flowers to complete the product assortment. Although not essential for Savvateev Nurseries, which will sell to many regions in Russia and export to neighbouring Byelorussia etc., the marketing and sales facility and Landscape Design Centre will provide the nursery with more hands-on, direct customer contact, and will function as a meeting place for landscape designers, contractors and local authorities.

136

The Russian Federation

PSOM7/RF/2/5 Production of process belts in Russia

Location Moscow Sector Industry Applicant Ammeraal Beltech International Beheer B.V., Heerhugowaard Recipient ZAO Ammeraal Beltech Manufacturing, Moscow Start project 01 January 2008 End project 31 December 2009 Total budget EUR 750,000 (100 percent) funded by Ministry of Economic Affairs

Summary: The Dutch company Ammeraal Beltech is active in production and sales of high-quality process belts for indoor use. The belts are part of automated production processes increasingly utilised by companies all over the world. Those companies are only in light and medium industries. Main clients of Ammeraal Beltech are active in the food industry; airport, logistics & mail; tobacco industry; print & paper processing. Other clients are suppliers of automated production lines for those companies. The process belts are sold via a Russian distributor called Ammeraal, that imports the rolls of belts and tailors them to the needs of local clients. The high-quality (and expensive) Ammeraal Beltech belts are primarily sold to the high end of the Russian market. Transport costs, import duties, and currency fluctuations make the belts too expensive for the emerging belt market in the middle and lower segments comprised of Russian companies. It is anticipated that this segment will grow particularly fast in the future. Ammeraal Beltech has the ambition to become a leading player in the Russian market as well. Results • Preparation of the project implementation; • Renovation of the building, installation of the equipment, transfer of know-how; • Operational and commercial exploitation of the joint venture. Parallel project A EUR 750,000 parallel project focussed on production of high-quality PVC will be developed by the joint venture. Although PVC is locally available in the Russian Federation, integrated production will guarantee the right quality and availability at all times. The applicant states that theoretically one could do without the parallel project, but in practice this would cause only distress for the main operations.

137

The Russian Federation

PSOM7/RF/2/7 Manufacturing of ambient vaporisers in Omsk, Russian Federation

Location Omsk Sector Industry Applicant Cryotek Management & Beheer B.V., Alphen aan den Rijn Recipient Nauchno-Tekhnicheski Kompleks Kriogennaya Tekhnika, Omsk Start project 01 January 2008 End project 30 June 2009 Total budget EUR 461,600 (100 percent) funded by Ministry of Economic Affairs

Summary: The product range of applicant Cryotek Management and Beheer B.V. includes cryogenic vaporisers, storage tanks and road trailers. The project sets up local production of ambient cryogenic vaporisers mainly used by industrial gas supplying companies. Vaporisers are applied to maintain tank pressure during liquid withdrawal. The consortium partners are setting up local production in Omsk in the form of a joint venture. The reason for this is that the Russian oil and gas industry (typically where cryogenic vaporisers are part of installations and processes) is growing rapidly. Results • Setting up of a joint venture; • Reconstruction of production hall, procurement of production tools, machinery, obtaining design approval; • Recruiting and training of new staff; • Start-up of production. Parallel project The parallel investment relates to establishing a manufacturing shop for so-called powered vaporizers. This shop will be located on the recipient’s premises, and the joint venture partners are the same. The budget of the parallel project is EUR 500,000 and the planning is the same as the PSOM project. The parallel project has the following results: • Reconstruction of production hall, procurement of production tools, machinery, obtaining design approval (point of no

return); • Recruiting and training of new staff, transfer of production know-how; • Start-up of production.

138

The Russian Federation

PSOM7/RF/3/3 Multi-modal terminal in the Volga region

Location Saratov Sector Transport Applicant Van der Wal Internationaal Transport B.V., Utrecht Recipient OOO TransService, Saratov Start project 01 January 2008 End project 31 December 2009 Total budget EUR 750,000 (100 percent) funded by Ministry of Economic Affairs

Summary: The Russian Federation will need 17,000 combines and 45,000 tractors per year for the coming five years; domestic producers can serve less than 50 percent of this market. The main bottlenecks in current import practices are: • High costs related to stock: producers stock their yearly production on industrial sites in Western Europe or the United

States of America, which is relatively expensive; • High costs and unnecessary pollution related to transport: rushed transport from Western Europe and the United States of

America, just before the harvesting season in the Russian Federation with empty returns. Applicant Van der Wal Holding B.V. and beneficiary TransService intend to offer an innovative logistic solution by transferring the last part of the production chain and the warehousing of machinery to Saratov. This city, located near the Volga and the highway, is the gateway to the agricultural centre of Central Asia, but also to the oil production region near the Caspian Sea. Results • Establishment of the joint venture; • Office, terminal and preparation centre established and training plan drawn up; • Washing station and storage platform constructed; • Office, terminal and preparation centre equipped, infrastructure constructed and employees recruited and trained; • Commercial exploitation. Parallel project The project partners of this parallel investment are the same as for the PSOM project. The recipient for the parallel investments will be the current joint venture of Van der Wal and TransService: Duet. The objective of this parallel investment project is to establish: • A new facility for the transport activities, providing all modern equipment and complying with all environmental

requirements; • A new Service Centre that meets all modern quality, safety and environmental requirements. The Service Centre will offer

the following services: truck and bus maintenance and repair, sale of spare parts (specialising in original DAF parts) and truck parking with modern sanitary facilities and a canteen.

139

The Russian Federation

PSOM7/RF/4/1 High technology waste separation complex for industrial and municipal wastes and modern controlled landfill operation

Location Novocherkassk (Rostov Oblast) Sector Environment Applicant Coman Engineering & Contracting B.V., Elsloo Recipient ZAO Company Sezar, Saint-Petersburg Start project 01 January 2008 End project 31 December 2009 Total budget EUR 720,000 (100 percent) funded by Ministry of Housing, Spatial Planning and the

Environment

Summary: Coman Engineering & Contracting B.V., Waltec B.V. and ZAO Company Sezar will establish a joint venture for the construction and exploitation of a high technology waste separation complex for municipal and industrial wastes, a waste compressing and baling system, and a modern controlled landfill operation in Novocherkassk. PSOM support is requested for the waste separation complex, the compressing and baling system ,and the landfill (total EUR 1,220,000). This will be financed by the consortium members. Both investments form part of a chain approach to overhaul waste handling in Novocherkassk, upon the request of the Municipal Government. Waste collection will remain the responsibility of the collection/transport company of the Municipal Government. The project will lead to improved waste handling and substantial reduction of air, soil and groundwater pollution. Through the sales of recycled waste, e.g. paper, plastics, and metal, the project demonstrates the profitability of investments in waste separation. Given that there will be a great need for waste handling complexes in Russia in the coming years, this project, when completed successfully, will offer the consortium members an opportunity to enter this vast market. Results • Joint venture established, agreements with Municipal Government of Novocherkassk signed; • Waste separation line installed, employees contracted and trained; • Waste separation plant operational, sales of recycled waste and environmental effects realised.

140

The Russian Federation

PSOM7/RF/4/3 Environmentally sound Truck Wash in Moscow

Location Moscow Sector Environment Applicant TSR Holland Group B.V., Vriezenveen Recipient O.O.O. Termoplast, Moscow Start project 01 January 2008 End project 31 December 2009 Total budget EUR 822,729 (100 percent) funded by Ministry of Housing, Spatial Planning and the

Environment

Summary: TSR Holland Group B.V. and OOO Termoplast will establish an environmentally sound automated truck wash facility, with a water recycling unit, adjacent to the Moscow ring road (MKAD) or the Moscow – Tula highway. TSR truck wash facilities are explicitly designed to fulfil three requirements: (i) fast, (ii) easy to operate, and (iii) environmentally sound. TSR aims to market this total quality truck wash facility worldwide as a leading brand in a franchise concept. Besides stationary truck wash facilities, the company has introduced a franchise formula for mobile total wash solutions. The PSOM project would be the perfect start to enter the Russian market, with the ultimate goal of establishing a franchise formula for truck washes around the entire ring road, and to roll out its existing mobile wash solution for on-site environmentally sound cleaning and disinfection of transportation vehicles. The TSR environmentally sound truck wash facility has three environmental effects: 1- water savings, 2- reduction of waste water and 3- reduction of the quantity and degree of sludge pollution. The current wash facilities in Moscow are insufficient by far, because they do not have the capacity to deal with high frequency visits and lack any form of waste water treatment. Oil and fat residues, contaminated sludge, washing detergents and other aggressive chemicals are flushed without any form of recycling and end up without any treatment in the sewage system, ground and surface water. The project will thus have a positive effect on soil and groundwater quality in Moscow. Results • Agreement between consortium partners, building for the 3-lane truck wash facility completed; • Delivery, installation and connection of the 3-lane truck wash facility, employees contracted and trained; • 3-lane truck wash facility and sludge recovery system operational, turnover target and environmental target reached.

141

Serbia (incl. Kosovo)

PSOM7/SB/1/2 Pilot glasshouse production of high quality vegetable seedlings

Location Irig (Voljvodina) Sector Agriculture Applicant Grow Holding B.V., Naaldwijk Recipient Planten d.o.o., Irig Start project 01 July 2007 End project 30 June 2009 Total budget EUR 749,200 (50 percent) funded by Ministry of Economic Affairs

Summary: Grow Group is specialised in cultivating vegetable plants for commercial growers and looks to establish a presence in promising vegetable growing regions, such as Vojvodina. The company has set up nurseries with local partners in Germany, Hungary, Mexico, Morocco, Tunisia, Turkey and Ukraine. Grow Group also provides management support and advice on all aspects of vegetable production, using its broad knowledge and experience of growing conditions in various countries and climate zones. Grow Group and Planten intend to set up a seed-growing company for professional vegetable growers. The joint venture between Grow Group and Planten will include constructing a glasshouse for propagating small seedlings. Professional growers buy seeds for vegetables and ask the joint venture to cultivate those seeds to small plants of the same size and hardiness. These growers will pay a handling fee for the service, and get premium starting material with uniform quality in return. The production will start with a limited assortment of vegetables currently in highest demand in Serbia, to be diversified in a larger cultivation area following the pilot phase. The project will enable Grow Group to develop activities in Serbia and its mother company Rijk Zwaan to expand sales in Serbia. Results • Joint venture agreement finalised; • Lease agreement with municipality signed; • Specifications for training worked out; • Glasshouse of 0.9 hectare in place; • Five people trained and employed; • 7,000,000 Vegetable seedlings planted; • Marketing organisation for assistance to medium and small growers established; • Organisation of two (2) training workshops, each for thirty (30) producers; • Promotional activities; • Turnover of EUR 800,000 for the joint venture realised; • Business plan for follow-up investments completed.

142

Serbia (incl. Kosovo)

PSOM7/SB/1/3 Veal Production in Serbia

Location Čačak Sector Agriculture Applicant Frisian Veal One B.V., Balk Recipient Suvobor Koop N.N., Čačak Start project 01 August 2007 End project 31 August 2009 Total budget EUR 631,150 (50 percent) funded by Ministry of Economic Affairs

Summary: The applicant is a subsidiary of Nicolay Holding, which has specialised in international veal trade and production for over forty (40) years. Suvobor Koop N.N. was first established in 1992. They started buying and selling calves on the local market and for export. The owner is also the vice-president of the Association of Cattle Breeders of Serbia and played a leading role in the introduction of identification & registration of cattle in Serbia. A joint venture between Frisian Veal One B.V. and Suvobor Koop N.N. will extend local veal production for the EU export market. In order to become one of the leading veal producers in Serbia, the joint venture will introduce the concept of the starter stable and eventually make use of the Holstein-Frisian breed. It is already used in Serbia as a dairy breed, but so far not as a fattening breed. Within the project a starter stable for 400 calves and a finisher stable for 600 calves will be built. Most of the finishing stable product is destined for the EU market, as Serbia has hardly met its export quota for this product up till now . Some of the calves from the starting stable will be sold to other farmers for finishing, either in Serbia or neighbouring countries. At the end of the project, an updated business plan will be made for further expansion of the project. The production will comply with EU -Dutch legislation for veal and young beef production. With the project Nicolay will establish itself in the Serbian market, for purchasing starting calves to be fattened in the other European markets of the Nicolay group. Results • Joint venture established; • New starter and finishing stable built and personnel trained; • Production underway and first sales realised; • Bankable business plan for follow up after project completion in place.

