(PSI) Project overview 2011

Transcription

Private Sector Investment
programme (PSI)
Project overview 2011
Colophon
Contact
Private Sector Investment programme
(PSI)
T +31 88 602 85 13
F +31 88 602 90 23
[email protected]
NL EVD International
Prinses Beatrixlaan 2 | 2595 AL The Hague
PO Box 93144 | 2509 AC The Hague
The Netherlands
Index
Africa
9
Benin
PSI11/BJ/21
Industrial shea nut processing in Benin
11
11
Burkina Faso
PSI11/BF/01
PSI11/BF/21
Buy Burkinabé Lime, Build Burkina Faso
Electricity concrete pole
14
14
18
Burundi (PSI Plus)
PSIP11/BI/24
Introducing bore hole drilling technology
21
21
Cape Verde
PSI11/CV/01
PSI11/CV/21
25
25
28
Reviving and upgrading Fogo coffee quality
Integrated vegetable, flower & fruit tree production
The Democratic Republic of the Congo (PSI Plus)
PSIP11/CD/02
An agricultural service centre and outgrowers programme in
the DR Congo
PSIP11/CD/21
Cleaning up Kinshasa
31
Egypt
PSI11/EG/01
37
PSI11/EG/21
Ethiopia
PSI11/ET/01
PSI11/ET/03
PSI11/ET/04
31
34
Developing comprehensive rehabilitation services for children with
chronic conditions in Alexandria
Stand-alone toolshop and test centre for thin walled injection moulds
37
39
41
41
44
PSI11/ET/05
PSI11/ET/21
PSI11/ET/23
PSI11/ET/24
Sustainable high yield castor oil production in a desert area
Growing and processing raisin tomato in Tigray
Establishment of a sustainable supply chain for industrial
bamboo products
Ethiopian Ballooning
Tahini production facility with sesame outgrower scheme
Industrial baltena and injera sauce production
Quality linseed production with small-holder farmers
The Gambia
PSI11/GM/01
Integrated Outgrower Poultry Project
63
63
Ghana
PSI11/GH/01
Fair trade organic ISO 22000 compliant palm oil for export
66
66
Kenya
PSI11/KE/22
H2ollandwater for sustainable irrigation dosing units in Kenya
69
69
48
52
55
57
60
Page 3 of 279
Madagascar
PSI11/MG/01
PSI11/MG/02
71
71
PSI11/MG/21
PSI11/MG/23
Sea cucumber farming
Solar energy systems to supply productive power via Smart Grids for
rural development
Masoandro
Low-cost wireless internet and digital TV
Malawi
PSI11/MW/21
Flowtech Limited
80
80
Mali
PSI11/ML/01
PSI11/ML/02
PSI11/ML/22
PSI11/ML/23
Pivot wheat production
HI Béton
Mali under Construction
Super Mali Mango
83
83
87
91
94
Rwanda
PSI11/RW/01
Establish Rwandan avocado production, outgrower scheme and export
97
97
Senegal
PSI11/SN/01
Hallal delicacies
74
76
78
100
100
Sierra Leone (PSI Plus)
PSIP11/SL/01
ACCC Ltd; Cacao processing for Sierra Leone
PSIP11/SL/25
Providing modern cargo services at Freetown International Airport
103
103
105
Sudan
PSI11/SD/21
PSI11/SD/22
Setting up the "Comprehensive Rehabilitation Centre"
The Sudan poultry feed centre of excellence
107
107
109
Tanzania
PSI11/TZ/22
Tanzania Crushing Facility
111
111
Uganda
PSI11/UG/03
PSI11/UG/24
PSI11/UG/25
114
Introducing soya and sunflower warehouse receipt systems to Uganda 114
Potato processing in Kisoro
117
To the next level
120
Zambia
PSI11/ZM/01
PSI11/ZM/02
Production of forage seeds
Samfya marina, flotilla and hospitality
123
123
126
Asia
129
Afghanistan (PSI Plus)
PSIP11/AF/07
Marvellous Afghan Marmar
PSIP11/AF/22
Quality liquorice from Afghanistan
PSIP11/AF/25
Kabul Dairy Processing Plant
131
131
132
133
Bangladesh
PSI11/BD/23
134
134
Page 4 of 279
Cattle & Buffalo Improvement in Bangladesh
Indonesia
PSI11/RI/03
PSI11/RI/04
PSI11/RI/22
PSI11/RI/23
PSI11/RI/24
PSI11/RI/26
PSI11/RI/27
Single piece production of high quality FSC doors
Sustainable production of bamboo panels and planks
Piloting protected cultivation of tropical vegetable seeds
A supply chain for fresh organic cassava chips
Holcomer UHT colouring of milk bottles
Integrated fresh sourcing & farm extension services for
modern wholesale markets
Tool Factory
Nepal
PSI11/NP/01
PSI11/NP/02
PSI11/NP/03
Production of Animal Vaccines
Certified Herb extracts from Nepal
Hybrid seed production in Nepal
137
137
139
141
144
147
150
152
154
154
156
158
Pakistan (PSI Plus)
PSIP11/PK/22
Voice Biometric authentication in Pakistan
160
160
The Palestinian Authority (PSI Plus)
PSIP11/OT/02
Transcend Services
PSIP11/OT/04
High quality cream and processed cheese
PSIP11/OT/05
Natural soap from Nablus
PSIP11/OT/09
Environmental olive project
PSIP11/OT/2E
Organic Palestinian Dead Sea salt
PSIP11/OT/2F
Environmentally friendly plastics for the Palestinian Authority
162
162
164
166
168
170
172
The Philippines
PSI11/PH/21
Coir Pith and Husk Processing Project in Mati, Mindanao Philippines
(Growrite Substrates Philippines Corp.)
174
Vietnam
PSI11/VN/03
PSI11/VN/06
PSI11/VN/07
PSI11/VN/25
177
177
180
184
187
Creating added value to the Mekong coconut waste streams
Pilot production of high Quality sheet metal products for export
Fast RSQ Vietnam
Excellent products goes Asia
174
Yemen (PSI Plus)
PSIP11/YE/01
Yemeni coffee processing project
PSIP11/YE/21
Healthy eggs
190
190
193
Central and Eastern Europe
195
Armenia
PSI11/AM/21
PSI11/AM/22
197
197
199
Armenia's first professional fresh strawberry production company
Establishing the production of sulphuric acid in Armenia
Bosnia and Herzegovina
PSI11/BA/21
Heavy duty sacks
PSI11/BA/25
Establishment of a high-precision CNC metal processing workshop
202
202
205
Georgia
PSI11/GE/01
208
208
Medical & diagnostic laboratory services in Georgia
Page 5 of 279
Kosovo
PSI11/K3/01
Manufacturing window decorations
210
210
Macedonia
PSI11/MK/03
PSI11/MK/23
PSI11/MK/25
Slow Food in Macedonia
PAPU Modern pork production in Macedonia
All-round greenhouse construction & advisory company
212
212
215
219
Moldova
PSI11/MD/22
PSI11/MD/23
Organic vegetable seed production in Moldova
Production of high quality clothing for the medical care
222
222
225
Latin America
229
Bolivia
PSI11/BO/01
PSI11/BO/02
Integrated Vegetable Production – Green houses innovation
Value added sesame products
231
231
233
Colombia
PSI11/CO/02
PSI11/CO/03
Environmentally friendly crop protection products
Organic fresh fruit & vegetables from Colombia
236
236
239
Guatemala (PSI Plus)
PSIP11/GT/02
Transformation of wasted fruits in, by biomass IQF frozen,
innovative portion packs
PSIP11/GT/03
Piloting a processing plant for animal blood, serum and bile
PSIP11/GT/21
Centro de Capacitación, Innovación y Producción Popoyán-Priva
PSIP11/GT/22
Production of natural medicine in gel capsules
PSIP11/GT/25
High Tech Dental Imaging Centre and Dental CAD/CAM Laboratory
241
Nicaragua
PSI11/NI/02
PSI11/NI/04
PSI11/NI/21
PSI11/NI/23
Production of chilli peppers and sauce in Nicaragua
Piloting the production of un-rooted cuttings of annual bedding plants
Certified processing of crab in Nicaragua for USA market
Production of architectural designs in Nicaragua
255
255
257
260
263
Peru
PSI11/PE/01
PSI11/PE/02
PSI11/PE/03
PSI11/PE/04
Fresh Bell Peppers for the export market
Organic Lemon production
Establishment of a Sweet Potato export chain
Growing Desert Flowers in Peru
265
265
268
271
274
Suriname
PSI11/SR/03
A supply chain for hot-fill production of tropical nectars and juices
277
277
Page 6 of 279
241
244
247
250
252
Page 7 of 279
Page 8 of 279
Africa
Page 9 of 279
Page 10 of 279
Benin
PSI11/BJ/21
Industrial shea nut processing in Benin
Location
Cotonou
Sector
Food processing
Applicant
Zijderlaan Handel Maatschappij B.V., Waspik, The Netherlands
Local partner
Comanet SARL, Cotonou, Benin
Start project
01 January 2012
End project
30 June 2014
Total budget
€ 1,499,922 (50% PSI contribution = € 749,961)
Goal of the project
To produce high quality shea butter in Northern Benin for export to Europe. In year three a
turnover of € 750,000 with a production of 480 tons of shea butter will be realised.
Abstract
The partners, Zijderlaan Handel Maatschappij B.V. and Comanet SA propose to set up a
modern, certified plant to produce shea butter for export to the chocolate industry in Europe.
At the moment 65% of the nuts which fall from the trees in the growing areas are not
gathered by lack of demand. The market for good quality shea butter in Europe is large. The
main problem to have demand meet offer is the low quality of the actual artisanal production
methods in Benin.
Local women will be trained to collect, store and transport the shea nuts in a way that the
quality remains good. A factory is set up in Parakou where 37 employees will be trained and
the necessary hardware will be installed to produce first class shea butter. Within a cold
chain this butter will be transported to Europe.
A total turnover of € 680,000 per year is targeted with a production of 480 tons of shea
Butter.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Business establishment.
Establishing the factory.
Capacity building.
Project result.
CSR aspects
This project provides a good possibility for rural women to get extra income. As the shea
trees are in general not privately owned but communal property. The joint venture sees it as
its responsibility to prevent this system to deteriorate by giving a higher value to this crop.
Traditionally the gathering is done by women and the partners state that they only buy from
women's groups, again to avoid negative effects by the more profitable nut market.
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Impact
Long term economic
activity
The project partners have demonstrated a track record of
developing new business initiatives like the shea butter
company in Mali. This project will set up an initial processing
unit. Much advantage is expected of processing nuts locally
instead of exporting the nuts for processing overseas. As the
world market is very demanding, there is plenty of room for
expansion in the sourcing and the sales of ready processed
shea butter. According to a consulted independent expert
working with one of the major chocolate producers good shea
butter is considered expensive and short in supply.
On the gathering side, as only 30% of the nuts are actually
collected there is also sufficient room for expansion of the
factory.
Instead of enlarging the projected plant, the partners will
expand with more units in different regions of the country to
avoid the transport of 60% of the weight, representing the
press cake.
Employment and
working conditions
A total of 37 employees will be hired by the joint venture.
This project will offer it's employees a wage package including
fringe benefits such as medical aid for employees and
dependents, participation in a preventive health care
programme for HIV/AIDS, and support school fees for underage
children.
Transfer of knowledge
Presently only raw unprocessed shea nuts are exported from
Benin. Only a small quantity of local processers exists in Benin
and than only at an artisanal technology level. Some shea
butter of moderate quality is exported actually.
This project will set up the first industrial local shea processing
plant. Technology transfer will take place internally and
externally.
Internal technology transfer: staff and manual labour will be
trained in operational and management of an innovative
processing plant for shea nuts.
External technology transfer; a Good Shea Gathering Practices
programme will link the project with the village gatherers to
eliminate impurities and lower quality from the logistical
system and the production chain.
Chain effects
This project will increase: local gathering of nuts and thereby
increase also the income of rural women on the input side. On
the output side, butter of good quality will be available at
reasonable prices in the value chain. The use of shea butter in
the European food industry can become a more important
ingredient leading to more demand.
The general move to start processing African commodities in
Africa itself in stead of processing in the countries that use the
commodity will serve as an example to other, comparable,
industries.
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Environment
The shea belt includes one of the most delicate eco systems
along the South of the Sahara desert where deforestation is a
recognised problem.
Actually only a small percentage of the fruits are collected and
by this the mere existence of the tree has no large priority. As
the shea nut market becomes more interesting, the urgency of
preserving those trees in the arable fields becomes more
important.
When shea nuts are pressed the butter is largely separated
from the residual cake. This shea cake still contains a
considerable amount of shea butter. Shea nut cake can be used
as industrial or household fuel in Benin if processing is done
locally. Shea nut cake will create a local alternative fuel
replacing wood and reducing deforestation.
Position of women
Shea nut trees are not planted as crops but are found
indigenously in the shea belt. As a field is cleared from
vegetation to grow arable crops like millet, the shea trees (and
some other species) are left in the field. Although the field and
the trees are owned by men, shea nut collection is a
community activity dominated by women. By shortening the
production chain and logistical costs this project can be
competitive in the international shea nut market while still
paying more to the original gatherers. Culturally it is known
that shea money is considered woman's cash.
The improvement of the market for shea nuts will directly feed
into this domestic privilege.
Four women will be hired for high-level positions in the joint
venture.
More information:
http://www.zijderlaanwaspik.nl/
Page 13 of 279
Burkina Faso
PSI11/BF/01
Buy Burkinabé Lime, Build Burkina Faso
Location
Souroukoudinga
Sector
Building and Infrastructure
Applicant
Cales De Pachs, Pacs del Penedès, Spain
Local partner
GIE Chaulerie de Souroukoudinga (La Chau-Sou),
Bobo Dioulasso, Burkina Faso
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
The goal of the project is to produce 33 tons of lime per day for sale in the local mining and
building sector.
Abstract
Lime is the oldest building material known and today it is used besides building also in a
large number of industrial processes. In Burkina Faso, lime is used by the gold mining
industry and the fast growing building sector. No high quality lime is produced locally in
Burkina Faso. In 2010, 100,000 tons was imported.
This project aims to set up a lime producing unit of 33 tons per day in the rural village of
Souroukoudinga for the production of slaked and unslaked lime. The project will create
34 jobs and a yearly turnover of € 1.5 million is expected to be realised. The unit will be
managed by a female managing director and environmental and safety issues will be taken
very seriously. The training of the personnel is an important part of the project.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Legal procedures.
Construction of the building and installation of the factory.
Recruitment and training of the employees.
Production phase.
CSR aspects
As stated in the chapter 'CSR Policy' the local partner has a good understanding with the
village where the mining activities will take place. According to Burkinabé law a mining
company needs to get the approval of the village to which the land traditionally belongs for
the mining concession. This approval is mostly given in exchange for social and economic
development in the village. Thus la Chau Sou has invested in boreholes and other social
infrastructure for the village in order to get the approval for the concession.
Page 14 of 279
Impact
Long term economic
activity
The partners intend to increase their production capacity two
years following the project's completion. Demand for lime is
huge in the whole region, therefore the partners will invest in
increased production capacity in order to increase the
production. As the demand for lime is huge and will increase in
the near future, production will be increased to at least 100
tons per day. With extra investment in training, vehicles and
environmental measures, the additional investments will be
around € 3 million. This will create a total turnover of
€ 9,600,000 two years after the end of the pilot phase.
The partners will also have to recruit more employees who will
have to be trained.
The partners will continue their cooperation for many years to
come as the production of slaked and unslaked lime is a good
business opportunity in Burkina Faso.
Employment and
working conditions
The project will create 34 full-time positions at the end of the
project. All employees will have official employment contracts
which will strictly respect the Burkinabé labour laws. The joint
venture will not make use of any form of forced or child labour,
nor will they work with suppliers or sub-contractors that do so.
The quarry will be operated by the company's own personnel,
using modern equipment which can not be operated by
children.
As said earlier, good working conditions are part of the
partners' CSR policy. This means that all employees will be
registered at the Caisse Nationale de Sécurité Sociale to ensure
a social package and their retirement. Legal working hours will
be respected carefully and all overtime work will be paid extra.
Social dialog will be taken seriously and employees will be
encouraged to participate in the company’s corporate culture,
to voice their ideas and suggest new ones. A canteen will be
established at the production site and the joint venture will
finance part of the meals provided.
Minimum wages in Burkina Faso are around € 50 per month.
The least paid employee will earn 164% of the minimum wage.
In addition they will receive training on the prevention of
HIV/AIDS. In general high emphasis will be put on employee
development. To this end, all employees will receive constant
training on the job. Furthermore, the project partners want to
provide a working environment free of any form of
discrimination.
Knowledge transfer will be an important aspect of this project.
All aspects of the project related to the production of lime are
unknown in Burkina Faso. All operators will have to be trained
on how to use, maintain and repair the production line. The
workers will also be trained on the industrial production of lime.
The employees will have to understand the functioning of the
production line but also the theoretical aspects of the
production of lime. Lime products have a huge market potential
Page 15 of 279
in Burkina Faso and also in neighbouring countries. The
partners hope their production will encourage other operators
to start producing lime as well. The project employees, who are
all trained, will thus see their marketability increase on the
labour market. Not only in Burkina Faso but also in
neighbouring countries.
Chain effects
As the price of lime will go down in Burkina Faso, other
companies, dependent on lime, will benefit from this initiative.
Energy suppliers will be among the first to benefit greatly from
the project as energy accounts for more than 50% of the
production cost. Packaging materials will also be bought from a
local supplier. The same applies for cleaning products, office
and workshop supplies, telephone subscription etc. Insurances
will also have to be contracted with local insurance companies.
Environment
In each stage of the production process, the environmental
aspects will be monitored strongly. These include degradation
of soil, emissions of dust and CO2, use of energy, waste
production and loss of vegetation in the quarry. The nature and
size of these risks are all identified in the environmental impact
assessment, which was conducted in 2010. To prevent any
lasting damage to the environment and maximise the positive
impacts instead, the partners have developed a comprehensive
set of measures. In order to prevent soil erosion, land clearing
and soil stripping will be limited to the bare minimum and the
top soil will be conserved. The slopes of the quarry will be
stabilised and fixed. Next to that, the partners will ensure
restoration of the soil through extensive re-vegetation, among
others with endemic trees, groves, mango and cashew.
Together with the public water and forestry services, the
partners will set up a small nursery. In addition to that, the
tracks will be humidified and well maintained, so dust will be
limited as much as possible. Special environmental filters will
be installed to capture the smoke coming out of the ovens and
regular maintenance of the construction equipment and the
vehicles will prevent any environmental impact from leakage or
other damages. Dust emissions at the mechanical production
site will be further limited through plantation of a cordon of
trees that will break the wind.
The CO2 which is released when the lime is burnt is absorbed
again when the slaked lime absorbs CO2 and is thereby
converted back to lime. It is precisely this cycle which makes
the production of slaked lime CO2 neutral.
Position of women
The project will recruit 4 women. This represents 11% of the
workforce, which is high for a sector traditionally dominated by
men. The figure seems low but 2 of the 4 women that will be
recruited will occupy high-level management positions (being
Managing Director and Accountant). The choice for a female
Managing Director is deliberate as the partners wish to set the
example in the Burkinabé society.
Page 16 of 279
Other impact
The project will bring direct improvements in the region where
it is located. The village next to the future unit,
Souroukoudinga, will benefit from improved infrastructure such
as better roads and electricity. Access to health care will
significantly improve as the partners will establish a health care
facility in the village. The partners will furthermore invest in
expansion of the local school in Souroukoudinga with 3rd and
4th grade classes.
Page 17 of 279
Burkina Faso
PSI11/BF/21
Electricity concrete pole
Location
Ouagadougou
Sector
Industry
Applicant
Jager Ophof, Harderwijk, The Netherlands
Local partner
Simeeel, Ouagadougou, Burkina Faso
Start project
01 January 2012
End project
01 June 2014
Total budget
Goal of the project
To set up a concrete pole manufacturing company in Burkina Faso for the electric grid with a
capacity of 10,000 poles per year.
Abstract
At present in Burkina Faso, electrical poles made of steel are used for the grid. All electricity
conductors are on poles, no subterranean cables exists.
As a result of the fast increasing price of steel these poles become very expensive. Building a
plant for the production of concrete poles reduces the price by at least 30% and presents
thus a lucrative business opportunity.
The local partner Simeeel, is doing a large part of the contracts to extend the electricity grid
in Burkina Faso and is very interested in setting up such a facility. Their Dutch partner is
active in the concrete plant and prefab business. The concrete plant they want to set up will,
besides the concrete poles, produce other prefab elements, mainly for the building and
infrastructural companies in Burkina Faso.
Results
• Result 1 : Establishment of the joint venture.
• Result 2 : Concrete plant erected, buildings constructed and procurement of other
equipment.
• Result 3 : Recruitment of personnel, training of all employees.
• Result 4 : Operational phase.
CSR aspects
The project partners agree to provide their employees with formal labour contracts,
competitive wages, good and safe working conditions, the freedom to associate and a
working environment free of discrimination. The joint venture will not make use of any form
of forced or child labour, nor will they work with suppliers or sub-contractors that do so.
Remuneration and working hours shall comply with local labour laws and wages will be at
least a considerable percentage higher than the nationally agreed minimum wage. All
employees will receive training on aspects relating to health and safety at work and all
Page 18 of 279
necessary safety equipment such as working clothes, shoes, helmets ear protectors and first
aid kits. In addition they will receive training on prevention of HIV/AIDS.
With respect to the environment, the company will do all that can reasonable and practicable
be done to minimise any adverse effects of its activities. All employees will be trained on
minimising waste and pollution and maximising fuel and energy consumption efficiency.
Impact
Long term economic
activity
The factory will be established in the first place to produce
poles. As soon as the exploitation phase has started, expansion
and product development will be investigated. The partners
agree to invest in expansion and diversification of production
(adding moulds and mixing silos, increasing the size of the
factory). A second plant can be considered in a later stage. A
mobile plant can be profitable to rent out at large
infrastructural works.
Total follow-up investment for the different items will be:
Additional concrete mixing capacity (200 m3 per day):
€ 1,770,800.
Second prefabricated concrete plant: € 2,000,000.
Mobile concrete plant for second city of Burkina Faso or other
punctual demands for concrete: € 400,000.
Employment and
working conditions
The number of jobs will increase as production steps up.
Initially 36 people will be employed. Workers will be provided
with official labour contracts. In a country where informal
employment prevails, this is an important positive feature.
The companies’ CSR criteria will be followed as a minimum
standard. The consortium is aware of the conditions that are
connected both to the type of industry and the local conditions.
Therefore:
• production places will be covered from direct exposure to
sun;
• wages will be at least 259.57% over national minimum of
around € 47;
• no child labour will be used;
• within the supply chain, the consortium will check on child
labour;
• chances for women will be created when possible;
• health and security norm at work will be on standard (mouth
caps, enforced shoes, clothing, etc).
All employees will receive training on aspects relating to
health and safety at work and all necessary safety
equipment such as working clothes, shoes, helmets ear
protectors and first aid kits. In addition they will receive
training on prevention of HIV/AIDS. All employees will be
treated equally.
All knowledge regarding machinery, marketing and concrete
making is future-owned by the local factory. Partners providing
this knowledge have signed for this.
After initial training and follow-up training, new (production-)
Page 19 of 279
staff will be trained by the local, new, specialists in the field. As
the production of poles and concrete products is completely new
to the country, all knowledge is new.
Chain effects
The wider availability of electricity is of immense value to the
economy as a whole, as it allows smaller entrepreneurs and
workers to work longer hours, more efficient and more
productive. In addition implementation of the electricity system
in itself is generating production and activity for the whole
sector. With the cheaper concrete poles, the same budget will
have a larger area covered by the electricity grid.
Other industries like house building and infrastructure benefit
directly from the easier and cheaper availability of concrete
products.
Environment
A concrete factory is in itself not beautiful to some people.
Modern technology and advanced standards of sustainability
will be applied to create as much harmony with the
environment as possible. Waste products like oil from the
trucks, cars and wheel loader will be collected and discarded in
a proper way.
The discarded water from cleaning will be used for new
production.
The project does not pose any risk to the environment.
Position of women
19% of the workforce will consist of women, which is
considerable regarding the type of industry. The consortium is
keen on employing women, and is prepared to create the
conditions for that. Men and women will be treated equally at
the workplace. They will have the same opportunities.
Promotion will be based on merit and performance strictly. Male
and female employees will receive equal pay for equal work.
Sexual harassment will not be tolerated.
Other impact
The production of concrete poles will replace expensive imports
which is important for the balance of payments of Burkina
Faso.
More information:
http://www.jager-ophof.nl/
Page 20 of 279
Burundi (PSI Plus)
PSIP11/BI/24
Introducing bore hole drilling technology
Location
Bujumbura
Sector
Water
Applicant
Vergnet Hydro S.A.S., Ingre, France
Local partner
PFC-Planning The Future Company S.A., Bujumbura, Burundi
Start project
01 January 2012
End project
30 June 2014
Total budget
€ 1,323,589 (60% PSI contribution = € 794,153;
MIGA contribution = € 69,488)
Goal of the project
Establishment of a local borehole drilling company (one drilling unit) with a capacity of
100-200 boreholes per annum and development of local expertise through training of
68 staff.
Abstract
The project will establish an independent bore hole drilling company capable of drilling some
100-200 bores for drinking water annually.
Access to safe drinking water in Burundi is still very problematic today. Whereas other
countries in the sub-region have successfully improved their drinking water supply, Burundi
is lagging behind with 64% of the population having access to potable drinking water.
Numerous programmes are initiated by international organisations and NGOs, but local
borehole drilling capacity is so far not yet available. All borehole expertise and services today
are imported from abroad (Kenya, Uganda, Europe, Asia etc) resulting in high prices and
long delivery times. In addition to the water sector there is an upcoming demand for drilling
services and expertise in construction, infrastructure, mining and geotechnical studies.
The partners will establish a joint venture and invest in one mobile drilling unit. It will recruit
68 new employees, provide training both to employees and to contractors and clients in the
value chain. After an initial PSIP assisted pilot, there are many opportunities for follow-up
investments: both for up-scaling the borehole drilling capacity and for diversifying the
portfolio of services and works.
Results
• Result 1 : Legal and administrative structure established (including design of drilling unit
and formulation training programme).
• Result 2 : Construction of buildings, ordering and installation and testing of equipment.
• Result 3 : Recruitment and training of joint venture staff and chain partners.
• Result 4 : Pilot operation, evaluation and reporting.
Page 21 of 279
CSR aspects
Both partners have a written CSR policy. Development of a CSR policy based on those of the
partners will be in the core of the project. It will include:
• The drilling unit will be designed according to international health, safety and
environmental rules and regulations.
• Prior to construction of the site an Environmental and Social Impact Assessment will be
conducted.
• An EIA will be conducted before each drilling project and data will be collected that can
contribute to hydrological mapping.
• All (sub) contractors will have to show their policy on working conditions, environment
protection and abstinence of child labour and forced labour.
• A detailed health and safety programme will be developed.
• The joint venture will provide an extensive programme of fringe benefits to its employees.
The applicant Vergnet is ISO 9002 certified. A Pre-Audit for ISO 9002 will be included under
Result 4 of the PSIP project.
Impact
Long term economic
activity
Partners expect to invest a total of € 2,820,000 within two years
of completion of the PSIP phase. These joint investments will be
in additional mobile drilling units, extension into other drilling
applications and expansion of facilities and staff training.
Employment and
working conditions
At the end of the PSIP project the joint venture will employ
68 fte of which 9 at high-level, 29 medium-level and 30 basiclevel.
The local partner PFC will transfer its present field staff of
4 drillers (1 high- and 3 medium-level) and 16 workers to the
joint venture and therefore the additional employment created
will be 48 fte.
Two years after completion of the PSIP phase the company
expects to employ 120 fte.
The employees will all be on contracts and be paid at minimally
15% above average wage level in the sector.
The joint venture will be offering the following set of fringe
benefits to employees:
• a pension scheme;
• reimbursement of health expenses;
• free transport to and from work;
• if necessary temporary housing on location;
• a year-end bonus scheme, interest free credits for
educational or family purposes;
• lunch expenses reimbursement;
• education (both for employees and for their family
members);
• HIV sensibilisation;
• premium for social security insurance as legally required.
For field staff additional benefits will include free food,
separation fee, free transport and free lodging.
The project introduces and transfers technical skills and
technologies that are new for the country:
• Operation and maintenance of drilling equipment (basic and
Page 22 of 279
advanced).
• Drinking water sourcing from depths of more than
100 metres.
• Geophysical research knowledge.
• How to run a water borehole drilling business.
• Using advanced drilling techniques in construction,
infrastructure and mining.
• Quality management, environment, health & safety
management.
Chain effects
The project will have positive chain effects both for suppliers of
inputs (spares, consumables and logistics) and maintenance
services as well as for customers through lower price levels and
increased availability of drilling services. An estimated total of
6 companies are expected to benefit long term.
Environment
The project may be expected to have a positive impact on the
environment:
• The project makes the use of water bore holes accessible for
more Burundians. So people have to make less use of
polluting alternatives like bottled water or purifying surface
water.
• Bore hole drilling techniques have substantially less impact
on the environment than digging and driving techniques.
• The project will boost new drilling and water pumping
methods that enable Burundi to pump water from deeper
reservoirs with substantial environmental benefits. The
water pumping methods currently applied cause soil
dehydration and – as a consequence – damages the
environment and biodiversity.
• An EIA will be conducted before each drilling project and
data will be collected that can contribute to hydrological
mapping.
Position of women
The activities of the project will have a positive impact on the
position of women as a result of improved (rural) water supply
that will alleviate the burden of women in fetching water and
contribute to improved health.
Other impact
The proposal emphasises the social impact of improved
drinking water supply to which the project will contribute. It is
expected that 85,000 people annually will benefit from
improved water supply, so that improved water supply will
have reached 360,000 people by the end of 2015. If Burundi
would remain dependent on drilling capacity from abroad this
target would be reached later.
The project will collaborate with Regie des Eaux to contribute to
mapping of water resources in Burundi by making available the
information obtained during pre-drilling surveys.
More information:
http://www.vergnet-hydro.com/
Page 23 of 279
Page 24 of 279
Cape Verde
PSI11/CV/01
Reviving and upgrading Fogo coffee quality
Location
Fogo Island
Sector
Agriculture
Applicant
Trabocca B.V., Amsterdam, The Netherlands
Local partner
Capital Consulting LDA, Sal, Cape Verde
Third partner
Fogo Coffee Association, Fogo Island, Cape Verde
Start project
01 August 2011
End project
31 July 2013
Total budget
€ 477,309 (50% PSI contribution = € 238,655)
Goal of the project
Reviving and upgrading the Fogo volcano coffee industry by strengthening the coffee
association, improving the management of the coffee plantations, having its production
organically certified, improving the processing by the introduction of ecoflex wet coffee mills
and creating a specialty premium market for the Fogo volcano coffee.
Abstract
The Northern part of the volcanic Cape Verdean island Fogo has an excellent microclimate to
grow high quality coffee. It has been producing large quantities of coffee for many centuries.
However, the coffee production has been neglected for many years due to lack of finance,
equipment, market access and knowledge. Instead, cheap quality coffee is being imported
from Brazil and Portugal; the latter being sold to tourists as "Fogo coffee". As the
approximately one hundred coffee farmers of the Fogo Coffee Association could not compete
with this imported coffee on the local market, they changed part of their production to fruits
and vegetables. The Dutch organic coffee trading company Trabocca recognised the good
potential of the Fogo coffee, organically grown on the volcanic soils of the Island. In order to
revive and upgrade the coffee sector on Fogo, Trabocca will form a joint venture company
with the local company Capital Consulting on Fogo. Both partners, together with the Fogo
Coffee Association will invest in new coffee processing equipment, train the farmers on
organic coffee production, extend the acreage of coffee plantations and create an
international specialty market for the Fogo coffee. In future, part of the coffee will be roasted
locally in order to satisfy the local market with real Fogo coffee. It is the intention of the
project partners to make Fogo people proud again of their own product.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishing the joint venture.
Installation of all equipment.
Training of farmers and employees.
Production and sales.
Page 25 of 279
CSR aspects
The CSR policy of the mother company of Trabocca, Sunopta, will be adapted for the joint
venture. The joint venture will only produce certified organic coffee, guaranteeing a premium
price for the farmers and saving the local environment.
Impact
Long term economic
activity
Additional investments will include the expansion of the area
under coffee trees. Later on this will result in a necessary
increase of the number of wet mills and storage facilities.
Investments in trainings and technical assistance will continue
in order to ensure the desired high quality. The joint venture
partners will also invest in roasting equipment in order to be
able to satisfy the local and the tourist market in Cape Verde
with real Fogo coffee.
Employment and
working conditions
The joint venture will employ 2 high-level managers,
3 medium-level agronomist, technician and bookkeeper and
4 basic-level processing mill workers, one coffee nursery
keeper and one general service person. This number of 11 fulltime employees will increase to 22 in the two years after the
project.
The project will generate a lot of indirect seasonal employment
at the coffee growing level, this will amount to three workers
per coffee farmer, totalling 300 seasonal workers.
The company will pay salaries 5-10% higher than the normal
wages on Fogo, salaries will range between € 100 and € 600
per month. In addition, employees will benefit from fringe
benefits like transport, insurances and pension contributions.
Good working conditions will be ensured by adhering to the
CSR policy of the company.
The project will introduce the washed coffee technology in Cape
Verde, as well as the knowledge on organic farming and
organic certification procedures. This could benefit them also
for their other products and in maintaining soil fertility.
Chain effects
The coffee farmers will benefit most by the revival of the
currently sleeping coffee industry on Fogo. They will have
secure access to premium prices for their coffee beans.
Neighbouring farmers currently not producing coffee will quickly
join FCA as they see the benefits and quick results of the
project. The current coffee farmers who have shifted part of
their land to other crops will soon realise that they can make
more income out of growing premium coffee and start planting
additional coffee trees. Maintaining the fertility of the farmer
land will also benefit the other crops of the farmers. As stated
before, every farmer will need the services of at least three
employees during harvesting time, generating seasonal
employment for 300 people.
A long term contract will be made with a transport company to
transport the coffee from Fogo to Praia and finally to
destinations around the world.
Page 26 of 279
Currently, cheap coffee is imported in Cape Verde for the local
market and even repacked as Fogo coffee by a local
entrepreneur to sell to tourists visiting Cape Verde. The local
market and the tourists will benefit in future from the good
quality roasted real Fogo coffee.
Environment
The project will have a positive impact on the local environment
by introducing organic production principles on the Island. The
eco-pulpers use and discharge very little water during the
processing of the beans. The small amount of discharged water
will be filtered and cleaned. The organic discharge and the pulp
will be used to produce compost for the farmers to be used as
organic fertilisers.
Position of women
At least 30% of the 11 employees will be female, as well as
2 out of 5 high- and medium-level employees. Most of the 300
seasonal indirect employees to be recruited at farm level for
coffee weeding, harvesting, etc will be women.
Other impact
The project will provide a vehicle for the coffee farmers'
children to attend school without having to walk long distances
down and up the mountain, ensuring they arrive at school on
time and still fresh, which should have an impact on the way
they attend school.
More information:
http://www.trabocca.com/
http://www.capital-consulting.net/
Page 27 of 279
Cape Verde
PSI11/CV/21
Integrated vegetable, flower & fruit tree production
Location
Praia
Sector
Horticulture
Applicant
Agriom B.V., De Kwakel, The Netherlands
Local partner
Flor de Lakakan SA, Praia, Cape Verde
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
To set up an integrated vegetable, flower and fruit tree production facility using adapted but
sustainable modern technology for direct marketing on the Island Santiago of Cape Verde.
Abstract
Cape Verde has a serious shortage of vegetables, fruits and flowers, resulting in high prices
and food deficiencies.
In restaurants the shortage can be easily recognised by taking a closer look at the menu
throughout the year. Only the top end hotel restaurants will invest in more variation of their
menu by importing expensive vegetables and fruits from Europe and Brazil. Flowers are
being imported from the Netherlands.
The local production of vegetables depends on the season, is not always the best quality,
does not follow the regulations of hygiene and food safety and can not satisfy the demand of
the market. This provides a good market opportunity for this project to start a company to
produce high quality, GlobalGAP certified vegetables and flowers for the hotel and restaurant
market on the island of Santiago in order to replace imports.
