PSI project overview 2009 - Rijksdienst voor Ondernemend ... project overview 2009_1.pdf · PSI Plus Afghanistan The Palestinian Authority southern Sudan Burundi Sierra Leone More

Private Sector Investment

programme (PSI)

Project overview 2009

Colophon Contact Private Sector Investment programme (PSI) T +31 88 602 80 32 F +31 88 602 90 26 [email protected] NL EVD International Juliana van Stolberglaan 148 | 2595 CL The Hague PO Box 20105 | 2500 EC The Hague The Netherlands

Page 3 of 244

Index Africa 11

Benin 13 PSI09/BJ/21 Bridging the digital gap in rural Benin 13

Burkina Faso 17 PSI09/BF/01 La Générale Poisson (LGP) 17 PSI09/BF/02 Small scale biodiesel production in Leo, Burkina Faso 20 PSI09/BF/03 MaxiGrana: a collaborative innovation for a value added

sesame seeds production chain in Burkina Faso 24 PSI09/BF/21 Cashew nut kernels cracking plant in Burkina Faso 27 PSI09/BF/22 Burkina Primeur, sustainable production of onions and shallots for

the West African market 31

Burundi (PSI Plus) 35 PSIP09/BI/31 Introducing modular construction for high quality, affordable

housing in Burundi 35

Cape Verde 38 PSI09/CV/02 Shrimp farming on the Cape Verde Island São Vicente 38 PSI09/CV/22 An innovative and ISO 9001 certified manufacturing facility for

high quality, aluminium fenestrations in Cape Verde 40 PSI09/CV/23 Safe and reliable transport services for Cape Verde 43 PSI09/CV/24 Tilapia juveniles for tuna live bait on Cape Verde 47

Egypt 50 PSI09/EG/04 Quality controlled logistics & distribution of high quality fresh

vegetables & fruits for the domestic urban market in Egypt 50 PSI09/EG/21 MABA Retail: joint venture for the retail-packing and distribution of

ware potatoes in Egypt 53 PSI09/EG/22 Growing Radish in the Egyptian desert for the EU and CEE markets 56

Ethiopia 59 PSI09/ET/01 Blueberry cultivation in Ethiopia 59 PSI09/ET/03 Developing the market for protein rich soy products in Ethiopia 61 PSI09/ET/04 Breeding roses on the African continent 63 PSI09/ET/23 Pilot composting in Ethiopia: Soil fertility, Ecology and

Rural Development 65 PSI09/ET/25 LaserTech Ethiopia Ltd; Ethiopia's first recycling and

remanufacturing company of cartridges and toners 68 PSI09/ET/27 Farming for the future 71

The Gambia 74 PSI09/GM/21 Establishing local production of metal building and construction

materials in the Gambia 74

Page 4 of 244

Ghana 77 PSI09/GH/02 Vehicle Testing in Ghana 77 PSI09/GH/21 Volta Fruits: joint venture for Tropical Fruit Processing in Ghana 80 PSI09/GH/23 Establishing a high value certified production chain for extruded

floating fish feed 82

Kenya 84 PSI09/KE/03 Breakthrough in solar energy manufacturing in East Africa 84 PSI09/KE/04 Introducing seed based propagation in the Kenyan cut flower sector 87 PSI09/KE/05 Production and marketing of flower care products in the Kenyan

floriculture industry 90 PSI09/KE/24 Kipini Swahili Eco-lodge 93

Malawi 96 PSI09/MW/22 Establishment of a Diagnostic Centre in Malawi 96

Morocco 98 PSI09/MA/02 Integrated and organic production of young plants in

Northern Morocco 98 PSI09/MA/21 Tissue Culture Morocco 100 PSI09/MA/22 Environmentally friendly Zelliges from Morocco 104 PSI09/MA/23 The establishment of an EcoCert certified bio organic compost

plant to boost organic agriculture in Morocco 107 PSI09/MA/24 Introduction of UASB technology for decentralised wastewater

treatment in Morocco 110 PSI09/MA/25 TISLI Flowers: Extended peony production for Morocco 113

Mozambique 116 PSI09/MZ/21 Manufacturing of granulated compound fertilisers for the

Southern African markets 116

Namibia 118 PSI09/NA/02 Strengthen the chain of fruit and vegetable production at the

ORIP farm in Namibia 118 PSI09/NA/21 FSC certified charcoal from invader bush in Namibia 120

Senegal 123 PSI09/SN/01 The establishment of a specialised hospital laundry facility in

Senegal 123 PSI09/SN/21 Farm Machinery Rental 126

Sierra Leone (PSI Plus) 129 PSIP09/SL/01 Mechanised food crops production in the Northern Province of

Sierra Leone 129 PSIP09/SL/02 LPG bulk storage and distribution in Sierra Leone 132 PSIP09/SL/22 Establishment of a Medical Imaging & Diagnostics Centre in

Freetown, Sierra Leone 135 PSIP09/SL/23 Processing smallholder palm oil into toilet soap in Freetown

Sierra Leone 138

Page 5 of 244

South Africa 140 PSI09/SA/06 Development of a project company using mini excavators and

a network of small enterprises in the telecom and utility market 140 PSI09/SA/23 First stand-alone toolshop for thinwalled injection moulds in

South Africa 143

Southern Sudan (PSI Plus) 146 PSIP09/SD/31 Establishing modern printing services in Juba 146

Tanzania 149 PSI09/TZ/02 Eco Charcoal in Tanzania 149 PSI09/TZ/04 Mruazi heifer breeding unit 152

Uganda 155 PSI09/UG/04 Pilot production of generic veterinary medicines in Uganda 155 PSI09/UG/05 Pilot production of water-based paint and coatings in Uganda 157 PSI09/UG/21 Aloe Cure − Carefully the best 160

Zambia 163 PSI09/ZM/21 Zambia's first manufacturers of high quality woven polypropylene

bags 163 Asia 165

Afghanistan (PSI Plus) 167 PSIP09/AF/21 Good Agricultural Practices (GAP) centre for Afghanistan 167

Bangladesh 169 PSI09/BD/01 Introducing the production of PP / PE multi-layer wide width liners

and coatings for Flexible Intermediate Bulk Containers 169 PSI09/BD/02 E.G.T. Textiles Ltd, a joint venture for the production of wider width

jacquard mattress tickings 171

Indonesia 173 PSI09/RI/01 Lombok Sumbawa Flores Home Industries 173 PSI09/RI/04 Fresh cut, pre-packed and safe vegetables Convenience products

connecting Indonesian farmers to new markets 175 PSI09/RI/23 Indosoya Sumber Protein. A soya based processing pilot 177

Mongolia 179 PSI09/MN/01 Private University Hotel Management Institute of Mongolia 179

Nepal 182 PSI09/NP/21 Gandaki International 182 PSI09/NP/22 Golmagad Hydro Project 184

The Palestinian Authority (PSI Plus) 187 PSIP09/OT/21 Fair Trade organic ISO 22000 compliant olive processing for export

in Jenin, Palestine 187

Page 6 of 244

Thailand 189 PSI09/TH/01 Development, manufacturing and marketing of high-tech cryogenic

equipment 189 PSI09/TH/02 Tropical Shallot Planting Material 191 PSI09/TH/21 Production of vacuum over dried HVP's and reaction flavours

in Thailand 193

Vietnam 195 PSI09/VN/01 Pilot production of high value added chocolate decorations for

export 195 PSI09/VN/02 BRC certified rice vermicelli production with outgrowers in

Southern Vietnam 197 PSI09/VN/21 Saigon Port Training Centre 199

Yemen 201 PSI09/YE/01 Ancient traditions with a new technology 201 Central and Eastern Europe 203

Bosnia and Herzegovina 205

PSI09/BA/01 Innovative repair / assembly centre for return and overstock (consumer-household) goods 205

PSI09/BA/03 Plastic overmoulding technology 207 PSI09/BA/21 Establishment of a high tech CNC machines centre in

Bosnia and Herzegovina to serve the South-East European metalworking market 209

Georgia 211

PSI09/GE/01 Establishment of a decorative plant nursery 211

Kosovo 213

PSI09/K3/01 Galvanization in Kosovo: Establishment of a hot-dip galvanization facility in Kosovo for the production of high quality durable metal products 213

Latin America 215

Bolivia 217 PSI09/BO/21 Developing a reliable supply chain of quality wild cocoa 217 PSI09/BO/22 Piloting the generation of electricity and carbon credits through

gasification of Brazil nut shells and Pods at Cobija 221

Brazil 224 PSI09/BR/02 "Cerrado" Frozen Fruits Ltd: Modernization of Procurement and

Processing Facilities for exotic frozen fruit pulps in Carolina, Brazil 224 PSI09/BR/03 Project Production Peppers 227 PSI09/BR/21 Exotic mushrooms from Brazil 229

Honduras 232 PSI09/HN/21 Establishing the production and export of small indoor plants 232

Page 7 of 244

Nicaragua 234 PSI09/NI/01 Piloting the cultivation of fresh herbs for export in Nicaragua 234

Peru 236 PSI09/PE/01 Dairy Factory Peru 236 PSI09/PE/02 Introducing subsurface drip irrigation and organic asparagus

growing to Peru 238

Suriname 241

PSI09/SR/03 Establishing a Dedicated Maroon Wellness Centre 241 PSI09/SR/22 Strengthening of the Suriname Rice Industry 243

Page 8 of 244

Page 9 of 244

Dear reader, We are pleased to present the list of approved project proposals of the first and second tender of the Private Sector Investment Programme (PSI) in 2009. This PSI programme (formerly known as PSOM programme) aims to stimulate private sector development in developing countries and emerging markets. PSI provides companies with additional grant financing to enable innovative investments with local partners. In 2009, 52 countries qualified for the PSI programme, including fragile states for which the PSI Plus programme offers more favourable terms and conditions.

Albania Ghana Nicaragua

Armenia Guatemala Pakistan

Bangladesh Honduras Peru

Benin Indonesia The Philippines

Bolivia Kenya Rwanda

Bosnia and Herzegovina Kosovo Senegal

Brazil Macedonia South Africa

Burkina Faso Madagascar Sudan

Cape Verde Malawi Suriname

Colombia Mali Tanzania

Ecuador Moldova Thailand

El Salvador Mongolia Uganda

Egypt Morocco Vietnam

Ethiopia Mozambique Yemen

Gambia Namibia Zambia

Georgia Nepal PSI Plus

Afghanistan The Palestinian Authority southern Sudan

Burundi Sierra Leone

More than 200 applicants showed interest in the PSI programme in 2009. In total 101 successful applicants have been granted a PSI subsidy to seize the business opportunity they have identified in Africa, Asia, Central and Eastern Europe or Latin America. In this booklet you will find an overview of these innovative and at times unexpected projects, ranging from mechanised agriculture in Sierra Leone, a cardiac care clinic in Uganda, to processing of traditional sauces in Yemen, production of pig farming equipment in Moldova or a dairy factory in Peru. The brief descriptions of each project will offer insights into the purpose of the new business ventures as well as the impact they will have on the local economy.

Page 10 of 244

NL EVD International is proud to be able to assist entrepreneurs to continue to invest in developing countries and emerging markets in spite of the more difficult worldwide economic environment. The contribution of PSI projects to employment, knowledge transfer and economic growth is an important catalyst for private sector development as part of the development cooperation policy of the Netherlands. Thank you for taking time to explore the 2009 first tender results, Hidde van der Veer Unit Manager PSI

Page 11 of 244

Africa

Page 12 of 244

Page 13 of 244

Benin

PSI09/BJ/21 Bridging the digital gap in rural Benin

Location Six secondary cities in Benin (Djougou, Porto-Novo, Parakou, Natitingou, Oudiah, Bohicon)

Sector ICT

Applicant IGI S.A.L., Beirut, Lebanon

Local partner ISOCEL S.A.R.L., Cotonou, Benin

Start project 01 January 2010

End project 31 August 2010

Total budget € 1,499,508 (50% PSI contribution = € 749,754)

Goal of the project

ICT incubation and development of value added ICT services in 6 minor cities of rural Benin. Summary

The undersea glass fibre cable WACS links Europe with Africa up to South Africa, following the west coast of the continent. At every main city, a branch comes on land as is the case in Cotonou. From there on it continues inland. This glass fibre cable has been completely functional for some years now. The Beninese government policy for the last 3 years has been using this cable to provide broadband internet all over the country. Government and E-learning programmes are already started, but the necessary funds are missing as well as the infrastructure for the countryside. Isocel, one of the leading internet providers in Cotonou, has proposed to develop this market together with the applicant IGI, a large hardware and software provider from Lebanon, as a joint venture. As a pioneer in this market, the joint venture will have the unique opportunity to collaborate with Benin's ministry for ICT, which has launched a master plan to establish ICT community centres country wide and which has invited companies to participate in a pilot in 6 communities. As part of the pilot the joint venture will provide broadband wireless access network in 6 cities and operate and manage ICT community centres in buildings provided for by the government. Additionally the ministry will subsidize computer basic skill training as part of their curriculum for college students. This opportunity will provide the new joint venture with guaranteed revenues at the start of the project. In each community centre different activities will take place like basic computer skills education, sales of internet subscriptions, sales of used refurbished computers, internet café, sales of tailor-made ICT solutions for small businesses, NGOs and government institutions such as universities and ministries. After the start-up phase the joint venture intends to invest to expand the network into 8 other cities in Benin and offer the ICT community centre concept as a franchise formula to new entrepreneurs. The long-term goal is to create country wide coverage with this new concept. This project will speed up business between the rural areas and the rest of the world.

Page 14 of 244

Results

• Result 1 : Formation of the joint venture. • Result 2 : Project start up. • Result 3 : The project wide infrastructure development phase. • Result 4 : The ICT centres and Local Area Network set up phase. • Result 5 : ICT centres soft opening and business development. CSR aspects

Both partners adhere to a CSR policy which will also be applied in the joint venture. Some major items are: • At least 50% above minimum wages for all personnel. • A 42 hour work week with consequent payment of overtime. • Successful employees can become franchise company shareholder. • A full health care programme is provided for. • A workers council will be established with 5 members. • The company employee handbook is one of the most important communication tools

between the company and the employees. Not only does it set forth expectations for employees, but it also describes what they can expect from the company.

• ISOCEL has a skill based hiring policy, regardless gender or race. At middle management 5 over 7 employees are women at ISOCEL. At the joint venture the same policies will be used.

Impact

Long term economic activity

Turnover will be increased by increased sales of services in the 6 communities. Moreover the partners expect to invest in new geographical areas. The investment involved is approximately € 250,000 for each new community centre. In 2 to 4 years they intend to open another 8 community centres. The total investment will be € 2.0 million. The additional turnover will be approximately € 8.0 million. A bankable business plan will be developed to attract more or other financing means in addition to the company's revenues that they are able to invest in this development. The West African Development Bank has shown its interest in funding future roll-out of community centres.

Employment and working conditions

A total of 88 employees will be recruited for the pilot phase. This represents the core staff needed to run the operations and it is the joint venture's intention to create these jobs for a long period of time. The staff members will receive wages at least 50% above the Beninese minimum. The joint venture will provide continuous employee training programmes in order to create better employment opportunities to its employees. The joint venture will among others ensure health care, training and education and meals for its employees. The working conditions will be contracted and incorporated by using the employee manual as an addition to the employment contract. At the moment the majority of the personnel of Isocel joined them right from the start and did not leave. This is an important indicator for the working conditions and atmosphere. By interviewing some employees, the career possibilities with Isocel were mostly cited as very interesting.

Page 15 of 244

Transfer of knowledge The training programme is not entirely new to the country. Some advanced aspects of the course are however new to the country and certainly to the rural areas. In Benin and especially in the rural areas, training in ICT skills is unique. Furthermore through acquiring ICT skills and the availability of internet, individuals and SME are able to further develop their skills continuously through self-paced learning. The ICT community centres, the trainers and their staff will be able to boost future ICT economic activity in the rural areas. The ICT activities can be further used to upgrade practical business / industry / service relevant skills.

Chain effects The project will be deployed areas like Bohicon, Parakou, Djougou and Natitingou where cotton farming and cashew nut production is very important. The farmer organizations will be able to create local content and publish it on their own websites, which will give them a better exposure and access to new markets as well as dramatically increase their competitive position and time to market. Product buyers will also use the internet to communicate with clients and principles. A Dutch buyer of organic cotton from the north of Benin confirmed to us that the project will ease his operation largely. The project will support the government's vision is "to make Benin Africa's digital district". Its pillars are: e-government, e-business. The projects impacts fast track the governments strategic priorities in the key areas of Infrastructure, Human Resources, Contents, Competitiveness. Thus creating new job opportunities in newly developed sectors for the country such as E-accounting, E-monitoring, Survey questionnaires, Call centres, E-marketing, E-businesses.

Environment The joint venture will be using the old and discarded PC's to capture the potential customers to provide information access and IT tools to users in Benin, who would otherwise not be able to afford these computers. These second hand computers which are 2 to 4 years old still have over 5 years of useful life in a Benin setting. The joint venture will cooperate with IPAR (http://www.ipar.org/index.html) to ensure proper disposal of computers after their technical lifecycle.

Position of women In line with the gender policies of both partners, the joint venture will be an equal opportunity employer with a skill based hiring policy. Additionally the joint venture will try to boost a shortage of women in the ICT industry through the development of practical programmes designed to attract and retain women in the field. The joint venture will encourage women to enter the ICT industry and to enable women to achieve their full potential within their career. In line with the current ratio of the local partner the joint venture will aim to hire or train at least 50% women for middle management level positions. In Isocel actually 5 out of 7 department chiefs are woman, even the

Page 16 of 244

'boss' of the, all male, technical installers department is a woman! Due to better access to information (through the Internet) women may be able to empower themselves.

Other impact ISOCEL makes donations to schools, orphanages, and provides organizations such as the Rotary International Women's Club (IWC) with free Internet connection and computers. These donations are not related to the core business of the company. The joint venture will act likewise.

Page 17 of 244

Burkina Faso

PSI09/BF/01 La Générale Poisson (LGP)

Location City of Ziniaré (new industrial zone)

Sector Fishery / Aquaculture

Applicant Hesy Aquaculture B.V., Kwintsheul, The Netherlands

Local partner La Générale des Operations SA (LGO), Ouagadougou, Burkina Faso

Start project 30 July 2009

End project 31 December 2011


Goal of the project

This project aims at starting up fish production (100 tons per year) in Burkina Faso in a modern, sustainable way and to provide the artisanal fishermen community with fingerlings (300,000 per year). Summary

The project will develop a fish farm with a capacity of 120 tons tilapia per year for sale on the local market. The local production will reduce fish imports into Burkina Faso, a land locked country in the sahelian zone of West Africa. It will also contribute to the repopulation of open water bodies by the production and sales of fingerlings to local fishermen. For these purposes, a joint venture between Hesy B.V., a Dutch producer of turn-key fish farms, and LGO, a Burkinabe company, involved in general trade, is foreseen. The services and products to be delivered in this project include hardware (adapted equipment for reproduction and breeding infrastructure, water reuse and recycling technology, biological control) and know how (breeding techniques, low energy use and waste generation, reuse of production waste, hygiene and improved marketability). The project will be located at the industrial zone of Ziniaré, at 50 km from the capital Ouagadougou. This project will be the first intensive, sustainable fish farm in Burkina Faso. As fish is mainly imported from at least 1,200 km it is expensive and the quality and availability is not guaranteed. This project will assure both availability and quality of fish to the Burkinabe population. Results

• Result 1 : Joint venture established. • Result 2 : Production facilities established. • Result 3 : Employees contracted and trained. • Result 4 : First test production realized. • Result 5 : Production, sales, marketing and follow-up business.

Page 18 of 244

CSR aspects

Salaries are planned to be minimally 35% above official minimum wages. The personnel will be encouraged to form an independent association to defend their interests but also to run a social fund gradually made available by the company. Partners attach great importance to motivation of their personnel through income and career perspectives because of the large (training) investment they will put into these people. In this same rationale, a HIV / AIDS training will be offered to the personnel executed by a local hospital department. Child labour will not be tolerated. The working hours will comply with national laws and will not be in excess of 40 hours per week. Overtime will be voluntary and will not exceed 12 hours per week and will be always compensated at the legal premium rate. HACPP certification is not asked for in Burkina Faso, but the local company insists on getting this certificate because it is determined to set the example on food standards with the company. Impact


Within two years after the pilot has been concluded, the joint venture company will double the yearly production capacity from 120 to 240 tons per year investing in an additional production line at an estimated cost of € 750,000. The expected turnover will be roughly € 1.4 million (sales of 230 tons of fish and 2 million fingerlings). The joint venture will continue once the PSI pilot period has ended. More fish farms will likely be developed to meet the demand.


The project will employ 15 direct employees (of whom 4 on a high- or medium-level) during the project period. Two years after the pilot the joint venture will consist of 26 employees, of whom 6 on high- or medium-level. Salaries are planned to be minimally 35% above official minimum wages. Working conditions include a safe and hygienic working environment with first aid Medicare. Adequate steps shall be taken to prevent accidents and injury. Clothes, gloves and adapted shoes will be provided to the workers. Workers will receive regular health and safety training. Access to clean toilet facilities, potable water and sanitary facilities for food storage will be provided.

Transfer of knowledge All knowledge transferred during training sessions and on the job training is new for Burkina Faso. Some government researchers do have a, mainly theoretical, idea about fish farming, but the scale and technology proposed in this project is completely new to Burkina Faso.

Chain effects Three subcontractors are foreseen to be associated with this project on the long run. This includes transport and other logistic support as no cars are foreseen in the budget. A vast group of wholesalers and resellers will also profit from this project as well as numerous artisanal farmers who will have access to a constant supply of fingerlings.

Page 19 of 244

Environment An Environmental Impact Assessment will be requested by the Government of Burkina Faso before delivering the permits to build the farm. The project will put into place efficient water recycling systems to avoid water table pollution. The breeding technology that will be introduced will be clean. Tilapia is one of the few species cultivated that can be grown on pure vegetative produced protein. Most other fish farm species need fish meal and the production of those species could lead to depletion of natural fish stocks. The proposed Tilapia has no negative effect in this respect.

Position of women The project will specially benefit women in the sense that women are the traditional fish traders. By providing enough fish for the markets, the project will enhance their economic activities. The joint venture will favour employment of women. 60% of the project personnel will consist of women; especially for the de-multiplication process, breeding and harvest, women will be contracted. The director herself serves as a role model for Burkinabe women as a successful businesswoman, and that position will even be enhanced by this project.

Page 20 of 244

Burkina Faso

PSI09/BF/02 Small scale biodiesel production in Leo,

Burkina Faso

Location Leo and rural surroundings

Sector Energy: biofuels

Applicant Ageratec B.V., Oudenbosch, The Netherlands

Local partner Sahel Agribusiness & Invest SARL (SA&I), Leo, Burkina Faso

Third partner Mali Biocarburant SA, Bamako, Mali

Start project 01 August 2009

End project 31 July 2012


Goal of the project

Partners will set up a factory producing biodiesel based on Jatropha nuts, produced by at least 2,000 local farmers around the village of Leo in the south of Burkina Faso. Summary

Applicant Ageratec B.V., local partner Sahel Agribusiness & Invest and partner MBSA, will set up a joint venture company, Faso Biocarburant Leo SA (FBL), for the production of biofuel on the basis of Jatropha curcas L.. This crop will be produced by over 2,000 small farmers in Leo, Burkina Faso. Jatropha will be integrated in the existing parkland agro forestry farming system. Farmers will plant Jatropha trees on their own land next to their annual food crops and trees thus ensuring food security. The Jatropha nuts will be brought to rural collection points and pressed, where FBL collects the oil. FBL will install a biodiesel processing unit for the local production, processing and consumption of biodiesel. In total 41 people will be directly employed by the company, while 40 seasonal workers and over 2,000 outgrowers will gain an additional income as well as other benefits. Over 50 small and medium enterprises will be included. Farmers and extension workers will be trained in all aspects of Jatropha cultivation, processing staff will be trained in biodiesel production, and local management will be trained in business management. On the national level, consortium partners aim to set an example of a pro poor and pro environment commercial business for rural development. Biodiesel production does not yet exist in Burkina Faso. It will reduce expensive imports of petrodiesel, transported from the coast over a distance of 1,500 km, and will thus have a positive effect on the national trade balance and the global environment. Results

• Result 1 : Establishment of the joint venture. • Result 2 : Basic working conditions in place and first staff trained. • Result 3 : Farmers extension and tree planting. • Result 4 : Biodiesel production site ready and functional. • Result 5 : Commercial biodiesel production.

Page 21 of 244

CSR aspects

The partners are committed to implement a good CSR policy as they believe that this will lead to committed employees and to good business results. Free lunches and drinks will be provided to the employees and a canteen will be built with a separate part for women to take care of their children. HIV / AIDS training will be provided to all employees and free preservatives will be made available. A sound CSR policy will give FBL a good name and that will be important to assure that farmers continue to deliver nuts to FBL. The joint venture will therefore not only respect the official labour regulations of the country, but will also work according to the same standards that are used in the Netherlands. Employees will have a voice in the organization and participation in the social dialog because proactive employees with commitment to the business are highly appreciated. The farmers will become shareholder of the factory and the president of the farmer union will have a seat in the board of the company. The 3 consortium partners want to set an example on how to combine business, socio economic development and environmental benefits. The joint venture will assist SMEs, for instance in starting to make soap from glycerol (a by-product from the factory), in setting up a nursery or in becoming a seed dealer. Impact


The additional investments after completion of the PSI project amount to € 3.0 to € 4.0 million for expansion of the Jatropha biodiesel production in Leo and other areas in Burkina Faso. Burkina Faso has to import all its petrodiesel so the market will be unsaturated for high quality, cheap and environmentally friendly produced biodiesel. The expected turnover at the end of the project will be € 640,000. The expected turnover two years after ending the project will be € 2.7 million. This is due to the increase of production capacity of the trees. This turnover corresponds to over 3 million litres of oil / biodiesel. Apart from the core business, the joint venture also plans to be active in related subjects as applied research on the use of by-products of the Jatropha chain including biogas from press cake, soap making from glycerine and other feedstock for the factory. After the pilot farmers are invited to join the joint venture as shareholders, which is rare in Burkina Faso and elsewhere in West Africa.


Two years after the project, a total of 300 people will be employed by the joint venture. Staff that is directly employed by FBL will work under the international ILO conditions, including proper insurances and medical benefits, safe and clean working conditions, and education allowance for the children. Working conditions will be in compliance with the national labour laws, under long term contracts and with salaries that are 25% above the average market wages.

Transfer of knowledge A large training programme is part of this project as the transfer of knowledge is a very important for the success of this project. Subjects of the training are: use of good seeds, innovative nursery practices, new ways of planting, tree management, pest and disease control and so on. As no

Page 22 of 244

biodiesel is produced in Burkina Faso, the whole process including transesterification with the PE3000 as well as mobile pressing is new for Burkina (yet proven technology elsewhere).

Chain effects Over 2,000 outgrowers will be delivering Jatropha nuts to FBL. Results by MBSA in Mali showed a good revenue for farmers: an average income of FCFA 1,250 per day, which is nearly double the average income. A large group of SMEs which will benefit from FBL new activities are the rural private nursery owners. About 50 nursery managers are foreseen to be steady suppliers of Jatropha seedlings to the farmers of FBL. This will be in addition to the central FBL managed nursery. About 2 million trees will already be planted in the first year, steadily increasing in the years to come. The nursery managers will be trained by FBL. The private nursery managers will be given a loan that they can reimburse in seedlings. FBL provides a guaranteed offset of the seedlings. It is expected that this will boost their business and will enable them to diversify their nurseries with many other valuable tree species including fruit trees. Biodiesel production requires a constant purchase of raw materials necessary for transesterification; Methanol (or ethanol), Potassium or Calcium Catalyst and fuel agents. These products are available in the market and will be purchased locally from SMEs.

Environment The project combines profit with reduction of climate change and improved natural resource management. Although in the semi arid areas, production levels are relatively low – about 2,000 kg of dry nuts per hectare, this is not problematic if the focus is not on plantations but on intercropping, meaning that on that same hectare farmers are capable to grow millet, beans, maize, gumbo, watermelon etc. The loss in space will be compensated by the reduction of wind and water erosion, by better water infiltration, by the increase of biomass and by providing partial shading. Erosion, the worst environmental hazard in West Africa is stopped by a sufficiently dense agro forestry system as proposed in this project. Biodiesel produces significantly less carbon dioxide compared to petrofuel which causes climate change. Emissions are much more environmentally-friendly. Petrodiesel has a high-level of particulate emissions and carbon monoxide released into the atmosphere. The use of pure biodiesel and biodiesel blended with petroleum diesel has demonstrated significant reductions in harmful emissions such as carbon monoxide and airborne particulates. When compared to petrodiesel, biodiesel carbon monoxide emissions can be reduced by up to 70% and particulate emissions reduced up to 30%. Especially the decrease of sulphur is a major topic in many cities and countries. Biodiesel is extremely low in sulphur, and has a high lubricate activity and fast biodegradability.

Page 23 of 244

Position of women Of the permanent staff, 43% will be women. Of the temporary staff 75% will be women. One of the risks related to the introduction of this kind of cash crop is that, once it is clear that it is very profitable, women can be easily excluded from participating. In large parts of Africa, including Burkina Faso, even after marriage, men and women have separate incomes and expenses. This is why the joint venture, together with the farmer organization and the traditional chiefs, will try to prevent this loss of empowerment for women with the introduction of this new crop.

Page 24 of 244

Burkina Faso

PSI09/BF/03 MaxiGrana: a collaborative innovation for a value

added sesame seeds production chain in

Burkina Faso

Location Ouarkoye (Dédougou); Ouagadougou

Sector Agriculture

Applicant Maximum Trading B.V., Amsterdam, The Netherlands

Local partner Ets. Zoungrana & Frère (Établissement), Koudougou, Burkina Faso

Third partner J.C. Kremer Beheer B.V., Middenmeer, The Netherlands


End project 30 June 2011


Goal of the project

Improving the sesame seeds exported from Burkina Faso into a 99.9% pure hulled and cleaned product for the international market by improvement of the husbandry techniques of the 2,500 farmers involved and installing a cleaning and hulling facility with at least a capacity of 1,500 tons per year. Summary

Sesame seeds are produced in Burkina Faso by small farmers as one of their cash crops. Local middlemen, like the local partner in this project, Ets. Zoungrana et Frère, buy the seeds from the farmers and sell it to foreign companies abroad, like Maximum trading B.V., the applicant in this project. The latter imports the sesame seeds into the Netherlands, have them cleaned and hulled by specialized companies, like the third partner in this project, J.C. Kremer Beheer B.V., and sells them all over the world. Sesame seeds from Burkina Faso appeared to contain between 15 to 20% impurities which makes transport cost relatively high. This is the reason why the 3 companies want to join forces in a joint venture to build and operate a state of the art sesame seed cleaning and hulling facility in Ouagadougou with the aim of exporting 99.9% pure and hulled sesame seeds to the rest of the world directly. To achieve this the project will also introduce new varieties and train 2,500 farmers in new cultivation techniques. The farmers concerned will be chosen in different provinces of Burkina Faso to minimise the risks of the usually very local droughts in the rainy season. This project will guarantee the farmers the possibility of selling sesame seeds at a fixed price and in large quantities. This will be the first time in Burkina Faso that an opportunity of this size exists.

Page 25 of 244

Results

• Result 1 : Legal and Administrative structure established. • Result 2 : Farmers organized, strategic partnership agreement with farmers concluded,

own staff recruited, farmers and staff received training and technical assistance, accompanying incentive programmes developed.

• Result 3 : Processing unit installed and operational, agricultural equipment installed and operational.

• Result 4 : First stage of pilot scale production in operational setting. • Result 5 : Second stage of pilot scale production, certification, additional training,

evaluation and reporting. CSR aspects

Maximum Trading B.V. and Kremer Beheer B.V., both apply a CSR policy in their companies. Zoungrana has, as a traditional African trader, no such written policy, but does understand and applies the basics of the CSR idea. They are committed to maintain a higher sustainability level than what laws and regulations dictate. They are aware that they can play a role model and are committed to set an example in their industry with regard to employees, suppliers and clients. As certification is concerned, HACCP will be achieved and the quality management system will be ready for BRC, IFS or AIB at the end of the project. Impact


Once the PSI pilot has ended, partners will continue to invest in this joint project: more capacity, more advanced techniques, more committed farmers, extending the concept to other crops (e.g. ground nuts, Hibiscus tea, etc). In the second year after the projects completion the partners believe that the turnover with the additional investments of € 1,390,000, will be around € 4.0 million per year.


In total 210 people will be employed of whom 17 medium- and high-level personnel. Two years after the project 340 people will be employed of whom 34 will be medium- and high-level. Wages are at least 15% above average. Thus, payment is always above the local minimum wage level. The joint venture will implement the same health and safety measures as Kremer has in its own facilities in the Netherlands. The physical inconveniences caused by dust, noise, resonance and tremors, toxic wastes and heavy work will be far less than usual in Burkina Faso industrial units. The consortium will be working according to the latest Dutch standards in this respect. The sesame seeds industry today uses transport bags of 80 kg, causing physical strain and overworking of operators and dockers. The consortium will introduce 50 and even 25 kg bags to avoid this.

Transfer of knowledge A vast programme of knowledge transfer is foreseen on subjects such as new processing techniques, quality management and certification. The initiators and partners (e.g. GTZ or Oxfam Novib) will teach the farmers new agricultural practices with the aim of doubling the yields. Subjects include production and maintenance of good sowing seed stocks, agro forestry techniques, prevention of erosion and depletion of soil

Page 26 of 244

fertility. Furthermore, farmers are given the opportunity to join basic education classes in the evening hours for those who are not yet able to read and write.

Chain effects The joint venture enters into long-term contracts with local transport companies, with local suppliers of soil canvasses and transport bags, with local suppliers of fertilizers and pesticides, and with local research institutes like INERA. The joint venture will contract 2,500 outgrowers united in 50 farmer groups, giving them long lasting contracts and a fair price. Contract farmers will benefit from the complete programme including: training, inputs and the possibility of basic education. Specialized institutes as GTZ will take care of the capacity building of farmer organizations.

Environment The project has a positive impact on the environment. Good agricultural practices diminish the use of fertilizer and biocides, erosion and depletion of soil fertility will be minimised by introducing agro forestry techniques, low water using hulling techniques will be introduced and the maximum use of solar and other renewable power sources will be employed.

Position of women In sesame production, in Burkina Faso, 70% of the farmers involved are female. This project will strengthen them by giving the assurance of a viable selling point for their production. Although the processing part of the chain is still dominated by men, the joint venture will endeavour to promote female employment there (also in the middle and higher segments) to at least 34% of the work force.

Page 27 of 244

Burkina Faso

PSI09/BF/21 Cashew nut kernels cracking plant in Burkina Faso

Location Bobo-Dioulasso

Sector Industry

Applicant Trade Development International B.V. (TDI), Giessenburg, The Netherlands

Local partner Anastasis S.A., Bobo-Dioulasso, Burkina Faso

Start project 01 October 2009

End project 31 March 2012


Goal of the project

To establish a cashew processing plant which shall be able to process 3,500 Mtons raw cashew nuts with an output of 700 Mtons of cashew kernels. Summary

Burkina Faso has an annual production of about 25,000 Mtons of raw cashew nuts which is increasing, however there exists hardly any local processing capacity. This leaves the local farmers vulnerable, with only one market outlet: Ghanaian and Ivory Coast traders who buy the raw nuts for processing in Asia. To counter this trend, there is a need to develop the local processing capacity of cashew nuts. The promoters of the project, TDI from the Netherlands and ANASTASIS in Burkina Faso designed a commercial cashew processing plant in Bobo-Dioulasso, which will produce cashew kernels for export. Both companies are already cooperating and TDI is running a similar project in Benin and Mozambique. Their strategy is to create a relevant volume of tradable cashew nuts through a chain of small factories in the region. The project is unique for Burkina which lacks a serious processing capacity and a business approach which links all the elements in the cashew-chain. The factory shall have a processing capacity of 3,500 Mtons of RCN annually and produce 700 Mtons kernels. The direct spin off will be the creation of at least 500 jobs. 3,500 Farmers will indirectly benefit of the project by a secured take of for their product against a decent price, which will stimulate the farmers to process cashew nuts of a good quality. In this way value addition to the product is done locally. Results

• Result 1 : Detailed plan of action concerning factory finished. • Result 2 : Project infrastructure in place. • Result 3 : Production of 400 Mtons of cashew nut kernels for export. CSR aspects

Anatrans intends to start processing according to BRC (hygiene) and BSCI (social) standards and the project has been approved by the Authorities according to the "Law of Labour" in Burkina Faso.

Page 28 of 244

Furthermore, the factory intends to do more for her employees then only applying to those standards and paying a decent salary. One meal will be provided for every employee and child-day-care will be arranged; Health-care-centre which will provide medicines for factory employees and HIV / AIDS prevention programmes shall be held at factory level and where possible grower group level. Pension and insurances will be arranged for every employee. An internal Code of Conduct will be put in place. The intention of Anatrans is that part of the production will be certified according to FLO and ECOCERT standards. WBI and Anastasis are currently cooperating with Fairmatch Support to arrange certification for certain grower groups. An environmental study is conducted and approved by the Ministry of Environment in Burkina Faso. Impact


By the end of the project in 2012, the capacity processed until then by the factory is 500 Mtons of cashew nut kernels. It will grow with extra investments to 700 Mtons of kernels and the factory will be on a capacity of 1,400 Mtons by 2017. In the period from 2012-2014, investments are scheduled extra processing machinery to facility the factory in her growth. This will be an investment of approximately € 250,000 in additional cashew processing machinery. Furthermore a € 100,000 investment is foreseen in machinery for a CNSL (Cashew Nut Shell Liquid) extraction plant. In 2014 the turnover will be approximately € 2.1 million.


When the project ends the factory will employ 378 basic-level and 19 medium-/high-level employees. This should increase to 647 basic-level and 30 medium-/high-level employees two years later. Wages paid to the employees in shelling and peeling are result-based, on basis of well-finished quantities. The rates are applied in such a way that the wages will be 2-5% above the minimum wage. All workers are registered with the CNSS (Caisse Nationale de Sécurité Sociale), which includes an insurance, family care and retirement. For other levels of salary for employees, a grid similar to other similar activities is applied. Implementation of BSCI conditions / regulations will ensure decent working conditions for workers. Furthermore, the company strives to insure all health care costs of permanent workers, provides a daily meal and there will be a child-day-care centre. Loan and leasing possibilities for cars and motor cycles will be offered to the permanent staff and management.

Transfer of knowledge Most of the employees employed by Anatrans have a basic level of education. This means that a lot of knowledge with regards to cashew processing needs to be transferred. They will be trained practically on the job, by traineeships at Afokantan for longer periods. Afterwards the train-the-trainer principle will be used, so that people who did a traineeship will instruct others. Main supplier of machinery Oltremare will set up a service centre in Ivory Coast which will provide on the job trainings

Page 29 of 244

with regards to maintenance of machinery. Completely new is the value chain approach of the factory. Producer trainings will be provided by sister company Genèse with information from Anatrans. It will be the first time that there is transparency in sharing facts and figures towards farmers.

Chain effects The people in the region of Bobo-Dioulasso will directly benefit of the project. As they can get jobs with good salaries and working conditions. A lot of value addition will be done to the raw cashew nut which will be an example for other entrepreneurs in the region. The estimation is that approximately 3,500 farmers will benefit from the project in 2013. Farmer organizations will be formed and strengthened. Most farmers will be progressively linked to the production plant. However, when intensifying the agricultural practices in cashew production, more finance is needed for seedlings, pesticides, agricultural equipment, and also investments in quality management equipment like calibrating machines, weighing scales and similar. Farmers group will be supported to find access to credits to satisfy these financing needs, by guaranteed buyback contracts with the factory.

Environment The factory was subject to an environmental study which has been approved by the Ministry of Environment in Burkina Faso. On the level of processing, the main risk for the environment are the cashew shells, which is 75% of the weight of the cashew nut. The intention is that the shell will be used as a by-product for the production of energy or for the production of CNSL, for which a future investment is foreseen. Farmers will maintain their field and plant cashew trees that will be in line with the policy of reforestation. Moreover, less transport of cashew nuts is needed before processing, which has positive effects on air pollution.

Position of women WBI has a strong focus on empowering women in Africa and experience in Benin learned that in a cashew processing plant 50% of the employees will be women. These women will work on different levels inside the organization, directly in the processing line, in the management and administrative side. The empowerment of women will result in the fact that they have their own money to expend.

Other impact The factory will also have a positive impact on industrial development in Bobo-Dioulasso: on the level of suppliers and service providers, a client of significant size is added. In collaboration with them, there might be development of new, specific products as plastic bags, software Applications, and equipment. This has already resulted in an accelerated plan for an industrial zone in Bobo-Dioulasso. Also the planning is that in cooperation with GTZ, Fair Match

Page 30 of 244

Support and the Bill and Melinda Gates Foundation satellite units and community storage will start up. Partners have established a joint venture to confirm their wish to have a long term partnership to further develop local processing units. This vision is not limited to cashews only as the partners also collaborate on other cash crops as Jatropha, Sheanuts, Sunflower seeds and Soy Beans. A health and day-care centre is included in the building plans.

Page 31 of 244

Burkina Faso

PSI09/BF/22 Burkina Primeur, sustainable production of onions

and shallots for the West African market

Location Office: Ouagadougou / Production sites: Kaya

Sector Agriculture

Applicant Harrie Goesten V.O.F., Elshout, The Netherlands

Local partner Faso Fruits et Légumes S.A.R.L., Ouagadougou, Burkina Faso




Goal of the project

The aim of the project is to set up a joint venture in Burkina Faso called Faso Primeur which will produce high quality planting materials for onions and shallots and will also be a for the distribution of onions and shallots, produced by its outgrowers. Within the scope of the project high quality planting material is grown on 4 ha. This should enable the growing of 20 ha of onions and 20 ha of shallots and ultimately yield approximately 400 tons of onions and 400 tons of shallots. Summary

The existing commercial relationship between applicant Goesten and local partner Faso Fruits et Legumes (FFL) dates back to 2005 with the production of green beans. This project involved 500 outgrowers who produce green beans which are exported to Harry Goesten V.O.F. in the Netherlands. Because the green bean campaign lasts from October to March, with an average of 4 month real occupation of the cultivation process, Harry Goesten V.O.F. and the outgrowers have been investigating opportunities to extend production above the 4 months period and to diversify sources of income. This search resulted in the idea of introducing the production of onions and shallots. Onion and shallots can be grown alternatively but more or less parallel with green beans and there are excellent opportunities for regional export to Cote d'Ivoire, Ghana and Togo. The local market shows opportunities for especially the onions. A joint venture will be established which shall develop locally adapted / improved planting materials and undertake the required activities for the training and supervision of about 6,000 outgrowers (500 of which are outgrowers in the green bean project) to grow over 50 ha of high quality onions and shallots. The production of the outgrowers, roughly 1,200 tons of onions and shallots, will be treated, packaged and commercialized through the planned joint venture company in the surrounding countries. The joint venture will create 20 directs jobs and 50 indirect jobs and strengthen the position of the outgrowers through diversification of their sources of incomes.

Page 32 of 244

Results

• Result 1 : Establishment of the joint venture. • Result 2 : Building project facilities. • Result 3 : Hiring of personnel and training of the personnel and outgrowers. • Result 4 : Production trial. • Result 5 : Promotion and Marketing. CSR aspects

The joint venture will fully comply with all the regulations and policies in place in Burkina Faso to guarantee that the employees and working conditions are safe and comfortable. The project will in particular adhere to the GlobalGAP (Good Agricultural Practice) rules and regulations and take care that all required legal documentation (e.g. licenses, building permits etc) will be obtained in accordance with local rules and legislation. An independent validation company will be inspecting the location for HACCP certification. Impact


In terms of follow-up investment, the joint venture company envisages to invest about € 600,000 in expanding its capacity and output. This additional investment will cover: • the acquisition of land for expanding or developing a new

nursery site with all the required irrigation and mechanization machinery and trucks;

• the expansion of the post harvest handling plant to accommodate the growth;

• the increase of the logistic and marketing facilities and means.

The expected increase of turnover will be about € 1.5 million. In the future, a diversification into other crops (tomatoes and other horticultural products) is possible once the onions and shallots trade chain is mastered by the outgrowers and the joint venture.


At the end of the PSI phase, Burkina Primeur will employ a minimum of 30 permanent staff members of which at least 8 medium- to high-level employers and 22 unskilled labourers. In addition, an estimated 50 part-timers will be employed for 2 to 4 months per year. Wages and benefits paid for a standard working hours or month meet, at a minimum, the national legal wage. For the regular personal, the joint venture will pay at least 10% above the minimum wage in Burkina Faso (as fixed by the Government of Burkina Faso) according to the various qualification. The working hours will comply with national laws and will not be in excess of 40 hours per week. Overtime will be voluntary and not exceed 12 hours per week and will be always compensated at the legal premium rate. Additionally, the Burkina Primeur will promote an employee funds that will be managed by the employees. Burkina Primeur will encourage such creation and donate 1% of the net profit of the company to the funds. About 6,000 outgrowers will be self employed to earn decent

Page 33 of 244

revenues to move them out of the poverty line.

Transfer of knowledge The transfer of new knowledge about new cultivars and cultivation methods will be introduced which enhances the abilities of farmers to grow high quality onions and shallots. Training comprises of: nursery methodologies (seeding techniques); soil cultivation techniques; planting techniques; methods of fertilization; harvesting methods; drying methods; methods for proper storage and sorting methodologies.