143

Serbia (incl. Kosovo)

PSOM7/SB/2/3 Establishing a modern and well equipped pilot production facility in Serbia for the production of GRP mouldings, polyester sandwich panels and semi-fabricates/superstructures

Location Zrenjanin Sector Industry Applicant Pecocar Holland B.V., Albergen Recipient Pecocar d.o.o., Belgrade Start project 01 September 2007 End project 31 August 2009 Total budget EUR 683,091 (50 percent) funded by Ministry of Economic Affairs

Summary: Pecocar Holland B.V. from Albergen is a leading producer of polyester sandwich panels to be used in the automotive bodywork market. The panels are mostly used in trailers, trucks, busses, campers and caravans. In addition, Pecocar Holland also delivers glass-fibre reinforced polyester (GRP) mouldings which are mainly added as components to the sandwich panels (spoilers, ramparts, wheel arches, holders etc). Pecocar recently decided to establish its own production plant in Serbia, where GRP moulded products will be produced as well as sandwich panels. Production in Serbia is attractive due to the abundant availability of labour in Serbia and expansion restrictions in the Netherlands. Consequently, Pecocar d.o.o. was established in 2006 and is currently producing only GRP moulded products for European customers in a hall which is not suitable for the long term. With PSOM-support, Pecocar will be able to expand production in Serbia to include polyester sandwich panels, using vacuum compression and wet-in-wet technologies, and GRP mouldings using manual lay-up, spray-up and vacuum injection technologies. In addition, manual assembly of semi-fabricates and superstructures will take place in a new production location to be established in Zrenjanin. Setting up production on a larger scale will enable Pecocar to start producing for the local market and to expand into other industries, such as building, packaging and chemistry. Pecocar Srbija will undertake large-scale GRP moulding and sandwich panel production according to stated specifications. The products will be developed in the Netherlands and the production process includes modern techniques. By expanding production activities in Serbia, Pecocar will be able to expand development activities in the Netherlands. The proposed hardware consists of a production building and production equipment including fifty (50) new models for the production of GRP mouldings, compression tables, pumps, lifting devices, pallet gliders, cutting machines and spray units. Results • Preparation of the investment; • Readiness of the production location; • Readiness of the new organisation; • Start-up of the production; • Full-scale production, first sales and completion of the final report.

144

Serbia (incl. Kosovo)

PSOM7/SB/1/5 Strawberry farm or fruit production and plant material in Serbia

Location Smederevo Sector Agriculture Applicant Van Alphen aardbeienplanten B.V., Galder Recipient Ecoland d.o.o., Lunjevac-Smederevo Start project 01 January 2008 End project 31 December 2009 Total budget EUR 730,227 (50 percent) funded by Ministry of Economic Affairs

Summary: Van Alphen aardbeienplanten B.V. is a production and marketing organisation for strawberry plants. Ecoland d.o.o. is a production and marketing organisation for fruits (mainly apples and pears) and vegetables. The two partners will set up a joint venture to produce fresh strawberries in Smederevo, Serbia. The strawberries will be produced in a greenhouse, an innovative concept for Serbia. The fruits will be produced in the off-season and will be marketed via the existing channels of Ecoland d.o.o. to Serbian retail organisations. Furthermore, a sorting facility will be established for strawberry plants produced by Van Alphen in the Netherlands. These will be partly sold in Serbia but mainly be re-exported to Western European customers of Van Alphen. During the spin-off phase, the joint venture will start propagating additional strawberry plants for the Serbian market; during the project, preparations such as obtaining licenses will occur. A fully equipped modern greenhouse, a cold store and sorting facility will be installed. Serbia offers a good market for both strawberries and strawberry plants. It has a large processing industry for both jam and juices. The cultivated acreage is estimated at approx. 8,000 hectare. Results • Establishment of the joint venture between the partners and obtaining the legal registration and permits; • Greenhouse for production of strawberries operational; • Production of strawberries; • Storage and sorting facility for strawberry plants operational; • Sorting of 2 million strawberry plants and production of 162 tons of strawberries from January 2009 to December 2009.

HACCP and GlobalGap certificates obtained.

145

Serbia (incl. Kosovo)

PSOM7/SB/2/5 Establishment of an environmentally sound Serbian marine coating and painting service

Location Kladovo Sector Industry Applicant PS Marine Coatings B.V., Alblasserdam Recipient G&M&D d.o.o., Belgrade Start project 01 January 2008 End project 31 December 2009 Total budget EUR 598,134 (50 percent) funded by Ministry of Economic Affairs

Summary: The aim of the project is to set up a subsidiary of PS Marine Coatings Holland in Serbia with modern equipment, contemporary quality control/ management and advanced waste reduction technology. The market for the joint venture will be the shipbuilding and maintenance industry, both in Serbia and neighbouring countries. The activities will be sandblasting ships’ hulls and applying coatings and paint. The Serbian partner will be the company G&M&D d.o.o.; this company is specialised in anti -corrosion treatment of steel in shipbuilding and civil engineering. The subsidiary will serve the most important Dutch clients of Marine Coatings Holland having established themselves in the Balkan region. In addition, the project will be environmentally normative in a regional sector in which the environment still is widely neglected. Full-time employees will receive marine equipment manufacturing-related training (operation, maintenance and repair, product specifications) and product-related training (marketing and sales). The joint venture will be ISO 9001:2000 certified. Results • Establishment of a Serbian-Dutch joint venture and selection of the project location; • The new marine cleaning, spraying and drying booths are operational and the production personnel has been trained; • The joint venture is completely operational.

146

Serbia (incl. Kosovo)

PSOM7/SB/2/7 Production of trendy designed chairs

Location Valjevo Sector Industry Applicant Kesk B.V., Bergharen Recipient Inter-Produkt, Valjevo Start project 01 January 2008 End project 31 December 2009 Total budget EUR 400,000 (50 percent) funded by Ministry of Economic Affairs

Summary: KESK is a furniture factory mainly producing tables for dining rooms. On a much smaller scale, the factory also produces wooden base elements for seats and sofas and bedroom furniture. Besides furniture production, KESK works as distribution channel for dining room chairs in cooperation with several chair manufacturers, in order to deliver complete dining room sets. KESK will enter into a joint venture with Inter-Produkt, a metalworking and assembly company in Valjevo, which enables KESK to produce metal parts of the wooden tables and chairs in Serbia. Besides metal parts, the joint venture will also produce metal chairs. Cooperation between the companies began in spring 2006 and the results of this cooperation are seen in the joint venture. With the project, the consortium intends to establish cost-effective production of dining chairs in the “upper middle” range that can compete with the price levels in this segment. Good logistics will allow the partners to reduce delivery times to a minimum, so also on this point they will be able to compete. Results • Establishment of the joint venture between the partners and obtaining the legal registration; • Facility for furniture production operational; • Employees trained in wood- and metalworking; • Sales of EUR 179,563 from July 2009 to December 2009.

147

Turkey

PSOM7/TR/1/1 Oregano harvest and distillation for ethereal oil production special for the feed industry

Location Antalya Sector Agriculture Applicant Ropapharm International B.V., Zaandam Recipient Plantapharm Gida San. Ve Tic. Ltd Sti, Istanbul Start project 01 July 2007 End project 01 July 2009 Total budget EUR 153,125 (50 percent) funded by Ministry of Economic Affairs

Summary: Ropapharm International is a producer and distributor of feed additives for the feed industry. The world-wide patented feed additives of Ropapharm International are based on ethereal oil distilled from the plant Origanum Vulgare (Oregano). Its active components consist of antibacterial, antifungal, anti-parasitic and anti-oxidative properties. Ropadiar has a positive effect on the animals’ immune system. The market will be expanded as soon as the products are registered on the European list of official feed additives and human additives in 2010. For registration, product traceability as well as ensuring a continued level of quality are of great importance. Ropapharm expects to expand their business due to prosperous market conditions and new product innovations. Market prospects will improve as soon as their products receive official EU registration as feed additives. The ethereal oil is of strategic importance for Ropapharm International B.V.. Ropapharm International and Plantapharm see an opportunity in setting up a joint production site for harvest and distillation of oregano to make ethereal oil. On the Dutch market the products will be sold to the current clients of Ropapharm, like Cehave, Van Gennip and De Valk, amongst others. Results • Cooperation officially established and project plan developed; • Production facility operational; • GMP certification; • Business development.

148

Turkey

PSOM7/TR/2/1 Innovative shipbuilding in Turkey and reduce CO2 emissions of tankers

Location Izmit Sector Industry Applicant Marine Service Holding B.V., Westerbroek Recipient Maritime Piping Industry Ltd, Izmit Start project 01 August 2007 End project 31 December 2008 Total budget EUR 405,443 (50 percent) funded by Ministry of Economic Affairs

Summary: Marine Service Holding B.V. (MSH) and Maritime Piping Industry Ltd (99 percent subsidiary of MSH) have decided to combine their expertise to design and construct modular maritime installations. These modules will replace a large quantity of stand-alone equipment such as compressors, pumps, filters etc. Installation of modules, compared with assembling on site (as is usual in Turkey) is more cost-effective. Application of 3D computer-aided design systems will decrease the installation costs since engineering and assembling a system is done according to the ship’s infrastructure layout. Adjustments on the spot, which are time-consuming, are no longer necessary. The overall project objective is to establish local production of engine room installations and cargo handling systems for seagoing vessels by introducing state-of-the art equipment, innovative production technologies (3D design systems) and transfer of know-how with regards to quality control and safety standards. In addition, inert gas installations, to protect flammable cargo of crude oil carriers from explosions, will be assembled at the premises of Maritime Piping Industry Ltd. Different components, delivered by several Dutch suppliers, are incorporated in the systems of Marine Piping Industry Ltd. Results • Establishment of a (new) local production facility; • Transfer of know-how and training of local employees; • Delivery and installation of hardware; • Commercial production.

149

Turkey

PSOM7/TR/2/3 From coffee bean to coffee nut: introducing high-quality espresso coffee for the top hotels and restaurants in Turkey

Location Antalya Sector Industry Applicant Smit & Dorlas Koffiebranders B.V., Mijdrecht Recipient Flash Trade Import & Export Ltd, Ankara Start project 01 July 2007 End project 30 June 2009 Total budget EUR 750,000 (50 percent) funded by Ministry of Economic Affairs

Summary: Smit & Dorlas Koffiebranders produces high-quality coffee and supplies the catering industry (hotels and restaurants), based on a full-service business concept consisting of: - supplying various high-quality coffee blends and freshly roasted beans; - installing espresso machines for grinding beans and making fresh coffee; - supplying related coffee products (sugar packets, milk, china, etc.); - providing services for repair and maintenance of the espresso machines. Smit & Dorlas Koffiebranders is experienced in delivering their products and services to hotels and restaurants in the Netherlands and the Netherlands Antilles. In the Netherlands, Smit & Dorlas Koffiebranders has a stable market share of 26 percent. As the Dutch coffee market is saturated, there is a need for internationalisation at Smit & Dorlas Koffiebranders. Positioning their full-service business model in the Turkish market is a major business opportunity for the company. Flash Trade has an extensive business network in Turkey and is experienced in successfully introducing innovative products and concepts into the Turkish market, like Honeywell. During the past few months, Flash Trade has already explored the Turkish market, using the brand name Smit & Dorlas. Some major hotel chains in the region expressed interest in the Smit & Dorlas concept. Turkey is traditionally considered a tea- and coffee-consuming country. Besides the unique Turkish coffee, the inhabitants mostly drink instant coffee. At present, the market in Turkey is in transition; drinking coffee is becoming a social event outside the home and espresso is gaining in popularity. Some companies anticipated this development and are now experiencing rapid expansion of their (takeaway) coffee corners in Turkey, where they mainly serve espresso. Smit & Dorlas will produce the coffee on the local Turkish market and supply the catering industry. Coordination, logistics and the financial administration of the Turkish activities will be done from the main office of Smit & Dorlas in the Netherlands. By implementing the project, Smit & Dorlas will maintain its strong position on the international coffee market, which is managed from the company headquarters in Mijdrecht. Results • At least two (2) significant contracts signed with local hotel chains and a detailed training plan; • Professional sales & distribution organisation in Antalya and trained staff (sales office with sales representatives, a

showroom and a distribution organisation for coffee and coffee-related products); • Professional repair and maintenance organisation and trained technicians (fully equipped repair workshop for retooling and

maintenance of the espresso-making machinery and a mobile service team); • Small-scale production facility and trained production staff (a pilot plant for stocking, roasting and packing espresso coffee

for the Turkish market); • Commercial exploitation of the pilot factory and full service organisation.