The company will produce year-round in plastic greenhouses on substrate and will use the
effluent water, rich in minerals, to irrigate a fruit tree nursery. The joint venture company
Floriom will be formed by the Dutch horticultural development company Agriom B.V. and the
Cape Verdean company Flor de Lakakan SA. Flor de Lakakan is already producing and selling
ornamental plants, trees and shrubs and doing the landscaping and the maintenance of
gardens of Governmental institutions, hotels and restaurants. The company will start working
with three outgrowers for the production of some flowers for the bouquet production line.
The latter will be extended once the concept has been proven.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Page 28 of 279
Project inception.
Construction phase.
Establishment of 50% of production capacity.
Establishment of 100% production capacity and outgrower scheme.
Turnover achieved, certification, marketing results and follow-up business plan
developed.
CSR aspects
GlobalGAP certification will be obtained and salary and working conditions in the joint
venture will be based on the standards of Agriom. The joint venture will make its own CSR
policy containing all working conditions and fringe benefits.
Impact
Long term economic
activity
The production capacity will be doubled in the two years after
PSI by investing in its own farm production and in the increase
of the number of outgrowers, once this scheme proves to be
successful.
Employment and
working conditions
The joint venture will employ 11 medium- and high-level
employees and 20 basic-level workers. This will increase to 20
and 40 employees respectively in the two years after
completion of the project. The company will invest in its
employees in order to maintain them by offering education and
training opportunities, good salaries and other benefits.
Salaries will be 15% higher than the normal wages on Santiago
and fringe benefits will be according to its CSR policy.
The knowledge transfer on vegetable production according to
GlobalGAP principles is new to Cape Verde, as well as the
trainings of employees and outgrowers on flower production.
The production of substrate from volcanic sources is also new
and will stimulate a new industry.
Chain effects
The project will set new standards for quality production of
flowers, vegetables and fruit trees. It will have a positive
impact on the three flower production outgrowers, giving the
example to others. Floriom will actively promote this for smallscale farmers accessible technology of substrate production in
small greenhouses. Using locally sourced substrate material
may become a new business challenge for Cape Verde. The
project will have a beneficial impact on the macro economy of
Cape Verde by replacing import of these agricultural products.
Environment
The impact on the environment will be positive. On macro level
as the products will be grown in Cape Verde in stead of flown
in. The recycling of the waste water for fruit tree fertigation is
an innovation leading to more sustainable horticulture, less
water use and less ground water pollution. The use of locally
sourced substrate from volcanic inert material is favourable in
terms of water use and example of saving fertile soil for other
purposes. However, with the use of this volcanic material there
is also a risk involved in unsustainable extraction. However, in
this case the company doing the mining has already obtained
the permit from the local environmental authorities. Working
with greenhouses reduces the risks of pests and diseases in the
crops, decreasing the need for pest management with
chemicals. The company will work according to the GlobalGAP
principles.
Position of women
At least 30% of the employees and of the management staff
Page 29 of 279
will be female. Also, the director and owner of Flor de Lakakan
is female and would like to stimulate women to play a front
runner's role in society.
Other impact
More information:
http://www.agriom.nl/
Page 30 of 279
The promotion of the planting of fruit trees by FAO and NGOs
will have a positive impact on the diet of especially rural school
children.
PSIP11/CD/02
An agricultural service centre and outgrowers
programme in the DR Congo
Location
Malambwe (50 km north of Lubumbashi)
Sector
Agriculture
Applicant
GoCongo Enterprises Ltd, Isle of Man
Local partner
GoCongo Enterprises SPRL, Lubumbashi, DR Congo
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To establish a commercially operated agricultural service centre that facilitates storage, cold
storage, drying, milling and pressing of locally grown agricultural produce in order to make
year round supply to the local food market possible, and which supports the development of
at least 100 local smallholder farmers.
Abstract
The province of Katanga in the south of DR Congo is known for its natural resources that are
currently exploited by various mining companies. The agricultural sector however, is hardly
developed. Almost all fruit and vegetables are imported from South Africa, Tanzania or
Zambia.
Mr Kersten Pucks is founder of a successful consultancy firm, and has decided to use his
resources to develop the agricultural sector in and around Lubumbashi. For this purpose he
established GoCongo Enterprises Ltd on the Isle of Man, which basically serves as an
investment vehicle through which his personal funds are channelled to the local entity
GoCongo Enterprises Sprl in Lubumbashi.
In 2008 a project site was selected and a 60 ha farm has been established. As the long term
vision is to grow to a 400 ha farm, the company feels the need to invest in proper drying,
milling, seed pressing and (cold) storage capacity for its agricultural produce.
Next to developing its own farm, the company is also providing assistance to neighbouring
smallholder farmers by giving free agricultural training courses. In order to help develop
these farmers, a service centre will be established in which farmers can buy agricultural
inputs, buy or hire agricultural equipment and sell their produce (either directly, or through
GoCongo). As they expect a lot of smallholder farmers to copy the example of the GoCongo
nucleus farm, the drying, milling, seed pressing and (cold) storage facilities will also be made
available to third parties. A network of at least 100 outgrowers will be established. In the
long run, GoCongo wants to serve as an agricultural service centre for the entire region.
The project is located in Malambwe, some 50 km north of Lubumbashi.
Page 31 of 279
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Legal establishment of the agricultural service centre.
Service centre constructed and procurement of equipment.
Training of management and employees of the centre and outgrower training.
Operational phase.
CSR aspects
GoCongo Enterprises has developed an extensive CSR policy already. The general business
principles cover human rights, labour standards, the environment, business integrity and the
responsibilities of GoCongo towards its customers, employees, business partners and local
communities.
Next to developing the farm and its marketing activities, the company is involved in a wide
range of CSR activities. A CSR manager has been appointed and is taking care of health &
safety, primary education (3 classes of 35 children each), professional training (especially
agricultural education: 60 neighbouring farmers enrolled so far), literacy courses,
kindergarten and a community development programme. Most of these services are free of
charge, or charge a modest contribution. GoCongo will expand on these activities during the
project implementation.
It is GoCongo's explicit goal to help local people develop their own farms as well. This has
already started through provision of free agricultural education by professional agronomists,
and will be continued by including at least 100 outgrowers and making the drying, milling,
pressing and storage facilities of this project available to these farmers.
In order to organise these farmers, the service centre will also offer space to farmers
associations. Representatives of these associations will form a steering committee which will
be invited to co-decide on the services GoCongo should be providing to the farmers.
Impact
Long term economic
activity
In the long run, the agricultural service centre is supposed to
become a full-fledged regional agricultural hub that provides
storage capacity as well as agricultural inputs and equipment
like fertiliser, irrigation systems, seeds and technical assistance.
Tractors and land labouring machines will be offered for rent as
well.
Initially however, follow-up investments will be done in doubling
the storage capacity (to 6,000 tons), additional trucks, irrigation
equipment, demonstration fields, trading hubs and agricultural
equipment.
Employment and
working conditions
27 people will be employed: 3 managers, 10 sales agents,
5 warehouse staff and 9 drivers and security guards (3 high,
15 medium and 9 basic skilled).
Two years later this is expected to grow to 103 people (9 high,
57 medium and 37 basic).
Employees will receive a salary and two meals a day which
together represents a value of about 60% above local minimum
wages.
Additionally, all employees will receive free medical care at the
farm, and (if needed and wanted) free housing on the farm.
The entire business opportunity in fact is new to the region. It
will enhance knowledge on agricultural production in general,
and on storage, drying and milling in particular.
Page 32 of 279
Chain effects
The most important chain effect is the effect on consumers. The
prices for agricultural products like potatoes, maize and onions
will come down because of the (future) year round availability
of these products, and because of the overall increase in
production, once storage facilities are available.
A second major effect is the impact on smallholder farmers.
Next to the agricultural training courses that have already been
given to more than 60 farmers, the farmers will benefit from all
other services that GoCongo will avail to them. Some of the
'graduates' of last year have already started successful own
businesses. Others have started working for GoCongo. Within
the PSI project, at least 100 outgrowers will be contracted.
Last of all, some 25 retailers are expected to benefit from this
project as well.
Environment
The impact on the environment will be neutral. The energy
efficiency of the cold stores will be optimised by taking proper
isolation measures.
Employees will be trained on good environmental practices in
order to minimise impact. As environmental impact
assessments are not (yet) institutionalised in DR Congo, an EIA
will not be conducted.
Position of women
The partners expect to employ 10 women (out of 27 employees
in total). Two of them will be in management positions.
Other impact
No other than the extensive CSR policy and social investments
already mentioned.
Page 33 of 279
PSIP11/CD/21
Cleaning up Kinshasa
Location
Kinshasa
Sector
Industry – other
Applicant
Mavilex, Wąbrzeźno, Poland
Local partner
Recyclon SPRL, Kinshasa, DR Congo
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
To establish an industrial processing plant for recycling polyethylene, with a daily capacity of
transforming 25 tons of waste into 16 tons of plastic granulate for the export market.
Abstract
Like many densely populated cities, Kinshasa has a huge waste collection and disposal
problem. Especially plastics are a major concern as they tend to clog up drains, sewerage
systems and other waterways. As such it facilitates the spread of malaria as water can easily
be trapped in plastic bottles and bags, where mosquitoes can breed.
Four individual Congolese businessmen decided to fight this problem and take on the
challenge to collect plastics and recycle it into granulated plastics which can be sold on the
international market for raw materials. They recently established Recyclon SPRL for this
purpose. This company is local partner in the project.
The applicant is Mavilex from Poland. This company recycles and produces all kinds of plastic
bags for the consumer market in Europe. As oil prices keep on rising, the demand for
recycled plastics grows. Looking at the current market prices, Mavilex believes it is worth the
investment to source plastic granulates from outside Europe.
Through a mutual business friend, Mr William Beeckman from BEXPO in Belgium, Mavilex
was introduced to the businessmen who established Recyclon. Together, the companies will
establish Congo’s first industrial processing factory for recycling of PE plastic bags.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishment of the joint venture.
Procurement and installation of all equipment.
Employees recruited and trained.
Operational phase.
CSR aspects
All employees will receive written contracts, social security benefits according to local
regulations, means of transportation when necessary and protective clothing when needed in
the factory.
Page 34 of 279
In the factory, all 8 team chefs will be trained to become in-house emergency officers.
With respect to withstanding corruption in DR Congo, the partners will follow all legal and tax
obligations as strictly as possible in order to prevent any basis for extortion or bribery by
officials.
Last of all, the partners will donate 1% of all project profits to a hospital that was established
by the Dikembe Mutombo Foundation. Dikembe Mutombo is a famous NBA Basketball player
with roots in Congo. Six years ago he established a USD 40 million hospital in Kinshasa in
which mainly children with malaria and typhus are treated.
Impact
Long term economic
activity
The partners intend to continue their collaboration once the PSI
project has ended. In fact, because of Mavilex' enormous need
for recycled plastics, the partners expect to triple the
production capacity after the PSI project has ended.
There are also plans to start up a factory for production of
plastic film and plastic bags.
Employment and
working conditions
82 Full-time employees will be employed. 65 Will be basic
skilled labour, and 17 medium to high skilled. Indirectly, 300
collectors will work for the collection depots. They will receive a
performance based salary.
Two years after the end of the project, 185 people will be
employed of which 156 basic skilled and 29 medium to high
skilled.
The lowest paid employees will receive a salary in accordance
with locally accepted minimum wages. At the end of the year,
all employees will receive a bonus if the production target of
that year has been met.
Working hours will respect applicable local law. Overtime will be
voluntarily and will be paid a premium rate. The partners will
provide social security benefits as per the Congolese Code de
Travail.
In the factory, a canteen with kitchen will be established for
daily meals. For night shifts, the employer will take care of
transport to and from the factory.
As an industrial plastic recycling factory is new to DR Congo, so
is the knowledge associated with it. All employees will receive
proper training in a modern commercial setting. This will
improve their position on the labour market in the future.
Chain effects
The major chain effect can be found on the supply side:
hundreds of waste collectors will have the opportunity to earn a
living by supplying to the collection depots of either this
project, UDD or RATPK. The company will train at least 300
collectors, but this number may very well increase rapidly as
soon as people find out that money can be earned with plastic
waste.
Apart from the waste collectors, it is expected that 6 transport
Page 35 of 279
companies will be working for the project.
The partners will also share their knowledge on plastic recycling
with RATPK and UDD. This may lead to other companies
following Recyclon's example.
Environment
This project will have a very positive effect on the environment
as plastic waste will be recycled instead of being burnt which
prevents toxic gases from polluting the air.
Furthermore, the collectors will sweep the streets to search for
plastics. In many places, plastic waste clogs up drains, gutters
or even entire waterways. In some places, plastics can even be
found 5 metres thick in the ground. The stagnant water is the
perfect breeding place for water based diseases. By cleaning up
this plastic waste, one source of these diseases can at least be
diminished.
Position of women
The partners strive to have 41% female staff in their project.
Four women will work at medium skilled level.
Other impact
The project will donate 1% of all profits to the Dikembe
Mutombo Foundation, which will be used to support the hospital
the foundation has established some time ago in Kinshasa.
The company will also award bonuses to the best collectors.
This will raise public awareness to improve recycling and to
clean up their neighbourhood.
More information:
http://www.mavilex.pl/
Page 36 of 279
Egypt
PSI11/EG/01
Developing comprehensive rehabilitation services
for children with chronic conditions in Alexandria
Location
Alexandria
Sector
Medical
Applicant
HEAP Research B.V., Abcoude, The Netherlands
Local partner
Medigroup Ltd, Cairo, Egypt
Third partner
Prof. Tarek Omar, Alexandria, Egypt
Start project
01 August 2011
End project
01 February 2014
Total budget
Goal of the project
To set up a private clinic in Egypt for the rehabilitation of children with chronic conditions
with a capacity of approximately 1,000 children per year.
Abstract
Local partner Medigroup is originally a company specialised in the production and sales of
physiotherapy equipment and physiotherapy support services to public and private medical
practices in Egypt and other markets. Since 2006, Medigroup has become involved as a
service provider in Egypt. Therefore, they set out to provide an environment where this is
possible and combine this with the best health–care to patients.
In 2007 it therefore set up the Hayat Care Centre in Alexandria together with a number of
local physicians. The choice was made to set up a rehabilitation centre to meet the unmet
treatment needs to adults. After the Hayat Care Centre opened in early 2010, it was faced
with requests for rehabilitation services for children. An integrated approach was missing in
other service providers and hospitals and the best possible care was therefore lacking.
The Dutch partner HEAP Research B.V. was met during an MMF visit and the initiative was
discussed and worked out to establish the rehabilitation unit for children, providing various
treatments to children with special needs.
Third member of the consortium is Professor Tarek Omar. Professor Tarek Omar is a
Professor of Paediatrics and Paediatric Neurology at Alexandria University and has his own
private practice in Alexandria.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Joint venture established.
Building renovated and equipment installed.
Establishing patient stream and business development executed.
Page 37 of 279
CSR aspects
The joint venture is committed to employing women, which is very common in Egyptian
health care. Salaries will be 10% above market rates and participation in a health care plan
will be standard.
Impact
Long term economic
activity
Follow-up investments will be made to increase the capacity by
50%.
Employment and
working conditions
At the end of the project 23 full-time employees will be
employed.
17 Will be high-level health professionals.
In addition 5 physicians will be working at the centre on a fee
for service basis.
Two years after the PSI project the amount of employees will
be 35.
Wages will be based on standards worked out per type of
professional. Added to this will be a 10% increase in line with
the CSR policy.
As there are no rehabilitation services for children with chronic
conditions, the knowledge transfer provided during the project
is new for Egypt.
The process will entail training, technical assistance and
management support of a group of 23 health professionals.
These will learn new treatment techniques, as well as
management techniques to run the clinic.
Environment
The impact on the environment will be neutral. Professor Tarek
Omar already has a waste management procedure for medical
supplies which the new clinic will also make use of. With regard
to the discard of medical waste, the joint venture will make use
of the waste management programme of the Hayat Care
Centre.
Other impact
The clinic will work closely with Alexandria University. Not only
in the training of staff but where possible also to allow students
at this university to learn skills with regard to the treatment of
children with chronic conditions.
Page 38 of 279
Egypt
PSI11/EG/21
Stand-alone toolshop and test centre for thin walled
injection moulds
Location
6th of October district (30 km from the centre of Cairo)
Sector
Industry
Applicant
Gereedschappenfabriek Van den Brink B.V., Harskamp,
The Netherlands
Local partner
International Engineering Union, 6th October City, Egypt
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
To set up a toolshop for the refurbishment of moulds for injection moulding companies in
Egypt.
Abstract
Applicant Van den Brink and International Engineering Union (IEU) from Egypt plan to set up
a toolshop for refurbishment of complex injection moulds.
The Egyptian plastic packaging industry for thin walled containers is a well developed
market. The mould making and refurbishment of moulds is however still underdeveloped.
This means that Egyptian moulders have to rely on oversee toolshops for refurbishment of
moulds which need repair.
Van den Brink produces and refurbishes moulds for the (thin walled) packaging industry. The
company has customers world-wide. For the production of thin walled packaging material
fast running long life moulds are important. Van den Brink is able to provide these moulds.
From the design to the production Van den Brink is able to assist and supply the demands of
the moulder. All moulds and machine parts are manufactured and tested by Van den Brink.
Van den Brink furthermore supplies and designs the automation of moulding machines.
International Engineering Union is a family owned business specialised in injection moulding.
Its main business is the production of thin walled containers and it furthermore produces drip
irrigation components as well as cosmetic containers (which are made of thicker plastic) and
custom moulding. Through a sister company IEU also supplies moulding machines to the
local market.
The two companies will set up a joint venture to refurbish moulds for Egyptian injection
moulding companies. In the future also new moulds could be produced.
Results
• Result 1 : Joint venture established.
• Result 2 : Toolshop and test facility operational.
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• Result 3 : Recruitment and training of personnel and staff.
• Result 4 : ISO 9001 certification.
• Result 5 : Business development.
CSR aspects
Good working conditions and the proper training will be provided as well as the needed
safety requirement. In order to secure this ISO 9001 certification will be acquired.
Impact
Long term economic
activity
Experiences during the PSI project will determine the exact
follow-up investments but investments in a 5-axle grinding
machine and a big service grinder are considered.
This equipment is required to manufacture bigger and more
complex thin walled injection moulds.
Given the financial position of the companies involved the
follow-up investments seem realistic.
Employment and
working conditions
Main impact will be determined by the training given to staff
and the above average wages paid.
The required knowledge to maintain and refurbish and even
built complex injection moulds is not present in Egypt at this
time.
Chain effects
Local injection moulders will be able to have their moulds
refurbished at considerably lower costs and less down time
than in the present situation.
The knowledge and skills the joint venture will possess is
however not something which will be shared directly with other
companies but IEU now already works with interns and plan to
do this in the joint venture too. Furthermore through the
membership of IEU of the Egyptian Plastic Federation and other
organisations such as the Egyptian Federation of Industries
their experiences will be shared with other companies.
Other impact
Local injection moulders will be able to have their moulds
refurbished at considerably lower costs and less down time
than in the present situation.
Furthermore through the membership of IEU of the Egyptian
Plastic Federation and other organisations such as the Egyptian
Federation of Industries their experiences will be shared with
other companies.
Page 40 of 279
Ethiopia
PSI11/ET/01
Sustainable high yield castor oil production in a
desert area
Location
Dire Dawa, Somali Region
Sector
Agriculture
Applicant
Busoco B.V., Schiedam, The Netherlands
Local partner
Agropeace Bio Ethiopia PLC, Addis Ababa, Ethiopia
Third partner
Agropeace Bio Ltd, Tel Mond, Israel
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
Establishment of a 225 ha castor oil plantation and a crude oil facility with a daily capacity of
5 tons castor oil for export purposes.
Abstract
Castor oil has a unique chemical structure, making it valuable oil for more than 500 industrial
applications, amongst others in the lubricants, pharmaceutical, chemical, cosmetics, paper,
plastics, and electronics industries. The worldwide demand for castor oil is rising structurally,
creating an attractive business opportunity.
The Dutch applicant Busoco B.V. is one of the major shareholders in the Israeli company
Agropeace Bio Ltd. Its daughter company Agropeace Bio Ethiopia Plc. has proven to be able
to realise a sustainable yield of 6 tons per hectare on a trial farm in a desert area in the
Somali Region in Ethiopia. The company will use this trial results to start a sustainable castor
farm on commercial scale of 225 ha, producing 675 tons of extracted castor oil per year. For
that purpose advanced Israeli agricultural technology will be used. It will create 144 jobs in a
region where no other companies are active.
The project will make available water and family drip irrigation systems to the local seminomad population and train them how to grow vegetables and fruits in a desert area. Two
years after the project, the farm will be expanded to 2,225 ha, creating 1,340 direct jobs.
The project will make the desert green, following the Cramer criteria for sustainable largescale plantations.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Baseline study regarding CSR and environmental aspects.
Castor plantation established and oil mill installed.
Pilot production.
Completion of the project.
Page 41 of 279
CSR aspects
The Applicant has good working conditions in his company. Agropeace Bio Ethiopia has
established very good salary, fringe benefits and working conditions at the trial farm and
invests actively in a sound relationship with the surrounding communities, authorities and
the Agricultural University in Dire Dawa. The production will be as much as possible
according to the Cramer criteria. A baseline study will be done and an environmental impact
assessment has been conducted already. The company will work according to integrated crop
management and pest control guidelines. A CSR policy of the company will be drafted and
the company will work according to the Ethical Trade Initiative base code.
Impact
Long term economic
activity
The project partners will expand the farm with 1,000 ha in year
one and another 1,000 ha in year two after the project. Once
the company is in production, banks have indicated to be
willing to provide loans on basis of the produced castor oil as
assets. But currently, they regard the risk too big in Ethiopia
and especially in the Somali Region of Ethiopia.
Employment and
working conditions
Agropeace Bio Ethiopia will employ 34 people on medium- and
high-level and 110 persons on basic-level. This will increase to
140 and 1,200 respectively in the two years after PSI. It will
pay salaries at least 50% higher as according to the proposal,
but at the start of the project the company already pays 90%
above the minimum wage of the Government employees, set in
February 2011. Working conditions and fringe benefits will be
very good as the company is following the ETI base code.
The following part of the knowledge is new for Ethiopia:
• Knowledge about turning a desert area into fertile arable
land, using subterranean drip irrigation.
• Knowledge about realising a yield of 6 tons per hectare
(6 times the world average) by means of a tailor-made
agricultural approach.
• Knowledge on mechanical harvesting of castor beans and on
the oil extraction process.
Chain effects
The impact on the region will be significant, as the farm will be
based in the Somali region with hardly any alternative job
opportunities for the nomad population.
In the trial farm the company has managed to win the
confidence of the employees, the heads of the clans and the
Authorities by accomplishing what they promise. But also by
supplying water without limitation to the people, who travel 2530 km to fill their jerrycans. Adjacent to the farm some families
have been taught how to grow vegetables and fruits with a
family drip irrigation system. For crop rotation purposes, 20%
of the farm land will be used for growing food crops.
It will be the first commercial company to start using the
railroad to Djibouti again after its recent renovation. Once
proven successful, others will follow, making the railway
company more profitable and having less impact on the
environment as compared to the road transport.
Page 42 of 279
Environment
The impact on the environment will be positive, as a (semi-)
desert area will be turned green. An EIA has been conducted
already, showing that the associated risks are low. The
company will work according to the Cramer Criteria for large
plantations of bio fuels, despite the fact that the valuable castor
oil will not be sold as a bio fuel. There is no competition with
food crops, or even the contrary as the company will start
growing food crops for rotation purposes and teach the
interested semi-nomads how to grow food with family drip
irrigation.
The company will work according to integrated crop and pest
management principles. According to several independent
hydrological studies the availability of water at a depth of
150 m is abundant. There is hardly any vegetation in the area,
so there will be no loss of biodiversity. The nomads do not use
the area, except for some camel tracks along the railroad,
which can continue to be used in future as well. Castor plants
are non edible, so there is no need to fence the farm land.
Position of women
The company will employ 50% female workers on all levels.
Other impact
The company cooperates with the Haramaya University in Dire
Dawa in the field of agricultural research, seed selection,
fertilising strategies and pest control. The University will supply
trainees for internships at the plantation. As stated before, the
company will provide drinking water for the local communities
(half nomads) and their animals.
Page 43 of 279
Ethiopia
PSI11/ET/03
Growing and processing raisin tomato in Tigray
Location
Mohoni city, Tigray
Sector
Horticulture: vegetable production
Applicant
Cohen Brothers Ltd, Rishon-Lezion, Israel
Local partner
Romtom Agri plc, Addis Ababa, Ethiopia
Start project
01 July 2011
End project
30 November 2013
Total budget
Goal of the project
Establishment of a raisin tomato plantation and a raisin tomato drying facility.
Abstract
The annual dried tomatoes market worldwide is estimated to be about € 150 million, with a
production of 44,000 tons. Major part of this production are the traditional dried tomatoes,
produced by adding salt or sulphur to dehydrate the cut tomatoes. Over the last 15 years a
new method of drying tomatoes was developed in the USA: the "oven dry" dried tomatoes.
For this process the tomatoes still need to be cut and passed through ovens at 170°C.
The Ethiopian company Romtom Agri plc holds the exclusivity rights for the production in
Ethiopia and the sales of self-dehydrating raisin tomatoes. It has the advantage that in order
to produce the dried tomato with 18% moisture content, there is no need to cut the tomato,
no additives are needed and it only needs a oven at 40°C. The company will start the first
commercial production site in Ethiopia together with the Israeli applicant company Cohen
Brothers Ltd. The latter will take care of the marketing and sales of the dried raisin
tomatoes. The project will invest in a raisin tomato plantation near Mohoni in the Tigray
Page 44 of 279
Region. This is a remote area 150 km south of Mekele, where hardly any foreign investments
are taking place. The project will create employment for 186 people and will contract two
outgrowers. The company will be certified GlobalGAP, ISO 9001, BRC and Kosher in order to
assure sustainable and food safe production as well as corporate social policies. Within two
years after the project, the company will be doubled in size.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Set up of joint venture.
Tomato plantation and drying plant established.
Pilot production.
Project completion.
CSR aspects
The joint venture will develop its own CSR policy, conduct a EIA and implement all
recommendations and obtain ISO 9001, BRC, GlobalGAP, IFA and Kosher certifications. The
joint venture will follow the Ethical Trade Initiative (ETI) base code, guaranteeing the basic
working conditions. A healthy and safe working place is guaranteed. It will be an equal
opportunities employer. Discrimination on whatever ground will not be tolerated. Chain
responsibility will be assured also towards the outgrowers. It will not enter in corruption.
Environmental management will be strict. The rights of the local population will be respected,
the obtained land has never been used for agriculture.
Impact
Long term economic
activity
In the two years after the project’s completion, the raisin
tomato plantation will be doubled in size. Also, the size of the
outgrowers’ fields will be expanded to 3 ha each, followed later
on with expansion of the number of outgrowers. In the long
run, the company will work towards a 40/60% ratio of own
production and production by outgrowers.
Employment and
working conditions
The company will employ 186 full-time employees of which 16
at high- and medium-level. This will grow to 365 people of
which 29 at high- and medium-level. Wages will at least be
25% above the local minimum, following the ETI base code. In
addition, the personnel will receive transport to the farm,
housing allowances, reimbursement of medical expenditures,
free medical check up, small size loans if needed, subsidised
lunch, work clothes, access to training and education, literacy
education for employees and their family members, access to a
HIV/AIDS prevention and family planning programme. If
possible in the region, a small store will be opened to sell
subsidised basic items like teff, beans, tomatoes paste and
soap.
The following parts of the knowledge transfer are new for the
country:
• Dry and semi dry fruit and vegetable production and
processing.
• Self-dehydrating tomatoes and the processes behind it. The
agronomists and the St Mary’s College at Mekele will receive
the knowledge.
Page 45 of 279
• A drier processing factory which optimally uses natural
sunlight heat by capturing it in the innovative roof
construction.
• Natural drying process.
• Outgrower training in raisin tomato growing.
• Zero-chemical packaging.
The local farmers can benefit from the obtained knowledge in
improving their own agricultural production.
Chain effects
The project will start to work with two outgrowers on 0.1 ha,
both would need 2-3 workers to assist them. In the two years
after the project the size of their fields will be increased to 6 ha
in total, needing nearly 100 people for planting, weed control
and harvesting. On the long run the number of outgrowers will
be increased. For that purpose, the project will organise two
farmer fields days for 25 farmers in order to train them already
in the use of modern agricultural technologies and start
building a relationship. The arrangements with the outgrowers
will be defined in the outgrower contracts.
The introduction of modern agro technologies in the Region will
open up the option for local subsistence farmers to enter in
cash crop production, for instance of spices and herbs.
Introducing the innovative drying technology will also give
ideas for others to start drying of fruits, herbs or other
vegetables.
The project will generate employment for local subcontractors
as transport companies, suppliers of fertilisers and
agrochemicals, packaging materials, food, fuel, accounting
services, etc.
Environment
The project will have a neutral impact on the environment. In
order to minimise risks and negative effects, an environmental
impact assessment will be conducted and its recommendations
implemented. In order to minimise water consumption a
modern, computerised drip fertigation system will be used. It
will install a monitoring system, which reports daily to the local
agronomists and weekly to the experts in Israel. The joint
venture will be GlobalGAP certified, assuring a responsible use
of fertilisers and agrochemicals. By using a net greenhouse,
95% of the insects will be prevented to enter the crop area,
drastically reducing the need for pesticides and almost
eliminating the risks associated with virus infestations. In case
spraying is needed, the company will use self moving spraying
machines using small droplets, covering both sides of the
leaves. This will reduce the usage of fungicides, while
increasing efficiency of the fumigation and decreases the
exposure of the employees to chemicals. By using mulching
technology it reduces the need for herbicides and the
transpiration of water.
Overall, dried raisin tomatoes is an environmentally friendly
alternative to classic dried tomatoes by not adding salt, sulphur
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or other chemicals and by reducing the energy for the drying
process.
Position of women
At least 65% of the workforce will be women. Ten out of the 16
management positions will be for women, for instance the local
agronomist, manager of the drier facility but also in the
administrative positions.
Other impact
The company plans to introduce a family drip irrigation system
to be established at 5 to 10 locations in nearly villages in order
to raise the standards of agricultural methods of production.
It will work together with St. Mary's Agricultural College in
Mekele for knowledge transfer and traineeships.
Page 47 of 279
Ethiopia
PSI11/ET/04
Establishment of a sustainable supply chain for
industrial bamboo products
Location
Addis Ababa and Ambo Province
Sector
Woodworking sector
Applicant
Elephant Bambusprodukte GmbH, Bremen, Germany
Local partner
Fortune Enterprise PLC, Addis Ababa, Ethiopia
Start project
01 July 2011
End project
31 December 2013
Total budget
Goal of the project
To establish a profitable business by producing and exporting high-value decking and panels
made from bamboo sustainable produced by outgrowers.
Abstract
Ethiopia has the largest bamboo resources in Africa (1 million ha). Nevertheless, the
contribution of the sector to the national economy is still very low. So far, the value chain is
not linked to the national market and engagement in bamboo export trade is non-existent.
The applicant Elephant Bambusprodukte GmbH, a German company specialised in the
development and sales of innovative products made of bamboo, and local partner Fortune
Enterprise Plc, a wood and metal furniture manufacturing company in Addis Ababa, propose
to establish a sustainable supply chain of industrial bamboo products in cooperation with
outgrowers.
The two partners will establish a joint venture in Addis Ababa, invest in collection centres and
a pre-processing plant near the bamboo forests and a factory producing compressed bamboo
("Cobam") panels and outdoor decking in Addis Ababa. Cobam provides a good alternative
for the use of hardwood species, as such the company will diminish the pressure on tropical
forests.
The joint venture will be certified for Social Accountability, ISO 9001 and ISO 14000 and
employ 95 staff. The company will enter into a supply agreement with four bamboo
cooperatives, training 1,860 farmers and 70 harvesters in sustainable bamboo forest
management practices. The sustainability will be audited by the regional office of the
International Network for Bamboo and Rattan INBAR.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Page 48 of 279
Business foundation.
Outgrower scheme established.
Pre-processing plant and factory established.
Business development and certification.
CSR aspects
The partners will devote considerable effort to integrate CSR in the project. It will develop a
CSR policy for the joint venture company. It's strategy of sourcing the bamboo through an
outgrower scheme is explicitly designed to contribute to rural poverty alleviation. All details
of the arrangements with the cooperatives will be included in the contracts. The joint venture
company will be certified for ISO 9001, ISO 14000 and Social Accountability. For the latter,
they will either choose Ethical Trading Initiative or Fair for Life. On environmental
performance, it will be certified ISO 14001:2004. The sustainable bamboo forest
management will be certified by INBAR.
Impact
Long term economic
activity
The project partners want to increase the annual production
output of the main factory by running two shifts from 2015
onwards. Therefore, investments are needed to establish new
outgrower schemes in Bale district, establishment of another
pre-processing centre and extra wood working machines. Also,
the partners will invest in their own bamboo plantation, it is in
the process of securing a concession of 1,000 ha degraded land
for that purpose. However, harvesting can only start from year
4 or 5 onwards. For the local market, it wants to invest in a 6
m long hot press to be able to produce 6 m long beams for the
construction sector. Totally, the partners will invest at least
€ 1.5 million in the two years after the project's completion.
Later on, the partners want to become self-sufficient in their
energy supply by investing in a combined heat & power unit
using the bamboo waste as biomass.
Employment and
working conditions
At the end of the project the joint venture will employ 95 staff
on a full-time basis, of which 20 on high- and medium-level.
Two years after the project this will increase to 182 employees,
of which 34 of medium- and high-level.
The salaries the company will pay for unskilled labour are at
least twice as much as the current minimum average wages
and can certainly be regarded as living wages. It plans to pay
€ 40 per month for unskilled labour and at least € 50 for skilled
production staff in the rural areas and € 50 for unskilled staff in
Addis Ababa. The staff will receive working clothes, safety
shoes and glasses twice a year. In addition, the staff can enjoy
a meal in the canteen, medical costs will be paid for by the
company, as well as 6% pension allowance. In the country side
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it will provide free transport to certain collection points and
transport allowance in Addis.
New knowledge will be transferred in sustainable bamboo forest
management and harvesting and in industrial processing of
bamboo into high-value compressed bamboo products. Other
farmers can benefit from this new knowledge on forest
management by increasing the production of their own bamboo
plots even for traditional uses.
Chain effects
Parties that will directly benefit from the project are the
farmers (land owners) and bamboo harvesters who will be
involved in the supply chain of the joint venture. At least 1,866
farmers will yearly benefit from a guaranteed market for their
bamboo culms. Currently they use the bamboo for own
construction or occasionally they sell some culms on the
market. Every farmer has an average of 0.5 ha of bamboo
forest, from which sustainably 500 culms can be harvested per
year, meaning an additional revenue stream of € 160 a year
per farmer, whilst he can focus on other activities. The impact
for the two villages together is an income of nearly € 300,000
per year. In addition, the 70 harvesters will receive an income
of € 1,523 per season, which is an income far above living
wages. Contracts will be made with the four cooperatives,
which will also receive Birr 0.5 per culm for the administration
costs as all payments will be transferred through the MFI bank
accounts of the cooperatives. These coops will also be trained
intensively to be able to fulfil their task on a transparent way.
An internal and external control system is already in place with
the cooperatives, imposed upon by the Government. After the
project, the number of participating farmers will increase to
3,700 and the number of indirectly employed harvesters to
140.
Other two long-term beneficiaries are the two micro-enterprises
which will be established and have a contract with the joint
venture; one for catering of food in Addis Ababa and one for
the production of pallets. Transport companies will be hired for
the transport from the pre-processing facility to the factory in
Addis Ababa and the transport of finished products from the
factory to the port of Djibouti three times a week.
Environment
The project will have at least a neutral impact on the
environment, at international level even a positive impact. The
project will introduce more Cobam products on the
international market, decreasing a little bit the pressure on the
still existing tropical forests by providing an alternative for
tropical hard woods. Locally in Ethiopia, the project will
introduce sustainable bamboo forest management. As a result
the existing forest will start to yield more and thicker bamboo
shoots and the forest will extend itself. While currently many
farmers unknowingly harvest the younger stems, resulting in
an impoverishment of the bamboo forest, as the culm will yield
Page 50 of 279
less and thinner new stems. The sustainability of the forest
management will be independently audited by the Regional
Office of the International Network for Bamboo and Rattan
INBAR.
The joint venture will transform the bamboo by using
environmentally sound processing techniques. An
environmental impact assessment will be conducted before the
start of the project to be able to incorporate the results in the
lay out of the pre-processing plant and factory. However, it is
already planned for to construct a waste water treatment pond
at the pre-processing facility, as the carbonisers take out a lot
of starch which enriches the water with sugar. After treatment
this starch can be used as a fertiliser for the bamboo forests.
