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8/8/2019 ADA - Business Partnerships in ADC, SlovakAid 29 9 09
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Public Private Cooperation in Austria
Workshop: Public-Private Partnership in ODA
SlovakAid, September 29th, 2009
Hans-Jrg Hummer, ADA, Head of Business Partnership Office
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Public Private Cooperation WorkingDefinition
Development Agency teams up with private businesses tojointly conceive, finance and implement projects with
developmental relevance.
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Early
Efforts: Private
Economic Partnerships
1999 to 2004 Austrian Development Cooperation (ADC), still within the
Austrian Federal Ministry for Foreign Affairs, ran program called Private
Economic Partnerships:
Ministry together with private agencies tried to broker and co-financeprojects of companies investing in developing countries
Additional funding by EC through ProInvest Program
No real priority, moderate success, as only handful of projects
implemented
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Institutional Reform and New Agenda
Establishment of ADA in order to consolidate scattered structure
of ADC and prepare for new challenges and trends
New political agenda to stress economic development and
increase participation of private sector
Revised goal: Reduction of poverty by promoting economic
and social development, aiming at a process of a sustainable
way of doing business and at economic growth
New approach: Activities to foster private sector cooperation
New partners: Private companies explicitly stated
Partnerships with private sector have sound legal basis
In 2004, a new institutional structure was created and new notions
were introduced by the Development Cooperation Act 2002/03
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NewImpetus and Set-Up
In 2004/2005 ADA made new efforts to step up public privatecooperation
Decision to make development partnerships with the private sector anew priority field of action
Acknowledged need to have recourse to external know-how fordevising and setting up a major program:
Consortium led by GTZ wins tenders and opens BusinessPartnership Office (BPO) in Vienna on behalf of ADA, detaching threefull-time expert staff (2006)
BPO and ADA jointly conceived new program, which BPOautonomously managed under supervision of ADA
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Business & Development Partnerships
In 2006, ADA and the Business Partnership Office launched two distinct
programs aiming at mobilizing private sector for conceiving, financing and
implementing projects in developing countries
Business Partnerships: Austrian/European businesses mainly cooperate with
companies in developing countries (B2B) to increase the competitiveness ofall involved and/or strengthen local SME
Development Partnerships: Austrian/European businesses mainly engage
with local public institutions to improve framework for business operations
Instruments: Both programs included support of up to 50% of costs to
Fact Finding Missions (up to 1,700) Feasibility Studies (up to 20,000)
(fully fledged) Partnership Projects (up to 200,000)
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Criteria and FiguresCore Criteria
Long-term commitment of Austrian/European business partner
Additional benefit for partner country beyond the companys core
business and project duration
Substantial co-funding by private partner (at least 50%)
Compliance with local laws and international conventions No distortion of competition
Focus on ADC priority regions
Key Figures
550 requests for information of mainly Austrian companies
42 projects or 9m worth of grants approved, about 15m worth of
private and 9m of third party contributions triggered About 40% of projects in SEE, 40% in Africa
Broad range of topics: energy, vocational qualification, (organic) farming,
textile, IT, building of local company clusters, health etc.
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Making it Work: Factors of Success
Conception Dialogue: Each project preceded by intensive
dialogue with private sector partners and substantial assistance
with writing proposal
One Stop Shop: Quick response capacity
Active pipeline building: BPO intensively seeks and maintains
contact with businesses and business organizations
Target group: Partners are usually small to medium sizedcompanies, highly innovative in terms of sourcing and/or
marketing
Qualitative characteristics of Austrian Public Private Cooperation
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Review: Program-E
valuationEvaluation by GPPI in 2008 considered program an overall success
and recommended its continuation, though with alterations:
Abolish distinction between Development- and Business
Partnerships, as it is not convincing and understandable
Emphasize project types building and strengthening of supplychains and investment based development activities which
prove rather sustainable, but mind type-related risks
Discontinue type consulting, as weak impact and sustainability
Emphasize economic feasibility of projects in selection phase by
means of external assessment
Keep bureaucracy minimal to respond to business needs To increase effectiveness, elaborate for each project-type an
impact-logic with type-specific indicators
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Redesign:B
usiness Partnership ProgramIn response to the evaluation, in 2009 the program was carefully
modified but not substantially changed:
Consolidation of program by shaping unified Business
Partnership Program
Strengthening of instrument Feasibility Study by explicitly
including possibility to develop and test the business case
Abolition of instrument Fact Finding Mission
Exclusion of projects based on one time provision of services
Redefined geographic outreach to all DAC-countries with
emphasis on ADC-priority countries
Simplification of guidelines, application forms, budgeting and
financial reporting
Explicit application ofde minimis rule for small subsidies
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Reorganisation:Integration of
BPO
From the beginning of the cooperation with GTZ/Planconsult it was
foreseen that ADA would by degrees absorb the relevant know-how
and fully integrate the program into its structures and procedures
February 2008: BPO physically integrated into ADA
Throughout 2008: ADA staff gradually taking over know-how
and responsibility
April 2009: ADA has taken over full responsibility for the
program
June 2009: End of phasing out of technical assistance
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Remaining ChallengesHaving successfully started up a Public Private Cooperation Program,
ADC still faces challenges:
Additionally strengthen monitoring and impact measurement
Devise new mechanisms for generating new projects especially in
sub-Saharan Africa, e.g. by enhancing match-making efforts
Devise and implement strategy for adapting the methodology of
Public Private Cooperation to local context by integrating Business
Partnerships with local companies into country strategies and
budgets
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Thank You for Your Attention!
Austrian Development Agency
Business Partnership Office
Zelinkagasse 2, 1010 Vienna+43 1 90399 2577