150

Turkey

PSOM7/TR/2/4 Establishment of an EU-accredited pesticide residue testing laboratory in Antalya

Location Antalya Sector Industry Applicant TNO-Blgg AgriQ B.V., Wageningen Recipient LabEN Laboratuvar End. Kim. San. Tic. Ltd Sti., Antalya Start project 01 August 2007 End project 31 May 2009 Total budget EUR 231,375 (50 percent) funded by Ministry of Economic Affairs

Summary: TNO-Blgg AgriQ is a recognised international laboratory specialised in food safety in general and pesticide residue testing on fresh produce in particular. The combined effect of the European supermarket’s preference for year-round supplies of fresh produce, and the resulting international sourcing practices, as well as the need to assure high standards of food safety and quality, has led to an increasing demand for AgriQ’s services to horticultural export-production regions outside the Netherlands. Producers and exporters of fresh fruits and vegetables will have to be able to demonstrate compliance with EU food safety standards and supermarket quality systems in order to become “licensed to deliver”. This includes the regular submission of pesticide residue test reports prepared by an independent and internationally accredited laboratory. Turkey, particularly in the Antalya area, is rapidly becoming one of the main suppliers of fresh fruits and vegetables to markets in northwestern Europe, especially in the period October – April/May. The demand for residue tests is likewise increasing. Currently, the accreditation and certification of existing Turkish laboratories (public and private) are not in line with the demands of the main fruit and vegetable importers and retailers in northwestern Europe. To comply with quality systems such as EurepGAP, BRC, etc., buyers of Turkish produce require the residue tests be performed by accredited laboratories. To meet the increasing demand for residue testing in Turkey, AgriQ recently developed a collaborative arrangement with the Turkish partner LabEN. This cooperation entailed the sampling and pre-testing treatments to be done by LabEN in Antalya, and the actual testing and reports by AgriQ in Wageningen. In order to effectively and efficiently meet the increasing demand for residue tests in Turkey, AgriQ and LabEN seek to set up a joint venture performing testing in Antalya, as per the requirements of buyers in northwestern Europe in terms of scope and accreditation. Setting up this joint venture is part of the AgriQ business growth and consolidation strategy to become more directly involved in residue testing in most of the horticultural production regions outside of the Netherlands. In this way, AgriQ can maintain its strong position as a reference laboratory and residue information centre. At the same time, the joint venture can effectively and efficiently respond to a growing need for improved and internationally certified residue testing in the growing Turkish export-oriented horticulture sector. AgriQ foresees additional turnover from compiling a database with information on pesticide residues worldwide, combined with data on national limits for residues, enabling TNO to advise exporters & traders to choose the optimum destination for their produce. Results • Joint venture established, registered and licensed; • Laboratory equipped and staff trained in performing residue tests; • Laboratory ISO accredited; • 1,250 Tests performed in the new laboratory during a full horticultural season.

151

Turkey

PSOM7/TR/1/6 Aegean organic asparagus

Location Manisa Sector Agriculture Applicant Lenders B.V., Kessel (Limburg) Recipient Salkim Tarim Urunleri San Ve Tic Ltd Sti, Manisa Start project 01 January 2008 End project 31 December 2009 Total budget EUR 524,122 (50 percent) funded by Ministry of Economic Affairs

Summary: Lenders B.V. specialises in growing leek and asparagus plants. Lenders is continuously searching for new market opportunities for its products. Besides production in the Netherlands, Lenders has already set up production of leek plants in Morocco and Portugal. Turkey seems a very promising market for asparagus and asparagus plants. Although asparagus are known in Turkey, they are not grown by local farmers because there is a substantial lack of knowledge on how to grow them. Due to the warmer Turkish climate, asparagus grown in Turkey can be harvested from the beginning of March until the end of April (before most of the competitors). In the Netherlands and other asparagus-growing Western European countries, the asparagus season runs from mid-April until the end of May. Asparagus production in Turkey therefore creates an additional preseason market for Lenders. Salkim Tarim Urunleri San Ve Tic Ltd Sti is specialised in organic production of dried fruits and has multiple certifications for organic growing and production. Both companies decided to start a joint venture for pilot production of organic asparagus on a 40 hectare plot. The asparagus will be grown in Turkey and exported to and sold in the Netherlands. Results • Establishment of a joint venture between the consortium partners; • Establishment of the pilot production; • Knowledge transfer and training programme for technical and managerial personnel and local farmers; • Fully operational pilot production; • Sales of 50,000 kilogramme of high quality asparagus during the project period, with a total turnover of at least

EUR 218,178.

152

Turkey

PSOM7/TR/2/6 Introducing advanced gear technology

Location Istanbul Sector Industry Applicant G.T.A. (Gear Technology & Applications) B.V., Someren Recipient Pakin A.S., Istanbul Start project 01 January 2008 End project 31 December 2009 Total budget EUR 716,715 (50 percent) funded by Ministry of Economic Affairs

Summary: Gear Technology & Applications B.V. (GTA), the applicant, manufactures various toothed products including hardened gear wheels. The major clients of GTA are equipment manufacturers and, more specifically, producers of rotary offset printing presses, semi-conductors, packaging and agricultural machinery, etc. To complete its present product range and responding to the growing market demand for high quality gear wheels, GTA and Pakin A.S. decided to establish a joint venture in order to set up an advanced gear technology workshop for manufacturing of labour-intensive high grade grinded toothed products in Turkey. These products are currently not produced by either GTA or Pakin A.S., but are of strategic importance both for GTA’s market in Western Europe and for the emerging local and regional market which the joint venture aims to supply. The hardware investment includes CNC equipment (gear grinders), a milling centre and measuring equipment and will be purchased new. Results • Establishment of the joint venture; • Building for the workshop renovated, delivery and installation of hardware; • Recruitment and training of employees, training of local suppliers; • Commercial production, ISO certification; • Additional turnover of 560,000 Euro at G.T.A. during the project period.

153

Turkey

PSOM7/TR/2/.. Cooperation between umbrella organisations in Turkey and the Netherlands to stimulate investments and trade by Dutch SMEs in Turkey

Location Turkey Sector Industry (Programmatic tender) Start project 01 November 2007 End project 31 December 2010 Total budget EUR 1,600,000 (100 percent) funded by Ministry of Economic Affairs

Summary SME-project The Dutch Consulate General in Istanbul and the Dutch Embassy in Ankara noticed poor public image and insufficient knowledge among Dutch companies about doing business in Turkey. This perception hampers business relations between Turkish and Dutch companies and underestimates the real business potential in Turkey for the Netherlands. In consultation with the Turkish counterpart, it was decided to implement measures to reverse this negative trend, by establishing a strong network in and with Turkish interrelated business support organisations. The aim for the coming years is to boost the Turkish-Dutch business relations in at least the traditionally strong Dutch sectors where growth is currently flat and therefore lags behind. To reach this aim, 5 projects will be started:

Projectnumber: Project title Contractor Recipient Budget

PSOM7/TR/2/90 Strengthening the capacity of the Turkish Export Promotion Center

BMB Mott Mac Donald IGEME 349,296

PSOM7/TR/2/91 Dutch - Turkish cooperation scheme in the Turkish Shipbuilding Industry

De Goede Ree, together with HME en VNSI

GISBIR 311,661

PSOM7/TR/2/92 Develop an action plan for the Turkish Investment Support and Promotion Agency and stimulate investments by Dutch companies in Turkey

Ecorys Nederland ISPAT 205,500

PSOM7/TR/2/93 Develop some extra case studies to implement the action plan developed

Larive ISPAT 75,000

PSOM7/TR/2/94 Cooperation between the Dutch and Turkish Chambers of Commerce

Dutch Chamber of Commerce

TOBB and local Turkish Chambers of Commerce

594,169

Total budget 1,535,626

154

Turkey

PSOM7/TR/4/1 Clean waterways in the Bosporus area, a demonstration of equipment for early detection and recovery of oil spills

Location Istanbul Sector Environment Applicant Kampers Scheepskonstruktie B.V., Puttershoek Recipient Istanbul Metropolitan Municipality, Department of Environmental Protection and Development,

Istanbul Start project 01 December 2007 End project 30 November 2009 Total budget EUR 959,900 (100 percent) funded by Ministry of Housing, Spatial Planning and the

Environment

Summary: The project will reduce damage to the maritime ecological environment caused by oil spills in the Black Sea region, including the Bosporus. The specific objective of the project is to demonstrate effective technologies and know-how for maritime oil spill detection and recovery, to the responsible governmental agencies in the Bosporus region. Kampers Scheepskonstruktie B.V. (Kampers), the applicant of this project, has developed a sweeping arm system for oil spill recovery. The Dutch partner Seadarq B.V. produces electronic spill detection systems. Both Dutch companies, together with Meke, a Turkish marine environmental protection service company, decided to demonstrate the sweeping arm system to the Department of Environmental Protection and Development of the Istanbul Metropolitan Municipality, which is responsible for the water quality in the Bosporus area. This department will prepare two vessels for this project; one for oil recovery and one for oil detection. The environmental pollution in the Bosporus is caused by two main sources: an increasing number of large tanker accidents and the illegal dumping of bilge water, ballast water and solid waste formed during normal activities of ships. Results • Establishment of a joint venture between Kampers Scheepskonstruktie B.V., Seadarq B.V. and Marine Environmental

Protection Services Ltd; • Two vessels of the Department of Environmental Protection and Development of the Istanbul Metropolitan Municipality will

be outfitted: one for oil spill detection and one for recovery; • Information and marketing campaign, targeting the Bosporus and the Black Sea region; • a. Commercial operation of equipment to detect and remove oil spills; • b. Sales through the joint venture of one (1) sweeping arm system from Kampers, five (5) detection systems from Seadarq

and the services of Meke with a total value of EUR 1,930,000; • c. 2,000 m3 of oil/water mixture recovered; • d. reduction in the number of oil/water spills detected of 20 percent, in comparison to the number of spills detected in the

first half year of operation. Parallel project A parallel project involves the realisation of an onshore detection unit and oil/water separator, which includes a barge for containing the oil/water mixture. For this purpose, the individual project partners will contribute to the parallel project by investing financially in the entire system and by providing technical assistance towards Turkish harbour employees of the Department of Environmental Protection and Development of the Istanbul Metropolitan Municipality.

155

Ukraine

PSOM7/UA/1/2 Closing the fresh fruit circle part 1: 'Value added activities for Fresh Fruit supply to the Kiev retail sector'

Location Kiev Sector Agriculture Applicant Cool Fresh International B.V., Barendrecht Recipient Evroservis, Kiev Start project 01 August 2007 End project 31 July 2009 Total budget EUR 670,000 (100 percent) funded by Ministry of Economic Affairs

Summary: The applicant, Cool Fresh International, and the beneficiary, Evroservis, are planning to set up a production facility for the sorting, packing and refrigerated storage of fresh fruit. Currently Evroservis is purchasing fruit from Cool Fresh International and delivering it to the supermarkets without sorting or packaging. As the Kiev retail market is developing rapidly and Western supermarket chains like Eurobilla, Metro, and Lidl are becoming more active in the market, demand for high value-added logistical services, such as product display/presentation, consumer packaging for fruit products and food safety, is likewise increasing. Due to the beneficiary’s lack of sophisticated equipment and poor storage facilities, the project partners are presently unable to supply their clients with sorted and pre-packed products. It is expected that turnover growth will slow down if this demand for higher quality services is not met within a reasonable timeframe. Cool Fresh International specialises in the purchasing of contra-seasonal fresh fruits worldwide. In other words, they can guarantee constant year-round supply of grapes, for example. As Evroservis purchases more seasonal fruits directly, it allows them to offer supermarkets a complete assortment. With the newly-formed joint venture, the project partners will be able to manage the entire fresh fruit category for their Kiev supermarket clients and maintain their current leading position by adding sorting, repackaging in smaller quantities and refrigeration to their current activities. The Dutch interest in the project lies in all sales to the joint venture from contra-seasonal fruit occurring through Cool Fresh International. Therefore this project will mean extra revenue to the Dutch entity and ensure that the most important market for Cool Fresh International will not only be maintained but also expanded. Results • Founding of a joint venture; • Hardware delivered and installed; • Production and sales with a minimum of EUR 800,000 (in four (4) months).