The factory will use phenol formaldehyde glue, as there is
currently not a technically proven alternative available.
However, the mixing of the glue will take place in a closed
surrounding, without any employees having direct contact. The
soaking of the bamboo fibers in the glue will be done by a
crane, also to minimise the direct contact. The most dangerous
activity is the heating of the bamboo with the glue, as the
formaldehyde gas will then partly escape from the fibers.
However that will take place in a special tunnel dryer with a
special filter. Production will be done according to the strict
European norms for zero emission of formaldehyde E1 and
CARB ½ for the USA.
It’s operations will be certified ISO 14001, a management tool
which allow continuous improvements of the company’s
environmental performance.
Position of women
About 40% of the total workforce will be women, mainly in
accounting, administration, purchasing, quality control, loading
of the hot press tablet and cleaning. Women will be encouraged
to apply for all positions.
Page 51 of 279
Ethiopia
PSI11/ET/05
Ethiopian Ballooning
Location
Addis Ababa, Nechisar National Park, Bahir Dar and Lalibela
Sector
Tourism
Applicant
Sky Promotions B.V., Tilburg, The Netherlands
Local partner
Rotterdam General Trading PLC, Addis Ababa, Ethiopia
Start project
15 July 2011
End project
31 December 2013
Total budget
€ 504,000 (50% PSI contribution = € 252,000
Goal of the project
Establish Ethiopia's first ballooning operator, with a flight capacity of 3,250 clients a year.
Abstract
The tourism industry in Ethiopia in showing a steady growth. As the country clearly benefits
from it, tourism has become a featured component of Ethiopia's Poverty Reduction Strategy
Paper. In order to remain attractive for tourists, Ethiopia should come up with new appealing
activities. Hot air balloon flights are doing very well in countries like Kenya and Tanzania,
especially in the areas of the National Parks. Ethiopia has similar areas, like Nechisar national
park, but can also offer balloon flights on top of the Blue Nile falls. The Dutch Applicant
company Sky Promotions B.V. under the trade name Virgin Balloon Flights will start a joint
venture company with the Ethiopian company Rotterdam General Trading PLC. This company
will be the first ballooning operator in Ethiopia, generating employment for 31 people. In
addition it will train the officers of regulatory authorities on strict safety measures for the
ballooning industry and set up a regulatory framework together with the Civil Aviation
Authorities in Ethiopia.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Legal and administrative structure established.
First balloon operational.
Staff and regulatory authorities trained.
Second and third balloon operational.
Joint venture is fully operational.
CSR aspects
The joint venture will define its own CSR policy based on the CSR policy of the Applicant. All
balloons and side equipment will comply with international safety, health and environmental
regulations. An Environmental Impact Assessment will be implemented and a landing
protocol defined with the local communities or land owners. The regulatory authorities will be
trained on the regulatory framework. The joint venture will provide good working conditions
and fringe benefits for its employees. Their suppliers will be checked on their policy on
working conditions, environment and abstinence of child and forced labour.
Page 52 of 279
Impact
Long term economic
activity
In the two years after PSI, the two partners expect to invest in
three additional balloons, vehicles, a small lodge or balloon
centre and additional trainings and marketing, as the pilot scale
capacity will have reached its full potential at the end of the
project.
Employment and
working conditions
The company will employ 16 full-time people, of which 5 highlevel, 7 medium-level and 4 basic-level. In addition, 15 people
will be employed as medium-level freelancers as part of the
ground crew, they will work at least 200 days a year at the end
of the project. The salary level is high, ranging between € 300
a month for the ground staff and € 1,500 for the pilot, including
5 flights. For every additional flight the pilot will receive € 250.
Freelance ground staff will receive € 5 per day. Working
conditions will be good, including lodging expenses, 24
holidays, payment for overtime, strict safety and health
regulations.
All technical and safety knowledge and skills on hot air
ballooning are new to the country. Balloon marketing concepts
also apply for other tourist industries, so employees could take
advantage of that.
Chain effects
The project will have a positive impact on the tourism chain in
Ethiopia. International tour operators can make a more
attractive travel programme for their clients. Ethiopian travel
agencies can attract more travellers to their offices with the
sales of the balloon flights, making it easier also to sell their
other travel programmes. It will have a positive effect on the
occupancy rates of lodges and restaurants in cities like Arba
Minch or Bahir Dar. Similar to the car rental companies as for
every flight a minibus will be rented to transport the clients.
The joint venture will use the services of a catering company
for the food and drinks for their passengers and staff. The car
maintenance shop will have quite some work, as the trucks
have to drive in heavy terrain. The joint venture will set the
regulatory framework, making it easier for others to start as
well.
Environment
The joint venture will conduct an environmental impact
assessment prior to the start of the project. However, the risk
for the environment of this project is negligible. On the
contrary, it will attract more tourists to the National Park
Nechisar, bringing additional income for the park, enabling it to
finance its park management. The joint venture will only fly
bigger balloons, 8-16 passengers, decreasing the air pollution
per passenger caused by the balloon and the chase car. The
joint venture will take proper care of the recycling of the waste
materials.
Position of women
Five of the 16 staff members will be women. Also part of the
freelance ground staff will be women, enabling women from
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remote rural areas to find employment.
Other impact
Five percent of the profit will be invested in social projects in
and around the areas of operation.
More information:
http://www.abyssiniaballooning.com/
Page 54 of 279
Ethiopia
PSI11/ET/21
Tahini production facility with sesame outgrower
scheme
Location
Benishangul and Addis Ababa
Sector
Agro processing
Applicant
Prince Tahina Ltd, Eilaboon, Israel
Local partner
C.G.F. Business Group PLC, Addis Ababa, Ethiopia
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
Establish a tahini production factory in Addis Ababa and a sesame outgrower scheme of
3,000 farmers in the region of Benishangul-Gumuz.
Abstract
Ethiopia is well known as a producer of the good quality sesame seed from the Humera
region.
However, most of the sesame is exported without adding much value. Sesame can be used
to produce a type of paste used for cooking, called tahini.
Currently, no tahini is produced in Ethiopia. While, especially in Israel and the USA, there is a
big demand for good quality tahini. This is currently being produced in Israel by the company
Prince Tahina Ltd, which is sourcing 95% of their sesame from Ethiopia, partly from their
partner C.G.F. Business Group Plc. The latter has its own sesame farm, producing certified
organic sesame and is sourcing sesame from Humera and Benishangul for export purposes.
Both project partners want to seize on this market opportunity by establishing a tahini
production factory around Addis Ababa and a sesame outgrower scheme in BenishangulGumuz. It will contract 3,000 farmers, 150 lead farmers, 41 full-time employees and 20 daily
labourers.
The joint venture company will acquire GlobalGAP, HACCP, BRC and Kosher certifications that
will guarantee the highest product and process standards and sales to multinational clients.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Business foundation and project inception.
Establishing tahini processing facility.
Recruitment and training of staff.
Establishment of outgrower scheme.
Business development.
CSR aspects
Both companies have no CSR policy yet. Prince will formulate one during Result 1. The
company is certified according to Kosher, GMP, BRC, Canada Organic, ISO 9001:2008 and
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organic certifications, which strongly indicates its level of professionalism, environmental
care and social responsibility.
Employees of CGF currently receive high salaries as compared to other companies in Ethiopia
(minimum of 1,500 birr, while governmental minimum is 440 birr). The factory will be
certified Kosher, GlobalGAP, BRC and HACCP and in future the outgrowers will be certified
organic as well. They will supervise their outgrowers on child labour.
Impact
Long term economic
activity
The production will be doubled in the two years after PSI. In
that case also the amount of outgrowers need to be increased.
Employment and
working conditions
The company will employ 20 people on medium- and high-level
and 33 on basic-level. Salaries are a number of times the
minimum level as set by the government. The company will
provide free transport, lunch, health insurance, protective
clothing, health and safety requirements.
The good quality, certified tahini production part will be new to
the country.
Chain effects
The 3,000 farmers will be trained to produce good and certified
quality and achieve higher production levels. They will have a
secured market with always better prices than via the ECX.
Their farmers' organisation will be strengthened, bringing
benefits also on other levels. In future the project will train the
farmers also on organic production, bringing even more
benefits. The Ethiopian trade balance will benefit of the export
of a product with added value.
Environment
An EIA will be implemented. The companies' agronomists will
monitor the levels of fertilisers and pesticides which farmers
could use. The factory will be implemented according to the
latest dry hulling technology in order to improve quality and
minimise water use.
Position of women
At management level the company will engage 50% women;
on production level one third will be female employees.
More information:
http://www.princetahina.com/
http://www.cgfbg.com/
Page 56 of 279
Ethiopia
PSI11/ET/23
Industrial baltena and injera sauce production
Location
Addis Ababa
Sector
(Luxury) foods
Applicant
Day Star Business Group Inc., Acworth, GA, USA
Local partner
AG Transit PLC, Addis Ababa, Ethiopia
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
Production of traditional Ethiopian foods, 200,000 kg baltena products (processed Ethiopian
spices and agricultural products) and 100,000 kg injera sauces, for export to the USA.
Abstract
There are two reasons for setting up this project on traditional Ethiopian food (ingredients).
Firstly, is the fact that the quality of the baltena products in Ethiopia currently is unreliable in
terms of food safety, and the working conditions of production itself are not in accordance
with international standards. Secondly, there is an existing demand for baltena by the
Ethiopian Diaspora in North America, while the canned injera sauces (comparable with pasta
sauces) is a totally new product for which market will be developed.
The factory will be located in Addis Ababa. All raw materials will be supplied by independent
farmers from the regions around Addis.
Applicant Day Star Business Group Inc is based in the USA. Local partner is AG Transit Plc.
They will set up a joint venture.
The project is interesting for PSI because it is introducing a new process and product to
Ethiopia. The first is the introduction of a baltena production process that meets ISO 22000
and HACCP standards. The second is modern production of canned Ethiopian convenience
foods (wots), which is a completely new product worldwide, that meets ISO 22000 and
HACCP standards.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Set-up of the joint venture.
Project development and architectural drawings.
Production facility ready and fully equipped.
Pilot production and training of employees.
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CSR aspects
The project will be HACCP/ISO 22000 certified, which will guarantee safety and health as well
as environmental and human resource management issues to be at high levels. In addition,
the joint venture will develop a CSR policy of its own that will cover issues like employee
participation, personnel policy, waste disposal, rights of local population, quality throughout
the value chain, human rights and corruption.
Impact
Long term economic
activity
The planned follow-up investment will amount to € 500,000.
These will take place within two years after project completion
in order to double the production capacities of the baltena and
sauce production. Annual turnover 2 years after project
completion is expected to almost double to € 1.5 million, to be
realised through expansion of the quantities and type of
products. The structure of the partnership is not intended to
alter after project completion.
Employment and
working conditions
The number of employees at the end of the project is 113:
101 basic-level jobs and 12 medium-/high-level jobs.
Two years after the end of the project a total number of
208 people will be employed: 189 basic-level jobs and 19
medium-/high-level jobs.
A number of 15 employees will be hired on the basis of flexible
contracts, not full-time. Salaries are above local level. In
addition, fringe benefits will include: reimbursement of medical
costs, transport to and from the factory, subsidised lunch.
Good working conditions will be laid down in the human
resource policy, while health and safety and other labour
standards are included in their CSR policy and ISO / HACCP
requirements.
Semi-industrial production of canned injera sauces is entirely
new to the country, therefore new knowledge and skills relate
to: modular production lines, food technology and food safety,
quality insurance, ISO 22000 / HACCP knowledge for food
production. Therefore, the project will contribute to higher
levels of knowledge and skills in the country.
Chain effects
The joint venture will work with 20 farmer unions to source
their cereals, pulses, vegetables and root crops. These farmers
and their farmer unions will benefit from support through the
project and be supplied with better inputs, training and TA to
raise the quality, quantity and continuity of their production.
The outgrowers scheme is planned to be put in contracts. In
addition 25 local suppliers will provide the joint venture with
ingredients (like salt and preserving agents), packaging
material, accounting services, logistics services, and machine
maintenance.
Environment
The environmental impact is neutral and the risks of the project
for the environment is very limited. The company will not use
chemicals or other hazardous materials. Waste is limited and
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will be carefully planned for. In addition, the ISO / HACCP
standards will also require responsible environmental
management, which will also be included in the CSR policy of
the joint venture.
Position of women
Approximately 80% of the workforce will be women,
throughout the organisation from high-level to basic-level
functions.
Other impact
The owner of Day Star is the initiator of the foundation called
the Good Shepherd. The aim of this organisation is to offer job
opportunities to underprivileged women, in many cases former
prostitutes. They are given job opportunities to develop skills
and become economically self-sufficient in the long run. The
experience of this project will also feed into the PSI project and
vice-versa.
Page 59 of 279
Ethiopia
PSI11/ET/24
Quality linseed production with small-holder
farmers
Location
Doba – Arsi Zone – Oromia
Sector
Agriculture
Applicant
Van de Bilt Zaden en Vlas B.V., Sluiskil, The Netherlands
Local partner
Solagrow PLC, Hidi – Debre Zeit, Ethiopia
Start project
01 January 2012
End project
31 December 2014
Total budget
Goal of the project
To create a sustainable linseed market chain in Ethiopia with 300 outgrowers, based on a
complete crop rotation scheme of linseed, seed potatoes and vegetables.
Abstract
Ethiopia has hundred thousands of farmers annually producing 84,000 tons of linseed for oil
purposes for the local food market. The production per hectare, however, is relatively low,
due to poor seed quality, poor tillage practices and lack of crop rotation. The lack of crop
rotation is also a general problem hampering all companies working with outgrowers in
Ethiopia. These farmers tend to use the same piece of land for the same high value cash crop
continuously, resulting in lower production levels and all types of pests and diseases. This
project will work on both mentioned problems at the same time. The business to be
established, is described as the creation of the linseed market chain, starting from the
introduction of advanced flax varieties up to the export and domestic sales of the produced
linseed, embedded in a permanent outgrower system based on sustainable crop rotation with
seed potatoes and vegetables. The investment comprises the proper training of the
outgrowers on a complete crop rotation scheme, providing them with small-scale
mechanisation and the establishment of seed cleaning facilities. As such, the local linseed
market will be strengthened, obviating the need for import of linseed oil and creating the
possibility to earn foreign currency by exporting linseeds. At the same time the project will
improve the farming systems of the contract farmers by maintaining and improving the soil
fertility and by diversifying the income source. For this purpose, the Applicant Van de Bilt
Zaden en Vlas B.V. will invest in a long term cooperation with their Ethiopian partner
Solagrow PLC.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Page 60 of 279
Preparation of collaboration agreements.
Establishment of the basic propagation farm.
Training on linseed production technology.
Setting up of outgrowers network and seed cleaning.
Production of linseed for export & dissemination of results.
CSR aspects
Both partners have a good reputation in general, but also on CSR. Van de Bilt has no written
CSR policy yet, but will formulate one. Van de Bilt has very few turnover of employees and
has received the certificate of "Hofleverancier" a few years ago. Solagrow is well known in
Ethiopia of its good CSR practices, for instance the good quality clinic it established at its
premises for its employees and all people of the surrounding villages. But also the way it has
established a system to keep their salaries at pace with the sometimes high inflation in
Ethiopia, is an example for other companies. The same principles will be applied in this
project.
Impact
Long term economic
activity
In the first two years investments are needed in additional field
machinery to assist the farmers in soil tillage and in additional
capacity of seed cleaning equipment. The area of linseed
production will increase from 275 ha to 675 ha in year 4 and
1,200 ha in year 5.
Employment and
working conditions
The company will employ 76 people on medium- and high-level
and 517 on basic-level. This will increase to 194 and 1366
respectively in the two years after PSI. The working and
employment conditions are very good at Solagrow and will
remain so.
The knowledge and technology transfer to the farmers on the
crop protocol of linseed is new for the country. The current
problems of low and deteriorating production levels and
increase of pests are caused by neglecting the crop protocol
and giving priority to other, theoretically better yielding crops.
Also the knowledge on proper storage after harvesting is new,
as is the knowledge on crop rotation. As part of the PPP
between Ethiopia and the Netherlands on oil seeds, trials have
been done on the effect of crop rotation on the yield of grains
and linseed by WUR, Biersteker Consultancy, the Ethiopian
Agricultural Research Institute and the Dutch Product Board for
Margarines, Fats and Oils, clearly showing the huge benefits of
crop rotation in terms of total yield level, soil fertility and oil
content of linseed seeds. The next knowledge gap is found on
the investment in machinery for proper seed bed preparation.
The project will provide access to the adequate tools of
mechanisation and seed cleaning to the farmers, without the
need to invest in this type of hardware themselves. Further,
the project will invest in teaching the outgrowers the benefits
of cooperating in associations. The latter is not new for the
country, but is still very weak in most places.
Chain effects
The impact on the chain will be very significant. First of all, the
impact on the 300 (and future 750) outgrowers will be very
big. On average one contract farmer will have additional profit
of around € 75 per hectare only for the linseed. For the entire
year of 3 crops the additional profit will be around € 200 per
hectare. An average outgrower will have 0.5 ha. This means
that the impact in the community will be an increased income
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of € 30,000 at the last year of the project and € 75,000 two
years after the project. In addition, the introduction of the crop
rotation systems means a way out of the negative cycle of
diminishing crops for these farmers.
Other beneficiaries of the project include input suppliers of
fertilisers, bags, rope and fuel, the transport sector and the oil
millers in Ethiopia.
Environment
The impact will be positive. The farmers will be taught how to
produce higher quantities of better products, but using less
pesticides and fertilisers as compared to the current situation.
The policy of Solagrow is not to use any chemical biocides as
long as the causal agent can be controlled with other means
and kept under the economic threshold. The introduction of
proper crop rotation will reduce the risk of depletion of the soil
of the farmer fields.
Position of women
On management level one third of the employees will be female
overall 45% will be women. Women will also benefit through
the construction of the health post, which also functions as a
maternity clinic.
Other impact
A health post will be constructed and operated by the company,
to provide basic preventive and curative health to the
employees and the neighbouring community. Also drinking
water will be provided to the community free of charge. At the
current location of Solagrow, as a result 2 to 3 young men have
started selling drinking water at their villages with donkey
carts, reducing the burden of women to walk for hours.
Page 62 of 279
The Gambia
PSI11/GM/01
Integrated Outgrower Poultry Project
Location
Farato
Sector
Agriculture
Applicant
Pas Reform B.V., Zeddam, The Netherlands
Local partner
Emholding, Kotu, The Gambia
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To introduce integrated poultry production in The Gambia to produce and commercialise
20,000 broilers per week.
Abstract
The project partners, Pas Reform and Emholding, will establish a high quality integrated
poultry production facility with hatchery and slaughterhouse and will include an outgrower
programme composing of 100 women's groups for breeding broiler chicks. The project will
produce 20,000 good quality, slaughtered and packed chickens per week. It will create 38
direct jobs and an extra income for hundreds of women through the outgrowers programme.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Hatchery constructed, recruitment and training of employees.
Outgrowers trained and outgrower programme established.
Slaughterhouse constructed, recruitment and training of employees.
Operational phase.
CSR aspects
The project will employ 38 full-time employees. All of them will receive official labour
contracts and good and safe working conditions.
Initially 15 employees, or 39% of the total workforce, are expected to be female. For these
women separate washing and praying facilities will be available.
The women's outgrower groups will receive contracts guaranteeing good prices and secured
outlet for the grown broilers. Furthermore, outgrowers will not only be trained in the
responsibly growing of chicks, but also in environmental issues, health and safety
precautions and HIV/AIDS.
Animal welfare is another important CSR aspect of the project. This aspect is interrelated
with product quality. Outgrowers are required to establish broiler houses which are safe,
covered, and will provide enough space for the broilers. The broiler houses will host a
maximum of 10 broilers per square meter, a number that equals standards for biological
chickens in the Netherlands. Poultry slaughtering in the Gambia is still done manually and
Page 63 of 279
this project will be the first European standard slaughterhouse with humane treatment of the
animals to EU standards in The Gambia. Furthermore, long-distance transportation of chicks
will no longer be necessary.
Impact
Long term economic
activity
In the two years following the project's completion the project
partners will double production capacity. They will invest in new
hatchery equipment, expand the outgrower programme and
expand the slaughter line. More importantly, the partners will
set up their own parent stock farm in order to avoid importing
eggs. After the project's completion, the partners wish to
increase the production capacity from 20,000 to 50,000
chickens a week.
Employment and
working conditions
The project will employ 38 full-time employees. All employees
will receive training on health and safety at work. Safety
equipment include safety clothing and steel gloves for the
employees working in the slaughterhouse and warm clothing
for those working in the refrigerated packing area. In addition
all employees will receive training on the prevention of
HIV/AIDS. All employees will receive continuous training on the
job.
The project envisages extensive training on technical
management of hatchery and slaughter, and hundreds of
female outgrowers will be trained in responsible broiler
breeding. Knowledge that is rare in the Gambia. The Gambia
can start to develop its poultry sector with a qualified labour
force.
Chain effects
The entire Gambian poultry sector is expected to benefit from
the project as it is can serve as an example for the production
of high quality, integrated poultry production and reduces
dependency on imports.
Environment
In general, poultry, which has a relatively high feed conversion
rate, is an environmentally efficient source of animal protein.
Considerably less agricultural land and water reserves are
therefore needed for its production than for other sorts of
meat. Also, poultry produces a lot less waste in the form of
manure. More specifically the project makes use of state of the
art production equipment from renowned suppliers. The
hatchery equipment in particular disposes over a highly
efficient heat management system that reduces energy
consumption to a minimum. Naturally, also the refrigeration
areas will be very well isolated. For all operations, employees
will receive environmental training to create awareness on
efficiency, reducing resource consumption and limiting pollution
and waste. For the collection of its waste the joint venture will
sign a contract with a professional local company.
Position of women
Initially 39% of the total workforce is expected to be female.
Therefore, separate washing and praying facilities will be made
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available.
The outgrower programme will have a very positive impact on
women in a wide area around Farato. An estimated number of
100 women's groups (with an average of 10 members) will be
contracted by the project partners. The partners expect every
female outgrower participating in the project to earn
approximately € 5 a week, even more than 1.5 times the
official minimum wage in the Gambia. The project will thus give
the female outgrowers the opportunity to generate a stable
income, provide them with valuable knowledge, make them
more independent and alleviate poverty in their families.
Other impact
EMHOLDING has already been sponsoring different sports and
youth development projects and has positive experience with it.
The project will be involved in sponsoring these kinds of
activities.
Page 65 of 279
Ghana
PSI11/GH/01
Fair trade organic ISO 22000 compliant palm
oil for export
Location
Abaam, Eastern Region
Sector
Agri processing
Applicant
Dr Bronner's Magic Soaps Inc., Escondido,
United States of America
Local partner
Serendipalm Company Limited, Abofu Achimota – Accra, Ghana
Third partner
Danieama Women Organic Palm Oil Association, Asoum, Ghana
Start project
01 July 2011
End project
31 December 2014
Total budget
Goal of the project
To establish an ISO 22000 compliant palm oil mill for the production of fair trade Organic
(FTO) Palm Oil for export to Food Manufacturers in the EU and USA (1,160 tons CPO and
231 tons PKO).
Abstract
Applicant Dr Bronner's Magic Soaps (USA) will start a company with an innovative medium
size mill for producing Fair Trade and Organic (FTO) and ISO 22000 certified Crude Palm Oil
(CPO) and Palm Kernel Oil (PKO). This project will give the partners access to the edible FTO
palm oil market. The WACAPOL Mill that will be located in a village nearby Asoum (Abaam) is
innovative. It fills the gap between large scale centralised industrial mills (that use the fruits
from large scale plantations) and the local small scale artisanal mills. About 400 farmers will
be delivering to the mill. A minimum of 91 staff will be employed, and in the follow-up phase
(second mill), this number will be doubled.
Results
• Result 1 : Joint venture and factory design.
• Result 2 : Hardware installation and training of staff.
• Result 3 : commercial production and ISO, FTO and IMO certification.
CSR aspects
As a fair trade project, the proposed project includes many aspects of CSR by design. The
joint venture is put in charge of ensuring fair conditions along the entire supply chain:
farmers, farm workers, mill workers all benefit from fair prices, wages and working
conditions. The projects will be FTO and IMO certified.
Page 66 of 279
Impact
Long term economic
activity
The follow-up investments will consist of installing more mills
and recruiting and certifying additional numbers of outgrowers
in adjacent regions. Additional extension services and training
are required to familiarise the new outgrowers with FTO
certification and ISO 22000 standards and increase yields.
Employment and
working conditions
The total number of staff will be 91. Two years after the end of
the PSI project, the total number of staff is expected to be
doubled. In addition, there will be the need for seasonal parttime workers during the peak season of February-June.
All staff directly employed by the new joint venture will work
under the requirements outlined by IMO's Fair for Life
certification programme.
In addition, all employees will be offered fringe benefits, such
as free meals, national health insurance, financial support for
school uniforms, shoes and notebook for children of staff.
The key element of knowledge transfer in this project is the
operation and demonstration of an efficient, cost effective,
modern managed medium scale palm oil mill.
In the extension services and field training courses, offered to
oil palm outgrowers, emphasis will be placed on the
minimisation of the environmental impact of cultivation in
combination with the maximisation of the economic benefits.
Furthermore, outgrowers will be trained in compliance with FTO
standards.
Chain effects
The new joint venture will contract 400 outgrowers , who will
benefit directly from a 15% FTO premium and larger volume
sales and/or a secured market. New varieties/cultivars of oil
palm and/or new cultivation practices may result in higher
levels of palm fruit yields.
This project will attract local suppliers and service companies in
the area of packaging, ICT services, financial services, tools
and materials, clothing & safety supplies, but also local
transportation. Another important SME that will profit are the
small scale tree nurseries to deliver improved oil palm varieties
to the farmers.
Environment
Since the joint venture operations will be FTO certified, the
impact on the environment is probable to be positive. The
efficient mill will offer increased resource efficiency. Palm
kernel waste will be used as organic fertiliser.
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Position of women
Women manually cleaning palm fruits at Daniema, Asuom
About 65% of the employees will be women, which is very high
for a country where not many women have official jobs and
work contracts.
Other impact
The joint selection and implementation of fair trade (social)
projects, funded by the FT premium (15%), benefits the
local/regional community as a whole.
Producers and processors of other crops in the region may also
seek FTO certification for their produce in response to the
improved prices being offered to the organic oil palm growers.
This could have additional benefits on the environment if this
leads to increased sustainability via increased efficiency in
resource use or through reduced levels of waste.
More information:
http://www.drbronner.com/
Page 68 of 279
Kenya
PSI11/KE/22
H2ollandwater for sustainable irrigation dosing
units in Kenya
Location
Naivasha
Sector
Agriculture (horticulture)
Applicant
C & J Bosman B.V., Aalsmeer, The Netherlands
Local partner
Bosman Engineering Kenya Ltd, Naivasha, Kenya
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To set up local assembling and distribution of high-end irrigation dosing units using cyclone
technology, combined with an advisory service for integrated water management and climate
control in Kenya and surrounding countries.
Abstract
The Kenya floriculture and horticulture sectors are amongst the most important agribusiness
sectors in the country in terms of domestic employment and income generation. The sectors
are characterised by relatively high capital investments in irrigation, both in greenhouses for
the production of flowers and increasingly also in open fields for vegetable production for
export markets.
Over the last few years it has become abundantly clear that the long term sustainability of
these production systems, to an important extent depends on the optimisation of water use.
Not only as a result of environmental concerns in Kenya and in consumer markets abroad,
but also for reasons of cost efficiency and quality of production. This project will address
these concerns by setting up a local assembling and distribution facility for high-end market
dosing units and related equipment (e.g. UV systems).
The project's innovation is pegged on the introduction of cyclone technology and the local
manufacturing of dosing units. In addition, through cooperation with Hoogendoorn B.V. as a
technical partner the project will be able to design and advise upon more integrated
technology packages that combine water management, climate control technologies and
production advice.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Preparation phase.
Construction phase.
Operational phase.
Marketing and sales phase.
Page 69 of 279
Impact
Employment and
working conditions
During the project 28 staff will be employed (11 are women).
All employees will earn slightly above the wage level for similar
positions elsewhere in the sector. They are also entitled to
secondary benefits like pension fund, vacation leave, overtime
payment, etc. Safety at work will be guaranteed by sound
working conditions and protective clothing.
Although most of the training will be on-the-job, it is expected
that know-ledge transfer will be high, the local assembling of
dosing units will involve special skills. The project's products
and the suppliers of parts are all operating in the higher
segment of the market.
Chain effects
The project will use a good number of suppliers of local
materials and components. On the demand side the impact of
the project on the sector is expected to be significant, as it
introduces more sustainable irrigation and water management
technologies into the market.
Environment
The project is by design geared towards more sustainable
water management, reduction of fertiliser use and higher
production levels per hectare.
More information:
http://www.bosmanbv.nl/
Page 70 of 279
Madagascar
PSI11/MG/01
Sea cucumber farming
Location
Toliara
Sector
Fish culture
Applicant
Madagascar Seafood SAS, Paris, France
Local partner
Copefrito SA, Toliara, Madagascar
Third partner
Madagascar Holothurie SA, Toliara, Madagascar
Start project
01 July 2011
End project
31 December 2011
Total budget
Goal of the project
To establish the first community based commercial sea cucumber cultivation and processing
facility to produce 5 tons of organic trepang annually.
Abstract
The Toliara region used to be rich in sea cucumber. This sea fruit feeds on dead and decaying
organic material, algae and plankton and cleans the seawater. Holothuria Scabra is one of
the most valuable sorts, as it is broadly used for human consumption in China. The growing
demand from the Far East and the high prices have lead to over harvesting in Madagascar. If
this trend continues, the Toliara region will become depleted. The quantity of sea cucumber
already dropped from 600 tons per annum in 1990 to 40 tons in 2009. Over the past ten
years the shareholders of the local partner Copefrito and the third partner Madagascar
Holothurie SA (university of Toliara and two Belgium universities) have undertaken research
in improved reproduction, cultivation and sustainable management of the sea cucumber
population. Also sea cucumber farming trials are being done with the aim to develop
commercial aquaculture of the sort Holothuria Scabra, taking into consideration the
preservation of its natural stock.
Together with the Applicant Madagascar Seafood SAS, the partners want to establish a joint
venture to set up a sea cucumber hatchery, nursery, farming activity and processing facility
to and employ and train 140 staff members. In the processing facility dried and processed
organic sea cucumber (trepang) will be produced for export to Asia. Moreover, the project
partners will collaborate with over 300 small fishermen in neighbouring village communities,
to support their sustainable sea cucumber farming. Farmers will be supplied with input
materials and additional knowledge. By buying their produce, the joint venture will guarantee
them a steady and fair income, while diminishing the pressure on the natural stock of sea
cucumber in the region.
Results
• Result 1 : Business foundation.
• Result 2 : Sea cucumber farming facilities established.
• Result 3 : Cooperative scheme operation.
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• Result 4 : Processing facility operational.
• Result 5 : Business development and certification.
CSR aspects
Despite the fact that the partners would like to obtain it, it is not possible to get an organic
certification for Holothuria production. Neither a MSC certificate applies for aquaculture. The
certificate which will be obtained is HACCP for the processing facility.
The joint venture will pay at least 30% above the minimum salary, provide pension and
health insurance. Moreover, if necessary, they will help the fishermen village to stock stores
with basic needs. Moreover trainings will be given to fisher communities on environment
conservation, HIV/AIDS, health, hygiene and family planning. Also an extensive outgrowers
programme is set up.
Impact
Long term economic
activity
Upon successful completion of the PSI project, the joint venture
will expand its activities to more villages. The additional
investment will be in extension of the hatchery, the nursery,
new sea farms and processing facilities.
Employment and
working conditions
At the end of the PSI project 92 basic-level jobs and
48 medium-/high-level jobs are created. At the end of the spinoff phase this will have grown to 144 basic-level jobs and
69 medium-/high-level jobs. The employees will at least earn
130% of the minimum salary. Safe and healthy working
conditions are ensured. Also transport and daily lunches are
provided. Scholarships are given to most successful students
and a common fund for employees will be put in place for
family health problems.
The project injects new knowledge on responsible sea
cucumber aquaculture methods among fish farmer and their
direct employees. The University of Toliara will be involved to
share this knowledge and do research on the joint venture
practises. Special training is also provided on hygiene for
HACCP certification. At fishermen village level, training on
preservation of natural resources will be of high importance.
Chain effects
The main impact of the project is the inclusion of coastal
communities.
The joint venture will start with the participation of
300 fishermen, while in the spin-off this can grow to 750. The
initial outgrowers schemes will be set up in close collaboration
with two NGOs. Pre-financing and training will be made
available.
Environment
Sea cucumbers are vital organisms that sustain the equilibrium
of coastal ecosystems They clean the sediment of the sea by
eating various organic debris. The project will combat the
depletion of sea cucumbers in the Malachi sea, since collectors
will be stimulated not to collect from the wild, but to go into
controlled aquaculture. Moreover the sea cucumber aquaculture
will restock the sea with larva's. In the sea farm, the Holothuria
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adults will reproduce according to the natural process. Since
the sea farm has an open connection with the sea, the current
will spread the larva's to other parts of the sea.
An EIA will be done in Result 1. Throughout the whole process
no chemical substances are used. Therefore, the Holothuria
production will be organic. However, it is not possible to get a
certification for this for this specific product. For electricity use
the partners will also install solar panels.
The local branch of WWF issued a letter of support for this PSI
project.
Also the partners will work with local authorities and the
governments on environmental issues.
Position of women
The joint venture will employ at least 40 women, this is 29% of
the total workforce. The work in the sea farm will mainly be
done by men, because this is tough work.
Other impact
The project will decreases pressure on fishing in lagoons,
because fishermen will be offered another alternative for their
primary income. Furthermore their will be a close collaboration
with the University of Toliara.
More information:
http://madagascarseafood.com/
http://www.copefrito.com/
Page 73 of 279
Madagascar
PSI11/MG/02
Solar energy systems to supply productive power
via Smart Grids for rural development
Location
Andavadoaka
Sector
Renewable energy
Applicant
The Sun Factory B.V., Amsterdam, The Netherlands
Local partner
BushProof SARL, Antananarivo, Madagascar
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
Setting up a solar park with an Independent Power Provider (IPP) status for the annual sales
of 224 kWh in the rural fisher village Andavadoaka and providing energy utility services in for
the sales and maintenance of one to two solar plants per year to other IPPs.
Abstract
With 5%, the rural electricity rate in Madagascar is very low. Prices for electricity are
between 100% and 400% of the European prices. By supplying a complete (currently nonelectrified) rural village with solar energy, a solid base of demand of energy is assured to
ensure return on investments. The project will generate energy through solar modules and
will distribute this through an innovative smart grid directly to its customers. This will
increase efficiency and will guarantee that the supply and demand is optimally balanced. The
smart grid will manage energy distribution, prepayment of electricity and offers accounting
software.
An independent Power Producer (IPP) will be established by the Dutch Applicant The Sun
Factory (TSF) and the local partner BushProof, to act as a vehicle for the distribution of solar
energy in the fishermen village Andavadoaka. This will increase business opportunities for
the village. Also a sales and maintenance organisation that sells, installs and maintains large
solar plants and smart grids to other IPPs will be set up.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establish office and workshop and procurement of hardware.
Staff hired and trained.
Business roll-out.
CSR aspects
The solar energy project will reduce CO2 emissions. The joint venture commits itself to offer
equal opportunities for people in the company, independent of gender, origin, culture and
age. In Result 1 a CSR policy will be developed. Also collaboration with a University will be
organised to transfer knowledge.
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Impact
Long term economic
activity
The follow-up investments will be done in the set up of a new
rural solar park. It is also likely that the capacity of the solar
plant in the fisher village Andavadoake needs to be increased.
Therefore, an extra solar line can be installed.
Employment and
working conditions
The project will create 10 medium-/high-level positions and
4 basic-level. In the spin-off phase this will be increased to
18 medium-/high-level positions and 10 basic-level.
A lot of attention will be given to safety aspects in terms of
training and equipment. Specific hazard measures will be
taken, especially for working with batteries (acid, heavy loads,
etc). Protective clothes and lifting equipment for heavy loads
will be provided. Working conditions will be according
internationally accepted levels. Wages will be at least 200% of
the minimum loan. Service engineers can earn bonuses on top
of their normal wages. Working hours will follow national
legislation of 6 days per week or less. Staff will be properly paid
for over hours. Medical insurance will be provided, training on
health and preservatives will be made available.