Chain effects The main objective of the project is to develop the onions and shallots sector of Burkina Faso by improving varieties, quality and marketability. The following parties will take profit of the project: • The farmer communities. The project backbone are the

6,077 smallholders who will cultivate the onions and shallots. This network of outgrowers will be extended during the follow phase.

• Providers of farms inputs and equipments such as irrigation equipments.

• The traders and wholesalers. • The transportation and logistic companies that will be

mobilized to deliver the onions and shallots to the customers. Among these, there are several hundred or thousands of retailers across the countries that will be enabled to earn a good living.

Environment Because healthier starting material will be used for growing shallot crops, there will be less need for fertilizers and pesticides to produce high harvest yields of good quality. Farmers using this material will be educated to ensure they will indeed refrain from using more fertilizers and pesticides than is absolutely necessary. This switch will allow them to increase their harvest yield (up to 35-50%), using the same amount of land and using the same amount or less fertilizers and pesticides. Planting material produced by the joint venture will conform to GlobalGAP (Good Agricultural Practice) requirements. The GlobalGAP standard is primarily designed to reassure consumers about how food is produced on the farm by minimizing detrimental environmental impacts of farming operations, reducing the use of chemical inputs and ensuring a responsible approach to worker health and safety as well as animal welfare.

Position of women The project will specially benefit women in the sense that women are the traditional farm workers in Burkina Faso. Among the 6,077 outgrowers of the planed project, 70% of them are women. In any case, 70% of the project personnel will be women especially in the post harvest handling centre.

Other impact The country will benefit from adapted species and varieties of onions to serve the West African market and reduce imports

Page 34 of 244

from foreign markets (EU). The project will have a positive impact on the overall living condition of the farmers and agricultural performance of the country. The expected export to the surrounding countries will bring some macro-economical benefits.

Page 35 of 244

Burundi (PSI Plus)

PSIP09/BI/31 Introducing modular construction for high quality,

affordable housing in Burundi

Location Bujumbura

Sector Construction / Infrastructure

Applicant PortCargo International Ltd, Ndola, Zambia

Local partner Constructions Achats Approvisionnements SA, Bujumbura, Burundi

Third partner Sismo N.V., Kalken-Laarne, Belgium



Total budget € 1,400,356 (60% PSI contribution = € 840,214; MIGA contribution = € 31,508)

Goal of the project

To establish a production facility for semi-prefab wall and roof panels, with a capacity of 54,000 m2 per year, to be used in construction of high quality, affordable houses on the local market. Summary

As a result of increasing stability in Burundi, the demand for affordable, high quality housing is on the rise. Urbanization, the repatriation of refugees and the rise of a middle class lead to interesting opportunities for the construction sector. However, the supply side of the housing market is not able to keep up with demand, leading to an annual shortage of 20,000 housing units. Applicant Port Cargo International Ltd from Zambia is an export company specializing in cement and construction materials for the Great Lakes Region. The local partner is a building and property development company called Constructions Achats Approvisionnements SA (CAA), and is based in Bujumbura. When discussing the housing problem in Burundi, Port Cargo recalled its experience with a modular building concept once seen in Libya. This modular building system came from Sismo N.V. from Belgium, and after contacting Sismo again, they turned out to be interested to invest in this project as a third partner. The 3 partners together will establish a pilot scale production facility for production of semi-prefab wall and roof panels, for the local housing industry. A joint venture will be established in which all 3 companies will take part. The factory will be based in Bujumbura and will produce panels for both CAA and other local construction firms. As compared to quality brick buildings, the houses built with Sismo panels will be 20% cheaper. More important is the fact that the construction time for houses will be reduced significantly, as complete houses can be erected in just one day. This will significantly lower

Page 36 of 244

the financial burden for the property developer, as the invested capital is needed for a shorter period of time. Results

• Result 1 : Legal and administrative structure established. • Result 2 : Production unit operational. • Result 3 : Own staff recruited and trained, contractors trained, staff of local partner

trained. • Result 4 : Pilot with the production unit in operational setting, constructing

demonstration houses, evaluation and reporting. CSR aspects

CSR standards are not institutionalized in Burundi yet. The partners will therefore develop their own occupational health and safety programme, which will be similar to the Dutch VCA (Veiligheid, Gezondheid en Milieu Checklist Aannemers). In general, the partners will adhere to international health, safety and environmental rules and regulations. They will also develop a HRM policy with a special chapter on gender issues. Additional fringe benefits can be found under 'Employment and Working Conditions'. Impact


Two years after the project finalization, the partners expect to invest an additional € 1,330,000 for expansion of production capacity, additional training, capital replacement, expansion to neighbouring countries and additional services. All 3 project partners will continue their cooperation in the joint venture.


The project will provide employment to 22 people, of which 13 will be basic qualified and 9 medium/high qualified. Two years after the end of the project, 44 people will be employed of which 28 basic qualified and 16 medium/high qualified. The lowest paid employee will receive 15% above local minimum wages. In addition, the partners will offer health insurance, assistance in getting mortgages / housing allowance, savings programmes, adult education programmes, HIV / AIDS prevention training, free lunch and transport, and school fees for children.

Transfer of knowledge The knowledge of modular construction is totally new to Burundi. Working with advanced CAD/CAM applications is new as well. Next to training its own employees, the partners will pay a great deal of attention to training supervisors and on-site workers of both CAA and other construction companies in order to get used to building with Sismo panels. Through this approach, the partners increase the acceptance of this new concept in the market, and enhance the knowledge level in the construction sector in Burundi at the same time.

Page 37 of 244

Chain effects First and foremost this project will allow construction companies to increase their scale of operations without getting into a capital intensive growth path. Initially, 50 construction workers will be involved in this project through training, but the concept will be open to any interested construction company in Burundi. Indirectly, the project will lead to an increase in demand for supplies, works and services: earth moving works, equipment, raw materials, installation works, components and finishing etc. The number of subcontractors is estimated at 19.

Environment The introduction of Sismo panels will have a positive impact on the environment as it will provide an alternative to the use of fired bricks. Bricks are traditionally baked in wood-fuelled ovens. The use of wood poses a serious threat to the scarce forests in Burundi. In traditional building, timber is also used for setting of structures. This too will no longer be necessary when using Sismo panels. Second, the partners will comply with local environmental legislation.

Position of women About 25% of the total workforce will be women. These will mainly be employed in the design / engineering jobs and in other office jobs.

Page 38 of 244

Cape Verde

PSI09/CV/02 Shrimp farming on the Cape Verde Island

São Vicente

Location Sao Pedro, São Vicente

Sector Fishery / Aquaculture

Applicant Universo, Fortaleza – Ceara, Brazil

Local partner Sociedade Ultramarina de Conservas (SUCLA), Tarrafal SN – São Nicolau, Cape Verde




Goal of the project

To build and operate a shrimp farm on São Vicente. Summary

Currently, the entire yearly consumption of at least 60 tons shrimps in Cape Verde is being imported. With a growing tourist sector in Cape Verde and a world wide trend to fulfil protein demand increasingly with seafood, a good market opportunity arises. The project partners Universo Ltda from Brazil and SUCLA Lda from Cape Verde will form a joint venture to implement a shrimp farm on Sao Vicente of open ponds and expect to replace shrimp import in short term and to export the surplus production. The Brazilian company Universo is specialized in the wholesale and retail market of seafood in and outside of Brazil. Further, through partnerships with other companies they are engaged in the setting up of aquaculture projects. The local partner SUCLA is well known in Cape Verde for its "Cadorio" canned tuna. The farm will be certified according to GlobalGAP principles. With this project the partners want to contribute to a sustainable alternative for marine food stock overexploitation and maintain the local fish processing culture in Cape Verde. Results

• Result 1 : Establishment of joint venture. • Result 2 : Site preparation. • Result 3 : Finalising farm and first capture. • Result 4 : Farm fully operational. • Result 5 : Expanding on world market. CSR aspects

The company will strictly follow the Cape Verdean Labour standards. In addition, attention will be given to HIV / AIDS and alcohol dependency problems. An environmental impact assessment will be implemented twice. HACCP procedures will be implemented and GlobalGAP certification be obtained. The local company SUCLA has a very active CSR policy, for instance the payment of the health and accidental risk insurance policies is paid for the

Page 39 of 244

entire year for all staff, while the majority of the workers only work 6 months per year. SUCLA is very active in all kinds of corporate social involvement activities in Tarafal. Impact


In the first two years the project partners will invest in extra ponds to extent the farm. Later on they will invest in their own package line, cold storage facilities, a larvae production unit and even in a second farm.


Of the 25 employees, 10 will be high- and medium-level employees. Two years after the project the number will at least increase to 31 people, out of which 13 at high- and medium-level. Salaries for the unskilled labourers will be € 250 per month, which is a good salary (in comparison, textile workers receive € 160 maximum). Fringe benefits include canteen, health insurance, and childcare. Safety measures include protective clothing and a HIV / AIDS prevention programme.

Transfer of knowledge As aquaculture is new for Cape Verde, all related knowledge and skills are new for the employees. Trainings will be given on different levels. Knowledge of pond construction techniques will be transferred to staff of a local constructor. The experience of working with HACCP and GlobalGAP can easily be used at other companies.

Chain effects Besides the Brazilian suppliers of shrimp food and larvae, the local ice supplier and the cold storage facility in Mindelo will benefit.

Environment The shrimp larvae will be grown in Brazilian laboratories, so natural stocks are not affected. In case of an escape of the shrimps or larvae into the sea, it will not create a problem, as the larvae of Litopenaeus vannamei are Specific Pathogen Free. However, escape is prevented by trapping in settlement tanks and consecutive drying of debris. Similarly, an outflow of fertilizers is prevented in the settlement tanks and will be used to feed the algae, providing starting food for the larvae. The location of the shrimp farm is far away from Cape Verdean protected marine areas. Moreover, an EIA will be conducted at the start and the end of the project. The company will work according to GlobalGAP principles, which also includes environmental issues.

Position of women 80% of the employees will be women, including all management positions. Childcare facilities for young children will be offered.

Other impact Establishment of aquaculture in a society which can not provide the daily need for protein through its own agricultural activities can become an eye opener for others. The National Institute for Fisheries has already conducted many studies in the field of aquaculture and could assist others to continue this new development.

Page 40 of 244

Cape Verde

PSI09/CV/22 An innovative and ISO 9001 certified manufacturing

facility for high quality, aluminium fenestrations in

Cape Verde

Location Mindelo, São Vincente

Sector Construction

Applicant Window Warehouse (GB) Ltd, Leicester, United Kingdom

Local partner CRIARQ – Estudos E Projectos Limitada, Mindelo, São Vicente, Cape Verde

Third partner Aluminium Window Systems Limited, Boston, Lincolnshire, United Kingdom


End project 30 April 2012


Goal of the project

Set up a modern ISO 9001 certified manufacturing facility for aluminium fenestrations and architectural systems in Mindelo, Cape Verde. Summary

Over the last 10 years the construction sector is booming in Cape Verde. On all islands resorts, hotels, apartment complexes and private houses are being built for tourists, Cape Verdeans living abroad and for the local population. Currently, all facades and fenestrations are imported in Cape Verde. In the majority of the constructions, aluminium facades, windows and doors are being used as wood is severely affected by the harsh salty and humid climate of Cape Verde. However, most imported aluminium products are also of a quality which is not suitable for that climate. The aluminium, its protective coating and the glass windows are too thin and thus not sustainable. The offer of imported facades and fenestrations is also very limited in terms of forms, sizes and colour. Through this project the project partners will establish a factory for the local manufacturing of high quality, ISO 9001 certified aluminium facades and fenestrations in Mindelo on the island São Vicente. It will also broaden the range of aluminium products for sale in Cape Verde, as the facades and fenestrations will be tailor made according to the wishes of the customer. For this purpose the applicant Window Warehouse (GB) Ltd, the local partner CRIARQ −

Estudios E Projectos Limitada and the third partner Aluminium Window Systems Limited will establish a joint venture. The joint venture will produce on a safe and environmentally sustainable way. Results

• Result 1 : Establishment of the joint venture. • Result 2 : Establishment of manufacturing facility. • Result 3 : Training of the managers in the United Kingdom.

Page 41 of 244

• Result 4 : Training of the employees in Cape Verde. • Result 5 : Operational phase. CSR aspects

Applicant Window Warehouse has a CSR handbook which is part of the contract of the employee. It includes issues like equal opportunity policy, good salaries, pension, insurances, right for flexible working hours, health and safety procedures, grievance procedure, harassment policy, etc. This handbook will be adapted to the situation in Cape Verde and applied to the project. Active employee participation will be encouraged. Child and forced labour are not accepted within the company. A gender policy will be implemented as well as environmental care. Impact


In the two years after the project, the partners will expand the production facility to enable the manufacturing of a wider range of products, such as windows with double glazing, automatic and rotating doors and also the production capacity to be able to start export to neighbouring Western African countries as well. A hardening plant for glass will be set up.


During the project 57 employees will be contracted, of which 8 high-level, 37 medium-level and 12 basic-level. This will increase to 99 full-time employees two years after the project. Salaries are at least twice the minimum wage level. Good and safe working conditions will be offered. Employees will have to use protecting equipments and be trained on health and safety issues. There will be internal control for safety issues. A social package including health insurance will be offered. Employees receive fringe benefits as transportation to the workplace and canteen facility.

Transfer of knowledge As manufacturing aluminium systems is absent in Cape Verde, the transfer of knowledge on the ISO 9001 manufacturing of high quality manufacturing of aluminium architectural systems is completely new. This will give the employees an advantage on the labour market.

Chain effects The project will have a positive impact on the construction sector as better quality aluminium products will be made available in all sizes and colours. Users of the buildings and houses will benefit of the better windows and doors. The houses and offices will be better isolated. The tourist sector will be able to create a better image through the quality of the fenestrations and facades. The implementation of 9 franchises on the other islands will have a good chain effect. During the project period they will start as employees, but they will be stimulated to become more and more independent and start their own businesses with the technical support of the

Page 42 of 244

manufacturing plant.

Environment The project will have a neutral impact on the environment. It could even have a slight positive effect as the windows will be better isolated than the imported ones reducing the amount of energy needed for air conditioning of the rooms. The company will take several measures to minimize the impact on the environment. The plant's waste materials, such as glass and aluminium, will be collected and recycled. Water will be purified for use up to 10 times. No toxic materials are used in the production process. Powder coating is a closed process where powder is put on the aluminium frames through an electric process. It does not use chemicals or toxic dilutants. The remaining powder will be filtered and reused. An environmental impact assessment will be carried out.

Position of women The joint venture will reserve 28% of the job positions for women in order to ensure a certain gender balance in an industry which is male dominated. Out of the 16 women, 1 is at high skill level and 12 on medium skill level.

Other impact The joint venture will create a football team and training facility for the employees and the local community and provide gear and equipment.

Page 43 of 244

Cape Verde

PSI09/CV/23 Safe and reliable transport services for Cape Verde

Location Sal Island

Sector Transport / Logistics

Applicant Rotterdamse Mobiliteit Centrale B.V., Rotterdam, The Netherlands

Local partner Vany Taxy Drivers, Sal, Cape Verde




Goal of the project

To establish a professionally organised taxi centre on the island of Sal with 13 own taxi vehicles, 4 (mini) buses and 40 taxis of associates and to run an own car repair and maintenance workshop. Summary

The Island of Sal in Cape Verde depends for 90% of its total income of activities in tourism. As there are no organised public transport facilities on Sal, the most common means of transport for local people and tourists are mini buses, pick-up trucks and taxis. The business of 100 licensed taxis is negatively affected by a double amount of illegal taxis that operate with vague tariffs and appear to be unreliable and unsafe. Due to the lack of reliable transport, especially at night, it is rather difficult for tourists to visit areas outside their hotel or resort. As a result, the local tourism sector remains rather underdeveloped. Vany Taxi Drivers wants to improve the taxi services on Sal. For that purpose it will establish a joint venture with the Dutch company Rotterdamse Mobiliteit Centrale and start a professionally organised taxi centre that provides safe, reliable and coordinated taxi services to the local population and the visitors of Sal. All licensed taxi drivers can join this taxi centre as an associate. The project partners aim to improve the quality of the taxi services by: 1. implementing new quality standards based on ISO; 2. ensuring transparency of tariffs; 3. guaranteeing the uniformity of taxis and taxi drivers; 4. developing safety standards and a code of behaviour for the drivers. Besides an intense training programme, project partners will invest in special taxi vehicles, an advanced communication infrastructure and the establishment of a professional workshop for repair and maintenance of vehicles. In summary, the business model will have 3 sources of income: own vehicles, contribution paid by associates and the workshop.

Page 44 of 244

Results

• Result 1 : Establishment of the joint venture. • Result 2 : Office and workshop reconstructed. • Result 3 : Communication infrastructure established. • Result 4 : Staff trained. • Result 5 : Commercial exploitation of taxi centre. CSR aspects

Rotterdamse Mobiliteit Centrale B.V. has an active CSR policy. Rotterdamse Mobiliteit Centrale B.V. possesses ISO 9001:2000 certificate and stimulates its associated taxis to obtain the same or at least fulfil the requirements of the national taxi label TX Keur. RMC offers attractive employment conditions: collective health insurance, good pension fund, car insurance, 50% discount on a sporting ticket, travel expenses, trainings. RMC enables smaller taxi companies to sign the Rotterdam covenant on incidents of violence by allowing them to use their communication network. RMC maintains strict procedures in collecting and disposing its waste. VTD ensures a fair payment of its employees (25% higher), 8 hour work day for its drivers in stead of 12 hours, access to trainings, paid holidays and accommodation and moving expenses for employees from other islands. The new taxi centre will obtain ISO quality and safety certificate, good employment conditions including good salaries, possibility to work part-time, social security and health insurance for the employees and their families, free lunch coupons, uniforms, trainings, possibility for the (associated) drivers to obtain company shares. In addition, a project to help street children will be assisted. Impact


The joint venture will invest in expansion of the communication infrastructure on Sal to enable their network to also host communications of police, fire station and other public organizations. Furthermore, the business model will be established on another Cape Verdean island as Boa Vista, Maio or Santiago. The amount of associated taxis on Sal will increase with 35 to 75. The workshop will develop and establish its own "APK-keuring" on Sal.


At the end of 2011 the company will employ 47 employees, including the 9 already working for VTD. Of these 47, 1 is high-level and 3 medium-level. Two years after the project, this will have been increased to 67 employees. Cape Verde does not have an official minimum wage. The employees will receive a monthly salary 25% higher than the average paid for comparable functions. Salary increase will be 2% per year. The company ensures a safe and comfortable working environment with regards to the facilities provided in the office and workshop. Employees have access to canteen facilities, social security, health insurance and training. The drivers and workshop staff receive working clothes and shoes.

Transfer of knowledge The knowledge on operation and management of a professional taxi centre coordinating rides for associated taxis is new for Cape Verde as well as the communication infrastructure of the

Page 45 of 244

centre. Knowledge on the quality and safety procedures of ISO is new within the taxi sector in Cape Verde. The operation of special transport services for elder and disabled people is unknown as well. The development of an "APK-keuring" with the local government will introduce a new concept in Sal and eventually in Cape Verde.

Chain effects The taxi centre will provide work to at least 80 drivers of the 40 associated taxi entrepreneurs (every taxi has 2 drivers per day) in 2011, this will increase with another 70 drivers to 150 in 2013. Those taxi drivers will have additional income as a result of the 40% additional rides through the taxi centre. The entire transport sector on Sal will benefit as the standard will be uplifted. The local customers will benefit through an affordable, reliable and safe means of transport over the island. The tourism sector will benefit from the taxi centre, as it enables tourists to safely visit more places on the island during the day and at night time. Those tourists will spend more money outside the luxury resorts, which will be beneficial to the Cape Verdean owners of souvenir shops, restaurants and bars. It will create a positive image of Sal in the tourist industry which can attract even more foreign tourists. After the project the local government, police, fire brigade and ambulance will benefit by making use of the established communication network at a different frequency.

Environment The project will have a neutral effect on the environment. The operation of the taxi centre could potentially have a negative impact as more cars will be used on the island. However, the cars to be used will be new cars and will have an energy label A. For the associated taxi's one of the requirements to become a member is that the car needs to be in a good condition. All cars will be regularly checked and maintained. The taxi centre's coordination of taxi rides will ensure an efficient execution of rides, bringing down the number of "empty kilometres". The workshop will be equipped with Western equipment of high standard in accordance with European standards on safety and environmental issues. The floor of the workshop will be a liquid tight one in order to avoid any leakage to the ground water. The waste will be collected and disposed off according to Western standards.

Position of women The taxi centre will employ a majority of women for its different function ranging from head of education until mechanical worker or taxi driver. The taxi centre will ensure the possibility to use safe and reliable transport services 24 hours per day, increasing the possibility for women to work also at night time hours in restaurants and hotels.

Other impact Currently a growing number of children in Santa Maria town are

Page 46 of 244

hanging around on the streets in stead of being educated at school. They are disturbing tourists by begging for money or cleaning cars without being asked for. Their presence creates a less safe environment and in that sense they could scare away tourists. This will negatively affect the business of both the tourist industry but also the taxi sector. For this reason, but also from the point of view of corporate social responsibility for the future of those kids and their families, the joint venture will assist the local organization ICCA. ICCA provides alternatives for the kids through basic education, family assistance, assistance with organising their lives and finding internships at local enterprises. The joint venture will be the first company to provide this internship at the taxi centre and the workshop.

Page 47 of 244

Cape Verde

PSI09/CV/24 Tilapia juveniles for tuna live bait on Cape Verde

Location Sao Pedro

Sector Aquaculture

Applicant Universo − Criacao, Comercio de pescados importacao e exportacao Ltda, Fortaleza − Ceara, Brazil

Local partner Sociedade Ultramarina de Conservas, Ltda (SUCLA), Tarrafal, São Nicolau, Cape Verde




Goal of the project

To establish a tilapia farm of 7 ha pond area, capable of an annual production of 23 million tilapia juveniles for tuna live bait in Cape Verde. Summary

Target species for tuna fishing in Cape Verdean waters are the yellow fin tuna, skipjack tuna, wahoo and bigeye tuna. Cape Verde has an internationally agreed ICCAT quota to catch 29,000 tons of yellow fin tuna per year, of which only 4,000 tons is caught and mainly by the EU-registered vessels with huge nets, resulting in a large percentage of by-catch of unwanted species. Cape Verdean fishermen themselves focus mainly on skipjack tuna, catching it by artisanal pole and line fishing. Pole and line fishing is internationally considered by ICCAT and MSc as the most sustainable way of catching tuna. These artisanal tuna fishers on Cape Verde need about 600 tons of live bait fishes per year to be able to catch 6,000 tons of skipjack tuna. The live bait fishes, mostly mackerel, they catch themselves. As such, the fishermen spend 50% of their effective tuna fishing time in catching live bait. They can not reach the agreed quota, due to lack of live bait fishes and fishing time. This project will facilitate the artisanal fishermen to continue with their sustainable way of pole and line tuna fishing by producing tilapia live bait. The tilapia farm of 7 ha pond area on São Vicente will yearly produce 23 million young fishes of 12 to 15 gr. For this purpose the Brazilian company Universo − Criacao, Comercio de pescados

importacao e exportacao Ltda and the Cape Verdean partner Sociedade Ultramarina de Conservas Ltda (SUCLA) will form a joint venture. The bait fishes will be raised in brackish waters with state of the art technology and adapted to seawater prior to delivery in the harbour. The project will contribute in the process of adapting the tuna fishery chain in Cape Verde towards a sustainable way of exploitation.

Page 48 of 244

Results

• Result 1 : Establishment of joint venture. • Result 2 : Site preparation and training. • Result 3 : First sales of the imported stock. • Result 4 : Second season, first sales of own bred. • Result 5 : Full production. CSR aspects

The company will follow the Cape Verdean labour laws, but offer all kinds of extra benefits as described at the employment section. The joint venture will train all tuna fishermen on the requirements of ICCAT and assist the government with the implementation of the code of conduct for responsible fisheries. Impact


The partners will build 1 extra breeder and 25 additional grow-out ponds. In case the demand for tilapia bait raises beyond the current amount of live bait used, a second farm will be considered on the leeward island Santiago.


The company will employ 25 workers of which 4 high- and medium-level. This will increase to 32 people in the two years after the project. The salaries are at least 10% above minimum wages in the sector. The company will pay a lot of attention towards safe working conditions. Fringe benefits include the canteen facilities, health insurance and protective clothing. The largest part of the investments in hardware are the investments in pond construction by local contractors with heavy machinery. This will take about 12 months for 10 to 12 people.

Transfer of knowledge The knowledge for construction of the ponds will be transferred to the construction companies. All knowledge and skills necessary for tilapia breeding and fish farming will be new for Cape Verde. As well as the process of adaptation towards the salty sea water.

Chain effects The project will have a positive impact on the tuna fishing and processing chain. It will enable the Cape Verdean fishermen to catch more skipjack tuna on the artisanal way at a lower cost, making better use of the quota allocated to Cape Verde. It will enable SUCLA and other tuna processing companies in Cape Verde to increase their production and to introduce MSc certification in future. As the international requirements of ICCAT are more strict on tuna fishery, this improvement of the first link of the chain will enable the Cape Verdean fishers to continue their sustainable way of fishing and creating a better and long term market access.

Environment The impact on the environment will be positive as the amount of caught wild mackerel for the purpose of live bait will

Page 49 of 244

decrease and the chain of tuna fisheries of the Cape Verdean fishermen will be made more sustainable, in future even leading to MSc certification. The project will favour the artisanal way of fishing, which has no side-catch as compared to the big international vessels with seiners. An environmental impact assessment will be done on the impact of the farm. The used water will be filtered before reaching again the ocean. There is no risk that tilapia introduced in the marine environment will lead to marine populations, as the live bait is almost 100% male, tilapia is a fresh water fish and needs special (not present) requirements in their reproductive phase. Moreover, the natural populations in the West African rivers have never led to marine populations.

Position of women Fifteen out of the 25 employees will be women, to be employed in administrative functions, as feeders and at the laboratory.

Other impact The project partners will closely work together with the National Institute for Fisheries Development INDP on research of aquaculture. This could lead to other companies starting related project opportunities in future.

Page 50 of 244

Egypt

PSI09/EG/04 Quality controlled logistics & distribution of high

quality fresh vegetables & fruits for the domestic

urban market in Egypt

Location Multi locations: Desert Road area, the Nile Delta and Cairo

Sector Horticulture: vegetables and fruits

Applicant Metro Cash & Carry Int. B.V., Diemen, The Netherlands

Local partner Makro Cash & Carry Egypt LLC, Cairo, Egypt



Total budget € 1,476,100 (50% PSI contribution =€ 738,050)

Goal of the project

The goal of this project is to develop a fruits and vegetables sourcing chain for Metro Cash & Carry Stores in Egypt, consisting of 2 collection platforms and a distribution centre, processing 850 tons of produce, cultivated by small farmers, in the second year of the project.

Summary

Egypt has a poorly developed supply chain for fresh fruits and vegetables. Standards for local market production are low and, as a result, both quality and hygiene levels are insufficient. On the other hand, market demand for high quality fresh produce is increasing. Upper-class consumers, international offices and the booming tourism industry are demanding safe and high-quality fruits and vegetables. Applicant Metro Cash & Carry International B.V., a large wholesaler, is the mother company of local partner Makro Cash & Carry Egypt LLC. Since both partners belong to the same group, no joint venture will be established. Makro Egypt will open 10 wholesale stores in the upcoming years, with its first Cairo branch to be opened in 2009. In order to respond to market demands, the group will establish a pilot infrastructure and train farmers and operators to supply high quality fresh fruits and vegetables to their Egyptian cash & carry stores. The project consists of training and contracting a large number of small farmers that will deliver their products to one of the 2 collection centres that will be set up under the project. From these platforms, products will be transported to a distribution centre in Cairo where products will be handled, stored and distributed to Makro stores around the country. The project will raise the knowledge level and income position of a large group of farmers. Furthermore, the innovative project will have significant impact on the development of the fruits and vegetables supply chain for the local market, which makes a contribution to food safety.

Page 51 of 244

Results

• Result 1 : Inception. • Result 2 : Construction of the cold chain infrastructure. • Result 3 : Training programme. • Result 4 : GAP development, certification and commercial production. CSR aspects

Within the project, Makro's own 'Cali' quality system will be implemented to guarantee quality throughout the supply chain. The Distribution Facility will be HACCP certified. All supplying farmers will be certified according to the MakroGAP standard (a local standard derived from GlobalGAP but less demanding). A number of 10 farmers will be selected for GlobalGAP certification. These farmers will be the frontrunners of quality improvement and serve as an example for other suppliers. Impact


The planned follow-up investments in the two years after project completion amount to € 2.0 million. These investments consist of further development of the cold chain infrastructure and extensions to process other fresh products such as meat and fish. The expected turnover in the second year after finalization of the project is € 2.0 million. In the long term, the Distribution Centre and the collection platforms will cater for Makro stores in neighbouring countries as well.


The project will have created 49 direct jobs at the end of the project's implementation. This number will grow to 98 in the second year after completion. Of the 49, a total of 5 jobs will be at the higher level.

Transfer of knowledge Knowledge of the advanced supply chain that Makro is setting up (with the involvement of a large number of small farmers) is new for Egypt. The extensive training programme will result in a higher knowledge level of 800 local farmers on quality management, growing techniques and production planning.

Chain effects Chain effects are significant, as the number of small growers with supply contracts will be 250 at the end of the project. These farmers receive technical inputs, knowledge and a more stable and higher income. Furthermore, 800 farmers will be included in the Makro training and capacity building programme. This provides these farmers with knowledge of growing techniques, fertilization and quality management, which improves their market performance. Another chain effect of the project is its positive impact on the quality and safety of food in several business sectors, especially in tourism. Currently Egypt suffers from a reputation of bad food quality resulting in stomach problems among tourists and locals.

Page 52 of 244

Environment In the Distribution Centre and at the collection platforms a waste water management system will be implemented. Pesticide usage will be minimized and an integrated pest management system will be set-up. A system of reusable crates with deposits will be implemented.

Position of women Approximately 60% of all direct employees will be women. At the medium and higher level (including management positions), women and men will be equally represented.

Page 53 of 244

Egypt

PSI09/EG/21 MABA Retail: joint venture for the retail-packing

and distribution of ware potatoes in Egypt

Location Delta Left Bank (70 km north west of Cairo)

Sector Agriculture / Agro-processing

Applicant Agrico U.A., Emmeloord, The Netherlands

Local partner Maba Ltd, Giza, Egypt




Goal of the project

Stimulating the development of a high quality domestic potato sector by value-chain management, establishing a packing facility and introducing new marketing / retail concepts. Summary

Egypt is a large producer and exporter of table potatoes for the European market. It also has a domestic market for potatoes (mainly as a vegetable), but the value-chain is underdeveloped and characterized by mismatches and poor marketing. The objective of this project is to improve the processing (packing) and marketing side of fresh potatoes for domestic use, and by doing so to also change retailer and consumer behaviour. The project involves the establishment of an ISO 22000 certified facility for washing, grading, retail-packing, cooling and marketing of potatoes under private label. In addition, the project will invest in the promotion and distribution of selected varieties in the major supermarket chains and the hotel and catering sector, each with different characteristics and use for the consumer. The packing facility will be built 70 km north from Cairo along the Cairo −

Alexandria road, not far from potato growers in the Delta. At the end of the pilot the project will process and market 10,000 tons of retail-packed potatoes per year, with an annual turnover of € 2.2 million. Potatoes will be sourced from the local partner and GlobalGAP certified contract farmers. Applicant is Agrico UA (Emmeloord) and local partner is Maba Ltd an agricultural production & trading company in Egypt. Partners will establish a joint venture in which Agrico holds 25% and Maba 75% of the shares. The project is innovative as in Egypt the value chains for fresh produce for the domestic market, here potatoes, are underdeveloped. The project involves not only technology transfer, but also introduces new marketing concepts for promoting the potato as a staple crop. By doing so, the impact of this project is expected to be much wider and of strategic importance. Potatoes are a more sustainable substitute for rice and wheat because of low water demand during cultivation. Therefore the project is expected to contribute to the Egyptian macro policy of self-reliance in (basic) food crops.

Page 54 of 244

Results

• Result 1 : Inception phase and joint venture registration. • Result 2 : Engineering and building construction, installation of all machinery and

equipment. • Result 3 : Marketing plan and brand development. • Result 4 : Business development of fresh-pack potatoes and sales to supermarkets. CSR aspects

Both partners have integrated CSR / HRM policies and internationally recognized certificates for food safety and environmental management. This will also be the case for the joint venture (GlobalGAP certified potatoes, ISO 22000). Impact


The project foresees follow-up investments of € 700,000 for expansion of the grading and packing lines. In addition, to increase the volume to 20,000 tons per year the production hall will be expanded. The expected annual turnover in the second year after completion of the project − and with follow-up investments − is € 3.3 million compared to € 2.2 million at the end of the pilot. The longer term target (4 to 6 years after PSI) is 40,000 tons per year.


During the project period 35 permanent jobs will be created of which 15 are medium / higher staff. This will be respectively 47 and 17, two years after the project. Benefits for employees are safe and hygienic working conditions, above average salaries, overtime payment, 3 meals per day, medical insurance and training. Maba has the intention to also provide staff housing near the processing / packing facility within the next 2 to 3 years. The project will indirectly − through Maba Ltd − engage

50 contract farmers. In addition the project will give structural income to suppliers of e.g. packing material, spare parts and operation and maintenance.

Transfer of knowledge Training in Maba Retail will occur across the organization. Along with ISO 22000 certification, new technologies, production and marketing concepts are introduced. Contract farmers of Maba Ltd will receive some training as well, especially in post harvest handling methods. Farmers are GlobalGAP certified.

Chain effects Structurally, the applied value-chain approach will result in efficiency and quality gains along the chain. This will apply to primary producers as well as to retailers. The concept also serves as an example for other fresh produce value chains and relates to the economically and politically highly important issue of Egypt's self reliance for affordable and safe basic food products.

Page 55 of 244

Environment Environmentally the project is sound. Production for the domestic market under GlobalGAP ensures more sustainable cultivation methods. The packing facility is ISO 22000 certified which also ensures minimization of negative impact on the environment (e.g. water purification). If successful in the long run in changing consumer habits towards using the potato as a substitute for wheat and rice, this will have strong environmental impact as well. Particularly in terms of optimization of Egypt's scarce water resources (water requirement for production of 1 kg of potatoes is 10% compared to 1 kg of rice).

Position of women The project will have non-discriminatory policies for female employees. At least 50% of them will be women and this also applies to medium-/high-level staff.

Page 56 of 244

Egypt

PSI09/EG/22 Growing Radish in the Egyptian desert for the EU

and CEE markets

Location Wadi El Natroun

Sector Horticulture / Agro-processing

Applicant Zwin Brothers B.V., Monster, The Netherlands

Local partner Al Ahram Co. for Cultivation and Land reclamation S.A.E., El Sharqia & Cairo, Egypt




Goal of the project

To introduce commercial radish growing and packaging in Egypt for sales in export markets with a production of 1,400 tons at the end of the project.

Summary

Egypt has a fast growing horticultural export sector for supply to European markets (both EU and CEE markets). To expand its share in the global market, Egypt needs to diversify the product range and assure highest quality and year round supply. Radish is a crop that is hardly known in Egypt and commercial production offers opportunities for both the export and domestic market. This project primarily targets the export market. The project will start GlobalGAP certified conventional cultivation of 10 ha of radish under irrigation, as well as the construction and operation of a modern HACCP certified processing / packing house, and the distribution to EU / CEE markets and possibly Gulf States. During the project a feasibility study will be carried out to comply with SKAL directives for organic production, which is the ultimate goal of the partners. At the end of the pilot, production will be 1,400 tons of packed radish with an annual turnover of € 1,750,000. Applicant Zwin Brothers B.V. (1983) from Monster is a grower, importer and retail-packer of radish for the EU / CEE markets. Local partner is Al Ahram Co for Cultivation & Land Reclamation Ltd (1981) from Egypt. Partners will establish a joint venture. The project is innovative as in Egypt radish is not grown and marketed on a commercial basis, neither for the local nor export market. Transfer of know-how and technology is high. The project will contribute to diversification of the horticultural sector in Egypt and will put Egypt on the map as an international player in this market segment. Results

• Result 1 : Establishment of the joint venture company. • Result 2 : Cultivation equipment, cold storage and post harvest handling services

operational and employees trained. • Result 3 : The joint venture is completely operational.

Page 57 of 244

CSR aspects

Although a formalized CSR policy document for the partners was not submitted or mentioned in the Application, it appeared during verification, that both companies have "informally" incorporated many CSR related issues into their day-to-day business activities. This applies e.g. to workers' conditions, environ-mental sound practices and community relations, and is also reflected by the various certificates both companies have (e.g. HACCP / BRC, GlobalGAP). The joint venture will work accordingly and a more formal CSR policy document will be added as one of the project's sub-results in Result 3. Impact


In the follow-up phase the cultivated area will be expanded with 10 ha (or 20 ha in case of organic production due to requirements for rotation). This amount requires an extra investment of € 450,000. This will increase by 50% if organic cultivation will be practised as more land is needed in a rotational system. The expected annual turnover in the second year after completion of the PSI pilot is € 2.8 million (against € 1.4 million at the end of the pilot).


During the project 14 people will be employed (19 after 2 year follow-up) which reflects the rather capital intensive (mechanized) character of the investment. To a large extent, the high level of mechanization is common to international practice of radish cultivation and packing, and the demands for high quality, safe end-product without skin-damage. Although relatively low in number, all employees are skilled labourers and within the Egyptian context (horticultural sector), should be classified as medium / high. All are involved in operation of equipment / machinery and will receive training accordingly. Al Ahram's employees are well paid (much higher than elsewhere in the sector for comparable positions) and provided with many secondary benefits, incl. medical insurance and a pension scheme. The vast majority of staff has already been with the company for 15 or more years. This reflects the company's staff policy to invest in human resources and give attractive remuneration packages as an incentive for workers' performance and loyalty. The joint venture staff will have the same package and will work in a safe and clean environment.

Transfer of knowledge All training and other transfer of know-how regarding the cultivation of radish, packing technology and operation of international markets (for radish), is new to the country.

Chain effects The project is expected to have a positive impact on the chain or sector as it will allow for diversification. Radish is a new crop and if successful in penetrating the international market, other growers will follow. The project will also give income to suppliers of farm inputs, packaging materials and spare parts. With a modernizing retail sector and changing consumer habits, radish may also very well find a promising domestic market.

Page 58 of 244

Environment The environmental aspects in this project are related to cultivation practices and use of water resources for irrigation. As for irrigation, each and every borehole requires a permit from the Egyptian Ministry of Water and is subject to an EIA carried out by the same Ministry according to Egyptian legal provisions. The actual use of water for irrigation (and pesticides), will be optimized through Application of the Dutch "Dacom" system. A high-tech satellite connected monitoring system with sensors and weather stations to monitor plant requirements on a daily basis. This system is already in use by Al Ahram for other crops. Production will be GlobalGAP certified which means reduction of pesticides. During the project partners will carry out a feasibility study for organic cultivation under SKAL directives. If feasible, production in the follow-up phase will shift towards organic. In 5 to 10 years from now, the project is expected to use Nile water (instead of ground water), as the area is to be connected to a multimillion USD World Bank project, to build canals from the Nile to the desert west of the Delta.

Position of women The joint venture will be an equal opportunity employer. Female employment is expected to be at least 50% of the staff employed.

Page 59 of 244

Ethiopia

PSI09/ET/01 Blueberry cultivation in Ethiopia

Location Gurage


Applicant Petruhan Trading and Investment Ltd, Caudan – Port Louis, Republic of Mauritius

Local partner Linssen Roses Ethiopia PLC, Addis Ababa, Ethiopia




Goal of the project

To set up a blueberry farm to produce fresh blueberries for the European market. Summary

The world market for blueberries has been growing strongly over the past 5 years; the total production acreage increased from 29,000 to 48,000 ha worldwide over this same period. The blueberry belongs to the high-value crops, not at least because of its antioxidant qualities. The berries are harvested from the end of April until September at the Northern hemisphere and from September until February in the Southern hemisphere. As the berries cannot be stored long, there is a period of at least 1 month that no fresh berries are available on the market. This creates an opportunity for blueberries from Ethiopia, as its climatic conditions are mainly determined by altitude. By choosing the right location and varieties, berries from Ethiopia can be brought on the market at a moment that no other production region can supply berries. The project partners will start a blueberry farm for the export market in Europe. The applicant company is the horticultural trading company Petruhan Trading and Investment Ltd from Mauritius. A joint venture will be established with Linssen Roses Ethiopia PLC. Strategic marketing and knowledge partners in this project will be Frankort & Koning B.V., its daughter company All Seasons Fruit (ASF), as well as Veens Blauwe Bessen. Results

• Result 1 : Preparation phase. • Result 2 : Evaluation of the adaptation of blueberry plants. • Result 3 : Observation of berry productions and first transport. • Result 4 : Second planting and MPS-GAP certification. • Result 5 : Marketing and Export. CSR aspects

The new venture will implement a CSR policy for its personnel including health and safety issues, environmental and food safety, dealing with corruption and a corporate social

Page 60 of 244

involvement initiative. The company will encourage the establishment of an employee committee in order to discuss ideas for improvement of the company. Impact


The company will extend the farm in the two years after the PSI phase.


The company will employ 1 farm manager, 3 medium-level managers, 100 permanent employees for planting, weed control and pruning and 220 seasonal workers for soil and bed preparation, construction of hail net structures, blueberry harvesting and packing. This will increase to 15 management employees, 350 permanent employees and 720 seasonal jobs two years after PSI. The salary for basic-level workers will be increased annually by 8%. Secondary working conditions include medical care and child care for their family. Employees at management level and the foremen will receive training in employee management, leadership and dealing with responsibilities. A HIV / AIDS prevention programme will be organised, including awareness raising and free condoms. Training will be given on safety on the work floor, personal safety, product safety and hygiene.

Transfer of knowledge The handling of soft fruits according to GAP and HACCP procedures is new for the employees involved, as well as the technical trainings on blueberry cultivation.

Chain effects Local carton box factories and refrigerated transport companies will benefit of this project as at the end of the project already 35,000 boxes of 5 kg are needed for export purposes that year.

Environment An Environmental Impact Assessment will be implemented. However, blueberries are not prone to many diseases or pests, so hardly any chemical control is needed. As much as possible biological control will be implemented. Also not many fertilizers are needed in comparison with other crops. MPS-GAP certification will be started during the project. Frankort & Koning will assist in the processes to obtain other necessary certifications as IFS, BRC or HACCP.

Position of women Nearly all employees will be female, including the farm manager and some of the supervisors. Out of the 220 seasonal workers, 145 will be women. All work teams will be of equal gender, including the foremen and women.

Other impact After the successful finalization of the third result, the company will contact representatives of the local community to reach an agreement on financial support. The company will donate € 10,000 per year over a period of 5 years to improve schooling and medical conditions of the community. Within this framework, the community is free to decide on what specific activity or materials they want to use the donation.

Page 61 of 244

Ethiopia

PSI09/ET/03 Developing the market for protein rich soy products

in Ethiopia

Location Durqam (40 km southeast of Addis Ababa)

Sector Agro-processing

Applicant Export Trading Company Ltd, Nairobi, Kenya

Local partner DI Patel Co., Addis Ababa, Ethiopia

Third partner Seba Foods (Malawi) Ltd, Lilongwe, Malawi




Goal of the project

To set up a soybean processing plant in Durqam for the production of Tasty Soy Pieces. Summary

With a fast growing population, Ethiopia faces challenges to provide enough healthy and nutritious food to its (young) population. Soya-based products are protein rich products which can be a healthy supplement to the local diet and can substitute meat. The joint venture of the Kenyan Export Trading Company Ltd (applicant), the local partner DI Patel Co. and the Malawian Seba Foods Ltd aims to set up a soya processing plant in Durqam, directly employing 75 people. For the purchase of (non-genetically-modified) GMO-free soya, an outgrowers scheme will be set up with 5 farmer cooperatives involving 250 soya producers. The farmers will be supported with seeds and crop advice. The processing plant will produce soya based products like Tasty Soy Pieces (TSP), enriched with essential minerals and vitamins, which can be used as a meat substitute in regular dishes. The products will be distributed through a network of local wholesale companies and will be sold at a retail price approximately 25% lower than the price of meat, also in reach for people with lower purchasing power. Results

• Result 1 : Joint venture between DI Patel, Export Trading Company and Seba Foods founded.

• Result 2 : Building and warehouse constructed and related infrastructure completed. • Result 3 : Soy processing lines installed and plant operational. • Result 4 : Management and staff trained and suppliers of soybeans supported. • Result 5 : Sales and business development. CSR aspects

A CSR policy will be drafted, including work safety, salary payments, secondary working conditions, health policy and compliance with environmental standards. A CSR audit (ETI / SA 8000) will be done. General agreements on salaries and working conditions, defy child labour and applying of gender neutral and non-discrimination policy will be made in

Page 62 of 244

collaboration with the labour union. Furthermore, the project will be HACCP certified and it will apply all GMP principles. Impact


The follow-up investment concerns doubling of the capacity of the processing lines and expansion of the warehouse.


At the end of the pilot project 22 medium-/high-level workers will be employed, 53 basic-level workers and 15 temporary workers. In addition, 250 outgrowers will be involved in the project. Two years after the pilot 35 medium-/high-level workers will be employed, 90 basic-level workers and 25 temporary workers. The wages will at least be 50% higher than the minimum wages. Secondary working conditions are free meals, payment of overtime, HIV / AIDS awareness activities and testing, free counselling, health insurance and assistance with childcare.