156

Ukraine

PSOM7/UA/2/2 Setting up a supply chain for wheelchairs in Ukraine

Location Lviv Sector Industry Applicant Wheels Over Europe B.V., Silvorde Recipient Wheels over Europe LLC, Lviv Start project 01 August 2007 End project 31 January 2009 Total budget EUR 490,000 (100 percent) funded by Ministry of Economic Affairs, own investment in parallel

project EUR 500,000

Summary: Wheels Over Europe B.V. is a subsidiary of an existing holding company, Ludgerus Beheer B.V., specialised in wheelchair manufacturing and marketing since 1956. The core business of Wheels over Europe B.V. is focused entirely on the development, production and sales of a new generation of wheelchairs: the "O4”. It is a wheelchair with an organic shaped frame on four (4) wheels. The O4 has an attractive and remarkable design, is light, flexible and is highly manoeuvrable. Furthermore, the O4 is customised for each individual user. The O4 is currently assembled on small scale in the Netherlands, and has recently been introduced on the market. Potential customers are extremely positive about the O4 wheelchair. However, most medical national health services in Europe consider the O4 wheelchair too expensive. A study revealed that the production costs can be reduced to an acceptable level for these public health services by producing essential parts of the wheelchair in Ukraine instead of Germany and Switzerland, as is done presently. Ukraine has the technical know-how, low labour costs and is close to the European market. Recipient Wheels Over Europe LLC is a 100 percent subsidiary of Wheels Over Europe B.V.. Wheels Over Europe LLC will be responsible for the production of the heavy elastic fabric used in the seats, the bending of the ergonomic frames and the upholstering of the frames. Wheels Over Europe B.V. will handle the final assembly and customising of the wheelchairs in the Netherlands, where the wheelchairs are outfitted to suit the individual needs of wheelchair users all over Europe. Results • Formal partnership established with the Lviv State Enterprise for Motion Means and Prosthesis; • Eight Ukrainian employees recruited and trained in basic techniques; • Production machines installed and operational; • 400 Wheelchairs (semi-finished products, not yet customised) produced for assembly in the Netherlands.

157

Ukraine

PSOM7/UA/1/4 Ginkgo Biloba food supplements from the Ukraine

Location Berdichiv Sector Agriculture Applicant Nederlandse Bereidingsapotheek B.V., Barendrecht Recipient Agroholding Berdichivskij, Berdichiv Start project 01 January 2008 End project 31 December 2010 Total budget EUR 744,800 (100 percent) funded by Ministry of Economic Affairs

Summary: Within this project, the partners want to start a Ginkgo Biloba tree plantation. From those trees, the leaves are harvested and dried. The dried Gingko Biloba leaves are used worldwide as herbal medicine, in medicinal tea and food supplements and this is supposed to be good for the blood circulation, asthma, bronchitis, amnesia, skin disease, anxiety etc. The PSOM project looks to plant 50 hectare with 250,000 one year-old trees. Already in year one, leaves can be harvested, although only after a period of approx. five (5) years does the tree reach its full capacity. The harvest will be done manually. After harvesting the leaves are dried and crushed. Most of the harvest will be delivered to the parallel project where food supplements and teas will be produced. Results • Establishment of joint venture; • 250,000 Ginkgo biloba trees planted and drying facility established; • Recruitment and training of personnel; • Production of 28,800 kg dried leaves. Parallel project The parallel project consists of setting up a profitable factory producing Gingko Biloba products. The dried leaves from the PSOM project will be ground into powder to serve as raw material for the production of food supplements. Both a pill production line and a teabag production line will be installed. The production will be HACCP certified. The pills (food supplements) are mainly aimed at the Western European market, the tea for the local Ukrainian market.

158

Ukraine

PSOM7/UA/1/5 Rapeseed Oil Production in Ukraine

Location Kishchentsy Sector Agriculture Applicant Postma Oliehandel B.V., Tytsjerk Recipient Tov "Kishentsky", Kishchentsy Start project 01 January 2008 End project 31 December 2009 Total budget EUR 750,000 (100 percent) funded by Ministry of Economic Affairs

Summary: The project applicant Postma Oliehandel B.V. sells and distributes biodiesel. The project partner in Ukraine is LLC Kishchentsy, which is a Ukrainian company owned by Dutch investors and managed by a Dutch crop production specialist. This crop production farm currently grows 2,000 hectare of the required high quality 00-variety rapeseed. Currently, the produced rapeseed is sold on the international market. Prices for rapeseed oil are rising because of the increasing demand. The production of rapeseed in the Netherlands is very limited, because the cost of production per hectare is high compared to countries such as France and Ukraine, where the land resources are abundant and the cost of land is much cheaper than in the Netherlands. In Ukraine, rapeseed production is increasing rapidly, but the varieties used are not very suitable for the oil the Dutch market requires. Most of the rapeseed produced in Ukraine is brought to refineries in Hungary, Poland and Switzerland for conversion into biodiesel, which is then exported to countries like Pakistan and India. The European market buys only 00-variety rapeseed. During the project, the consortium partners look to produce substantial quantities of rapeseed oil of this high quality 00 in Ukraine, for further refining into biodiesel in the Netherlands. Postma Oliehandel B.V. will sell and distribute the final product. Results • Setting up the joint venture; • Importing and installing the oil press; • Training of staff and operational oil pess; • Production of rapeseed oil and cake and export of the oil to the Netherlands. Parallel project With the purchase of additional machinery for the production, harvesting and drying/cleaning of rapeseeds, Kishchentsy farm expects to further improve production efficiency and also to improve the rapeseed yields per hectare on the present area of 2,000 hectare. In addition, this machinery will facilitate the expansion of the cultivated area. The following machinery for rapeseed production will be purchased: precision sowing machine, self-propelled sprayer, dryer/cleaner for grains, telescope loader and a tractor.

159

Ukraine

PSOM7/UA/2/5 Production of professional clothing in Ukraine

Location Krasni Okny Sector Industry Applicant De Berkel B.V., Varsseveld Recipient ProfiTys Ltd., Tysmenytsia Start project 01 January 2008 End project 30 June 2009 Total budget EUR 447,475 (100 percent) funded by Ministry of Economic Affairs

Summary: De Berkel B.V. was established in 1948. The goal of the company is to produce and sell workwear and hospital clothing. Until 1975, production was located in The Netherlands. Since 1975, part of the production has been relocated several times: to Malta, Sri Lanka and later on to Poland, because of low labour costs and transport lead time. The Dutch hospital market increasingly asked for custom-made products. In 1990, Teamdress Stein in Hamburg became the new owner of De Berkel. Teamdress Stein removed all production from Malta and Sri Lanka to Poland. From then on, De Berkel focused completely on marketing & sales (and no longer produced its own professional clothing) and started to buy the ready-made garments from Teamdress Stein. In 1998, Teamdress Stein once again took the decision to relocate production. This time, two sewing factories were set up in Moldova and Ukraine (Profitys) on CMT (Cut, Make, Trim) basis. After 2005, it became more and more difficult to find enough seamstresses in Moldova, due to the fact that after Romania's accession to the EU, many Moldovan people moved to Romania and further abroad. Teamdress Stein had to further outsource part of the production to Ukraine and intended to do this together with Profitys. Meanwhile, in July 2004 all shares of Teamdress Nederland, of which De Berkel is a subsidiary, were transferred from Teamdress Stein Hamburg to Mrs. Ute Stein. A management buyout is foreseen, to the management of De Berkel, in the very near future, as the current owners Mr. and Mrs. Stein will retire soon. To operate independently from Teamdress Hamburg, De Berkel needs to re-establish its own sewing factory. The company will set up a new production system, in which seamstresses will be able to manufacture all parts of a product, instead of only one, which has been the common approach for a long time. The current market demands workwear in small quantities and high quality, which results in a production time of 50-60 minutes per piece, instead of 20 minutes. To be able to fulfil the requirements, anti-bacterial, flame-retardant cloth is used, which requires special processing. These developments force De Berkel to look for a low-cost workforce that can be trained in a large variety of skills, and deliver the full range of products the clients requires in time. As in the western part of Ukraine - where Profitys is located - employees are hard to find, it was decided to start anew in the southern part of Ukraine, just 20 kilometre from the border with Moldova, in the village of Krasni Okny in the Odessa Oblast. This region is not well developed and for this reason many potential seamstresses are available. Seamstresses will be trained according to the high quality standards of De Berkel. Staff will be taught in an on-site school for seamstresses in Krasni Okny, so they may be able to produce according to the high Dutch quality requirements.

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Results • Establishment of the joint venture; • Purchase and renovation of the building; • Transport and installation of the machinery; • Training of the seamstresses; • Production and sales. Parallel project In the parallel project, a cutting department, embroidery department and a labelling department will be established. The total investment in these departments will be EUR 450,000, to be funded by the consortium partners. Schooling of the Ukrainian employees at the subsidiary in Poland or Moldova is included in this amount.

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Ukraine

PSOM7/UA/3/1 Development of a modern bonded warehouse and logistics centre in Lviv, Ukraine

Location Lviv Sector Transport Applicant E. van Wijk Romania B.V., Giessen Recipient E. van Wijk and Moya Logistics Llc., Lviv Start project 01 January 2008 End project 31 December 2009 Total budget EUR 749,225 (100 percent) funded by Ministry of Economic Affairs

Summary: The applicant E. van Wijk Romania B.V. has already established a joint venture in Ukraine with Moya Logistics Llc. since late 2004. The joint venture, named E. van Wijk and Moya Logistics Llc., will be the recipient in this project. The joint venture is a transport company. When the cooperative agreement started, the joint venture had seven (7) trucks; by late 2007 this number increased to twenty (20) trucks. E. van Wijk Romania B.V. and E. van Wijk and Moya Logistics Llc. intend to develop their activities further and create a modern logistics centre, consisting of a bonded warehouse operation with additional logistics services in Lviv. The project includes the construction and operation of approximately 1,000 to 1,500 square metre bonded warehouse, designed to efficiently store and distribute goods according to international standards. Results • Final design of the warehouse; • Building of the warehouse and getting all necessary permits; • Purchase and installation of hardware for the warehouse; • Recruitment and training of personnel; • Start up and operation. Parallel project The purpose of the parallel investment project is to establish a DAF truck service centre (TSC) in the Lvov region through which modern and preventive maintenance in the road transport sector will be introduced, carried out and promoted. This project has a budget of EUR 900,000 funded by the consortium partners.