High level technical knowledge of large scale solar systems is
new for Madagascar as well as of smart grid technologies.
Designing, engineering, installation and maintenance will also
be of importance.
Chain effects
By providing the possibility to customers to buy solar plants the
impact of the project will go beyond the joint venture's own
solar park. It is expected that 10 indirect jobs are created at
this level and will be trained by the joint venture.
Environment
Electricity through solar solutions will replace traditional
sources of energy as petrol fuelled lamps and the use of
generators. It will diminish the emissions of carbon and
releases the pressure on the environment.
Position of women
Electrification can have positive impact on women, for it
creates better health conditions in houses where kerosene
lamps and candles are used.
Other impact
Collaboration with a local university will be established in the
field of solar engineering.
More information:
http://www.thesunfactory.info/
http://www.bushproof-madagascar.com/
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Madagascar
PSI11/MG/21
Masoandro
Location
Port-Bergé – Sofia Region
Sector
Energy / Environment
Applicant
Vimap GmbH, Berlin, Germany
Local partner
Egedec, Antananarivo, Madagascar
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
The project will facilitate access to electricity in the region of Port Bergé by the set-up of a
grid connected power plant generating 450,000 KWh per year and of ten 'kiosks' (hubs
providing electricity services and products) in rural areas.
Abstract
The current electricity supply in the region of Port Bergé is problematic. The national utility
company Jirama is the only supplier and they can only provide energy six hours per day to
900 of the 1,500 existing households. The supply in rural areas is very rudimental, people
obtaining light, phone charging, TV and radio access by using candles, (car) batteries and
kerosene. This project will bring a change for both the urban and the rural population. The
urban region will be served by setting up a 450,000 kWh/ year plant which will provide
electricity to Jirama. The rural region will be reached by setting up 10 kiosks, which will
serve as hubs of sustainable energy services and information for farmers. The kiosks will be
set up in cooperation with local entrepreneurs using a franchise-like construction and will
offer. One kiosk is expected to serve 300 households. The assortment provided by each kiosk
will be customised to local needs and will comprise services such as mobile phone charging,
LED lamp leasing and recharging, internet access, printing and scanning services etc. The
hubs will also service as information centres for farmers. The project as a whole will employ
28 people, out of which 22 will be women.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Installation of the equipment.
28 employees recruited and trained.
Operational phase.
CSR aspects
The joint venture is making great efforts to integrate CSR in their activities. They provide
good working conditions, including remuneration at 310% of the legal minimum wage, a
social security package, voluntary and appropriately paid overtime. The joint venture will
discourage discrimination, will respect the freedom of employees to organise, will pay great
emphasis to work safety, will encourage social dialogue and employment development.
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Further they will have a zero tolerance stand towards corruption. The project will have a
positive impact on the environment by reducing the use of polluting energy sources and by
encouraging local communities to join their environmental awareness sessions.
Impact
Long term economic
activity
The follow-up investments consist of the expansion of the
power plant capacity to 1,5 MWp and the set up of twenty more
kiosks.
Employment and
working conditions
The joint venture will employ 28 people at the end of the PSI
phase and 76 two years later. They will offer salaries at 310%
of the minimum salaries, provide written contracts in
accordance with local legislation, medical insurance and a
pension scheme. The company will be rigorous on work safety
and will highly encourage social dialogue and employee
participation.
Given the innovativeness of the SPSS and the expertise of
Yunicos, new knowledge on state of the art solar systems will
be brought to Madagascar. Training of the kiosk operators will
bring technical knowledge on solar products, ICT, marketing
and sales to the rural areas. The environmental awareness
trainings open to the communities as well bring knowledge on
this topic to rural areas.
Chain effects
The electricity of supply to Jirama will lead to more stable
supply of electricity and water which creates new opportunities
for small businesses and households. The sustainable energy
hubs will enhance access to information and energy, bringing
new business opportunities to the rural area.
Environment
Since the project contributes to reducing the use of kerosene,
oil and other polluting energy sources, it will have a positive
effect on the environment. Another consequence of a lower use
of fossil fuels is a reduction in CO2 emissions.
Position of women
22 out of the 28 employees will be women, most of them
holding medium-level positions. One of the managers of the
project will also be a woman.
Other impact
Because the use of solar energy by households replaces the use
of kerosene and candles, it will lead to an improvement in the
health of households, especially young children (no more
dangerous gasses and no risk of burning).
Page 77 of 279
Madagascar
PSI11/MG/23
Low-cost wireless internet and digital TV
Location
Antsirabé and Tamatave
Sector
Services / ICT
Applicant
Standard Telecom Ltd, Port Louis, Republic of Mauritius
Local partner
Gulfsat, Antananarivo, Madagascar
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
Providing low cost wireless internet access and digital television packages to 6,300
customers in Antsirabé and Tamatave.
Abstract
The market for internet and TV connection in Madagascar is currently almost inexistent
outside the capital of Antananarivo.
These services are namely reserved for the elite and expats whom can pay the start up costs
and the high monthly fees.
The project will be executed by Standard Telecom, a Mauritian company providing satellite
broadband services and Gulfsat, a major Malagasy telecommunication operator. The project
aims to offer low end products which a certain segment of the middle class can afford.
The main differences with existent offers are: the customer does not get an own satellite dish
because this will be central and shared amongst customers and the products are not
customizable. The customers will not have to pay start up costs because these will be divided
amongst all customers and will be built in the monthly fee.
The internet connection provided will offer a maximum bandwidth of 1 MB, the connection
will however be shared with the other customers so the actual bandwidth will vary.
The TV package offered will comprise maximum 20 channels and is not customizable. The
project hopes to serve 6,300 customers, 2,100 with internet access and 4,200 of them with
TV connection. For this purpose new technology developed by Standard Telecom will be used
to provide the services wireless, separately or as a combination. 80% of the customers will
be households and 20% NGOs and SMEs.
The joint venture will provide their services on a prepaid basis and will introduce mobile
banking amongst their customers for this purpose. The project will also reserve 5 frequencies
for NGOs whom will get free broadcasting time for spreading out their messages on
development issues such as health, education, agriculture etc. The project will employ 24
people out of which 42% will be women, 2 of them in management positions.
Results
• Result 2 : Installation of the equipment.
• Result 3 : 24 employees recruited and employed.
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CSR aspects
The project puts a great emphasis on acting according to CSR principles. They will provide
good working conditions, amongst which pay at 310% of minimum level wages, basic
medical insurance and an additional one for those who desire that, a social security plan,
stimulance for employee development and participation, emphasis on safety measure and
financial aid for study costs made by employee with their children. With regards to the
environment and their carbon footprint, the project will strive to minimise the use of paper
(also subscription and invoices will be done online, by e-mail or SMS text message) and will
also purchase solar panels for their energy use.
Impact
Long term economic
activity
The project partners will invest into replicating the project in 6
other cities.
Employment and
working conditions
The joint venture will employ 24 people at the end of the PSI
phase and 96 two years later. The project pays great attention
to working conditions, namely good pay (310% of minimum
wage), social security plan, extensive medical insurance,
contracts and working hours according to local laws,
stimulation of employee development and participation,
emphasis on working safety, zero tolerance towards
discrimination and financial aid for sending children to school.
The technology used being innovative for the country, also the
knowledge transferred will be new.
Furthermore, there is little knowledge on ICT in the cities the
project will service. The project targets young graduates as
candidates, so practical knowledge will be transferred which will
increase the market value of the people trained.
Chain effects
The project will introduce prepaid mobile banking with their
target group, which may lead to new products being offered to
this segment of the population if other companies pick up the
concept. The access to internet can lead to extensive
entrepreneurial activities being developed in the cities.
Environment
The project will have a neutral impact on the environment due
to minimisation of paper use and the use of solar energy.
Position of women
Out of the 24 people employed, 42% will be women. Two of
them will have a management position.
Other impact
The free broadcast time provided to NGOs for information on
development issues will lead lower income families to be more
educated. Access to internet will also enable these families to
access international information, which is very important in a
country where conventional communication mediums are
censured, such as in Madagascar. The project will not broadcast
political messages in order to reduce the manipulation of the
population. The partners will actively contribute to charity
activities on health, sports, culture and such.
Page 79 of 279
Malawi
PSI11/MW/21
Flowtech Limited
Location
Blantyre
Sector
Industry (GPI)
Applicant
Silverline Reality Limited, London, United Kingdom
Local partner
Robray Limited, Limbe, Malawi
Start project
01 January 2012
End project
30 December 2013
Total budget
Goal of the project
The goal of this project is to set up a production facility producing large diameter PVC pipes
and connections for water reticulation with a maximum capacity of 6,000 meters per year.
Abstract
The applicant in this project is the British registered company (1995) Silverline Reality Ltd.
The local partner is Robray Limited registered in 1968. Both companies are 100% owned by
Mr I.A. Mohamed.
Currently there are two companies who are producing uPVC (unplasticed PVC) pipes in
Malawi. The maximum pipe diameter both companies can produce is 250 mm. Within Malawi
there is also demand for PVC pipes up to 450 mm. All the pipes above 250 mm in diameter
have to be imported from South Africa or Botswana which is rather expensive.
The aim of this project is to produce PVC pipes and all kinds of different connections with a
diameter between 250 mm and 450 mm locally to meet the local demand and to reduce
costs. The project will be located in Blantyre. A joint venture will be established. The
applicant will have 40% of the shares, the local partner 60%.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Project inception.
Procurement of equipment and training.
Commissioning and training.
Test production and first sales.
CSR aspects
The partners will establish a formal CSR policy once this project is taking off. It will include
health and safety measures, gender policy and non-discrimination, policy, employee
participation, chain responsibility, measures to prevent corruption, and environmental
management.
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Staff will be offered wages 20% above minimum wage. Additional benefits will include
workmen compensation, funeral benefits, bonuses and healthcare. All staff members receive
50 kg of maize once a year.
Impact
Long term economic
activity
The capacity of the extrusion equipment is only enough for the
pilot phase. The partners expect that once they start to
substitute the imported uPVC pipes the demand will grow and
they will need a second extrusion line to cater for the growing
demand. If this is the case the partners will purchase and
install a second extrusion line (investment € 1.3 million within
two years after project completion. This will generate additional
turnover of € 900,000 in the second year after project
completion.
Employment and
working conditions
Direct employment during the pilot project will be 42 staff
members (16 basic-, 26 medium-/high-level).
The joint venture will grow after the pilot project and generate
10 more jobs, 8 medium-/high-level jobs will be created and 2
basic-level jobs.
The joint venture will pay 20% above minimum wage.
Furthermore, they will pay (besides 20% above minimum
wage) bonuses on achievement of performance targets. They
will also give every staff member 50kg of maize per year as
extra bonus. All staff will be insured for workmen
compensation.
Polyplast's technical staff has knowledge of uPVC extrusion,
however, the new technology that will be required for this pilot
project will demand additional training.
The employees will need new skills to be able to operate and
maintain this new type of machinery.
Chain effects
The local production of large diameter uPVC pipes will
substitute imports. In addition, the pipes will be more
affordable, due to a reduction in transport costs.
Furthermore, if large institutional organisations are tendering
water projects, they demand that the tenderers would have a
sufficient amount of pipes in stock. Especially for the bigger
volume pipes this was not the case until now and as a
consequence local contractors were losing tenders to foreign
competitors. With the local production, the availability of bigger
volume pipes will improve and will make the local contractors
more competitive.
Environment
Once the pipes are being extruded, some material will be
waste. This waste can be fully brought back into the production
process and will not be wasted.
Water is used in the process to cool the pipes. The water is
100% recycled into the system and there is no contamination.
The project will opt for ISO certification.
Position of women
The impact on the position of women will positive. If the work
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is physically not to demanding and preference is given to
women.
Other impact
Page 82 of 279
The new joint venture will train and support individuals with
hardware to set up their own small business for the
installations of waterworks.
In addition, the joint venture will reserve 5% of their profit to
social projects such as low cost housing and rural water supply
projects.
Mali
PSI11/ML/01
Pivot wheat production
Location
Diré and Goundam area (region Timbuktu)
Sector
Agriculture
Applicant
Comptoir Export des Matières Premières S.a.r.l., Bobigny,
France
Local partner
Les Grands Moulins du Mali SA, Bamako, Mali
Start project
01 July 2011
End project
01 July 2013
Total budget
Goal of the project
To produce wheat on a commercial scale in the north of Mali with a pivot installation and
cooperation with smallholders to replace the massive imports.
Abstract
Applicant Comptoir Export des Matières Premières S.a.r.l. and local partner Les Grands
Moulins du Mali SA will set up a joint venture employing 35 staff to produce wheat in the
north of Mali, using a 50 ha pivot scheme. The joint venture will also include 800 outgrowers,
growing 1,095 ha of wheat in the Diré and Goundam area (region Timbuktu). The crop will
be cultivated with "conservation agriculture" techniques. Yields are supposed to be much
higher compared to the traditional cultivation. The local partner is the main importer of
wheat in Mali and secures the sales of the joint venture.
Large follow-up investments are foreseen by the partners.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Project contract.
Ordering of all hardware and Installation of hardware.
Employment and training of staff.
Farmer extension and production.
Commercial production.
CSR aspects
Les Grands Moulins du Mali SA has been involved in the formulation of a CSR chapter on a
summit of French/African companies. It has used this document as a basis for the
formulation of their Code of Conduct. This Code of Conduct will form the basis for the CSR
policy document to be formalised by Les Grands Moulins du Mali SA as well as the new joint
venture (Result 1). Main chapters are: relation with employees and measures taken on the
protection of the environment.
Besides the Code of Conduct, the joint venture will also built and organise grain banks to
secure the availability of grains for the local population the whole year around.
Page 83 of 279
Impact
Long term economic
activity
Immediately after the successful PSI pilot, new pivots will be
installed to gradually reach the surface area of almost
2,000 ha.
GMM/CMDB has contractually agreed to cultivate 2,000 ha with
the Malian government. The new investments would primarily
be in hardware. Obviously investments in the training of staff
are needed as well. A business plan has already been written
for this purpose.
These plans are very ambitious. It envisages a total additional
investment of € 7,766,628 immediately after the pilot, as
described in this Business plan, and € 5,683,050 two years
after the pilot.
Employment and
working conditions
The total number of staff employed will be 45; 4 high-level,
11 medium-level and 28 basic-level employees.
The minimum wage is CFA 28,465 per month. This is about
€ 43 whereas the least paid employee – labourers – will receive
CFA 50,000 which corresponds with € 76.
Obviously, the joint venture will also provide a required
package of benefits, including social security and health care.
Free lunches and drinks will be provided to the employees in a
canteen with a separate part for women to take care of their
children.
Medical costs not covered by the medical insurance, school
fees, school uniforms and the like will be paid for in total or
partially for those connected to the project who cannot afford
these.
Free transport service.
HIV/AIDS training will be provided to all employees.
Free contraceptives will be made available.
Pivot Agriculture is high-tech and this requires extensive
knowledge transfer. Staff will need to be able to operate the
machinery and cultivate the land extensively. In doing so, staff
will gain an understanding of large-scale mechanised food
production and understand the high efficiency in which land is
used to produce food and the lower environmental impact
caused by sustainable use of agrochemicals, soil and energy.
In addition, extension workers will work together with the
outgrower farmers to increase the efficiency, quantity and
quality of wheat being sown and grown by outgrowers. Since
wheat is well known, it will be in a participatory manner in
which innovation in wheat cultivation emerges from interaction
rather than imposition.
Chain effects
This project will establish a solid production chain for wheat,
from inputs for farming to sales to consumers. Beneficiaries will
be the milling industry that will be able to source locally, at
reduced cost and with reduced risk. Bakers and other
intermediaries will also benefit from cheaper domestic produce.
Strengthening the agricultural sector will also strengthen
Page 84 of 279
related supplies and services. This project will attract suppliers
of inputs, such as fertilisers, fuel, agro chemicals, ICT and
financial services. The government has recently developed a
special programme for the North and they will use this project
to attract other investors in this difficult part of Mali. Local
boatmen will be included in transporting crops to the factories
along the river Niger.
Environment
Agriculture, by definition, consumes water and extracts
minerals from the soil. Water is available in the river Niger in
large quantities while crop rotation and fertilisation will keep
the nutrient base in balance. The new joint venture has taken
several measures to minimise the use of water. These include:
(i) the planting of drought resistant varieties; (ii) the use of
conservation agriculture to reduce moisture evaporation, and
(iii) the use of irrigation at night to prevent excessive
evaporation during the day. Own research so far has revealed –
among others – that there is more than sufficient water for the
pivot, and with water from the river Niger being used for
irrigation, there is also minimal risk of soil salinisation. There is
also more than enough water for the farmers and for the
foreseen expansion after the PSI project.
The crop will be well monitored throughout the growing season
for incidences or outbreaks of pest and diseases. Crop
protection will be done by using IPM (Integrated Pest
Management) methods, if possible with precision agriculture.
Crop rotation will be applied so disease can be kept under
control.
No chemicals forbidden in the EU will be used while EU
standards for their application will be used for chemicals that
are not forbidden. Empty chemical containers will be destroyed
in order to avoid them being dumped in the environment or to
prevent them being reused by the community.
Position of women
The project will provide equal opportunities for men and
women. At least 31% of the employees will be women, which is
very high for this specific location in the North of the country
where not many women have official jobs and work contracts.
Women are in charge of family food security whereas men are
more eager to grow cash crops. In order to protect the farmers
from opportunistic wheat selling or selling for short term cash
needs, the joint venture will start a "grain bank" to ensure
increased food security. This is particularly done to protect
women and the family food situation.
Other impact
Significant changes in cereal prices in recent years (see the
2008 crisis, the 2010 closure of the Russian export market),
political instability in border countries upon which Mali relies for
their wheat imports (e.g.: the previous Ivorian crisis, the
Guinean crisis and again the current Ivorian crisis), require the
Malian Government and the private (milling) sector to increase
the level of domestic supply in order to ensure increased
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and/or improved food security.
A grain bank will be installed.
The state will avoid foreign exchange outflows related to
imported wheat.
Page 86 of 279
Mali
PSI11/ML/02
HI Béton
Location
Bamako
Sector
Building materials
Applicant
Van den Herik Kust- en Oeverwerken B.V., Sliedrecht,
The Netherlands
Local partner
IBRACO S.a.r.l., Bamako, Mali
Start project
01 July 2011
End project
31 January 2013
Total budget
Goal of the project
To establish a, ready made, concrete plant in Bamako, Mali, to produce 25,000m3 of
concrete per year to be sold to building companies in the "greater Bamako area".
Abstract
Bamako is one of the fastest growing cities in Africa and a lot of new constructions are built.
Because there is no commercial concrete plant, the concrete is of poor quality and buildings,
especially multi-storey ones are not secure.
This project will establish the first commercial concrete mixing plant in Mali. Mixtures will be
made on demand and transported with mixer trucks to the building site where it will be
distributed by concrete pumps to the exact spot where it is needed.
32 jobs will be created and a total yearly production of 25,000 m3 of concrete will be
realised. This will create a turnover of € 3,250,000 per year.
Strict Dutch safety regulations will be enforced at the plant, both for personnel safety as for
environmental hazards. The partners, Van Den Herik B.V. and Ibraco Sarl, will form a 50/50
joint venture to execute this activity.
Results
• Result 2 : Concrete plant erected and buildings constructed and procurement of other
equipment.
• Result 3 : Recruitment of personnel, training of all employees.
CSR aspects
The project partners agree that a robust standing with respect to CSR is of great importance
to the success of the project. Van den Herik's CSR policy will provide a starting point for the
joint venture's approach to CSR.
The joint venture will not make use of any form of forced or child labour, nor will they work
with suppliers or sub-contractors that do. Remuneration and working hours shall comply with
local labour laws and wages will be at least 229% of the nationally agreed minimum wage.
All employees will receive training on aspects relating to health and safety at work and all
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necessary safety equipment such as working clothes, shoes, helmets, ear protectors and first
aid kits. In order to promote gender diversity, the joint venture will actively encourage
female employment. Initially 16% of the total workforce will be female.
With respect to the environment, the company will do all that is reasonable and practicable
to minimise any adverse effects of its activities. Production will be done according to NENnorms.
Impact
Long term economic
activity
After the pilot phase the partners will invest further because
the concrete plant will fill a gap in the market but there are a
lot of other opportunities in the concrete business. Not only will
they invest in additional concrete mixing capacity but also in a
modern casing and reinforcement facility, a prefabricated
elements concrete plant, a concrete road and pavement
factory, mobile concrete mixers and training of the employees.
Total follow-up investment for the different items will be:
•
Additional concrete mixing capacity (250 m3 per day) :
€ 2,000,000.
•
Casing and reinforcement facility: € 300,000.
•
Prefabricated concrete plant: € 2,000,000.
• Mobile concrete plants: € 500,000.
Total follow-up investment will thus be € 4,800,000.
These follow-up investments will lead to an increased turnover
of approximately € 7,000,000.
The partners will jointly invest in the follow-up investments and
they will continue their cooperation for many years to come.
Employment and
working conditions
The project partners will offer good working conditions to their
employees to retain and motivate them. The project will create
a total of 32 permanent jobs. Workers will be provided with
official labour contracts. In a country where informal
employment prevails, this is an important positive feature.
Remuneration and working hours shall comply with local labour
laws and wages will be at least 229% of the nationally agreed
minimum wage of around FCFA 35.000. Next, the joint-venture
will do all that is reasonable and practicable to protect the
health and safety of its employees. All employees will receive
training on aspects relating to health and safety at work and all
necessary safety equipment such as working clothes, shoes,
ear protectors and first aid kits. In addition they will receive
training on the prevention of HIV/Aids. Lastly, all employees
will be treated equally and in order to promote gender
diversity, the joint venture will actively encourage female
employment.
At the production site, the VCA checklist (VGM Checklist
Aannemers (VGM = Veiligheid Gezondheid en Milieu)) will be
used to assure a safe working environment.
The first year of production a full-time Dutch Plant Manager will
be engaged and Mr. van der Maas will be the full-time General
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Manager of the plant. These two Dutch managers have not
been included in the employees list as they do not have the
Malian nationality.
Ms Maiga will be in the Board of Directors of the company. Five
out of 32 employees will be female as working in a concrete
plant is mainly a man's job. This means that 16% of the
workforce will be female of which, next to Ms. Maiga, one highlevel position namely the financial manager.
All aspects of the knowledge transfer are new to the country as
concrete mixing does not exist on a commercial basis in Mali.
As the construction sector is a very important economic sector
in Mali, the employees trained by the project will be highly
demanded by other companies because of their enhanced
knowledge and their new skills, especially those who are
trained partly in the Netherlands.
Chain effects
The parties that will benefit directly from this project will be
construction companies and suppliers of raw materials. In
general, the construction sector will be offered the possibility to
build faster, better and cheaper as a result of this project. We
estimate that some 100 construction companies will benefit
directly from this project.
For the raw materials, some 3 to 5 suppliers of sand, cement
and gravel will benefit directly, as well as the electricity
company and an insurance company.
A very important beneficial effect is the fact that building
houses will be safer with the use of good quality concrete. This
will save lives as accidents due to poor concrete quality are
common in Mali.
Environment
The project does not pose any risk to the environment as no
toxic or dangerous substances are used.
Special environmentally friendly dust filters will be installed on
the cement silo to avoid that too much dust will cover the
surrounding area and to prevent that the employees have to
work in dusty surrounding.
A waste management system will be in place and all
employees, including operators and mechanics will be trained
on minimising waste, pollution and fuel and energy
consumption and maximising efficiency.
The rest water from the concrete plant will be filtered before
discharged.
Any waste in hardened concrete will be crushed and used for
road construction or pavements.
Position of women
16% of the workforce will consist of women. Ms. Maiga will hold
a high-level position as a member of the Board of Directors.
The Finance Manager will also be a woman and this is a highlevel position as well. Furthermore the secretary, the
receptionist and two cleaners will be women.
Men and women will be treated equally at the workplace. They
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will all have the same opportunities. Promotions will be based
on merit and performance strictly. Male and female employees
will receive equal pay for equal work. Sexual harassment will
not be tolerated.
Other impact
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No special social activities are planned.
Mali
PSI11/ML/22
Mali under Construction
Location
Bamako
Sector
Services
Applicant
Dekker B.V., Geertruidenberg, The Netherlands
Local partner
Diaco S.a.r.l., Bamako, Mali
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
Creating a rental and lease company in Mali for heavy machinery with modern machinery
and well trained operators.
Abstract
Besides exporting heavy equipment, applicant Dekker B.V. is also running a rental
organisation in The Netherlands, specialised in heavy equipment. Together with the local
partner, Diaco Sarl, active in renting cars and trucks to the fast growing mining sector in Mali
they propose to start a rental and lease operation for heavy equipment in the mining sector
in Mali.
Another market is the agricultural clearance of new lands and the construction of large scale
irrigation projects. As the machines are vulnerable to bad handling a large training
programme for the personnel is foreseen. Used machines from Europe will be overhauled and
send to Mali.
A turnover of € 1,270,000 is foreseen in year 3.
The project will create a total of 40 permanent jobs. The partners will set up a joint venture
35 /65 (applicant/local partner) according to the Malian law.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Procurement of equipment.
Recruitment and training of employees.
Operational phase.
CSR aspects
First of all the project partners agree to provide their employees with competitive wages,
good and safe working conditions, the freedom to associate and a working environment free
of discrimination.
The joint venture will neither make use of any form of forced or child labour, nor will they
work with suppliers or sub-contractors that do. Apart from sound remuneration all employees
will receive social security benefits via the National Institute for Social Security (INPS).
Next, the joint venture will do all that is reasonable and practicable to protect the health and
safety of its employees. All employees will receive training on aspects relating to health and
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safety at work and all necessary safety equipment such as working clothes, shoes, ear
protectors and first aid kits. In addition they will receive training on the prevention of
HIV/AIDS.
Lastly, all employees will be treated equally. In order to promote gender diversity, the joint
venture will actively encourage female employment; this also considers heavy equipment
operator positions.
With respect to the environment, the company will do all that is reasonable and practicable
to minimise any adverse effects of its activities. All employees, including operators and
mechanics will be trained on minimising waste, pollution and fuel and energy consumption
and maximising efficiency.
Dekker's General Business Principles will provide a starting point for the joint venture's
approach to CSR.
Impact
Long term economic
activity
The additional investments two years after the pilot phase will
be in expanding the company's heavy equipment fleet, an
additional mobile repair unit and training. As the potential for
heavy equipment lease services is vast in Mali, the heavy
equipment fleet will be tripled during the first two years after
the pilot phase. This will constitute an additional investment of
€ 2,600,000. Investments in the expansion of maintenance
facilities and training of personnel will be € 350,000. Total
follow-up investments will be at least € 2,950,000.
The partners will jointly invest in the additional investments
and are determined to continue their cooperation for many
years to come. The capital needed for this investment will
partly be of own savings but also local banks are interested in
financing second stages of successful companies in Mali.
This will lead to an additional turnover of € 2,540,000.
Employment and
working conditions
The project will create a total of 40 permanent jobs.
The project partners agree to provide their employees with
competitive wages, good and safe working conditions, the
freedom to associate and a working environment free of
discrimination.
The joint venture will not make use of any form of forced or
child labour, nor will they work with suppliers or subcontractors that do. Remuneration and working hours shall
comply with local labour laws and wages will be at least 281%
of the nationally agreed minimum wage.
The joint venture will do all that is reasonable and practicable
to protect the health and safety of its employees. All employees
will receive training on aspects relating to health and safety at
work and all necessary safety equipment such as working
clothes, shoes, ear protectors and first aid kits. In addition they
will receive training on the prevention of HIV/AIDS.
Knowledge on how to operate and maintain heavy equipment in
Mali is in the hands of foreign companies. This project will train
Malians to become specialists in the operation and maintenance
of modern heavy equipment.
The environmental training will create awareness about
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respecting the environment and how to avoid pollution,
knowledge that can be applied in day to day life and future jobs
as well.
Chain effects
Companies in mining, construction, agriculture and other
sectors will benefit directly form this project because it will
provide access to much needed heavy equipment.
Environment
It is common practice in Mali to get rid of waste by simply
dumping it on the side of the road. An example is the discharge
of used oil from cars and other engines. This is often just
poured on the ground where it will penetrate the soil and
pollute sub-surface water. Polluting sub-surface water with
used oil and other dangerous substances will, in the long run,
have a devastating effect on the environment and the wellbeing
of local communities that are often highly dependent on the
local environment for their food, water, health and livelihood.
The project partners will make sure not to engage in such
practices.
The mobile maintenance unit will be equipped with empty
containers to collect waste oil for further treatment.
Part of the environmental management of the project is to train
all employees, including operators and mechanics, on the
proper use, maintenance and repair of heavy equipment,
respecting the rules on the protection of the environment.
Position of women
In Mali women's access to employment and economic
opportunities is limited, especially for the sector this project
relates to. In order to promote gender diversity, the project
partners wish to employ women wherever possible. This
includes office work, driving, cleaning and operating heavy
equipment. Initially 3% of the total workforce is female. Male
and female employees will receive equal pay for equal work.
The Diabaté family gained its first wealth by the mother of the
two brothers who was , and still is, the main importer of
alcoholic beverages into Mali. Mother Diabaté is still very
important in the family. She believes that women in West Africa
are much more reliable than men in business.
Page 93 of 279
Mali
PSI11/ML/23
Super Mali Mango
Location
Bamako
Sector
Food transformation industry
Applicant
AFM bvba, Kontich, Belgium
Local partner
Mam Cocktail S.a.r.l., Bamako, Mali
Start project
01 January 2012
End project
31 October 2013
Total budget
Goal of the project
To build a Mango concentration and pasteurisation plant in Bamako, Mali with a yearly
capacity of 2,250 tons of mango concentrate, from 9,000 tons of fresh mango, for export to
Europe.
Abstract
Mali is one of the most important producers of mangoes in West Africa. Only 10% of the
yearly production is exported as the quality rules on shape and size are very strict for the
fresh market. The other 90% is partly consumed locally but also large quantities are left
rotten in the fields as transport costs to the urban markets are more expensive than the
value of the fruits, arrived at those markets.
Mam Cocktail, a Malinese company run by women and active in the juice and diary
processing sector in Mali, has taken the initiative to find a technical and investment partner
to make use of the vast quantities of mangoes in Mali to start up a factory of concentrated
mango pulp for export to Europe. With the help of the MMF programme, a Belgian partner
with a lot of experience has been found and together they propose to set up a factory in
Bamako, with the aim to produce pulp made from fresh mangoes, provided for by three
cooperatives of female growers (in total some 150 women will be involved). The project will
create 51 jobs of which more than 50% women will benefit.
As the activity is completely new to Mali the transfer of knowledge will be considerable.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Construction of the buildings and installation of the equipment.
Recruitment and training of the employees and the outgrowers.
Production phase.
CSR aspects
The project employees will benefit from the same fringe benefits as Mam Cocktail's
employees as described above.
Furthermore, the joint venture will do all that is reasonable and practicable to protect the
health and safety of its employees. Accordingly, all employees will receive a HIV/AIDS
prevention and first aid trainings and receive protective clothing where necessary.
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The joint venture will put attention to the use of as less energy as possible and to avoid
spillage of harmful products into the environment.
The project will apply a zero-tolerance policy with respect to corruption. The offer, payment,
soliciting or acceptance of bribes in any form will not be accepted. Also, all business
transactions on behalf of the company will be reflected accurately and fairly on the accounts
of the company.
The partners will also make sure that no child and/or forced labour takes place within their
value chain. To this end, they will closely monitor the outgrowers who will supply the fresh
mangoes. The supply contracts with the outgrowers will also contain a provision prohibiting
the use of child and/or forced labour.
Impact
Long term economic
activity
The partners will invest in expansion of the processing unit by
tripling its capacity, in a Tetra-Pack packaging line to export
readymade mango juice from concentrate to neighbouring
countries. Additional investments will be made in trucks for
transport and in mobile juice making units.
Total follow-up investment will be € 2,000,000. This will lead to
an additional turnover from mango concentrate of € 5,400,000.
The partners will continue their cooperation and will jointly
finance the follow-up investments. Local banks have showed
their interest in the spin off financing if the pilot proofs to be
successful.
Employment and
working conditions
The project will employ 51 people on a full-time basis.
All of the employees will receive official labour contracts and
good and safe working conditions. all employees will receive
training on aspects relating to health and safety at work and all
necessary safety equipment. In addition they will receive
training on the prevention of HIV/AIDS. In general, high
emphasis will be placed on employee development. Please see
the details above with the CSR chapters.
Production of mango concentrate is unknown in Mali. Therefore
all related knowledge will be new to Mali and will increase the
skills of the employees, who will see their marketability
increase on the local labour market.
As the fruit sector is a very important economic sector in Mali,
the employees trained by the project will be highly demanded
by other companies because of their enhanced knowledge and
their new skills.
Chain effects
As most of the time the final profitability of an agricultural
exploitation is determined by the sale of the bulk and lower
quality, this project will give confidence to the farmers involved
and others who hear about it to invest in a proper mango
plantation. To sell the top quality 10% which is accepted for
fresh fruit export is not difficult. All that counts is to sell the
other 90% at a reasonable price. This project will give a boost
to investments in Mango production and processing in Mali.
Environment
This project has a neutral effect on the environment. The joint
Page 95 of 279
venture will do all that is reasonable and practicable to prevent
any adverse effects of its activities on the environment. First of
all, an environmental friendly water management programme
will be implemented in order to reduce the use of water to the
minimum. A waste water treatment plant is included in the
hardware list.
Through training in environmental guidelines, all employees are
expected to contribute to an environmental friendly production
process. Emphasis will be on waste and water management, as
well as fuel and power saving.
Position of women
Both the owners of the local partner, as the actual
management of Mam Cocktail are female. So it is no surprise to
find out that the project partners want to stimulate female
employment. They believe Malian women will be more reliable,
hard working and loyal than Malian men. On the other hand,
the unequal burden of family responsibilities often places them
at a disadvantage, as many do not have time to be full-time
employed. In the case of a job vacancy, preference shall be
given to women provided if they are equally qualified and
suitable.
The applicant completely agrees with this policy based on his
own experiences in other African countries.
Initially, 29 positions will be reserved for women. This is 57%
of the total workforce. This high rate is a positive feature in
Mali. The 2 high skilled positions will be reserved to women.
Such a choice is deliberate as the partners wish to set the
example in the Malian society and to encourage women to see
that the glass ceiling can be overcome.
Other impact
Apart from social sponsorships no other activities are
mentioned. Mam cocktail does sponsor at the moment various
activities, mainly with the aim to preserve the rich culture and
history of the Malien people. These activities will be enhanced
as the business grows.
Page 96 of 279
Rwanda
PSI11/RW/01
Establish Rwandan avocado production, outgrower
scheme and export
Location
Rwamagana, near Lake Muhasi
Sector
Horticulture – Fruit and Vegetables
Applicant
East African Growers Limited, Nairobi, Kenya
Local partner
East African Growers Rwanda SARL, Rwamagana, Rwanda
Start project
01 July 2011
End project
30 June 2014
Total budget
Goal of the project
To develop the avocado value chain by introducing Hass avocados to at least 150 outgrowers
(minimum 200 ha), establishing a 30 ha orchard and investing in pack house facilities with a
capacity of 8 tons of packed avocados per day for export to Europe and the Middle East.
Abstract
Even though agricultural development is one of the focal areas of the Rwandan government,
there is hardly any large scale production of agricultural produce yet, leave alone any serious
export of agro products from Rwanda.
East African Growers Ltd (EAGA) from Kenya was invited by the Rwanda Ministry of
Agriculture to advise on, and invest in the development of export crops in the country. After
some pilot projects in grafted mango varieties, avocado varieties and production of French
beans, EAGA believes the time is right to seriously invest in avocado production for export.
Together with its local subsidiary East African Growers Rwanda Sarl (EAGR) the company will
establish an avocado orchard of 30 ha and an outgrower scheme of minimally 200 ha in
which grafted avocado plants of the Hass variety will be introduced. A warehouse will be
erected in which the avocados will be graded and packed for export to the European and
Middle East markets.
In the early years, local varieties will be sourced from existing avocado trees, but in due time
all exports will focus on the Hass avocado, which fetches higher prices in the European
market. The production process will become GlobalGAP and HACCP certified.
As the companies are already closely related, no new joint venture will be established.
As there is no serious export of agro products in Rwanda yet, this project may very well set
an example in the agro sector and open up possibilities for other export crops.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Business foundation and project inception.
Setting up of own orchard, pack house and supporting facilities.