Transfer of knowledge The training will enhance people's working skills, especially with HACCP and GMP. Special attention will be paid to marketing and sales and an extensive marketing campaign will be developed. This will be a valuable experience that is not much developed in Ethiopia.

Chain effects The processing plant will require an increasing amount of soybeans. Therefore it is of huge importance that the project invests in stable relations with a growing number of soybean producers (through provision of seeds, crop advice, stable prices, easier access to credits). Moreover soybeans enrich the soil and can be used for crop rotation (stimulated by government and NGOs). A new distribution network needs to be created to sell TSP. Wholesale companies will be contracted to distribute TSP to shops and outlets. At the end of the chain the consumer will profit, as protein rich food products will come on the market, which can supplement and replace expensive meat.

Environment At the start of the project an Environmental Impact Assessment will be done. Hereafter, the necessary investments will be done to minimize environmental impact. HACCP and GMP will guarantee that the joint venture operates under international standards. The training for small farmers will focus on efficient use of fertilizers, pesticides and water, resulting in very limited impact on the environment.

Position of women The company will have a preferential policy to employ women, especially in the marketing department, quality control department and administration. The aim is that 10 to 15% of the workforce is female. Many women work in the soy production in rural areas. During outgrowers' training, special attention will be paid to the position of women.

Page 63 of 244

Ethiopia

PSI09/ET/04 Breeding roses on the African continent

Location Debre Zeit

Sector Horticulture / Floriculture

Applicant De Ollies B.V., De Kwakel, The Netherlands

Local partner Olij Roses Ethiopia plc, Debre Zeit, Ethiopia

Start project 01 June 2009

End project 31 May 2012


Goal of the project

To start a rose breeding farm of 0.6 ha in Ethiopia. Summary

Currently, 40% of the worldwide cut rose production takes place in Africa. However, up to 2009 all rose varieties are bred in Western Europe. These varieties are not adapted to the climatologic circumstances in Africa, mostly resulting in lower prices for the African roses at the international markets. This project will introduce rose breeding to Ethiopia, leading to improved new varieties in terms of resistance, yield and vase-life. As such, all rose growers in the regions close to the equator will benefit from these new varieties, strengthening their international competitiveness. A joint venture will be started in Debre Zeit between the Dutch rose breeding and production company De Ollies B.V. and Olij Roses Ethiopia PLC. Results

• Result 1 : Set up of joint venture. • Result 2 : Breeding facility built and equipped. • Result 3 : Pilot production. • Result 4 : Project completion. CSR aspects

The joint venture will obtain the following certificates: MPS ABC and SQ, Fair Flowers Fair Plants FFP and the certificate of EHPEA. These certificates take into account all aspects of CRS. Impact


After project completion the project partners will construct a propagation greenhouse of 6,000 m2. After project completion the company will start propagating plants themselves to be able to deliver plants directly to the rose growers, besides working with the already established propagators.

Employment and At the end of the project 15 people will be employed by the

Page 64 of 244

working conditions company, of whom 7 at high- and medium-level. Total employment will increase to 65 people as a result of the investments in the propagation unit. The minimum salary paid to the production workers will start at Birr 12 per day, which is Birr 3 higher than the minimum in the sector. Working conditions will be according to Fair Flower Plants standards. The company will provide subsidized lunches and will provide work clothes and transport services. Health care costs will be reimbursed by the company.

Transfer of knowledge All knowledge related to the breeding process and its registration procedures is new for Ethiopia and involves higher skilled people.

Chain effects This project introduces the missing link in the rose production chain in Ethiopia. All African growers will benefit from this activity as higher quality roses are expected to result in increased market prices for the African roses. Further, the new varieties will give higher yields per plant. It will make the African rose growing sector more competitive.

Environment It is expected that the project will have a positive impact on the environment in the regions where roses are being produced. This is due to the fact that the new varieties will be less sensitive to diseases, so there will be less need to use pesticides. In the case of the joint venture, an EIA will be conducted and production will be certified according to MPS ABC, SQ and FFP.

Position of women The impact on the position of women will be positive as the management (administrator and agronomist) will be female and most of the employees as well (12 out of 15).

Other impact The new company will implement social projects such as assistance to start a school.

Page 65 of 244

Ethiopia

PSI09/ET/23 Pilot composting in Ethiopia: Soil fertility, Ecology

and Rural Development

Location Ziway

Sector Biological agriculture

Applicant Rhea Holding B.V., Waddinxveen, The Netherlands

Local partner Farm Organic International Private Limited Company, Addis Ababa, Ethiopia




Goal of the project

Setting up a composting plant to produce organic compost with a maximum production capacity of 40,000 m³ organic compost per year and sell this organic compost to farmers, coops and unions in the region of Ziway.

Summary

Due to extensive use of artificial fertilizer, the soil in the region Ziway has become exhausted, while on the other hand about 85% of the people are dependent on agriculture for their employment. The result is decreasing yields for the farmers which they try to compensate by using even more intensive farming methods. Soil & More, daughter company of Rhea Holding B.V. (applicant) will set up a joint venture with Farm Organic International Plc (local partner). The core business of the joint venture is the sustainable and economically-viable production of a high quality and environmentally-friendly compost. The partners are planning to produce commercial quantities of compost using the green waste of roses. The partners will get these input from rose farmers in the region of Ziway, turn this into organic compost within 8-10 weeks, and sell this to the same rose farmers and other private farmers, small-holder farmers, coops and unions. There is no other existing organic composting plant in Ethiopia which produces organic compost with the proposed technology of Controlled Microbial Composting (CMC). Results

• Result 1 : Set up joint venture. • Result 2 : Establishment facilities, recruitment and training. • Result 3 : Human Resource policy, training. • Result 4 : Certification and business development. • Result 5 : Sales and completion.

Page 66 of 244

CSR aspects

Besides the environmental impact of the project the joint venture is going to implement a CSR policy which contains social standards including a gender policy, employment standards, working manuals on "salary and wages", working conditions (health and safety programme), rural development (during the implementation of the project a parallel farmer support programme will be run together with local NGOs). Further, the production process will be qualified with an Eco Cert or another European equivalent. The organic compost will be validated by TUV Nord. Impact


The planned follow-up investment will be used to increase the input capacity to 40,000 m3 per year. The investment will be used for further professionalising facilities, machinery and equipment with higher capacities. Furthermore the project partners plan to cooperate with small-scale cooperatives to set up small-scale composting sites throughout the country. Since the transport of input is relatively expensive, it is better to set up several small-scale compost sites. Besides setting up compost sites, another object of cooperation of SMI and FOI will be the carbon and water foot printing services.


At the end of the pilot project, the amount of full-time employees will be around 40 people. Five of them will work in the management of the composting facility and 35 people will be employed as production employees, operating the machines, trucking, loading and other type of work. Two years after ending the project the amount of employees will be 60. The wages will be at least 10% higher than the minimum level of Ethiopia. The joint venture will use a HRM policy, which will include working conditions like limited working hours and HIV / AIDS preventing programme.

Transfer of knowledge The knowledge of organic farming and composting is not well developed in Ethiopia. The technical knowledge about composting and organic farming and skills acquired for the production of compost is new. Also the joint venture will introduce working conditions based on Western standards. Furthermore the management will be trained based on Western standards in accounting, monitoring and technicalities. The project will raise environmental awareness. Besides the influence on the direct employees of the compost site, local farmers will be invited to visit the production facility and also 50 small holder farmers will be trained in sustainable farming.

Chain effects The raw materials will come from the 8 rose farmers, whose waste problem will be solved. The customers, private sectors, coops union, will benefit from the project because their yields will increase by using the organic compost for their land.

Page 67 of 244

Environment The joint venture proposes a biological process. Obviously this project will have a positive impact on the environment since the use of chemicals and pesticides will be reduced. Also the enormous amounts of waste which are currently being dumped and start emitting methane, a greenhouse gas which is a lot stronger than CO2, will be reduced. SMI designed a composting system that complies with UN standards for CO2-emission reduction projects. Another big problem which is being addressed in this project is the increasing water scarcity. The farmers can save significantly on their water irrigation using the organic compost which will be produced by the joint venture.

Position of women Women will be hired in technical, administrative and laboratory positions whenever possible. Emphasis will be given to the development of knowledge and skills of women.

Other impact The project will improve the quality of the agricultural ground in Ethiopia. Also, the health impact is huge since it cleans the air and removes the bad smell of the waste in the surrounding area.

Page 68 of 244

Ethiopia

PSI09/ET/25 LaserTech Ethiopia Ltd; Ethiopia's first recycling

and remanufacturing company of cartridges and

toners

Location Tefke, Sebetta township

Sector Industry: recycling (non chemical)

Applicant LaserTech Kenya Ltd, Nairobi, Kenya

Local partner Rina International Trading Plc., Addis Ababa, Ethiopia




Goal of the project

To set up a cartridge and toner recycling facility which on full capacity will recycle 42,000 toner cartridges, 16,800 inkjet cartridges and 42,000 ribbon cartridges. Summary

Per annum at least 4,800,000 cartridges and toners are imported into Ethiopia. Duties are extremely high and recycling and remanufacturing of cartridges in a responsible way are non-existent. The applicant Lasertech Kenya and the local partner Rina International Trading Plc. propose to set up a cartridge and toner recycling facility equipped with specialized machinery for refurbishment and testing in Tefke, right next to Sebetta township, Ethiopia. The joint venture will be named Lasertech Ethiopia. The partners distinguish a favourable climate to start up this business in Ethiopia. They indicate a significant need for affordable cartridges and toners of good quality, a shortage of foreign currency to pay for imports, plus very high duties and taxes of about 50% on imports of cartridges and toners. The environmental impact of this project can be significant, since currently most cartridges and toners are being dumped in the garbage. Via this project, the project partners want to create environmental impact and inform citizens about the consequences of dumping the cartridges and toners. Results

• Result 1 : Project inception. • Result 2 : Construction of factory. First steps in awareness campaign, marketing and

promotion of recycling of cartridges and toners. Collection system set-up will be started.

• Result 3 : Purchase, installation and testing of hardware. • Result 4 : Knowledge transfer. Training of all staff. Promotion / marketing of the new

company brand. Awareness campaign. • Result 5 : Pilot production and business development.

Page 69 of 244

CSR aspects

LaserTech Ethiopia will offer a solution to the current dumping of cartridges and toners which is very environmentally unfriendly. The company will incorporate an environmentally responsible way of handling their waste disposal. The partners will work together with Close the Loop, an Australian recycling company with the specific goals of recycling toner and inkjet cartridges, to recycle the plastic parts that finish as waste. The ink waste will be recycled for the use of dying textiles and the production of shoe polish. Further the partners aim to implement a CSR-policy which will include social standards like competitive salaries, health protection, health care programmes, food, child care for women and personal care. At the farm of Golden Rose which is beside the project premises, there is a clinic, a school and a nursery (day-care) for staffs' children. Impact


The first planned follow-up investment two years after the end of the project will be used to invest in upgrading with the latest technology. Furthermore, the partners will invest in the increase of staff, training of staff and collectors, purchase of equipment items and more vehicles. When the partners have developed a stable and known brand, they plan also to offer maintenance and repairs of computers, refurbished printers, printer maintenance contracts, hardware maintenance contracts and network solutions. The aim is then to establish a "One-stop-shop". Finally, the partners aim to expand their business with the export to Sudan and win East African tenders. This will require marketing and setting up offices in other countries.


In total, 30 jobs will be created, of which 8 are basic-level jobs and 22 high-level jobs. The total number of jobs two years after the end of the project will be 38. The number of indirect employment is estimated at 28 jobs. Two years after the end of the project this will be about 52 indirect jobs. Forty to 50 persons will be hired as collectors and will work on a commission basis. The partners will provide with good working conditions and benefits to serve their employees.

Transfer of knowledge The employees will acquire new skills and knowledge in the field of remanufacturing and refurbishing cartridges. This technical know-how is currently not present in Ethiopia.

Chain effects The parties that will benefit from the joint venture's activities are the customers who currently have to purchase imported cartridges and toners. LaserTech will also provide smaller companies and private persons with cartridges, who currently cannot afford them. Third parties, like shop owners and independent collectors will benefit from this project since their income will rise and new job opportunities will be provided.

Environment This project will set an example and create awareness for the

Page 70 of 244

public. Currently all damaged and non refillable cartridges and toners end up in the garbage. Toner is a very fine powder which is cancerous and is so fine that it can penetrate the skin and enter the bloodstream directly. Inhalation of toner is also dangerous. A lot of toner and cartridges have a selenium drum. Selenium has a very negative impact on the environment. LaserTech Ethiopia will maintain appropriate measures regarding public health, hygiene, solid waste, liquid waste, sewage, water usage and energy saving.

Position of women The project will strive to employ at least 60% woman.

Other impact The involvement of the company New Start to recruit and train employees provides for an extra social dimension to the project. For the employment of employees, New Start focuses on recent graduates and socially excluded groups like long term unemployed, older people, HIV / AIDS infected working in the sex industry, handicapped and undereducated people. Furthermore, the cartridges and toners will be sold under an Ethiopian local brand.

Page 71 of 244

Ethiopia

PSI09/ET/27 Farming for the future

Location North west of Debre Zeit (Bishoftu town)

Sector Animal husbandry modern / intensive

Applicant Flier Beheer B.V., Barendrecht, The Netherlands

Local partner Holland Dairy Plc., Debre Zeith, Ethiopia


End project 01 January 2013


Goal of the project

Set up of a mixed farm that produces annually a maximum of 9,925 tons of animal feed products and 430,000 litres milk in Debre Zeit Ethiopia.

Summary

Ethiopians have used milk as part of their diet for centuries. Most of the milk is produced by rural small-scale farmers. Although Ethiopia has the largest livestock population in Africa, the total milk production is very low in comparison with other African countries. This is caused by the low average yield of 166 litres per cow per year. The constraints the dairy sector is dealing with are poor dairy genetics, animal diseases, availability of feed and fragile markets. This project will introduce good quality fodder crops for dairy farmers and will show improved animal husbandry practices at farm level. Applicant Flier Beheer B.V. from The Netherlands will start a strategic alliance between Alfa Farms and the dairy processing factory Holland Dairy PLC. in Debre Zeit. Alfa Farms will produce fodder crops for cattle like Lucerne, maize, triticale, grass and fodder beets and sell the Total Mixed Ration feeding to at least 500 small scale farmers in the area around Debre Zeit, enabling a 50% reduction of feed costs per litre milk produced. A demo farm will be started in Debre Zeit with the objective to show and train farmers how to improve animal husbandry practices, leading to higher milk production. As such, the project will improve the dairy chain around Debre Zeit area. Results

• Result 1 : Project inception phase. • Result 2 : Farm buildings constructed. • Result 3 : First forage crop harvested. • Result 4 : First milk delivered. • Result 5 : Farm fully operational. CSR aspects

The applicant started his activities in Ethiopia 10 years ago with a drive of poverty reduction. However, as a real entrepreneur he believes this can only be achieved on a sustainable way if you do that by running a successful company.

Page 72 of 244

Alfa Farms is a partner in the joined efforts in Debre Zeit of several Dutch business people. The profit of the company will be reinvested to continue the expansion of forage and food production. The company will implement integrated crop management principles, work according to a Human Resource Management handbook including a code of conduct. Impact


The project partners will do an extra investment by importing additionally 100 heifers, by increasing the area for fodder crop production with 100-150 ha and to start a farm shop.


In total 62 people will be employed and 100-200 people will have seasonal jobs. Out of the 62, 12 will be on medium and high management level. Two years after PSI this will be 25 managerial level, 80 people at operational level and 200 to 600 seasonal workers. The latter depending on the type of crop. The basic salaries will be 12% above locally paid wages for comparable jobs. The HRM and salary policies include employee discount on farm products, extra hours are paid, farm meals, free education and training, personal development planning including management trainings, free first aid and a health care prevention plan, free birth assistance for women and paid maternity leave, voluntary HIV prevention programme and testing, collective transport, child care on the farm, free English lessons, safety standards.

Transfer of knowledge New skills and knowledge level acquired by local employees will be measured by recognised certificates. At the start of the project qualifications of each employee will be documented. As a result of the education and trainings received from Alfa Farms, the employees' level of acquired knowledge will be tested by the Hope University. However, the knowledge on forage production will be new for Ethiopia. At least 500 farmers will be trained in animal husbandry practices.

Chain effects The sales of forage to the animals will result in higher milk output per cow, as well as in lower feed costs per litre milk produced. Therefore, the farm income of at least 500 small scale farmers will increase. Secondly, the dairy factories in that region will be able to source more and better quality milk closer to the factory, enabling them not only to expand the production, but also to change to high-value dairy products. With a substantial increase of milk production in Ethiopia, there is less need for import of milk powder, saving foreign currency. In future, by the export of Lucerne hay foreign currency will be generated.

Environment An Environmental Impact Assessment will be executed during the first result. The forage will be produced according to Integrated Crop Management principles. It is expected that the impact on the environment will be neutral.

Page 73 of 244

Position of women 6 out of 12 management positions will be held by women; however the positions will be open for men and women. The seasonal workers will mainly be women. In total 150 women will be involved. On-farm child care will be started. Alfa Farms will cooperate with Hidi Clinic, offering emergency help and delivery assistance to women. Alfa farms will support women by organising empowering discussions.

Other impact Alfa farm will supply drinking water to the neighbouring community on an accessible place.

Page 74 of 244

The Gambia

PSI09/GM/21 Establishing local production of metal building and

construction materials in the Gambia

Location Greater Banjul

Sector Industry: metal

Applicant Finish-Profiles B.V., Purmerend, The Netherlands

Local partner MA Trading Ltd, Banjul, The Gambia




Goal of the project

To establish a local production facility for steel and sheet metal building and construction materials, parts, kits and turnkey buildings, offering 6 different types of profiles and metal sheets and at least one standardized construction package for residential buildings, to the local market.

Summary

In the Gambia housing supply is not able to keep up with the population growth, especially in urban areas. Major factors hampering the development of the housing sector are a lack of building and construction materials, landownership issues and problems with housing finance. Applicant Finish Profiles B.V. from the Netherlands is a specialized producer of steel profiles, wall panels and roofing sheets for use in pre-fabricated constructions of houses, offices, warehouses and industrial buildings. Local partner MA Trading from The Gambia is involved in trade of all sorts of construction and building materials, both for the local market and for the export to other ECOWAS countries. Steel profiles and roofing sheets are already being imported to the Gambia, but in order to bring these products at affordable prices, the partners now want to invest in a local manufactory for metal building and construction materials. The partners will establish a joint venture and initially will focus on the local market. The project will be located in one of Gambia's Economic Free Zones, which gives the partners the tax exemption advantage over imported building materials. By seeking cooperation with the Social Security & Housing Corporation and local banks and real estate developers, the partners intend to help and ease the current issues with insufficient housing supply. Results

• Result 1 : Establishment of the joint venture. • Result 2 : Manufactory operational and employees trained. • Result 3 : Joint venture completely operational.

Page 75 of 244

CSR aspects

The partners will respect the ILO instructions and guidelines. The factory will become ISO 9001 certified. Minimum wages and working hours will be in accordance with the Gambian Labour Act. In addition, the partners realize that providing building materials at affordable prices alone is not sufficient to solve the housing problem in the Gambia. They will therefore seek cooperation with national and international organizations involved in housing issues, like UN Habitat, in order to solve land ownership and financing issues for the poor. Impact


In the two years after the PSI project phase the partners will invest another € 420,000 in an own factory annex office building made of their own construction material, and in employing and training a second shift of personnel. The partners will continue their cooperation on a fifty-fifty basis and intend to fully reinvest their earnings in additional production capacity in the first 5 years of the company's existence.


At the end of the project the joint venture will be employing 19 people (15 metal workers, 1 designer-engineer, 1 marketing and sales and 2 administrative-financial). Two years after the project an additional 15 metal workers will be hired and an additional designer-engineer or marketing-sales person. The salaries paid will at least be in line with minimum wage levels. On top, all employees will receive health insurance. Furthermore, the joint venture will aim at complying with global good practices.

Transfer of knowledge The concept of prefabricated building is new to the Gambia. This project introduces new contemporary production technology and design, structural calculation and planning tools to enable this new kind of building. The designer-engineer and the metal workers will be trained in designing and working with blueprints and advanced machinery, in a way that is currently not known in the Gambia.

Chain effects This project will be the first professional production site of steel and metal building and construction materials in The Gambia. This will affect the construction sector as more building opportunities will become available at a lower price. By introducing the modular building concept of prefab houses, buildings can be built faster and customized to any demand. This will have positive impact on the construction sector in general.

Environment The impact on the environment is neutral. In fact, the prefab houses are better insulated than normal houses and therefore easier to keep cool. This will save on energy costs for air-conditioning.

Position of women The partners will strive to employ 50% women.

Page 76 of 244

Other impact The joint venture will cooperate with local educational organizations and offer practical trainee positions for students. Furthermore, the partners will actively seek cooperation with organizations involved in improving affordability of good housing and shelter, such as Shelter Afrique, the African Housing Fund and UN Habitat.

Page 77 of 244

Ghana

PSI09/GH/02 Vehicle Testing in Ghana

Location Tema and Brong Ahafo Region

Sector Transport industry

Applicant Van Leeuwen Test Systems B.V., Etten-Leur, The Netherlands

Local partner Toptech Drive Consult Limited, Accra, Ghana




Goal of the project

To contribute to road safety in Ghana by establishing the first automated licensed Vehicle Testing Station in Tema with a capacity of 30,000 tests per year and a new licensed mobile Vehicle Testing Station for the Brong Ahafo Region with a capacity of 20,000 tests per year. Summary

Ghana's vehicle fleet is in a very unsatisfactory state which results in unsafe situations. In combination with driver's misbehaviour, it is the cause of an extreme high level of road accidents. The Driver Vehicle and Licensing Authority (DVLA) of Ghana introduced a more rigorous and comprehensive roadworthiness examination and certification system, based on European methods. It includes safety issues and emission levels. The new vehicle testing standards are to be implemented at new Vehicle Testing Stations, to be built and operated by licensed private sector parties. Toptech Drive Consult Ltd (TDC), local partner of this PSI project, obtained one of these licenses. Together with the Dutch applicant Van Leeuwen Test Systems B.V., they aim to set up the first automated Ghanaian Vehicle Testing Station. Although DVLA has already issued licenses to private sector parties, due to the high risks, none have so far actually set up a testing station. This PSI project can set the example in setting up commercially operated high quality testing stations. The partners will also operate a mobile testing unit in the less dense populated region of Brong-Ahafo. The project will create 54 direct jobs. Furthermore it will create additional work and income for repair workshops and suppliers of vehicle spare parts, because it is foreseen that a significant number of cars will fail the tests. To prevent conflicts of interests, DVLA prohibited testing stations to provide vehicle repair services. Results

• Result 1 : Business foundation / project inception. • Result 2 : Fixed vehicle testing station and training facility established and staff trained. • Result 3 : Mobile vehicle testing station set up and staff trained. • Result 4 : Business development and certification.

Page 78 of 244

CSR aspects

The project will raise awareness on road safety in collaboration with the Global Road Safety partnership. The joint venture's internal process will be ISO 9001 certified, assuring that it, on top of the national standards, is working according to international quality standards. The partners aim to work according to a high CSR profile. Corruption in relation to car test results for example, will be prevented by not letting the car owner meet the inspector. Generous remuneration packages will be provided to retain staff (good salary, health care system, taking part in the Collective Bargaining Agreement of the transport sector and workers' union). In addition a Social Fund will be established to which 10% of the annual net profits will be transferred. This fund will be used for social projects for staff and for community projects. Impact


The partners are committed to a long term cooperation. In the spin-off phase the capacity of the Vehicle Testing Station in Tema will be doubled to 6 testing lanes. In addition at least 3 new stations (x 3 testing lanes) will be set up elsewhere. This would bring the joint venture's capacity to 15 lanes enabling inspection of 25% of Ghana's vehicle fleet. The required follow-up investment will amount to approximately € 4,000,000. The project partners are considering to operate the new Vehicle Testing Stations under a franchise formula through which other operators can participate under the joint venture's overall license. The joint venture could also provide the required technology and technical assistance to the franchisees.


At the end of the project period 54 people (8 high-level, 23 medium-level and 23 basic-level) will be employed by the joint venture. Two years after the pilot 202 people (31 high-level, 86 medium-level and 85 basic-level) will be employed.

Transfer of knowledge VLT will introduce new knowledge on the use of modern test technologies and technical performance of private and commercial vehicles. Staff especially has to be trained in logistics and work-order to make sure that the run-through time per car is at its shortest, without compromising quality and effectiveness of the test.

Chain effects The joint venture's activities will be strictly separated from car repair services. Therefore, mechanics and car technicians will take advantage of the fact that (more) failed vehicles need repair services or replacement of parts.

Environment The joint venture's operation itself will have little to no impact on the environment. The only waste will consist of cars that failed the test and cannot be repaired, and for which the car owners are responsible. Indirectly the initiative will bring improvement to the environment as, on the long run, vehicles need to comply with the emission standards.

Position of women The project partners will positively discriminate the recruitment of female staff. Approximately 20% of the workforce will be female.

Page 79 of 244

Other impact The project will, on the long run, contribute to road safety in Ghana, with a positive influence on the accident rate, leading to less injured and death people and less (financial) losses.

Page 80 of 244

Ghana

PSI09/GH/21 Volta Fruits: joint venture for Tropical Fruit

Processing in Ghana

Location Liati, Volta Region

Sector Agro-industry

Applicant Afropa Nederland B.V., Zeist, The Netherlands

Local partner Volta Fruits Estate Ltd, Accra, Ghana



Total budget € 1,485,000 (50% PSI contribution =€ 742,500)

Goal of the project

To establish a fruit infusion and drying plant with the capacity of processing 140 tons of infused products per year for export to the European market. Summary

The local partner Volta Fruits Estates Ltd (Volta Fruits) and small farmers in the Volta region produce mangoes and pineapples. As the fruits, and especially mango's, often do not meet the international requirements for fresh exports, large quantities go to waste because there is no large local market. To create a new market for mango's, a plant will be set up in Liati to process fruits into infused dried tropical fruits. The end product will primarily be exported to Europe for further application in the food processing industry. The new factory will be located on the mango and pineapple farm of the local partner. The applicant company Afropa Nederland B.V. (Afropa) has a strong European network to market the products. The technology on fruit infusion will be brought in by third partner Agriplan. Results

• Result 1 : Inception phase and formalization partnership. • Result 2 : Construction of fruit processing facility. • Result 3 : Marketing and business development. CSR aspects

The joint venture will offer good and safe working conditions, at least in accordance with ILO standards. No child labour will be allowed. A HR policy will be implemented, including housing, meals, medical care, transport, training, education, maternity leave and child care. The employees will be encouraged to join trade unions and meetings with management staff. Equal rights and opportunities for men and women will be offered. An environmental impact assessment will be included in the first result of the project. The new factory will obtain the following certificates: ISO, Fair Trade and HACCP.

Page 81 of 244

Impact


To double the capacity of the factory € 950,000 will be invested in the two years after the PSI project. The investment will mainly be done in extra production lines. The investment partners have committed themselves to a long term cooperation.


At the end of the project 30 (25 basic-level and 5 medium-/ high-level) people will be contracted by Volta Fruits. Two years after the project this will be 90 (80 basic-level and 10 medium-/high-level). Employees will be offered a meal during lunchtime and protective clothing.

Transfer of knowledge The transfer of new knowledge will mainly be focussed on fruit preparation and processing according to international standards. Furthermore several farmers will be trained on improved tropical fruit production.

Chain effects The processing facility will create a new outlet for mango's in Ghana, for mango's which do not respond to export requirements and would otherwise go to waste as local demand is smaller than supply. At least 20 farmers will be involved in the supply of fruits.

Environment The impact on the environment will be neutral. In the first result of the project an impact assessment will be executed.

Position of women The impact on the position of women will be neutral.

Page 82 of 244

Ghana

PSI09/GH/23 Establishing a high value certified production chain

for extruded floating fish feed

Location Vicinity of Tema

Sector Agro-industry (fish feed)

Applicant Raanan Fish Feed Ltd, Ashrat, Israel

Local partner Sefa & Jane Agro Chemicals Ltd, Kumasi, Ghana




Goal of the project

Establishment of a fish feed factory for the processing of 3.5 tons extruded floating fish feed per hour for sales on the Ghanaian market, and for export to neighbouring countries.

Summary

In the Ghanaian fish sector, fish feed for commercial fish production is imported. This makes the feed quite expensive. Since the fish farming sector is growing, the increasing need for fish feed creates opportunities for the development of local fish feed production. Therefore the project partners aim to set up a fish feed factory in Tema. Local production would reduce the cost for the feed, as costs for transport, insurance and clearing will be avoided. For the production of fish feed, primarily local products will be used. Therefore a lot of indirect employment will be created among farmers. The applicant Raanan Fish Feed ltd (Raanan) in Israel is already exporting fish feed to the Ghanaian market. By starting production in Ghana, it wants to expand its Ghanaian market and the market in Benin and Nigeria. Sefa & Jane Agro Chemicals Ltd (SJAC) will set up a joint venture with the applicant. The local partner currently distributes Raanan's fish feed and provides trainings to farmers. During the project the local partner will also train local farmers on how to grow the crops which are input for the feed, while Raanan will train fish farmers on aquaculture. Results

• Result 1 : Business structure established. • Result 2 : Production facilities operational. • Result 3 : Staff recruited and trained; fish farmers' school established. • Result 4 : Farmers trained and contracted. • Result 5 : Business development and certification.

Page 83 of 244

CSR aspects

The joint venture will implement a HR policy as currently applied at Raanan Israel. The partners will provide a safe and healthy working environment according to OHSAS. The company will be ISO 9001 and 14000 certified. Medical insurance, transport and lunch meals will be offered to the employees. Chain responsibility is taken seriously for upstream as well as downstream activities with the aim to contribute to a sustainable business. Impact


Once the plant is established, follow-up investments of € 1.0 million are foreseen to enlarge the capacity in order to expand the existing market and to target new markets such as Burkina Faso, Cameroun, Gabon, Ivory Coast, Senegal and Togo. Moreover, the joint venture wants to gradually convert from conventional production into organic production.


At the end of the project 33 people (15 basic-level and 18 high- level) will be contracted at the factory. In total 150 jobs will be outsourced of which 3 farmers (organizations) will be subcontracted for the supply of raw materials. The other outsourced positions are in transport, clearing, legal and financial advice, technical assistance, etc. Two years after the project 63 people will be contracted (32 basic-level and 31 high-level). Moreover two years after the project, in total 40 farmer(s) organizations will be subcontracted and 12 other subcontractors will be involved in the project.

Transfer of knowledge The knowledge on the production of extruded floating feed will be new for the country and will be according to international standards on safety, health, environment and quality management. Furthermore 100 small fish farmers will be trained in aquaculture and 10 farmers or farmers organizations in agricultural production.

Chain effects The fish feed will become easily available, of better quality and cheaper which can give a boost to fish production in Ghana. Indirectly employment will be created for farmers who will supply the plant with soya and corn.

Environment The impact on the environment will be neutral. Energy saving measures will be taken and water recycling and filtering technologies will be used. Furthermore extruded floating feed is less polluting than pelletized feed that sinks to the bottom. For catfish feed only MSC fish by-products will be used. For Tilapia feed no fish by-products will be used, but poultry by-products.

Position of women Female employment will be positively discriminated. The joint venture aims to recruit 40% female employees.

Other impact Micro finance schemes will be set up for farmers with the assistance of the fish farmers association. Furthermore the project is substituting the import of extruded floating fish feed.

Page 84 of 244

Kenya

PSI09/KE/03 Breakthrough in solar energy manufacturing in

East Africa

Location Nairobi

Sector Energy

Applicant Ubbink B.V., Doesburg, The Netherlands

Local partner Largo Investments Ltd, Nairobi, Kenya




Goal of the project

To start the first East African manufacturing plant for polycrystalline (PV) modules with a production of 15,000 modules at the end of the pilot.

Summary

East Africa is a fast growing (import) market for solar energy applications and Kenya in particular is leading in this respect. However growth figures dropped over the last few years due to the particular composition of technological solutions and modules supplied and the segmentation of the consumer market. This project will contribute to the further local (and regional) development of this sector, by establishing the first production plant for high quality poly-crystalline PhotoVoltaic (PV) modules in East Africa. In addition, a low-voltage mini-Solar Home System (SHS) will be developed and introduced to the market at a revolutionary price. The project introduces high-tech laser and lamination production technology and expects to be a catalyst for further development of the solar chain. Laser technology is applied to convert rejected but reusable solar cells from European factories into mini-cells. Partners in this new venture are: Applicant Ubbink B.V. from Doesburg which is part of the Centrotec Group of companies and local partner the Kenyan company Largo Investments Ltd in cooperation with its 100% subsidiary Chloride Exide Kenya Ltd. The project is highly innovative. There is no production of solar modules in East Africa yet; all systems are imported. The project involves a high element of technology transfer and training and will benefit urban and rural households. It is also expected to result in policy changes to arrive at a more favourable investment climate for local producers of solar energy applications, and a further deepening of the solar system producer and consumer market. Results

• Result 1 : Set up of joint venture. • Result 2 : Production facility built and equipped. • Result 3 : Pilot production and training. • Result 4 : Completion of the project.

Page 85 of 244

CSR aspects

Both partners have integrated CSR policies and an excellent reputation in this respect. As for the applicant, CSR in a wider context is – next to sound commercial interests – one of the drivers behind this project. The following aspects will be part of the project's CSR policy: • Staff Code of Conduct, attractive salaries and sound labour standards. • Health and safety policy (favourable package including basic medical insurance). • Sound environmental standards, reduction of negative environmental impact. • Human rights, anti-corruption, product quality and chain responsibility. Impact


Follow-up investments of € 1,050,000 are projected during the two years after completion of the pilot. This includes investments of € 400,000 in a second production line; € 150,000 to invest in development of new high-end applications, and € 500,000 for investments to enter the market of grid-connected solar systems. The expected annual turnover in the second year after completion of the pilot is € 2.90 million (€ 1.45 million due to the PSI investment).


During the project 32 people will be employed of whom 5 are medium / higher staff. This will be respectively 48 and 9, two years after the pilot. Wages are considerably higher than the minimum for similar positions in the local manufacturing sector. Side benefits include training, lunches at work, performance related and annual bonuses, housing allowance, medical cost reimbursement, transport from home to work and a pension scheme. Working conditions are good with ample attention to occupational health and safety. The joint venture will develop a staff Code of Conduct in line with the existing Code of CEKL.

Transfer of knowledge All training related to the production process is new to the country. Modern technologies and production concepts will be introduced. The extensive training package foreseen in this project will importantly contribute to new knowledge and skills for employees across the organization.

Chain effects The establishment of a local production unit for high quality solar modules is expected to have a profound impact on this sector, both in terms of supply, but – equally important – by pushing the boundaries of the market much further. This is particularly true when the mini-SHS proves to be a success on the market and shall become in reach of new groups of consumers, who could otherwise not afford it. It is further anticipated that the example of high quality local production by a professional partnership, backed by conducive fiscal government policies, will invite others to invest in the sector, thus crowding-in new players in the market and making it even more competitive and innovative. Parties benefiting in the long term are distributors / retailers, system integrators, end-users (households and small businesses, schools, hospitals who are off-grid) and local producers of components. The project expects to give structural work and income to minimal 3 sub-

Page 86 of 244

contractors or other suppliers of goods and services.

Environment The project will have a positive impact on the environment as solar energy will, to an important extent, replace the use of batteries and kerosene. A limited EIA will be carried out prior to construction of the production facility. NEMA certification also includes environmental screening, next to an inventory of occupational health and safety risks.

Position of women The percentage of women in almost all positions is expected to be 50% and possibly even higher at production level due to the required accuracy in this high tech environment. Women will get the same remuneration package as men for similar positions and are entitled to pregnancy leave.

Other impact Widespread use of solar systems will have a positive effect on the productive capacity of households and small businesses who are now off-grid, which applies to over 70% of Kenya's population, particularly in the rural areas.

Page 87 of 244

Kenya

PSI09/KE/04 Introducing seed based propagation in the Kenyan

cut flower sector

Location Naivasha

Sector Horticulture

Applicant Bloom B.V., Amstelveen, The Netherlands

Local partner Stokman Rozen Kenya Ltd, Naivasha, Kenya



Total budget € 913,000 (50% PSI contribution = € 456,500)

Goal of the project

Introducing seed based propagation in the Kenyan cut flower sector by establishing a fully integrated seedling propagation unit for Lysianthus. Summary

Kenya is one of the largest exporters of cut flowers. The local flower market in Kenya is maturing and deepening in the sense that, as a spin-off of primary production, more and more segments of the chain are being developed and commercialized in a professional manner. Besides, service related activities are initiated and brought to international standards (agro-inputs, packaging, laboratory services, integrated pest management, etc). This project aims to capitalize on these dynamics by establishing a local seed-based seedling propagation business for selected cut flowers, in particular Lysianthus. This will replace expensive overseas imports of seedlings on which Lysianthus growers in Kenya currently totally depend. The project will construct a modern fully-integrated seedling propagation unit (4,000 m2) at the premises of Stokman Rozen Kenya Ltd in Naivasha. Production will be 400,000 seedlings per week. Applicant Bloom B.V. from Amstelveen is a flower marketing company and was established in 2005. The local partner is Stokman Rozen Kenya Ltd (1995) from Naivasha. Partners will not establish a joint venture company but will sign a joint business agreement. The project is new for Kenya and will bring in new technology and knowledge. It is an important step forward in chain management in the flower sector. It will replace costly imports of seedlings, thus contributing to a more competitive sector, and reduces the possibility of bringing plant diseases into the country. Results

• Result 1 : Joint business founded. • Result 2 : Propagation unit constructed and operational. • Result 3 : Training / technical support to management. • Result 4 : Sales and business development.

Page 88 of 244

CSR aspects

The project will comply with Stokman's CSR policy, Kenya Flower Council standards and MPS. Production will be such that higher-up in the chain, flower growers can comply with Fair Trade standards if so required (NB: the scope of Fair Trade certification does not (yet) include plant material propagators). The project will be NEMA-certified, which includes an assessment of occupational health and safety and environmental impact. Impact


The project anticipates follow-up investments of € 1.5 million during the two years directly after completion of the pilot. This amount is sufficient to double the floor space of the propagation unit (from 0.5 to 1.0 ha) and to increase production from 400,000 to 900,000 seedlings per week. The expected annual turnover in the second year after completion of the pilot is expected to increase to € 2.35 million. Both Bloom and Stokman Rozen consider the involvement in the joint propagation venture as an important part of their long-term business strategy.


During the project 42 people will be employed, of whom 5 are medium/higher staff. This will be respectively 75 and 6, two years after the project. In addition the project will employ 10 seasonal staff (15 during the 2 year follow-up). Wages are higher than the legally minimum wage and workers have attractive secondary benefits, like: overtime pay, protective clothing, housing allowance, leave travel allowance, paid annual leave, free basic medical services, schooling for workers' children, HIV / AIDS awareness and counselling.

Transfer of knowledge Most training related to the production or propagation process is new to the country. Specific agronomic knowledge will be provided by Ball USA / the Netherlands. Modern technologies and production concepts will be introduced. The project will pay ample attention to quality control and certification (GlobalGAP / MPS). The training package foreseen in this project will cover all this and shall bring new knowledge and skills for employees across the organization.

Chain effects The project is expected to have a positive impact on the chain or sector. It will allow the sector to diversify, will make it more innovative and will reduce costs for growers of Lysianthus and related varieties. It will also reduce the risk of bringing in plant diseases through imports. All these benefits will make the sector more competitive. Other beneficiaries of the project are local suppliers of substrate, fertilizers, micro-elements / organisms and pesticides.

Environment The project will comply with the requirements of NEMA and GlobalGAP / MPS. Both pay much attention to environmentally friendly production methods. E.g. under GlobalGAP / MPS the use of pesticides and fertilizers is subject to strict regulations. Stokman Rozen has a purification system for treatment of

Page 89 of 244

waste and irrigation water. This system will also be used for this project. The local production of seedling will replace weekly imports thereby reducing air cargo movements.

Position of women As much of the work in a propagation unit will require accurateness, care and dedication, the majority of employees (75%) will be women. The project will have non-discriminatory labour policies for female staff.

Page 90 of 244

Kenya

PSI09/KE/05 Production and marketing of flower care products

in the Kenyan floriculture industry

Location Nairobi

Sector Industry: light manufacturing

Applicant Global Floral Technology Group B.V., Naarden, The Netherlands

Local partner Lachlan Kenya Ltd, Nairobi, Kenya




Goal of the project

Production and marketing of flower care products in Kenya, by establishing a modern certified production facility for solid and liquid products, and advisory services and marketing at field level. Summary

Kenya is the largest exporter of cut flowers to the European market. Proper post-harvest handling and treatment is a requirement to satisfy the demands of auctions, retailers and consumers. The use of products that retard deterioration and wilting of flowers directly after harvesting and during transport is essential. Besides, flower bunches and bouquets packed in Kenya need to be supplied with sachets of flower food that enhances the vase-life for consumers. The project will transfer its production and distribution/support activities for large clients in Kenya, presently served directly from Naarden in Holland, to Nairobi Kenya. The production facility in Nairobi will be certified and comply with the international Chrysal Code of Practice for the manufacturing of flower care products (fluids and sachets). At the end of the pilot project the annual production will be 10,000 to 15,000 litres of liquid pre-treatment products and 50 to 60 million sachets (5 to 10 grams). Partners in the new venture are applicant Global Floral Technology Group B.V. based in Naarden, holding company of the Chrysal Group and the local partner Lachlan Kenya Ltd, a distributing agent for agricultural inputs for Kenya and East Africa. Partners will establish a joint venture private company named Flower Care Kenya Ltd. The project is innovative as there is no certified production facility in Kenya or East Africa, providing the range of products and advisory services as proposed in this project. The sector relies heavily on imports. The project involves much technology transfer and training. It will also contribute to a more competitive floriculture sector, due to cost-reduction in the supply of flower care products, and improved post-harvest management in the flower chain. Results

• Result 1 : Project inception, joint venture. • Result 2 : Production for liquid, solid flower care products set up. • Result 3 : Warehouse, distribution, sales system in place.

Page 91 of 244

• Result 4 : Marketing and advisory services developed. • Result 5 : Business development / project completion. CSR aspects

Both partners have integrated CSR policies and so will the joint venture. The project will be in compliance with the Ethical Trade Initiative Base Code (ETI). In addition, special emphasis will be on environmental care at the production site and on environmentally sound production methods amongst its clients. Impact


The project anticipates follow-up investments of € 750,000 during the two years after completion of the pilot. This will concern the expansion of the liquid production line (with conditioning products and additional pre-treatment solutions), expansion of the warehouse and establishment of a small laboratory and vase-life testing room. The expected annual turnover in the second year after completion of the pilot is € 1.35 million.


During the project 24 people will be employed, of whom 8 are medium / higher staff. This will be respectively 36 and 17, two years after the pilot. Benefits for employees are: attractive and safe working conditions, above average salaries, overtime payments, lunch and basic medical insurance. Measures to safeguard sound occupational health and safety standards consist of protective clothing, industrial vacuum cleaners, exhaust hoods, climate control and ventilation, and special precautions for the storage and handling of hazardous chemicals. The project will comply with the ETI Base Code.

Transfer of knowledge All training related to production, warehousing and advisory services is new to the country. Modern technologies and concepts will be introduced across the organization. The Chrysal Code of Practice and the ERP software will guarantee continuous quality control of production and sales. The extensive training package foreseen in this project contributes to new knowledge and skills for employees across the organization.

Chain effects At sector level, this project will contribute to an internationally competitive floriculture sector in Kenya. Besides the project will source products and services from local companies, such as part of the raw materials (chemicals), packing material, cliches. Work will be outsourced to service providers in ICT, maintenance and repair, legal and administrative services.

Page 92 of 244

Environment The production facility will have environmental protection measures equivalent to those at the production facility in Baarn. The products themselves are subjected to strict pesticide and biocidal regulatory rules, including labelling and user-instructions, guaranteeing safety for the user and the environment. Production of flower care products and advisory services near the market will lead to reduction of wastage of cut flowers up to 10% from grower to vase.

Position of women Flower Care Kenya will be an equal opportunity employer. Female employment is expected to be circa 25% of total staff with opportunities especially in the administration and extension sections.

Other impact The project will set up a social development fund. Yearly a local development project will be supported through this fund. The identification and selection of the project will be a joint decision of the management and the workers.

Page 93 of 244

Kenya

PSI09/KE/24 Kipini Swahili Eco-lodge

Location Kipini Conservancy

Sector Tourism

Applicant Princeps Management Consultants B.V., Hoenderloo, The Netherlands

Local partner Nairobi Ranching Company Ltd, Kipini, Kenya




Goal of the project

The preservation, maintenance, and development of the Kipini conservancy by implementing a concept in which conservancy, tourism, and community involvement are integrated. At the end of the project a turnover of € 1,5 million will be realized and 1,500 guests will be received. Summary

The Kipini conservancy is located in the northeast of Kenya, and consists of an area of 220 km2. The conservancy links the coastline to the hinterland and is part of a connected migration corridor for elephants and other species. The size, geographical location and biodiversity of conservancy are unique and recognised as ecologically and biologically outstanding by the WWF. The project partners have developed a concept in which conservancy, tourism, and community involvement are integrated and interconnected. This concept is already successfully introduced with a PSOM grant in Ethiopia. The joint venture will develop and exploit lodges and tourist activities, and thereby generate income for conservancy and local communities. A separate entity, The Kipini Wildlife and Botanical Conservancy (KWBC), will be responsible for maintaining and developing the conservancy. The consortium will contribute a minimum of 25% of his profit, an average of € 150,000 per year, to the KWBC. The local communities will be an essential part of the tourist activities. Touristic potential in the communities (Orma tribe, Kipini women's group, Fishery Association Kipini) will be developed, together with the consortium, what will lead to steady income for the locals. They will also ad to the maintenance of the conservancy by the sustainable use of it. A joint venture will be established between Princeps Management Consultants and Nairobi Ranching Company with share division and division of own contribution of 50%. The project frame is 30 months, the project budget € 1,500,000. Results

• Result 1 : Set-up of joint venture. • Result 2 : Project development and architectural drawings, constructional drawings,

contracting and hardware selection.