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Brazil

PSOM07/BR/21 Establishment of Amazon rainforest canopy and river eco tourism and research

Location Amazonat Jungle Lodge Ltda, Itacoatiara Sector Tourism Applicant Intercapital B.V. Recipient Amazonet Jungle Lodge Ltda Start project 01 January 2008 End project 31 December 2009 Total budget EUR 964,590 (50 percent PSOM contribution)

Summary: Applicant, Intercapital B.V. in Haarlem, is an investment/participation company with interests in the tourism sector in various countries. It currently holds 60 percent of the shares in the recipient, Amazonat Jungle Lodge, an ecological resort located 160 kilometre east of Manaus. Amazonat Lodge targets the tourists looking for an authentic jungle experience, and is situated in a protected forest reserve. It consists of a base camp with comfortable cabins, a swimming pool, restaurant and library/internet facilities, in the middle of a natural jungle environment. At 1.2 kilometre distance, a 'jungle survival camp' allows groups of visitors to stay overnight in hammocks in the rainforest, and fully enjoy the rainforest ecosystem. Recently a floating lodge with ten (10) double bedrooms was built and moored at an island in the nearby Urubu river. In order to attract more tourists to its Lodge, and to further differentiate itself from other eco-resorts in the region, Amazonat and its parent company Intercapital, decided to invest in a new activity, that would enhance the thrill and provide more (scientific) information for the tourists interested in a real direct contact with Nature. This will be achieved by setting up - a "top-of-the-trees" canopy walkway system, where visitors can enjoy the excitement of walking through the tree tops at 30 m above the jungle ground, exploring the unique ecosystem; - a hotel-river-boat with eight (8) double cabins, where tourists can engage on 4-5 day river tours exploring the waterways deep in the forest; - and a research centre and exposition area, where tourists can learn about the Amazon fauna and flora, directly from scientists and researchers. The third partner in the project, research organisation PIATAM, will be responsible for the implementation of the research centre, and set up an exposition area where research results can be displayed and presentations given to the visitors of Amazonat, adding content to the eco-tourism products. At the lodge, accommodation will be constructed to house up to five (5) junior researchers/students and two (2) senior researchers/supervisors. They will study the ecology of the project area, especially by using the canopy infrastructure and the river-hotel boat for their observations and sampling. Results • Project inception, facility design, environmental impact study, cooperation agreements; • Establishment of Research and Exposition centres, setting up of Canopy and River research programme; • Canopy walkway infrastructure; • River exploration infrastructure; • Business development, training of guides, eco tourism programmes, promotional activities.

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Development effects

on knowledge transfer In 2007 Amazonat started hiring the services of Mrs R. Moroa of Piatam to train staff (most of whom have had very limited formal education) in the English language, basic business economics and general education on hygiene and attitude towards nature and tourists. For the purpose of the PSOM project, the staff will be trained in fields like canopy access, maintenance and rescue for canopy walkways, guided canopy tour training, river boat crew training, and management and marketing training.

on employment Direct employment generated by the project is estimated to be 14 fte. Indirect generated jobs are estimated to be another 5 fte.

on impact environment Amazonat is motivated to minimise its impact on the environment and to contribute to nature protection. Positive measures taken are: - The lodge and permanent canopy towers will be constructed using only FSC certified wood. - Special water treatment installations will be included in the project to make sure that only clean sewage effluents will be discharged. - A low impact access trail will be laid out so that the canopy roof is not opened and disturbance to nature is minimised. - Both guides and visitors will be instructed and closely monitored not to inflict any damage to the natural environment they visit. - Amazonat’s approach of small groups and geographical spreading of activities will keep visitor concentrations low. - In cooperation with Piatam, the local population will be motivated to protect the valuable forest resources. - Regularly, new satellite images will be purchased to be able to monitor the status of the project area. - Publication of research results on biodiversity and related topics will raise interest and awareness.

on chain The investment activities will generate temporary income for the region, as the building of the suspended walkways, research centre and new hotel boat, will al be performed by the local community. On a permanent basis, the increase in tourism will generate jobs in the areas of transport and supplies (food and other consumables).

on women (positive) Amazonat has an explicit policy of preferential hiring of female employees. Many women in its employment are single parents without alternative income. It is expected that 30 percent of the new to be contracted work force will be female.

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Brazil

PSOM07/BR/23 Development of production of Recycled Eco Fibre in Ananindeua, Brazil

Location Ananindeua Sector Industry Applicant Wed. J. Reef B.V., Goor Recipient Victoria Regia Exportadora Ltda, Ananindeua Start project 01 January 2008 End project 31 October 2009 Total budget EUR 1,199,183 (50 percent PSOM contribution)

Summary: Applicant, Reef Hout B.V., is a family owned timber company, based in the Netherlands. Its core business is the supply of wood to civil engineering projects and the building industry. Recipient, Vitória Régia Exportadora Ltda started operations in 2001 as a trader of processed timber for both the domestic and foreign markets, but currently, the key activity became the processing of timber, mainly the manufacturing of fine-finished hardwood flooring. The objective of the pilot cooperation project is to set up a production chain for Wood-Plastic composites. The core equipment of the plant is an extruder that will produce the woodlike base material, consisting of sawdust, plastic residues and natural fibres. The product is water resistant, and therefore an excellent substitute for hardwood in construction activities or garden applications. Traditionally each 10 m³ of living trees, result in only 1.5 m³ of end product (in the case of flooring, for example), due to unavoidable losses in the sawing, shaving and milling processes. By utilising saw dust -that normally is wasted- to make the composite product, the yield is more than doubled. This results in a much lower demand of raw materials and leads to significant savings for the natural forest. The utilisation of saw dust, formerly considered waste, is therefore an important contribution to the protection of the environment. A new joint venture will be established, and the new plant will be located on the recipients premises. Results • Project inception, setting up a joint venture; • Factory completed, including all buildings and equipment; • Staff contracted and trained, supply channels & quality control developed; • Business development, regular production started. Development effects

on knowledge transfer The technology of Wood Plastic Composite extrusion is relatively new to Brazil, especially to the Para Region. Moreover, new skills for the region lay in the sustainable way of doing business in the project, combining efficiency with responsible use of resources.

on employment Direct employment generated by the project is estimated to be 35 fte. Indirect generated jobs are estimated to be another 70 fte.

on impact environment - The business will have a positive impact on the sustainability of the timber industry as it significantly reduces the need for virgin timber from forests. - The project uses waste streams of recycled plastic and saw dust, so the use of primary raw materials is decreased and the residues are not burned (less CO2 emissions). - The project will use FSC certified wood.

on chain The project will use substantial amounts of recycled plastic which will be bought from local recycling companies. Therefore it will stimulate the recycling business in Brazil.

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on women (positive) Currently, in Brazil, the work force of a timber processing plant is dominantly male, due to the fact that work usually requires physical efforts. Nevertheless, the project will focus to involve female personnel as much as possible, in line with the company policy in the Netherlands.

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Colombia

PSOM07/CO/02 Construction of first module of a modular floating dry-dock at Navtech S.A. Shipyard

Location Cartagena de Indias, Estado Bolivar Sector Transport / Infrastructure Applicant Damet Marine B.V., Rotterdam Recipient NAVtech S.A., Cartagena de Indias Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,498,577 (50 percent PSOM contribution)

Summary: Applicant, Damet Marine B.V. in Rotterdam, started its activities in 1990 as a trader in (old) ships for the demolition market. It was the main supplier for a demolition company in Cartagena, Colombia, owned by a consortium of four (4) local steel mills. This company ceased its operations five (5) years ago and the facilities were purchased early 2004 by the recipient, Navtech SA, a new company set up in Cartagena by the same shareholders of Damet Marine (the Dalmeijer family), with the intention to restart the demolition business. Although both companies have the same owner, they are independent from each other and there is no formal group connection. During the process of applying for a 'demolition permit', it became apparent that the same operating permits and concessions were required for ship demolition as for shipbuilding/-repair. Also it became clear that there was a strong and increasing demand for ship repair services in the region, and so the idea was born to focus on large ship repair with the options of green demolition and ship building. Due to the economic growth worldwide, demand for sea transport has increased considerably. Old ships are being kept in operation much longer, requiring extra maintenance, repairs and conversions. Insurance and international safety regulations require ships to dry dock at four (4) to five (5) year intervals. As a result of more efficient loading and unloading operations, as well as reduction in number of crew on board, there is not sufficient time to carry out proper maintenance during regular trips, resulting in a substantial growth in demand for ship repair by shipyards. In 2006 Navtech has started ship repair and conversion activities by doing afloat repairs alongside its 500 meter of berths. Although a large portion of repairs can be done afloat, at present most ships have to go to other port/dry-dock facility for their dry docking. Ship owners prefer to do the compulsory or needed dry docking and the afloat repairs at the same shipyard for the obvious convenience and time restraints. Consequently, it is of strategic importance for Navtech to have its own dry dock. The pilot project is aimed at building the first module of a floating dry dock, which will ultimately consist of six (6) modules and be able to dry dock ships of up to 30,000 tons DWT. This covers the majority of ships navigating in the Caribbean area, needing maintenance and repairs. Results • Establishment of joint venture and obtaining government licenses; • Design & engineering plan and approval of Classification Society; • Construction of dry-dock finalised; • Recruitment and training of staff; • Marketing plan and project completion.

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Development effects

on knowledge transfer All workers that never before worked in the yard will get a H&SE training before they are allowed to work on the yard.

on employment With the first module of the dry dock in operation, 25 additional jobs (five (5) direct and twenty (20) indirect) will be created on the yard. Two years after the project, with two (2) modules, the yard personnel will double from 25 to 50. The staff of Damet Marine B.V. will increase as well as the capacity of the dry-dock increases.

on impact environment The impact of the project on the environment will be positive. All operations in the shipyard are done according to European environmental standards. The nature of the joint venture will give a positive effect to the environment as the project will be an example on how to operate a business in an eco-friendly way. All steel waste is sorted at the shipyard site and shipped to local steel mills for recycling. This is not only eco-friendly but also profitable. The floating dock will have no impact on marine currents or ecological habitats.

on chain Navtech S.A. currently does business with many small to medium sized enterprises, including steel workshops, mechanical workshops, transport companies, engineering companies, electrical engineering companies, civil engineering companies, local steel distributors, parts and equipment suppliers. Besides, due to the nature of a shipyard business, having international visitors (clients, superintendents) and crews accompanying the ships, the local economy benefits by means of increased business for hotels, restaurants, taxi’s, etc. With the dry dock in operation, demand for all these services will increase proportionally. It is estimated that this will result in an additional thirty (30) jobs.

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Colombia

PSOM07/CO/21 Flower Compositions in Colombia (FCC)

Location Bogota Sector Agriculture Applicant Westplant Interieurbeplanting V.O.F., 's-Gravenzande Recipient Guirnaldas S.A., Bogota D.C. Start project 01 January 2008 End project 31 December 2009 Total budget EUR 1,490,500 (50 percent PSOM contribution)

Summary: Applicant Westplant Interieurbeplanting VOF provides interior and exterior planting for businesses. Westplant still has a small nursery but mainly buys plants from other growers. In 2004 Westplant incorporated the company Pseudofix. This company specializes in preserved whole plants, flowers and combined decorations. Westplant markets the products of Pseudofix as an alternative when the circumstances make it impossible to place real plants. Recipient Guirnaldas has developed a unique procedure to preserve flowers. These are sold as single flowers or petals mainly in Japan, but also Europe and the United States of America. The main product the company produces is rose heads. The flowers which Guirnaldes preserves are mainly produced in its own greenhouse although flowers are also bought from small growers in the region. The partners intend to set up a joint venture for the production of flower arrangements made of preserved flowers and greeneries. The joint venture will buy preserved flowers produced by Guirnaldas, but will produce its own greeneries which will be preserved using the technique of Guirnaldas. Accessories such as vases and decoration material will be bought to complete the arrangements. The new joint venture will be situated next to the current location of Guirnaldes outside Bogota. It will need to make investments in a nursery for growing greeneries and a production site where the flower arrangements will be made. Results • Completed inception phase; • Operational flower arrangements production facility; • Recruitment and training; • Marketing and design; • Pilot production. Development effects

on knowledge transfer The employees responsible for the making of arrangements will receive training from designers. Also training will be given to employees in the printing unit as well as at management level and marketing.

on employment The joint venture will recruit 86 employees during the pilot project. Indirectly five (5) new jobs will be created, mainly at flower producers who supply Guirnaldes. Two (2) years after the pilot 125 people will be employed by the joint venture.

on impact environment Efforts will be made to comply with international standards for environmental protection. Achieving MPS certification for the nursery will be a goal of the project.

on chain Because Guirnaldes buys flowers for processing from other growers these will profit if production of Guirnaldes increases.

on women (positive) No specific measures will be taken as it is expected the majority of new employees will be women.