Recruitment, training and establishment of outgrowers scheme.
Business development and realisation of HACCP and GlobalGAP certification.
Page 97 of 279
CSR aspects
The project will become both GlobalGAP and HACCP certified. GlobalGAP certification will
ensure good agricultural practices, and the company will be obliged to show its commitment
to the health, safety and welfare of the outgrower and its care for the environment.
Under HACCP, the company will have to develop and implement a policy with regard to work
place health and safety.
Impact
Long term economic
activity
As the avocado trees only start producing after 3.5 years, and
will reach full production after 7 years, substantial additional
processing capacity will be needed in order to process all
supplies. The partners intend to invest in a 12-line grading line,
next to the 4-line grading line that will be acquired during the
PSI phase. This allows the factory to process over 6,000 tons of
packed avocados per year.
Other investments will be done in expansion of the cold stores,
the production hall, crates and vehicles.
Employment and
working conditions
The project will provide employment to 20 permanent staff and
59 casual labourers (during the 8 months of avocado harvest).
The permanent staff is all medium to highly qualified whereas
the casual workers are considered to be basic-skilled. Two
years later these numbers will increase to 25 and 138
respectively.
The company will at least pay 30% above local minimum
wages. EAGA approach to minimum wages is to consult with
local village chiefs, to discuss what can be considered to be a
reasonable and fair salary in that specific area. This approach
works out fine in Kenya.
People will work 46 hours per week, 5.5 days per week.
Depending on the volumes that need to be processed, the
factory will run 2 or 3 shifts per day.
Next to salary, the people will receive free lunch and medical
costs coverage for basic healthcare (a clinic will be established
at the factory).
Even though the Rwandan government already introduced the
new Hass variety to several farmers, no proper agricultural
training has been given to these farmers to improve their
production capacity. Hence, the outgrower programme will add
to the level of skills and knowledge of the avocado farmers.
Furthermore, since no serious export of fruits and vegetables
currently is taking place in Rwanda, this project will contribute
to the agricultural development of Rwanda in general.
Chain effects
At least 150 outgrowers will be involved in this project. They
will be trained in good agricultural practices and will receive
grafted Hass plants and chemicals and fertilisers when needed.
These agricultural inputs are not given out for free, but will be
deducted from the future earnings of the farmers. Costs of
plants and other inputs will be repaid in four years after the
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first yields come in.
Training of these farmers will be managed by 8 field
coordinators that visit each farmer on a weekly basis. In
addition, two outgrower managers will check the farmers
production regularly, to check how much fruits can be expected
from which farmer.
Next to the outgrowers, 2 transport companies are expected to
benefit from this project.
Environment
Use of chemicals during production will be kept to a minimum,
as prescribed by GlobalGAP.
For irrigation purposes, water will be taken from the nearby
lake. An Environmental Impact Assessment will be conducted in
order to minimise adverse effects on the environment.
Position of women
About 30% of all employees are expected to be female.
Page 99 of 279
Senegal
PSI11/SN/01
Hallal delicacies
Location
Louga
Sector
Meat production and processing
Applicant
W. Beeckman N.V., Lennik, Belgium
Local partner
Agro Business Louga, Dakar Ponty, Senegal
Start project
01 July 2011
End project
06 June 2013
Total budget
Goal of the project
The goal of the project is to offer good quality local delicacies, to valorise the local cattle
sector in Senegal.
Abstract
Senegal is a major importer of meat, meat products and delicacies. The local beef production
is focused on quantity not quality. This project will set up a delicacies production unit in
Louga region that will create 29 full-time jobs producing 600 tons per year of final products:
Hallal sausages, paté and pizza ham. The partners will work with 500 cattle breeders from
Louga by setting up an outgrowers programme in order to have a supply of high quality
meat. A vast training programme is planned for to guarantee the quality and food safety of
these Hallal delicacies. A joint venture will be set up to execute the project.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Setting up of the joint venture.
Construction of the buildings and installation of the equipment.
Recruitment and training of the employees.
Outgrowers programme.
Production phase.
CSR aspects
The joint venture will make sure not to use any child or forced labour and will put this
requirement in contracts with supplying cattle breeders. For working conditions please refer
below.
Impact
Long term economic
activity
Page 100 of 279
The partners expect the demand for delicacies will keep on
increasing. The partners intend to triple production capacity
after the pilot phase. More production equipment,
diversification of the production, a slaughterhouse, feed mill,
and a training centre for outgrowers, more staff will be needed.
Employment and
working conditions
29 full-time jobs will be created during the project period. All
employees will receive official labour contracts and a so-called
'living wage' of at least 200% of the minimum wage.
Furthermore all employees will receive a social security
package via the Senegalese Social Security Fund, including
health and accident insurance and a pension scheme.
All employees will receive extensive training on aspects relating
to health, safety and hygiene in the meat processing sector.
Employees are obliged to wear the provided safety clothing and
footwear, including protective gloves made out of steel
segments. Warm clothes are provided to those going in and out
the cold storage rooms. As the work consists of working with
sharp knives, first aid sets and emergency procedures will be
available. All machinery used has CE marking and thus
complies with all European safety, security and environmental
requirements.
All employees will have equal opportunities and will be treated
equally in recruitment and employment regardless of personal
background, race, ethnicity, age, sexual preference or religion.
To prevent nepotism, three of the project's managers need to
agree on the selection of the candidates.
If equally qualified for the job, the partners will give preference
to women above men. An estimated 28% of the workforce will
be female. A practical measure facilitating female employment
is that separate sanitary blocks and praying facilities for female
employees will be established.
In addition to their wage, all employees will receive a weekly
'meat package' filled with products to take home to their
families. The joint-venture will further pay 50% of the school
costs (including fee, books and uniforms) for the employees'
children – with a maximum of three children per employee.
With respect to fringe benefits, all employees who promise to
come to work by bicycle will get one from the joint venture.
Industrial and modern delicacies production is unknown in
Senegal. Therefore one important aspect is to train employees
on all procedures, processes, standards and norms on
delicacies production. All of that knowledge will be new to
Senegal and will increase the skills of the employees and their
chances on the local labour market but could also be used in
neighbouring countries where delicacies are also produced
locally.
All employees will also be trained on health and safety,
HIV/AIDS.
Chain effects
The parties that will directly benefit from the project will first be
the 500 cattle breeders. The joint venture will set up an
outgrowers programme through which approximately 500 cattle
breeders will be a constituent part of the project. The farmers
will receive technical assistance in order to improve their
breeding programme and breed cows of better quality. These
500 outgrowers will supply their cattle to the joint venture.
Page 101 of 279
With this project they will have an assured outlet for their
products and they will be assured to have a good price.
Animal feed producers and veterinary surgeons will also benefit
from the new operations. The project partners will (financially)
stimulate the use of a specific type of pre-mix animal feed
supplement from Europe with locally produced ingredients and
regular check-ups by vets among their contracted farmers.
Environment
An environmental friendly water management programme will
be implemented in order to reduce the use of water to the
minimum. This programme includes improving water-use
practices, installing a water re-circulating facility and collecting
and processing of rainwater. The delicacies production unit will
hardly produce any other waste. There will not be much offal of
meat as the waste of the bones will be sold to market vendors.
As a special environmental measure, the hot water needed for
the project will be partly heated with solar energy. The partners
have budgeted for the purchase of six solar water heaters,
which will save energy and energy costs at the same time. A
possible investment in solar cooling for the cold storage rooms
will be investigated later on.
Position of women
The meat processing sector is traditionally a men's world.
Nonetheless, the project partners want to stimulate female
employment. They believe Senegalese women will be more
reliable, hard working and loyal than Senegalese men. On the
other hand, the unequal burden of family responsibilities often
places them at a disadvantage, as many do not have time to be
full-time employed. In the case of a job vacancy preference will
be given to women provided that they are equally qualified and
the work suits women. 8 out of 29 employees will be women.
Other impact
The project partners have agreed to invest a part of the future
profit to contribute to the further development the meat sector
in the Louga region, most likely through the set-up of a
professional training centre.
Because the formal private sector in Senegal is still small,
private sector companies are often approached to sponsor all
kind of activities. Sponsorship can be in the field of health care,
education, sports, culture etc. The partners will sponsor
activities in these fields as part of their CSR policy.
A direct link with both the university "Cheick Anta Diop" of
Dakar as the local university of Saint Louis is already
established. Students and professors are welcome to do
training and research at the premises of the joint venture.
Page 102 of 279
PSIP11/SL/01
ACCC Ltd; Cacao processing for Sierra Leone
Location
Freetown
Sector
Food processing
Applicant
Dirkzwager Moordrecht B.V., Moordrecht, The Netherlands
Local partner
African Cocoa and Coffee Company Ltd, Freetown, Sierra Leone
Start project
01 July 2011
End project
31 December 2013
Total budget
Goal of the project
The establishment of a grading and processing unit for cacao beans and coffee, with a
maximum annual capacity of about 5,000 tons.
Abstract
Cacao production was introduced into Sierra Leone under colonial rule.
At that time, Sierra Leonean cacao beans were processed and graded locally. Since
independence the cacao sector deteriorated and was for a large part destroyed during the
civil war in the 90's.
A vicious downwards spiral emerged where inferior and ungraded beans received low prices
and because of the low income cacao farmers were unable to take proper care of their trees.
Productivity per ha is now only 30% of that found in neighbouring countries. At the moment
relatively small amounts of cacao are being exported without local processing or grading.
This project will provide the missing link to the cacao production chain in Sierra Leone. The
plant will process beans according to international standards. The applicant in this project is
the Dutch registered company Dirkzwager Moordrecht B.V.. The local partner is the start up
company ACCC Ltd.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Set up of the factory.
Capacity building.
Production and certification.
Impact
Employment and
working conditions
In total 37 jobs will be created during this project, it is
expected that this amount will rise to 68 within two years after
the project ending, due to increased production levels. This
project will offer its employees a wage package including fringe
benefits such as medical aid for employees and family
members, participation in a preventive health care programme
Page 103 of 279
for HIV/AIDS, and support school fees for underage children.
Protective clothing will be provided where relevant. An equal
employment policy will be applicable.
The wage level will be well above the official minimum wages,
lunch will be provided.
At the moment the cacao and coffee is not processed but
exported as it is. This project will re-introduce knowledge to
process the cacao and coffee.
Chain effects
The cacao and coffee industry is operating on a very basiclevel. The quality is very poor and therefore the products are
traded on the international market at a discount.
This project is an attempt to improve the quality of the
products, to add value locally and to professionalise the
industry.
In due time this should lead to faster payments, higher prices
and the improvement of production of which all stakeholders in
the industry should benefit.
Environment
The project will have a neutral effect on the environment.
Position of women
This project will have a positive effect on the position of
women.
Company policies will be favourable for female employees.
Other impact
At the moment collateral finance does not exist for agricultural
commodities. Local banks have shown interest to support this
project and to provide collateral finance.
Page 104 of 279
PSIP11/SL/25
Providing modern cargo services at Freetown
International Airport
Location
Freetown International Airport, Lungi
Sector
Logistics
Applicant
Groupe Europe Handling, Roissy, France
Local partner
Sky Handling Partner Sierra Leone, Lungi International Airport,
Sierra Leone
Start project
01 January 2012
End project
31 May 2013
Total budget
Goal of the project
Providing modern cargo services.
Abstract
The applicant in this project proposal is Europe Groupe Handling (GEH) , the local partner, is
Sky Handling Partner Sierra Leone Limited (SHPS). SHPS is for 80% owned of GEH and for
20% by a local shareholder.
SHPS was formerly a state owned company. The service level of the company was very low.
The Sierra Leone's government decided to privatise the company in order to improve the
standards. GEH took over the company in 2010. The first priority of GEH was to improve the
service level of the passenger services and the baggage handling. Adequate equipment to off
and unload the planes was hardly available, but has been procured since.
The current challenge is to upgrade the cargo handling services. At the moment the
infrastructure is insufficient. The poor infrastructure limits the amount of cargo which is
delivered to the country. Export of goods (by plane) is nearly impossible due to the fact that
Sierra Leone cannot guarantee the required safety procedures to send cargo abroad.
For this project a separate joint venture will be established. The cargo handling services and
the passenger handling services will be separated.
This project will be located at the Lungi International airport.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Cargo terminal established.
Human resources.
Business development and quality assurance.
Page 105 of 279
CSR aspects
Both the applicant as the local partner have a CSR policy. The CSR policy of SHPS is based
on the CSR policies of its mother company GEH. Every employee has received an employee
handbook in which the CSR principles are outlined.
Furthermore, the IATA Safety Audit for Ground Operations (ISAGO) standards will be
implemented. ISAGO aims to improve safety by drastically reducing ground accidents and
injuries. The ISAGO programme is an audit system conducted in a standardised and
consistent manner, using internationally recognised quality auditing principles.
SHPSL applies responsible environmental management. It recycles and treats its waste and
works towards reducing its vehicle's CO2 emissions. For the new cargo terminal the partners
are looking into the possibilities for installing solar/dual hybrid power solutions. SHPSL will
have an Environmental Impact Assessment conducted at the terminal location.
Impact
Employment and
working conditions
The new joint venture will employ in total 45 people.
SHPL already developed a detailed employee handbook in
which all the rights and duties of the employees are outlined.
The proposed training in handling the cargo in the terminal
according to the computerised tracing system will be
completely new in Sierra Leone. Training in ISAGO regulations/
implementation and on dangerous goods handling will be
completely new to the country.
Chain effects
• Increasing import and export possibilities by providing more
and improved storage facilities and more efficient cargo
handling capacity;
• Promoting the export possibilities of local companies by the
provision of air freight links to key markets;
• Stimulating the local food export industry by providing cold
storage for the private sector at the airport;
• Positive impact on the local economy – more flights arriving,
carrying more goods and more passengers;
• A possible lift of the current export embargo international
airlines have put Sierra Leone under;
• Contributing to more efficient airline operations by reducing
ground time.
Environment
SHPSL will implement the ISAGO standards, which also include
environmental standards.
Position of women
The partners will provide equal employment opportunities to
both men and women. However, due to the nature of the
business, cargo handling, it is expected that mostly men will be
contracted.
More information:
http://www.groupe-europe-handling.fr/
Page 106 of 279
Sudan
PSI11/SD/21
Setting up the "Comprehensive Rehabilitation
Centre"
Location
Khartoum
Sector
Health / medical services
Applicant
Medigroup Ltd, Cairo, Egypt
Local partner
Magi Top Medical Co. Ltd, Khartoum, Sudan
Start project
01 January 2012
End project
01 July 2014
Total budget
Goal of the project
To set up a "neuro-ortho rehab centre" combining neurological debilitative disorders with
orthopaedic and other forms of rehabilitation.
Abstract
In Sudan private specialist medical services exist next to the government health system.
Private health care has expanded over the last decade with a growing urban population in
Khartoum and a middle class that can afford (better) services and are willing to pay for it.
This project aims to set up a modern rehabilitation centre integrating physiotherapy,
hydrotherapy, and other modern techniques addressing neurological and orthopaedic
disorders.
Applicant is Medigroup Ltd (1999) from Egypt and local partner in this project is Magi Top
Medical Co Ltd (2008) from Khartoum. Partners will establish a joint venture private
company.
This project introduces modern medical services addressing a big gap in the present medical
service level in the country.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Building established and equipment installed.
Establishing patient stream/business developed.
CSR aspects
The application contains an outline of CSR principles that will be maintained by the joint
venture.
Impact
Employment and
working conditions
The project will employ and train 28 full-time employees of
which 22 will be health professionals at high-level and 6
Page 107 of 279
medium staff for routine medical work and administration.
Twenty of these will be female employees.
Staff will be paid well and are entitled to a good package of
complementary benefits (private health insurance and pension
fund). They will have ample training and career possibilities.
The training package is comprehensive and involves a large
element of knowledge transfer. Training will be done in Sudan,
Egypt and in the Netherlands.
Chain effects
The project will have spin off for suppliers of medicines and
medical devices, consumables and for technical service
providers. The number of local companies that will benefit as
regular suppliers to the centre is 5-10.
Position of women
75% of staff will be female which is common for this sector. The
project will have equal salary conditions and career
opportunities for male and female employees, with the same
qualifications and responsibilities.
Other impact
The centre will establish business relations and an exchange
programme with Khartoum University Medical Faculty and a
number of NGOs in the health sector.
More information:
http://medigroup.com.eg/
Page 108 of 279
Sudan
PSI11/SD/22
The Sudan poultry feed centre of excellence
Location
Khartoum
Sector
Agriculture (services)
Applicant
Koudijs Feed B.V., Ede, The Netherlands
Local partner
D'Tasi Ltd, Khartoum, Sudan
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To operate a poultry feed centre of excellence that supports the development of the poultry
sector in Sudan.
Abstract
The Sudanese poultry sector is rapidly developing. Most raw materials for the production of
animal feed are sourced locally with the exception of soy and pre mixes which are imported.
This project will set up a commercial laboratory for analysis of animal feed ingredients in
combination with advisory services to farmers regarding the optimisation of compounded
poultry feed. The laboratory will be in Khartoum. Applicant in this project is Koudijs Feed B.V.
(Ede), the local partner is D'Tasi Ltd (Development Technology and Services International
Ltd) from Khartoum.
The project will be the first commercial service provider for poultry feed analysis and
nutrition advice in Sudan. Testing technologies and methodologies are according to
international best practice.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Project inception.
Building renovations completed and equipped.
Staff hired, basic staff training, first samples.
Advanced training, NIR calibration, GMP audit.
Impact
Employment and
working conditions
The project will employ and train 14 staff. This is a modest
number however staff will be highly qualified and the impact on
(indirect employment) the sector can be expected to be strong.
Staff will be well-paid for Sudanese circumstances, are entitled
to a good package of complementary benefits (health insurance,
pension fund etc), and will have ample training and career
possibilities.
Page 109 of 279
The training package is comprehensive and involves a
substantial element of knowledge transfer and backup from
Koudijs B.V. in the Netherlands. Training will be done in Sudan
and in the Netherlands.
Chain effects
This project can be expected to have significant impact on the
chain or the sector. The services provided (including the
advisory services) will fill up an important gap in the poultry
industry in Sudan. The project may also act as a catalyst and
lead to crowding in by competitors, whether in the poultry
sector or in other livestock value chains.
Position of women
40% of staff will be female and payment and career
opportunities for females will be equal to male employees.
Other impact
An interesting effect of this project is that a balanced and
healthy animal feed input will contribute to a healthy and safe
end-product for consumers. Please note the issue of fungi and
micro biological contaminants, dioxins etc in animal feed.
More information:
http://www.koudijsfeed.nl/
Page 110 of 279
Tanzania
PSI11/TZ/22
Tanzania Crushing Facility
Location
Pongwe region/Msata
Sector
Industry
Applicant
Kuhn Baumaschinen GmbH, Eugendorf, Austria
Local partner
Universal Electronics & Hardware, Mlalakuwa – Dar Es Salaam,
Tanzania
Start project
15 January 2012
End project
30 June 2014
Total budget
Goal of the project
The project aims to exploit a quarry on an international level using most modern equipment
in order to produce quality aggregates for the building industry. The annual production will
be 450,000 ton aggregate per year.
Abstract
Applicant Kuhn Baumaschinen GmbH is a well known company that provides services and
equipment to the stone crushing industry in 10 European countries and wants to expand onto
the African market. Kuhn Baumaschinen GmbH wants to diversify their business in line with
their experience and starts quarry exploitation. Local partner Universal Electronics &
Hardware is active in producing quality building materials like tiles and building blocks. It
owns two big quarry sites, which are actually not exploited.
The partners will establish a joint venture company to exploit a quarry with the most modern
stone crushing facility in order to produce high quality granite aggregates in Tanzania. The
present demand for aggregate is much bigger than the supply, while the market demands
more and more A-grade aggregates, which the existing industry is not able to deliver.
The quarry to be exploited by the joint venture, is located 125 km outside Dar es Salaam and
can be exploited for at least 40 years. 70% of the aggregate will be sold to other companies
in the building industry, and 30% will be sold to Universal Electronics & Hardware. The use of
modern technology in quarry exploitation makes transfer of know-how and technology
essential. The project will put emphasis on training local management and workforce in how
to manage such a facility according to international standards with respect to work quality,
security, environment and social affairs.
The partners have planned additional investment in quarry exploitation in Tanzania after the
pilot phase.
The project will create jobs for 60 locally recruited workers, of which 45 are on basic-level.
Average salary will be double to the local level. The partners will take care of safe work
conditions.
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Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Set up of the joint venture.
Operational preparation.
Recruitment / training.
Pilot production and project conclusion.
CSR aspects
Kuhn Baumaschinen GmbH claims that the whole project will be executed on high
international level including: environmental aspects, working conditions, labour standards,
personnel policy, and health and safety of employees.
NORPLAN, a specialised company regarding CSR and environmental aspects, will deal with
the environmental aspects and the CSR policy. The joint venture will properly manage the
project in regard to all necessary environmental standards, laws and regulations.
Special emphasis is put on CSR and activities are carried out in the project respecting
conventions by the ILO and OECDE and concerning labour standards, personnel policy,
employee participation, health and safety issues, chain responsibility, and corruption.
Impact
Long term economic
activity
A long-term cooperation between Kuhn Baumaschinen GmbH
and Universal Electronics & Hardware is the goal of the
partners. After two years, an additional investment is planned
of € 1.5 million to install a second production line with the
same capacity in the same quarry. In 2015/2016, an additional
investment of approximately € 1.5 million will be considered in
a production line in southern Tanzania and at the same tome a
potential business case study of equipment rental (including
transfer of technology, training and CSR package) will be
finished.
Employment and
working conditions
At the end of the project the joint venture will have 60 full-time
jobs:
5 high-level in general management and quarry technical
management;
10 medium-level, in sales and marketing, administration, IT
and medical staff;
45 basic-level in production work, administrative and facility
management and first aid station.
The additional investment will lead to 36 jobs of which
30 basic-, 5 medium- and 1 high-level.
Wages of the employees will be with an average income of
€ 3,500 for basic- and medium-level around 50% higher than
the minimum income in the region.
Further benefits for the workforce are: health insurance;
accident insurance scheme, monthly health check, free meal,
own cantina and shop (sales of products produced by
neighbouring farmers), free transport, bonus system for all
employees.
All working conditions will be geared to European standards
and therefore an example for other companies in the region.
The knowledge of implementation, operation and maintenance
of mobile crushing units does not exist in Tanzania. Austrian
Page 112 of 279
experts will train the workers during workshops and on the job.
Training will partly take place in Europe for high-level
employees. Local workers will be the first in Tanzania skilled in
this field.
Austrian experts will give training about quarry management
and planning.
During the project the transfer of technology will be within the
joint venture. Later on, partners intend to start leasing
operations, including technical assistance.
Chain effects
Transport companies will be subcontracted to truck the
aggregate to big clients or to the depot in Dar es Salaam. The
number of workers involved is unknown.
Local farmers will be able to sell agriculture products to the
company kitchen and shop.
The building and construction sector will be provided with the
increasingly demanded high quality aggregate. This will enable
them to comply with tender requirement for instance
government buildings. Another effect will be the less use of
illegal coral as alternative for aggregate.
Environment
The project will contribute to the policy of the Tanzanian
government to minimise illegal coral mining in order to protect
the coral environment.
The quarry will have limited negative impact on the
environment: the production plant is designed according to
European standards and will among others use extremely low
energy consumption.
A special tree planting programme will partly restore the
landscape.
An environmental impact assessment will be conducted through
the company NORPLAN.
Position of women
Around 25% of the 60 employees will be women, working in all
levels like accounting, sales and support (office support,
cleaning and facility management).
Other impact
The joint venture partners will support the local inhabitants
with a primary school project in the village Msata. The joint
venture provides the building material for expansion for free,
will contribute chairs and benches and will pay one teacher.
A kindergarten/day care for TanCrush workers will be
established. Two clean water wells will be drilled and
maintained on TanCrush expenses on the village territory.
Page 113 of 279
Uganda
PSI11/UG/03
Introducing soya and sunflower warehouse receipt
systems to Uganda
Location
Lira
Sector
Services
Applicant
Mount Meru Millers Limited, Arusha, Tanzania
Local partner
Mount Meru Millers Limited, Lira, Uganda
Start project
01 July 2011
End project
31 March 2013
Total budget
Goal of the project
To establish a warehouse receipt system for soya and sunflower seed consisting of two silos
with a capacity of 8,500 and 6,000 tons respectively.
Abstract
Oilseed production in Uganda has been growing for quite some time. Most common is the
production of sunflowers, especially in the northern part of the country, but recently soya has
been introduced as oilseed crop as well.
Originally, there was one main oil seed processor in the country, buying close to every
sunflower seed that was produced. Just three years ago, applicant Mount Meru Millers Ltd
from Tanzania entered the market and established a sister company called Mount Meru
Millers Uganda Ltd. The presence of this new buyer led to an important increase in price for
oil seeds. More and more farmers are now growing oilseeds as important cash crop. As there
is hardly any storage capacity however, farmers are forced to sell their oilseeds all at once
during harvest which leads to low returns, as prices are low during harvest.
As buying all produce in bulk during harvest, poses a major financial burden on the oilseed
buyers as well, Mount Meru Millers proposes to establish a Warehouse Receipt System (WRS)
for soya and sunflowers in Lira. A WRS allows farmers to store their commodities for any
desired period of time awaiting increase of market prices. Farmers receive a warehouse
receipt as proof of the amount of commodity they have stored. As the stored commodity will
meet a certain quality standard, banks are willing to provide loans, using the warehouse
receipt as collateral. Once prices pick up again, farmers can sell their stored commodity,
repay their loans and take the remainder home.
In order to ensure the independent nature of the warehouse, an independent quality
inspection agency (ACE) and at least one bank (Standard Chartered) will be involved to
ensure the proper functioning of the warehouse. Mount Meru will establish a new joint
venture which will serve as warehouse keeper, and which will act as an entity independent of
the milling company.
Results
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•
•
•
•
•
Result
Result
Result
Result
Result
1
2
3
4
5
:
:
:
:
:
Business foundation/ project inception.
Set up of warehouse and supporting facilities.
Recruitment and training.
Awareness raising campaign for WRS and up scaling of outgrowers' scheme.
CSR aspects
To formalise the CSR commitment of the partners, the joint venture will acquire a declaration
of compliance with the Ethical Trading Initiative Base Code (ETI). This addresses a variety of
social standards for the company's employees.
For environmental issues an environmental impact assessment will be conducted.
Impact
Long term economic
activity
This project will just be the first step in the long term vision of
the project partners. If the project turns out to be successful,
they aim to double the capacity of the silos and to expand the
outgrower network from 20,000 farmers to 30,000 farmers.
Employment and
working conditions
The project will create employment for 39 people (38 of which
will be truly new). This will be 24 basic skilled employees and
15 medium to high.
Two years after the project has ended, a total of 65 people will
be employed (38 basic, 27 medium/high).
For the outgrowers network, the company will work with 180
site agents (120 of which will be truly new). These agents work
on a commission basis and can be seen as seasonal employees.
The salaries will be at least 20% above the local minimum.
Employees will receive free daily lunch. In order to show their
commitment to good working standards, the company will
comply with the ETI Base Code.
The knowledge on warehouse receipt systems in Uganda is not
new, yet the concept has not permeated throughout the entire
society yet. The Uganda Commodity Exchange acknowledged
they only represent 1% of the national production, or even less.
Therefore, a WRS for oilseeds in the Lira area can be considered
to contribute to bringing the sector to a higher level.
Chain effects
Although not officially employed by the project, 180 site agents
will contracted on performance based contracts. They will be
trained in agricultural aspects, relationship building and general
awareness about the WRS (out of these 180 site agents, 120
will be truly new as MMMUG already has 60 site agents working
for their current operations).
The project will also expand on the outgrower network of
MMMUG, by growing from 8,000 farmers to 20,000. These
farmers will be trained as well.
Environment
An environmental impact assessment will be conducted, as
required by law. A minor advantage of storage in silos instead
Page 115 of 279
of storage in warehouses is that commodities in silos do not
need to be fumigated regularly as they are stored in a closed
atmosphere. This is better for the environment.
Position of women
Page 116 of 279
7 out of 39 employees will be female (18%). One of them will
be in a management position.
For the site agents it is expected that 40% will be female.
Uganda
PSI11/UG/24
Potato processing in Kisoro
Location
Kisoro
Sector
(Luxury) Food
Applicant
Mugenga Holdings Ltd, Mombasa, Kenya
Local partner
Maina Speedy Uganda Ltd, Kampala, Uganda
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To establish a modern, HACCP and ISO 9000 certified potato processing factory in Kisoro,
with a capacity of producing 500 kg of French fries per hour for the local Uganda and Rwanda
markets.
Abstract
The south-west corner of Uganda, more in particular Kabale and Kisoro district, is the biggest
production area for potatoes in the country. Due to its conducive climate, up to three
harvests can be reached each year. Although the production levels are increasing annually,
the marketing of potatoes is still a problem, leaving many farmers with low prices for their
products.
Mr Tom Mugenga, a Ugandan national born in Kisoro, aims to help develop the potato sector
by investing in a potato processing facility. Through his Kenya based company Mugenga
Holdings, and his Ugandan company Maina Speedy, he intends to establish a new joint
venture for the processing of locally grown potatoes into French fries for the Uganda and
Rwandan market.
As neither Mugenga Holdings, nor Maina Speedy is experienced in food processing or
production of potatoes in general, the project will hire the services of a food processing
expert and from potato processing and storage experts. Furthermore, the partners will team
up with already existing initiatives by local research institutes and NGOs, that focus on
farmer associations and the related agronomic training, in order to make full use of the
knowledge and expertise already available within the product chain.
The project will contribute to the professionalisation of the potato chain in Uganda. By
introducing locally produced French fries, the chips will come within reach for a larger
consumer group which in turn will assure a more steady and stable market outlet for
farmers.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishment of a joint venture for production of French fries.
Start-up of the processing activities.
Transfer of know-how.
Commercial production of French fries.
Page 117 of 279
CSR aspects
The project plan itself already comes from a socially responsible perspective of Mr Mugenga.
Apart from aiming to establish a profitable business, Mr Mugenga intends to involve the local
community as much as possible. He will be paying fair prices to the farmers, and he will
provide a safe and healthy working environment for the employees in the factory. The
production process will become HACCP and ISO 9000 certified. The company will also
implement a waste management policy aimed at minimising the negative impact on the
environment.
Impact
Long term economic
activity
Mr Mugenga has a long term strategy for helping to develop the
potato sector in Uganda. Next to production of frozen chips, he
will also enter into cleaning and bagging of good quality
potatoes in proper 2 kg and 5 kg bags, in order to differentiate
from the potatoes that are sold in bulk on the markets.
After doubling the number of shifts at the end of the project,
the partners intend to invest in additional production capacity
for frozen chips and chips varieties (wedges, flavours etc) in the
two years following the end of the PSI project.
Employment and
working conditions
The project will employ 34 people, of which 21 are basic-skilled
labourers and 13 medium to high.
Two years after the project a total number of 54 will be
employed (36 basic, 18 medium/high).
The company will pay salaries of at least 20% above the local
minimum wage. Employees will receive free lunch during
working hours, and health insurance will be co-financed for all
employees. In order to provide a safe and healthy working
environment, the company will provide all employees with the
necessary protective clothing like boots, overalls and jackets.
Professional and industrial potato processing is totally new to
the country. The related expertise will be introduced to the
country through this project.
Chain effects
The project will provide an important incentive to local potato
growers, as the factory will need at least 8 tons of good quality
potatoes daily. Initially, the partners will team up with 5 farmer
associations of roughly 20 farmers each, but this number will
expand fast as soon as the project takes off seriously.
Next to these farmers, around 3 companies are expected to
benefit from the project as well (e.g. traders, transport
companies etc).
In collaboration with NAADS and FAO the project will lead to an
increase of production and knowledge levels at the farmer level.
Environment
The partners will restrict the production of waste as much as
possible. Organic waste will be recycled as compost and given
out to the farmers.
Position of women
Twelve out of 34 employees will be female. They will mainly be
in office jobs and management, as the physical labour is most
Page 118 of 279
often done by men.
Page 119 of 279
Uganda
PSI11/UG/25
To the next level
Location
Kampala
Sector
Medical
Applicant
MeduProf-S, Eindhoven, The Netherlands
Local partner
ECUREI Ltd, Kampala, Uganda
Third partner
Kampala Imaging Centre, Kampala, Uganda
Start project
01 January 2012
End project
31 January 2014
Total budget
Goal of the project
To introduce formal medical education on MRI imaging and introduce Uganda's first MRI
scanner for medical examinations of patients in Uganda.
Abstract
Medical imaging is a basic need in hospitals, for analysing various medical conditions. In
Uganda, most hospitals and clinics are equipped with x-ray and echo equipment, but more
sophisticated equipment like CT scans is limited to just a few hospitals. MRI scanners are
only available in neighbouring countries Kenya, Rwanda and Tanzania.
Applicant MeduProf-S is a commercial healthcare education company experienced in
providing high quality custom made training and coaching courses for the medical sector.
MeduProf has been working in Uganda since 2004 on a ORET programme for the
rehabilitation of x-ray and ultrasound education in the country.
Local partner ECUREI Ltd (Ernest Cook Ultrasound Research and Education Institute) is the
Ugandan training centre of excellence for imaging with a special emphasis on ultrasound and
x-ray. Together with third partner Kampala Imaging Centre (KIC: a private healthcare firm
specialised in medical imaging services), the partners will establish a joint venture for the
introduction of an MRI scanner in Uganda.
The MRI will be used for training purposes for Ugandan and regional medical staff, as well as
for providing MRI images to clients of KIC and Mengo Hospital.
The joint venture will be established in a building close to Mengo Hospital. The project will
help to reinforce the position of ECUREI as the regional training centre for medical imaging,
as well as to improve the level of medical diagnoses that can be offered in Uganda. As such it
will help to develop the quality of medical services in the country.
Results
• Result 1 : Project inception.
• Result 2 : Procurement of equipment and transport to Uganda.
• Result 3 : Training the radiologists in the Netherlands and in Uganda, train the trainers,
also training of other staff in Uganda.
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• Result 4 : Commercial phase and official opening of the MRI service joint venture.
CSR aspects
The partners will establish a formal CSR policy for the joint venture, which includes health
and safety measures to be taken to protect staff, gender policy and non-discrimination
policy, employee participation, chain responsibility, measures to prevent corruption and
more.
Impact
Long term economic
activity
The partners wish to continue their collaboration after the PSI
project has ended. They expect to invest in expansion of their
service range and acquire a 128-slice CT scan and additional
ultrasound equipment.
Employment and
working conditions
The joint venture will create eight new, direct jobs: two
radiographers, one biomedical engineer, two nurses, a
secretary, an administrator and one cleaner.
In addition two radiologists will be part-time employed by the
joint venture, but these are already on the payroll of KIC and
thus cannot be seen as new employment. As the joint venture
will not be registered as a training institute, the lecturers also
will be indirectly employed and outsourced to ECUREI. This
means additional indirect employment for 3 lecturers and
1 technical instructor at ECUREI.
Two years after the project has ended, the radiologist are
expected to be employed full-time, and an additional 20 staff
members will be hired to operate the new equipment, bringing
the total headcount to 30 employees.
All employees will be paid competitive wages, as the partners
do not want to lose staff to other countries.
Fringe benefits include health insurance for staff and families,
free meals and a 50% discount for children of staff that want to
follow ECUREI training courses.
The knowledge on use of MRI scans is completely new to
Uganda. Thanks to the training institute that will be part of the
project, this knowledge will not remain at the joint venture
company only, but it will be shared with any interested hospital
in Uganda and in the region.
With the knowledge acquired during the MRI training courses,
students can get involved in the set-up of new MRI services in
the country and in the region which will raise the standard of
medical services in this part of Africa.
Chain effects
Apart from the 5 indirectly employed fte's (radiologists and
lecturers), the biggest chain effect will be the increased ability
for Ugandan hospitals and clinics to have their patients properly
diagnosed and cure them more successfully.
Even though most hospitals have their own basic medical
imaging equipment, it is already common practice that patients
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are referred to more specialised imaging centres like KIC, in
order to get a better diagnosis. Hospitals do not mind doing
this, as patients will get back to them anyway for the final cure.
It is expected that the MRI services will lead to better diagnoses
and cures.
For students, the availability of a MRI scanner allows them to
access innovative know-how and the latest technology in the
field of MRI and imaging.
Environment
The impact on the environment is very minimal. Any waste
(consumables etc) will be disposed of, using the hospital waste
disposal system.