Page 94 of 244

• Result 3 : Eco-lodge site built and fully equipped. • Result 4 : Pilot operation and training of employees. • Result 5 : Completion of the project. CSR aspects

The whole business concept is set up around environmental sustainability, ecological conservancy, ecotourism, inclusion of the local community and capacity building of the local community. The joint venture will follow the internationally recognized ETI Base Code regarding the basic working conditions. In addition they will provide free lunches, payment of medical care insurance, education and professional training, access to HIV / AIDS prevention, family planning programmes, housing and transport to and from the lodge. Furthermore, the ecolodge will be certified by the Eco Tourism Society of Kenya, which guarantees a sustainable approach with regard to energy (solar/wind), waste disposal and the design and construction of the lodge. An Environmental Impact Assessment (EIA) will be executed at the beginning of the project. Impact


After the project, the joint venture will invest in expansion of the capacity of the lodge. The joint venture will invest in another 15 units and 3 tented camps. Besides 2 additional and cruisers will be needed. Total investment costs for these investments mount up to € 810,000.


36 full-time jobs will be created. In addition employment will be created in the local communities. They estimate that 150 indirect jobs will be created in the local communities at the end op the project. The joint venture will follow the internationally recognized ETI Base Code. Following working conditions will be provided by the joint venture: • Good salaries. • Company lunches. • Medical care insurance / reimbursement of medical costs of

employees. • The opportunity of education and professional training. • Access to a HIV / AIDS prevention and family planning

programme. • Transport to and from the lodge. • Housing.

Transfer of knowledge This project introduces a new business concept to Kenya, in which conservancy, tourism, and community involvement are integrated and interconnected. All stakeholders, including guests, will be taught about the concept, on their own level: • Employees will receive training in the principles of the

concept. • The inhabitants of the involved communities will be trained

in the development of sustainable economic activities and the sustainable use of the conservancy.

• Guests of the lodge (the tourists) will be offered the opportunity to learn about the concept, the unique characteristics of Kipini and the local community culture and

Page 95 of 244

traditions.

Chain effects Parties that benefit directly from the project on long term are: • Employees, by having the opportunity for a secured long

term job. • Local communities around the conservancy, by having

opportunities to generate income from tourist activities. • KWBC, by receiving a steady flow of income for the

maintenance and development of the conservancy. • Tour operators, by being able to offer new activities /

locations. • Tourist accommodations in the region, by spin off effect and

enhancement of the attractiveness of the area.

Environment The central aim of the project is the preservation of the natural environment of the Kipini conservancy. The lodge will be designed by a professional eco-architect to fit as harmoniously as possible into its natural environment. In the design, as many natural materials as possible will be used. State-of-the-art sustainable solutions will be used regarding energy (solar energy, wind energy), water (use of rain-water for flushing toilets, waste water treatment by means of helophyte filters), and waste disposal (a waste treatment and separation system will be considered).

Position of women At least 50% of the workforce will be female. They will be trained and educated. Furthermore, the Community Cultural Tourist Clusters (CCTC) will be managed by local women's groups. Since women will be managing the clusters, mainly women will be trained, in the field of management and creating sustainable income generating economic activities.

Other impact Enhancing the touristic attractiveness of the broader region. Enabling continued conservancy of the site.

Page 96 of 244

Malawi

PSI09/MW/22 Establishment of a Diagnostic Centre in Malawi

Location Lilongwe

Sector Health care

Applicant DRC Medical B.V., Beesd, The Netherlands

Local partner Medical Consultants Africa, Lilongwe, Malawi




Goal of the project

The project partners will establish an (outpatients) imaging and diagnostic centre where a variety of services, including CT scanning, MRI scanning, X rays, Ultrasound, Mammography and Laboratory referrals, will be offered to the population of Malawi. Summary

Currently the medical services available in Malawi are of a very poor quality. The project partners would like to establish a modern outpatient imaging and diagnostic centre to improve the overall standards of the medical diagnostics services in Malawi. At the same time this project fills a gap in the local health care sector. Currently there are no modern imaging and diagnostic services available, forcing patients to go abroad in order to get a medical diagnosis. The applicant in this project is the Dutch registered company DRC Medical B.V.. The local partner is the Malawi registered company Medical Consultants Africa (MCA). The diagnostic centre will be established in Lilongwe, the capital of Malawi. The investment partners will establish a joint venture. Results • Result 1 : Organizational structure established. • Result 2 : Equipment installed. • Result 3 : Recruitment and training of employees. • Result 4 : Commercial exploitation. CSR aspects

The imaging and diagnostic centre will adhere to international quality standards. The clinic will be certified according to the rules and regulations of the 'Clinical Governance' certificate. This certificate intends to embody 3 key attributes: recognisably high standards of care, transparent responsibility and accountability for those standards, and a constant dynamic of improvement. Furthermore, the centre will develop a pro policy. The clinic will also treat the low income Malawian households for a strongly reduced tariff. The centre will seek cooperation with NGOs or other organizations for the referral of these patients.

Page 97 of 244

Impact


The project partners will extend the variety of services of the centre in the near future and in due time hope to transfer it into a small private hospital.


At the end of the project the joint venture will employ 37 people. The clinic will employ at least 3 radiologists, 5 lab technicians, 6 radiographers, a microbiologist, a biochemist a haematologist and management and support staff. Two years after project completion the joint venture hopes to employ 67 people in total. The salaries the centre will offer are high in comparison to the public sector. A hygiene and safety protocol will be implemented.

Transfer of knowledge There is no or little experience with imaging and diagnostics equipment in the country, such as for example MRI and the CT scans. Further, working with hygiene and safety rules, a high service level and strict quality control, can be considered as a big knowledge improvement for the medical sector in Malawi.

Chain effects This project can introduce a higher quality of health care within Malawi and can be considered as the first step in improving the health care facilities in the country. This project can also contribute to a higher level of training of the local specialists and might prevent local doctors to look for job opportunities abroad. Further, patients who had to travel (if possible) abroad for a diagnosis can now be diagnosed locally. Following the diagnosis the doctors can decide if further treatment (outside the clinic) is necessary.

Environment The joint venture will set up a proper medical waste management system. Due to the fact that the medical centre is not involved in surgery and other patient treatment and that all scans are digitalized, the amount of medical waste is relatively low. The government does have a medical waste disposal scheme. The clinic will use these facilities to dispose of the waste.

Position of women It is expected that at least 60% of the employees will be female.

Page 98 of 244

Morocco

PSI09/MA/02 Integrated and organic production of young plants

in Northern Morocco

Location Kenitra


Applicant Grow Holding B.V., Naaldwijk, The Netherlands

Local partner Sincofel Sarl, Agadir, Morocco




Goal of the project

To set up a nursery of 3.2 ha for the production of integrated and organic young plants for farmers in Morocco and eventually Spain. Summary

The applicant Grow Holding and its local partner Sincofel will set up a joint venture in Kenitra to establish the first integrated and organic nursery (3.2 ha of greenhouses) for young (grafted) plants for sales in Morocco. In order to be able to export important food crops (especially melon and tomato) local growers need high quality plants to meet international standards. Increased market demands and restrictions (production without methyl bromide) in the use of chemicals for crop protection are threatening exports. High quality young plants are needed to use less pesticides. A demonstration greenhouse will be used to showcase farmers how to grow food crops most efficiently and organically. After the pilot project the project partners intent to expand to 6 to 8 ha, offering jobs to 200 to 300 employees. Results

• Result 1 : Start up of joint venture. • Result 2 : Section 1 and 2 of production site and demonstration site completed. • Result 3 : Start up integrated production and demonstration, section 3 production site

completed. • Result 4 : Start up organic production, section 4 production site completed. • Result 5 : Business development. CSR aspects

The joint venture aims to get a GlobalGAP certification for integrated / organic nurseries. Since this is not yet possible in Morocco they will be actively involved in setting this up with the relevant institutions. The project strives to acquire a quality and organic certification within the PSI time line. Also the first steps will be taken for ISO 9001:2000.

Page 99 of 244

Impact


After the pilot project the joint venture partners will expand to an integrated and organic nursery of 6 to 8 ha, to offer a wider range of products. This will be a € 1.0 million investment. The turnover will increase with 25% to € 5,625,000. Furthermore the partners want to invest in R&D in collaboration with Moroccan universities.


At the end of the pilot project 19 medium-/high-level employees and 54 basic-level employees will be contracted. Also 50 seasonal workers will be employed. Two years after the end of the pilot 7 extra medium-/high-level and 28 basic-level employees will be contracted. Moreover, more than 200 extra seasonal workers will be employed. The wages will be 10 to 20% above the average minimum monthly wages of Dirham 50 per day. Also health insurance and tax payments will be arranged for every employee. Good working conditions and safety procedures will be implemented according to international standards. Other working conditions staff will benefit from are medical care, housing, meals, sanitary, work clothes, education and the possibility of child care.

Transfer of knowledge The specific cultivation techniques for integrated and organic young plant production are new for the country. Also organic and / or integrated crop production for farmers will be new.

Chain effects The project will have a positive effect on the performance of farmers, for they will be able to produce more efficiently. Furthermore, their export possibilities will be preserved by producing according to organic and / or integrated standards.

Environment The reduction in use of pesticides and the reduction of production losses, and subsequently waste and resources used per plant, will have a positive effect on the environment.

Position of women The joint venture will recruit female staff members as much as possible (up to 60%), including for the higher positions.

Page 100 of 244

Morocco

PSI09/MA/21 Tissue Culture Morocco

Location Agadir

Sector Agriculture

Applicant Grow Holding B.V., Naaldwijk, The Netherlands

Local partner Sincofel S.A.R.L., Agadir, Morocco

Start project 01 November 2009

End project 31 October 2012


Goal of the project

To establish the first tissue culture young plant laboratory in Morocco to supply local growers with, eventually 2 million high quality young plants per year, from a broad assortment offering an alternative for expensive and unreliable import of young plants and seeds and to develop export of these plants. Summary

To secure their future market position Moroccan fruit and vegetable growers need to meet increasing market demands and restrictions in the use of chemicals for crop protection. In both challenges young plant material is critical for success. A production start with healthy top quality young plants is crucial to be able to use less pesticides and achieve optimal production yields. With methyl bromide for soil disinfection officially to be banned in 2015 (unofficially earlier because of demands from export food markets), there is need for uniform disease-free top quality young plants. Growers currently depend on seeds and / or imported young plants, being expensive and unreliable because of difficulties in quality control in the supply chain. The Grow Group B.V. of the Netherlands, a leading company growing and marketing young plants for vegetable farmers all over the world and Sincofel Sarl, of Morocco, part of the Azura Group joined forces in a joint venture to provide Moroccan growers with healthy and high yielding young plants. The joint venture creates a pilot laboratory for tissue culture multiplication of young plants and markets them (in cooperation with nurseries for hardening) also delivering horticultural advice to clients. First products to be supplied are artichoke, strawberry, tomato and citrus young plants. With the pilot capacity ready in 3 years, the project partners expect to be optimally equipped, having protocols implemented to successfully market the above mentioned species by a well trained staff of 25 employees. Results

• Result 1 : Set-up joint venture. • Result 2 : Lab building and management recruiting. • Result 3 : Employees recruited, building up of stock, start multiplication. • Result 4 : Start up production and sales, further recruitment and training.

Page 101 of 244

CSR aspects

Concerning labour standards and personnel policy project partners in the joint venture aims to contract mostly women (75% in total and especially in management positions) and are going to offer salaries at least 10-20% above minimum wages. All employees are going to be trained and social facilities such as housing, meals and medical care and insurance will be taken care off for employees. It is also planned to offer medical care to employees and educate them in hygiene by periodically stationing a nurse at the site and to organise consulting-hours every 2 to 4 weeks by a qualified doctor visiting the site. With respect to environment and food safety the social responsibility is evident as seen from the projects contribution to the realization of sustainable food production in Morocco. At the moment however GlobalGAP certification for tissue culture laboratory in Morocco is not possible. With respect to nursery activities project partners are actively involved in the development of a certification scheme according to GlobalGAP standards for young plant supply in Morocco (IP (Integrated Pest Management) Moroc initiative). It is the purpose of the joint venture to certify for a relevant certification scheme as soon as this is going to be available. However this scheme is not expected to be realized before the end of the pilot project. Impact


Partners have already been cooperating a long time together on the vegetable production business. They plan to continue this relationship and reinforce it with this joint venture on tissue culture. As seen from the expected market developments, the capacity of the lab will be sufficient only until the end of the project. The bottleneck in the development of the lab are the number of bench places for production. In the pilot for production 10 benches are foreseen. Within the 5 years following the pilot conclusion an expansion to 40 production bench places in total is planned. The number of bench places is going to increase gradually. Shelf and lab space created in the pilot are built to suffice up to 40 bench places, this because of the efficiency in constructing buildings and climatologic installations on a larger scale at once. This will lead to spin off investments of € 400,000 in the second year after project completion and € 1.0 million after 5 years. Annual turnover two years after the project completion will be € 1,528,000, which is nearly tripling the turnover at project completion.


During the project direct employment is going to be created for: • 1 general manager lab (high-level); • 1 assistant manager lab including administration (medium-

level); • 2 supervisors, medium preparation, production (medium-

level); • 2 quality controllers (medium-level); • 1 dispatch; • 10 production workers benchroom (basic-level); • 1 sales representative (medium-level);

Page 102 of 244

• 1 cleaning worker; • 1 greenhouse manager (medium-level); • 5 greenhouse workers including maintenance. In total 25 full-time employees are going to be contracted (8 medium-/high-level and 17 basic-level). Two years after completion of the project it is to be expected that the next phase of investment after the pilot is going to create work for another 20 full-time employees (4 medium-/high-level and 16 basic-level). Concerning labour standards and personnel policy project partners in the joint venture aims to contract mostly women (75% in total and especially in management positions) and are going to offer salaries at least 10-20% above minimum wages. All employees are going to be trained and social facilities such as housing, meals and medical care and insurance will be taken care of for employees. There is also a plan to offer medical care to employees and educate them in hygiene by periodically stationing a nurse at the site and by organising consultation hours every 2 to 4 weeks by a qualified doctor visiting the site.

Transfer of knowledge During the project all staff members are going to be trained to prepare them for their role in the management of the joint venture. They are also going to be taught to give training themselves to local staff. Local staff with all production employees will be thoroughly trained in relevant specific tissue culture multiplication techniques that are new to the country. Respectively the knowledge on the specific marketing aspects and horticultural advice in tissue culture young plant material is also new and is going to be transferred and trained to the sales representative. In general the level of education and horticultural knowledge in Morocco is relatively high. This can be an advantage in the recruitment of staff members and production workers. The training courses therefore can be very practical and on the job with a focus on: • professional tissue culture young plant production; • cutting techniques for multiplication and rooting; • hardening off techniques for tissue culture plants. These topics are all still being (for the most part) new for the country and so all employees concerned acquire new skills that enhance their knowledge and therewith position on the labour market.

Chain effects Forward chain effects: The performance of all companies in the supply chains concerned strongly depends on the quality of young plant material at the start of the chain. The establishment of a tissue culture lab for young plants contributes to a large extent to the development of these chains by:

Page 103 of 244

1. improving the market position of farmers by making them less dependent of expensive seed or import young plant material;

2. increasing production yields of farmers by reduction of production losses through offering a uniform quality, improved planning an control and low disease risk;

3. improving the market position of farmers by reduction of use of chemicals, pesticides etc;

4. a positive impact on all companies in trade and export of fruit and vegetables.

Backward chain effects: In general the successful realization of the project and therewith further development of food production in Morocco will have a positive influence on the perspective for all local suppliers in agriculture. It is clear that for the future perspectives of these local suppliers the development of the local agricultural production is of mayor importance.

Environment The positive environmental effects concern the reduction of the use of pesticides and the reduction of production losses and subsequently waste and resources used per plant produced as young plants have a basic health situation.

Position of women Because of the positive earlier experiences in Morocco with female staff, the strategy of the joint venture is to recruit female staff members as much as possible. The impact on the position of women is therefore going to be very positive. The joint venture creates jobs that require higher education and specific knowledge and expertise for mostly women. This gives them a chance on income and education in a social setting where women are forming the greater part of staff. The total workforce will consist of 25 employees of which more than 75% women.

Other impact Project partners in Morocco have undertaken several initiatives (for example sponsoring an ambulance for local healthcare in Agadir) to contribute to social improvement. The joint venture TGM will also have a positive social impact with possible future initiatives to be explored for the tissue culture lab settling down in its region.

Page 104 of 244

Morocco

PSI09/MA/22 Environmentally friendly Zelliges from Morocco

Location Khemisset

Sector Building / Infrastructure

Applicant De Tegel B.V., Breda, The Netherlands

Local partner Aquafocus Sarl, Casablanca, Morocco

Third partner Cakewalk B.V., Bergen, The Netherlands




Goal of the project

Setting up an environmental friendly and decent production facility for 32.500 m2 Zelliges per year for the export to the European market. Summary

The Dutch applicant De Tegel B.V. and the Moroccan partner Aquafocus Sarl will set up a joint venture for the responsible production of Zelliges (Moroccan tiles) in Khemisset. Traditional production of Zelliges is very hazardous for the environment and people. Moreover, child labour is used. In Fez all ovens were closed or destroyed by the army to reduce pollution from traditional ovens. This led to a decrease of Zelliges, while the international demand is still rising. This project will set an example of 'ecological' production and will transform the hazardous and polluting industry into a decent and clean industry. Environmentally-friendly gas-fuelled kilns to bake the Zelliges will be used and also non-toxic glazes will be introduced. Special attention will be given to CSR and the working conditions of the employees, which are currently far below any (international) standard. Moreover, the project will only work with adults. Current profit margins of traditional production are small because, there is 50% waste, due to production errors of traditional production methods. By using new production methods, the partners will reduce waste and produce more efficiently. Furthermore, from 2010 onwards it will be prohibited to import product containing toxic elements into the EU. Therefore, the new production method is essential for the import of Zelliges to the Netherlands. Results

• Result 1 : Establishment of the joint venture. • Result 2 : Procurement and installation of equipment. • Result 3 : Recruitment and training of employees. • Result 4 : Test production and operational phase. CSR aspects

The partners will put forward large efforts to implement CSR policy, not only because of the social impact, but also because this will lead to committed employees. The same working standards as in The Netherlands will be preserved. Employees will have a voice in the

Page 105 of 244

organization. Suppliers, which are not complying with CSR standards, will not be worked with. Further, working conditions are described at 'employment and working conditions'. ISO 8000 will be the certificate that will be applied for. In the project period this can not be achieved because of the procedure. In the final result a report of the first audit for ISO 8000 will be asked together with a contract between the joint venture and a service provider for the certification procedure. All the above mentioned certificates and standards will be put in the results. Impact


The partners know each other and do business together for years so chances are that they will continue to do so. Two years after the start of the project € 1,600,000 follow-up investment will be done. This will include among others, 4 additional gas fuelled kilns of 8 m3, pulverisers, mixers, glazing equipment, cutting machines, trucks and a pick-up. Also the factory building will be extended. Sales will be set up for purified clay and biscuits to sell to other Zellige producers. The expected turnover will grow to € 3,705,000.


At the end 55 employees will be working for the joint venture of which 3 high-, 14 medium- and 38 basic-level. After the spin-off 120 people will be employed of which 5 high-, 28 medium- and 84 basic-level. The salaries within the joint venture will at least be 120% of the minimum wages and on average 178%. Each employee will have 24 paid holidays and 13 national holidays. After a year employees will receive an indefinite contract. Free lunches and drinks will be provided. A canteen with a separate part for women with babies will be installed. Also a crèche for children will be taken care of. Free health care insurance will be offered to the employees and their children. Separate showers for men and women will be installed and working clothes, shoes, safety and protective equipment supplied. All employees will receive safety training and the safety regulations will be applied vigorously. Education of children from employees will be positively influenced.

Transfer of knowledge Environmental friendly production, safety regulations and CSR are very new in the Zelliges industry and Morocco. All employees will be trained on these subjects and on how to respect the environment in general and waste management. The largest part of the equipment will also be new to Morocco.

Chain effects If the project partners manage to make the project visible to other producers, it can set an example in terms of CSR and environmental Zelliges production.

Environment Compared to traditional production of Zelliges, the project will produce much less toxic waste. The footprint of the production will be much less on the environment already largely by the fact that under 5% of the Zelliges turns out to be discarded instead of the 50% with the traditional production methods.

Position of women Nearly 50% of the positions will be filled by women. Also in the

Page 106 of 244

high-level positions. The local partner confirms that women are much more cautious to handle expensive products as Zelliges. They are more reliable also (according to both partners).

Other impact The project will set a CSR example in the region. Zelliges production is part of Moroccan cultural heritage that should be preserved. The factory is planned to be built right in the middle of a slum area. The poorest people of Khemisset live in this area. The local partner is employing people from this neighbourhood which results in a large impact on family life. For all non-specialized workers the joint venture will recruit its personnel also here. This gives the company more safety because of the well being it creates in the neighbourhood.

Page 107 of 244

Morocco

PSI09/MA/23 The establishment of an EcoCert certified bio

organic compost plant to boost organic agriculture

in Morocco

Location Had Soualem

Sector Bio agriculture

Applicant C & A van Vilsteren, Marknesse, The Netherlands

Local partner Casa Fresh S.A.R.L., Casablanca, Morocco




Goal of the project

The goal of the project is to establish an EcoCert certified bio organic compost plant with a capacity of 30,000 tons, to boost organic agriculture in Morocco, avoiding the actually existing 'soil mining' in some regions. Summary

The project consists in the implementation of a plant to produce EcoCert certified compost that will be sold to organic farmers in Morocco in the Casablanca region. Organic farming is rapidly increasing in Morocco but no certified organic compost for organic farming is available in the country yet. Organic farmers are obliged to use manure or to make their own compost to fertilize their organic crops, or, use up the existing soil fertility without manuring at all and thus 'mining' the soil. When the soil is completely 'empty', another plot is put into organic production. Certified organic compost is a far richer fertiliser than manure or home made compost, resulting in higher harvests for organic farmers. The use of 'rough' manure for organic agriculture is forbidden for organic vegetables and potatoes sold in Britain. The only fertilizer allowed for organic products for sale in Britain is certified organic compost. This project will boost the organic agriculture in Morocco, especially export to the UK. The project is perfectly in line with the Moroccan Government's strategy to improve the agricultural sector in Morocco as expressed in Maroc Vert, the Government's strategic document to develop and improve the agricultural sector. The project will produce 30,000 tons of EcoCert certified organic compost per year and will employ 34 employees. The partners, Van Vilsteren and Casa Fresh are involved in trading the vegetables produced by the organic farmers and have both an interest in a healthy continuation and expansion of this farming system. Results

• Result 1 : Establishment of the joint venture, legal documents. • Result 2 : Site preparation and installation of equipment. • Result 3 : Recruitment of personnel and training in Egypt. • Result 4 : Recruitment of personnel and training in Morocco.

Page 108 of 244

• Result 5 : Operational phase and EcoCert certification. CSR aspects

Casa Fresh is Ethical Trading Initiative (ETI) certified. Ethical Trading Initiative is described as a partnership between companies, NGO and trade unions which aim to work together in order to define and promote some practices that are socially involved in the setting of conduct codes that lead to good working conditions. ETI is also responsible for the control and for the independent verification on the application of the codes of conduct by the suppliers. The members devote themselves to the business ethical questions and responsibility for the companies and also for the promotion of the workers' rights and human rights in general. In the field of employment, the ethics of the businesses include the efforts made to put an end to child labour, forced labour, and also the analysis of health and safety issues to improve working conditions. The ETI criteria will also be applied to this project. Impact


After the pilot phase has been implemented successfully, the production capacity will be increased from 30,000 tons to at least 60,000 tons. At the same time an additional production facility will be set up near Souss Massa, Gharb or Lokkous, depending on the availability of raw materials. Total additional investments will be € 750,000 (€ 300,000 for expansion of the pilot plant and € 450,000 for the second plant). Additional turnover will be € 2,470,000.


At the end of the pilot project 34 employees (5 high-level, 4 medium-level and 25 basic-level) will be employed full-time at the production site. Two years after the pilot project the joint venture will employ an additional 18 employees (15 basic-level and 3 medium-level) at the existing plant. At the new plant another 34 full-time extra employees (5 high-level, 4 medium-level and 25 basic-level) will be employed.This is a total of 52 additional jobs. ETI criteria will be applied to this project, assuring good working conditions for the employees. On average the project will pay the employees 252% of minimum wages. It should be noted that in general wages far less than minimum wages paid within the agricultural sector. By paying salaries even above minimum wages, this project will truly set an example of CSR. A free health care insurance will be offered to the employees and their children. Separate showers for men and women will be installed and working clothes, shoes, safety and protective equipment supplied.

Transfer of knowledge The production of EcoCert certified organic compost is completely new to Morocco so all training will cover subjects formerly unknown in Morocco. Because of the focus of the

Page 109 of 244

Moroccan Government on the development of the agricultural sector, including organic agriculture, the employees of the project will learn skills that will guarantee a job for many years to come.

Chain effects Agro industrial companies like Surac, a sugar company that makes sugar from sugar cane, produces 15,000 tons of bio waste per year. Because they have no use for it, they burn all the waste. Surac has expressed its interest to solve their bio waste problem and the project will sign a contract with them to buy their bio waste. Similar contracts will be negotiated with Nestlé and Naturex and other agro industries. Poultry and dairy farmers sell their manure as clients appear at the gate. Large parts of the year there are no clients. Those farmers are very interested in a contract with the joint venture to have their manure taken away from their farm at a regular basis. Transport companies will be hired, from the second year on, to transport the raw material and end product. An estimated 10 additional trucks with driver and aid-driver will be needed every day. A contract will be signed with a transport company. As Certified compost is a bottle neck in Organic or Bio production, the availability will give a boost to this production and all the players in the value chain involved.

Environment The actual 'mining' of fields which provokes erosion and bio degradation will be stopped with the farmers growing organic vegetables for export to Great Britain. In general, compost acts as a sponge in the soil, preserving water and minerals, so less irrigation and fertilisation will be necessary. The uncontrolled degeneration of agricultural waste produces large quantities of N2O and other nitrogenous gasses which affect global warming much more than CO2.

Position of women To improve the situation of women, the project partners will engage women where possible although the making of compost is a heavy job dominated by a male workforce. One of the managers will be a women.

Page 110 of 244

Morocco

PSI09/MA/24 Introduction of UASB technology for decentralised

wastewater treatment in Morocco

Location Kasba Tadla

Sector Water

Applicant Colsen International, Hulst, The Netherlands

Local partner Ste. Mabsout, Kasba Tadla, Morocco

Start project 01 February 2010



Goal of the project

Building a pilot sewage treatment plant based on UASB (Up flow Anaerobic Sludge Blanket) technology in Kasba Tadla as a demonstration object for the partners to market the technology. Summary

Water and clean water in particular, is scarce in Morocco. The lack of sufficient water resources is endangering the country's economic growth, as 2 of the main economic pillars, agriculture and tourism, are largely dependent on the availability of sufficient water of good quality. Traditional wastewater treatment technologies are expensive because of the high investment costs, high operational costs (electricity costs in particular) and high maintenance costs. The application of UASB technology will lead to a considerable reduction of these investments and to substantially lower operational costs. The traditional treatment plants deliver drinking water quality. The UASB plant will deliver irrigation water quality. So UASB is proposed at a comparably very low cost to deliver just a little less clean water. At this moment only a small number of wastewater treatment facilities is operational in Morocco. It is therefore expected that when taking into account the costs and sustainability of the UASB technology, the project will have a positive economic impact and that follow-up sales of similar systems in Morocco will be generated after launching of the pilot plant in Kasba Tadla. The pilot project will not only be a show case for Kasba Tadla, but also for other municipalities with similar problems in Morocco and other countries in the North-Africa an the Mediterranean. The applicant Colson B.V. is active in design and building of this kind of installations since 1989 in the Netherlands but also abroad (Cyprus, Egypt). The local partner Mabsout Sarl is a contractor active in building infrastructure for new urban and industrial areas. Part of his job is to build the sewage systems. The Partners believe strongly that there is a large market in Morocco for this technology especially with the actual back up by the Moroccan government. They will join forces in a joint venture.

Page 111 of 244

Results

• Result 1 : Formalization of the business organization by the partners and preparatory design works.

• Result 2 : Local construction phase 1. • Result 3 : Local construction phase 2; UASB components manufacturing. • Result 4 : UASB components assembly and installation (phase 3) and finishing of the

UASB reactor unit (phase 4). • Result 5 : Start-up, monitoring and analysis, training and workshops. CSR aspects

An extensive CSR package is provided for by the Partners: subjects treated are: labour standards, personnel policy, employee participation, health and safety employees, environment and food safety, chain responsibility, corruption, human rights and corporate social involvement. Impact


Partners plan to cooperate in the joint venture for many years to come. The joint venture will promote, design and sell the reactors. Building of the reactors will be subcontracted to Sté Mabsout. For the moment € 400,000 is planned as spin off investment. This investment will be used for more training of employees and offices in other Moroccan regions and logistics (cars etc). The partners believe that this is the minimum investment. Probably sales will go much faster and of higher volumes and than investments also have to be much more important. Spin off turnover is calculated at € 5,400,000, two years after completion of the project.


During the pilot phase, 30 people will be employed (16 basic-level and 14 high- or medium-level). Two years after completion of the project this will be a total of 72 employees (39 basic-level and 33 high-level). Full-time employees in the joint venture will receive a salary package that is consistent with the prevailing salary levels in Morocco. Starting point for the joint venture is that employees will receive a wage that reflects their educational background and skills, experience, responsibilities, and that it will motivate them to grow within the company. Also the coverage of expenses, health, insurance premiums, social funds, etc is considered as part of the salary package. In particular because it is expected that part of the personnel may have to be recruited outside Kasba Tadla and therefore additional travel and lodging expenses may be considered. Depending on the position it is expected that the range of salaries will be between 4,000 and 7,000 Dirham (€ 440 resp. € 775), that is for medium- and high-level personnel. Minimum wage in Morocco: Dirham 2,009.

Transfer of knowledge Most of the knowledge to build, operate and maintain a UASB reactor is new to Morocco and all this knowledge has to be transferred.

Page 112 of 244

Chain effects Especially the Agricultural and Tourist Industry will benefit from the introduction of this technology and thus by this project. National health care will also benefit. At the moment 40% of the drinking water of the city of Casablanca comes from the river in which Kasba Tadla discharges its waste.

Environment The development of Morocco's economy is largely depending on the availability of sufficient water. The 2 sectors that form the main engine of the Moroccan economy are agriculture and tourism, both sectors that have a large demand for water. While supply is limited, demands are increasing, and pollution is threatening surface and groundwater resources.

Position of women It is expected that 15% of the workforce will be women.

Other impact Whereas the project will co-operate with the technical university in Beni Mellal, it expects to be able to transfer the UASB technology to all students interested in wastewater treatment. In that way the project will be able to recruit also female students who want to build up a career in wastewater management for jobs or internships. For female students this can mean that they have access to a specialized market, which normally may be difficult to access in a country like Morocco. The Dutch LEAF foundation will use the reactor at Kasba tadla as a study object for students and research people from Universities in Morocco.

Page 113 of 244

Morocco

PSI09/MA/25 TISLI Flowers: Extended peony production for

Morocco

Location Porte d'Atlas

Sector Agriculture

Applicant De JetSet B.V., Aalsmeer, The Netherlands

Local partner Isli Flowers S.A.R.L., Rabat, Morocco

Third partner Tierra B.V., Renkum, The Netherlands

Start project 01 December 2009

End project 31 October 2012


Goal of the project

The partners want to achieve an extended production and sales of quality peonies for export in the Atlas Mountain range of Morocco on 3 different locations totalling 5 ha with outgrower farmers resulting in a final production level of 924,000 stems of peonies in from year 7 on, of the project. Summary

Peony production is actually limited by the number of cold hours the plant has to receive before flowering. This makes peonies rare outside a narrow selling season in the Netherlands as well as in the USA. By using the enormous diversity in altitudes and thus in chill hours of the Atlas mountains this project plans to bring Peonies to the market as well as before as after the normal season. The Atlas area is the most undeveloped region of Morocco with mainly subsistence farming as means of livelihood. As a lot of other crops have the same necessity on chilling, this peony operation can be the beginning of a development for this difficult region. With this project the partners want to achieve an extended production and sales of quality peonies for export in the Atlas Mountain range of Morocco on 3 different locations totalling 5 ha with out grower farmers. Within 3 years, this project will establish 5 ha of peony production at 3 locations and trial fields at different locations for future expansion. Production sites are located within 60 km range at selected altitudes for central processing. To achieve stable quality it is vital that crop care, harvest and handling will be initially coordinated and managed centrally while out growers are gradually trained and phased into the system. Production will be transported to Casablanca for export to the US, Europe and the Middle East or, alternatively by truck to Europe. Investments in hardware include planting stock of selected varieties from the EU and the States, irrigation equipment, processing storage and local logistics. The applicant company is Aalsmeer auction based and owned by a Dutch family of Moroccan origin. The local partner company is a joint venture of a Moroccan entrepreneur together with a French company owned by a Dutch individual. In Total 65 people will be employed and trained.

Page 114 of 244

Results

• Result 1 : Business establishment. • Result 2 : Initial planting. • Result 3 : Planting phase 2. • Result 4 : Capacity building. • Result 5 : Production, communication, quality management. CSR aspects

The project will be managed under good practice management by the directives of the Fair Flowers Fair Plants (FFP) certificate. This certificate covers both social directives as well as environmental directives. The FFP certificate is based on the MPS Socially Qualified certification, which has an elaborate social chapter as well as an elaborate environmental chapter. For all positions the project will be an equal opportunity employer while all key positions related to quality will be reserved for female employees. The project regards it's employees as key assets and sees medical care as a condition to corporate well being. Consequently medical care is considered a part of employment benefits. To avoid extreme inspections in the USA regarding drugs and terrorist activities, a special certification of Authorised Economic Operator (AEO) will be obtained. Impact


As one generation of a peony plantation takes between 20 and 30 years the partners do commit themselves with this project for a long term economic activity. Spin of activities with a value of € 1.0 million in the second year after the pilot phase, resulting in a turn over of an extra € 663,173, consist of; a larger acreage, continuous introduction of new varieties and cultivation of other export crops (flowers, vegetables and fruit) which need chill hours and can be cultivated in the Atlas mountains). Other micro climates in these mountains will be explored to fit other harvesting periods in line with marketing demands.


A total of 65 jobs will be created by this project including 7 of medium-/high-level. Key positions in the project will be female. Processing will be done in a shielded area away from seasonal influences. In line with the FFP requirements, workers will benefit of several secondary working conditions. These are i.e. clean and working sanitary, lunchroom and lunch offered by the employer, European standards concerning manipulation of pesticides and fertilizers, medical care and free access to trade unions and labour consultancy. Considering the importance of quality in the project we argue that quality management team is considered skilled labour and receives the required credits for this in our employment and for the project evaluation. Seasonal employment will be sourced from extended families in tradition with local customs and practises. Apart from more than average wages (10% above the local usual minimum wage) for all employees local key positions in the Quality Management Team will be rewarded with a bonus for skilled labour additional 5%.

Page 115 of 244

Transfer of knowledge Three types of knowledge will be transferred: • Agricultural (specific knowledge on how to grow export

flowers is still an unknown topic in Morocco). • Managerial capacities do exist in Morocco but not yet

abundantly in the Atlas region. • Logistic knowledge and competences are very specific for an

extremely perishable product as cut flowers and are not much available in Morocco.

Chain effects Chain effects are merely applicable to Agro- input suppliers and transport companies. The idea of growing chill hour crops in the Atlas zone can easily lead to other economic operators copying the initiative with the same or other crops.

Environment The project will rely on manual labour for crop care in stead of agro chemicals. It is the intention of the project to use no or very limited agro chemicals. However it should be noted that peonies are new to the region and pest and weed control is a result of regional environment. In case of application of any agro chemical use, workers will be supplied protective clothing and equipment in the best MPS standards. Soil conservation will be stimulated when a perennial crop is planted instead of annual crops. Furrow irrigation is commonly practised in the usual present annual crops which is unfavourable in leaching of nutrients and soil erosion. (potato, cereals and onions) Drip irrigation is more efficient on water, nutrients and plant health.

Position of women Key positions in the project will be female. The project will favour female employment for all positions. Female employment in key positions is very scarce in this region.

Page 116 of 244

Mozambique

PSI09/MZ/21 Manufacturing of granulated compound fertilisers

for the Southern African markets

Location Beira

Sector Chemical industry

Applicant Sainath international Private Ltd, Satna, India

Local partner Agro Industries Limitada, Gurué, Mozambique

Third partner Export Trading Malawi Ltd, Limbe, Malawi




Goal of the project

The goal of the project is to set up a pilot project for the production of granulated compound fertilizers for the local Mozambican market and the Malawian market. Summary

The 3 project partners will establish a fertilizer granulation plant for the production of granulated compound fertilizers in the port of Beira in Mozambique for the Mozambican and Malawian market. The applicant in this project is Sainath International Private Limited, the local partner is Agro industries Limitada and the third partner is Export Trading Malawi. The current supplies of compound fertilizers in Mozambique are mostly imported from South Africa, Asia and Europe. The remaining 15-20% of the total amount of fertilizers used, is blended by local blending companies: concentrated nutrients procured at the world market are mixed together into locally-specific fertilizers according to the N:P:K ratios required by the farmers. Blended fertilizers tend to be cheaper than imported compounds, but the quality of these fertilizers is inferior. With a granulation plant the cost benefit of blending over imported compounds are the same, but the quality of the fertilizer is remarkably better. The project partners will establish a new joint venture (named SAF) company that will operate a fertilizer granulation plant. The production will consist of 4 production lines for the production 4 types of fertilizers. Results

• Result 1 : Inception phase / business structure finalized. • Result 2 : Construction of the new fertilizer granulation plant. • Result 3 : Production of the first granulated compound fertilizers. • Result 4 : Farmers' training and fertilizer distribution in operation. • Result 5 : Business operation evaluated and expansion planned.

Page 117 of 244

CSR aspects

The partners will implement their own CSR guidelines for the project. A draft CSR-guideline has been developed and comprises a range of issues and principles including: regional development (e.g. support to a local school, improving local medical care, etc) and environmental conservation (ISO 14000 certification), support to the agricultural communities (extension of technical support and information to the members of the rural communities). Impact


The partners plan to invest € 750,000 to increase the capacity of the fertilizer plant, create additional storage and sourcing of raw materials, establish a soil laboratory and to increase the number of sales outlets during the two years following project conclusion.


During the project 43 new jobs will be created of which 7 on medium-/high-level. Two years later this will increase to 54 jobs of which 10 on medium-/high-level. The project partners will pay more than the current minimum monthly wage. In addition, at least 580 farmers will be connected to the project.

Transfer of knowledge The project will train the 43 employees of the project and at least 580 farmers.

Chain effects The project will use at least 25 subcontractors by the end of the pilot project (mainly fertilizer dealers as well as producers of the ballast products).

Environment The environmental effect of the fertilizer plant will be neutral. The project will develop environmental management procedures that will be ISO 14001 certified.

Position of women Given the nature of the operations at the fertilizer plant, the project partners expect that the majority of the employees will be male. During farming training activities and selection of rural dealers, the project partners will ensure that at least 50% of the target group will be female.

Other impact Each year, the joint venture will select a social development project (e.g. support to a local school, improving local drinking water facilities, etc) that will contribute to improving the welfare of the local community.

Page 118 of 244

Namibia

PSI09/NA/02 Strengthen the chain of fruit and vegetable

production at the ORIP farm in Namibia

Location Aussenkehr


Applicant AgroCap Invest, Ridderkerk, The Netherlands

Local partner NAMS, Aussenkehr, Namibia




Goal of the project

To set up a certified production chain of fruit and vegetable crops, including the development of a cold chain, for sales at the Namibian market as well as export to Cape Town. Summary

Applicant AgroCap and local partner NAMS (Namibian Agro Management Services) will set up a joint venture to develop a commercial production field of vegetable crops and a modern cold store. NAMS recently acquired a 10 year contract to manage the ORIP farm (Orange River Irrigation Project) in the South of Namibia. The focus of this farm has so far been on grapes only, all for export. This project will focus on producing fruit and vegetables for the local market using improved cultivation techniques, including HACCP and GlobalGAP certification. Markets to be served are local markets in the project area, as well as Windhoek and Cape Town. The joint venture will offer locally produced crops, which should replace the very expensive fruit and vegetables which are currently all imported from South Africa. Even produce from Namibia is first transported to South Africa, to Cape Town or Piketberg, because of a lack of cold storage facilities in Namibia. The project will create employment in a very remote area and will support some 20 settlers with their agricultural production. Results

• Result 1 : Setting up a joint venture. • Result 2 : Cold store constructed, equipment installed and employees recruited and

trained. • Result 3 : Production field laid out, equipment installed, cultivation plan completed. • Result 4 : Project completion and operation of the production field and cold store. CSR aspects

The joint venture considers CSR a high priority. • Labour standards will include a minimum age for employees of 16 years, working weeks of

45 hours in summer and 40 in winter and paying 150% for working on a Saturday and double on Sundays. Also, workers may consume fruit and vegetables that are produced at the field, transport will be provided free of charge. A safety plan will be implemented for

Page 119 of 244

the cold store, protective clothing is provided and employees can go to a health clinic twice a week on company costs.

• The joint venture will acquire HACCP and GlobalGAP certificates. • The joint venture is also active in Corporate Social Involvement. They will extend the

Stars in their Eyes programme to Aussenkehr. This is a community development programme, using football to promote teamwork, commitment and a healthy lifestyle.

Impact


In the two years after the pilot phase the project partners will invest at least an extra € 700,000. Follow-up investments will be done in extension of the farm and in additional business developments.


The joint venture will employ 101 people by the end of the pilot, of whom about 70 will be seasonal workers. Medium-/ high-level jobs concern 4 managers, 6 foremen, 8 in administration. All other jobs are basic-level. The 20 settlers will get support and training to extend their 2 ha grape farm with 2 ha of vegetables. Salaries will be about 25% above minimum wage. Two years after the project the joint venture will employ 137 people, of whom about 95 seasonal workers. The number of small scale farmers will increase to 30.

Transfer of knowledge The employees will all have to adhere to the standards of GlobalGAP and HACCP. The settlers will also be trained in good agricultural practice.

Chain effects The 20 settlers will benefit from this project as the vegetables they will grow, using the infrastructure and sales channels of the joint venture, will give them year-round income, instead of only during the grape season. Local stores, salesmen and supermarkets do no longer have to purchase their vegetables from Windhoek or Cape Town and will get them at a lower price. The joint venture will buy their inputs locally, from about 9 different suppliers. Inputs include packing material, transport services, fertilizers, etc.

Environment The overall impact on the environment will be neutral. The joint venture will be HACCP and GlobalGAP certified. The joint venture will implement a policy to deal with solid waste and intends to use compost instead of chemical fertilizers as much as possible.

Position of women Approximately 60% of the employees will be women. Several middle management positions in the administrative department will be available for women.

Other impact Workers of the joint venture will have the possibility to use a certain area on the farm for own production. They will be allowed to use the infrastructure and facilities that the joint venture puts in place.

Page 120 of 244

Namibia

PSI09/NA/21 FSC certified charcoal from invader bush in Namibia

Location Northern region of Namibia

Sector Energy: charcoal

Applicant Energy: charcoal

Local partner Eko Blok B.V., Almelo, The Netherlands

Third partner Jumbo Charcoal PTy / Ltd, Windhoek, Namibia

Start project Densi Tech B.V., Almelo, The Netherlands


Total budget 31 December 2011

Goal of the project

Setting up an efficient charcoal production unit using the twin retort system to produce FSC certified charcoal and briquettes. Summary

Charcoal is a popular fuel in Namibia and South Africa. In addition there is a growing demand for FSC certified charcoal in Europe. Namibia's woodlands are a particular good source of wood for charcoal production as invasive species need to be removed to restore the original ecosystem. The primary focus of local partner Jumbo Charcoal has thus far been on trading charcoal. With this project the company will be producing its own charcoal. In addition to lacking discernment with regard to selection of species, local charcoal production practice is often small-scale and inefficient. The traditional charcoal is of variable quality. Traditional charcoal production efficiencies are as low as 10 to 15%, i.e. 7 to 10 kg of wood is needed for the production of 1 kg of charcoal. The carbonization technology − the so-called twin retort technology − is far more

environmental friendly compared to traditional methods of carbonizing as emitted gas is reused and weight efficiency is 33%. The technology is new to Namibia but proven in various other countries. The twin retort technology was developed in the Netherlands by the Carbo Group, of which Eko Blok is a part of. Results

• Result 1 : Finalizing project plan and getting required permits. • Result 2 : Ordering and installation of equipment. • Result 3 : Employment and training. • Result 4 : Commercial FSC charcoal production. CSR aspects

CSR is of vital importance to the project, if not from a moral then from a commercial point of view. As the charcoal is sold to several supermarket chains in Western European countries, each has its own CSR requirements. For example supermarkets in the United Kingdom

Page 121 of 244

require ethical audits by organizations such as Veritas or Africa Now. Their focus is on labour conditions. Special attention is paid to the conditions of the workers in the factory and wood cutter safety. Environmental sustainability is a focus of the partners and is guaranteed by their commercial interest to comply with FSC standards. Impact


The amount of the additional investment will be € 1.3 million for 2 twin retort systems and additional equipment. With an estimated 200 million tons the bio-mass of invasive species is enormous and will not limit long term growth of the company.