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Ecuador

PSOM07/EC/02 Handling & processing fresh cut flowers for sea container transport

Location Village of Tabacundo Sector Transport / Infrastructure Applicant Oudendijk Import B.V., Aalsmeer Recipient Flores de Cotacachi S.A. - Florecot, Quito Start project 01 July 2007 End project 31 December 2009 Total budget EUR 638,303 (50 percent PSOM contribution)

Summary: Applicant Oudendijk Import B.V. was established in 1945 and is still a family run business. The core business is import and export of cut flowers. Over the last few years they have also taken up breeding of flowers in South Africa, Australia and Ecuador. Oudendijk established the flower company Explor Exports in Ecuador together with Flores de Cotacachi S.A. (Florecot), recipient in the PSOM project. In 2005 Explor was taken over by Oudendijk and renamed Flora United Farms. Florecot and Flora United are neighbouring farms that share the same packing facilities. Together they supply a wide variety of Hypernicum to Oudendijk. From their companies in South Africa Oudendijk is currently importing twenty (20) sea containers per year. The quality of these flowers is no different from those imported by air. Sea freight has as an advantage that the costs are half of those of air freight. With the experience acquired from the transport from Africa, Oudendijk set up a number of trial container shipments from Ecuador. For these trails Hypernicum from Florecot were used. After the trial and error period Oudendijk and Florecot now want to set up a chain for the transport of Hypernicum by sea. In order to be able to transport by sea-container it is crucial to keep the flowers at a constant temperature of 2 degrees Celsius during the entire transport chain as well as during the processing and preparation. At the beginning of this chain no cold store is available in Ecuador which is necessary to enable transport via sea. The goal of the project is to establish a joint venture which will build and run a distribution facility where flowers will be collected, processed and prepared for sea container transport. Flowers for the new facility will initially predominantly be supplied by Florecot and Flora United Farms (part of the Oudendijk Group). With the flowers from these two (2) companies two (2) 40-foot reefer containers per week will be transported (360.000 stems). The project foresees in the establishment of a cooled packing facility with bunching line, cold storage as well as a docking station for reefers at the farm and a cold-truck. Furthermore MPS and BASC certification are part of the project. After the pilot it is the intention to increase the capacity to four (4) containers per week and finally eight (8) per week. This will mean an expansion of the quantity of buckets and trolleys and the facility with extra cold store and an extra cold-truck. Furthermore the facility will serve other growers after an increase in capacity. Results • Joint venture established; • Distribution facility ready for use and equipment installed; • MPS and BASC certification, personnel recruited and trained and business development. Development effects

on knowledge transfer All employees will receive on the job training. Where applicable employees will be trained in MPS guidelines and a BASC representative will support and train managers supervisors and employees. in BASC regulations. For the operation of the bunching line the producers of the equipment will train all employees working with the equipment.

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on employment 40 employees will be contracted during the pilot of which twenty (20) will be new employment. In the two (2) years following the pilot a total of 140 people will be working for the joint venture. Indirectly the project will lead to additional employment for 150 during the pilot and 1.500 two (2) years after the pilot.

on impact environment The new facility will be MPS certified guaranteeing environmentally friendly production. Furthermore the project will reduce pollution as transport by sea is less polluting than by air.

on chain After the pilot the partners will seek to increase the volume of flowers transported. To increase this volume, flowers from smaller growers can be processed by the facility. This will increase the income of these growers and will give them access to the European market. Furthermore the project can serve as a demonstration project for the flower sector in Ecuador.

other During the project a new soccer pitch with a double stand of 53 meters wide will be build. The new facility will furthermore have a new kitchen and canteen where employees will receive a daily meal free and a new fully equipped first aid facility.

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Ecuador

PSOM07/EC/03 Growing tissue culture material to tubers for pot plant Zantedeschia in El Quinche, Ecuador

Location El Quinche Sector Agriculture Applicant Sande B.V., ‘t Zand Recipient Sande Ecuador Cia Ltda, Quinto Start project 01 July 2007 End project 31 December 2009 Total budget EUR 1,264,600 (50 percent PSOM contribution)

Summary: Sande B.V. is a breeder and supplier of Zantedeschia, based in 't Zand, the Netherlands. They deliver tubers to cut flower growers all over the world and pot plant growers in Europe. Furthermore Sande develops tissue material for new Zantedeschia breeds. Recipient Sande Ecuador Cia Ltd is located in the village of El Quinche and produces Zantedeschia cut flowers from tubers supplied by Sande. In order to gain access to the United States of America market the partners aim to set up a joint venture for the production of Zantedeschia tubers. Tubers grown in Europe are too expensive for the United States of America market and furthermore it is not possible to deliver Zantedeschia potted plants to the United States of America due to import restrictions. The new joint venture will grow tubers in Ecuador that consequently can be supplied to growers in the United States of America at a competitive price and a better quality compared to the largest competitor in the United States of America. In this way, the companies will gain access to the United States of America market. The new joint venture will use 5 hectare of land to set up the project on premises next to those of the recipient. At this location a cold and dry storage as well as a handling facility will be built. Initially 2 hectare will be covered by Spanish greenhouses while on the other 3 hectare planting will take place in open soil. During the PSOM project the area will be increased to 12 hectare. The project duration of the project will be thirty (30) months. This time is required to complete the entire chain of production of bulbs from tissue culture material. Results • Start up, establishment joint venture; • Construction of dry and cold storage; • Training and investment in machinery; • Delivery of tissue material; • Business plan. Development effects

on knowledge transfer Employees will be trained in cultivation, treatment and storage. This training will be performed by the manager of Sande Ecuador and by the cultivation manager of the project.

on employment During the project 36 new jobs will be realized. Two (2) years after the project 55 people will be employed by the joint venture.

on impact environment The project will use steam instead of chemical for preparation of the land. No other environmental aspects play a part in the project. MPS and Veriflora certification will be obtained.

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other Employees will be able to visit free of charge the small clinic at the premises of Sande Ecuador, where a nurse will be present every working day. A doctor will be available once a week.

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Ecuador

PSOM07/EC/21 Four Season Quality Ecuador: retail-ready processing of premium roses

Location Cotopaxi Pinchincha Sector Agriculture Applicant Four Seasons Quality B.V., De Kwakel Recipient Deijl Cargo SA, Quito Start project 01 January 2008 End project 31 July 2009 Total budget EUR 1,036,430 (50 percent PSOM contribution)

Summary: Applicant, Four Season Quality B.V. ('FSQ') from De Kwakel, is a company specialized in the processing of premium quality roses for retail. Roses are imported mainly from Ecuador, processed in the Netherlands and sold to customers throughout Europe. The recipient of the project is Deijl Cargo S.A., an Ecuadorian handling agent of flowers. Within the proposed project these partners will collect and process premium roses for export in Ecuador. At this moment the quality of processing differs heavily among the 35 different small suppliers of FSQ. As a result, rejects, excess foliage and stems are unnecessarily transported to the Netherlands. This means that only for FSQ every week 1,800 kilogramme of air freight is wasted. Apart from this, FSQ is looking for ways to increase market access for Ecuadorian roses and deliver them directly to other (future) flower hubs such as Dubai. In order to achieve this it is necessary to perform quality management and processing closer to the growers than in the current situation. Implementation of the project is expected to last eighteen (18) months. It includes the foundation of a joint venture between FSQ and Deijl Cargo. This joint venture will establish a collection and processing facility for premium, retail-ready quality roses near the current suppliers in the Cotopaxi area. On 0.5 hectare of land a plant will be built which houses a cold store, processing and binding machines and a loading area for trucks. Currently, pre-processing takes place at the farms of the growers. In the new situation, growers will deliver their unprocessed roses to the new facility. Here they will get direct information on rejects or quality issues. Roses that are rejected by FSQ can then still be sold at other markets, in particular in the United States. Furthermore, growers will not anymore be confronted with adjustments to their invoices for roses that are transported all the way to the Netherlands only to be rejected and thrown away. In addition, the feedback on quality issues will enable growers to improve the quality of their product, which in the end will result in a better product with higher margins. Intensive training and guidance in quality improvement and certification will be offered to the growers by the project partners. After processing, the retail-ready roses will be transported to FSQ in the Netherlands or, in a later stage, to flower traders in Russia, Dubai and the United States. Results • Business establishment; • Store, office and internal transport; • Production equipment, maintenance and Q-management training programme; • Production, certification, social investment and communication. Development effects

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on knowledge transfer Raising the quality standard of Ecuadorian roses by sharing the market demands with growers is one of the key elements in this project. A capacity building programme will be set up for selected suppliers in which they are trained in quality control and monitoring. Furthermore, suppliers will receive training on how to be compliant with FSQ standards and working practises and how to work towards certification by Fair Flowers Fair Plants (FFP) on social and environmental issues. Local staff will receive on the job training. Middle management will be sent to the Netherlands for a training at FSQ. All staff will be trained in procedures in order to achieve ISO and FFP certification of the processing facility.

on employment Direct employment at the moment of finalisation of the project is estimated at eighteen (18) new, full time jobs. Two years after the project this number will have grown to 36.

on impact environment The effect on the environment will be positive. The project will limit the transport of excess weight, such as foliage and rejects, which are currently transported all the way from Ecuador to the Netherlands. This reduces the CO2 emission per transported flower.

on chain The effect on the chain will be positive since the project will, on the longer term, create additional demand for roses. The project will make it possible to directly deliver to new markets and as such creates market access for the growers that supply the processing facility. It is expected that the number of supplying growers will increase after the project, which extends the chain effects. Furthermore, all services and installations will be procured locally. This includes transport, maintenance and the supply of packing materials.

on women (positive) The impact will be positive. In the Management Team at least 50 percent of the positions will be filled by women. In the lower positions women will also occupy at least 50 percent of the jobs.

other A first line clinic will be available to all employees and dependants. Basic food supply will be available to all employees. A child day care centre will be established. The joint venture will extend its financial support to a child care/orphanage centre in Ecuador.

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Guatemala

PSOM07/GT/01 Mayan Pride - A Small Growers Project

Location Entrada A Santo, Sacatepequez Sector Agriculture Applicant Nature's Pride B.V., De Lier Recipient Ghortex SA, Sacatepequez Start project 01 July 2007 End project 31 December 2009 Total budget EUR 1,166,810 (50 percent PSOM contribution)

Summary: Applicant, Natures Pride B.V. in De Lier, was founded in December 2000 and is a trader of a wide range of fresh exotic fruits and vegetables, directly imported from over eighty (80) countries. The company exports to 22 European countries and employs 75 persons. Nature’s Pride works with a selected range of quality suppliers worldwide and a growing number of articles are sold under the Nature’s Pride brand name. A modern facility is being built in De Lier, with fully equipped ripening facilities and semi-automatic packing station, enabling it to supply any possible exotic fruit, ready to eat and packed according to customers needs. The recipient, Ghortex S.A. in Chimaltenango - Guatemala, is a private company that has been exporting vegetables to the United States of America and Europe since 1993. Ghortex supplies different products such as mange tout, sugar snaps, fine beans, baby vegetables, Chinese, Indian and Thai vegetables, American beans, squashes and eggplants to these markets. Currently Ghortex exports around 6,000 tons/year of vegetables. The company employs forty (40) people, of which 70 percent are women. The partners have identified a growing demand for exotic vegetables, including snow peas and sugar snaps, on the European market. They consider the production of these vegetables against low costs and under ideal climatological circumstances by using the capacity of small indigenous growers in the highlands of Guatemala as a good business opportunity, in which the knowledge and experience of both applicant and recipient are complementary. As a consequence, project partners propose to establish a (25/75) joint venture that will organize groups of indigenous small growers (± 100) in the Chimaltenango area to produce snow peas and sugar snaps under contract farming. Besides extensive training in production techniques, quality management, food safety and traceability procedures, farmers will be supplied with infrastructural benefits, like drip irrigation systems, for their land. The joint venture will build a modern Packing House with cold storage and forced air cooling system. A refrigerated truck will guarantee uninterrupted cold chain of the products, which will be marketed and sold by the applicant through its extensive European network. Results • Establishment of joint venture and selection of pilot farms/outgrowers; • Installation of the first plots and training of selected farmers; • Establishment of first commercial exploitation; • Packhouse operational; • Business development. Development effects

on knowledge transfer The local growers involved in the project will receive extensive training in more advanced production techniques, optimal use of fertilizer, specific harvesting instructions, confined use of pesticides and the implementation of micro irrigation. These growers can consequently transfer this knowledge to other local farmers.