Position of women
The partners aim to have a balanced team of 50% male and
50% female, although current practice learns that 65% of all
radiologists are female.
Other impact
An additional advantage of having access to the high energy
magnets of an MRI scanner, is that more applied research can
be done locally into tropical diseases like bilharzia and malaria.
Prof. Kawooya of ECUREI has been involved in several research
of that kind already.
Page 122 of 279
Zambia
PSI11/ZM/01
Production of forage seeds
Location
Central Province & Lusaka
Sector
Agriculture
Applicant
Klein Karoo Seed Marketing, Oudtshoorn, South Africa
Local partner
Chartered Seeds Ltd, Lusaka, Zambia
Start project
01 August 2011
End project
31 December 2013
Total budget
Goal of the project
To set up a company for the production of 5 types of forage seed with a maximum capacity
of 250 tons of seed.
Abstract
The project partners aim to set up a forage seed and marketing company.
Applicant Klein Karoo Seed Marketing is a seed production company based in Oudtshoorn
South Africa and Chartered Seed a seed marketing company based in Zambia.
At present, livestock in Zambia has an insufficient supply of feed and for most farmers feed
supplements are too expensive. The availability of forage crops is lacking as is the supply of
forage seed.
The partners will set up a seed production company in order to be able to supply dairy and
beef farmers with good seeds. The use of good forage crops will allow these farmers to
improve the quality and volume of their product and increase their profitability.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Set up the joint venture.
Operational preparation.
Recruitment / training.
Demonstration
Pilot production and project conclusion.
CSR aspects
The Klein Karoo Group is committed to and involved in the implementation of the BEE policy
of the South African Government. The CSR activities of the Group are mainly addressing the
needs of Black South African citizens and especially focused on job creation.
Furthermore Klein Karoo is engaged in the training and technical support of employees and
smallholder farmers.
The applicant ascertains that no child labour or forced labour is used within the companies of
the project partners, nor within the project, nor at the main supplier of the project. In case
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of selection of the application, a statement about the absence of child labour and forced
labour will be part of Result 1 of the administrative decision.
Impact
Long term economic
activity
A joint venture will be set up in which Klein Karoo will hold
80% of the shares and Chartered Seed 20%. Klein Karoo will
guarantee the own contribution for the consortium. During the
start up phase the financing agreement between the partners
will be formalised. The seed cleaning facility will be set up on
land owned by Chartered Seed, indicating the commitment of
the partners to each other.
The aim of the project is to expand the seed distribution and
marketing activities to other provinces, produce a broader
range of forage seed and start up breeding activities for forage
seed tailored specifically to Zambian conditions. This will
require investments in a.o. infrastructure, facilities, staffing,
storage capacity, a extra seed processing line and greenhouse
facilities.
Employment and
working conditions
In total 34 jobs will be created within the project period; 20 on
a basic-level, and 14 on a medium-/high-level.
After the follow-up investments in total 56 jobs will be created,
32 on a basic-level and 24 on a medium-/high-level.
The salary level is at least 10% above the official minimum
wages.
Training will be given to seed growers covering the topics: land
preparation and fertilisation, sowing rates and methods,
weeding and roguing of the seed crop, irrigation, harvesting
and post harvest handling.
The numbers of people trained on basic-level is 320 and on
medium-/high-level is 127.
Innovative part of the knowledge transfer is in topics as
propagation techniques of lucerne, clover, forage sorghum,
Rhodes grass and rye grass, and seed processing and quality
control systems for forage seeds.
In additions, a quality Assurance and traceability system will be
introduced that will be controlled and monitored by inspectors
of the Seed Control & Certification Institute. Furthermore, an
pest management system will be set up to minimise the use of
pesticides. This will also be part of training to outgrowers
Chain effects
The project will lead to better feed for livestock at a affordable
price for small farmers. This will give them a chance to raise
better cattle and get a better yield and thereby increase their
income but also improve the situation for customers (of beef
and milk) in Zambia.
Position of women
This project will have a positive impact on the position of
women.
Overall about 30% of the employees will consist of women
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while about 13% of management will be women.
Page 125 of 279
Zambia
PSI11/ZM/02
Samfya marina, flotilla and hospitality
Location
Samfya
Sector
Tourism
Applicant
Den Daas Recreatie Beheer B.V., Elst, The Netherlands
Local partner
Leo Jonas Ngosa Investments Ltd, Samfya, Zambia
Third partner
Toptech Enterprises Ltd, Mansa, Zambia
Start project
01 July 2011
End project
31 December 2013
Total budget
Goal of the project
The goal of this project is to establish a marina facility with a total capacity of 30 anchor
places for boats in combination with boat related services.
In addition, accommodation will be provided and flotilla and tourism services (packages) will
be organised at or from the Marina.
Abstract
The applicant in this project proposal is the Dutch registered company Den Daas Recreatie
Beheer B.V.. The local partner is Leo Jonas Ngosa Investments Ltd and the third partner is
the Zambian registered company Toptech Enterprises Ltd.
The aim of the project is to establish a marina harbour in combination with a flotilla (a fleet
of small boats or ships), and hospitality & tourism services.
In addition, related services for the boat owners will be provided (fuel and maintenance &
repair services).
The project will be located in Samfya at the shores of Lake Bangweulu in Northern Zambia.
The rationale behind this project is that the applicant would like to diversify and expand its
activities in Zambia, the local partners see a good business opportunities.
The project partners will establish a joint venture. Den Daas Recreatie Beheer B.V. will own
60% of the shares, Leo Jonas Ngosa Investments Ltd 20% of the shares and Toptech
Enterprises Ltd will have the remaining 20% of the shares.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
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Construction of the chalets, campsite and boat rental.
Flotilla launched and marina completed.
Capacity building.
Production and promotion.
CSR aspects
The least paid staff will at least earn 30% above the minimum wage, lunch will be provided
as well as a provision for health care. The employees will be a member of a pension scheme.
In addition, CSR projects establish with assistance of the surrounding communities include a
school and health care clinic and a bore hole for water. One will also try to incorporate the
local communities in the supply chain with regard to the lodge.
Impact
Long term economic
activity
The follow-up investments will amount to € 400,000. This will
be mainly put in upgrading the facilities and expanding the
provided services in the marina. The follow-up investments will
lead to an increase in turnover of € 1,900,000.
Employment and
working conditions
In total 56 jobs will be created within the project period, 49 on
a basic-level, and 7 on a medium-/high-level.
After the follow-up investments in total 68 jobs will be created,
58 on a basic-level and 10 on a medium-/high-level.
The salary level is at least 30% above the official minimum
wage, in addition housing will be provided for some of the staff
members as well as pension.
Most of services provided by the marina, can be categorised as
hospitality services. As such this is not very new for the
country. The combination of the hospitality services with the
marina related facilities and services (berth, repairs etc) can be
considered as an expansion of the tourism concept in the
country. However, the truly innovative aspect with regard to
this project is the concept. The introduction of true new
knowledge transfer to Zambia is meagre.
In total 146 people will be trained in this project. The joint
venture will not only train its own staff, but will also train
people in the swamps for guiding, hospitality, fishermen for
taking the guest on fishing trips etcetera. In addition the joint
venture will train people who are not directly on their pay roll.
The cooling cell and ice making facilities will be run by
independent entrepreneurs. A lease contract will be signed, but
the people will be trained by Den Daas.
Chain effects
This project will create a demand for fish and locally produced
vegetables.
Furthermore will this project open up the northern region of
Zambia and more specifically the Bangweulu swamps for
tourism. The people living in the swamps may benefit from this.
Guides will be trained and perhaps other income generating
activities for the people will come up.
The marina will also provide services for the fishermen, like a
cooling cell and ice making facilities which will contribute to a
higher income for the fishermen.
Environment
The project will develop a marina adjusted to the ecosystem.
This requires extra attention to the design, lay out and
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techniques being used. The investment will be higher as a
result of these adjustments. The whole project will use solar
and wind energy in combination with energy saving bulbs or led
lights.
The project will invest in an indigenous tree nursery. The
project will reforest its premises but will also encourage the
community to do the same.
Position of women
This project will have a positive impact on the position of
women.
The majority of the staff will consist of women.
Other impact
This project will support and initiate all kinds of projects within
the surrounding communities like:
• construction of a school;
• reforestation projects;
• stimulation of trade between the local community and the
tourists;
• provision of a water supply.
Page 128 of 279
Asia
Page 129 of 279
Page 130 of 279
PSIP11/AF/07
Marvellous Afghan Marmar
Location
Sulttan Khil Village
Sector
Marble
NOTE:
More information about this project can obtained from the Project Advisor.
Page 131 of 279
PSIP11/AF/22
Quality liquorice from Afghanistan
Location
Mazar i Sharif
Sector
(Luxury) Foods
NOTE:
Page 132 of 279
PSIP11/AF/25
Kabul Dairy Processing Plant
Location
Kabul
Sector
(Luxury) Foods
NOTE:
Page 133 of 279
Bangladesh
PSI11/BD/23
Cattle & Buffalo Improvement in Bangladesh
Location
Uthura – Mymemsingh
Sector
Agriculture / Cattle
Applicant
Winall Hi-tech Seed Co. Ltd, Hefei, China
Local partner
Lal Teer Livestock Limited, Dhaka, Bangladesh
Third partner
Lal Teer Seed Ltd, Dhaka, Bangladesh
Start project
01 January 2012
End project
31 December 2014
Total budget
Goal of the project
The project partners from China and Bangladesh will establish the first private sector driven
cattle breeding and AI services in Bangladesh which, in combination with the promotion and
marketing of seeds of improved forage crops, shall produce 275,000 semen straws and sell
60 MT forage seeds with a combined turnover of € 395,000.
Abstract
Applicant Winall High-tech Seed Co. is a Chinese supplier of hybrid seeds and other
agricultural inputs on the Bangladesh market.
Together with their Bangladesh partner Lal Teer Livestock Ltd, the livestock sector has been
identified as high potential for expansion and diversification. Compared to the surrounding
Asian countries productivity of the animals is still low. The project will establish the first
commercial breeding farm and laboratory facilities at Uthura (Bhaluka Upazila) near
Mymemsingh for the supply of HQ pedigree semen for artificial insemination (AI) services in
the dairy, beef and buffalo sub-sectors. Technical assistance in the field of modern animal
breeding and nutrition will be provided by the Anhui Academy of Agricultural Sciences in
Hefei, P.R. of China.
Sales and marketing of the animal breeding services will be combined with the supply of
forage seeds, animal health and nutrition services. The farm will be designed and operated in
line with the highest veterinarian and environmental standards. The project will create more
than 100 new jobs. The project is targeting to improve the livings of small scale livestock
owners and especially women will benefit from the increased productivity because they
traditionally take care of the animals. These farmers will be supported with advisory services
on cattle breeding as part of an integral approach to livestock improvement including also
feed and nutrition, animal welfare and health improvement. Besides this 250 new
inseminators will be trained and, together with 750 existing inseminators, be offered a
contract. Seed dealers will be supported with training on forage seeds.
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Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Business foundation (Chinese 25%, local 75%) establishment.
Infrastructure for cattle and buffalo breeding established.
Start-up of the buffalo and cattle breeding programme.
Marketing & Sales system developed and operational.
CSR aspects
The plan origins from the founder of Lal Teer and main shareholder of the Multimode Group
of Companies, Mr Mintoo. Mr Mintoo is commercially driven but has also presented his social
drive. His vision is to bring more welfare and economic development to the rural population.
Quality certification will be ensured on the basis of the introduction of Good Laboratory
Practices (GLP) and the ISO 9001:2008 Quality Management standards.
Impact
Long term economic
activity
After the PSI phase has finalised, the nucleus farm will be
expanded to house an additional 300 animals and another 40
breeding bulls. Furthermore the partners plan to establish a
feed mill for the production of high quality affordable animal
feed. The laboratory shall be expanded for the provision of
commercial animal disease diagnostic services. These
investments in expansion and diversification require for the
period 2015 to 2018 an estimated € 1 million to € 1.5 million. In
the second year after project finalisation the turnover is
expected to be € 1.6 million. The existing cooperation between
the partners will be continued.
Employment and
working conditions
101 full-time staff will be employed by the end of the project:
22 high-, 28 medium- and 51 basic-level employees. 134
persons two years later: 28 high-, 44 medium- and 62 on a
basic-level. Staff members will receive a proper contract.
Minimum wage level in Bangladesh is approximately € 30 per
month and the project will at least pay 10% more.
250 new inseminators will be trained and contracted. These
people will receive a base fee of € 30 per month plus the
earnings per insemination which is approximately € 0.5 per
insemination. Thus, their combined income is expected to be at
least € 40 per month.
All capacity building activities related to the breeding of beef
cattle and buffalo is completely new to Bangladesh. In addition
the scientific and systematic approach the project will introduce
is the first of its kind. Employability of the trained personnel is
expected to be greatly enhanced.
Chain effects
Livestock provides a source of food, nutrition, income, savings,
draught power organic fertiliser and transport. Many rural
people will be able to benefit from the HQ genetics of this
project. Direct beneficiaries will also be the inseminators and
rural seed suppliers who will see their income generating
opportunities increased.
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Environment
The project aims at providing the farmers involved with
sustainable solutions towards productivity improvements. If
possible with the same number of animals because of the high
cattle density in the country. Before construction an EIA will be
undertaken. Construction plans for the project will include
manure pits for biogas generation. A high standard of animal
welfare will be part of the animal husbandry practices at the
breeding farm.
Position of women
The joint venture will provide equal opportunities to men and
women.
Also remuneration will be equal.
Some 3,000,000 poor women are livestock farmer in
Bangladesh and these women could benefit from the project's
achievements.
Other impact
Currently Bangladesh imports dairy and meat products but in
due time the project's cattle and buffalo productivity
achievements should have an import substitution effect on the
economy. The improved availability of meat and dairy will have
a positive effect on the nutritional status of the consumers.
The Chinese knowledge institute, the Anhui Academy, has
stated that it is interested in cooperation with a Bangladesh
University in order to improve the latter's capacity.
Page 136 of 279
Indonesia
PSI11/RI/03
Single piece production of high quality FSC doors
Location
Jakarta
Sector
Industry
Applicant
Reesthout B.V., Dedemsvaart, The Netherlands
Local partner
Bintang Buana Karya, Bogor, Indonesia
Third partner
Mr Lee Kee Fong, Singapore, Singapore
Start project
01 July 2011
End project
28 February 2013
Total budget
Goal of the project
The purpose of the project is to produce 18,000 FSC doors with a sales volume of
€ 1,788,182.
Abstract
The applicant Reesthout B.V. is the holding company of Weekamp Deuren which is a
manufacturer of interior and exterior doors.
The local partner PT Bintang Buana Karya is a trading company in glass and leaded windows.
The third party is Mr Lee Kee Fong. He was the general director of CSH, a company that
Weekamp sourced doors from until 2010.
The market requires that the applicant continuously improves quality and implements
innovations at competitive prices. This requires that suppliers change their production
process as well. The applicant has been sourcing doors from two Indonesian suppliers. The
aim was to set up a joint venture with CSH. However, the mother company of this company
that is based in Singapore went bankrupt. PT Bintang Buana Karya has been supplying CSH
with paint and coatings in the past and in a later stage also with glass.
The aim of the project partners is to establish a factory for the production of single piece
interior and exterior doors of FSC wood using CNC technology, flow coating, finger jointing
and water based coatings.
A joint venture will be established in which Reesthout B.V. will own 70%, PT Bintang Buana
Karya will own 20% and Mr Lee will own 10% of the shares.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Building constructed and training facility running.
Machinery installed.
Certification and implementation of CSR policy.
Commercial realisation.
Page 137 of 279
CSR aspects
During the project KOMO and FSC certification will be realised. The aim of the partners is to
only use the FSC certification initially. At a later stage wood may also be imported from other
parts of the world where different certifications are being used. However, the partners will
only use certifications that are approved by TPAC.
Impact
Long term economic
activity
In the two years after completion of the project the partners
aim to invest another € 3 million. These investments include
additional machines, administrative systems and automation of
the production process. A line for luxury doors will also be set
up.
Expected turnover two years after completion of the project is
expected to be € 12 million.
Employment and
working conditions
During the project 100 employees will be contracted of which 15
on a medium-/high-level. Two years after finalisation of the
project 300 employees will be contracted. Wages will be at least
10% higher than the minimum wage. Further, employees will
receive a health insurance, meal allowance, training and
support in case of exceptional family circumstances.
Knowledge with regard to single piece production is new for
Indonesia. The use of CNC technology in a wood production
facility is also new.
Chain effects
Several FSC certified sawing mills will supply the joint venture
with the wood. The fact that the new joint venture will only use
FSC certified wood is highly progressive and sets an example in
the wood manufacturing sector. Further, the applicant is willing
to support a few sawing mills with which they have a good
cooperation to obtain or maintain FSC certification. In the past,
applicant has supported the sawing mill of STI in Medan.
Environment
The partners will only use certified wood. Further, water based
paints will be used. The first two layers of paint will be applied
through flowcoating. This is a completely closed system which
results in no losses of paint.
Page 138 of 279
Indonesia
PSI11/RI/04
Sustainable production of bamboo panels and
planks
Location
Klungkung – Bali
Sector
Industry
Applicant
Zedonix Investment N.V., Amsterdam, The Netherlands
Local partner
CV Indobamboo, Kuta, Indonesia
Third partner
Interwand B.V., Eibergen, The Netherlands
Start project
01 January 2011
End project
30 June 2013
Total budget
Goal of the project
The purpose of the project is to produce 560 m3 of planks with a sales volume of € 629,800.
Abstract
The applicant Zedonix Investments N.V. participates in ventures for the generation of
sustainable energy and sustainable production processes. The local partner CV Indobamboo
is active in the field of development and production of bamboo planks and panels. The third
partner Interwand B.V. manufactures flexible wall systems for offices, schools and the
healthcare sector. The present facility for production of bamboo flooring (vertical grain
planks) in Malang is not optimal and the percentage of bamboo that is wasted is high,
approximately 60%. The local partner has visited China several times and learnt about the
technology to produce strand woven bamboo. This production technology results in an
extremely strong bamboo product, compatible with hardwood and the percentage of bamboo
that can be used is 75% (the loss is reduced to 25%).
Therefore, the project partners aim to set up a new facility for the production of strand
woven bamboo. For the sourcing of bamboo the partners will cooperate with local
communities/farmers on the island of Flores.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Setting up of joint venture.
Construction of production facility and installation of equipment.
Organisation of sourcing of bamboo in a sustainable way.
Project completion, operation of the facility and cooperation with community
farmers.
CSR aspects
During the project DUBOkeur certification will be obtained to prove the sustainability and eco
friendliness of the products.
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Impact
Long term economic
activity
During the two years after completion of the project the
partners have the intention to extend the product range with
higher added value products such as secondary structure of
buildings, fenestrations and furniture. It is estimated that this
will lead to follow-up investments of € 475,000 for a range of
wood processing machines, drying kilns, professional lacquer
installation and a small warehouse. Expected turnover two
years after completion of the project will be € 849,080.
Employment and
working conditions
During the project 54 new jobs will be created of which 10 on a
medium-/high-level. Two years after finalisation of the project
76 new employees will be contracted. The wages paid will be at
least 10% above minimum wages.
Additionally, the joint venture will provide for a clean, safe and
healthy workplace in compliance with Western standards,
protective clothing will be provided, a canteen in the company
and the employees will receive a meal during the working
hours. A health and safety programme will also be
implemented. The joint venture will co-finance health insurance
for all employees ensuring regular access to medical
examinations and treatment.
All knowledge related to the production of strand woven
bamboo will be new for Indonesia. Production of vertical grain
bamboo on an industrial level is also new for Indonesia.
Chain effects
All bamboo will be sourced from Flores. At least 5 communities
will be contracted for the supply of bamboo poles. Further
consumables and services for the production and operation of
the company will be sourced locally as much as possible.
Environment
The impact on the environment is positive. First of all, the
strand woven bamboo introduces a sustainable alternative for
hardwood. Further, the production technology for strand woven
bamboo also improves the percentage of the bamboo poles that
are used (namely to 75%). Finally, the project will contribute to
educating local communities in the sustainable harvesting of
bamboo.
Position of women
The impact on the position of women is neutral.
Page 140 of 279
Indonesia
PSI11/RI/22
Piloting protected cultivation of tropical vegetable
seeds
Location
Jember – East Java
Sector
Agriculture
Applicant
East-West International B.V., Enkhuizen, The Netherlands
Local partner
PT East West Seed Indonesia, Puwakarta, Indonesia
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
The purpose of the project is to produce 3,000 kg of hybrid tomato seed with a sales price of
€ 600,000, 15,000 kg of hot pepper hybrid seed with a sales volume of € 1,050,000 and
200 kg of GSPP hybrid seed.
Abstract
Applicant East-West International B.V. with its base in the Netherlands has several seed
production daughter companies worldwide. They are active in tropical vegetable breeding
and seed production.
The local partner East West Seed Indonesia (hereafter EWINDO) is one of these seed
producing companies. Indonesia has experienced harsh weather conditions in recent years.
In 2010 there was no dry season at all. In other years the pattern of precipitation was highly
irregular, both in terms of shortage or abundances. For most seed crops the main production
period is the dry season. Traditional seed production takes place in open field and requires
hand pollination and flower development under dry conditions.
In 2010 the seed production for tomato was reduced with 80% and for hot pepper with
almost 40%. Because of the risk related to weather extremes, the project partners aim to
introduce protected seed cultivation in its primary production region in East Java. Under
protected conditions the production per hectare may be doubled, but more importantly, the
seed quality and reliability of produce will be guaranteed.
In addition the partners aim to introduce GSPP (Good Seed and Plant Practices) in the seed
production for tomato. GSPP certified seed production would allow the company to export
(parental and commercial seeds) to Europe, following stringent measure for quality,
quarantine and pathogens.
Results
• Result 1 : Project inception and preparation of working plan.
• Result 2 : Pollen and GSPP production capacity implemented.
• Result 3 : Implementation of outgrower scheme involving 400 farmers and production
start-up.
• Result 4 : Employees assigned and trained and farmers and pollinators trained.
• Result 5 : Pilot turnover achieved and follow-up business plan developed.
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CSR aspects
GSPP certification will be realised during the project. The farmers will be trained in pest and
disease management.
Impact
Long term economic
activity
aim to invest another € 1 million. The company will continue to
up scale the pilot project towards another 40 ha of protective
structures, made available for outgrowers in East Java.
Turnover is expected to amount to € 1.5 million two years after
finalisation of the project.
Employment and
working conditions
During the project 40 jobs will be created of which 10 on
medium-/high-level. Two years after the project 80 employees
will be contracted.
Wages and benefits will be above average. Overtime, travel
allowances, food and medical security will be offered.
Further, the company attaches great value to training and
education for its personnel.
During the actual production of pollen and in peak periods
during seed operation, it is expected that the project will need
about 50 temporary jobs each year.
Knowledge with regard to protected seed cultivation is new for
Indonesia. Farmers will have to learn how to convert from soil
cultivation to substrate cultivation. Substrate cultivation is very
uncommon in Indonesia.
Further, GSPP is entirely new and will be implemented for the
first time in the country.
Chain effects
400 farmers will participate in the project. The company already
cooperates with these farmers for the production of seeds.
However, as a result of the protected seed cultivation, the
farmers will have two growing cycles in stead of one cycle each
year. Therefore, their income will increase significantly. And
because seed production is highly labour intensive many jobs
will be provided, for instance for pollinators.
For Indonesia improved and secure seed supply is of great
importance for food security and self-sufficiency. This project
will contribute to improved and secure supply.
Other impact
As a result of the new Indonesian Horticulture Law which limits
foreign ownership to 30%, East-West International has set up
several internal and external strategic communication activities.
Activities include publications in leading newspapers to create a
better perception of Indonesian public about the importance of
the company with regard to increase in welfare of vegetable
farmers in Indonesia.
Further, a new Horticulture Seeds Association will be set up as a
strong entity that will convey its message together with other
seed companies in Indonesia to the government. These are
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ongoing activities. New activities are also being developed.
Page 143 of 279
Indonesia
PSI11/RI/23
A supply chain for fresh organic cassava chips
Location
Tulangan and Bogor
Sector
Industry
Applicant
Dumas Food Group B.V., Ochten, The Netherlands
Local partner
PT Legong Bali Nusantara, Pasuruan, Indonesia
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
A BRC certified production factory capable of producing (at least) 290 tons (sales value
€ 667,000) organic certified cassava chips by the end of the project.
Abstract
Applicant is a Dutch producer of Asian food products and specialities for the EU market.
Together with the local partner, who is in the same type of business, a joint venture
production facility will be established in Sidoarjo for the manufacture of chips to be made of
fresh cassava.
The production will be BRC certified and the product will be organic certified with the
Naturland label.
The chips will be further processed (e.g. flavoured) by the Applicant who will be responsible
for the sales and marketing of the final product. An outgrowers scheme will be set up with 200
cassava farmers in Bogor.
A production facility will be established near the farmers for processing cassava root into flour.
This needs to be done as soon as possible due to limited conservation time.
The maximum production capacity is 600 tons per year and by the end of the project the
production level will be at least 290 tons which represents a sales volume of € 667,000.
Follow-up investments amount to € 2,000,000 aiming at doubling the production capacity
and introduction of new products.
Summarised, the unique characteristics of this project are:
• large scale use of fresh organic cassava as main ingredient for the production of chips;
• organic knowledge transfer through an outgrowers scheme with initially 200 cassava
farmer;
• production technology which is relatively sophisticated and which is new to Indonesia;
• considerable follow-up investments.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Page 144 of 279
Business structure established.
Production facility constructed, pre-audits carried out.
Staff training.
Outgrowers scheme developed, farmers trained.
Business development, certificates acquired.
CSR aspects
DFG in the Netherlands is certified by DNV (Det Norske Veritas) for BRC, grade A. In
addition, DNV has issued the IFS Food Certificate "Higher Level".
The joint venture will be certified according to the organic certificate Naturland which
stipulates the environmental responsibility that the partners are taking from the "soil to the
mouth".
The joint venture will only work with suppliers which can adhere to these high environmental
and social standards. The CSR policy of the project, which will be documented in Result 1,
will include creating a healthy and safe working environment to the employees of the joint
venture.
Staff shall be trained in occupational health and safety, including First Aid training. The
company has indicated to refrain from (forced) child labour and to stimulate the employment
of female staff. Discrimination on the work floor will be strictly forbidden and will be part of
the CSR policy.
The CSR document will also include the company's policy on how to deal with forms of
corruption: the joint venture has indicated to be very articulate in rejecting any form of
involvement in corruptive practices.
Impact
Long term economic
activity
Follow-up investments (€ 2 million) are described as follows:
1. Expansion of production capacity. The partners envisage at
least a doubling of capacity from 2 to 4 tons per day.
2. Introduction of new products. The partners will start
producing these new variety of krupuk and crackers the first
year in small quantities, i.e. 1.5 to 2 tons per day.
3. Expansion of the outgrowers programme to at least 400
farmers.
This results in a total annual turnover of € 3.8 million. Of this
amount, € 2.7 million comes from expansion of production
capacity, while € 1.1 million is allocated to the introduction of
new sorts of krupuk.
Employment and
working conditions
75 staff members at the project's end. These will include a plant
manager, a HR manager, a quality assurance manager,
laboratory / quality assurance staff, a production supervisor,
workers and security staff.
As a result of the follow-up investments, 91 employees will be
required additionally, bringing the total of employees to 166.
All staff members will be paid more than reasonable wages. The
minimum wage in Sidoarjo is estimated between € 90 and
€ 125; the minimum waged paid by the joint venture will be
€ 160, or 125% of the minimum.
Excellent working conditions are envisaged: BRC standard
factory. A prayers room will be included for staff wanting to
pray during working hours.
A canteen. Company's clothing which they can change in
separate changing rooms, with lockers to safeguard their
personal belongings. Showers for men and women. A medical
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insurance coverage scheme.
Modern manufacturing methodology, according to BRC
standards, in combination with knowledge of securing organic
certified supply as feedstock for the company. Indonesians are
not accustomed to work with (a) modern machineries, and (b)
according to strict hygienic standards, so ample devotion will be
paid to the training of employees in aspects related production /
processing and BRC compliance.
Chain effects
The SMEs which will benefit consist of several small transport
companies who will be involved in the daily transport of fresh
cassava from the farmers located in region Bogor to the
production facility. After the cassava has been processed it will
be transported to the factory in Surabaya. There will be need
for extension and auditing companies which will assist the
farmers in getting their farms comply with the organic standard.
Other raw material suppliers (both importers and local
producers) like sugar, salt, but also carton and labelling/tagging
companies will be providing the joint venture with goods. Also
the joint venture will be in need for service providers like legal
counsellors, financial auditors, shipping and clearance
companies, etc.
In future cooperation with other food processors on Java is
anticipated and due to an increase for organic food products,
Indonesian food companies might see the commercial
opportunity to convert from conventional to organic production.
Thus the project partners see potential in supplying organically
produced cassava flour to these companies. It is expected that
at least 60 SMEs will be providing contractual services to the
joint venture.
Environment
Neutral effects on the environment. The organic certification will
prove the environmentally-friendly production and processing of
cassava chips. Furthermore, the project will save on electricity
and water use by purchasing equipment known for its high
energy-efficiency. It is not deemed necessary to conduct an
environmental impact assessment. The business licence will be
accompanied with an environmental paragraph indicating the
potential environmental impact of the company.
Position of women
53% of the employees will be female and women will mainly
take the positions in management (HR, finance, quality
assurance), and as production supervisors, secretary as well as
workers. This labour division is also visible at Legong Bali and at
Dumas.
Page 146 of 279
Indonesia
PSI11/RI/24
Holcomer UHT colouring of milk bottles
Location
Surabaya
Sector
Industry
Applicant
Holland Colours N.V., Apeldoorn, The Netherlands
Local partner
PT Holland Colours Asia, Surabaya, Indonesia
Third partner
Gaypa Srl., Quint Vincentino, Italy
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
The purpose of the project is to produce 364 Mtons of Holcomer UHT granules with an
expected turnover of € 1.5 million.
Abstract
The applicant, Holland Colours NV is a manufacturer of pigments and pigment dispersions of
the global plastics industry. The local partner, PT Holland Colours Asia is a daughter company
of the applicant. Third partner, Gaypa Srl. is an Italy-based company involved in the
production of colour concentrates.
The applicant has developed a new colouring solution for producers of packaging material in
the dairy industry. The colouring technology is called "Holcomer UHT" and utilises a white
colorant for monolayer PET bottles making these specifically suitable for packaging and
storage of Ultra High Temperature (UHT) milk products. The main advantages of Holcomer
UHT colouring is the attractive appearance of the bottles and the blocking of light at
relatively low dosing levels of the colouring ingredient. With reduced light penetration of the
bottles the milk qualities will be better preserved and will thus provide producers in the milk
industry a cost-effective and high quality possibility for packing their milk products.
The project partners wish to introduce the Holcomer UHT colouring ingredients for its clients
in Indonesia and elsewhere in Asia. Milk consumption in Asia is on the rise and the
introduction of Holcomer UHT will enable the partners to capture a new market segment of
the packaging industry. Therefore, a facility for the production of Holcomer UHT will be
established.
A joint venture will be established in which Holland Colours N.V. will own 50%, PT Holland
Colours Asia will own 35% and Gaypa Srl. will own 15% of the shares.
Results
• Result 1 : Business structure established.
• Result 2 : Production facilities and lab operational and management recruited.
• Result 3 : Staff trained.
Page 147 of 279
• Result 4 : Business development and certificates acquired.
CSR aspects
During the project ISO 9001:2008, ISO 14001 and OHSAS certificates will be acquired.
Impact
Long term economic
activity
Follow up investments in two years after completion of the
project are projected at € 1 million. The partners will make
additional investments in machinery for increase of production
capacity with an amount of € 400,000 (extra extruder, packing
equipment, warehouse equipment and accessory equipment).
Further, Holland Colours is continuously working on improving
existing products and developing new products with a wide
range of applications. Total investments for product
diversification are estimated at € 600,000.
Turnover two years of the project is expected to amount to
€ 5,600,000.
Employment and
working conditions
will be contracted. Salaries will be at least 25% higher than
minimum wages.
Further, the HR policy will include provision of health insurance
and medical check-ups, free lunches and coverage of transport
costs.
With the establishment of a production facility for Holcomer UHT
a new product and production technology is introduced in
Indonesia. The production process requires well-trained and
highly skilled staff capable of dealing with all technical critical
aspects of the production process and applying quality and
safety protocols.
Chain effects
It is expected that at least 30 companies will benefit from the
project, such as converter industries (more flexibility and
diversity in PET bottles for milk packaging), dairy industry
(prolonging shelf time of their products, flexible and attractive
designs and ecological footprint of dairy industry will be
reduced, because PET bottles can be recycled), transport
companies, freight forwarders and logistical service providers
and several consultancy companies (financial auditors, ISO and
OHSAS certifiers and auditors etc).
Environment
The project offers an environmental solution for the converter
and dairy industries currently using Tetra Pack (which contains
an aluminium inner layer) and HDPE bottles. PET bottles can be
recycled. Already, PET bottle manufacturers in Indonesia are
using recycled PET as raw material.
During the project ISO 14001 environmental certification will be
realised.
Other impact
The joint venture aims to realise an information exchange
platform. Purpose of this forum is to bring together all parties
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playing a role in the value chain, especially in Indonesia. In
addition, the partners will take initiatives to organise open days
and seminars. Through the sharing of knowledge, information
will be exchanged on trends, challenges and technical solutions
that may be commercially capitalised by converter and dairy
industries in the short or mid run.
Page 149 of 279
Indonesia
PSI11/RI/26
Integrated fresh sourcing & farm extension services
for modern wholesale markets
Location
West Java
Sector
Agribusiness
Applicant
Metro Cash & Carry International Holding B.V., Diemen,
The Netherlands
Local partner
PT Widjajatunggal Sejahtera, Jakarta, Indonesia
Start project
01 January 2012
End project
31 December 2014
Total budget
Goal of the project
The purpose of the project is to produce 2,000 Mtons of vegetables and fruits in cooperation
with at least 500 farmers.
Abstract
The applicant Metro Cash and Carry International Holding B.V. is a division of the METRO
Group, one of the leading wholesalers worldwide.
The local partner PT Widjajatunggal Sejahtera is the owner of the Sintesa Group of
companies, specialised in sales and distribution of Fast Moving Consumers Goods and retail
products. Star Farm Consult China is an independent subsidiary of Metro China delivering
agronomy consultancy and support, especially in the field of food safety, certification and
traceability on a semi commercial basis. This company is a non investing company that will
deliver essential services to the project.
Metro will enter the Indonesian market as a cash and carry wholesaler. Clients of Metro
include shopkeepers, hotels and restaurants and other businesses. Fresh vegetables and
fruits are key for the concept of the company and must be of the highest quality for a
modest price. Indonesia does not have a professional horticulture of scale. Vegetables and
fruits are produced on small farms without any standard of production nor quality. In
addition, the "fresh infrastructure" in Indonesia is poor with no cold chain and traffic
congestion. Metro requires excellent quality of fresh vegetables and fruits with transparent
and recognised standards of produce, meeting minimum levels for food safety and
sustainable production.
Therefore, the project partners intend to organise a system of integrated fresh sourcing,
combined with practical farm extension and supervision to hundreds of farmers.
A joint venture will be established in which Metro will own 60% and Sintesa will own 40% of
the shares.
Results
• Result 1 : Inception.
• Result 2 : Construction collection and distribution platforms.
• Result 3 : Farmers extension programme and staff training.
Page 150 of 279
• Result 4 : Food safety and product quality safeguarded.
CSR aspects
During the project HACCP will be realised for the platform in Lembang and the two collection
points in Subang and Puncak.
Further, 250 farmers will be StarFarm certified.
Impact
Long term economic
activity
Follow-up investments in two years after completion of the
project are projected at € 750,000. The partners will invest in
more platforms, better equipment, more cold stores and
refrigerated trucks.
Turnover two years after the project is expected to amount to
€ 2,000,000.
Employment and
working conditions
will be contracted.
In order to meet the standards and to maintain high quality, the
company will contribute to the social welfare of its workers by
offering more than average working conditions and benefits,
such as medical insurance, enrolment in savings scheme,
pension scheme, a programme for self improvement and
training to provide opportunities for promotion and career
development.
Knowledge of the supply chain that will be set up with the
involvement of a large number of small farmers is new for
Indonesia. The extensive training programme will result in
higher knowledge level of 2,000 local farmers on quality
management, agronomy, farm economics, GAP and postharvest treatment.