The project employs in total 82 people, about 10 of them are already employed by Jumbo Charcoal. The other 70 are additionally employed people. Of the 82 about 13 are medium or higher level staff. Two years after the pilot phase an additional 62 people will be employed. The lowest paid workers will get € 50 per month which is about 2.5 times the normal wages for unskilled labour. The following arrangements will be made regarding conditions and side benefits: • Conditions for the workers in the factory: heat and charcoal

dust require safety regulations and preventive measures such as mouth caps.

• Wood cutter safety: sharp cutting equipment and thorny trees require handling instructions, first aid instructions and a first aid kit.

• Employees get a health insurance, admission to a pension scheme, a social fund for calamities and a credit and saving system will be established.

Transfer of knowledge All training related to the kiln operation is new for the country.

Chain effects The charcoal production chain is relatively short. The most important chain effect is therefore the partial clearing of land of about 20 large scale farms (10,000 ha each). Land that had become impenetrable for cattle will become accessible once more.

Environment Currently 26 million ha (i.e. one third of Namibia's surface area) is suffering from invasive species, locally referred to as invader bush. In contrast to the indigenous landscape, which is parkland-like, characterised by tall trees, scattered bushes and grasslands, the invasive species form thick, thorny, impenetrable bushes that are very deep rooting. Where wildlife and cattle used to feed on the grasslands, the bushes are a threat to their existence. The deep root system depletes ground water levels to levels where grassroots do not reach. The progress of invader bush finally results in desertification of the area. The project benefits the ecosystem by using the invasive species as raw material for charcoal production. Other elements of the project that benefit the environment are the use of gasses emitted in the carbonizing process, the maximum use of

Page 122 of 244

the charcoal as even the dust particles can be pressed into briquettes and the improved input output ratio compared to traditional production methods.

Position of women About one third of the employed staff will be women. Women will especially take the medium-level positions.

Page 123 of 244

Senegal

PSI09/SN/01 The establishment of a specialised hospital laundry

facility in Senegal

Location Diamnadio, Region of Dakar

Sector Medical

Applicant Ziermann GmbH, Sasbach, Germany

Local partner Senalmed SARL, Dakar, Senegal




Goal of the project

To build a laundry facility near Dakar, the capital of Senegal, to clean and disinfect medical linen and clothing serving the majority of hospitals and clinics in the Dakar region. Summary

The goal of the project is to build and exploit a cleaning company, close to Dakar, the capital of Senegal, specialized in washing / disinfecting medical linen and clothing. Customers, who have pronounced themselves in letters of intent, are hospitals and private clinics in the Dakar region. At the moment linen and clothes contaminated with blood and excrements are washed under basic conditions leading to contamination of washing personnel, medical personnel who have to work with not completely disinfected linen and clothes and last but not least the patients in the hospital itself who are already ill and therefore more vulnerable to other infections. Results • Result 1 : Establishment of the joint venture. • Result 2 : Factory building and procurement equipment. • Result 3 : Installation of the equipment. • Result 4 : Recruitment and training of staff. • Result 5 : Operational phase. CSR aspects The processing of contaminated linen can potentially be dangerous for the employees if the health and safety regulations as set by the management are not adhered to by the staff. This could affect staff, but also influence the overall performance of the company in the long run. Therefore emphasis will be put on training and daily supervision. Routine drills and control are needed to prevent potential accidents and infections. All the employees will be insured by the company. Since water is a scarce resource, it will be treated and re-used in order to reduce waste as much as possible. Waste water will be treated. ISO 90001 certification will be strived for by the project partners. Impact

Long term economic The promoters of the project clearly envision the perspective of

Page 124 of 244

activity expanding their services in the future, both within Senegal and in neighbouring countries. The project would thus also work as an incubator. Follow-up investments during the two years after completion of this pilot project will consist of: • additional medical washing equipment in Dakar: € 500,000; • establishment of own collection department with 10 small

trucks: € 300,000; • setting up of similar but smaller facilities in Kaolack,

Tambacounda, Saint Louis, Ziguinchor and Thies: € 750,000. The total amount of the follow-up investments will be € 1,550,000. These follow-up investments will create an additional 148 jobs at the respective locations.

Based upon assessment of the market potential, the promoters project an additional turnover of € 3.0 million for the second year after the pilot phase.


There will be 96 permanent jobs created of which 8 are of high- or medium-level. In addition, up to 22 contract workers will be employed for designated periods. More temporary workforce will be hired when needed to cover peak business periods. The joint venture partners are committed to pay a minimum wage that is 144% of the official minimum wage in Senegal. With regard to the working conditions, an entire set of preventive measures will be taken to prevent contamination of the personnel: • Protective tools such as gloves, mouth covers and special

clothes to put emphasis on security. Air filtration and air conditioning to provide clean air in the plant facilities and to underline the importance of security.

• Regular training sessions to emphasize security procedures. All the employees will be insured by the company as prescribed by Senegalese legislation. They will have individual and collective insurance to ensure medical coverage and social security.

• In addition, the employees will receive fringe benefits: their transportation fees will be paid by the company. There will be a canteen open during the day. A monthly school fee (€ 20 per child) will also be included.

Transfer of knowledge Because of the lack of adequate medical laundry facilities in Senegal, soiled laundry from medical establishments has been treated similarly as ordinary laundry, in spite of its high degree of contamination. This project will introduce new technology and new knowledge in order to handle those contaminated laundry correctly. The project will therefore define an overall framework for its communication, both internal and external including a permanent training programme. The overall objective here is to explain the rationale behind the innovative approach taken by Senalmed with this project.

Chain effects The project will make use of local companies that can provide detergents, transportation services, mechanical maintenance

Page 125 of 244

and packaging materials leading to an estimated indirect employment of 25 persons. The project will definitively establish a new set of standards in the laundry services in the entire West African region.

Environment Most of the waste water used by traditional laundry shops is flowing uncontrollably into the open gutters in streets and backyards. The waste water from the joint venture laundry and cleaning plant will be fully treated before being reused in the form of steam or evacuated into the public sewage system. Residues will be chemically treated and filtered before being released into the sewage system of the Diamnadio industrial complex. It should be added that the entire waste water of the industrial zone of Diamnadio is further treated before being released into the general sewer system.

Position of women Senalmed has committed itself to employing 76 women out of the total number of 96 employees. This is 83% of the total workforce. Women will have the same contracts and working conditions as men.

Other impact The project will introduce an innovative service that is not yet available in Senegal or other West African countries. Moreover, this specialized service addresses a fundamental need of healthcare establishments, namely to provide treatment of their patients in an environment where infectious germs are kept at a low level. Most of the viruses and bacteria are contracted from soiled bed sheets, towels and other textile-based items disposed of at hospitals and clinics. Most of these viruses and bacteria are resistant to traditional washing and antibiotics. The project will thus contribute directly to an improvement in the healthcare sector in Senegal. By putting into place a framework of rigid quality control and compliance with both medical healthcare norms and environmental standards for its operation, the project may also serve as a model to inspire other businesses in areas where health aspects are an important risk factor.

Page 126 of 244

Senegal

PSI09/SN/21 Farm Machinery Rental

Location Richard Toll

Sector Agriculture

Applicant Hines Industries Inc., Michigan, USA

Local partner Agrina Senegal SARL, Dakar, Senegal




Goal of the project

To launch a company that rents tractors, ploughing attachments and other farming machinery to farmers in Senegal's northern agricultural region, fulfilling the demand for farm equipment by users who cannot justify the purchase of equipment based on their own less-than-full- time needs for equipment. Summary

The project involves the set-up and launch of a professional farm machinery rental business. Project financing will be used to purchase and refurbish used machinery and equipment and to provide training and knowledge transfer in multiple facets of the business. Training and knowledge transfer modules shall be carried out on technical subjects but also on the managerial aspects of a modern equipment rental company. Following start-up and training, the project plan foresees start of equipment rentals for the 2010 pluvial growing season. Initial machinery purchased will include tractors, levellers and various ploughing, planting and harvesting attachments, as well as excavators, front-loaders, other loading equipment, and machinery and personnel transport vehicles. Results • Result 1 : Joint venture formed. • Result 2 : Set up T.A. and training. • Result 3 : First equipment purchase and start up. • Result 4 : Second equipment purchase and training. • Result 5 : Operations result and final report. CSR aspects The farm equipment rental company will strive to provide rental services to sectors of the market that are normally difficult to reach (small farmers) for financial reasons. The company has begun discussions with microfinance partners, who have voiced initial interest in working with the company to provide financing vehicles for groups and individual small farmers. As mentioned above, safety training will be carried out with all employees, and employees with customer contact will also receive training on "training the customer" to observe safe behaviour around farm machinery. The company will be an equal opportunity employer and will recruit and employee personnel without regard to ethnicity, gender, etc.

Page 127 of 244

The company will also act with integrity and transparency and will not accept corrupt practices by employees or partners. Impact


The joint venture expects to make additional investments in the two years following the project's completion, to triple the initial rental capacity of the company. The plan includes expansion to Southern Senegal and to other countries in the region. Additional investments will be primarily in farm machinery and training of additional personnel to replicate the business model and expertise developed during the Project. Estimated return-on investment after completion of the Project is € 3.0 million for expansion to additional locations using the same business model. Estimated turnover in year 4 (second year after completion of the project) is € 865,000. The partners plan to continue their cooperation both through expansion of the Farm Equipment Rental company, and by co-launching additional agriculture-related service businesses in West Africa.


60 employees will work for the company by the end of the project. The partners estimate that the company will employ 74 people, two years after completion of the project. In order to ensure safe working conditions, the company will support ongoing training for employees in safety and skill enhancement. The joint venture will also institute semi-annual reviews which will include employee feedback regarding working environment. Agrina has a special 'holidays programme' with the children of the employees. When they are free from school in the summer holidays, they are employed by Agrina and occupied with light jobs in the morning. They get classes in agronomy and other practical topics. Their 'salary' is used by Agrina to buy school books and school uniforms for them (which is in Senegal a major preoccupation for parents every year!). This has become a very popular 'vacation job' and nearly all the employees' children participate. The partners want to copy this programme also for the joint venture employees.

Transfer of knowledge The knowledge transfer of professional business processes related to equipment rental business are new to Senegal. Also, formal training on use of tractor attachments and relation of mechanical skills to agricultural techniques is new outside of a few self-contained European-owned farming operations. The concept of businesses run according to formats and processes (such as in service franchises in Europe and the USA) is new in Senegal, so the planned training in new processes, which will be driven by forms and process flow maps, will bring an enhanced knowledge level that can be applied to other service industries (including healthcare, food services and tourism-related services). The value of this new knowledge is that it provides a formula for success in execution of operating

Page 128 of 244

service businesses – and reduction of errors and irregularities.

Chain effects The primary direct beneficiaries of the project are small and mid-sized farmers and the farm workers they employ, since the Project will assist them in increasing the hectares of production per farmer, the yield per hectare of production and food quality (and therefore price). Approximately 2/3 of residents in Senegal are involved in agriculture, and over 95% of farmers have little or no access to tractors and other basic farm machinery. Based on these figures, the total potential beneficiaries of farm equipment rental service exceeds 4 million people. Small and contract farmers and outgrowers: With the initial equipment purchased for the project, 18 tractors and 5 units of earth-moving machinery, and assuming average of 1 to 2 ha per farmer served, the project can serve 1,500 to 2,000 farmers per year (based on one season per farmer) or 800 to 1,000 farmers for farmers with irrigation who are able to produce twice per year.

Environment The project will have a positive effect on the environment. The Sahel suffers from the advance of desertification, and the use of ploughs, watering systems, and agriculture with wind blocks have been shown to reverse the process of desertification. Especially in the North of Senegal , the Sahara desert is only 50 km away. Due to the presence of the Senegal river, which has its sources far away in more wet areas, agriculture has a high, but relatively little used potential. Equipment purchased for the project will adhere to the norms of Europe and/or USA in terms of exhaust and fuel usage standards. No environmental certification is required.

Position of women It is foreseen that the majority of office staff will be women, and that the majority of equipment operators, drivers and security guards will be men. Likely positions of women employees include: company manager, bookkeeper, scheduling manager. The target customers of the project include small and mid-sized farmers. Approximately 50% of farmers in Senegal are women, and the project is expected to have a large, immediate impact on the annual incomes of small farmers, via improved mechanization.

Other impact By enabling farmers to cultivate larger areas while improving the quality and yields of food produced, there is an immediate indirect effect on rural incomes and employment. The top 2 priorities of rural families are food and health. Increases in income are first spent on food and healthcare – particularly financing of quality care for childbirth.

Page 129 of 244

Sierra Leone (PSI Plus)

PSIP09/SL/01 Mechanised food crops production in the Northern

Province of Sierra Leone

Location Makomp, Northern Province Sierra Leone

Sector Agriculture

Applicant Drie Wilgen Development B.V., Ellemeet, The Netherlands

Local partner Genesis Farms - Sierra Leone Ltd, Freetown, Sierra Leone




Goal of the project

The goal of this project is to introduce commercial and mechanised farming on 2 different locations in Sierra Leone based on low tillage precision farming techniques for the production of rice, sorghum and sesame. In addition, an agricultural centre will be established for training purposes. Summary

Since the civil war that devastated the country, Sierra Leone heavily depends on the import of all food products to feed its population. Currently the production of food crops in Sierra Leone is largely based on slash and burn subsistence farming. Because of over exploitation of the soil the yields per hectare are continuously decreasing. The goal of this project is to introduce commercial and mechanised farming in Sierra Leone using low tillage precision farming techniques. This is a more sustainable farming practice as it needs less inputs, will increase the average yield per hectare and will prevent depletion and erosion of soils. Next to the farming activities the project will establish an agricultural centre where agricultural and computer training will be given to the surrounding farmers and inhabitants. The project will be located in the Port Loko district. The project partners aim to set up a total production area of 400 ha, divided over 2 different farms located in 2 different chiefdoms. The partners in this project are the Sierra Leonean registered company Genesis Farms Ltd and the Dutch company Drie Wilgen Development B.V., which has a share of 70% in Genesis Farms. Therefore a separate joint venture will not be established. Results • Result 1 : Business foundation / project inception. • Result 2 : Procurement of equipment, construction of farm buildings. • Result 3 : Contracting and training of personnel, land preparations. • Result 4 : First hectares cultivated and harvested. • Result 5 : Farm operational. CSR aspects

Page 130 of 244

This project will comply with international regulations in the field of labour and CSR, taking into account good working conditions, equal opportunities for men and women, safety conditions and employee participation in work councils. As for the environment, precision agriculture is an agricultural technique that respects the environment. A social fund will be set up to contribute financially to social events and social family obligations like marriages, baptisms and funerals. Medical costs school fees, school uniforms and the like will be paid for in total or partially for those connected to the project. Impact


In due time the joint venture hopes to expand its areal under production to 700 ha. In order to make this possible the joint venture needs to invest in additional farming and irrigation equipment, processing equipment, additional storage facilities and other buildings, GPS equipment and additional training.


The joint venture will employ 85 permanent workers, as well as 50 casual labourers within the project period. Most of the permanent (55) jobs are manual labour jobs (farm workers). The remaining 30 permanent jobs concern medium / higher educated employees. The wages are at least 25% above the minimum wage in Sierra Leone for the least paid employees.

Transfer of knowledge At the moment there are no commercial large farming companies operational in Sierra Leone. The introduction of modern agricultural practises using low tillage precision farming techniques can be considered as new for the country. Next to training of the joint venture employees, knowledge will also be shared with neighbouring subsistence farmers through training and reflexive 2 monthly farmers meetings.

Chain effects This project will be the first step to strengthen the agricultural sector. This will have a moderate influence on the related supply and service sector. Genesis Farms will attract suppliers of fertilizers, fuel, agro-chemicals, financial services etc.

Environment Genesis Farms will apply low tillage precision farming practises, which consumes less inputs in terms of fuel, chemicals and fertilizers compared to conventional farming. The (fossil) energy per kilogram of production is far lower than with conventional farming. No chemicals forbidden in the EU will be used in Sierra Leone as EU standards will be practised.

Position of women This project will provide equal opportunities for men and women. However it is expected that only 30% of the employees will be female contracts. Women will mainly be employed for administrative and processing jobs.

Page 131 of 244

Other impact Genesis Farms wishes to be embedded in the local communities, which implies that the company will take up social responsibilities on community level as well as on individual level. Policies for assistance will be developed, so that requests for assistance can be considered within the policies and financial capabilities. In the agri-centre in Makomp, secondary school students from the town will be offered study facilities and internet access.

Page 132 of 244


PSIP09/SL/02 LPG bulk storage and distribution in Sierra Leone

Location Kissy Grassfield, Freetown

Sector Energy

Applicant Geogas Trading S.A., Geneva, Switzerland

Local partner Benco Trading Ltd, Freetown, Sierra Leone




Goal of the project

The goal of this project is to introduce a permanent LPG bulk storage facility with a maximum capacity of 300 tons in Freetown, Sierra Leone, together with the establishment of 4 gas filling stations, 1 in Freetown and 3 in other Sierra Leonean Cities, in order to increase the availability of LPG, for a better price, in the country. Summary

The applicant in this project is Geogas Trading S.A. based in Switzerland. Geogas is a trader and supplier of LPG (Liquid Petroleum Gas) world wide. The local African partner is Benco Trading Ltd, a Sierra Leonean trading company, which mainly deals with the import and sales of food items, construction materials and small quantities of LPG. Both companies will establish a joint venture located in the oil harbour of Freetown. The aim of this project is to introduce permanent LPG bulk storage facilities (with a maximum storage capacity of 300 tons) in order to supply the home market with LPG. The LPG will predominantly be used for cooking, but the gas can also be used for industrial practices, like welding, cooling etc. The applicant will supply the storage facility once a month. Next to the introduction of the LPG storage facilities, the project will establish 4 filling stations for (5 kg) LPG gas bottles, 1 in Freetown and 3 in other Sierra Leonean cities. Sierra Leone is a Greenfield market, where the usage of gas is limited. This project will lead to the first permanent storage facility for LPG within Sierra Leone. Not only will the availability of gas will increase because of the monthly supply by Geogas, but it is also expected that the sales price per kilogram of LPG will drop with 60% in comparison to the current sales price per kilogram LPG. When the joint venture manages to increase the demand for LPG, a possible spin off effect of this project will be the reduction of the use of firewood for cooking purposes. Results • Result 1 : Business foundation / project inception. • Result 2 : LPG bulk storage facility established and staff trained. • Result 3 : Cylinder filling station set up and staff trained. • Result 4 : Business development. CSR aspects

Page 133 of 244

Geogas takes full responsibility for the supply chain to the bulk storage facility. Furthermore the company will make sure that all the installations of the joint venture will be secure. If there is any doubt about safety, the supply of LPG gas will immediately be halted. The facilities will be shut down until the problem is fully remediated. Furthermore, Geogas will make sure that there are clear-cut safety protocols and that its employees will receive comprehensive training and safety instructions. All the salaries are considerably above the minimum wages. All employees will receive health insurance. The joint venture's staff will be under strict instruction not to pay bribes. In case any employee or distributor is found to engage in any corrupt or unsafe practices, he or she will be dismissed immediately. Impact


Once the PSI Plus project has ended, the Geogas-Benco partnership plans to continue its joint venture on a long-term basis with a view to develop the Sierra Leonean market in line with other African countries where LPG is more widely available. The first step will be to expand the bulk storage facilities from 300 tons to 600 tons of gas storage.


In total 49 people will be employed by the joint venture within the project period. 22 of those jobs can be considered as high-level jobs, 8 at a medium-level and the remaining jobs are at basic-level. 21 Indirect jobs will be created at the gas filling stations. After the follow-up investments, 33 additional jobs will be created, 14 high-level jobs, and 19 basic-level jobs. The lowest salary levels of the joint venture are at least 200% above the minimum wage.

Transfer of knowledge All the training concerning the maintenance of the facility, the safety protocols and the management of LPG bulk storage facility can be considered as new for the country.

Chain effects In Freetown, the joint venture will work with 15 to 20 vendors who will operate as sales agents, each covering an assigned zone. They will each distribute a minimum of 1,000 cylinders in a system that is modelled on the system used by the local cement industry. The vendors will be trained within the project. Three of the 4 filling stations will be exploited by other companies, who will also be trained in safety aspects. The joint venture will supply gas to other major distributors, which may have their own filling station (presently only one operated by National Petroleum) but another company Safecon may reactivate its earlier LPG business and Total has expressed interest. It is in the interest of the joint venture that more parties are interested to participate in the mass distribution and marketing of LPG cylinders.

Environment For the bulk storage site an environmental impact assessment will be carried out before the start of the project. It is however not expected that this project will have a negative impact on the environment. The LPG business chain produces a limited amount of waste, as the product is fully consumed at the end of the chain and the gas cylinders will be re-used.

Page 134 of 244

Position of women The joint venture will provide equal employment opportunities to both men and women. The joint venture aims to have at least 1 female person employed at senior management level and will employ at least 10 women at other levels.

Other impact LPG is a much cleaner and efficient type of fuel than other fuels actually used in Sierra Leone for cooking purposes. Furthermore, if the usage of LPG increases, this can decrease the demand for firewood and charcoal. This project can then after a period of time reduce the speed of the deforestation in the country. LPG can also be used for commercial purposes like welding and refrigeration and as such can be of assistance for the development of micro-enterprises.

Page 135 of 244


PSIP09/SL/22 Establishment of a Medical Imaging & Diagnostics

Centre in Freetown, Sierra Leone

Location Freetown

Sector Health care

Applicant Akai House Clinic Ltd, Accra, Ghana

Local partner Medics Services Ltd, Freetown, Sierra Leone

Start project 01 September 2009



Goal of the project

This project would like to establish an (outpatients) imaging and diagnostic centre where a variety of services, including CT scanning, X rays, Ultrasound, Mammography and Laboratory referrals, will be offered to the population of Sierra Leone. Summary

Currently the medical services available in Sierra Leone are of a very poor quality. The project partners would like to establish a modern imaging and diagnostic centre to improve the overall standard of the medical services in Sierra Leone. At the same time this project fills a gap in the local health care sector, with currently no adequate imaging and diagnostic services available, forcing patients to go abroad in order to get a medical diagnosis. The applicant in this project is Akai House Clinic Ltd, which is registered in Ghana. The local company, Medics Services Ltd, is registered in Sierra Leone. The project partners will establish a new joint venture for the execution of this project. The project will be located in Freetown, Sierra Leone. Results • Result 1 : Business foundation / project inception. • Result 2 : Imaging & Diagnostics Centre established. • Result 3 : Human Resources. • Result 4 : Business Development and start up. CSR aspects The joint venture will put high emphasize on quality control standards. The partners will adopt the principles of Clinical Governance (CG) – a certification which proves the clinic is in compliance with international healthcare standards. Furthermore, the joint venture will comply with the principals of Good Laboratory Practice − an international certification with

regards to laboratory performance and the quality of the diagnostics. The joint venture will also adhere to the criteria of the Clinical and Laboratory Standards Institute (CLSI). CLSI is a global non-profit organization that promotes the use of voluntary consensus standards and guidelines within the health care community. Furthermore the joint venture will cooperate with NGOs on the referral of patients, whom, due to their situation cannot afford the clinic's services. The amount of the referred patients

Page 136 of 244

may not exceed 10% of the daily capacity. These patients will be treated for only 25% of the commercial costs. The joint venture will pay high salaries, the lowest income group will earn at least 1500% more than the official minimum wage. A medical waste management programme will be in place. Impact


In due time the investors hope to realize a fully equipped private hospital containing about 30 beds. Furthermore, the joint venture would like to establish a national health care system in cooperation with Nassit, the national security provider.


The clinic will employ a total of 38 people. Ten people in high-level jobs (1 doctor, namely the radiologist who will do the diagnosis and technicians operating the various medical instruments). 12 in medium-level jobs (nurses, administrative people, laboratory technicians and maintenance engineers) and 16 in basic-level jobs (cleaners, security staff). The staff will receive a decent salary, The lowest paid employee will receive at least 1500% of the official minimum wage in Sierra Leone. As a secondary benefit, the employees will receive health insurance and will be treated free of charge in the new clinic.

Transfer of knowledge There is no experience with most of the imaging and diagnostics equipment in the country, so the medical training activities bring new knowledge to the country. Also, working with hygiene and safety rules, a high service level and strict quality control, can be considered as innovative for the local health sector.

Chain effects This project can introduce a higher quality of health care within Sierra Leone and can be considered as an important step in improving the health care facilities in Sierra Leone. This project can also contribute to a higher level of training of the local specialist and might prevent Sierra Leonean doctors to look for job opportunities abroad. Further, patients who had to travel abroad for a diagnosis can now be diagnosed locally. Following the diagnosis the doctors can decide if further treatment (outside the clinic) is necessary.

Environment The joint venture will set up a proper medical waste management system. Due to the fact that the medical clinic is not involved in surgery and other patient treatment and that all scans are digitalized, the amount of medical waste is relatively low. Therefore an environmental impact assessment has not been included in this project proposal.

Position of women It is expected that about 40% of the employees will be female.

Page 137 of 244

Other impact 10% of the clinics daily capacity will be directed towards the basic income groups. These patients will be recommended by NGOs, which will refer the patients to the clinic. It is the idea that the NGOs will cover the cost for the patients for only 25% of the commercial rates.

Page 138 of 244


PSIP09/SL/23 Processing smallholder palm oil into toilet soap in

Freetown, Sierra Leone

Location Freetown

Sector Industry

Applicant Adam Afrique SARL, Abidjan, Ivory Coast

Local partner Washex Industries Limited, Freetown, Sierra Leone

Start project 01 September 2009



Goal of the project

The production of affordable toilet soap from palm oil locally produced by smallholders. Summary

The applicant in this project is the in Ivory Coast registered company Adam Afrique SARL. Adam Afrique is a company which is producing laundry soap for the internal market and the export market. The local partner is Washex Industries Ltd. This company is also involved in the production of laundry soap but for the internal market. The companies will establish a joint venture which will be located in Freetown. The aim of this project is to set up a factory for the local production of toilet soap. At the moment toilet soap is not produced in the country but is imported from abroad. This project will introduce new technology and expertise into the country. The production of toilet soap is more complicated and technical advanced then the production of laundry soap. Furthermore this project will have a positive impact on the rural community. The main ingredient for toilet soap (but also laundry soap) is palm oil, which is locally produced by small farmers. Increased soap production will thus lead to improved sales of palm oil for the farmers. Results • Result 1 : Business foundation / project inception. • Result 2 : Soap processing line operational and technical staff trained. • Result 3 : Quality assurance system set up and staff trained. • Result 4 : Business development. CSR aspects The joint venture will integrate Corporate Social Responsibility in its operations in the following ways: 1. Quality certification: the soap factory will acquire GMP certification for quality

management. All employees will receive training in this field. 2. Health and safety on the work floor: Standard Operating Procedures will be developed and

introduced aiming to ensure health and safety for all employees. Employees will be trained on the job in these fields.

Page 139 of 244

3. Social standards: the joint venture will provide decent salaries to its personnel, far above the official minimum wages in Sierra Leone, including health insurance.

4. Environmental standards: the joint venture will adhere to international standards for soap manufacturing.

Impact


Within two years after the finish of the PSI project, the joint venture will result in an extra production line with a double capacity in comparison to the first production line.


In total 33 people will be employed by the joint venture within the project period. 5 of those jobs can be considered as high-level jobs, 6 are medium-level jobs and 22 can be considered as basic-level jobs. These employees will all be newly recruited persons, as the current employees will continue to be involved in the manufacturing of laundry soap for Washex Industries. Within two years after project completion, an additional number of 24 people will be employed by the joint venture.

Transfer of knowledge This project will introduce new soap producing technology in the country.

Chain effects This project will have the following chain effects: 1. the project will have a positive impact on the oil palm famers

and traders, because the demand for palm oil for the soap production will rise (at least for a few).

2. the joint venture will contract logistical companies to take care of the distribution of the toilet soap, both locally and regionally (mainly in Liberia and Guinea).

3. customers buying toilet soap will be beneficiaries of the project as they will get access to more affordable toilet soap.

Environment Oils and perfume are insoluble in water and if spilled can create problems. Perfumes are bought in lined steel drums that are adequately robust, and flammable perfumes are not used in the manufacturing of soaps. All the storage tanks are surrounded by bunds to catch the contents of the tank, in case it ruptures or a valve fails. Inside the plant, all the process and operational areas are also bonded, and the waste is piped to an interception tank before draining to the council's waste system. The contents of the interception tank are consistently monitored for alkalinity or acidity. If in the case, a spill is observed in the plant itself, a part of the interception tank can be isolated and the consequences of the spill neutralized before the waste will be drained.

Position of women The joint venture will provide equal job opportunities to men and women.

Other impact The joint venture will promote increased hygiene such as washing of the hands through promotion programmes which might lead to a decrease of avoidable diseases like diarrhoea.

Page 140 of 244

South Africa

PSI09/SA/06 Development of a project company using mini

excavators and a network of small enterprises in

the telecom and utility market

Location Cape Town

Sector Construction / Infrastructure

Applicant NMH Holding B.V., Hedel, The Netherlands

Local partner MHZA machine handling SA CC, Gants Centre, South Africa




Goal of the project

To set up a new business model in excavation works with a network of small entrepreneurs using mini excavators for infrastructural activities in the telecom and utility market, resulting in 9 new enterprises by the end of the project. Summary

A few years ago the applicant noticed that in South Africa the digging of trenches was done by hand. In the Netherlands mini excavators are used for this purpose and NMH is one of the companies specialized in this business, contracting independent entrepreneurs (ZZP-ers) to do the actual work. He tried to set up a similar business in South Africa, but encountered serious problems and realized that just training to use the excavators was not sufficient to prepare the people to become entrepreneurs. This lead to this project, introducing a new business model to South Africa with a network of small enterprises, including intensive training. A joint venture will be set up, which will train black South Africans to run a small enterprise in excavation works for the telecom and utility sector. The joint venture will train the people and if found suitable it takes care of all the paper work for them to start an enterprise, a hire purchase contract for a mini excavator, car and trailer for transport, sales contracts etc. During the first two years the entrepreneur will have a job contract with the joint venture. The joint venture will spend a lot of time and effort to train the people in a range of subjects, from technical skills, safety, health and environment, personal management skills and (starting) enterprise skills. The joint venture will pre-finance the mini-excavator, the car and the trailer. Once the concept is proven, banks will be approached for the pre-financing. The pilot project will take place in the Cape Town area. Results • Result 1 : Set up joint venture. • Result 2 : End of preparation phase. • Result 3 : Training, coaching and employment. • Result 4 : Training of South African staff. • Result 5 : First projects executed by the project organization and the new enterprises.

Page 141 of 244

CSR aspects The joint venture strives to create a healthy and creative working environment both internally and externally. The joint venture will implement ISO 9000 and VCA (Veiligheid, Gezondheid en Milieu Checklist Aannemers) procedures and aims at reducing energy and water consumption, placing reuse collection bins. In their HR policy the joint venture commits itself to conducting its business fairly, honestly and transparently, not making or offering bribes, nor accepting bribes and developing a programme to implement and support these principles. Impact


After the pilot phase the project partners will start identical projects in other cities, expecting to invest an extra € 1,350,000 in the two years after the project. The joint venture will also continue training in the Cape region until 60 enterprises have been established.


By the end of the project the joint venture will directly employ 22 people. Furthermore 9 small entrepreneurs will have established their own business and 135 people will be employed as ground workers by these entrepreneurs. Two years later these numbers will be up to 36 employees in the joint venture, 35 small enterprises, plus 359 jobs for employees of these small enterprises. Salaries will be at least 125% of minimum wage. The Dutch VCA standards will be implemented by the joint venture, a HR policy will apply. A health care insurance will be provided to employees as part of the social package, covering both the employee and his or her children and spouse. During the training period free lunches, coffee and tea will be offered to staff and trainees.

Transfer of knowledge The knowledge on how to use a mini excavator to dig trenches in large infrastructural projects is new. More important than the technical skills is the knowledge of the project approach. Learning how to start and run your own business with the use of a mini excavator is a new aspect in South Africa. The project will prepare the trainees to become small entrepreneurs.

Chain effects The main chain effect of the project is the establishment of 9 small enterprises by the end of the pilot phase and the set up of a training programme and infrastructure in other cities to further increase this number. Furthermore, by introducing mini excavators into the telecom and utility market the production speed of these projects will increase, so projects can be executed a lot faster.

Position of women The aim of the project partners is to have at least 50% of trainees to be women. For the administrators and engineers they aim for 70% women. Of the 3 top managers of the joint venture, 1 will be a woman. Furthermore the joint venture will support the female employees by offering a separate space to take care of the children, a 6 week parental leave (not for trainees) and

Page 142 of 244

childcare for children up to the age of 4.

Other impact A Black Economic Empowerment (BEE) implementation plan is part of the final project result.

Page 143 of 244

South Africa

PSI09/SA/23 First stand-alone toolshop for thinwalled injection

moulds in South Africa

Location Durban

Sector Industry

Applicant Gereedschappenfabriek Van den Brink B.V., Harskamp, The Netherlands

Local partner Topline Tooling (proprietary) Limited, Durban, South Africa




Goal of the project

A stand-alone toolshop able to manufacture and refurbish high quality and complex thin-walled injection moulds. Summary

Moulds are used by the (plastic) packaging industry in injection moulding machines for producing e.g. plastic pots, cups, lids etc. Many of these plastic products can be found in supermarkets for the packaging of food-products. Although the South African packaging market is well developed, the mould-making industry is still an underdeveloped sub-sector in the entire packaging supply chain in South Africa. Considering their long-term relationship and matching ambitions and strategy, Dutch mould-maker Van den Brink B.V. and its South African client Topline Tooling Ltd, recognised their good match to successfully start a stand-alone toolshop in South Africa able to produce and refurbish complex injection moulds of high quality. This project will result in added value to the South African packaging supply chain in general and develop the mould-making industry in particular. South African moulders, who currently strongly depend on foreign (= distant) toolshops for their complex and expensive injection moulds, will find an alternative manufacturer nearby. For knowledge partner Van den Brink the project will lead to a solid position on the South African market, which fits in their strategy: a similar project is being implemented by Van Den Brink in Russia. The joint venture between Van den Brink and Topline Tooling will contract 11 new high-level full-time employees and equip a modern toolshop able to stand on its own. Once this pilot project is in operation and successful, the partners will further invest in the joint venture to be able to manufacture bigger volumes and develop its position in the South African plastic packaging industry and other (emerging) markets in the Southern Hemisphere. Results • Result 1 : Joint venture established.

Page 144 of 244

• Result 2 : Stand-alone toolshop operational. • Result 3 : Recruitment and training of personnel and staff. • Result 4 : Business development. CSR aspects The joint venture will take over the ISO 9001 certification from the old Topline Tooling. In S.A. Topline Tooling qualifies as a small company and should consequently contribute to 4 out of the 7 BEE elements. In this context the company shall implement: 1. Employment equity: Implement a pro-active recruitment policy in order to have at least

50% black employees. 2. Skills development: The stand-alone toolshop will spend at least 2% of the skills

development levy on a training for black employees. 3. Enterprise development: The stand-alone toolshop will spend at least 2% of the Nett Profit

After Tax (NPAT) on enterprise development. 4. Socio-economic development: The stand-alone toolshop will spend at least 1% of the

NPAT on a social programme. Impact


After finalising the project and a successful introduction on the South African market, the joint venture will start investing € 1,000,000 in the equipment to manufacture bigger volumes of complex thin walled injection moulds. The joint venture will keep investing in training and education.


During the pilot period Topline Tooling will create 11 new full-time jobs. Two years after the project the toolshop will contract and train 10 extra full-time employees. Finally, in year 7, 60 full-time jobs will have been created. The minimum wage in urban areas is ZAR 12,492 (approximately € 1,100) per year. The stand-alone toolshop will pay its unskilled employees ZAR 78,000 per year and offer all employees an extensive package of fringe benefits and working conditions.

Transfer of knowledge South African engineers will develop themselves into Van den Brink level injection mould-experts which means they will be upgraded with new injection moulding skills to a knowledge level almost comparable to that in the Van den Brink's toolshop.

Chain effects The customers (moulders and brands) will gain time when refurbishing and/or maintaining their complex injection moulds. The plastic packaging industry in South Africa will further mature. The supply chain for the stand-alone toolshop will benefit from the outsourcing of activities such as transport of moulds and marketing and promotional events. It will trigger the market to start a high quality steel hardening company as will still be outsourced to a company in Germany.

Position of women Most probably the financial manager will be female but in general the impact of this project on the position of women is

Page 145 of 244

neutral.

Other impact With the introduction of EU-standard business and employment conditions, this toolshop shall be an example to other (industrial) initiatives.

Page 146 of 244

Southern Sudan (PSI Plus)

PSIP09/SD/31 Establishing modern printing services in Juba

Location Juba

Sector Industry: graphic/paper

Applicant Mac-Nels Gulf FZCO (Free Zone Company) Ltd, Dubai, United Arab Emirates

Local partner Afristar International Ltd, Juba, southern Sudan



Total budget € 942,400 (60% PSI contribution = € 565,440; MIGA contribution = € 21,204)

Goal of the project

To set up modern printing services with a production capacity of 792,000 books, 594,000 posters and 1,584,000 leaflets at the end of the project. Summary

After the establishment of the Central Peace Agreement in 2005, South Sudan is developing. The presence of international aid organizations and an emerging southern Sudanese middle class result in a growing demand for services in southern Sudan. The demand for printing services is also growing. However, there currently are no large scale multicolour printing services available in southern Sudan. Public and private organizations which are located in southern Sudan and need printing services, now have to use the services of printing companies in East Africa or the Middle East. Expensive logistics add significantly to the printing costs. In addition, supervision of the print work by southern Sudanese clients is minimal, since printing activities take place abroad. The applicant Mac-Nels Gulf FZCO (Macnels), which is located in Dubai, and the local partner, Afristar International Limited (Afristar), propose to set up a joint venture in which they both own 50% of the shares. The core business of the joint venture will be printing services. The project partners will construct a warehouse in Juba and will acquire a 4-colour offset printing press, mainly for the production of books, leaflets and posters. The joint venture will employ 52 staff members, which can be translated into 32.5 full-time jobs. The project will substantially contribute to the development of the service sector of southern Sudan. The project is innovative, since currently no other southern Sudanese company is able to print the proposed printing materials. Therefore, the project will bring new knowledge into the country.

Page 147 of 244

Furthermore, the project will reduce printing costs, since printing activities can be executed locally. The project can facilitate the spreading of information as promotion materials can be printed cheaper and faster by the joint venture. Results • Result 1 : Set up joint venture and project inception. • Result 2 : Printing facility operational and management recruited and trained. • Result 3 : Quality assurance system set up and staff recruited and trained. • Result 4 : Business development. CSR aspects The partners will incorporate a social CSR policy, which will include the provision of free lunches, payment of social contribution for the personnel, stimulation of staff to send their children to school and a health care allowance for employees and their family. Standard Operation Procedures will be developed and introduced to ensure health and safety for all employees. Impact


Two years after the end of the project the partners plan to invest another € 1,500,000. The joint venture will invest in an additional printing line, with a double or triple capacity compared to the pilot project. In addition to the follow-up investments in capacity, the partners plan to expand the range of services offered. The partners will invest in building up expertise in graphic design and desktop publishing, so that more advanced products can be offered. Further, the partners will consider printing newspapers.


The project will provide employment to 52 persons, which can be translated into 32.5 full-time jobs. Out of the 52 persons, 30 persons will work at basic-level and 22 will work at medium- or high-level. The basic-level jobs concern the finishing and binding jobs, printer trainees and casual labourers. High- and medium-level jobs are the manager, supervisors, printer operators and Desk Top Publishing experts. Two years after the end of the project the joint venture will employ in total 68 people, which can be divided into 44 basic-level jobs and 24 medium- and high-level jobs. According to the project partners, the minimum wage in Sudan is about € 38 per month. The partners will pay at least 200% above this minimum wage and substantially above the average for the sector and the region.

Transfer of knowledge The transfer of knowledge to operate the 4-colour offset printer is completely new for southern Sudan. The training leads to an enhanced knowledge level and to the acquisition of new skills. For example, the staff will be trained in Desk Top Publishing, a computer programme which is being used for offset printing.

Chain effects For most consumables it will not be possible for the partners to apply a local sourcing policy, because the required products are not available on the southern Sudanese market. The project partners plan to hire 2 packaging companies for the supply of simple packaging materials and 2 local logistic companies.

Page 148 of 244

Environment The partners are committed to conducting their business operations in a manner that protects both the environment and the health and safety of employees, customers and the public. The project partners aim to use materials that either are recyclable or biodegradable. The project partners plan to recycle all the waste paper for packing purposes. This however will not be possible in Juba, but the joint venture will look at recycling possibilities in neighbouring countries. For chemicals, waste chemicals will not be disposed of but used for their alcohol content for maintenance and cleaning of machinery. The project partners aim to use recycled paper and encourage their clients to accept products printed on recycled paper wherever possible. The project partners will avoid the use of plastic packaging and shrink wrapping of finished products to minimize additional waste. Standard Operating Procedures in the Quality Assurance Manual will guide staff with regard to health aspects such as working with chemicals, safety aspects such as working safely with the press without risk of injuries and environmental aspects of waste processing, recycling, energy and water use and paper and ink use.

Position of women The joint venture will favour the recruitment of female employees.

Other impact The project partners plan to establish internship programmes with the University of Juba for students wishing to learn the offset printing business. This will be offered in the form of a "scholarship scheme" and will be performance based for students showing high degree of aptitudes in particular fields. The training programme will be conducted during vacation periods so as not to interfere with existing study programmes.

Page 149 of 244

Tanzania

PSI09/TZ/02 Eco Charcoal in Tanzania

Location Rotian Farm in Simanjiro district

Sector Energy

Applicant Fresh Food Technology B.V., Tiel, The Netherlands

Local partner Rotiana Social Investment Ltd, Simanjiro district, Tanzania

Third partner Stichting Het Groene Woudt (SHGW), Driebergen, The Netherlands




Goal of the project

The goal of this project is to establish an ecologically friendly charcoal factory with a capacity of 1,170 tons of eco charcoal and charcoal briquettes per year in the Simanjiro district. Summary

For cooking purposes Tanzania's population is largely dependent on charcoal. The production of charcoal mainly results from wood from illegal cutting of trees. This leads to a high level of deforestation in the country. The aim of this project is to establish an ecologically friendly charcoal factory using a twin retort system. The Twin Retort system is a semi-continuous production module, with a capacity of 900 tons of charcoal and 270 tons of charcoal dust (in the form of briquettes) per year. In each of the 2 retorts a vessel with fresh wood is to be placed alternately. Carbonization of 1 vessel usually takes about 12 hours. When 1 vessel has reached the carbonization temperature (about 900°C), thermal decomposition takes place, and pyrolysis gasses are emitted from the vessel. These gasses are combusted in-situ to provide the heat supply for heating up the other vessel. This way, no external energy source is needed after start-up. The used wood will be FSC certified. The production efficiency of the traditional method producing charcoal can be as low that 8 to 15 kg wood will lead to only 1 kg of charcoal. With the Twin Retort system, charcoal can be produced far more efficiently as only 3.3 kg of wood is needed to produce 1 kg of charcoal. The major sales market of the produced charcoal will be the towns of Arusha and Moshi about 80 km from the production site. The applicant in this project is the Dutch registered company Fresh Food Technology (FFT) B.V which will establish a joint venture with the local Tanzanian partner Rotiana Farm Ltd. Stichting Het Groene Woudt, a corporate foundation (SHGW) is the third project partner. This project is the first initiative in Tanzania to produce charcoal in a environmentally sustainable way making use of the Twin Retort System. The factory will be located in the Simanjiro district on the Rotiana Farm. Results • Result 1 : Project inception. • Result 2 : Purchase and instalment of equipment.

Page 150 of 244

• Result 3 : Employment and training. • Result 4 : Commercial charcoal production. CSR aspects • RSI and SHGW have a Human Resource Manual based on the Dutch labour laws and the

partners will apply this on the project as well. • Safety regulations and instructions will form an essential part of this project because the

employees will have to work with heavy equipment and very high production temperatures. The safety regulations will be implemented vigorously.

• All employees will receive a working contract with health insurance and pension scheme. • A credit and saving system will be established for the employees as well as a social fund

for calamities. • 74% of the employees will be female, including the management of the factory. • The charcoal will be FSC certified. Impact


Within two years of project completion 2 additional kilns for the production of charcoal will be installed.


In total 34 full-time employees will be employed by the end of the pilot project. Two of these jobs are on a high (management) level, 10 on medium-level, and the remaining 22 on basic-level. Good working conditions will be assured by respecting working hours per day and by providing adequate clothing and safety equipment to the employees, also free lunch will be provided. The salaries will be at least 20% above the minimum wages.