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on employment Project generates employment for 174 persons in Guatemala and five (5) in the Netherlands. Among these are 100 local growers while seventy (70) others will be involved in packing. Two (2) years after the project the total number of jobs is estimated at 255.

on impact environment Selected crops will function as natural fertilizers and reduce the concentration of artificial fertilizer needed. Soil erosion will be avoided by adapted growing techniques of increased planting density and planting in the direction opposite to the inclination of the soil. Degraded snow peas will function as cattle fodder, to minimize biological waste. The use of drip irrigation will improve water rentability up to 70 percent. The consortium will obtain EurepGAP certification, but will also strive to organic production, and realize an organic certification on the middle term.

on chain All inputs and secondary material will be bought from local SME's. Seeds are not available in Guatemala but will be bought in Honduras. Local carriers will benefit from increased shipment by air or sea container.

other The joint venture will pay hospitalisation insurance. Children in the community will receive gifts for special occasions (Christmas, Easter etc). At school, free meals will be provided by the joint venture. A part of the profit will be invested in community welfare projects to improve health care and children's education.

180

Guatemala

PSOM07/GT/21 Sustainable chain management for pre-finished pot plants of Beaucarnea in Guatemala

Location Teculután, Zacapa Sector Agriculture Applicant Corsa International B.V., De Lier Recipient Ornamentales B&G S.A., Guatemala Start project 01 January 2008 End project 30 June 2010 Total budget EUR 1,060,845 (50 percent PSOM contribution)

Summary: The applicant, Corsa International B.V., is an importer and producer of ornamental plants. The company is based in De Lier, the Netherlands. The Guatemalan company Ornamentales B&G SA is a producer of mainly Tilandsia xerographica plants on a farm near Teculután, Guatemala. In the proposed project, these two companies will set up a production and export chain for Beaucarnea recurvata pot plants. This initiative is a response to the problems posed by the current system in which canes are bought at different growers and coffee farms. This situation does not guarantee a consistent quality, volume or uniformity of the material provided, while these are essential conditions to supply Beaucarnea to larger European retailers. As a result, the market for Beaucarnea has been unstable both in price and in volume for many years, chasing away large retailers such as Ikea or Carrefour. The implementation of the project will last thirty (30) months. For the purpose of the project, a joint venture called Beaucarneas Mayas SA will be established in which both applicant and recipient will obtain 45 percent of the shares. The remaining 10 percent of the shares will be owned by Jeronimo Lancerio. Mr Lancerio will be responsible for the daily management of the project, which consists of the establishment of a pot plant finishing and export centre and two regional seed reproduction centres. The latter will supply a cooperative of small farmers that will grow the seedlings to canes. Consecutively, the plants are transported to the central production and export centre near Teculután with a 1.6 hectare greenhouse, where they will be prepared for export to the Netherlands. Plants will be transported by container to the EU in a pre-finished or finished condition and will spend only a very limited time under expensive greenhouse conditions in the Netherlands. The label ‘Mayamor’ will be developed in order to market the plants as a differentiated product, while certification under Fair Flowers Fair plants or Rainforest Alliance will guarantee environmental and social responsibility. Results • Business Establishment; • Establishment of the Pot Plant Production and Export centre; • Establishment of the Beaucarnea seedling reproduction system; • Commercial production and business development. Development effects

on knowledge transfer Employees of the joint venture will be trained on processing and quality procedures, including on the use of growing substrates, potting, irrigation and traceability. The outgrowers will be assisted and trained in growing techniques and quality management.

on employment Direct employment at the end of the project will be 49 new, full-time jobs, while sixty (60) small growers will be contracted. Two years after the project the number of full-time employees of the joint venture will have grown to 69. The number of small growers will then have increased to ninety (90).

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on impact environment The joint venture will implement the socio-environmental certification programme Fair Flowers Fair Plants (FFP) or certification of the Rainforest Alliance. Furthermore, plants will be transported on reusable Danish trolleys instead of wooden crates. This means that no more Guatemalan wood will be used for the production of crates that are regularly disposed as waste in the Netherlands.

on chain The project will have a significant impact on the chain since outgrowers constitute an important part of the project.

on women (positive) In both the regional reproduction centre as well as in the pot plant production and export centre, the majority of the employees will be women.

other Other development effects include the establishment of a medical room in the production and export centre. A doctor will visit at least once a week. Furthermore, the joint venture will set up a foundation which will contribute to the growers and workers involved. The foundation will be financed by a percentage of the sales of the project.

182

Guatemala

PSOM07/GT/22 Production and marketing of melons in Guatemala

Location San Nicolás Estanzuela, Zacapa Sector Agriculture Applicant Rijk Zwaan Export B.V., De Lier Recipient Fruta Mundial S.A., San Nicolas Estanzuela, Zacapa Start project 01 January 2008 End project 30 June 2010 Total budget EUR 900,000 (50 percent PSOM contribution)

Summary: The applicant, Rijk Zwaan Export B.V., is a global seller of seeds for professional growers with its headquarters in De Lier, Netherlands and has offices in over seventeen (17) countries. The recipient, Fruta Mundial SA, is a company located in Estanzuela, Guatemala, and is a grower of melons for the North American market. The project partner, Freshquest Inc., is an American trader specialised in fruits and vegetables from Guatemala and Honduras. In the proposed project, the three partners will make the unique selling point of the new melon variety Caribbean Gold visible in the market. In addition, new types of this variety will be developed. This investment decision is prompted by a number of developments: first, the recipient is suffering from growing customer dissatisfaction with the taste of melons. Traders often prefer a long shelf life at the expense of sweetness. As a result of lower prices, small and medium-sized melon growers need to find ways to distinguish themselves from the large growers like Del Monte or Dole. The applicant, on the other hand, sees momentum for increasing its market share in the melon sector, in particular by means of a new variety that has been developed by Rijk Zwaan, Caribbean Gold. The proposed project period is 24 months. It includes the establishment of a cooperation by means of a cooperation agreement. This cooperation will adapt the existing grading hall of Fruta Mundial SA and set up a special processing line for measuring the taste of melons by means of a so-called brix machine. The taste of the melon will be stickered on the product. The cooperation will develop the selection of two new types of Caribbean Gold, one larger melon for the industrial processing market and a smaller type for the European market. Furthermore, partners will set up a marketing and sales campaign through Freshquest to develop the unique selling point of the product and increase market share. Though the brix-machine is already existing, the use of this taste-indication for melons in retail is a new and innovative concept. Results • Establishment of the cooperation; • Installation of hardware and implementation of training programme; • Establishment of Unique Selling Point & Pesticide Reduction Programme; • Selection of new melon types and business development. Development effects

on knowledge transfer The project will positively influence the introduction of knowledge and technology, since it will present a new technological and marketing concept in the melon business. Though the brix-machine already exists, so far no producer has used this technology on a large scale to print the taste on each melon and use it as a marketing instrument. By making the taste transparent on sales level, this technology will enable small melon producers to differentiate their product from the bulk produced by Dole, Fyffes, Del Monte and Chiquita and generate higher margins.

on employment Direct employment at the end of the project will be 50 new, full-time jobs. All staff will be employed by the recipient.

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on impact environment Since the variety Caribbean Gold is aphid repellent, pesticide use is halved. As a result of this reduction, the influence of the project on the environment should be regarded positive.

on chain Positive. The impact on the chain is mainly to be sought in the fact that the project improves the positioning of Guatemalan melons in North America, which could benefit also other businesses in the sector. Partners are open to further dissemination of the concept. Apart from the brix-machine, most hardware will be acquired locally.

184

Honduras

PSOM07/HN/01 Piloting the production an export of prefinished tropical plants in Honduras

Location El Progreso Sector Agriculture Applicant Vinkaplant B.V., Aalsmeer Recipient Mabo Plants SA, El Progreso - Yoro Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,339,792 (50 percent PSOM contribution)

Summary: Vinkaplant B.V., the applicant, is an importer and exporter of seeds, tropical plants and related utilities. The company is based in Aalsmeer, the Netherlands, but it also holds its own production facility in Costa Rica and participations in other production companies in the Dominican Republic and Honduras. The Hondurese Mabo Plants SA, the recipient, is based in the municipality of El Progreso in the Yoro Department. The company grows and exports mainly Areca palms. In the proposed project, partners will produce eight (8) species of pre-finished, high-quality tropical plants in Honduras. This business opportunity is prompted by three factors: first, the applicant is facing increasing energy prices in Europe which force them to reduce costs. Secondly, Vinkaplant wants to ensure that quality demands of consumers are also met by overseas producers. And finally, they have identified increasing demand for certain new varieties. The proposal of the project, of which implementation will last 24 months, includes the establishment of a joint venture between Vinkaplant (50 percent) and Mabo Plants (50 percent). This joint venture will pilot the production and export of tropical plants on 10 hectare of earmarked land. On the land a 0.25 hectare glasshouse and a 1.5 hectare greenhouse will be constructed to serve as a nursery and production facility respectively. The species that will be produced by the joint venture will initially predominantly consist of Areca palms, Cyca's, Areca Catechu's, Euphorbia's and Rhapis palms. Plants will be transported to the EU in a pre-finished condition and will only need to acclimatise for a few weeks before being distributed to retailers. This reduces the time that semi-finished plants now have to grow under expensive, energy-consuming greenhouse conditions in the Netherlands. Another advantage is that some of the varieties introduced by the project are new to Honduras. Furthermore, transport of the pre-finished plants to the Netherlands will take place in steel crates instead of wooden crates, reducing waste and deforestation. In order to guarantee year-round supply it will be necessary for the partners to make follow-up investments to extend production facilities after project completion. Results • Establishment of joint venture between Vinkaplant B.V. and Mabo Plants SA; • Nursery plant operational; • Production of new varieties of semi-finished tropical plants set up; • Production of pre-finished tropical plants established; • Export and business development. Development effects

on knowledge transfer Management staff of the joint venture will be trained by staff of both the applicant and recipient. The joint venture's management will then provide on-the-job training to the new production and administrative staff. Training will mainly take place in Honduras. Selected clients of the applicant will advise on plant cultivation and quality aspects. External trainers will be hired for technical advice, for example on biological control measures.

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on employment Direct employment at the moment of finalisation of the project is estimated at 54 new, full-time jobs. This will grow to the number of 85 two (2) years after the project.

on impact environment In comparison to production of tropical plants in the Netherlands, no heating is required for the greenhouses. As a consequence, far less energy is used, which positively affects the environment. Furthermore, the joint venture will use galvanized, re-usable steel crates for transporting the plants, instead of wooden crates which are used at the detriment of Honduran forests and cause a waste problem in Europe. Partners will minimize the use of pesticides or other chemicals. The joint venture will obtain and implement the MPS-GAP certification, which includes requirements on, amongst others, substrate, land use, waste, storage, safety and hygiene.

on chain The joint venture will aim at purchasing food and transportation from the local community. By this it will create indirect employment for suppliers in the area.