Chain effects
Chain effects are significant, as the number of farmers with
supply contracts will be 500 at the end of the project.
Furthermore, 2,000 farmers will be included in the farmer
extension programme. Another chain effect of the project is its
positive impact on the quality and safety of food.
Environment
At the platforms a waste water management system will be
implemented. Pesticide usage will be minimised and an
integrated pest and diseases management system will be set
up. A system of reusable crates with deposits will be
implemented.
Page 151 of 279
Indonesia
PSI11/RI/27
Tool Factory
Location
Tangerang, Province of Banten, Java
Sector
Industry
Applicant
SMF Tools B.V., Helmond, The Netherlands
Local partner
PT Garuda Metalindo, Jakarta, Indonesia
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
The purpose of the project is to produce 11,738 carbide dies and 3,785 steel dies and
holders with a sales volume of € 1.86 million.
Abstract
Applicant SMF Tools B.V. is specialised in the development and production of high quality
precision tools for the automotive fasteners industry.
The local partner PT Garuda Metalindo produces various kinds of fasteners, nuts and bolts for
manufacturing companies of motor vehicles, motorcycles, furniture and electronics.
Currently, there are no tool factories in Indonesia that are capable of producing high-quality
tools for the production of fasteners. The production of these tools is an extremely complex
process of multiple metalworking techniques and production methods. For SMF tools it is
essential to follow their main customers to Asia in order to stay a preferred supplier.
PT Garuda Metalindo aims to produce high safety parts for the automotive industry in future.
In order to produce these high safety parts, they need high quality tools. Therefore, the
project partners aim to set up a factory for the production of tools that can be used for the
manufacturing automotive fasteners. A joint venture will be established in which both SMF
Tools B.V. and PT Garuda Metalindo will own 50% of the shares.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Inception phase.
Production location operational.
Knowledge transferred and training programme executed.
Pilot production and certification realised.
CSR aspects
During the project ISO 14001 and OHSAS 18001 certification will be realised.
Impact
Long term economic
activity
Page 152 of 279
aim to invest € 250,000. Investments will be made in training of
new personnel (an extra shift will be introduced from year 3
onwards) and extra machine capacity for solving the
bottlenecks (as mentioned under hardware). Depending on the
speed of growth of the joint venture the partners expect that
investments will amount to € 1.5 million within 5 years after
completion of the project. Expansion of machinery can be done
only after staff has been intensively trained. Product quality and
lead time depend heavily on the skills of the employees. A pilot
project with a smaller scale is not feasible within this type of
production company.
Expected turnover two years after completion of the project is
expected to be € 2,238,144.
Employment and
working conditions
During the project 28 employees will be contracted of which 10
on medium-/high-level.
Salaries will be at least 15% higher than minimum wages.
Employees will also receive several additional benefits such as a
holiday allowance, transport and health insurance. Further, the
joint venture will introduce a bonus system and/or profit sharing
scheme according to the financial performance of the company.
The manufacturing of tools is an extremely complex system
consisting of various interacting, interrelated and
interdependent processes. The knowledge with regard to the
production of these tools is completely new for Indonesia. The
quality of the products depends on the excellent craftsmanship
of the employees.
Chain effects
The establishment of the joint venture contributes to the
automotive production chain in Indonesia. Fastener
manufacturers will benefit from the new technological expertise.
They will be able to purchase locally produced high quality tools,
which will improve the quality of their products and will
therefore open new markets. Approximately 25 companies will
benefit from this project (for coating, heat treatment,
maintenance of machines, transport etc).
Other impact
The project partners will cooperate with several knowledge
institutes for knowledge exchange, such as Universitas
Indonesia (UI), Polman Bandung and Politeknik ATMI. Several
guest lectures will be organised at the university. For several
students of the vocational training schools internships will be
offered by the joint venture.
Page 153 of 279
Nepal
PSI11/NP/01
Production of Animal Vaccines
Location
Kathmandu Valley
Sector
Biotechnology
Applicant
Hester Biosciences Limited, Ahmadabad, India
Local partner
Him Electronics PVT Ltd, Kathmandu, Nepal
Start project
01 July 2011
End project
31 December 2013
Total budget
Goal of the project
To set up a modern animal vaccine manufacturing plant in Nepal with a capacity of 10 million
doses of PPR (Peste des Petits Ruminants) and 10 million doses of CSF (Classical Swine
Fever) vaccine and a turnover of € 520,000.
Abstract
The applicant, Hester Biosciences (Ahmadabad, India), is the second largest producer of
poultry vaccines in India. To meet the increasing international demand for animal vaccines,
Hester is seeking ways to expand its production capacity and extend its product range.
Internationally, demand for PPR (Peste des Petits Ruminants) vaccine and CSF (Classical
Swine Fever) vaccine is much higher that supply. However, India does not allow production
of these vaccines, as the diseases do not occur in India (Only vaccines based on the India
strain are allowed, while international markets demand the Nigerian strain).
Therefore, Hester aims to set up a production plant in the Kathmandu Valley, Nepal in joint
venture with Him Electronics, part of the Golchha organisation, one of Nepal's top-three
industrial houses. The joint venture will produce for the local market (5% to 10%), but most
of the production will be for international sales. The project will the first commercial
production of animal vaccines in Nepal and create 66 direct jobs (30 basic-, 36 medium-/
high-level). All staff will be trained on the job in the production facility of Hester Biosciences
in India and later on in the new plant in Nepal. The production plant will meet international
bio-security (BDL-2) and quality standards (GMP, OHSAS, and ISO 14001:2004).
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Vaccine Production plant established.
Staff recruited and trained.
Marketing and sales programme established in Nepal.
(International) business expansion & certification.
CSR aspects
The plant will be certified for ISO 9001:2008 and GMP. In addition, standards for
ISO 14001:2004 and OHSAS 18001:2007 will be introduced, but these certifications can only
Page 154 of 279
be obtained 12 to 24 months after project completion. The bio safety standards will adhere
to BSL-2 criteria.
Impact
Long term economic
activity
With in two years, the partners expect to invest another
€ 1,5 million in expansion and diversification, adding 6 new
vaccine types. This will double their expected turnover from
€ 520,000 to € 1,100,000.
Employment and
working conditions
The project will create 66 jobs (30 basic-level, 36 medium-/
high-level), increased to 200 (90 basic, 110 medium/high) after
follow-up investments. Salaries will be at least 20% above
minimum wage. Working conditions will be up to international
OHSAS and ISO 14000 standards.
This high tech project will transfer knowledge in these areas of
expertise: veterinary sciences, animal vaccine production
procedures and quality assurance in the supply chain.
Chain effects
The project will create 25 indirect jobs with the 6 (sub)dealers
in Nepal.
Environment
The impact on the environment will be neutral, as the project
takes adequate measures (BSL-2 and ISO 14001:2004
standards).
Position of women
At least 30% of the staff will be female, including medium/highlevel positions.
Other impact
This project will improve the availability of animal vaccines in
Nepal (and other developing countries).
Page 155 of 279
Nepal
PSI11/NP/02
Certified Herb extracts from Nepal
Location
Kailali district
Sector
Organic agriculture
Applicant
Biosynergy A/S, Svendborg, Denmark
Local partner
Chaudhary Biosys Nepal Pvt. Ltd, Lalitpur, Nepal
Start project
01 July 2011
End project
30 June 2014
Total budget
Goal of the project
To organise 220 farmers and collectors of herbs for production of high quality turmeric,
ginger and soap nut and setting up a processing facility to extract 36 tons of herb extracts
annually and a turnover of € 475,000.
Abstract
With six climate zones, where a range of 7,000 different herbs grow, Nepal is a unique
location for the processing of herbs. The basic rationale for this project stems from the
increasing demand for herbs and herbal products in international markets (EU in particular).
The applicant, Biosynergy A/S (Skaro, Denmark), has been involved in Nepal's herb sector
since 2003. Together with Chaudhary Biosys Nepal Pvt. Ltd, they want to develop a new
organic herbal supply chain in Nepal, involving 220 outgrowers and collectors of wild herbs.
The project will obtain FairTrade certification and introduce FairWild certification in Nepal. In
addition the company will become ISO 22000 certified.
The 25:75 joint venture will setup a processing facility in Kailali district (Far Western Region)
and organise outgrowers en collectors in the surrounding districts. Processing fresh herbs
into (semi)finished goods for export, will add value in Nepal, ensuring a better price for
farmers/collectors in some of the poorest communities in Nepal.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Processing factory established.
Raw material sourcing set-up.
CSR aspects
The joint venture will be certified under the ISO 22000 standard, all extracts will be certified
organic and FairTrade/FairWild. In addition, the joint venture will extent the CSR activities of
CBN in the local communities where they source the raw materials.
Salaries will be at least 10% above minimum wage and 10% of the company's profit will be
deposited for the benefit of the employees.
Page 156 of 279
Impact
Long term economic
activity
Within two years, the partners expect to invest another
€ 650,000 in expansion in two directions: more her sorts and
new products based on extract (e.g. powder capsules). This will
increase their expected turnover from € 475,000 to € 750,000.
Employment and
working conditions
The project will create 37 direct jobs (14 basic-level,
23 medium-/high-level), increased to 59 (21 basic, 38 medium/
high) after follow-up investments. Salaries will be at least 10%
above minimum wage. Working conditions will be up ISO 22000
standards.
This project will transfer knowledge in these areas of expertise:
herbal extraction, supply chain management, marketing in EU
market. More importantly, 220 farmers and collectors will be
trained in sustainable growing and harvesting of natural
resources, while informing them on what is a fair price for their
goods.
Chain effects
This project can be a catalyst in involving other (private sector)
players to become active in an important niche of Nepal: herbs.
With the ISO 22000 certification and FairTrade/FairWild
practices, this project can be an inspiring example.
Environment
The impact on the environment will be positive, as the project
promotes sustainable harvesting to prevent degradation of
natural resources (organic and FairTrade/FairWild
certifications).
Position of women
At least 6 women will be employed in medium-/high-level
positions. Cultivation and collection of herbs is traditionally
being done by women. This project and the FairTrade/FairWild
certification will be beneficial for their empowerment.
Other impact
The project will reach and empower some of the poorest
communities in Nepal. The CSR activities targeted to the local
communities where the joint venture sources its raw materials,
will contribute to better awareness of sanitation and health and
improve their livelihoods. The village groups will put in a part of
the earnings from the raw materials in a sort of trust fund,
which will be double by the company. The villagers can decide
on how the funds will be applied (e.g. new equipment,
insurance against failed crops, etc).
Page 157 of 279
Nepal
PSI11/NP/03
Hybrid seed production in Nepal
Location
Kathmandu Valley
Sector
Seed production
Applicant
North South Seed Ltd, Dhaka, Bangladesh
Local partner
CG Seeds and Fertiliser Pvt. Ltd, Kathmandu, Nepal
Third partner
Lal Teer, Kathmandu, Nepal
Start project
01 July 2011
End project
30 June 2014
Total budget
Goal of the project
To establish the production of seven hybrid seed varieties in collaboration with 200 contract
growers. A seed processing plant with an annual capacity of 508 tons will be setup in
Biratnagar along with a local distribution and sales network, creating a turnover of
€ 1.5 million.
Abstract
North South Seed Ltd is part of the Lal Teer group in Bangladesh. This company started in
1995 with the breeding and production of hybrid and high yielding vegetable seeds together
with Dutch owned East West Seed International. Over the last few years they have exported
their hybrid seeds through their Nepalese partner CG Seeds. Demand for hybrid seeds in
Nepal is high and growing, but there is no local, commercial production of hybrid seeds. The
two partners aim to set up a joint venture that will be the first Nepalese seed company that
will produce hybrid seeds (vegetables, rice and maize) To this effect, 200 seed growers will
be contracted and trained and a seeds processing plant will be established. Furthermore, a
network of seed traders will be developed in the main agricultural regions of Nepal.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Seed processing plant established.
Hybrid seed production programme with contract farmers set up.
Marketing, sales and distribution system set up.
Business development, registration and commercial sales.
CSR aspects
The joint venture will develop a corporate social responsibility policy during the inception
phase of the project ensuring good working conditions and preferred recruitment of women
and people from underprivileged minorities (Dhaliths). They will ensure fair prices for the
seed growers.
Page 158 of 279
Impact
Long term economic
activity
Within two years, the partners expect to invest another
€ 1,000,000 in extra capacity to process and distribute
additional varieties in and increased production. This will
increase their expected turnover from € 1.5 million to
€ 2.5 million.
Employment and
working conditions
The project will create 102 direct jobs (47 basic-level,
55 medium-/high-level), increased to 111 (49 basic-,
62 medium-/high-level) after follow-up investments. Salaries
will be at least 10% above minimum wage.
This project will transfer knowledge of hybrid seed production of
five vegetable and two cereal crops, including processing,
storage quality control and sales and marketing. Hybrid seed
production is new in Nepal.
Chain effects
This project will improve the incomes, knowledge and
livelihoods of 200 contracted seed growers. It is estimated that
seed growers can increase their earnings four times if they
move from OPV to hybrid seed production. In addition, it will
create 11 indirect jobs for distribution and sales agents.
Position of women
At least 20% women will be employed by the joint venture,
including medium/high-level positions. 40% of the outgrowers
will be female.
Other impact
The project will improve the availability of affordable hybrid
seeds in Nepal and thereby support in the increase of
agricultural output of Nepal.
Page 159 of 279
Pakistan (PSI Plus)
PSIP11/PK/22
Voice Biometric authentication in Pakistan
Location
Karachi
Sector
ICT/Finance
Applicant
VoiceCash Dubai Holding B.V., Arnhem, The Netherlands
Local partner
Pakistan MNP Database Limited, Islamabad, Pakistan
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To sell 2 million voice authentications a year.
Abstract
A major part of the Pakistani population has to travel monthly to a major town for financial
transactions like receiving pensions. Often formal documentation is required to give "proof of
life". This is costly for both the person involved and the financial institution. Most Pakistanis
have access to a mobile phone.
The applicant, VoiceCash Dubai B.V., is the owner of a proven software tool allowing voice
authentication (Voice Biometric System).
The local partner, Pakistan MNP Database Limited, has access to the complete mobile phone
network.
The joint venture will set up a service for financial institutions to receive "proof of life" by cell
phone. This service can be extended to bank transactions, allowing branchless banking.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
ICT infrastructure installed and offices equipped.
Production and training.
CSR aspects
The partners have no formal CSR policy. For this project they will establish one as part of
result 3. For result 4 they want to comply with ISO 2001 and BS 7,799. Pakistan MNP
Database Limited just complies with the national laws and pays its higher personnel
according to market prices. They offered to improve their record in the joint venture.
Page 160 of 279
Impact
Long term economic
activity
Two years after completion, the joint venture plans to invest
another € 750,000 to be able to process 5 million transactions for
a turnover of € 2.1 million. The partners want to extend their line
of service to other kind of financial transactions. Their ambition is
to become a key player in branchless banking.
Employment and
working conditions
Two years after completion 300 are to be employed (75 basic,
225 medium/high). Wages vary from 150% of minimum wage
to 750%. In office environment working conditions are relatively
good. Workers will receive fringe benefits like pension, health
insurance, transportation, training, meals etc.
The Voice Biometric System technology opens a whole new line
of business. Employees will learn new skills in various fields, like
ICT, branchless banking, customer service, sales, applying to
international quality standards etc.
Chain effects
If successful, there could be major chain effects. The service
makes it possible to safely use the mobile network for all kind
transactions. Because of its central and neutral position, the local
partner can guarantee access for all. This opens a whole new
range of business perspectives, especially towards the "bottom of
the pyramid". It could also facilitate micro credits etc.
Position of women
Impact on the position of women is neutral, although it would
enable business women to do financial transaction from home.
Page 161 of 279
PSIP11/OT/02
Transcend Services
Location
Bethlehem
Sector
ICT
Applicant
Marketing Strategy and Action Ltd, Kenilworth, United Kingdom
Local partner
Nassim Nour, Beit Jala, The Palestinian Authority
Third partner
Russ Sandlin, Kuwait City, Kuwait
Start project
01 June 2011
End project
31 May 2012
Total budget
Goal of the project
To establish a call centre with an annual sales of at least 50,000 seat/hours and a turnover
of at least € 400,000.
Abstract
The partners will establish a commercial call centre to provide services to international
customers in the Arab Gulf Region, North America and Europe. The call centre will be located
in Bethlehem. The centre will be equipped for 56 employees. The competitive advantages are
that Palestinian employees are high educated and have a clear Arabic and English accent.
This makes them suitable for Bilingual (Arabic/English) voice services. The partners will start
with simple outbound services and later on move into high end service.
Applicant MSA is strategic marketing consultancy owned and managed by Jerry Marshall.
Local partner Nassim Nour is Palestinian entrepreneur; third partner Russ Sandlin is an
expert in the call centre industry. Nassim Nour will be director and responsible for the daily
operations. Jerry Marshall will be marketing director and responsible for marketing strategy
and sales. Russ Sandlin will be sales director and responsible for direct sales and on-line
promotion.
Results
• Result 1 : Company established and MoUs signed.
• Result 2 : Premises secured and equipped.
• Result 3 : Sales contracts signed, staff recruited and trained, marketing collateral
produced.
CSR aspects
The partners will recognise and endorse the practice of operating in an ethical, socially and
environmentally responsible manner in line with the 10 principles of the UN Global Compact.
The partners want to set an example of good governance and financial transparency through
adopting best international practice and internal control systems. A comprehensive CSR
policy will be established as part of the deliverables during the start-up phase of the
company.
Page 162 of 279
Impact
Long term economic
activity
The partners want to double and later triple the capacity of the
call centre. Once successful, they want to establish more call
centres in other major cities in the West Bank such as Hebron,
Nablus and Ramallah. The expected follow-up investments is
€ 114,000. This investment consists out of hardware and
training, and marketing to secure additional contracts. Thereby,
they will invest into a larger facility to enable employing a
larger workforce.
Employment and
working conditions
56 people will be employed by the end of this project.
43 employees will be basic-level agents. Others positions will
be centre manager, operations manager, team leaders, quality
assurance, HRM and ICT specialists. Basic-level staff will be
paid USD 500 per month. This is slightly above industry
minimum. All staff will get medical insurance and a 13th month
bonus at the end of their service. A cafeteria will be contracted
and subsidised to allow affordable meals during working hours.
The partners will employ mostly fresh graduates. Skills in
overall management of call centres, training, networking and
marketing will be transferred to local employees. The
employees will become professional telemarketing experts,
providers of high quality customer service or IT technical
experts. Employees can use these skills in other (future) jobs.
Chain effects
If this project succeeds it can open doors for other call centres
in the Palestinian Authority. The ability of Palestinian
employees to speak clearly in both English and Arabic will give
clients in the Middle East the comfort of customised services to
end users.
Environment
The project will have a neutral effect on the environment. The
partners will mainly use computers as the main service
machines. Heating and cooling will be the only taxing action on
the environment.
Position of women
Women will be especially targeted for employment and
encouraged to apply at all levels. Highly qualified unemployed
mothers will be given priority. Some difficulty might be faced in
recruiting women for the night shifts given the strict traditional
culture within the Palestinian Authority. The partners will be
meeting with the parents of prospective women staff to ask for
special permission to allow their daughters to work at night.
They will provide door to door transport for all night shift staff.
Other impact
Finding a job straight after graduation is very difficult in the
Palestinian Authority. This project will enable many new
graduates to become employed shortly after graduation.
Page 163 of 279
PSIP11/OT/04
High quality cream and processed cheese
Location
Hebron
Sector
Cheese factory
Applicant
Veldkamp Technische Service B.V., Raalte, The Netherlands
Local partner
Al-Jebrini Dairy & Food Industries Ltd, Hebron,
The Palestinian Authority
Start project
01 July 2011
End project
28 February 2013
Total budget
Goal of the project
Establish a cheese factory which produces a total of 400,000 kg of processed and cream
cheese, with an annual turnover of € 3.6 million.
Abstract
The partners will establish a cheese factory in Hebron. The cheese factory will produce
processed cheese and cream cheese. These products will be sold to wholesalers and retailers
within the Palestinian Authority. The partners have signed preliminary buying contracts with
4 large wholesalers and retailers. The partners will contract 6 local dairy farmers. The
farmers will be trained on international quality and hygiene standards and will supply the
factory with milk.
The partners are Veldkamp, a turn key machinery supplier for the food- and dairy industry,
and Al-Jebrini, a dairy processing company and dairy farm located in Hebron. Veldkamp will
be responsible for the implementation, project management, maintenance and continuous
technical support. Al Jebrini will be responsible for the daily management, distribution and
sales.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Joint venture has been established.
Construction of factory, development of training programme.
Production lines installed.
Employees recruited, farmers trained.
Finalisation and sales.
CSR aspects
The cheese factory will operate according to Good Manufacturing Practices and comply with
the OECD guidelines, ILO declaration and UN convention. The partners will obtain HACCP
certification at the end of the project. The project partners will draw up a quality and safety
manual and an environmental plan. As part of this plan, the cheese factory will not emit
hazardous waste or gasses or use any materials that are damaging to the environment. Also
it will re-use most of the water.
Page 164 of 279
Impact
Long term economic
activity
After the completion of this pilot the partners want to expand
the business by adding a new production line to produce Edam
and Gouda cheese. Total additional investments required for
this new production line amounts € 900,000. This investment
consist out of R&D, new processing and packaging equipment.
The additional turnover expected from these investments is
estimated at € 1,200,000.
Employment and
working conditions
This project will employ at least 37 full-time employees. The
partners will implement a HRM policy that is in line with
international and national labour laws. Salaries will be at least
180% of the local minimum wages for a working week consists
of 48 hours. The partners will pay maximum health care
insurance and health care for employees and their families.
Employees will receive benefits like food tickets, working
clothes, shoes and protection gear.
The partners will transfer knowledge about the production of
processed cheese. This is a new production method for
Palestine. The partners will also transfer knowledge with
regards to HACCP quality and hygiene standards in the dairy
production process. HACCP standards are not applied in any
dairy company within the Palestinian Authority. In addition, the
partners will train 6 suppliers (dairy farmers) on quality and
hygiene standards.
Chain effects
Six dairy farmers will be trained to meet international quality
and hygiene standards. This will give the dairy farmer an added
value. Plastic packaging companies will also benefit. Local
transport companies, wholesalers, retailers and advertising
companies will benefit from this project.
Environment
The partners will meet environmental requirements. They will
provide an environmental plan to the authorities. The partners
will ensure that water is used and re-cycled. The cheese factory
will apply the same water re-using practices as currently applied
at Al-Jebrini. It will for instance re-use cooling water as drinking
water for cows.
Position of women
The partners will actively promote the employment of women at
the factory. The partners will employ at least 30% women.
Other impact
The partners will offer one (1) to two (2) internship positions
each year and offer possibilities to execute short term practical
assignments at the factory.
Page 165 of 279
PSIP11/OT/05
Natural soap from Nablus
Location
Nablus
Sector
Industry
Applicant
Terwel B.V., Amsterdam, The Netherlands
Local partner
Nablus soap Ltd, Nablus, The Palestinian Authority
Start project
01 June 2011
End project
30 September 2012
Total budget
€ 1,400,000 (60% PSI contribution = € 892,500);
Goal of the project
Develop a soap making factory in Nablus with a capacity of 220 tons annually to make
exports to western markets under Fair Trade, organic and Hallal certifications.
Abstract
Nablus Soap (local partner) is a small company that produces soap on a small scale,
traditional way. In 2010 the owner of Nablus Soap visited the Netherlands via the
Matchmaking Facility. From that visit plans were developed between Terwel and Nablus Soap
to increase the production and start export to the increasing market for natural soap in
Western Europe. In the project the production will be increased to 220 tons a year in
different flavours. The consortium will establish a joint venture for the production facility. For
the distribution in export markets, Terwel B.V. will be responsible.
The partners aim for certified products: initially the Hallal standards will be implemented but
also organic and fair trade certifications will be added to the product range. Employment will
increase from 12 people now to 36 at the end of the implementation period and will be
doubled again 2 years after the project implementation.
Chain effects will be effected by the project by sourcing the raw materials (olive and other
oil) from the West Bank and by developing packaging supplies. The joint venture will pay fair
salaries to the workers and provide adequate training within the project.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Preparations for the joint venture.
Building the factory and installation of the equipment.
Recruitment and training of personnel.
Production and obtaining certifications; further development of business and
marketing plans.
CSR aspects
The partners are planning sufficient training for the employees to carry out the jobs properly.
The wages will be fair; for the production workers at least 25% above minimum wages will
be paid. Beside a social security package will be given to the employees. Working conditions
Page 166 of 279
will be good. The partners expect that minimum 12.5% of the workforce will be female and
strive for a higher number of female workers.
By applying an effective heat management system in the production equipment,
environmental issues are addressed.
Impact
Long term economic
activity
The partners intend to invest substantially after the project in
1) increase in the production capacity,
2) equipment for liquid soap production and
3) the building.
Their estimate is a total investment of € 1,500,000. With that
additional investment another 30 jobs will be created.
Employment and
working conditions
The number of jobs created by the project in the joint venture
is 24 which means tripling the workforce presently employed by
Nablus Soap. Salaries will be above the minimum and the
partners will pay good attention to the working conditions in
the factory. Besides social benefits and health services will be
added to the benefits.
The quantity of knowledge that will be applied in the project is
substantial. First the company workforce will be trained in
modern production techniques, but also the knowledge on
certified production will be applied.
Between the partners also marketing and distribution
knowledge will be transferred.
Chain effects
The chain effects will be substantial: a number of regional
companies will be involved in the design and production of the
packaging material. Preferably the raw materials will be
sourced from the region. Especially for organic and Fair Trade
this means also development of the market of that type of raw
material. The consortium however leaves it to their suppliers to
stimulate increase of production on the specific raw materials.
Environment
The production process will be as environmental friendly as
possible.
The production process itself does not create a heavy burden
for the environment. Energy consumption will be minimised by
choosing the right equipment and the process itself requires
little input of water.
Position of women
The inclusion of female workers in the workforce of the factory
will be minimal. For cleaning and office personnel the partners
can assure women will be employed; in case there will be
suitable women candidates for other positions, the partner
certainly are in favour of employing them.
Other impact
Sponsoring social events is mentioned as an additional activity.
Page 167 of 279
PSIP11/OT/09
Environmental olive project
Location
Jenin
Sector
Environmental
Applicant
1975 Cleveland Incorporation, Powell, United States of America
Local partner
Tawfiq Al-Sayed & Sons for General Trading, Jenin,
Start project
01 June 2011
End project
30 October 2011
Total budget
Goal of the project
To establish a processing facility to remanufacture 360 ton of coal, 350 to of animal feed and
50 ton of industrial oil annually. Annual turnover will be € 800,000.
Abstract
The partners will establish a production facility to remanufacture olive oil waste (called jift)
into coal, animal feed and industrial oil. The facility will be located in Jenin and HACCP and
ISO certified. Olive oil waste contains 60% of wood, 35% of pulp and 5% of oil. In the
production process these 3 elements will be separated. Wood will be remanufactured into
coal and exported to the USA. The pulp will by distributed to an animal feed factory in
Ramallah. And the oil will be sold to local soap factories.
Cleveland will be responsible for the re-packaging, marketing and distribution of the coal in
the USA. Thereby, their local representative in Jenin will assist Mr Tawiq with the
implementation of the machinery, training of the employees and daily management. Tawiq
Al-Sayed Company will be responsible for the daily management, collection of the jift, and
local distribution and sales.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Project management.
Construction of the building.
Installation of equipment.
Hiring and training.
CSR aspects
The partners want to be a pioneer in the area of corporate social responsibility and an
example for other companies. Partners are aware of the importance of integrating the CSR
into the project. They will develop a CSR policy for the new joint venture.
Impact
Long term economic
activity
Page 168 of 279
After the completion of the project the partners will invest in
increasing the effectiveness of the production line. In addition
they are planning to invest in a feedstuff plant and production
line of organic fertiliser (compost). The total follow-up
investment will amount € 370,000.
Employment and
working conditions
The partners will employ 21 employees. Salaries will be 100%
above the average wage in the Palestinian Authority. The
employees will be offered good working conditions. Employees
will receive benefits such as health insurance, pension plan,
daily lunch, transport to and from the facility.
The technology to extract wood, pulp and oil from jift and
remanufacture it into new products is completely new for the
Palestinian Authority. The partners will transfer this knowledge.
The hardware supplier will transfer the knowledge of the
production line.
Chain effects
Several parties will benefit from this project. Olive oil producers
will benefit from this project because the jift will be collected at
there facility. This will save these companies the costs for
disposal and transport. Soap factories will also benefit from this
project. They will be able to buy industrial oil for competitive
prices. The animal feed factory in Ramallah will benefit from
this project, because they will be able to buy pulp for a
competitive price.
Environment
This project will have a positive impact on the Palestinian
environment. The partners will collect the jift from the olive oil
producers. They will remanufacture it into new products.
Nowadays, large quantities of jift are dumped. This leads to
contamination of the ground water, attraction of insects, bad
odours and health damaging. Also, random and uncontrolled
burring of jift leads to dangerous situations. The partners will
process the wastewater. The water will become available for
irrigations purposes.
Position of women
The partners will offer equal opportunities to both men and
women. 50% of the employees will be female.
Other impact
The partners will remanufacture waste into new products. This
can create a better awareness of waste treatment in the
Palestinian Authority.
Page 169 of 279
PSIP11/OT/2E
Organic Palestinian Dead Sea salt
Location
Jericho
Sector
Food
Applicant
Hisham Younis and Partners Co., Amman, Jordan
Local partner
West Bank Salt Works Ltd, East Jerusalem,
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
Upgrade of an existing salt refinery plant to an organic, ISO and HACCP certified unit to
produce 3,400 tons of salt annually at the end of the project and, additionally, to establish a
packaging facility for the organic consumer salt for export to the Middle East, US and EU
markets (60% of total production).
Abstract
The local partner is a Dead Sea salt producer that has PA as his market, while the applicant
sells table salt in the Middle East and is looking for new sources for his supplies.
The refinery is based in a military zone north of the Dead Sea on the West Bank, with an
Israeli Defence Force base at 200 m distance. The packaging facility will be located in Jericho
14 km from the refinery.
The applicant Hisham Younis and Partners Co. (2005) is a marketing, distribution and sales
company for raw Dead Sea salt, iodised table salt, bath salt and Dead Sea mud products.
The local partner is West Bank Salt Works Ltd (1967), they produce bulk iodised table salt,
packed in 25 kg units for the local intermediary Palestinian market.
The partners will set up a joint venture.
The project will upgrade and professionalise the refinery firstly to renew outdated equipment
and secondly to become organic, ISO and HACCP certified in order to be able to enter new,
high quality table salt markets. In addition, they will establish a packaging facility to supply
consumer products that will meet the demands of the international high-end consumer
markets. This will make it possible to export to the Middle East (Jordan, Syria, Lebanon and
the Gulf States), the US and the EU.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Page 170 of 279
Inception.
Upgrading of the buildings and installation of the machinery.
Recruitment and training.
Operational phase.
CSR aspects
CSR is anchored in the project through ISO, HACCP and organic certification. They aim to
minimise the impact on the environment. In addition, they will comply with the principles of
the Ethical Trading Initiative on employment conditions like living wages, working hours, et
cetera.
They will emphasise health and safety on the work floor. They do not intend to set up a
separate CSR policy for the joint venture.
Impact
Long term economic
activity
The partners plan follow-up investments up to the amount of
€ 650,000. These will include expansion of the refinery
(€ 350,000) and doubling of the capacity of the packaging
facility (€ 300,000). Turnover two year after the project will
amount to € 900,000.
Employment and
working conditions
At the end of the project a total of 18 new staff – 11 basic-level
and 7 medium-/high-level staff – will be full-time employed.
Together with the 10 present staff in the refinery, the total
number of employees will amount to 28.
This will be a total of 46 two years after the project, including
36 new employees – 20 basic-level and 16 medium-/high-level
– and 10 employees that already are employed at this moment.
Of the 18 new staff, 5 will be needed additionally for the
refinery and 13 for the packaging.
The partners will develop a HRM policy in accordance with
international standards and Palestinian Labour Law, and will
include: health care insurance, five-day working week, free
lunches, transport to and from the factory and financial support
for studying children.
Most of the knowledge on ISO/ HACCP/ organic production is
not entirely new to the country but certainly insufficiently
available in the country.
Chain effects
The project has no direct chain effects as the main raw material
will be produced by the local partner themselves.
Environment
The partners are committed to reduce the impact of their
activities on the environment, and are committed to organic
production methods. They apply a completely natural salt
extraction and refining process, no chemicals are used during
the extraction and refinery processes. Water used during the
process is transported back to the Dead Sea and waste salt is
supplied as an input to leather companies. According to
Palestinian law the partners are obliged to submit an
Environmental Impact Assessment (EIA).
Position of women
At least 25% of employees will be female for functions of
secretary (medium-level), bookkeeper (medium-level), and
operators (basic-level). There are no female managers (highlevel) proposed.
Page 171 of 279
PSIP11/OT/2F
Environmentally friendly plastics for
the Palestinian Authority
Location
Hebron, West Bank
Sector
Industry
Applicant
Dutch Printing Innovations B.V., Barneveld, The Netherlands
Local partner
ZMZM for Plastic Industries Co., Beit Kahil – Hebron,
Start project
01 January 2012
End project
01 January 2014
Total budget
€ 1,500,000 (60% PSI contribution = € 978,750);
Goal of the project
To reduce waste and develop environment consciousness by the establishment of a
production facility for environment friendly plastics with an annual production capacity of
1,600 tons in the Palestinian territory.
Abstract
The project applied for will introduce the manufacturing of bio-degradable plastic to "plastic
city" Hebron and hence to the Palestinian territory.
The applicant, Dutch Printing Innovations B.V., is a small company that organises revision of
machinery in mainly the printing sector. It also deals with plastic manufacturing equipment.
In the recent past, contacts were established with the Palestinian plastic manufacturers.
Through the PSIP project on dairy packaging manufacturing that was contracted in 2010, the
contacts were re-established.
In the contacts with local partner ZMZM for Plastic Industries Ltd, the perspective for biodegradable plastic was discussed and assessed as an interesting development of the market.
The material is initially very suitable for agricultural foil and garbage bags. The introduction
of this innovative material in the regional market will be through existing contacts of the
local partner: some of them have already given their intent to buy the products. Within the
project, a used plastic collection system will be organised.
The partners will set up a joint venture with a 30/70 division for applicant and local partner.
The project will introduce an environment friendly product in the region.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Page 172 of 279
Establishment of the long term cooperation.
Facility and training plan developed.
New facility, laboratory and offices equipped.
Sales contracts signed, employees recruited and trained.
Commercial operation.
CSR aspects
The project will provide similar payment conditions and benefits for the workers as the local
partners company. The machines will all be CE approved and ISO certification will be
implemented during the project.
The waste that will be generated by the project will be recycled. A used plastic reception
desk will be organised. The cooperation with Hebron university will consists of internships
and giving assignments to students.
Impact
Long term economic
activity
The partners expect that within two years after implementing
the project, the joint venture needs to invest in an additional
co-extruder and printing equipment. The size of this investment
is approximately € 350,000.
Employment and
working conditions
The project will generate employment for 7 persons on highlevel, 13 person on medium-level and 21 persons on basiclevel. Within two years after the implementation it is expected
to increase with another 22 jobs on basic-level and 9 jobs at
medium-level. Wages will be at least 150% of the unofficial
minimum wage and the employees will receive other benefits
like health insurance, meals and good working conditions.
The knowledge on production of bio-degradable plastic is new
to the country. The specific information for this will initially be
given to the employees but also the university will benefit from
it. The information will also be shared with other producers in
the region: ZMZM is agent for the additive so it will benefit
from sharing the knowledge.
Chain effects
Direct chain effects are not many as the raw materials will for
the largest part is imported. Logistic companies will benefit
from increased sales.
Environment
By introducing an environment friendly product, the project is
very beneficial to the environment. This even is increased by
the activities on collection and recycling used plastic.
Position of women
The partners aim to employ 30% women in it workforce; of
these 13 women, the partners plan to employ at least 4 in
high-/medium-level positions.
Other impact
In cooperation with authorities, environment conscience
projects will be implemented.
Page 173 of 279
The Philippines
PSI11/PH/21
Coir Pith and Husk Processing Project in Mati,
Mindanao Philippines
(Growrite Substrates Philippines Corp.)
Location
Mati – Mindanao
Sector
Agriculture
Applicant
Holland Potgrond B.V., Poeldijk, The Netherlands
Local partner
Equal Margins Mindanao Trading, Davao City, The Philippines
Third partner
Euro Substrates Ltd, Pittakotta, Sri Lanka
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To establish a sustainable business in processing and marketing of coir pith and coconut husk
into high value horticultural substrates for export markets with a maximum output capacity
of 6,000 metric tons annually.