Transfer of knowledge The most important knowledge which will be transferred is the production of eco charcoal with the use of the twin retort system. This process requires a deep understanding of the charcoaling process and constant monitoring of the production process is required as exact temperatures have to be maintained.

Chain effects The most important chain effect is that this project can set an example for the country on how charcoal can be produced on a sustainable environmentally friendly way. At least in the direct surroundings of this project deforestation because of charcoal production will be diminished. This project is located in a very remote area of the country at least 100 km away from the nearest serious settlement. The expectation is that the charcoal will be sold to traders. These traders will sell the charcoal most probably in the nearest towns Arusha and Moshi. The traders are responsible for the transport of the charcoal to the markets.

Environment This project will have a positive effect on the environment. The production of eco charcoal requires far less wood than the traditional production process. Furthermore cooperation will be sought with the local authorities to prevent the illegal cutting of trees for the production of traditional charcoal in the region. Compared to the traditional charcoal production processes, the Twin Retort system is very low on emissions.

Page 151 of 244

Position of women The impact on the position of women will be positive. In total 25 out of the 34 employees will be women, which is 74% of the total workforce.

Other impact Because of the high temperature at which the eco charcoal is made, no toxic substances remain in the charcoal. When the charcoal is used in a kitchen, no toxic gasses are released. With the traditionally made charcoal toxic substances are not burnt during the charcoaling process. The use of eco charcoal will significantly reduce pollution with toxic gasses within the households.

Page 152 of 244

Tanzania

PSI09/TZ/04 Mruazi heifer breeding unit

Location Tanga region

Sector Agriculture

Applicant K.I. Samen B.V., Grashoek, The Netherlands

Local partner Holland Dairies Ltd, Tanga, Tanzania

Third partner Tanga Dairies Cooperative Union, Tanga, Tanzania




Goal of the project

To establish a heifer / breeding bull farm producing Zebu, Sahiwal, Friesian Holstein cross breeds on a 1,000 ha farm resulting in a mother herd of 500 animals after 3 years. The offspring will be sold to Tanzanian dairy farmers. The farms by-products will be milk and weaner bulls. Summary

The main aim of this project is to establish a quality heifer and breeding bull farm to supply the Tanzanian dairy farmers with cows / bulls which produce a higher amount of milk per cow / offspring, but are also resistant to the regions climatic conditions. At present there is no existing heifer / breeding bull company in the country which can supply quality livestock to the dairy farmers. A by-product of the heifer breeding is milk and weaner bulls. The milk will be sold to the milk factory, the weaner bulls to the meat industry. The project partners would like to cross-breed the indigenous Zebu cow, the Pakistani Sahiwal and the Dutch Friesian Holstein in order to produce a more productive milking cow / breeding bull. This project will be the first initiative in Tanzania to breed quality live stock for milk production using the 3-way cross breed. Experience with this breed in Kenya and Australia shows that this breed produces about 25% more milk than the currently used Zebu / Friesian Holstein cross breed (2,300 versus 1,800 litres per lactation period). The new breeding farm will be established by 4 project partners: the Dutch registered applicant K.I. Samen, the local partner company Holland Dairies, the third partner the Tanzanian Tanga Dairies Cooperative Union (TDCU) and the fourth partner the Tanzanian company Katani Ltd. The project will be located in the Tanga region on part of the land of Katani Ltd. Results • Result 1 : Company establishment. • Result 2 : Farm development phase 1. • Result 3 : Farm development phase 2. • Result 4 : Completion of farm development. • Result 5 : Project completion. CSR aspects

Page 153 of 244

The new company will incorporate a CSR policy. All employees will have a pension scheme, health insurance, and working hours etc according to the Tanzanian labour laws. Minimum wages will be at least 20% above labour laws. For part of the staff the company will provide proper housing. Impact


As the production of the quality heifers is a time consuming process (minimum 4 years) follow-up investments are not requested within two years after completion of the pilot. It takes time to build up the parent stock of the company. The partners will invest though in replacement of animals.


The project will directly employ 54 people from year 3 onwards. Two of those jobs can be considered high-level jobs, 4 are medium-level jobs and 48 can be considered basic-level jobs. Furthermore, many seasonal workers will be employed. Their number can be estimated at 40 to 100 per day. The salaries paid for the lowest paid workers are 120% of the minimum wages.

Transfer of knowledge This project will introduce the knowledge about breeding programmes (3-way crossing), herd management systems (computerised) and the knowledge about the use of sexed semen. Furthermore knowledge will be transferred to the small-scale dairy farmers through training days, visits and informal contacts.

Chain effects The following chain effects are expected:

Beneficiaries Kind of benefit Nature of benefiting party

1 Rural Farmers Higher income through: Heifers Breeding bulls Breeding techniques

Individuals (at the moment 3,000 established dairy farmers)

2 Tanga Fresh Ltd

Better profit through more supply of milk

Company Ltd, partly owned by cooperative

3 TDCU Income through profit sharing

Cooperative union, shareholder in Tanga Fresh Ltd and in the new company

4 Cattle feed and input suppliers

Higher turnover

Individuals

Page 154 of 244

Environment The joint venture will have to partly clear the area of thorn bushes in order to make grazing for the herd possible. The bigger trees will be left untouched. Further the joint venture will actively prevent soil erosion through riverside forest conservation, utilization of environmentally friendly acaricides and peripheral tree planting. Further the joint venture will make use of insecticides from vegetable origin. Overgrazing is prevented through controlled rotational grazing using solar powered electric fencing.

Position of women For specific farm duties preference will be given to female workers (management / staff functions, milking, calf rearing, artificial insemination, administrative duties). However, overall it is expected that the impact on the position of women will be neutral.

Other impact It is expected that the biggest creation of employment is through the sales of dairy cattle to smallholder farmers.

Page 155 of 244

Uganda

PSI09/UG/04 Pilot production of generic veterinary medicines in

Uganda

Location Kampala

Sector Pharmaceutical industry

Applicant Alfasan Nederland B.V., Woerden, The Netherlands

Local partner Farm Support Ltd, Kampala, Uganda




Goal of the project

To establish Uganda's first manufacturing unit for production of GMP-Pharma certified generic veterinary medicine, starting of with the production of at least 12 different powders and liquids. Summary

In a country where 80% of the people depend on agriculture, livestock is an important asset. Because of the tropical climate in Uganda, many livestock diseases are prevalent. The availability of veterinary pharmaceutical products is therefore crucial to the sector. Applicant Alfasan Nederland B.V. is a manufacturing and distribution company for generic veterinary medicines. Their products are marketed in over 100 countries worldwide. Local partner Farm Support Ltd from Uganda is the local representative of the Alfasan brand in Uganda and the sub region, since 2005. Farm Support has always had the ambition to locally produce veterinary drugs. As all drugs are currently being imported, the partners see an interesting business case to become the first local manufacturer of veterinary medicine in Uganda. This will allow them to produce drugs at a lower price and to have a faster response time to sudden outbreaks of diseases. The factory will be established in Kampala. Results • Result 1 : Joint venture established and EIA. • Result 2 : Construction and utilities. • Result 3 : Installation of equipment. • Result 4 : Training and certification. • Result 5 : Pilot production and business development. CSR aspects The production facility will be established in compliance with Good Manufacturing Practice standards. Impact


It will take time to optimise the installed production capacity and to obtain all required licences. Expansion of the factory will in first instance be reached by employing more staff, rather

Page 156 of 244

than through new equipment. Therefore no follow-up investments will be done in the two years following the project's completion. However, the partners are fully committed to making this project a success. In due time partners are thinking of investing in the production of acaricides and injectables. Two years after the end of the project, the partners expect to quadruple their annual turnover as compared to the turnover at the end of the project.


Altogether 23 people will be employed by the end of the project: 15 production workers, 7 middle managers and 1 pharmacist. Two years later this will become 25 production workers and 12 middle managers. The lowest paid staff will at least receive 50% above local minimum wages. Additionally they will receive medical insurance, meals when on duty and protective clothing.

Transfer of knowledge All training provided will be new to the country. Especially the pharmacist and the middle managers will obtain highly valuable knowledge.

Chain effects The obvious effect in the chain will be the low cost provision of good quality medicine in Uganda. This will help farmers to keep their cattle in better shape, which in the end leads to a higher yield. The farmers will also be informed about the analysis of diseases and correct use of medicine by the sales team of Farm Support. This is already ongoing business for Farm Support, but will be intensified and supported by the joint venture, once the project is up and running. In terms of indirect employment, Farm Support expects to be hiring 50 additional sales people for its own business to sell all the Alfasan Uganda products.

Environment An Environmental Impact Assessment will be conducted upon implementation of the project. Additionally a water treatment system will be installed and solid waste will be safely disposed of.

Position of women At least 50% of the employees will be female. At least 4 will be in a higher management position.

Other impact One additional advantage of this project is that Alfasan Uganda can better adapt to the local needs of individual farmers. An example was given by Stephen Birungi from Farm Support: many farmers cannot afford animal drugs because many drugs are in large (and thus for the small farmers unaffordable) packaging. Local manufacturing will make it possible to produce smaller volume packs, thereby reaching more smaller farmers.

Page 157 of 244

Uganda

PSI09/UG/05 Pilot production of water-based paint and coatings

in Uganda

Location Kampala

Sector Chemical industry / Plastics

Applicant Sadolin Paints East Africa ltd (SPEAL), Nairobi, Kenya

Local partner Sadolin Paints (U) Ltd, Kampala, Uganda




Goal of the project

To establish a production line for water based glossy paints with an annual capacity of 200,000 litres, and a line for water based architectural coating with an annual capacity of 250,000 kg, designated for the local market. Summary

In the decorative paint industry one can generally distinguish between matt and glossy paints. Both products can either be made on a solvent base or a water base. In Europe, solvent based paints are banned from the consumer market because of the hazardous Volatile Organic Compounds (VOC), yet in Uganda these paints are still commonly used by the public. Matt paints already are produced on a water basis in Uganda. High gloss paints (approximately 30% of the market) however, still are not, as they require a specific production process. An additional advantage of water based paints, is the fact that it has a major positive impact on the environment. Applicant Sadolin Paints East Africa Ltd from Kenya and its sister company Sadolin Paints Uganda Ltd from Uganda are market leaders in the paint industries in their respective countries. As such, they want to be on the forefront with regard to technological innovations. For this PSI project, the partners want to invest in a paint production line for water based glossy paints and for water based architectural coatings. The former product is currently not available on the Ugandan market and thus will compete with solvent based glossy paints. The latter product is currently being imported and will thus act as import substitute. Although there is no legislation on the hazardous use of solvent based paint yet, the project partners want to think ahead and introduce innovative technologies in order to allow for new standards to be set. As both companies are owned by the same holding company, no new joint venture will be established. The project will be located at SPUL's current premises, in the Industrial Area of Kampala. Results • Result 1 : Inception and planning. • Result 2 : Building adapted and production lines operational. • Result 3 : Staff trained in production and certification protocols. • Result 4 : Pilot production, promotion and follow-up business plan.

Page 158 of 244

CSR aspects Both Sadolin Paints East Africa Ltd in Kenya and Sadolin Paints Uganda Ltd in Uganda are ISO 9001 certified. The new production lines will be incorporated in this quality control system. During the project, the partners intend to obtain ISO 14000 certification as well. This certificate focuses more specifically on environmental issues. With regard to occupational safety and working conditions it is worth noting that Akzo Nobel just recently started auditing both Sadolin Kenya and Uganda (and Tanzania), in order to make sure these 'Akzo agents' live up to the CSR standards Akzo Nobel has set for its activities worldwide. Last of all, Sadolin adopted the International Financial Reporting Standards in 2007. Impact


As demand for the 2 water based products will only rise gradually, investment in additional production capacity within two years after project completion is likely not required. The turnover in the second year after project completion will therefore be generated by the initial production capacity.


Twenty new people will be employed for the water based production lines. These people will be dedicated to these lines, as they require other skills than for the other production lines. 5 people will be medium / highly skilled. The remaining 15 are general production workers. Two years after the project has finished, this number will double to 10 medium / highly skilled and 30 basic skilled employees, in order to meet the increased demand. All employees will be paid at least 50% above local minimum wages. This includes bonuses, transport allowances and the like. On top, all employees are offered medical insurance under the Jubilee healthcare scheme, covering the employee, spouse and up to 3 children. Additional benefits include free lunch whilst on duty, protective company clothing and contribution to Uganda's pension fund NSSF.

Transfer of knowledge The technology to produce water based glossy paints and architectural coatings is new to Uganda, albeit related to the current practices of paint production. Additionally, the knowledge of ISO 14000 management standards, production protocols and environmental requirements is new to the industry in Uganda.

Chain effects This project will provide additional business for Sadolin's existing network of transporters and distributors. On the input side, a few local suppliers of calcium carbonate and grinded stones will be contracted. Also, the labelling and packaging industry will be involved. In total, a number of 10 organizations are expected to benefit from this project.

Environment An environmental impact assessment will be conducted. Sadolin Paints Uganda Ltd already has a waste water treatment facility, which will be used for waste water produced by this

Page 159 of 244

project as well. During the project, Sadolin Paints Uganda Ltd will obtain ISO 14000 certification. The positive thing of water based paints as compared to solvent based is the virtual elimination of hazardous Volatile Organic Compounds during production and application. On top, the paint can be easily washed away with water which is more environmentally friendly than thinner or other oil based products.

Position of women As a lot of labour involves dealing with heavy loads, the production is generally done by men. Out of the 5 higher skilled employees however, at least 2 will be female.

Other impact A long term effect of this project may be an improvement in environmental legislation with regard to the use of solvent based paints. At the moment, solvent based paints cannot be forbidden in Uganda as there is no alternative. With this project, an alternative can finally be provided.

Page 160 of 244

Uganda

PSI09/UG/21 Aloe Cure −−−− Carefully the best

Location Around Kampala

Sector Industry / Pharmaceutical

Applicant Rossen Seeds B.V., Hem, The Netherlands

Local partner NG'Kor Cottage Farm Ltd, Moroto, Uganda

Third partner Agroni Ltd, Moscow, The Russian Federation




Goal of the project

To establish a processing plant for Aloe Vera, capable of processing 500 tons of aloe leaves per year into 300 tons of aloe gel, aloe drink and aloe lotion for both export and the local market. Summary

In 2004, a national export promotion policy from the Ugandan government encouraged several farmers to start growing high value crops like aloe vera. Unfortunately, no attention was being paid to the processing and marketing of Aloe Vera, leading to several hundreds of disappointed farmers who now leave their Aloe Vera fields be. In this project, a factory for processing Aloe Vera leaves into gels, drinks and lotions will be established in order to finally give these farmers access to market. The Applicant in this project is Rossen Seeds B.V. from the Netherlands. Rossen Seeds B.V. is a breeding and production company for vegetable seeds, who is always on the lookout for interesting agricultural projects throughout the world. Rossen Seeds B.V. has experience in growing Aloe Vera in Niger, but discovered that Aloe Vera grown in Uganda yields much heavier leaves. Local partner NG'Kor Cottage Farm Ltd is a family owned, 2,000 acre farm in the Karamojong region in northeast Uganda, on which they herd cattle and grow various agricultural products. The 2 partners first met in 2006 and developed their plans over time. For financial purposes, a third partner, Agroni Ltd from the Russian Federation, has been added to the consortium and in order to have the required expertise for production and marketing of aloe products on board, the Nederlandse Bereidingsapotheek (NBA) has been added as a strategic partner. Initially a joint venture will be established between Rossen Seeds B.V., NG'Kor Cottage Farm Ltd and Agroni Ltd. At the end of the project, NBA will buy itself into the venture until all partners own 25% of the shares. The project will seek close collaboration with the Luwero Aloe Vera Growers Association that represents aloe farmers in several districts around Kampala. About 100 member farmers will deliver aloe leaves to the factory during the project period, leading to a substantial increase in their yearly income. This project will be the first to deliver such a steady marketing opportunity to these farmers.

Page 161 of 244

Results • Result 1 : Joint venture established. • Result 2 : Purchase, installation and commissioning of hardware, with parallel the

renovations of the factory building. • Result 3 : Training of staff, factory employees and farmer families. • Result 4 : Commercial production. CSR aspects The partners intend to adhere to local regulations. An environmental impact assessment (EIA) will be executed and submitted for approval to NEMA. During the building of the factory, the partners will implement GMP requirements. A GMP pre-audit will be part of the project results. The partners have signed an agreement with a local women's group, stating to recruit women from this group in particular, depending on the final location of the factory. Two thirds of all staff will be female. Last of all the partners agreed to establish an African Solidarity Fund from 2011 onwards in which 2% of total export turnover will be donated to be at the disposal of the Aloe Growers Service and the local women's group. Impact


The partners plan to invest another € 800,000 in the second year after project completion. This will be invested in leaf drying, cutting and packing equipment for the production of pure gel capsules. These investments will be done in accordance with the new division of shares in the joint venture, being 25% for each partner. The partners intend to continue their cooperation once the PSI project has finished. In the long run, they want to cover the whole of Uganda as far as aloe vera farmers are concerned.


The project will employ 29 people in total (24 basic-level, 5 high-level) and sign up contracts with 20 main outgrowers. Two years after the finalization of the project a total of 58 people is expected to be employed (48 basic-level, 10 high-level) and 40 main outgrowers to be contracted. Employees will be paid fair and competitive wages. In addition, € 15,000 per annum is budgeted for staff catering, social welfare and healthcare (this comes down to € 500 per person).

Transfer of knowledge The professional Aloe Vera processing technology is new to Uganda and thus adds to better and higher educated employees. Next to the joint venture's staff, Aloe Vera farmers will be trained through an aloe growers service. This service consists of a demonstration / test field adjacent to the factory on which farmers will be trained in good growing conditions, preparation of soil, plantation, fertilization, irrigation and harvesting and post-harvest handling. This is new to the country as well.

Chain effects The most important impact on the chain is that Aloe Vera farmers finally will have access to the market. During the project an estimated 100 farmer families will be involved, but this will soon double once the project is up and running. Farmers on average own 0.4 ha of Aloe vera. With a density of

Page 162 of 244

one plant every 2 m2, an average yield of 3 kg per plant per year and a price of € 0.25 per kilogram, every farmer can earn € 1,500 on a yearly basis. Next to farmers, the joint venture will also generate employment for about 20 transport companies for transport of leaves.

Environment The impact on the environment is neutral as no harmful chemicals will be used, nor will any harmful effluents be produced. The Aloe leaves waste will be fully recycled and sold as ingredient for capsules and tablets.

Position of women Two-thirds of all employees will be female (20 in total). This includes women on management positions, so 3 women will be employed in higher management.

Other impact After the second year of operation, the partners have agreed to establish the African Solidarity Fund. In this fund, 2% of all turnover generated through export to the Russian Federation and Europe will be donated and will be at the disposal of the women's group (25%) and the Aloe Growers Service (75%).

Page 163 of 244

Zambia

PSI09/ZM/21 Zambia's first manufacturers of high quality woven

polypropylene bags

Location Lusaka

Sector Industry / Packaging

Applicant AU-STAR CC, Johannesburg, Republic of South Africa

Local partner Specialized Systems Ltd, Lusaka, Zambia




Goal of the project

To establish a plastics factory for the production of 12 million AD PROTEX bags annually for the local and regional cement industry. Summary

Zambia has a substantial cement industry. Cement used to be packed in paper bags but this has almost completely been replaced by woven polypropylene bags. Polypropylene bags are stronger than paper bags which results in low breakage rates. In Zambia, 95% of all cement bags used are AD PROTEX bags. Applicant AU-STAR CC from South Africa used to be a distributor of plastics machinery and a consulting expert in the field. They used to sell machinery from Windmoller & Holscher and BSW, that is used to manufacture the AD PROTEX bags. Just recently, AU-STAR CC started to invest in its own plastics manufactories and now owns 4 factories in South Africa. Local partner Specialized Systems Ltd is a sales company and service provider in a wide range of sectors varying from sales and installation of ICT related products and supplying and servicing the health care sector, to delivery and installation of ATM's and sales of Philips Lightning systems. Specialized Systems is part of the Kenian based AJ Group who has subsidiaries in several eastern and southern African countries. Together, these partners want to establish Zambia's first local production factory for AD PROTEX bags. Initially, mainly the cement industry will be serviced, but in time the partners intend to supply the sugar, maize, tea, fertilizer and wheat industry as well. The partners will create a joint venture in which AU-STAR CC will take 30% of shares, and Specialized Systems 70%. The project will be located in Lusaka. Results • Result 1 : Project inception. • Result 2 : Purchase, transport and installation of equipment, start of promotion, start of

testing hardware and test production. • Result 3 : Knowledge transfer and training of general and technical staff. • Result 4 : Pilot production and business development. CSR aspects

Page 164 of 244

For Quality Assurance the partners will implement ISO 9001 and will take appropriate measures regarding public health, solid waste, liquid waste, sewage, water usage and energy saving. Impact


The partners intend to continue their cooperation once the PSI project is finalized. The partners will invest in a second production line, and an extrusion and weaving machinery to produce plastic fabric. This will be done in order to fill in market demand from neighbouring countries.


The project will provide jobs to 30 people: 5 in the office (all high skilled), 20 in operations (of which 9 medium / high skilled and 11 basic skilled) and 5 other (basic skilled). Since the extrusion and weaving process is very labour intensive, the project will employ a total of 170 employees (150 basic, 20 medium / high) two years after finalization of the project (80 additional people for the weaving and extrusion line, and 60 additional people for the double capacity AD CONVERTEX line and the additional production shifts). Wages will be compliant with other businesses and additionally the company will provide health care programmes and personal care for its employees.

Transfer of knowledge The knowledge of producing these kind of bags is new to Zambia and as such will enhance the level of technical professionalism in Zambia.

Chain effects This project will mainly affect the clients who now have to import their bags or use inferior material because of the high import costs. The product will easier available (just in time) which saves on stocking costs. Furthermore the company's clients will no longer bear the risks of fluctuating currency exchange rates.

Environment The (little) waste generated by this factory will be sold to local recycling companies. The bags are known to be reused time and time again. Because of their durability, the bags are used for storing food items, or to make seed containers in plant nurseries etc. As part of its quality assurance system, the partners take appropriate measures regarding public health, solid waste, liquid waste, sewage, water usage and energy saving.

Position of women Approximately 40% of all staff will be female.

Page 165 of 244

Asia

Page 166 of 244

Page 167 of 244

Afghanistan (PSI Plus)

PSIP09/AF/21 Good Agricultural Practices (GAP) centre for

Afghanistan

Location Kabul

Sector Agriculture

Applicant Alb Groot B.V., Schagerbrug, The Netherlands

Local partner Agricultural Business and Consultancy Afghanistan, Kabul, Afghanistan




Goal of the project

Providing key agricultural supplies, training and services to Governmental Organizations, NGOs and private farmers to promote GAP, food security and agricultural development. Summary

The project aims to establish a Good Agricultural Practices (GAP) centre near Kabul. The centre will include a warehouse for agricultural supplies, advisory services (soil, water, and pest analysis), a production workshop for simple tools (including spare parts and repairs), a demonstration and training facility and a cold storage. Target customers are Governmental organizations, NGOs and private farmers. Results • Result 1 : Business establishment. • Result 2 : Practical training and demo site in place. • Result 3 : Construction of warehouse, cold storage, training centre and small workshop. • Result 4 : Production, communication, quality management and spin off. CSR aspects The project will target the safe Application of agro chemicals and will contribute to a more selective application of pest control chemicals, which will be beneficial for the environment. The project partners will cooperate with local government agencies to develop a protocol for the handling of agro chemicals. Impact


The partners aim to roll out several other outlets in Afghanistan, investing another € 400,000. Turnover will increase to € 802,600, two years after the projects end.


The project will employ 17 people. Salaries will be above market average and employees will get one meal a day. The joint venture will ensure a clean and safe working environment in accordance with Dutch standards.

Page 168 of 244

Transfer of knowledge Seventeen people will be trained (10 basic-level, 7 medium-/ high-level). In addition, the project aims to train 150 NGO workers and 20 extension workers through a train the trainer concept. Theoretical trainings support the practical training in the demo field.

Chain effects The project can fulfil an important part in the agricultural value chain by guaranteeing a continuous supply of high quality agricultural inputs. Four companies will benefit directly from this project.

Environment The project can have a positive effect on the environment by improving the use of chemical fertilizer and reducing the use of pest control chemicals.

Page 169 of 244

Bangladesh

PSI09/BD/01 Introducing the production of PP / PE multi-layer

wide width liners and coatings for Flexible

Intermediate Bulk Containers

Location Gazaria

Sector Packaging industry

Applicant LC Packaging International B.V., Nieuwerkerk aan den IJssel, The Netherlands

Local partner Dutch Bangla Pack Ltd, Dhaka, Bangladesh




Goal of the project

To establish a production line for wide width coatings and wide width multi-layer liner films for application in FIBCs, with a capacity of respectively 343 tons per year (coating) and 1,067 tons per year (liner film). Summary

To facilitate the needs of high-end customers of flexible intermediate bulk containers (FIBCs or 'big bags'), the projects partners, LC packaging B.V. and Dutch Bangla Pack Ltd, will invest in a production facility for wide width multi layer liner material and wide width PP / PE coating for woven fabrics. Both semi finished products can be used in the manufacturing of specialized FIBCs for high-end users in the food, pharmaceutical and petrochemical markets. The project will be located in Gazaria, south of Dhaka. Since LC packaging is already 50% owner of Dutch Bangla Pack, the project will be implemented under the latter entity. Although coating of small width woven fabrics is already being done in Bangladesh, the proposed wide width coating line is new in both technological complexity (difficult to apply an equal layer) and application of the coated fabrics (e.g. seamless FIBCs). Normal, small width film extruders are used in Bangladesh for the production of – for instance – plastic bags for the export market. However, the proposed production of wide width liners will introduce new technology in both the larger diameter and the co-extrusion of multi layers. The liner material can be used as a specialized inner bag inside an FIBC. Other type of products from the wide width film extruder are for example sheeting for housing and agricultural applications. Results • Result 1 : Business structure established and completed design of production facility. • Result 2 : Production facility operational. • Result 3 : Staff trained en certification acquired. • Result 4 : Commercial production , sales and business development. CSR aspects

Page 170 of 244

The social standards of the project are laid down in the HR policy of DBP, ensuring excellent working conditions and secondary benefits like health insurance. During the project, the facility will be certified for: • ISO 9001:2000 (quality management). • ISO 14000 (environmental standards). • ISO 22000 (food safety management, including HACCP and BRC certification). • OHSAS 18001 (Occupational Health and Safety Assessment Series). Impact


Two years after the pilot, the follow-up investments will amount to € 2.0 million, spend on expansion and diversification of the production capacity. This will lead to a doubling of the turnover to € 3.6 million in the second year after the project.


The project will create 52 jobs (35 basic-, 17 medium-/high-level) and two years later this will be increased to 92 (67 basic-, 25 medium-/high-level). The least paid worker in the project will receive USD 54 per month, more than double the minimum wage of USD 24 per month.

Transfer of knowledge The training to operate and control the high tech machines will introduce new knowledge. Additionally, the ISO 22000 and OHSAS 18001 are rather uncommon in Bangladesh.

Chain effects The production and sales of high quality semi finished goods will stimulate other manufactures to improve their operations. As an unexpected spin off, the liner film extruder will produce sheeting for application in housing and agriculture.

Environment The ISO 14000 certification ensures proper environmental management systems. Additionally, the plant will recycle its cooling water after application in the production process, saving both water and energy.

Position of women The project prefers female candidates, but it is uncommon for Bangladeshi women to work in technical positions. However, the partners commit themselves to hiring at least 30% female staff, also in the medium/high positions (at least 5).

Page 171 of 244

Bangladesh

PSI09/BD/02 E.G.T. Textiles Ltd, a joint venture for the

production of wider width jacquard mattress

tickings

Location Gilarchala, Keowa, Sripur, Gazipur

Sector Textile industry

Applicant Enterprice Global Trading B.V., Enter, The Netherlands

Local partner Apex Jersey Ltd, Dhaka, Bangladesh




Goal of the project

To establish a production facility for high quality mattress ticking, with a capacity of 25 ticking per hour for the European and regional market. Summary

The project partners aim to develop a production facility to produce high quality wider width jacquard knitted mattress ticking products. Jacquard knitting is a high quality knitting technique that enables many technical features like computerised patterns. A mattress ticking is the cover (outer layer) of a mattress. The production facility will be set up in Gazipur, North of Dhaka by the project partners Enterprice Global Trading B.V. and Apex Jersey Ltd. Results • Result 1 : Set up of joint venture and factory design. • Result 2 : Production facility operational. • Result 3 : Recruitment and training of personnel. • Result 4 : Commercial production and certification. CSR aspects The partners want to comply with all relevant standards, concerning working conditions and environmental awareness. The following certificates will be obtained: • SA 8000 certificate (social compliance). • Wrapp certificate (Waste reduction and purchasing policy). • Oekotex 100 standard compliance certificate. • ISO 9001 certificate (Quality management system). • ISO 140001 certificate (Environmental management system). • Membership BGMEA (Bangladesh Garment Manufactures and Exporters Association). Impact


The partners plan to invest another € 800,000 in a quilting line, additional jacquard knitting machines and a laminating line within two years after the pilot. This will increase the expected turnover with 70% to € 4.3 million.

Page 172 of 244


During the project 70 jobs will be created of which 45 medium-/high-level. Two years later this will increase to 120 jobs of which 60 high-level. The wages will be at or above market average and the workers will receive additional benefits such as medical allowance, maternity benefit, festival bonus, provident Fund and paid overtime. The many certifications will guarantee good working conditions.

Transfer of knowledge Expertise about jacquard knitting and high end mattress ticking, transferred during the project, will be new knowledge.

Chain effects The project will generate indirect employment to 20 people in the value chain (yarn producers, quilting, transport, etc).

Environment The project will have a neutral impact on the environment. The production process does not require toxic chemicals and does not produce a lot of waste. The washing plant will have an Effluent Treatment Plant (ETP) for the waste water.

Position of women Given the nature of the operations (textile industry), the project partners expect that at least 70% of the employees will be female (50). Of the medium- and high-level jobs, 20% will be female.

Page 173 of 244

Indonesia

PSI09/RI/01 Lombok Sumbawa Flores Home Industries

Location Mataram, Lombok with branch on Sumbawa and Flores

Sector Decorative industry

Applicant Westkust Holland Export B.V., Egmond Binnen, The Netherlands

Local partner Satrya Putra Mandiri, Mataram, Indonesia




Goal of the project

The purpose of the project is to contract and train 1,200 home industries that deliver at least 20 different products attaining a volume of 30 sea containers for shipment to Europe. Summary

The applicant Westkust Holland Export B.V. is an importer and distributor of decorative products for flower arranging and general decoration. The partner CV Satrya Putra Mandiri is a trading company in decorative products from Lombok. The market in Europe for decorative products is continually changing. Buying patterns and trends change rapidly. Therefore Westkust Holland Export B.V. is forced to maintain a wide range of different products. Westkust Holland Export B.V. should broaden its product range with different ornamental products that are not available in the present sourcing areas of Java en Sumatra. Together with CV Satrya Putra Mandiri, Westkust Holland Export B.V. has identified the eastern islands of Lombok, Sumbawa and Flores as new sourcing areas. The inhabitants of these 3 islands have developed a large variety of handicrafts, however to date this has not been materialized. The islands are facing difficulties due to the geographical isolation, the lack of quality awareness and product renewal. The aim of the project partners is to establish an organization for sourcing of home industry products with large contracting schemes for the handicraft and collectors industry of Lombok, Sumbawa and Flores. The business will have branches with staff on each island to organise the cooperation with the home industries and to collect the products and prepare these for transport. Results • Result 1 : Joint venture established between applicant and partner. • Result 2 : Facilities constructed, equipment installed and 40 staff contracted. • Result 3 : Training of staff and home industry network established. • Result 4 : Pilot production and business development. CSR aspects The project partners will only trade in products that are environmentally sustainable. The partners will follow CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora).

Page 174 of 244

Furthermore, Corporate Governance according to the FCGI (Forum for Corporate Governance in Indonesia) will be implemented and sustainability will be monitored according to GRI (Global Reporting Initiative). Impact


The joint venture expects to grow to a volume of 150 containers per year before 2016. It is the intention of the partners to increase the capacity in 2013 and invest an additional € 500,000 to meet the future expansion. Investments in other regions in Indonesia such as Sulawesi, Kalimantan and Papua are also foreseen for a further diversification of the handicraft assortment. Expected turnover two years after the project has been finalized is € 1.0 million.


At the end of the project 40 jobs will be created of which 20 at medium-/high-level. Two years after finalization of the pilot 80 staff will be contracted. Salaries will be 15% above minimum wages. Furthermore, staff will receive a meal allowance, transportation fee and medical programme.

Transfer of knowledge New for East Indonesia is knowledge at the level of the home industries with regard to quality control, product information, planning, chain approach and communication.

Chain effects During the project 1,200 home industries will be contracted to produce and supply handicraft to the newly established joint venture.

Position of women As women are front runners in the handicraft industry it is expected that a high percentage of women will benefit from this project.

Page 175 of 244

Indonesia

PSI09/RI/04 Fresh cut, pre-packed and safe vegetables

Convenience products connecting Indonesian

farmers to new markets

Location Bogor, West Java Indonesia


Applicant Hessing B.V., Zwaagdijk-Oost, The Netherlands

Local partner PT Saung Mirwan, Bogor, Indonesia




Goal of the project

The purpose of the project is to set up a processing facility for the production of 450,000 kg fresh cut vegetables per year for the domestic market. Summary

The applicant Hessing B.V. has existed for over 40 years and controls the whole supply chain for fresh cut vegetables including cultivating, cutting, cleaning, mixing and seasoning to packing and shipment. It is the policy of Hessing B.V. to administer every phase of the supply chain in order to guarantee the best quality and food safety. The partner PT Saung Mirwan produces flowers and vegetables. The vegetables are produced through a network of outgrowers. Subsequently the vegetables are packed and distributed. In Indonesia the food service market is expected to increase substantially in the next couple of years. PT Saung Mirwan as a producer and distributor of fresh vegetables also received ample signals from retail and catering companies that there is a need for high quality, fresh cut and processed vegetables. However, catering for the food services' market is a highly specialized business that needs special skills, expertise and equipment. Currently hardly any domestic companies are able to supply the Indonesian food industry with fresh, safe and pre packed vegetables. To service these new markets the project partners aim to set up the first modern, large scale fresh cut vegetables factory. The processing facilities will be designed for maximum hygiene and HACCP certification is envisaged within the project. The processing facility will be established at the premises of the Indonesian partner near Bogor. For supply of vegetables existing and new outgrowers will be contracted mainly in the area of Bandung. An intensive agronomy training programme will be developed to support the outgrowers in Good Agricultural Practices and to prepare them for GlobalGAP certification. Results • Result 1 : Joint venture established between applicant and partner. • Result 2 : Facilities constructed and equipment installed. • Result 3 : Pilot Product Market Combinations and dissemination. • Result 4 : Training and agricultural support, certification and production target attained. CSR aspects HACCP and GlobalGAP will be implemented during the project.

Page 176 of 244

Because the processing of vegetables requires large quantities of water, equipment for cleaning the water will be installed. Further, the vegetable waste will be used by surrounding farmers for animal feed and compost. Impact


The joint venture expects to reach the maximum capacity of 2,000 tons processed vegetables per year in 2014. In order to increase the volume new washing, cutting and mixing equipment is required. Furthermore, new trucks and cooling facilities will be needed. This implies follow-up investments with an amount of € 700,000, two years after the project. Expected turnover two years after the pilot has been finalized is € 2.0 million.


During the project 61 jobs will be created of which 20 jobs on medium-/high-level. Two years after finalization of the pilot 100 staff will be contracted. Salaries will be 10% above minimum wages. Furthermore, staff will receive a medical insurance, meal allowance and pension scheme.

Transfer of knowledge The knowledge with regard to processing of fresh cut vegetables is new for Indonesia.

Chain effects During the project 250 outgrowers will be contracted and trained to cultivate different kinds of crops. The joint venture will negotiate the contracts with approximately 20 key farmers that represent the other farmers.

Position of women At least 50% of the staff to be employed will be women.

Page 177 of 244

Indonesia

PSI09/RI/23 Indosoya Sumber Protein. A soya based processing

pilot

Location Jakarta / West Java Region


Applicant HOS B.V., Haarlem, The Netherlands

Local partner PT Macrotama, Jakarta, Indonesia



Total budget EUR 1,498,000 (50 percent PSI contribution)

Goal of the project

The purpose of the project is to set up a processing facility for the production of 1,240,000 kg of UHT soya milk and 666,000 kg of tofu for the domestic market. Summary

The applicant HOS B.V. is an importer and exporter of used machinery. The local partner PT Macrotama Binasantika is a trading company in food ingredients, meat processing and bakery equipment. The need for protein for human consumption in Indonesia is high and Indonesia ranks among the countries that do not meet the required daily intake of protein per capita per day. Animal protein from meat, dairy, eggs and fish is scarce and expensive in Indonesia. To produce protein from animal origin is far less efficient in terms of energy, water and minerals compared to production of soya protein. Indonesia is familiar with soya related food such as tofu and soymilk. Soymilk can be an excellent source of protein for the population of Indonesia. It can be produced cheaply and it may well substitute milk. However, to date both soymilk and tofu are products of the home industries that do not comply with hygiene and modern quality certificates. Therefore, safe and certified soy products will be new to Indonesia and will serve modern retail, Horeca and food processors. Indonesia uses 2.2 million tons of soya of which almost one third is produced within Indonesia. Soya bean cultivation has been decreasing significantly due to the competitive soya offered on the world markets. The aim of the project partners is to set up a soya processing plant for soymilk and tofu production using new technology like Ultra High Temperature (UHT) treatment and pasteurization. These new technologies will lead to the production and marketing of food safe soya beverages for low prices. In addition the project partners will stimulate the domestic soya crop production through issuing farm contracts for direct sourcing. A joint venture will be established between HOS B.V. (30%) and PT Macrotama Binasantika (70%). Results • Result 1 : Project inception and joint venture established. • Result 2 : Construction and installation.

Page 178 of 244

• Result 3 : Training, product pilot production preparation for certification, product development, soya farm promotion.

• Result 4 : Pilot production and business development. CSR aspects Good Manufacturing Practice and HACCP will be implemented during the project which also addresses the waste management practice and energy use. Good Agricultural Practice for soybean cultivation is not yet defined by the Indonesian authorities. Nevertheless, the project will assess the soybean cultivation and determine rules for Good Agricultural Practice. Further, CSR will be monitored and evaluated according to the Forum of Corporate Governance in Indonesia. Impact


The joint venture expects to reach the maximum capacity in 2015. Two years after the project the partners intend to invest in product innovation and diversification by adding value to the Okara (solid by product) that is initially sold to farmers as animal feed. These investments will comprise of the construction of auxiliary buildings and new state of the art equipment and installations. This implies follow-up investments with an amount of € 800,000. Expected turnover two years after the project has been finalized is € 2,500,000.


During the project 50 jobs will be created of which 20 jobs on medium-/high-level. Two years after finalization of the project 95 staff will be contracted. Salaries will be 15% higher than official minimum as per Indonesian law. Furthermore, staff will be provided with support for medical insurance and care as well as meal allowance.

Transfer of knowledge The knowledge with regard to UHT technology for soymilk and pasteurization technology for tofu preparation is new for Indonesia.

Chain effects During the project 400 outgrowers will be contracted and trained to practice sustainable soya farming. Soy bean cultivation has been decreasing significantly in Indonesia due to the competitive soya offered on the world markets. Therefore, the project partners aim to revitalize regional and domestic soya bean farming in cooperation with the Ministry of Agriculture, Bogor Agricultural University and practical Dutch consultants.

Position of women At least 60% of the staff to be employed will be women.

Page 179 of 244

Mongolia

PSI09/MN/01 Private University Hotel Management Institute of

Mongolia

Location Ulaanbaatar

Sector Education / Tourism

Applicant Schiphorst Holding B.V., Breda, The Netherlands

Local partner Gardi Tours Co. Ltd, Ulaanbaatar, Mongolia




Goal of the project

The foundation of a private training institute in hotel and tourism management offering a one year college programme for students and contracted training for employees in the hotel and tourism industry in Mongolia. Summary

Within the proposed project Schiphorst Holding and Gardi Tours will establish a private training institute in hotel and tourism management. The Institute will offer a one year college programme for students and contracted training for shorter periods for employees in the hotel and tourism industry. The Institute will consist of classroom training facilities, as well as on-the-job training facilities in the form of limited hotel rooms, a restaurant and hotel reception and shop. Next to the Institute a dormitory will be constructed for on-campus students from outside Ulaanbaatar. The training programme will be developed, implemented and monitored by INHolland University of Applied Sciences, Department of Tourism and Recreation management, and the Mongolian University of Science and Technology (MUST), Department of Tourism management and Regional studies. INHolland and MUST will train the Mongolian teachers who will teach students and hotel / tourism personnel at the Institute. The rationale for the proposed project is the rapid growth of the tourism industry in Mongolia combined with the current lack of adequately trained Mongolian hotel and tourism management personnel. At the Institute Mongolian students and hotel / tourism personnel will acquire the necessary professional skills in order to acquire management positions in one of the existing or new (international) hotels and tourism enterprises in Mongolia. The majority of management jobs are currently occupied by foreign personnel due to the lack of qualified Mongolians. Through the 'upgrading' of professional skills in hotel and tourism management, this project will improve the employment opportunities and income conditions for Mongolian students and people working in the hotel and tourism industry and provide a stimulus for the further development of the industry in Mongolia. Results • Result 1 : Establishment of a new judicial entity between Schiphorst Holding and Gardi

Tours and partnership with INHolland and MUST.

Page 180 of 244

• Result 2 : Development of educational training programmes. • Result 3 : Selection and training of teachers and staff. • Result 4 : Design and construction of the Institute and dormitory. • Result 5 : Start and first year implementation of the college year and contracted

training. CSR aspects The project is supported by the Mongolian Ministries of Education and Tourism. The Institute and the educational programme will be certified by the Ministry of Education. Impact


In the two years after project completion project partners expect that the capacity of the Institute will be insufficient to facilitate the growing number of students and trainees for contracted training and they will need to look for another location in cooperation with MUST. This will result in follow-up investments of about € 600,000 for construction costs and € 200,000 for interior training facilities and education materials.


The Institute will employ 8 full-time Mongolian mentor and assistant teachers, 4 part-time Mongolian / foreign visiting lecturers and 8 Mongolian / foreign staff members. Besides 3 Mongolian guards, all are medium-/high-level employees. In the second year after the project's completion the Institute will employ 14 full-time Mongolian teachers, 7 part-time Mongolian / foreign visiting lecturers and 11 Mongolian / foreign staff members, of which 3 guards. Wages are on average 20% higher than the regular wages for similar jobs in Mongolia. This is related to the higher workload of mentor and assistant teachers compared to regular schools and universities. All teachers will be given board and lodging in the city or at the campus and a contribution in their pension and medical insurance plan.

Transfer of knowledge The envisioned concept of vocational training in a realistic hotel / restaurant setting, similar to the European "hotel schools", is completely new in Mongolia. The transfer of knowledge will focus on understanding western expectations of the touristic product. This aspect is new to Mongolian teachers in the field of hotel / tourism management. After being trained by staff from INHolland and MUST, they will in turn transfer this knowledge to Mongolian students and hotel / tourism personnel. The knowledge transfer will lead to an 'upgrading' of professional skills in hotel and tourism management in Mongolia.

Chain effects Through the 'upgrading' of professional skills in hotel and tourism management, the project will improve the employment opportunities for Mongolian students and people working in the hotel and tourism industry. The availability of qualified local hotel / tourism personnel will in turn stimulate further development of the tourism industry in Mongolia. It is expected that other public and private universities in Mongolia will copy the vocational training methods. In fact, the

Page 181 of 244

Mongolian Ministry of Education has already adopted a policy of stimulating vocational training centres.

Environment The construction of the Institute will pose no environmental threat since there is no special flora or fauna at the site in Ulaanbaatar. The Institute will pay special attention to responsible management regarding the environment. Hotel / tourism managers who are trained at the Institute will influence the decision making process regarding environmental aspects in their own companies.

Position of women Within the workforce of teachers and staff, special attention will be paid with respect to hiring female employees. They will have equal salary and rights for similar positions as male employees.

Other impact Through this project INHolland and MUST will closely collaborate, it is expected that this relation will continue after the completion of the project.

Page 182 of 244

Nepal

PSI09/NP/21 Gandaki International

Location Kathmandu

Sector Agriculture

Applicant Honey International B.V., Almkerk, The Netherlands

Local partner Gandaki Bee Concern, Kathmandu, Nepal

Third partner De Traay B.V., Lelystad, The Netherlands

Start project 01 February 2010



Goal of the project

Establishment of a long-term sustainable cooperation between Honey International and Gandaki Bee Concern for the production and marketing of (organic) honey products (up to 280 tons per year) with a controlled supply chain from the flower to the market. Summary

Considering the ecological and biological diversity, Nepal is recognised as one of the most potential countries for mass scale beekeeping. It is estimated that Nepal has a potential of producing more than 10,000 metric tons of honey, but is currently harnessing less than 15% of its potential. Honey International (HI) and Gandaki Bee Concern (GBC) want to develop a cooperation to increase both quality and quantity of bee products (honey) in Nepal for local demand and export purposes. The partners will establish a new joint venture to process the current honey supply of GBC according to HACCP standards and process, market and export several niche products (organic honey, rock honey, api health products). The partners will set up a bee resource (queen rearing) centre and a quality control laboratory. The processing facility will be in Kathmandu and the partners will train 600 (and contract 300) small beekeepers in remote, rural areas of Nepal. Improving the honey sector in Nepal can have a large impact on marginalized minorities in the remote rural areas of Nepal. Currently, Nepal cannot export honey to countries in the EU. Results • Result 1 : Set up joint venture and paper work. • Result 2 : Service and training centre established, beekeepers contracted. • Result 3 : Processing facility. • Result 4 : Quality control laboratory. • Result 5 : Market development, export and sales. CSR aspects Collection of Rock honey is considered a cultural phenomenon of some marginalized minorities and is done in a traditional (and hazardous) way.