186

Peru

PSOM07/PE/21 IQF Fruit and Vegetable Specialties

Location Huaral Sector Agriculture Applicant Delidor Delicatessen B.V., Almkerk Recipient Agro Industria El Vado E.I.R.L., Lima Start project 01 January 2008 End project 31 December 2009 Total budget EUR 1,500,000 (50 percent PSOM contribution)

Summary: Applicant, Delidor Delicatessen B.V. in Almkerk, was established in 1996 to set up agro-projects around the world. Recipient, Agro Industria El Vado E.I.R.L., was founded in Lima in 1997 for the production of marmalades. For this pilot project, a joint venture will be established between applicant and recipient. Peru is a large producer of vegetables and has a great potential for fruits as well. It is therefore surprising that, the Peruvian exports of frozen vegetables and fruit are limited to 30,000 t / year and concentrated on three (3) products only: asparagus, artichoques and mango. The production of frozen fruit and vegetables is not even a core activity on itself, but just a by-product of the exports of fresh products. Project partners see a large potential for the export of 1st grade fruit and vegetables, particularly regarding new products like strawberries, blackberries, raspberries, sugar snaps, snap beans, etc. For this purpose they want to build a modern processing plant, with rapid freezing equipment, an experimental production site (10 hectare) and training facility, where they will support 50-100 contract farmers, in producing the quality products they need. In the valley close to Huaral, 60 kilometre north of Lima, recipient has an option on a piece of land to build the plant and experimental cultivation site. The port of Callao is only 40 kilometre away over the Panamericana highway. The valley has thousands of hectare of fertile arable land, and a large number of farmers who can supply their crops to the plant under contract. Following the river upwards, an hour drive into the mountains, another farmers region is located, with a completely different microclimate. Here, other crops can be contracted, allowing for a diversification of the products the company can offer. This will result in a lower sensitivity to seasonal peaks in production, and give the employees more stability. Local farmers will be trained and EurepGAP certified. The selling of their crops is guaranteed by a contract. Furthermore the joint venture will place rapid cooling installations close to the main contracted farmers, so they can cool down their crops immediately after the harvest, increasing the quality of the end product. The facility will be fully certified for export to the United States and European markets. Results • Project inception, joint venture establishment, contracts with private farmers and construction permits; • Establishment of a Farm Service Centre with Demonstration fields; • Processing facility, with freezing, storage and packing infrastructure; • Business development, training of production staff and production of first 1,500 tons of frozen fruit & vegetables. Development effects

on knowledge transfer The operational plan foresees an extensive training programme aimed at the contract farmers, organised in clusters. This implies that at least fifty (50) persons will receive training on all aspects of cultivating vegetables. As these small scale farmers will also hire employees themselves, to work their land, it is foreseen that these farmers in their turn will also train their employees. Furthermore general management and business development oriented training will be given to the joint venture staff, and obviously the plant workers will be trained to operate the modern IQF equipment.

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on employment Direct employment generated by the project in the plant is estimated to be 25 fte for management & staff, and an additional 65 fte for employees in the factory. The latter are both fixed and seasonal positions, depending on the product being processed. Indirect generated jobs are estimated to be another 150 fte.

on impact environment Environmental effects are positive, especially with respect to water management. There is enough water available in the growing areas. Existing flood-irrigation will be (partly) replaced by drip and other water saving systems. In the plant, water saving is integrated in the processing lines by recirculation and counter current approach. Finally the process water will be cleaned in stages up till it is suitable to be re-used as irrigation water on the fields.

on chain The project is expected to generate around 200 fte of employment with contracted farmers.

on women (positive) The majority of the positions in vegetable/fruit processing plants are traditionally occupied by women.

188

Surinam

PSOM07/SR/02 Sustainable timber drying and bio energy generation, Surinam

Location BWWI Sawmill, Van Blommenstein Lake Sector Energy / Environment Applicant Jos Dennebos Exploitatie B.V., Wijhe Recipient Brokopondo Watra Wood International, Paramaribo Start project 01 July 2007 End project 30 June 2009 Total budget EUR 1,452,100 (50 percent PSOM contribution)

Summary: The Dutch applicant Jos Dennebos Exploitatie B.V. (35 employees) is company active in the production and trade of wood products and has been active in Surinam for almost ten (10) years. The local Surinam partner Brokopondo Watra Wood International N.V. (BWWI B.V., 65 employees) has permission to exploit trees which are still standing (after almost forty (40) years) in the Van Blommenstein lake, a lake formed for the Afobaka hydro plant. At the moment trees are cut by divers and brought to the sawmill which started operation in 2004 at small scale. Aim of the project is to install a waste wood fuelled electric power plant, and to establish drying kilns to dry the wood before it is sold. The project will be located on the premises of BWWI on the shore of the Van Blommestein lake, some 200 kilometre south of Paramaribo. The partners will set up a joint venture. The project will result in the establishment of wood drying chambers and a wood fuelled power plant and will result in an output of at least 2,300 m3/year of dried timber after two (2) years. The project will cover the costs for drying kilns and a wood fuelled energy plant, accompanied by equipment related training and technical assistance especially on the complete wood processing chain (from log to dried timber) and design and operation of the wood fuelled power plant. The joint venture will sell its woods products to Jos Dennebos B.V., who will absorb these products within its international trading programme. The total volume of the joint venture products form a small part of the total volume traded by Jos Dennebos International. The project will include a bio energy plant that will be a stand-alone unit with a capacity of 500 kilowatt-hour with power connection to sawmill and two (2) drying kilns. The drying kilns will have a total drying volume of approximately 400-500 m3. Drying kilns will be built locally with the delicate and important control systems coming from Europe. The project will also include a boiler house and a wood chipper for waste fuel preparation. Results • Inception and establishment of the joint venture; • Training; • Setup of energy plant; • Setup of wood drying chambers; • Commercial operation. Development effects

on knowledge transfer The project will train 26 persons with six (6) to twelve (12) people from the other sawmills or from the power authority.

on employment The project will create 26 direct jobs and forty (40) indirect jobs employed by BWWI and local suppliers.

on impact environment The project will have a positive impact on the environment. Waste wood fuelled energy plant are CO2 neutral.

189

Surinam

PSOM07/SR/21 Hedi Infra N.V. a powerhouse in utility services for Surinam and the CARICOM countries

Location Paramaribo Sector Industry Applicant Hedi Trading N.V., Capelle aan den IJssel Recipient Consulting Partners N.V., Paramaribo Start project 01 January 2008 End project 31 October 2009 Total budget EUR 1,469,791 (50 percent PSOM contribution)

Summary: Applicant Hedi Trading N.V. is a trading company of mainly electrical supplies. Hedi Trading has set up a warehouse in Paramaribo where it keeps supplies for Electriciteits Bedrijven Suriname (EBS), as EBS prefers to focus on its core business (electricity provision) and Hedi has better management of stock. Furthermore Hedi Trading delivers goods on a smaller scale from its warehouse (like transformers and cable) to other companies. Recipient Consulting Partners is a consulting engineering company and has been involved in numerous projects in Surinam in the electricity and water sector. Partner in the project is KAIM Infra. A small Dutch consultancy firm specialized in infrastructure and utilities, mainly water. Based on the experiences of Hedi Trading in Surinam it has come across situations in the construction and maintenance of infrastructure for utilities which can be improved. The goal of the partners is to set up a new joint venture which will be able to perform a number of tasks. Thereby making it possible to make available certain services and equipment which have in the past been supplied by foreign companies. These are: 1. The design of utility networks and installations and furthermore assembly of parts into tailor made and ready to install utility systems. 2. Making use of equipment for directed drilling and identification of leakages. The new joint venture will focus on two main areas, namely water and electricity. Results • Business development and setting up of joint venture; • Assembly hall, production equipment and software operational; • Waterworks equipment and capacity building; • Production, quality management, certification and communication. Development effects

on knowledge transfer Employees will be trained in the use of equipment such as guided drilling and water detection. Furthermore employees will be trained in the design of infrastructural networks as well as project management.

on employment The joint venture will create 43 jobs during the pilot project. Two (2) years after the pilot this will have increased to sixty (60) jobs.

on impact environment Reduction of loss of drinking water will reduce waste of water and energy for the production of water. Furthermore the project will lead to a more reliable supply of electricity. This will reduce use of environmentally damaging generators.

on chain Regional companies will benefit form the skills and tools provided by the joint venture. Less foreign consulting and construction companies will be needed for advanced construction of utility networks. Transport will be outsourced to local companies.

190

other The joint venture will introduce safe working standards according to VCA (Veiligheid, gezondheid en milieu Checklist Aannemers) and obtain an ISO 9000:2000 certificate.

191

Surinam

PSOM07/SR/23 Sustainable butterfly farming in Surinam

Location Lelydorperweg, Wanica Sector Other Applicant Berkenhof, Kwadendamme Recipient Neotropical Insects N.V., Paramaribo Start project 01 January 2008 End project 31 December 2009 Total budget EUR 591,285 (50 percent PSOM contribution)

Summary: Applicant Vlindertuin Berkenhof is the largest butterfly exhibit in Europe. The exposition area is 1,400 square metre. Here some forty (40) species from Asia, Africa end Latin America are kept. The exhibit is vested in a greenhouse which was expanded three years ago. Berkenhof buys pupae from different breeders in various continents which are shipped by express mail. This is a delicate process where timing is of vital importance. After arrival the pupae evolve to butterflies and set free in the exhibit. One of the suppliers of Berkenhof is Neotropical Insects N.V. of Surinam. This company was established ten (10) years ago by mr Eriks and covers 7 hectare where some twenty (20) species are bred. Furthermore, an area is reserved for the breeding of plants used to feed the caterpillars and facilitate reproduction of butterflies. There are also some small cages where butterflies that emerge from pupae too early to be exported are kept. The project partners want to set up a butterfly exhibit next to the current butterfly farm in Lelydorp. Improvement of the breeding facilities will lead to an increase in export of pupae whereby Berkenhof will be insured of a frequent supply of butterflies. Tourists and locals will be able to visit the butterfly farm and exhibit. This will make it possible to greatly increase the number of visitors. The current butterfly farm is not equipped to receive guests. Lastly the project aims to contribute to nature education in Surinam by establishing facilities on site at the butterfly exhibit. Results • Business foundation/project inception; • Upgrading of butterfly breeding facilities; • Establishment of butterfly exhibit including plant nursery; • Environmental education facilities established; • Business development. Development effects

on knowledge transfer The knowledge of setting up and running a butterfly exhibit will come from Berkenhof. Furthermore knowledge of plant cultivation and pest control will be upgraded. Also marketing, business administration as well as how to give guided tours will be trained.

on employment The project will lead to fourteen (14) new jobs. This will increase to eighteen (18) in two (2) years after the pilot.

on impact environment In order not to harm the caterpillars and butterflies only biological measures will be used to combat pests and diseases. Due to the educative aspect this project will have a positive impact on the environment. All visitors will be acquainted with Surinam wildlife.

on chain No real chain effect except in the construction of the new exhibit and greenhouse for which local contractors will be used.

on women (positive) Most new employees (70 percent) will be women.

192

Surinam

PSOM07/SR/25 ICT Business Consultancy and Software Development in Surinam

Location Paramaribo Sector ICT Applicant Qualogy Holding B.V., Rijswijk Recipient Qualogy Suriname N.V. i.o., Paramaribo Start project 01 January 2008 End project 31 December 2009 Total budget EUR 1,490,000 (50 percent PSOM contribution)

Summary: Qualogy Holding B.V. is an ICT company specialized in supplying Enterprise Recourse Planning (ERP) systems. These systems make it possible to incorporate processes in companies like supply chain management, financial accounting, HRM, and general project administration. Qualogy furthermore provides hosting services. Hereby server space is rented so that clients that cannot run certain software on their own systems can make use of the capacity on the server of Qualogy. Recipient is Qualogy Suriname N.V. i.o. which has recently been established. Qualogy Holding B.V. has gained experience of working in Surinam through an assignment for Staatsolie. Based on this experience it has become clear that the ICT development of companies and government institutions in Surinam is far behind that of the current standard. Most ministries have no ICT at all and when it is present it is at a low level. When ICT services and software of a higher level are needed, foreign companies and consultants are used at great financial cost, without providing after sales service and taking all knowledge with them. Qualogy intends to supply services and tailor made ICT solutions to Surinam companies. Hosting services will be supplied. Results • Formalizing cooperation, renting a building; • Pilot location establishment; • Recruitment and training of personnel; • Consulting services realised. Development effects

on knowledge transfer All employees will be trained in the use of Oracle, Java, Database administration etc. Qualogy will strive to recruit local graduates from the technical college and provide them with high level training courses.

on employment The project will create 37 jobs during the pilot and in the two years after the pilot an additional twenty (20) employees will be hired.

on impact environment The environmental impact will be nil.

on chain The project will lead to increased employment and income for people with a higher education. This will boost the local economy. Furthermore the project will replace foreign consultants by locals. Ultimately the project will increase the investment climate and additional University courses can be developed.

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