Page 183 of 244

The project will establish an association of rock honey hunters that will supply safety training and equipment and educate the hunters in sustainable ways to collect rock honey. The project will certify part of the production as organic and has a strong vision on CSR. GBC is an active member of CSR network Nepal and reflects the 10 principles of the UN Global Compact. In line with GBC's current policy, the joint venture will take a pro-active stance in Human rights, labour, environment and anti-corruption issues. Impact


The partners intend to invest another € 200,000, within two years after the project in additional beekeepers, collection equipment, processing and packaging expansion and marketing. This will result in more than doubling of the turnover to € 265,700, two years after the project.


The project will create 55 basic-level and 15 high-level jobs, additional to the 40 current employees of GBC. Two years after the project, this will be increased to 70 basic-level and 30 high-level jobs.

Transfer of knowledge Modern beekeeping techniques (seasonal management) are new for Bangladesh. The project will train staff in HACCP standards, and train certain beekeepers in organic beekeeping. In addition it will introduce queen rearing Artificial Insemination (AI) technology.

Chain effects The project will train 600 new beekeepers and contract 300. The increased productivity and possible export of honey will have a positive impact on the sector.

Environment Beekeeping is an environmentally friendly activity and pollination is essential for flora propagation. The project will develop certified organic honey and promote sustainable collection methods for rock honey by local bee hunters.

Position of women 60% of the project's staff will be female, including 9 out of 15 medium-/high-level jobs.

Page 184 of 244

Nepal

PSI09/NP/22 Golmagad Hydro Project

Location Bandungrisian VDC, Doti (far western district)

Sector Energy

Applicant E & Co Bangkok Co. Ltd, Bangkok, Thailand

Local partner Manasarowar Power Pvt. Ltd, Kathmandu, Nepal

Third partner E & Co Inc., Bloomfield, USA




Goal of the project

Establishment of a 580 kW hydro power plant to feed into the national grid, and (improved) irrigation to 125 ha of farm land. Summary

Despite having a huge potential in hydro energy, the hydro sector still remains underinvested and underdeveloped in Nepal. Nepal's electrification rate is a mere 40% and even this 40% has to bear long hours of power outages every week. E & Co Bangkok Co. Ltd aims to invest in Manasarowar Power to set up a small scale hydro power plant that innovatively combines electricity generation with improved irrigation. The site is located in a remote and poor, rural region, near Doti in the Far Western District of Nepal. The project uniquely utilizes an existing water transport canal and will establish irrigation facilities for the neighbouring farmers as part of the water discharge of the electricity plant. Results • Result 1 : Cooperation formalized. • Result 2 : Civil works and canal repair and upgrading. • Result 3 : Powerhouse installed. • Result 4 : Staff trained. • Result 5 : Hydro power station operational, first sales. CSR aspects As a major enterprise in the area, the local partner is keenly aware of its CSR. The company expects to be involved in boosting agricultural output of the area by increased use of the available water. It will use its technical expertise and knowledge and contacts to assist the local farmers to produce and market their produce. The project will also be involved in supporting the local community in social and environmental development aspects. Having worked for GTZ, the local partner is familiar with best practice in terms of maximizing developmental, social and environmental benefits of hydro projects. Impact

Long term economic The nature of hydropower is such that the output of any

Page 185 of 244

activity individual project will remain more or less the same throughout its life. As such, Golmagad project will not increase its output over the years. However, the company is undertaking other feasibility studies for which PPAs will be applied for from NEA at a later date. This will be done with Manasarowar Powers or other partners as deemed appropriate. Some of the revenues generated from this project will be used for the development of other hydro projects in the future. E & Co Bangkok Co. Ltd expects to invest in other hydro projects that will be developed by the local partner in the future. Depending on the feasibility studies, the follow-up investments range from € 500,000 to € 5.0 million.


The project will create 10 jobs. 4 will be at basic-level labourers, guards and general handymen. Three will be high- level technicians who will operate and run the system and one administrative level staff. Two will be managerial and engineering and to provide the overall management and technical guidance. The yardstick for wages and benefits will be that of NEA, the national utility, whose pay scale is much higher than the national average. In additional the employees will get bonuses based on the profits earned and performance related bonuses. On average the employees' package will be 50 to 100% more than that of an average private sector employee. Other benefits will include health and accident insurance, travel and housing benefits.

Transfer of knowledge Most of the skill and knowledge required is available in Nepal, but not locally. Specific proprietary knowledge will be made available from the equipment manufacturers.

Chain effects Once the power plant starts operating, water will be available continuously which should enable the farmers to diversify their crops and to increase their planting of cash crops thus leading to increased income. An additional 50 ha of land will get water for irrigation. The presence of a technologically competent organization established in the locality will also provide additional source of information and support for other entrepreneurial activities which the water users and others may wish to establish. Although there are many opportunities, the hydro sector still remains under-invested and underdeveloped in Nepal. E & Co Bangkok Co. Ltd believes that this opportunity will help it break into this market and create further investment opportunities in the future, by promoting Independent Power Producers (IPPs) to help bring a more diversified and stable supply of electricity on a national level.

Environment The ecological / environmental impact of small-scale micro

Page 186 of 244

hydro of this kind is minimal. In addition, this project will use an already existing irrigation canal constructed by the Irrigation Department 15 years ago – so the impact of this facility is well known in the area. Small scale hydro projects do not produce any carbon dioxide, sulphur dioxide, nitrous oxides and there are no methane emissions because it does not involve any inundation and flooding of vegetation.

Position of women Approximately 20% of the work force will consist of women i.e. out of 10 employees 2 will be women. One of the women will work as the administrative staff and the other is expected to work at the project site as a basic-level staff.

Page 187 of 244

The Palestinian Authority (PSI Plus)

PSIP09/OT/21 Fair Trade organic ISO 22000 compliant olive

processing for export in Jenin, Palestine

Location Jenin

Sector Agriculture

Applicant Dr. Bronner's Magic Soap Inc., Escondido − California, USA

Local partner Canaan Co., Jenin, Palestine

Third partner Zaytoun Common Interest Company, London, United Kingdom

Start project 01 October 2009



Goal of the project

Annual production of 500 tons of fair trade organic olive oil and 30 tons of fair trade and organic pickled olives for the North American and European market. Summary

The project joint venture 'Canaan Processing' will establish a processing line to bottle Fair Trade organic olive oil and pickled olives according to ISO 22000 standards. Without the ISO standards, it is not possible to access the international market beyond bio and solidarity shops. The processing unit will be in Jenin, Palestine. The Applicant company is Dr. Bronner's Magic Soaps Inc. from the USA. The local partner, Canaan Co., already has an extensive network of small farmers that produce organic and fair trade olive oil. The third partner, Zaytoun Common Interest Company from the UK, will be responsible for developing the sales to the European supermarkets. The project will train 700 Palestinian small holder farmers in ISO 22000 (including HACCP) compliant olive production and processing and will ensure that they will maintain access to the North American and European Market. Results • Result 1 : Establishment of the joint venture. • Result 2 : Building prepared and equipment installed. • Result 3 : Employment and operational training. • Result 4 : Training for certification and successful test run. • Result 5 : ISO 22000 certification and commercial production. CSR aspects For Canaan's products, certifications for fair trade and organic are essential. Canaan is very active promoting and supporting training and certification of farmers of both fair trade and organic. These standards will also be incorporated in the ISO monitoring and certification. In addition, the joint venture will guarantee good working conditions and security protocols. The joint venture will be a certified fair trade organization. Impact

Page 188 of 244


The partners envisage additional investments in the joint venture of € 2 to 3 million, increasing production capacity and training an additional 1,300 farmers. The turnover is expected to amount to € 8 million by that time.


The project will create 22 full-time jobs. Twelve medium-/high-level and 10 basic-level. Additionally, 40 seasonal jobs (5 months) will be created. The salaries will be 25% above the average market salaries (the Palestinian Authority does not oblige a minimum wage). These jobs are additional to the 27 full-timers and 40 seasonal workers that currently work for Canaan, whose jobs will be secured. ISO 22000 and HACCP criteria will require good working conditions.

Transfer of knowledge The certifications for ISO 22000 and HACCP are new for Palestine.

Chain effects At least 4 companies will benefit continuously as suppliers to the facility. In additional approximately 1,000 farmers will deliver olives and oil to the new joint venture. Farmer groups will be strengthened and local presses will be brought to ISO 22000, fair trade and organic standards.

Environment Production of organic olives is per definition not harmful for the environment. Given the dry climate and water shortage in Palestine. The washing water is reused for several batches, reducing water usage to 60 litres per ton for oil and 100 litres per ton for table olives. As the harvest is in the rainy season, water availability is not problematic.

Position of women Canaan is very active in promoting gender equality, which is very uncommon in the agro industry in Palestine. Women will be recruited for 40% of the newly created full-time jobs. The seasonal workers are all female.

Other impact The project is strongly embedded in the local society. Canaan's involvement in and drive behind the Palestinian Fair Trade Association will positively impact many small farmers in the West Bank.

Page 189 of 244

Thailand

PSI09/TH/01 Development, manufacturing and marketing of

high-tech cryogenic equipment

Location Pathumthani

Sector Transport industry

Applicant Rota Holding B.V., Nijkerk, The Netherlands

Local partner Cryotech Company Ltd, Pathumthani, Thailand




Goal of the project

The goal of this project is to set up a pilot project for the design and manufacturing of high-quality cryogenic equipment with a capacity of 50 cryogenic units per year in Thailand. Summary

The project partners aim to set up a production facility to produce internationally certified cryogenic pressure vessels and equipment for the ASEAN market in Thailand. These products have to meet high international quality standards and require substantial engineering and production skills. A substantial training programme is therefore envisaged. Rota Holding B.V. will bring in both technological design and commercial added value to enable Cryotech to update and diversify its product range and to improve its international marketing skills. The project will create 25 new jobs and will train 60 employees (including the already existing employees at Cryotech). Results • Result 1 : Inception phase, set up of joint venture. • Result 2 : Delivery and installation of hardware and technical assistance. • Result 3 : Local training programme and start of production. CSR aspects The partners want to comply with all relevant standards concerning working conditions and quality systems (IMO code, ISO 9001:2000, A.S.M.E. and PED 97/23/EC) externally audited. The project will also install an active waste management system. The partners will at least pay double minimum wage and will provide all necessary protective clothing and devises as will be stated in the health and safety programme in the project. In addition, the partners will provide social facilities such as sponsored meals and educational programmes. Impact


The partners plan to invest another € 1.0 million in the expansion of the production location by acquiring the adjacent land to be able to extend the current production facility. This will increase the expected turnover with 80% to € 4.5 million.

Employment and During the project, 25 new jobs will be created of which

Page 190 of 244

working conditions 10 medium-/high-level. Two years later this will increase to 60 new jobs of which 15 medium-/high-level. The wages will be at least 50% above the minimum wage.

Transfer of knowledge Training will be an important part of the project focussing on design (using 3-D software), welding, quality control (weld rejection rate of less than 3%), safety and work environment and management. The comparative level that will be taught is the equivalent of the Dutch HTS.

Chain effects More than 95% of all raw materials and inputs will be sourced from local Thai companies. As such, the project may well generate indirect employment among these companies. Due to the high demands set by international production standards on material quality, suppliers will be educated by the project. Together with the supplier, the partners will set up procedures to ensure a reduction of non-conformity. Suppliers will also be audited, so that lower rejection rates can be obtained.

Environment The project will have a neutral impact on the environment. Strict waste management will be observed. Steel and components will be recycled where possible. Focusing on energy efficiency and waste minimization is an active policy at Rota Holding B.V. to benefit the environment and to decrease production costs.

Position of women The workforce will consist of 20% women (engineering, planning, design, quality control and support).

Page 191 of 244

Thailand

PSI09/TH/02 Tropical Shallot Planting Material

Location Chiang Mai

Sector Agriculture

Applicant De Groot en Slot Allium Beheer B.V., Heerhugowaard, The Netherlands

Local partner D.A.T.T. Co. Ltd, Chiang Mai, Thailand




Goal of the project

To establish a facility for the production of 1,950 tons of shallots bulbs (F1) per year. The facility will include a Primary Production Site and a Demonstration and Training Farm. Summary

The Dutch applicant De Groot en Slot Allium Beheer B.V. (DGS) is worldwide probably the only company that produces and sells shallot seed. Furthermore, it supports its worldwide clients by providing technical assistance bringing together shallot producers and buyers / users, and by launching commercial activities to promote the use of shallots. DGS has developed shallot seed from local varieties found in Thailand. In the project, DGS will form a joint venture with the Thai company D.A.T.T. Co. Ltd (DATT) to introduce the use of clean shallot bulbs derived from seed to raise the crop yield by 35 to 50%. To accomplish this, the joint venture will set up a Primary Production Site (PPS) and Demonstration and Training Farm (DTF). At the PPS shallot seed supplied by DGS will be used to grow clean shallot bulbs (F0). The F0 bulbs will be propagated by dedicated growers, to produce a clean F1 generation that will then be sold to farmers to produce shallots for consumption (F2). At the DTF, dedicated F0/F1 growers and those that will use the F1 material will be trained to ensure an optimal benefit for using these clean shallots. The trained contract growers (30) and outgrowers (225 during the pilot project) will be stimulated to organise themselves into a cooperation, allowing the joint venture to provide continuous education and materials, including agricultural machines (buy, lease, or rental). Results • Result 1 : Establishment of joint venture and obtaining all required permits. • Result 2 : Recruitment and training. • Result 3 : Set up of building facilities and installation of hardware. • Result 4 : Implementation of cultivation cycles. • Result 5 : Promotion and sales. CSR aspects The joint venture will implement a CSR policy that is similar to the CSR-policy of DATT. The joint venture will only hire personnel from 18 years and older and all employees will be contracted. The CSR policy will include topics on labour standards, personnel policy, health

Page 192 of 244

and safety, environment and food safety (GlobalGAP, Thai-GAP and Thai-GMP and HACCP certification) rights of local population, chain responsibility, human rights, corruption and Corporate Social Involvement. Impact


Follow-up investments are planned at € 600,000 and include expansion of the Primary Production Site (PPS) and construction of additional buildings and facilities (drying, storage and office space). This will increase the expected turnover to € 3.8 million. The project partners intent to reach 50% market share in 2019.


The project will create 31 new jobs including 16 medium-/high-level jobs. In addition, the project will include 30 contract growers and 225 outgrowers. Two years after the realization of the pilot project, this will increase to 75 jobs (including 30 medium-/high-level positions), 70 contract growers and 800 outgrowers. The employees are paid at least 10% higher wages compared to the market. The joint venture will ensure that the farmers will receive a higher price for their superior quality crop than they are currently receiving for their shallots.

Transfer of knowledge The project will train 15 basic-level employees and 16 medium-/high-level employees. In addition, 30 contract growers will be trained and 225 outgrowers.

Chain effects The project includes both contract farmers and outgrowers. In addition, the farmers will be stimulated to organise themselves into cooperations.

Environment The project will have a neutral-positive effect on the environment. As healthier starting material will be used for growing shallot crops, there will be less need for fertilizers and pesticides to produce high harvest yields of good quality. In addition, the F0/F1 planting material will be produced conform GlobalGAP requirements.

Position of women Most of the joint venture employees will be female including 1 woman at the higher management positions (out of 3).

Other impact It is foreseen that 10% of the wage costs will be put into special CSR projects. The initial idea is to use this to fund a project that will give young, promising people the chance to receive a scholarship for the University of Agriculture (MAEJO) in Chiang Mai.

Page 193 of 244

Thailand

PSI09/TH/21 Production of vacuum over dried HVP's and reaction

flavours in Thailand

Location Samutprakarn


Applicant Exter B.V., Zaandam, The Netherlands

Local partner Thai Theparos, Samutprakarn, Thailand




Goal of the project

The goal of this project is to establish a production facility for hydrolyzed vegetable protein (HVP) and reaction flavours in Thailand. Summary

As a result of economic growth and rising purchasing power in Southeast Asia, the demand for processed food is on the rise. An important input for processed food items, such as ready-to-eat meals, snacks, soups and sauces, is hydrolyzed vegetable protein (HVP), a flavour enhancer. In order to benefit from this business opportunity, Dutch company Exter and local company Thai Theparos wish to establish a modern production facility for vacuum oven dried HVP's and reaction flavours on the premises of the local partner in Samutprakarn Province. Exter is an independent, privately owned producer of flavourings for the processed food industry. Thai Theparos produces seasoning products, such as sauces and bouillons, mainly for the Thai market. Under a joint venture these partners will produce a range of HVP products and reaction flavours that will be sold to the food industry in Thailand and abroad. The project introduces new technologies for the production of these items to Thailand. Furthermore, it offers better and higher quality ingredients to the fast-growing food industry in Thailand, providing them with a better market position and improved export possibilities. Results • Result 1 : Establishment of joint venture. • Result 2 : Production area built. • Result 3 : Installation of hardware. • Result 4 : Hardware tested, personnel hired and trained. • Result 5 : Production and Business development. CSR aspects Within the project, a Human Resources Policy will be developed and implemented. The HRM policy will cover transport, meals, bonuses, medical arrangements and employee safety. HACCP and ISO 9002 certifications will be obtained to ensure food safety. An Environmental Impact Assessment will be executed before the production facility will be established. Impact

Long term economic The planned follow-up investments in the two years after

Page 194 of 244

activity project completion are comprehensive. These investments consist of a doubling of capacity of evaporation equipment and ovens. As a result of these investments in capacity expansion, the expected turnover in the second year after finalization will increase significantly.


The project will create 15 direct jobs. This number will grow to 23 in the second year after the project. 4 of these jobs are medium-/high-level. The remaining 11 positions are basic-level production employees. The joint venture's salaries will be at least 33% higher than the applicable minimum wage. Furthermore, partners will develop an HRM policy that includes transportation, pension fund, health care and several performance related benefits.

Transfer of knowledge The project introduces knowledge and technology to the country, since industrial production of reaction flavours is completely new to Thailand.

Chain effects Chain effects are concentrated forward in the chain. The increased availability of quality food flavours will benefit the growing food processing sector in Thailand, since it will enable the industry to develop innovative products and improve competitiveness in relation to multinational food companies. Furthermore the higher quality produce will enable Thai processed foods producers to market their products on Western markets.

Environment An Environmental Impact Assessment will be performed before construction of the production facility will commence. Production processes of the facility have a neutral impact on the environment.

Position of women No specific measures to improve the position of women will be taken.

Page 195 of 244

Vietnam

PSI09/VN/01 Pilot production of high value added chocolate

decorations for export

Location Dong Nai


Applicant Dobla Beheer B.V., Heerhugowaard, The Netherlands

Local partner BO NI VA Co. Ltd, Ho Chi Minh City, Vietnam




Goal of the project

To establish a HACCP, ISO 14001 and ISO 9001:2000 certified manufacturing facility for the production of 28 containers of high value added hand-made special designed semi finished chocolate products and chocolate decorations for export. Summary

The Dutch applicant Dobla B.V. produces and sells chocolate decorations in over 50 countries worldwide. Dobla wants to establish a production facility for the production of its customer made special designed semi finished chocolate products and chocolate decorations for the upper-high market segment for exports. Applicant Dobla will set up a joint venture with the Vietnamese chocolate producer (bonbons) Boniva Ltd. The project will produce 2 sorts of products: 1. Products of Dobla's Chef's Collection (Twist, Rio and Tube which are handmade customer

made and special designed semi finished chocolate products & chocolate decorations for the upper-high market segment).

2. Specialty hand-made chocolate cups for the upper-high market segment for the USA market (Tulip).

The project will include modification of a building for the production facility, including office, storage and production line as well as a training facility. The facility will acquire certification on HACCP, ISO 14001 and ISO 9001:2000. Forty people will be contracted and trained. In addition, at least 7 subcontractors will be connected to the project. Results • Result 1 : Inception and set up of joint venture. • Result 2 : Modification of building, storage office & facilities including hardware. • Result 3 : Recruitment and training of staff. • Result 4 : Pilot production. • Result 5 : Bankable business plan & certification. CSR aspects The project will acquire HACCP certification as well as ISO 14001 and ISO 9001:2000 certification. In addition, Dutch working standards as used by Dobla in the Netherlands will also be implemented in Vietnam.

Page 196 of 244

Impact


In the two years following the project's completion, Dobla and Boniva will further invest in the expansion of the production capacity (building, production lines, expansion of the assortment, cooling facility, storage and transport facility).


The project will create 40 new jobs of which 6 medium-/high- level and will include 7 subcontractors. Two years later, this will increase to 53 jobs and 15 subcontractors.

Transfer of knowledge The project will train 34 employees on basic-level and 6 employees on medium-/high-level.

Chain effects The project will have a positive effect on local companies in the field of transport, packaging materials, import / export and trade.

Environment The project will have a neutral environmental effect and will include an environmental impact assessment.

Position of women In total 60% of the workforce will consist of women.

More information www.dobla.com

Page 197 of 244

Vietnam

PSI09/VN/02 BRC certified rice vermicelli production with

outgrowers in Southern Vietnam

Location My Phuoc Industrial Park (MPIP), Binh Duong Province


Applicant Sukmono B.V., Oss, The Netherlands

Local partner Nhat Nam Phuong Ltd and North Wind Hotel Ltd, Ho Chi Minh City, Vietnam




Goal of the project

To establish a BRC, ISO 14001 and ISO 9001:2000 certified dried rice vermicelli production facility, with a capacity of 2,160 tons of rice vermicelli per year for both industrial use and the retail sector for export. Summary

The Dutch applicant Sukomono B.V. produces and sells traditional ready-made Asian meals for the European market and intends to establish a rice vermicelli production facility near HCM City, sourcing rice both from rice processors and outgrowers within the region. For this purpose a joint venture will be set up with the Vietnamese packing company Viet Phat JST Co. Ltd and the HCM City based hotel North Wind. The project will include a production facility with processing equipment and a water treatment unit. The project will acquire certification on BRC, ISO 14001 and ISO 9001:2000. A number of 104 staff will be employed and trained in different aspects related to production, safety, HIV / AIDS prevention and quality management. In addition, 50 rice growers will be trained in applying Best Management Practices (BMP). The partners will enter into a long term buying arrangement with the outgrowers for the supply of rice. Results • Result 1 : Business structure established. • Result 2 : Production facilities operational. • Result 3 : Staff recruited and trained. • Result 4 : Outgrowers trained. • Result 5 : Business development & certification. CSR aspects The project will acquire BRC certification (handling and storage of food products) as well as ISO 14000 and ISO 9001:2000 certification. In addition, the partners will provide staff with above-average employment contracts in which staff are remunerated for at least 120% of the prevailing wages. The partners will provide excellent working conditions as well as medical insurance to staff. Adjacent to the factory, the project partners will build housing facilities (dormitories) for factory employees. Impact

Page 198 of 244


The project partners plan to further invest in the increase of the production capacity and in product diversification.


The project will create 104 new jobs of which 22 medium-/ high-level and will involve 50 outgrowers. Two years later, this will increase to 164 new jobs of which 42 medium-/high-level and will include 600 outgrowers.

Transfer of knowledge The project will train 82 basic-level employees and 22 medium-/high-level employees. In addition, at least 50 outgrowers will be trained in BMP.

Chain effects During the project period, the rice will be sourced from rice processing companies and from outgrowers. Hence, rice suppliers will benefit from the project in terms of supply to the joint venture. In case the rice is directly sourced from the outgrowers, the joint venture will outsource the washing and sorting to the rice processing companies.

Environment The impact on the environment will be positive as the project will introduce energy saving measures and modern water recycling and filtering technologies. In addition, the joint venture will comply with ISO 14001 certification.

Position of women The workforce will consist of 25% women.

Page 199 of 244

Vietnam

PSI09/VN/21 Saigon Port Training Centre

Location Ho Chi Minh City

Sector Education

Applicant STC B.V., Rotterdam, The Netherlands

Local partner Saigon New Port Company, Ho Chi Minh City, Vietnam




Goal of the project

The goals of the project is to establish, build and operate a port training centre for professional port and transport managers, supervisors and workers to increase the efficiency in all Vietnamese ports. Within the scope of the project in total 240 students will be trained at the centre. Summary

The project will establish a training centre in Ho Chi Minh City for the port- and transport market: despite the need for human resource development and great demand for skilled workers, such an institute, which could contribute to the upgrading of the port and transport sector, still does not exist in Vietnam. The centre will develop a port training programme for the transport chain, local trainers will be trained and the first graduated managers and workers certified. A number of 8 staff will be employed and trained. For this purpose a Joint Stock Company (JSC), registered with the Ministry of Planning and Investment, will be set up between Dutch Applicant STC and the local Vietnamese container terminal partner, Saigon New Port Company. This JSC will closely collaborate with the Vietnamese University of Transport HCMCity (UT-HCMC). Results

• Result 1 : Inception. • Result 2 : Procurement of building and equipment. • Result 3 : Implementation. • Result 4 : Execution. CSR aspects

Dutch and local standards concerning CSR will be implemented, amongst others combating corruption, wage dumping and excluding child labour. Also, STC is an IIP (Investor in People) certified company since 2003. This standard is a business improvement tool designed to advance an organization's performance through its people and this is what the project partners also envisage for the training centre.

Page 200 of 244

Impact


Within two years after completion of the project, follow-up investments will be made consisting of a crane simulator, computer-based training programmes, the set-up of a dangerous-goods laboratory and a safety training centre. The follow-up investments will result in 17 jobs.


At the end of the project, Saigon Port Training Centre will full-time employ 8 employees of which 4 at medium-/high-level. Income levels of the planned Saigon Port Training Centre staff will at least be in accordance with regular Vietnamese compenzation levels for staff and instructors of training centres.

Transfer of knowledge The knowledge transfer of the port and transport chain and the operational skills training is new to Vietnam. Vietnamese instructors will for the first time be exposed to didactic approaches and tools in competency based education, in the use of simulators, in the process definition of logistic problems, in the development and design of scenario's for the logistic chain. The centre could also claim a position as service centre for vocational training and train-the-trainer programmes.

Chain effects In the medium and long term, the national port, transport and logistics companies (state owned and private) will directly benefit from the project. Secondly, foreign investors will be supported through the availability of well-trained staff. By upgrading people's knowledge and skills at managerial, supervisory and operational level, the efficiency of the transport chain will increase. At the same time this shall positively affect the environmental, personal and financial risks. There will be better chances for a career and employment in the ports / on terminals and / or the Vietnamese transport industry.

Environment The increase in expertise and knowledge on operations and terminals, and specific training activities aimed at the increase of safe and secure operations, will, but in the long term, have a positive effect on the local awareness and handling of the environment.

Position of women For this project, the project partners are convinced that the participation of women at operational and managerial level in the transport and logistics industry can be increased. This conviction motivated the STC-Group to start the first 100% women groups for the maritime sector next academic year.

Other impact The availability of international expertise and experience through the support of the STC will act as a "show-case" for transport and logistics education and training, and will increase general education and knowledge levels of local people.

Page 201 of 244

Yemen

PSI09/YE/01 Ancient traditions with a new technology

Location Jazair street, Sana'a

Sector Food processing

Applicant Machinehandel Lekkerkerker B.V., Lopik, The Netherlands

Local partner Imdad Trading Ltd, Sana'a, Yemen




Goal of the project

Commercial production of traditional Yemeni sauces (Yemeni chilly sauce and Shafout) in pasteurised consumer packages for the local market with a total capacity of 20,000 kg per day. Summary

The project partners want to establish a joint venture for food processing in Sana'a for the production of 2 traditional Yemeni sauces: Yemeni chilli sauce and Shafout premix. Shafout is a yoghurt based sauce, with a variety of green herbs. The premix has to be mixed with yoghurt to yield Shafout. The chilli sauce is ready made. The applicant, Machinehandel Lekkerkerker B.V., specializes in the marketing and sales of food processing machines. The local partner Imdad Trading is part of a group that owns several restaurants and is active in marketing and advertising. Results

• Result 1 : Establishment of joint venture and factory design and engineering. • Result 2 : Factory competed and employees trained. • Result 3 : Contract farmers trained. • Result 4 : Promotion campaign and commercial production. CSR aspects

The factory will have strict regulation against qat consumption (like the other companies of the Imdad group). To enable female employees, the factory layout will comprise separate women quarters. Impact


The follow-up investments of € 2.0 million consist of increasing the production capacity to support the expected growth and diversification into the production of yoghurt to produce ready made Shafout. (Note that Lekkerkerker has expertise in dairy processing too.) This will increase the joint venture's turnover

Page 202 of 244

to € 6.2 million in the second year after the project.


At the end of the project 39 permanent jobs will be created, of which 10 on medium-/high-level. This will increase to 70 (25 medium-/high-level) two years later. The joint venture will pay at least twice the local minimum wage (2 x USD 100 per month), additional to transportation costs, health insurance and duty meals.

Transfer of knowledge The project will introduce food processing techniques and general manufacturing practices on food safety and hygiene. For the contract farmers new seeds and farming techniques will be introduced.

Chain effects The project will have a positive impact on 100 contractors in the value chain. Mainly suppliers (e.g. packaging material, ingredients), transporters and distributors (wholesalers, retailers).

Environment As water is a scarce resource in Yemen, the joint venture is not allowed to drill for water on the site. Therefore, it has to rely on the supply of water by trucks. To minimise the water usage (for washing) the process will filter the water and recycle it during the day. As part of the registration procedure, all new companies have to carry out an environmental impact assessment.

Position of women Although it is gradually changing, it is still not common for Yemeni women to work outside the house. Hence, the project will have a positive effect on the position of women, as it will employ 50% women, also in the medium-/high-level positions of finance, accounting and the lab.

Page 203 of 244

Central and Eastern Europe

Page 204 of 244

Page 205 of 244

Bosnia and Herzegovina

PSI09/BA/01 Innovative repair / assembly centre for return and

overstock (consumer-household) goods

Location Orasje, District Brcko

Sector Services

Applicant Tronex B.V., Oldenzaal, The Netherlands

Local partner Tehno Mag d.o.o., Orasje, Bosnia and Herzegovina




Goal of the project

To establish a repair centre for return and overstock goods in Orasje, Bosnia and Herzegovina. Summary

Applicant is Tronex B.V., established in Oldenzaal, the Netherlands and in Bad Bentheim, Germany. Tronex is a trading company in return and overstock electronic consumer goods. In addition, it repairs (refurbishes) electronic goods that have either been damaged in transport (also if only the packaging has been damaged) or have defaults by fabrication or operation. The goods are not second hand. Partner is Tehno Mag d.o.o, established in Orasje, Bosnia and Herzegovina. Tehno Mag imports and sells electronic goods (white and brown goods) to retailers in Bosnia and Herzegovina. Over a year ago, the idea emerged to start a repair centre for return and overstock goods in Bosnia and Herzegovina. End products are to be sold in Bosnia and Herzegovina, Croatia and Serbia, as partners perceive local market potential. This potential is to be realized within the framework of a new joint venture which will be localized in Orasje, Bosnia and Herzegovina, close to the boarders with Croatia and Serbia. Goods will be supplied through Tronex in the Netherlands, and repaired in Bosnia and Herzegovina. The new joint venture will make use of existing sales channels of the partners in the Balkans and is also looking to expand this customer base. Offices, reparation facility and distribution centre for the new activity are expected to take up about 1,300 m2. This space is already owned by the local partner. Results

• Result 1 : Establishment of the joint venture, signing of contracts, finalized factory design and training programme.

• Result 2 : Construction / renovation of the building, installation of the equipment and start of training in the Netherlands.

• Result 3 : Recruitment and training of new personnel, development of CSR, marketing and bankable business plan.

• Result 4 : Joint venture fully operational and turnover in 2011.

Page 206 of 244

CSR aspects

Of goods that cannot be repaired, all potentially useful spare parts will be stripped and stored. About 5 to 10% of all inputs is estimated to be irreparable. Irreparable parts are to be collected by certified companies with which the new joint venture wants to enter into a contract. The new joint venture will adhere to ROHS standards (Restriction of Hazardous Materials), as all products sold to the joint venture originate through Tronex which is ROHS certified. Impact


Two years after the pilot is finalized, a follow-up investment is foreseen, almost doubling turnover achieved by then,. Partners will continue to do business with each other after the completion of the project as Tronex will remain the new joint venture's principal supplier.


The number of jobs created when the project is completed is 22, of which 6 basic- and 16 medium-/high-level employees. Two years after completion of the project, the total number amounts to 29, of which 9 basic- and 20 medium-/high-level employees. Salaries paid will at least be a substantial percentage above minimum wages in Bosnia and Herzegovina. Pensions and medical insurance will be provided for all staff. Employees will be provided with company clothing and receive a company meal per day.

Transfer of knowledge The knowledge transfer that focuses on repair is not entirely new to Bosnia and Herzegovina, as repair centres do already exist. However, the knowledge transfer will be of a sophisticated kind, and requires a higher level of analysis. Repair staff will be highly skilled. The transfer of knowledge on this level is likely to be unique in Bosnia and Herzegovina.

Chain effects Principal suppliers of inputs will be Tronex as well as another business partner in the Netherlands. The number of structural suppliers in Bosnia and Herzegovina or in the neighbouring countries will most likely consist of 4 companies, representing a transport company, a producer of boxes, a recycling company and a cleaning company.

Position of women The manager of the new joint venture will be a 29 years old female who was a past intern at Tronex. Since then, she has been working for Tronex on a freelance basis as a sales agent in the Balkans. In addition, the workforce is to exist of 3 women that are all medium-level employees.

Other impact Business relations will be increased and formed across the boarders of a region formerly struck by war among ethnicities.

Page 207 of 244


PSI09/BA/03 Plastic overmoulding technology

Location Gracanica

Sector Chemical industry / Plastics

Applicant Bema Beheer B.V., Zierikzee, The Netherlands

Local partner Bema BA d.o.o., Gracanica, Bosnia and Herzegovina




Goal of the project

The production and export of newly developed spacers for sales to the European construction sector. Summary

In 2003, Bema Beheer B.V. and local partner Ambra d.o.o. founded Bema BA in Gracanica, Bosnia and Herzegovina with support of the former PSO-programme. Bema BA produces injection moulded plastics. Currently Bema Beheer wants to team up with the local company Bema BA to produce spacers for the building sector. Spacers are devices that connect prefabricated concrete walls. The spacers that are to be produced would consist of a new combination of materials. The resulting product will be more sophisticated in shape, material usage and measurements than existing spacers. In addition, the mould for making this spacer will be constructed by Bema BA itself, too. These efforts will require the transfer of knowledge to Bosnia and Herzegovina. This knowledge will largely be transferred onto women as unemployment among women is particularly high in Bosnia and Herzegovina. Results

• Result 1 : Technology transfer on mould making to produce the mould and further elaboration of the project plan.

• Result 2 : Training of management, hardware installation, hiring and training new employees and drawing up the production plan.

• Result 3 : Technology transfer on plastic injection overmoulding to produce the spacer, further hardware installation and start of production.

• Result 4 : Technology transfer on plastic injection overmoulding to produce the spacer, last hardware installation and further increase of production.

CSR aspects

The applicant and local partner will impose regulations for employee safety and provide for company clothing. Water which is used to cool machines will be reused by running it through the heating system of the production facility and offices attached. Working conditions similar to those that are valid in the Netherlands (ARBO a.o.) will be implemented. The partners commit to strictly apply a non-discrimination policy (gender, race, ethnic background etc),

Page 208 of 244

and have declared to strongly reject corruption. Partners will apply a separate waste collection policy. Plastics however can be recycled and reused in the own factory and the steel tubes will be supplied ready for use. Bema BA will obtain the ISO 9001 certificate for this new production facility. Impact


Two years after the end of the project, a follow-up investment will be made. This investment will be used to finance the expansion of the existing spacer line.


The number of new personnel hired at project completion is 11, of whom 9 basic-and 2 medium-high jobs. Two years after the completion of the project, this number is expected to rise to 22, consisting of 18 basic-and 4 medium / high jobs. Salaries will be paid substantially above the local minimum. Bema BA will cover a meal per shift per employee. All employees will receive health insurance.

Transfer of knowledge The technology transfer on sophisticated mould making and more complex injection overmoulding for the purpose of producing spacers is new to Bosnia and Herzegovina. The technology upgrade will generate knowledge and skills that can be employed to produce other sophisticated injection moulded products in the future in Bosnia and Herzegovina.

Chain effects Expectedly, there will be 6 suppliers in Bosnia and Herzegovina that will structurally benefit from the additional activity in Bema BA which would be generated by this project. These include suppliers of polypropylene granulate, steel, steel calibration, pallets, cardboard boxes and a transporter.

Environment The new production facility will make reuse of cooling water, using it to provide central heating. All plastics are recycled, so there will not be any polypropylene waste. Apart from this, the impact on the environment is neutral.

Position of women The partners want to make sure that women have equal opportunities as men within their company. Because of relatively higher unemployment among women in the region, they would like to hire at least 6 women and to train these as operators, with women at least making up for 55% of new staff hired for the project.

Other impact Business relations will be increased and formed across the boarders of a region formerly struck by war among ethnicities. Bema BA would like to hire employees that originate from other ethnic groups in Bosnia and Herzegovina.

Page 209 of 244


PSI09/BA/21 Establishment of a high tech CNC machines centre

in Bosnia and Herzegovina to serve the South-East

European metalworking market

Location Bosanska Krupa

Sector Machine industry

Applicant Style High Tech B.V., Bunschoten-Spakenburg, The Netherlands

Local partner ZAH D.O.O., Bosanska Krupa, Bosnia and Herzegovina




Goal of the project

The establishment of a sales, service and repair centre for CNC machines in Bosnia and Herzegovina. Summary

This project entails the establishment of a joint venture in Bosanska Krupa between Style High Tech B.V. from Bunschoten and ZAH d.o.o. from Bosanksa Krupa in Bosnia and Herzegovina. Style High Tech develops CNC machines for metal processing and ZAH is a metal processor itself. Together, these 2 companies would like to establish a distribution, service and refurbishment centre for CNC machines in Bosanksa Krupa. Through the establishment of such a joint venture, the partners foresee new market potential to be tapped. This new market consists in the fact that all of the current CNC machines are still imported from abroad and are not appropriate for the production of small series of products. However, a lot of companies are unable to afford such machines, as any training and maintenance would have to be performed abroad. These companies in Bosnia and Herzegovina still use conventional metal processing machines, which are operated by hand. PSI would allow this untapped market potential to become tapped. Results

• Result 1 : Establishment of the joint venture. • Result 2 : The building is finished and equipped, and employees have been trained. • Result 3 : The joint venture is completely operational. CSR aspects

On CSR, partners pledge the following: • ISO 9001 will be implemented for this project. As the business model of Style will largely

be copied, the same ISO rules will be followed and so ISO will be expectedly be implemented in the joint venture without mayor difficulties.

Page 210 of 244

• Waste will be collected by certified companies. The metal waste that results from the training, on the CNC machines, is collected, melted again and resold to metal processing companies.

• Galvanization will not take place within the new joint venture. • Partners commit to providing a safe workplace and will provide protective clothing where

necessary. Impact


The follow-up investment which is foreseen within two years after this project is to be concluded will be spent on business expansion. Elements are additional staff to be trained, marketing for entering additional markets in South East Europe, and the extension of the building and hardware.


Within the new joint venture, 7 medium- to high-level full-time jobs will be created during the project. Two years after the end of this project, an additional 3 full-time medium- to high-level jobs will have been created. The following conditions apply: • Workers will receive normal health insurance and pensions. • Workers will receive protective clothing where needed. The

machines are not dangerous in operation because they are not operated by hand but by software once they are closed and ready for production.

• Workers will receive allowance for food, money for holidays, religious holidays free from work, social / health insurance, pensions.

Transfer of knowledge This project will transfer new knowledge to Bosnia and Herzegovina in working with and adapting modern CNC software and machines. This is expected to enable metal working companies to become acquainted with CNC for the first time. These companies will therefore become able to produce small series of products much more efficiently. This knowledge will also be transferred to the educational system, via the University of Bihac.

Chain effects Indirectly, it is foreseen that this project will have a positive spin-off effect as it will induce the development of a new market. CNC machines will become a possibility for part of the metal processors that currently still work with conventional machines.

Other impact The training to be provided to the students of the University of Bihac.

Page 211 of 244

Georgia

PSI09/GE/01 Establishment of a decorative plant nursery

Location Tbilisi

Sector Horticulture: ornamental plant cultivation

Applicant Fachjan B.V., Honselersdijk, The Netherlands

Local partner ABG & Profservice Group Ltd, Tbilisi, Georgia




Goal of the project

To establish a joint venture which will grow and supply the local market of decorative plants, intended for consumer retail and project planting. At least 115,000 stems of pot plants and 200,000 bedding plants will be produced and sold. Summary

Within this project a modern greenhouse will be established to grow decorative pot plants. The partners Fachjan B.V. and ABG & Profservice Group Ltd wish to sell these plants on the institutional market and on the consumer market. Fachjan B.V. was established in 1989 and has experience in growing of young pot plants and the trade in plants and planting materials for project planting. They specialize in indoor landscaping. ABG & Profservice Group Ltd was established in 2007. They design lighting and electrical installations. They offer innovative complete solutions on a project bases. In this framework they also supply services in the field of interior design. As the project partners offer compatible services they intend to cooperate in order to develop the market in Georgia together. The applicant will supply knowledge and planting materials. The local partner will bring in the sales channels and the local operating knowledge. Results

• Result 1 : Establishment of company and enabling environment. • Result 2 : Construction and putting into operation of greenhouse. • Result 3 : Operation, production and sales. CSR aspects

The partners will carry out environmental impact assessment. Furthermore they will develop a CSR policy. This will be based on the rules in the EU and Georgia. Partners wish to introduce MPS certification for the greenhouse.

Page 212 of 244

Impact


A follow-up investment of € 154,000 is expected in extension of their production unit. The additional turnover will be € 2.3 million.


5 medium-/high-level workers, 10 basic-level workers, as well as 8 part-time workers will be hired by the joint venture during the project. Two years after the project 7 medium-/high-level workers and 20 basic-level workers will be hired. The joint venture will cover Health Insurance for all employees, pension and if necessary transport services (depending on location). They will pay a salary of € 375 per month.

Transfer of knowledge Modern and up-to-date knowledge about plant growing is currently not present in Georgia. Further ideas on environmentally safe production will be transferred. Under modern management, the employees will learn about marketing and the use of new products.

Environment The partners do not expect to impose any risks on the environment. Water and energy will be used in limited quantities due to saving measures that are incorporated in the computer software. CO2 produced by burning natural gas is guided back into the greenhouse and used as a fertilizer for the plants. The project will adjust their production process in line with MPS certification.

Position of women The project partners estimate that 80% of the workforce will be women. 50% of the management team will consist of women. Female workers will receive the same wages as male workers.

Page 213 of 244

Kosovo

PSI09/K3/01 Galvanization in Kosovo: Establishment of a hot-dip

galvanization facility in Kosovo for the production

of high quality durable metal products

Location Prizren

Sector Industry: metal

Applicant Zinkunie B.V., Boxtel, The Netherlands

Local partner Zinkunie Kosovo Sh.p.k., Prizren, Kosovo




Goal of the project

To set up and run a galvanization plant, with a production of 5,250 tons according to the desired quality level, for the production of durable metal products. Summary

Zinkunie B.V. and Zinkunie Kosovo Sh.p.k. will establish a joint venture called Zinkunie Galva Sh.p.k. This new venture will specialize in galvanization, packaging and shipment of various durable metal products according to the required quality standards. Currently there are no companies in Kosovo that are able to galvanize metal products. Therefore local metal producing companies are not able to produce durable products on the quality level that is internationally required. Galvanization increases the lifespan of metal products and prevents corrosion. Modern hardware in the field of hot-dip galvanizing will be introduced and technical assistance will be provided. Galvanizing will take place according to EN-ISO 1461 and EN 1179 norms. This project will be executed in Prizren. An area next to the local company of more than 100 m2 is available. Results

• Result 1 : Setting up a joint venture. • Result 2 : Operational production facility. • Result 3 : Recruitment and training. • Result 4 : Pilot production. CSR aspects

The partners attach importance to CSR. The joint venture will work according to the EN-ISO 1461 / EN 1179 norms, invest in a filter installation to filter all emissions and invest in a heath transfer system.

Page 214 of 244

Impact


An additional investment will be done in new galvanization equipment. This additional investment amounts to € 1.5 million. The turnover will be € 11,680,000. The partners will continue their sustainable cooperation which is guaranteed because they are both members of the Zinkunie group of companies.


At the end of the project period 60 staff members will be working for the joint venture. 54 are basic-level employees and 6 are medium-/high-level employees. Two years after the project period 116 staff members will be working for the joint venture, among whom 110 basic-level employees and 6 high-level employees. The staff members will receive at least a wage of 60% above minimum wage. They will be offered transportation from work every day, health insurance, a safe working environment and education and training will be provided. All working conditions will be according to Dutch standards.

Transfer of knowledge In Kosovo there is no up-to-date knowledge about the galvanization process. The technical knowledge is completely new for Kosovo. The way of working is new; working efficiently to achieve a high output and working with high accuracy to obtain optimal production quality.

Chain effects This project will have a positive effect on the manufacturers of steel products in Kosovo and the Balkan region. The project expects to have 10 subcontractors among others zinc suppliers and maintenance companies.

Environment Zinkunie Galva will work according to the following norms: EN-ISO 1461 and EN 1179. Furthermore, an EIA will be executed. And additional investments will be made in: a fume hood, a filter installation and a heat transfer system. Chemical collection and recycling will take place. Zinc can be recycled indefinitely without loss of its physical or chemical properties. Thus the environmental risks have been mitigated to the maximum.

Position of women The project will hire 3 women. The positions in production will most likely be filled by men.

Page 215 of 244

Latin America

Page 216 of 244

Page 217 of 244

Bolivia

PSI09/BO/21 Developing a reliable supply chain of quality wild

cocoa

Location Chapare, Cochabamba & Itenéz, Beni

Sector Agriculture

Applicant Pronatec AG, Winterthur, Switzerland

Local partner Rainforest Exquisite Products S.A., La Paz, Bolivia




Goal of the project

To develop a reliable and sustainable supply chain for wild cocoa beans, generating 350 tons per year, of which at least 175 tons per year are export grade. Summary

Applicant, Pronatec AG, is a Swiss trader of mainly organic products, who supplies wild cocoa beans to the chocolate industry. Local Partner, Rainforest Exquisite Products S.A. (REPSA), is the only major exporter of Bolivian wild cocoa beans, which it sells to Pronatec AG. The commercial trade of wild cocoa is extremely rare and mostly sourced from Beni and Cochabamba departments, in Bolivia. The wild cocoa beans from Bolivia are recognised by the high end of the chocolate market, as an exclusive product for which top chocolate makers are willing to pay an exceptional price. On average some 200 to 250 tons are collected annually, of which only 20% can be exported due to quality problems This situation is unsatisfactory for all parties in the supply chain; the high ratio of non-exportable beans translates in lower average returns for the collectors; the volume of only 40 to 50 tons per year is too small for traders to be profitable; and the European market has a higher demand that can not be met from the current supply. Thus with the aim of substantially increasing the volume of exportable wild cocoa beans, a project is proposed comprising several interventions to improve quality and reliability throughout the supply chain: • Organization of 800 cocoa collectors into groups resorting under 6 buying stations. • Provision of fermentation-drying units and camp sets to collector groups. • Training of collectors in quality-oriented harvesting, fermentation, drying and transport. • Establishment of 3 new and upgrading of 3 existing buying stations. • Training of buying station staff and quality control staff. • Improved transport to La Paz by investing in cargo tracking and better shipping. • Organic / FairWild certification. As a result of these interventions, the total volume collected is projected to increase to 350 tons with the exportable share eventually doubling to 50%, or some 175 tons exported per year. This will provide a profitable and sustainable basis for the wild cocoa business whereas Pronatec will benefit from a reliable and substantial volume of quality wild cocoa beans.

Page 218 of 244

The collectors will see their income improved, their number will double to 800 and new employment is created at the buying stations. Partners will establish a joint venture, who will enter into a long-term sales contract with Pronatec with regard to the export and sales of wild cocoa beans. Results

• Result 1 : Business foundation, joint venture establishment. • Result 2 : Building or renovation of buying stations, equipment purchased and

operational. • Result 3 : Training of joint venture staff and external collectors. • Result 4 : Business development and certification. CSR aspects

Both Pronatec and REPSA are companies with strong Corporate Social Responsibility (CSR) profiles as reflected in the mission statement of the 2 companies and put into practice in their contracts with their suppliers (organic premiums, technical assistance, guaranteeing market, health insurance, etc). The joint venture's CSR policy with regard to social standards will be made explicit in a document to be produced as part of Result 3. All members of staff as well as the collectors will receive training and coaching in their respective fields and secondary benefits, like health and first aid training, supplemental health insurance and 13 months payment for all permanent staff. The salaries are at least 25% above minimum wages in Bolivia. The joint venture partners have continuous contact with the collectors groups to tackle gender and child labour issues. Safeguarding the environment lies at the basis of every activity REPSA undertakes in the highly diversified 'hotspot' eco region of Iténez and Chapare. As such, the joint venture has a strong environmental policy and the joint venture partners will maximize their efforts in raising environmental awareness amongst their staff and collectors to ensure environmental friendly business practices. Staff will be trained in forest ecology, implementing an internal control system for organic / wild harvest certification and complying with organic harvest standards, whereas a complete training module is dedicated to sustainable harvesting, to educate the collectors in avoiding fire and combat small fire outbreaks, manage the wild cocoa stands in the forests, hunting rules and camp and waste management. The joint venture's production will be Organic / FairWild certified. Impact


Forests with sufficient density of wild cocoa trees, to be suitable for commercial harvest, are extremely rare and basically only encountered in the Chapare and Iténez Province. It is therefore not expected that the supply of wild cocoa will increase significantly after the pilot. At the most, the joint venture will invest in 2 additional buying stations during the spin-off phase and appoint 2 more station managers and staff. The main follow-up investments will be made in organic cocoa plantations in Alto Beni and Chapare. Since 2007, REPSA started exporting organic cocoa to Pronatec with an agreement to increase production up to 200 tons yearly from 2011 onwards. To achieve this 1,200 smallholders, who are currently not linked to the international market, will be involved. REPSA, in partnership with Pronatec and other interested companies,

Page 219 of 244

has undertaken another project, aimed at improving the quality of the Bolivian organic cocoa. REPSA and its partners will focus on extending and rolling out the successful activities that have been undertaken with regard to the cultivated organic cocoa. Estimate follow-up investment will be about USD 750,000, and the project is complementary to the wild cocoa project as harvest and processing of cultivated cocoa run from May to October and do not overlap with the wild cocoa harvest from December to March. This will also allow the use of the hardware purchased for the pilot, during 8 instead of 4 months per year. REPSA will be working in both projects and, as such, will further diversify its business and reach full financial sustainability by 2012. In addition, Pronatec and Mr Lehmann are considering to develop ecotourism trips to the 'chocolatales' (wild cocoa growing areas) in the Beni region as this will positively contribute to the wild cocoa story and will increase awareness and interest among consumers and importers.


At the end of the project, the joint venture will employ 28 staff (18.5 fte). This will increase to 37 (25 fte) two years after the pilot. As the activities only take place during part of the year, the employment figures must be detailed: • The complete staff from REPSA (5), will be managing the

joint venture during the harvest period, and is included in the 28;

• 12 persons (for each buying station: 1manager + 1assistant) will be permanently employed by the joint venture throughout the year;

• 13 persons will be hired by the joint venture for 4 months per year, during harvest, and will work in REPSA's organic cocoa activities, during the remaining part of the year.

The joint venture's unskilled labour will be paid a minimum of 20% above the legal minimum wage, and they will enjoy the following fringe benefits: • 13 months payment per year; • A bonus received for every year they complete working with

the company; • Contribution to employee's health insurance and state

pension fund.

Transfer of knowledge Although the collectors in Iténez are already receiving technical assistance on some topics by REPSA personnel, the scope, intensity and professionalism of the training modules being implemented in this proposed project is new to Bolivia, and will serve as an example for other fair and sustainable collected ingredients throughout the region. New knowledge will be transferred in the practices of sustainable wild cocoa collection according to the FairWild standard which is novel to Bolivia.

Chain effects The number of collectors involved will increase from 400 to 800, and their income will increase by 10%, due to the fact

Page 220 of 244

that a larger share of the collected beans will meet export quality, for which better prices are paid. As the total export volume is projected to triple, the project will generate additional economic activities for transportation companies (by river and by road) and for REPSA (in quality inspection and storage and forwarding).

Environment The effect of the project on the environment is neutral. Most of the beans fall from the trees naturally or, when harvested, it will take place in a careful and traditional way not harming the trees. No chemicals whatsoever are applied; certified wild cocoa is a completely natural product. Indeed, this project will be beneficial to the environment if it succeeds in raising environmental awareness among the collectors through education and knowledge transfer on various aspects of forest ecology and sustainable harvest practices; in addition, the promotion campaign will create ecological awareness with a wider public by making use of various local media.

Position of women About 20% of the total workforce will be women, mainly in management and quality control, as the field operations are remote and involve physical work such as lifting heavy bags.

Page 221 of 244

Bolivia

PSI09/BO/22 Piloting the generation of electricity and carbon

credits through gasification of Brazil nut shells and

Pods at Cobija

Location Cobija

Sector Energy

Applicant Ankur Scientific Energy Technologies Pvt. Ltd, Gujarat, India

Local partner Tahuamanu S.A., La Paz Murillo, Bolivia




Goal of the project

To implement a 700 kW power generation plant, fuelled with biogas generated by the gasification of nutshells, that result from the Brazil nut processing plant. Summary

Tahuamanu from Bolivia is the world's largest processor and exporter of Brazil nut. Thousands of collectors gather the nuts in the Amazon forest in the north of Bolivia for processing at the company's plant in Cobija. For years the empty shells have been stockpiled for lack of economic use. Tahuamanu has long searched for an affordable and reliable technological solution to generate electricity out of the biomass, which has a very high caloric value, to alleviate Cobija's increasing power shortage. It has identified Ankur Scientific Energy Technologies from India as its long-term partner to implement a biomass gasification system – unique to Bolivia – as a basis for power generation for delivery to ENDE, the public utility in charge of electricity transmission and distribution in Cobija. The pilot plant will generate 4,500 MWh per year, some 15% of Cobija's current electricity demand. Moreover, owing to replacement of fossil fuel to produce electricity, the project's emission reductions should qualify under the Gold Standard of the Clean Development Mechanism (CDM). The project thus will lead to substantial fossil fuel savings. Fuel which is now transported for over 1,100 km and subsidized heavily. Also the project will generate income for biomass collectors, who will be paid for gathering biomass. The increased power supply to Cobija will benefit the private and the public sector alike, thus contributing significantly to local development. Shortage of energy is seen as main impediment to economic development in many remote areas. The pilot is relevant to many areas in the Amazon region of Bolivia that is rich in biomass but too remote to be supplied through the main energy distribution network. It is anticipated that the pilot project will contribute to revision of national energy policies in favour of such projects, which the partners are planning to develop through follow-up investment. Results

• Result 1 : Business foundation, joint venture establishment.

Page 222 of 244

• Result 2 : Building / installation of the gasification equipment and power generation plant. Training of the operating staff.

• Result 3 : CDM project registration. • Result 4 : Business development and issuance of Emission Rights. CSR aspects

The joint venture will apply Tahuamanu's CSR standards. Tahuamanu is part of the Global Compact of USAID and United Nations which is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. Impact


Ankur and Tahuamanu will continue their cooperation through their joint venture to develop more biomass gasification plants in the region. Following the successful implementation of this pilot project, the partnership is planning to double the capacity of the plant to 1.6 MW (gross) requiring a considerable follow-up investment. Apart from this, the partners have already identified 3 other projects which they intend to develop in the Pando and Bendi departments, adding up to a total installed capacity of 4.7 MW: Cobija 2nd phase(Pando) 0.8 MW Riberalta (Beni) 2.2 MW Puerto Rico (Pando) 0.5 MW Sena (Pando) 0.4 MW Total 3.9 MW Of these projects, 50% could realistically be built within two years after the pilot, if pricing issues are resolved, resulting in follow-up investments of € 3.5 million.


The project will create 12 direct jobs (including 2 high-level and 5 medium-level) to operate and maintain the plant. This should increase to 28 within two years after the pilot, when 2 to 3 new power plants are implemented. The joint venture will pay a monthly wage to its lowest level employee (Cleaner) which is 35% over the legal minimum wage. It will also pay additionally for overtime, vacations, years of employment and end-of-year bonuses, according to what is stated by the General Labour Law. The joint venture will pay a 'productivity bonus' twice a year to the employees according to a ranking scale. The fringe benefits provided by the joint venture to its personnel, will include: • Two daily meals at 50% of cost price; • Free breakfast for workers at duty at 6 a.m.; • Free use of nursery school for children of staff under 5 years

old; • Health insurance and life insurance; • Access to Tahuamanu's housing plan (easy finance coupled

to direct payment deduction from salary).

Page 223 of 244

Transfer of knowledge The gasification of biomass is complete new technology for Bolivia, and is not limited to nut shells and pods, but is also applicable to a large number of other available waste products from the wood industry (sawdust), agriculture (rice husks, corn cobs, sugar cane waste, etc). The technology allows a much more efficient use of the energy contained in this biomass.

Chain effects Moderate chain effects on the income of the nut collectors are expected, as the joint venture will pay € 40,000 per year for collected pods. This will not represent a high income, considering there are 500 collectors, but not all of them will engage in the pod collecting and it is additional income that can be realized outside the nut harvest season. If, for instance, only 100 collectors participate, they will earn an additional € 400 per year, which is substantial in Bolivia.

Environment The environmental impact of the project is significant by virtue of the replacement of fossil fuel (1350 tons of diesel annually), and thus the avoidance of GHG emissions equivalent to 4,235 tons CO2. The project will be certified according to the Gold Standard for Certified Emission Rights. Gold Standard carbon credits are the highest grade currently available and require that renewable energy and energy efficiency technologies also lead to sustainable development for the local community (such as increased standards of living, knowledge transfer, job creation or pollution reduction). All Gold Standard projects are rigorously tested for environmental quality by registered third parties. The Gold Standard Foundation only awards its label after third-party validation and verification of the project. Ash and tar produced during the gasification process are possibly harmful to the environment. Ankur's gasifiers have been specially designed with proper throat size and nozzle geometry to ensure almost complete tar cracking in the gasifier itself. Thus, the hot gas leaving the gasifier is generally tar-free over the operating range of the gasifier. A system of gas scrubbers and filters remove tar (if any) and remaining particles from the gas before combustion.

Page 224 of 244

Brazil

PSI09/BR/02 "Cerrado" Frozen Fruits Ltd: Modernization of

Procurement and Processing Facilities for exotic

frozen fruit pulps in Carolina, Brazil

Location Carolina, Maranhão


Applicant QuaTerNes B.V., Almkerk, The Netherlands

Local partner FrutaSã Industria Comércio e Exportadora Ltda, Carolina, Brazil

Third partner Stichting ICCO, Utrecht, The Netherlands




Goal of the project

To implement a modern fruit processing plant, with a capacity of 350 tons per year, while stimulating sustainable procurement from indigenous communities and small local farmers. Summary

In northern Brazil, between the dry savannah-like regions in the east, and the dense Amazon jungle in the west, lies the "Cerrado", an area with intermediate vegetation, a large biodiversity and inhabited by several indigenous communities. The Cerrado produces a great variety of exotic fruits, that are traditionally collected by the indigenous populations (no cultivation). To support these indigenous communities the NGO Centro de Trabalho Indigenista (CTI) was created. Among other activities CTI stimulates indigenous people to create economic activities to support themselves financially, but trying not to interfere in their traditional lifestyle. In the past, in cooperation with ICCO, CTI implemented a fruit processing plant FrutaSã (healthy fruit) that has been operating for over 20 years. However, the company has always lacked the technological know how and professional management to make it a commercial success. Furthermore, the indigenous people do not dispose of any knowledge to correctly harvest and handle their produce, resulting in erratic supply, poor quality and substantial losses. Applicant, QuaTerNes, from the Netherlands, and FrutaSã from Carolina, Maranhão, now intend to form a joint venture to set up a modern fruit processing plant, that will meet the most severe food safety and health requirements to be able to even export their products to the EU. Simultaneously they will implement a modern procurement system to ensure optimum freshness and quality of the fruit collected in the indigenous areas. Several collecting stations will be installed within the communities to cool the fruit immediately after harvest, and pre-process on the spot to maintain maximum quality and taste. This is completely new for Brazil, and will have a significant positive impact on the economy of the indigenous communities. Results

Page 225 of 244

• Result 1 : Joint venture established. • Result 2 : Procurement system / facilities operational. • Result 3 : Processing building upgraded, new equipment installed and operational. • Result 4 : Training of the staff, certification & business development. CSR aspects

CSR is practically embedded in the project through the participation of ICCO and FrutaSã. Both organizations have the mission of providing a fair income to the poorest segments of the population, and have been active for years in the support and development of the indigenous communities, without affecting their traditions and way of life. Impact


Partners expect to invest an additional € 280,000 in the two years following the pilot. First additional equipment will increase depulping and (retail) packing capacity. The bottleneck for growth is the procurement, which will have to be continuously developed.


The project will generate 12 new direct jobs, of which 1high-level (manager), 5 medium-level (3 procurement staff and 2 machine technicians) and 6 basic-level (operators for handling and preparation of fruit). For basic-level operators salaries will be 1.5 times the legal minimum, and for medium-level 2.0 times. Two years after the pilot the number of permanent jobs will have increased to 20.

Transfer of knowledge The transfer of knowledge concerning quality and logistics (storage and transport) of the fruits to the local fruit pickers / producers is completely new. Although the used technologies and techniques may be applied in other parts of Brazil, the involvement of indigenous people is unique. To avoid any over-harvesting, the indigenous pickers will be educated on ecosystem interdependence and will be guided by procurement staff. Finally, the project will introduce international quality control systems (including ISO and HACCP certification, tracking and tracing system) for the complete supply chain, including all chain actors. This is new for the region.

Chain effects The project will have impact (and responsibility) on a total of 450 fruit pickers / farmers who will have supply contracts. These contracts will clearly specify the projected production / supply and the training that will be given by the project. The supply contracts will have a long term character and will guarantee a reasonable income to the farmers and, in case they can comply with the international quality standards set by the joint venture, will result in a significant price increase compared to current raw material prices. Further in the chain, the project will create long-term contracts for suppliers of utilities (maintenance), financial and administrative services and packaging materials.

Page 226 of 244

Environment The direct impact of the project on the environment will be neutral. On a long term however the impact is positive, as it will support indigenous communities to sustainably exploit the Cerrado fruit trees, thereby reducing the risk of this ecosystem disappearing over time.

Position of women The joint venture will offer equal opportunities for men and women. Moreover, the impact on the position of the indigenous women who will pick and supply the exotic fruits is positive. Non-timber products such as fruits and nuts are a significant source of livelihood for forest populations, and these activities are traditionally performed by women. Harvesting non-timber products normally involves low technology, but is also a knowledge-intensive activity, particularly suited for women in forest areas. Moreover, it can easily be combined with other household activities.

Page 227 of 244

Brazil

PSI09/BR/03 Project Production Peppers

Location Ceara


Applicant Meurs Groep Holding B.V., Beusichem, The Netherlands

Local partner Fazenda Canafistula, Ocara – Ceará, Brazil

Start project 01 May 2009

End project 01 November 2011


Goal of the project

To implement the production of fresh organic Spanish Peppers in Ceará, to be exported by sea to Europe, with a capacity of 400 tons per year. Summary

Pepper import into the EU originates mainly from Asia (80%). The long distances, require that fresh peppers be transported by air, which substantially increases the cost. Project partners see a business opportunity for the production of Spanish Peppers in the northeast of Brazil, where climate conditions are ideal, and products can be shipped by sea container to Rotterdam in 9 days. The project partners will set up an organic production of Spanish Peppers, in a 15,000 m² greenhouse, in Ocara, state of Ceará. Applicant is Meurs Groep Holding from the Netherlands, and local partner is Fazenda Canafistula in Ocara. The project will be embedded in the company of the local partner, with assistance from the applicant. The production of fresh peppers for export is completely new in Brazil. It is a very labour intensive activity, and will create a substantial number of jobs in a very poor area. In follow-up to the project, it is the intention to further increase production by involving local farmers in the contract growing of peppers too. Results

• Result 1 : Facilities design, training programme and detailed planning. • Result 2 : Greenhouse, building and infrastructure operational. • Result 3 : Handling, packing and transport equipment operational. • Result 4 : Staff recruitment, certification, commercial production started, business plan

updated. • Result 5 : Training of the staff, external support. CSR aspects

In order to be able to export food to the EU market, HACCP and GlobalGAP certification are a basic requirement, and will be implemented.

Page 228 of 244

The project partners consider CSR as a basic motivator for doing business. Therefore they have developed own policies that result in good salaries, additional benefits, high focus on safety for the employees and no use of forbidden pesticides. In addition to trainings focused on the job, employees can (voluntarily) participate in education sessions about not-work-related subjects like hygiene, primary health care, birth control and sexual transmitted diseases. The training will be given by professionals in cooperation with the local authorities and the existing health programme of the government. Impact


Partners expect to invest an additional € 1.5 million after the project, mainly to increase greenhouse capacity. With this investment turnover should jump from € 1.6 million to € 4.5 million.


The project will generate 82 new direct jobs, of which 3 high-level (management positions), 10 medium-level (several technical positions) and 69 basic-level (direct labour). Unskilled labour will be paid at least minimum wage, but all employees will get free company meals, medical assistance, free transport to the farm and free working clothes. Two years after the pilot the number of permanent jobs will have increased to 375.

Transfer of knowledge The technology for organic cultivation of peppers in a controlled environment (greenhouse + substrate) is new for Brazil. This will significantly increase the skills and knowledge of the staff, improving their "employability".

Chain effects Chain effects will largely be limited to the seed suppliers and the company that will grow the seeds to small plantlets. In a later phase, partners intend to involve contract growers to increase the production volume. However this depends on the availability of low cost greenhouse types that are being developed by the local manufacturer, as the small farmers do not have the means to make large investments.

Environment Due to the organic production, the impact on the environment will be neutral.

Position of women Women will get equal treatment regarding salary and career possibilities. Work in the greenhouse is not heavy, and adequate for women. Part time work is also possible. Goal is to get 60% female workers.

Page 229 of 244

Brazil

PSI09/BR/21 Exotic mushrooms from Brazil

Location Vitória da Conquista, Bahia

Sector Agriculture

Applicant P.P. Tropisch Fruit B.V., Kwadendamme, The Netherlands

Local partner Agro Commercial Bella Vista Ltda / Valentim Appolari, Sao Paulo, Brazil

Third partner Shanghai Pan Globe Food Co. Ltd, Shanghai, China




Goal of the project

To set up a − HACCP and GlobalGAP certified − pilot production of exotic mushrooms

(King Oyster, Shimeji, Enoki) in Brazil, with an output capacity of 1,000 kg per day. Summary

P.P. Tropisch Fruit B.V. (applicant), is a wholesaler of tropical fruits and exotic mushrooms in the Netherlands; Agro Comercial Bella Vista Ltda (local partner) is a wholesaler of fruit and vegetables in Brazil; and Shanghai Pan Globle Food Co. Ltd (third partner) is a grower and exporter of mushrooms, vegetables and fruits in China. Based on recent market surveys, these companies see an opportunity to develop the production of exotic mushrooms in Brazil. There is a growing domestic demand for healthy products in a more balanced economic society and, due to its large immigrant population, Brazil also has an increasingly diversified restaurant and catering industry, always looking for new products and ingredients. The project partners, therefore decided to set up a joint venture to start the cultivation of exotic mushrooms in Vitória da Conquista, southern Bahia. Currently, commercial (certified) cultivation of exotic mushrooms does not exist in Brazil. The mushrooms that are available on the domestic market, are cultivated on a small scale according to traditional (empirical) methods. Due to uncontrolled processing the quality is poor and the prices are too high. The project is new for Brazil, will introduce new production technology and create 60 medium-/high-level jobs, in one of the poorest regions of Bahia state. Furthermore, market prospects are positive and a solid return on investment can be expected. Results

• Result 1 : Joint venture established. • Result 2 : Factory building completed and equipment operational. • Result 3 : Employees hired and trained. • Result 4 : Commercial production and promotional campaign implemented. CSR aspects

Page 230 of 244

The project will introduce food safety, hygiene and manufacturing criteria (GlobalGAP and HACCP) to the production and processing of mushrooms. The plant will be equipped with fire-extinguishers, fire-fighting equipment, emergency exits and a safe electrical system. Emergency drills will be held regularly. Some of the staff members will receive First Aid training and medical assistance is regularly available for all employees and their families. A crèche will be available for employees' children. Employees and their families will all have medical insurance. Impact


If the market develops as expected, partners will double the production capacity within two years after the pilot (€ 1.5 million), resulting in an annual turnover of € 829,000. Furthermore, an extensive production of Shitake mushrooms is planned, which must be cultivated outdoors, and for which a system of contract growers (200 to 400) will be put in place. The investment in production facilities will have to be done by the individual outgrowers (the Brazilian development bank Banco do Nordeste already informed that it will finance these outgrowers, if the joint venture guarantees the purchase of the Shitake mushrooms), but the joint venture will have to increase quality control / packaging / storage / distribution facilities.


The project will generate 60 direct jobs, of which 20 of a high- and 40 of a medium-level. For production operators salaries will be 30% above minimum wages. Two years after the pilot the number of permanent jobs will have increased to 120 (basically a doubling of the capacity). Besides good primary working conditions, employees will have benefits such as: • 13 months salary per year; • Health insurance; • Child care facilities; • A basic "food basket" for employees with children under 16.

Chain effects Between 10 and 15 fte's will be involved in the supply of substrate materials. They will be paid a price per kilogram delivered, and will receive back the used substrate, that can be sold as fertilizer. An estimated 10 to 20 persons will be involved with the distribution of the mushrooms in the retail activities.

Environment The production process is completely "clean" and can be seen as a demonstration facility in that respect. Basic ingredients used are waste from other processes and a healthy (high protein) food product is the result. Sub products of the process (used substrate) will be recycled as fertilizer for other agricultural activities. The water used will be filtered and reused.

Page 231 of 244

Position of women About 60% of the workforce is expected to be women. The most likely positions will be in laboratory handling, but also in harvest and packaging of the mushrooms. This high percentage is only possible by having a child care centre near the factory.

Page 232 of 244

Honduras

PSI09/HN/21 Establishing the production and export of small

indoor plants

Location Santa Barbara


Applicant Bunnik Plants Beheer B.V., Bleiswijk, The Netherlands

Local partner Matas de Sula SA de CV, Valle de Naco, Santa Barbara, Honduras




Goal of the project

The goal of this project is the establishment of a production facility of small indoor pot plants. Summary

The applicant, Bunnik Plants Beheer B.V., and the local partner, Matas de Sula SA de CV, are going to set up a joint venture that will establish a production facility of small foliage indoor pot plants in the valley of Naco, Santa Barbara, Honduras. In this production facility 4 kinds of pot plants will be produced; the livistona rotundifolia, the dracaena reflexa, the chrysalidocarpus lutescens, and the rhapis excelsa. Results

• Result 1 : Business foundation. • Result 2 : Field cultivation established. • Result 3 : Greenhouse facility set-up. • Result 4 : Existing pack house adapted and operational. • Result 5 : Business development and certification. CSR aspects

Both project partners are MPS-A and MPS-GAP certified. The joint venture that they will establish will be certificated in the same way. Furthermore, with respect to working conditions, the partners will strive to adhere to the standards set by MPS-SQ as much as possible. Impact


In the two years that follow the pilot phase at least a further € 1.0 million will be invested and an additional turnover of € 1.4 million is projected.

Employment and By the end of the project there will be approximately 66 full-

Page 233 of 244

working conditions time employees, of which 9 are medium-/high-level employees. Two years after the project has been completed there will be approximately 102 full-time employees, of which 14 are medium-/high-level employees. Most salaries will be above the minimum wage and employees will receive a range of fringe benefits.

Transfer of knowledge Employees of the joint venture will acquire knowledge about the finishing of small pot plants, advanced greenhouse technology and production techniques and thereby raise local production standards.

Chain effects During the establishment and operation of the joint venture, the project partners will contract local suppliers and service suppliers as much as possible.

Environment The joint venture will be MPS-GAP certified. By finishing the pot plants in Honduras, the production period will be shortened and the energy consumption will be reduced due to a more favourable climate. Through the use of drip fertigation, the use of water and the depletion of fertilizers into the soil will be reduced. Finally, for shipment steel crates instead of wooden pallets will be utilized.

Position of women All job positions within the joint venture will be equally open for men and women. It is estimated that at least 50% of the employees will be female.

Other impact The project partners have the intention to invest a certain percentage of the joint venture's realized profits in a foundation that will be dedicated to social and community development projects that will benefit the joint venture's staff, their families and communities.

Page 234 of 244

Nicaragua

PSI09/NI/01 Piloting the cultivation of fresh herbs for export in

Nicaragua

Location Carazo

Sector Horticulture

Applicant Bar Magen Ltd, Kfar Bnei Zion, Israel

Local partner Holanda Agroindustria SA, Managua, Nicaragua

Third partner Ginosar Valley Agriculture, Ginosar, Israel




Goal of the project

The goal of this project is to set up the cultivation of fresh chives and basil for export. Summary

The Israeli applicant, Bar Magen Ltd, trades agricultural products and is the largest supplier of fresh herbs to the east coast of the USA from Israel. Since the demand for fresh herbs is growing annually, while production and transportation costs are increasing, Bar Magen wants to set up a joint venture in Nicaragua for the cultivation and packing of high quality chives and basil together with Ginosar, an Israeli supplier of a.o. tropical fruit to Bar Magen, and the Nicaraguan company Holanda Agroindustria. Results

• Result 1 : Business foundation / inception. • Result 2 : Herb growing farm set up. • Result 3 : Herb post harvest handling operational. • Result 4 : Business development and certification. CSR aspects

The joint venture will certify its production process for food safety. The plan is to acquire PRIMUS certification for the entire production process. This certificate, developed in the USA, addresses FDA / USDA guidelines, covering Good Food Practices (GAP), Good Manufacturing Practices (GMP), Sanitation Standard Operating Procedures (SSOP) and Hazard Analysis Critical Control Point programme (HACCP). Impact


In the first two years after the completion of the PSI project follow-up investments to the tune of € 1.0 million are anticipated. The turnover in 2012 is expected to be € 1.9 million.

Page 235 of 244


At the end of the PSI project the joint venture will employ 55 staff. Another 100 will be added within two years after the project. As the joint venture will be in a Free Trade Zone, salaries will be well above minimum wage.

Transfer of knowledge The project will introduce cultivation of herbs in greenhouses to Nicaragua, which knowledge is not present in Nicaragua at this time. Staff will get acquainted with greenhouse technology and production techniques.

Chain effects During the establishment and operation of the joint venture, the project partners will contract local suppliers and service suppliers as much as possible.

Environment The environmental impact will be limited as production will take place in greenhouses covered by plastic and insect proof nets. The joint venture will be PRIMUS certified to cover hygiene and environmental aspects. Soil disinfection will be realized through solar radiation.

Position of women Work in the nursery and activities such as transplanting, sorting and grading will mainly be done by women. The estimation is that at least 60% of the employees will be female.

Other impact The joint venture will contribute a certain percentage of its realized profits to social activities and local communities.

Page 236 of 244

Peru

PSI09/PE/01 Dairy Factory Peru

Location Arequipa


Applicant Machinehandel Lekkerkerker B.V., Lopik, The Netherlands

Local partner Agrícola Pammpa Baja SAC, Arequipa, Peru


End project 15 November 2011


Goal of the project

The project aims at setting up a milk processing plant in Arequipa, with a daily production of 25,000 litres of Cream Yoghurt with Tropical Fruit, 1,000 kg of 48+ Gouda Cheese and 15,000 litres pasteurised milk for the Government school-programme. Summary

In the Arequipa Department in southern Peru, there is no dairy processing plant producing higher added value products. All milk produced by local farmers is purchased by 1major dairy processor who evaporates the fresh milk in a local plant, then transports it to Lima for further processing. Recipient, Agricola Pampa Baja, is a local farm with a daily production of 30,000 litres of milk, and wants to increase its added value by locally producing new products like yoghurt and cheese. Applicant Machinehandel Lekkerkerker B.V. runs a dairy plant in Lopik and also manufactures processing equipment for the food industry. In Peru Machinehandel Lekkerkerker B.V. sees a good opportunity to operate a modern dairy plant, as well as for marketing its products. It will set up a joint venture with the recipient and build a dairy processing plant – some 100 km outside the city of Arequipa – to produce Cream Yoghurt with natural fruit, high fat 48+ mature Gouda Cheese and Pasteurised Fresh Milk in special dispensers for school programmes. These are new products for Peru, and will create added value and several new jobs in the region. Results

• Result 1 : Joint venture established. • Result 2 : Processing building finished, all equipment installed and operational. • Result 3 : Employees contracted and trained, contracts with fruit suppliers. • Result 4 : Commercial operations started, distribution system implemented. CSR aspects

The project will be HACCP certified, and also get a certification from the Peruvian Health Department. Local partner has its own CSR policy that is applied to the complete farm. Impact

Page 237 of 244


Follow-up investments amount to € 4.5 million for expansion of the milk reception capacity, a second pasteurization unit and doubling of the cold storage.


The project will generate 30 direct jobs, of which 11 at medium-/high-level and 19 of a basic-level. For production operators salaries will be twice the legal minimum. Two years after the pilot the number of permanent jobs will have increased to 53 (17 medium-/high-level and 36 basic-level). Besides good primary working conditions, employees will have benefits such as: • 13 months salary per year; • Health insurance; • Pension plan; • Daily lunch; • 30 holidays per year; • Transport to and from the farm.

Transfer of knowledge The technology for the production of cream yoghurt with concentrated fruits is new to Peru.

Chain effects The main effect on the chain are the fruit supply contracts, that will generate income for at least 100 small fruit producers. A long term contract will be signed with Fruit Products S.A.C. in Lima, a modern processing plant who will process 6,000 tons per year of fresh fruit into concentrated pulp, that will be supplied in aseptic packages.

Position of women About 50% of the workforce will consist of women.

Page 238 of 244

Peru

PSI09/PE/02 Introducing subsurface drip irrigation and organic

asparagus growing to Peru

Location Chincha Alta

Sector Organic agriculture

Applicant Van der Staaij Barendrecht B.V., Barendrecht, The Netherlands

Local partner Crystal Ocean SA, La Molina, Peru




Goal of the project

Setting up a farm (50 + 50 ha) for the production of organic (450 tons per year) and conventional Asparagus (500 tons per year), introducing subsurface irrigation technology, in the desert area near Chincha Alta. Summary

Peru is world's leading producer of fresh asparagus, with total exports amounting to USD 235 million (2007). Peru also has large areas of desert land, that is perfectly suited for growing asparagus, provided there is a good irrigation system available. Being a desert area, with no previous agricultural activity or contamination, this land is also ideal for the start of organic production. In 2008 Crystal Ocean (Lima) has acquired 380 ha of such virgin desert land, approximately 30 km east of Pisco (250 km south of Lima). The plot has good access to water for irrigation and, of the total 380 ha some 250 ha are suitable for cultivation. Van der Staay (Barendrecht) is a trader in fruit and vegetables, and wants to invest in the cultivation of asparagus in Peru to ensure the own supply of fresh and, if possible, organic asparagus. Both partners will set up a joint venture, that will introduce production of organic asparagus, as well as sub-surface drip irrigation in Peru, on an area of 100 ha initially. Results

• Result 1 : Joint venture established, required licenses obtained. • Result 2 : Infrastructure, groundworks and office / sanitary building finished. • Result 3 : Plantation of 50 ha asparagus using SDI, established. • Result 4 : Plantation of 50 ha organic asparagus established. • Result 5 : Business development and certification. CSR aspects

The joint venture will have explicit Corporate Social Responsibility (CSR) policies with regard to Social standards, Safety & Environment issues, Production Process Certification and policies regarding salaries and secondary benefits, as well as policies regarding gender equal opportunity enforcement. With regard to Safety & Environment, the joint venture will develop and implement a policy concerning workplace health and safety. Focus areas are safe storage and use of fertilizers

Page 239 of 244

and pesticides, safe use of machineries and tools, and hygiene. Staff will receive protective clothing and be assured enough working breaks and sanitary facilities. The joint venture will also formulate an environmental policy as part of the company's manual with regard to water safety, environmental friendly disposal of packing material and reduced energy consumption. Responsible water usage is guaranteed through the application of SDI and strict environmental standards are adhered to through Organic guidelines. With regard to process certification, organic production will be certified by an accredited and independent certifier (Control Union). The full operation will be GlobalGAP certified. Impact


An expansion of the production area to 300 ha is foreseen within the first two years following project completion. The main investment will consist of the seedlings, organic manure and irrigation equipment for an additional 150 ha. Also, investment in an IQF line is foreseen to freeze C-quality asparagus tips and pieces for stir-fry vegetables mixes. Turnover is expected to have increased to € 2.0 million in the second year after the project's completion, eventually reaching € 3.5 million once the 300 ha are in full production.


At the end of the project the joint venture will employ 121 staff on a full-time basis, of whom 6 of a high-level, 8 of medium-level and 107 of a basic-level. For basic-level jobs salaries will be 10% above the legal minimum, for medium-level 3.5 times minimum and for high-level 10 to 20 times minimum. Two years after the pilot the number of permanent jobs will have increased to 283 (8 high, 13 medium, 262 basic-level). In addition to good primary working conditions, employees will have: • performance based bonuses (for unskilled production

workers); • doctor's services paid for by the joint venture; • free daily meal at the canteen; • free transport to and from the farm. Another 150 seasonal workers will be needed each year for every 2 month-harvest campaign, corresponding to 25 fte.

Transfer of knowledge New knowledge will be introduced in the practices of SDI and Organic asparagus farming. The plantation of the joint venture will double as demonstration field for other farmers, government officers and agricultural universities in the region interested in the results of SDI and its suitability for asparagus growing in the desert of Peru. Knowledge transfer and increased awareness about soil and crop management and pest and disease management attuned to organic standards will lead to sustainable agriculture practices in the asparagus industry of which future generations will benefit.

Chain effects Besides direct jobs, the project will generate an additional economic activity in several parts of the chain: nurseries for asparagus plants, cattle farms for the sale of manure, mechanic workshops for maintenance of equipment, transportation

Page 240 of 244

companies, and so on. According to estimates of a large Peruvian player in the logistics of fresh asparagus, 36% of the value generated from production to port of dispatch (including air transportation) corresponds to farm activities; 16% to activities performed in the packing houses; 1.5% to land transportation; 1.6% to storage, loading and export logistics in the port and 45% to air transportation. This means that for each Euro generated at the farm, almost € 2.0 value are added in the chain by other entities.

Environment The effect of the project on the environment is close to neutral, or even positive if compared to conventional asparagus cultivation. The introduction of SDI will save about 2.5 m3 of water per year per hectare, given 25% of savings compared to conventional drip irrigation. The absolute water consumption of course has some negative impact on the natural resources, but this is professionally managed by the local water authority, who issues permits and quota for every project that uses large volumes of water. The organic cultivation of asparagus uses no chemical herbicides or pesticides and therefore has a positive effect on the environment.

Position of women The project will create at least 30 permanent jobs for women. More important perhaps is that at least 75% out of 300 seasonal workers (harvesters, packers) will be female.

Other impact The advantages of SDI are not restricted to asparagus only but, if successfully implemented, will be an important innovation for Peruvian horticulture at large.

Page 241 of 244

Suriname

PSI09/SR/03 Establishing a Dedicated Maroon Wellness Centre

Location Domburg

Sector Services / Tourism

Applicant Tacstone La Rive B.V., Hilversum, The Netherlands

Local partner Bouwbedrijf Kiesel N.V., Paramaribo, Suriname

Third partner The Wellness Company B.V., Amsterdam, The Netherlands




Goal of the project

To establish a wellness centre offering various wellness treatments as well as food and beverages. The wellness centre has a maximum annual capacity to serve 8,000 guests, receiving 12,000 treatments. Summary

The project partners intend to set up Maroon Wellness Centre in Domburg, on the riverbank, near Paramaribo. The centre will offer treatments based on Maroon culture and wellness treatments in order to attract international wellness tourists as well as locals seeking wellness treatments. A Maroon knowledge centre will be part of the project. Here information with regard to the culture and practices of the Maroon will be provided. Applicant Tacstone La Rive B.V. is a business development company. Local partner is Bouwbedrijf Kiesel N.V., a construction company undertaking both utility, building, civil works and renovation projects. The consortium is completed by the Dutch company De Wellness Company. De Wellness Company is the mother company of Puur & Kuur, a wellness travel organization. Also involved in the project are Fytotheek Pakosie, Living Well SPA & Wellness Group as well as 24H-Architecture. The intended site is located along the Suriname River and the Para creek, 25 minutes by car from Paramaribo. At this centre treatment will be offered derived from the Maroon culture and using herbs from the tropical forest in combination with known wellness treatments such as baths and massages. Furthermore, a riverside restaurant, lounge and bar will be added in Maroon style. In addition to the buildings, equipment and facilities such as a pool, herbal baths, steam baths, hot tubs, foot baths and massage tables will be needed. Based on the growth in wellness tourism and the lack of a specific wellness resort in Suriname – or even Latin America – the partners see good business potential in realising the project. Results

• Result 1 : Business foundation. • Result 2 : Maroon wellness centre set up.

Page 242 of 244

• Result 3 : Maroon wellness concept development and staff trained. • Result 4 : Business development. CSR aspects

The joint venture will acquire a recognised eco-certification in the travel and tourism industry and will be a general member of ISPA. ISPA is the International SPA association. With regard to the staff the aim is to have al least 1staff member certified as ISPA certified spa supervisor and 1member will be certified in retail management for spas. Impact


In case there is enough interest a second Maroon Wellness Centre will be established requiring an investment of € 2.0 million. An expansion of the facilities would require an investment of € 300,000. As a parallel investment 15 villas and 15 apartments / studios will be built by the project partners in order to accommodate / house wellness tourists. The required investment needed is € 2,240,000.


At the end of the PSI project the joint venture will employ 26 staff, 6 high-level, 9 medium-level and 11 basic-level. Two years after the PSI project the amount of employees will be 38. Of these 7 will be high-level, 14 medium and 17 basic-level. Personnel will receive above average wages. Furthermore, employees will be given health insurance. A company canteen will be constructed and a first aid specialist contracted and clothing provided for employees.

Transfer of knowledge Employees of the joint venture will be given training in Maroon culture as well as dedicated wellness aspects.

Chain effects Food and beverages will be bought locally. Vegetables and fruits will be purchased from farmers that offer naturally grown products.

Environment The impact on the environment will be neutral. Measures that will be taken to ensure a low impact on the environment include: • rainwater collection and filtration for drinking, river water

filtration for irrigation and pool water; • solar energy for power and led lights; • composting of green waste.

Position of women Women will make up 65% of the staff.

Other impact Preservation of Maroon culture and an increase in awareness of their culture.

Page 243 of 244

Suriname

PSI09/SR/22 Strengthening of the Suriname Rice Industry

Location Nickerie

Sector Agriculture

Applicant Alesie Food Holland B.V., Ootmarsum, The Netherlands

Local partner Sahara Rijsthandel N.V., Paramaribo, Suriname

Third partner Caribecom Trading B.V., Ootmarsum, The Netherlands




Goal of the project

To set up a rice mill for the production of 160 tons parboiled rice per month. Summary

The intention of the project partners is to set up a factory for the production of parboiled rice. EU policy for the import of rice was adapted in 2008. As a result the quota for Suriname was increased and import is duty free. Production and export in Suriname is therefore an interesting business proposition. Furthermore, the CARICOM market is duty free for Suriname rice. As parboiled rice is a healthier product than regular rice a premium is usually paid. This higher price will in turn make it possible to pay a better price for paddy rice to farmers and of course more income for the mill. The rice plant will be set up in the Nickerie region where the rice will be sourced from local farmers. A group of 50 preferred suppliers of rice will be trained and HACCP certification will be gained for the rice plant. Applicant Alesie Food Holland B.V. − a rice trading company − will set up a joint venture with

local partner Sahara Rijsthandel N.V. - producer and processor of white rice and Caribecom Trading. Results

• Result 1 : Establishment of the joint venture. • Result 2 : Set up of rice milling equipment. • Result 3 : Set up of parboiled plant. • Result 4 : Production and marketing. CSR aspects

The production facility will be HACCP certified. Furthermore, the joint venture will provide free medical check ups for their employees, and a HIV / AIDS prevention programme will be set up. Impact

Page 244 of 244


To increase production volumes to 12,000 tons (based on 2 shifts) an additional € 200,000 will be invested in parboiling and milling equipment. In time also investments will be needed in a separate air conditioned room and packaging machines which will cost € 100,000.


At the end of the project the joint venture will employ 35 basic-level employees and 3 high-level employees. Two years after the PSI project this will have risen to 45 basic-level employees and 5 high-level employees. The joint venture will pay at least 15% above the average wage. Protective clothing will be distributed.

Transfer of knowledge New will be the way and technique to produce high export standard parboiled rice. The rice milling itself is not new, but rather the specific way parboiled rice is produced and the re-use of paddy hulls for drying. Furthermore the training given to farmers will stimulate them to use less pesticide. Furthermore, their yields can be improved, with the introduction of eco-friendly pesticides. Now farmers harvest about 4 tons per hectare in Suriname. In the USA, as comparison, this can go up to 20 tons per hectare.

Chain effects 50 farmers will be organised in a farmers association. These farmers will receive a higher price for their paddy (USD 10 to 20 tons above market price), provided the rice is of a good, constant quality. Other rice millers will be invited to demonstrate the new technology to. Not only the parboiling process, but also the husk furnace.

Environment The joint venture will make use of a cyclonic husk furnace to burn paddy husks. In other rice mills these are simply gathered and burnt in the open air. By using the furnace the amount of waste will be reduced and use of diesel, commonly used for drying will, not be necessary. Outgrowers will be trained on how to use less pesticide, putting less pressure on the environmental.

Position of women The joint venture expects to employ about 40% women.

Documents

PSI project overview 2009 - Rijksdienst voor Ondernemend ... project overview 2009_1.pdf · PSI Plus Afghanistan The Palestinian Authority southern Sudan Burundi Sierra Leone More