Abstract
The project will establish a processing plant which will process waste coir pith and husks into
high value agricultural substrates with a capacity of 6,000 Mtons year. World demand for
high value coco-peat substrates is growing rapidly (10% to 15% per year). Products will be
marketed primarily in Asian and US markets. The Applicant already operates similar
processing plants in Sri Lanka and India producing mainly for European markets. While there
is already production of low value coco-substrates in the Philippines, processing of high value
coco-substrates including mechanical drying is new. The project will reduce waste problems
at (existing) coir fibre mills and will add value to the husk and thus raise income for farmers.
The project will also run a research programme aimed at quality improvement of coco-husk
and indirectly stimulating profitability of coconut farming. The production plant will employ
58 persons.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Construction and plant establishment.
Capacity building.
Production, CSR certification and spin-off.
CSR aspects
The joint venture company Growrite Substrate Philippines will adhere to the Van der Knaap
group CSR policies and will become UN Global Compact participant adhering to the
Ten Principles. The company will ensure clean and healthy working conditions (and facilities
like toilets and canteen). Next to normal salaries, the company will provide housing
Page 174 of 279
allowances, ensure the weekly availability of medical care to employees and their families
and provide a free meal daily to workers. Workers are free to join unions and will have free
access to the employee manual.
Impact
Long term economic
activity
The partners regard the joint venture Growrite Substrate
Philippines as a long term investment. Within two years after
the PSI project phase the company expects to further invest in
a tree propagation unit to supply farmers with more suitable
coconut plants (€ 650,000) and in facilities to produce new high
value coco-peat based products (€ 425,000) These total
investments of € 1,075,000 will lead to additional turnover of
€ 650,000 annually, leading to a total turnover of
approximately € 1,655,000.
Employment and
working conditions
The company will employ 58 fte (3 senior management, 7
middle management, 3 research and development, 45 workers)
Standard local wages will be paid with secondary remuneration
in housing allowances, medical assistance and group insurance
and a free daily meal. In addition bonus salary up to 10% can
be earned.
The project will offer a group insurance to its workers and will
contract a doctor who will receive the workers and their direct
families once a week.
The project will add a new element to the value chain in the
coconut processing sector i.e. upgrading the present waste
products husks and coco pith into high value horticultural
substrates. The project will introduce the required new
technologies and skills. Furthermore, the research activity
under the project will generate information about new coco nut
tree species with easier growth and more production so coconut
growers will be able to generate better returns of their
businesses in the future.
Chain effects
Local communities around the present coir fibre processor will
benefit since the project will absorb a share of the present
waste coir pith now dumped in nature. At least 5 coconut
processors (fibre and coconut based foods ) will benefit from
getting rid of their waste. Trained coconut growers (at least 20)
will benefit as suppliers of uncontaminated husk at higher
prices. Furthermore, transportation companies and export
agents will benefit in transport and shipping of containers and
finally the micro economy surrounding the project, as suppliers
of food, garages for maintenance of the cars, etc.
Environment
The project does not create risks to the environment. It
improves the environment by reduction of dumping of
important quantities of waste coir pith from coir fibre mills. The
saline water produced by washing of the raw coir pith will be
used in watering of the research/demonstration plot where
coconut trees grow well on salty water. An Environmental
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Impact Assessment will be executed.
Position of women
Most of the key positions within the project will be occupied by
women, the Managing Director (1 fte), the whole quality
management department (4 fte), HRM (1 fte), the finance and
bookkeeping (2 fte) and the logistics department (1 fte). Of 14
management positions, 9 are for women. For the workforce,
the choice between women and men will be determined by the
physical workload of the job. An expected 35% of the functions
can be filled by women.
Other impact
The tree investigation area will generate high quality
information to the Philippine Coconut Authority (PCA) where
the figures periodically will be presented in seminars. The
coconut industry is very important for the Philippines.
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Vietnam
PSI11/VN/03
Creating added value to the Mekong coconut waste
streams
Location
Tien Giang Province, southern Vietnam
Sector
Industry
Applicant
F. Bergwerff Beheer B.V., Numansdorp, The Netherlands
Local partner
Phong Phat Co. Ltd, Cho Gao, Vietnam
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To set up a new joint venture and coconut yarn manufacturing industry in the Mekong Delta
in Vietnam capable of producing 54 tons of industrial standard yarn per month and
employing 120 people. The expected sales volume at the end of the project is € 1,100,000.
Abstract
The business partners intend to produce high quality industrial grade coconut yarn for export
out of the fibres in the coconut husks. A farmer network will be set up to secure raw
materials. In close cooperation with IFAD (United Nations) these farmers will receive specific
training. The project will directly create a minimum of 120 jobs in the rural Mekong Delta,
south Vietnam. The income of 400 collaborating farmers is expected to be positively
influenced.
Industrial grade yarn is a semi finished product which can be used e.g. in the production of
floor mats. The world market leader in floor mats for the professional industry, the Dutch
company Rinos B.V., is currently dealing with a shortage of coconut yarn and with irregular
supply. It experiences a growing world-wide interest for this product. Rinos therefore
strongly supports the initiative and has committed itself to buy the initial output of the
project and to also provide technological support.
This project aims to process still underutilised waste into valuable products which prevents
this waste from building up. Its success may contribute to the foundation of a new,
sustainable industry in the Mekong Delta, where Vietnam's coconut sector is concentrated.
This sector is currently fragmented, inefficient and lacks a professional processing industry.
The coconut growing farmer population in the Mekong Delta is extremely poor and most of
the value is still added abroad in countries like China, India or Sri Lanka where Vietnamese
raw coconut materials are exported to and completely processed.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishment of the processing facility.
Partnership with farmers established.
Production and Business plan.
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CSR aspects
The informal CSR policy of both partners will be implemented in the project:
• Striving to have a well balanced employee amount with equal numbers of men and
woman.
• Setting European standards for safety (VCA) and conduct an ISO 9001 Certification.
• No child labour at suppliers, own businesses and customers.
• Have an independent employee board that discusses issues regularly with the
management board and shareholders.
• Being as environmental friendly as possible, always striving to reduce waste output to
zero.
• Manage the processes environmental friendly with the help of ISO 140000.
• Conducting community support structural with medical care and financing small scale
community initiatives whenever possible.
Impact
Long term economic
activity
The investment in expansion after the project's ending is
estimated € 650,000. This will be a second processing line,
trucks and an expansion of the building. The original
cooperation between the partners will sustain:
F. Bergwerff Beheer B.V.(and ECO2) will provide capital,
international sales contacts, engineering and project
management while local partner Phong Phat Co. Ltd will be
running the factory, take care of raw materials management,
logistics and will maintain and expand contacts with the local
communities and expand the regional base.
Employment and
working conditions
At the end of the project 120 people will be involved in
operating the factory.
Indirect employability will be substantial: the collection of
coconut husks by the 400 farmers (and co-workers) and the
extra logistics involved will generate at least another 50 jobs.
Workers are expected to received 25% extra on top of the
minimum wage.
In order to prevent the employees from leaving it will be
necessary to pay an extra premium above the market rate.
The factory will be mainly engineered by ECO2 engineers and
Rinos (one of Bergwerff's companies), complying with Dutch
Safety standards. Besides this a safety officer and quality
officers will be employed. Through the establishment of a
Worker Board problems can be addressed directly to the
management and shareholders.
A central kitchen will provide free basic meals. A small medical
centre medically educated personnel will serve employees and
their families with basic aid. A doctor and a dentist will
periodically visit the centre.
Workers' young children can attend the factory's day care
facility.
An important part of the knowledge transfer will be passed on
via Rinos and the machine suppliers and their training in
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machinery operations, yarn production and quality control all of
which is new knowledge.
Also the advanced management training of the higher
management by Mr. Bergwerff is quite unique and provides an
exposure to western standards.
Chain effects
The Chain effects have an impact on the following groups:
• Strengthening the capacity of 400 small coconut farmers
(0.1 to 5 ha of coconut plantation) with TA. This may expand
in the second stage of the project to 800 to 1,000 famers;
• 24 commune/area- and village-level coconut collectors and
white meat processors;
• 10 coconut processors (here husks are collected as they only
process the copra);
• 5 candy manufactures;
• 1 or 2 local area coconut enterprises associations
(50 members).
Environment
Some positives environmental effects may be expected:
1. A reduction of the build up coconut husk waste in the
Mekong Delta;
2. A reduction of the unwanted burning of waste fibres as a by
product of peat/copra production resulting in reducing CO2
and other unwanted emissions;
3. Improved erosion control: the project stimulates the
planting of new coconut trees.
This proposed project does not generate any waste, since all the
products that enter the facility are completely processed, while
no (contaminated) waste water or other foreign materials enter
or leave the production process. Special certifications (besides
some local and regional licenses) are therefore not needed and
an EIA is not required.
Position of women
Woman will perform most of the production work in the factory
and it is expected that 90% of the production work will be done
by women. From the 120 people employed, more than 70%
(84) will be women.
The other woman positions will be: marketing manager,
financial manager and support staff, secretaries and general
assistance. The day care centre for young children will also
promote the participation of women in the production process.
The indirect employability, especially the collection of husks will
be performed by a 50/50% mix of men and women. Men in this
company will be in supportive positions in logistics and
operating heavy machinery like a decorticator.
Other impact
The promoters have indicated that after project completion a
pre-primary school may be build.
Page 179 of 279
Vietnam
PSI11/VN/06
Pilot production of high Quality sheet metal
products for export
Location
Industrial Park, nearby Ho Chi Minh city in southern Vietnam
Sector
Industry
Applicant
IteQ Boltjes Plaatwerk, Amersfoort, The Netherlands
Local partner
Under negotiation
Start project
15 August 2011
End project
15 August 2013
Total budget
Goal of the project
To set up a 60/40 joint venture for the production and export of high-tech precision and high
quality sheet metal products which will generate a turnover of € 615,237 at the end of the
project.
Abstract
The Dutch applicant ITEQ, a supplier of sheet metal products, at the moment can only supply
small series and has been looking for suppliers of larger series in Vietnam. It was unable to
find a suitable supplier because Vietnamese companies were unable to meet the high quality
requirements. In this project proposal a new joint venture between ITEQ and the local
partner will be set up for the production and export of high-tech precision and high quality
sheet metal products, which will combine the core competences of both companies. The
partners' ambition is to set up the factory at a new high-tech industrial park near Ho Chi
Minh City in southern Vietnam.
The project is unique to Vietnam because it would establish the first factory able to produce
and export these sorts of products made from variety of materials with short delivery time
against competitive price, using the latest production technology. For that reason the joint
venture will procure the necessary hardware and the Dutch applicant will transfer his
knowledge on the latest production methods in order to fully utilise the capabilities of the
machinery. The know how will also be transferred to Vietnam indirectly via a cooperation
with a local technical vocational school which will be offered internships and assistance in
setting up a curriculum for sheet metal production. The project should create 46 direct jobs
(10 women) and targets to supply the Electronics, Medical and Semi-conductor industries in
Europe and in the region the high tech markets of Japan, Taiwan, South Korea and Australia.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
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Inception.
Building (completed), office and facilities including hardware.
Pilot production.
A bankable business plan and project finalisation. ISO and HACCP certification.
CSR aspects
The joint venture partners have stated the following CSR-policy:
• Not to use of child labour & forced labour;
• To establish a zero waste production process;
• To reduce pollution and reuse and recycle materials;
• To offer employees a fair and concise terms of employment and provide them with the
appropriate resources to support their continued development;
• To develop a supplier code of conduct that extends the corporation's values to its
suppliers;
• "Work Smarter, Not Harder" by using the technology used by ITEQ Netherlands – to
increasing the flexibilities of the equipment – make use of equipments more efficiency;
• To set up a social fund for own personnel and staff by donating 10% of the profit before
tax to this fund, beginning from the second year after break even point.
The joint venture will be ISO 9001:2008 & HACCP certified.
Impact
Long term economic
activity
In the two years following on the project's completion, the
Partners will invest an extra amount of € 100,000 to improve
and expand the production capacity: production lines,
expanding assortment, extra staff and personnel recruiting and
training. It is the second phase of the joint venture's business
strategy.
In the third phase, the company will set up a sales & marketing
and customer care department, which will develop the US Dollar
related markets.
Two years after finalising the PSI project, the joint venture's
turnover will be about € 3,073,335. The joint venture will
expand her assortment to other kinds of housings for her clients
in Europe. The developers expect also that sales to foreign
investment projects in Vietnam as well as export to other
countries in region will increase and that they have a good
chance to sell their products in the Vietnamese market within
3 to 4 years. The Vietnamese supply industry is not yet
developed and there are not many professional suppliers. The
company may also receive outsourcing orders from European
clients.
Employment and
working conditions
There will be 46 full-time employees by the end of the project
(34 basic-level and 12 medium-/high-level employees). Three
years after PSI project's completion, the total full-time
employees increases to 84 (69 basic-level and 15 medium-/
high-level employees). With follow-up investments the total
employment will further increase to 117.
The increase in income for the technical staff after successful
training and two years of commitment with the project, will be
25% of their beginning income level or at least 15% higher than
the minimum income level in Vietnam. Training is provided free
of charge under the condition that trainees show commitment
to work for the JVC for at least 3 to 4 years.
Under the same conditions (successful training period,
commitment to the joint venture company and excellent job
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performance) the intended increase for the management can be
30%. For the office staff it can be about 25%. The staff and
personnel will work 48 hours per week, they will receive
allowance (25%) for overtime, which will not exceed 12 hours
per week. Apart from the basic income, a bonus system will be
developed for employees who perform well and achieve a good
training result.
Secondary benefits: free lunches are provided. The joint
venture will pay for health-care insurance and will contribute to
the pension.
The joint venture intends to offer female employees more
benefits than the labour standards set by the Vietnamese
government including training, maternity leave, child cares and
carrier development opportunities. A social fund for individual
employees will be set up, as ITEQ also did in the Netherlands.
The joint venture will organise social activities in order to
improve the teamwork spirits and communication.
The modern knowledge about logistics, the combination of
machines and equipments and the programming for these
machines are new in Vietnam. Other aspects as design and
engineering, implementation of ERP (Enterprise Resources
Planning) and Nesting software (which enables the lay-out of
various products from different clients on one metal sheet) is
new: production will be much more efficient and the waste of
materials is reduced.
Also the joint venture will cooperate with a local technical school
to update the curriculum for sheet metal manufacture and offer
internship for their students. There will be a transfer of
knowledge to the local suppliers regarding quality management,
rules and regulations of quality audit and regarding exposure to
the code of conduct of ITEQ and her clients.
Chain effects
Outsourcing partners: in the future, when joint venture already
established, it will build up a network of outsourcing partners
which will produce for the orders which are not the core
business of joint venture. ITEQ will select local suppliers and
provide training on e.g. CSR, Quality and Communication.
It is expected that the project will be looked at as an example
for the metal processing sector in Vietnam.
Environment
The project is expected to have a neutral environmental impact.
The factory will be built in an environmental friendly way. The
JVC aims to give an example how to do business on a social
responsible and sustainable way: use of sustainable and
environmental friendly building materials, waste water
treatment, energy saving technology.
Following ITEQ's example, also the joint venture will develop a
production process with zero waste.
Position of women
Women are preferred for the jobs in quality control and
administration. The female workers will have maternity holiday
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and will get preferences for career development within the joint
venture. The project intents to employ 10 women.
Other impact
There is no significant other impact to be mentioned besides
that it can be argued that the project may contribute to improve
Vietnam's image as a high value added production destination.
Page 183 of 279
Vietnam
PSI11/VN/07
Fast RSQ Vietnam
Location
Hung Yen Province, northern Vietnam
Sector
Industry (maritime)
Applicant
Fast RSQ B.V., Barneveld, The Netherlands
Local partner
Ned-Deck Marine Vietnam Co. Ltd, Hung Yen, Vietnam
Start project
01 July 2011
End project
01 June 2013
Total budget
Goal of the project
To develop a complete manufacturing facility of approximately 1,800 m2 capable of designing
and manufacturing and testing all types of fast rescue boats. Initial production capacity of
the project is five rescue boats of 4.5 m length and one fast rescue boat of 6 or 7 m length
with an expected turnover of € 300,000 at the end of the project.
Abstract
FAST RSQ (FRSQ) aims to develop a complete manufacturing facility capable of designing
and manufacturing all types of Fast Rescue Boats including its newest product line of hybrid
(semi-electric) and light weight GRP (Glass Reinforced Polyester) boats – all in accordance
with the latest IMO and MED/European Commission requirements. Together with local
partner Ned-Deck Marine Vietnam (a company which resulted from the implementation of
PSOM project PSOM05/VN/4) FRSQ can provide clients with complete solutions (Crane and
Boat). The project will establish a facility with five distinct departments: Product
Development, 3D Engineering, Production, Testing/Certification and Service. Production is
divided over two distinct production processes: Aluminium and GRP. The project aims to
employ 45 people (5 women) directly within the first two years. Moreover a spin-off of easily
150 jobs can be created in the 'upgraded' and increased value adding outsourcing network.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Legal business setup and approved design works finished.
Foundation and first trainings.
Main facilities ready for production.
Certification of the factory and hiring of workers.
Production of boats and components.
CSR aspects
The local Vietnamese management team (proposed three members) will be offered an
incentive programme that allows them to receive profits from the business. For example
10% shares in return for a minimal 5 year commitment and performance. Final model will be
created in conjunction with new local management team.
Impact
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Long term economic
activity
During the PSI project phase the joint venture will concentrate
on building GRP boats and rapidly expand to building Aluminium
boats. When this is achieved, the project developers are aiming
at broadening the product range for the future. Lifesaving boats
and more complex boats should be developed for e.g. the
offshore market.
This would require a future investment in the expansion of the
production area with a second site of 1,800 M2 at minimum.
Especially the production, service and outsourcing departments
will grow. That would require further investments of around
€ 500,000.
Employment and
working conditions
The project will employ 45 people full-time of which 5 female.
In order to further expand in future the joint venture will need
to attract another 40 full-time employees (10 female).
The applicant intends to implement "excellent" working
conditions in order to be able to mitigate the risk of valuable
employees seeking greener pastures which is a common
challenge for all investors in Vietnam. They are practical and
well aware that only excellent working conditions can provide
stability to their workforce.
To secure commitment of the local Vietnamese management
team (proposed three members), they will be offered an
incentive programme with the aim to hand over a part of the
business profits in return for long-term commitment and
performance. This may be as high as 10% of all the shares in
return for a minimum of 5 year commitment and performance.
The management team will be represented through a single
foundation (stichting) to ensure one coherent voice of the MT in
share holder meetings.
The certification of production personnel (including GRP,
Aluminium welding, electrical and QA) is the most visible
transfer of knowledge. Given the requirements on lifesaving
equipment the joint venture must invest in certifying its
employees. Certifying employees increases their value on the
labour market, hence the joint venture will maintain a minimal
one year commitment for any training received or otherwise
training costs will have to be (partially) reimbursed by the
employee.
More advanced 3D engineering knowledge, as a real part of the
design and production process, will be transferred. The initial
training will be done in conjunction with the local vocation
training school.
Furthermore the joint venture intends to work with local
partners only.
Chain effects
The standards for producing lifesaving equipment are high and
require a 100% traceability of all parts, components and
workmanship credentials. The applicant considers this the most
important chain effect. This traceability requirement will
demand all suppliers to clarify and properly document their
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production processes. Only through these quality improvements
will local companies be able to upgrade towards export quality,
greatly increasing added value. For some of the local
businesses, especially those which have so far solely been
relying on their cheap labour, this would be a major
improvement.
Environment
Applicant will comply with existing environmental legislations.
On top the joint venture intends to implement energy saving
initiatives in the field of consumption of gas, electricity, district
heating and waste management.
Fast RSQ already participates in a range of different initiatives
such as "Green Ship" and has developed a hybrid driven
aluminium Fast Rescue boat.
Position of women
Applicant declared that women will be treated equally to men
and that the target is to have at least 30% of the senior
positions to be fulfilled by woman so not only the more
"traditional" female positions.
Page 186 of 279
Vietnam
PSI11/VN/25
Excellent products goes Asia
Location
Long An Province, southern Vietnam
Sector
Industry
Applicant
Excellent Products B.V., Hoorn, The Netherlands
Local partner
Dexon-Vietnam, Ho Chi Minh city, Vietnam
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
The establishment of a production facility of 2,000 m2 for the manufacture of "homologated
safe products", which will employ 54 persons and capable of producing at least 500,000
pieces. Of TUV certified towropes and 100,000 pieces. Of the innovative "Cross Safe"
reflective safety concept.
Abstract
Partners will establish a joint venture, for the production of Homologated (certified)
Towropes and a complete new safety product, invented and developed by the Applicant,
which is called the "Crossafe".
Dutch Applicant is Excellent Products B.V., which currently outsources production of
homologated safe products (like towropes, bungees, netting) and imports and distributes
them in the Netherlands to a vast network of European customers. The project has been
developed together with one of their current suppliers from Thailand, Dexon, which is active
in the rubber sector, which also happens to already run a small production facility in
Vietnam.
Partners mainly target their sales to Asian countries as well as Australia and the USA. They
feel that especially the Asian market has an enormous potential as the need for safer
products will increase together with the expansion of the Car market. Besides, they envisage
that the existing laws in Europe, like for example the EN-norm for transportation of goods,
will be implemented in the future in the Asian market too.
The Crossafe is an innovative product as such and has this year been introduced in
Switzerland. All towropes produced in the PSI Project will meet the international standards
for safety (TUV/BSI/EN-norm/Reach) which is why the project can be qualified as innovative
and why it is nominated.
Last tender the proposal was not nominated because the applicant did not sufficiently
demonstrate her ability to finance the own contribution. This time the application does meet
the PSI criteria and the financial assessment is positive because of financial support from the
Thai mother company to the local partner.
Results
• Result 1 : Inception phase.
• Result 2 : Building, office & laboratory finalised and processing line installed.
Page 187 of 279
• Result 3 : Recruitment and training of personnel.
• Result 4 : Production, Certification and Marketing strategy.
CSR aspects
Partners seem committed to apply basic CSR rules.
The following issues are anchored within their policy: Safety standards and regulations
(compliance to all EU safety standards like TUV, BSI and EN-norm. Also, the factory will work
according ISO 9001 and will be audited; Environmental Management; Salary and working
hours; Child labour and Gender; Health and safety programme; Discrimination; Corruption;
Chain Responsibility.
Impact
Long term economic
activity
The output will firstly be increased by adding additional shift/
overtime (as permitted by law). Conservative sales forecasts
are based on less than 1% of market share (for tow ropes) but
they believe that 2% or more is feasible.
The applicant is hesitant to fix a budget for future investments
but has indicated that if the business will grow as planned, she
conservatively estimates that future investments of minimum
€ 50,000 (adding twisting and braiding machine and sewing
machines for Crossafe) will be necessary.
Turnover at the end of the project (year 2) is € 1,137,560 and
two years after the end of the project estimated at € 2,314,580.
The partners will continue their cooperation: the cooperation
and the mutual benefit for all parties are felt to be the most
important motive of the start of this project.
Employment and
working conditions
At the end of the project it is expected the project will employ
54 people of which 44 people in production (basic-level) and 10
people in management (medium-/high-level). Of this total they
expect to employ at least 50% women in all levels.
Two years after the project they expect to grow to 52 people in
production (basic-level) and have the same number of 10
people in management (medium-/high-level).
The wages will be based on the minimum wages of the region +
20%.
If the targets are being met, a bonus will be paid.
The working conditions will be conform standards (like Arbo in
the Netherlands) adapted to Vietnam's needs and standard
practices.
The project will offer employees a clean factory, education,
health insurance, free use of kitchen and free drinks and rice.
The project aims to train Vietnamese employees how to
manufacture safety products which comply with European
(safety) standards.
It is vital to the project that the homologation requirements on
tensile strength are met, otherwise the products (towropes) can
not carry the TUV and BSI logos. This technical know how is not
available in Vietnam nor in southern East Asia and this valuable
knowledge will be transferred in the project.
Page 188 of 279
Chain effects
The following beneficiaries are mentioned by the Applicant:
• Employees and their families.
• Local suppliers of raw material (partners like to reduce
transport so will source from local suppliers as much as
possible).
• Transport companies.
• Government (tax and lease of land).
The project is expected to have a positive impact on the entire
chain.
Environment
Neutral impact. All operations are done according to the
European environmental standards (REACH).
Position of women
The project targets to employ 50% women. In practice this
would be more because women are expected to be better than
men for certain operations.
Also two of the shareholders are women (one from the
Netherlands and one from Vietnam) and they guarantee that
women will be protected.
Other impact
Partners intent to contribute to the development of Vietnam
(especially for children) and are searching for a project which
they may support with a percentage of the profit.
They also like to set up a project of exchange (practicum) within
the company between young people between 20 and 30 years
old. These exchanges shall have a minimum duration of one
week and shall enable young people to develop skills and learn
about Western standards.
Page 189 of 279
Yemen (PSI Plus)
PSIP11/YE/01
Yemeni coffee processing project
Location
Aden Free Zone
Sector
Agriculture / Luxury food
Applicant
National Food Industries Co. Ltd, Jeddah,
Kingdom of Saudi Arabia
Local partner
Feem Food Co. Ltd, Sana'a, Yemen
Third partner
Torrefazione Monforte SARL, Ripalimosani Campobasso, Italy
Start project
01 August 2011
End project
31 July 2012
Total budget
Goal of the project
Establishing a production unit for producing high quality, exportable coffee with a capacity of
432 tons annually in one shift and produce 500 tons Qishr annually in an innovative way for
the local market and introduce it in foreign markets.
Abstract
The partners (a Saudi food processor as applicant, a Yemeni entrepreneur as local partner
and an Italian coffee processor as third partner) in this project will establish a coffee
processing factory in the free zone of the city of Aden. For that they will enter into a joint
venture company. They will make Arabian and Turkish coffee blends to a level that is export
standard. Until now other companies only export unprocessed green coffee beans. The
project will add value to the product in the producing country. For the local market the
factory will process coffee bean hulls that are used as al local drink: Qishr.
The activities of the joint venture will be procuring good grade of coffee beans from farmers,
and processing the beans from hulling up to packing. The quality of the raw material will be
improved by training farmers. A successful chain will increase the acreage of coffee
production that itself is beneficial for the water consumption pattern of agricultural holdings
as it will discourage them to produce the high water consuming qat.
The market that the consortium aims for is within the Middle East; the projected maximum
capacity of the project (approximately 1,200 tons annual) is a fraction of the total market.
The distribution of the largest part of the products will be via the vast network of applicant. A
small quantity will be used by applicant for its own processing activities (Iced coffee) and by
the local partner for his own shops. The Qishr product will be marketed by the joint venture
via the network of the local partner.
Results
• Result 1 : Formation of the company and arrange financing; the division of the shares will
be 55% local partner, 40% applicant and 5% for the third partner.
• Result 2 : Building construction and equipment ordering.
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• Result 3 : Develop the plant facilities and hiring production team.
• Result 4 : Training and orientation; receive equipment.
• Result 5 : Start production and apply trainings.
CSR aspects
The consortium has attached a "Declaration of Intent" to the application in which they pledge
to implement many principles of CSR in the project. The issue of child labour was intensely
discussed during the visit to the partners. During the meeting they gave several points on
their strategy to avoid child labour at the supplying farms: training the women for very
skilled treatment of the beans was one of them. The partners are also dedicated to including
women in the work processes at all levels of the future company.
Impact
Long term economic
activity
The partners plan to increase the production of the coffee
processing plant from the original 432 tons annually to
approximately 1,200 tons annually by organising additional
shifts in the factory. The additional investments of € 175,000
two years after the project will mainly consist of purchasing
transport vehicles, furnishing collection hubs for the raw
products and increasing the warehouse facilities.
Employment and
working conditions
The project will create direct employment for 68 persons. In
the two years after the project another 20 persons will be
employed. Besides, additional income will be generated for
coffee producing farmers.
The primary working conditions are guaranteed to be good in
the CSR charter of the company. Wages will be good; even for
the basic work the consortium intend to pay 40% above the
unofficial minimum wages. Also social security and health
insurance will be covered by the employer. Smaller benefits will
also be available for the workers.
The training for modern coffee processing processes are new
for the country; also the practical issues on bean quality are
new in a way that a processor is going to add income
components for farmers to the production of good quality raw
material.
Besides that coffee farmers will be trained in important subjects
concerning the production: water conservation, pruning,
fertilising and so on.
Chain effects
The main chain effect will be that developments will take place
at the 105,000 coffee producing farms: productivity will
increase and profitability as well. The project will encourage
also other parties in the market to invest in quality. Down the
production chain, local wholesalers and retailers will benefit
from the availability of the new Wish product.
Environment
The consortium will avoid pollution from the plant by installing
filters and oxidisers to minimise emissions of odours that are
generated with the process. Waste will be recycled as much as
possible and a good waste collection service is available.
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The fact in itself to process the husks into the Qishr product
leads to considerable less waste as in most plants the husks
are waste.
The cultivation of coffee at farmers' level will compete with the
cultivation of qat. As water utilisation in coffee is much more
efficient than in qat cultivation, water resources are less taxed.
Systems to avoid soil erosion will be promoted.
Position of women
The consortium targets to employ 40% of its workforce from
female origin. They will work on the production line, the
packaging line and in the administration of the company also
on higher levels.
Other impact
From the leading business principles of the applicant a local
partner, the new company will seek a role in helping the
development of the Yemeni economy in general. For the main
owners of NFIC that have their roots in Yemen, it is clear that a
successful implementation of the project will lead to other
investments in the region as they can help the Yemeni
economy in more sectors.
Page 192 of 279
Yemen (PSI Plus)
PSIP11/YE/21
Healthy eggs
Location
Sana'a – Taez region
Sector
Agriculture; Animal Husbandry; processing product
Applicant
Shuman Poultry Production and Marketing S.A.L., Beit Mery,
Lebanon
Local partner
Dreamland Company, Taez, Yemen
Start project
01 July 2011
End project
31 July 2013
Total budget
Goal of the project
The project will create a controlled chain for producing and marketing table eggs. The
product will be market as a brand and the special aim will be to provide Salmonella-free eggs
for the consumers. Food safety will be introduced in Yemen in this way according to HACCP
rules. The partners aim to produce approximately 80 million eggs annually which is
approximately 9% of the present market.
Abstract
Local partner Dreamland is active in the trade of table eggs in Yemen. The trade is very
basic. The eggs are sold in the retail shops no different as they were packed on the farm,
without any conditioned transport or storage in between. Together with applicant Shuman
Poultry Production and Marketing SAL from Lebanon, they intend to set op a table egg
distribution chain in which eggs are properly treated, sorted and eventually washed before
they are placed in retail shops. They will introduce a chain control programme mainly aimed
prevention of the occurrence of the most harmful Salmonella varieties.
The partners will set up a joint venture with a 50% share each. The egg packing facility will
be situated in Sana'a; the sourcing of table eggs will mainly be from Taez region. The
customers will be supermarkets and shops mainly in Sana'a. The partners will introduce their
own brand for this.
For specialist knowledge on egg handling and egg quality, the partners intend to hire a Dutch
specialist. Specialist veterinary expertise will be employed as well. They will train farmers,
farm advisors and veterinary/ laboratory staff that will be employed by the joint venture.
The project is a first step in Yemen to improve food safety in the table egg chain. In the
project, knowledge will be transferred to farmers and employees of the joint venture on food
safety aspects of table eggs. The sale on unhealthy eggs will be banned. The knowledge and
experiences in the project will be shared with authorities and universities.
Results
• Result 2 : Factory completed and equipment installed.
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• Result 3 : Recruitment of personnel and training of employees and farmers.
• Result 4 : Production phase and completion.
CSR aspects
Improving food safety in the table eggs sector is a CSR aspect itself. In addition the partners
will introduce Salmonella control practises in the chain.
In the processing areas, much attention will be paid to working conditions safety by placing
fire extinguishers at different places in the building, positioning emergency exits and proper
training of equipment use. Environment friendly operations will be the business principle for
the company. Applicants' CSR policy will be leading for the company.
In the contracts with the farmers the use of child labour will be forbidden.
Impact
Long term economic
activity
The partners foresee a follow-up investment of € 1,500,000 for
doubling the capacity of the company.
Employment and
working conditions
The basic workforce for the company will be 44 persons. The
company will provide good working conditions and above
average wages. Also health care, meals and free transport will
be provided.
For the anticipated increase of production capacity two years
after completing the pilot, a doubling of the workforce is
foreseen.
Most of the knowledge that will be introduced is new for the
country. The applicant foresees that the knowledge will lead to
compliance with GMP and HACCP standards.
The knowledge introduced and the experiences of the project
will be shared with the authorities involved and educational
institutions.
Chain effects
The chain effects are mostly expected at the farmers' level.
However the competition may as well try to copy certain
practises to improve their competitive position. Part of the
packaging material will be sourced locally and by stimulating
the local manufacturers to produce new packaging types also
there developments will occur.
Environment
Partners will pay much attention to the impact on the
environment of their business. Most significant is the purchase
of water recycling equipment to minimise the use of water. Also
attention will be paid to waste management: a municipal waste
collection service is available.
Position of women
The partners foresee the employment of 18 women in the
company. They will try to give them jobs in administration,
quality control department, planning and laboratory. Also on
the production line women will be employed.
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Central and
Eastern Europe
Page 195 of 279
Page 196 of 279
Armenia
PSI11/AM/21
Armenia's first professional fresh strawberry
production company
Location
Kotayk, Marz, Village Nor-Gyugh, Yerevan
Sector
Horticulture
Applicant
Kalista international B.V., Emmeloord, The Netherlands
Local partner
Voske Varder LLC, Abovyan, Armenia
Start project
01 January 2012
End project
28 February 2014
Total budget
Goal of the project
Establishing a 12,000 m2 greenhouse for year-round strawberry production, yielding 13 kg
per square metre, for supply to Armenian and Russian markets.
Abstract
The supply of fresh soft fruits and in particular strawberries is very limited in Armenia. Offseason the supply is virtually non-existent and during the season the supply is higher than
the demand. The demand is from both the Armenian market and the Russian market.
Despite the complicated geopolitical situation Russia remains the most important trade
partner for Armenia. The combined demand from both Armenian and Russian markets makes
an investment in a greenhouse for strawberry attractive.
Applicant Kalista International B.V. and local partner Voske Varder have been doing business
for three years now. Kalista was established in 2007 and is a trader in a wide range of
agricultural products. The main product however is plant material, in particular flower bulbs.
Voske Varder is a greenhouse cut flower growing company, established in 2002.
Together they want to broaden their activities by establishing a strawberry growing
greenhouse of 12,000 m2 which should be producing 13 kg per m2 for strawberries per year.
The share division will be 40% for applicant and 60% for local partner.
Results
• Result 1 : Joint venture established.
• Result 2 : Hardware installed.
• Result 3 : Commercial strawberry production and sales.
CSR aspects
The applicant will pay at least four times minimum wages to its workers. The growing
method – substrate in suspended gutters – is much more efficient in use of fertilisers and
pesticides and water than traditional methods of strawberry growing.
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Impact
Long term economic
activity
Partners expect to double the size of the greenhouse in year 4.
Employment and
working conditions
A good salary will be paid - four times minimum wages. The
gutters in which the strawberries grow are at comfortable
working height, approximately 1.35 m.
Greenhouse growing of strawberries does not take place in
Armenia. Local partner does have fairly up-to-date greenhouse
technology for his cut flower cultivation. However this is in pots
and in soil. Growing of plants in substrate and in gutters in
suspension is new for Armenia.
Chain effects
The Armenian government has prepared several plans to
promote greenhouse growing of vegetables and flowers in
Armenia. The joint venture will be a showcase.
Environment
The growing technology proposed is however the most efficient
technology available with regard to water use.
Position of women
Women are well-represented in the project, 80% of the
employees are projected to be women. Management positions
will be equally divided between men and women.
Other impact
Greenhouse growing activities are an official priority for the
Armenian government. Both the Ministry of Agriculture and the
President's office are promoting this priority. This project
supports the official Armenian policy.
More information:
http://www.kalistabv.nl/
Page 198 of 279
Armenia
PSI11/AM/22
Establishing the production of sulphuric acid in
Armenia
Location
Yerevan
Sector
Chemicals / Synthetic materials
Applicant
Agatos Consulting and Chemicals B.V., Laren, The Netherlands
Local partner
Medisar LLC, Yerevan, Armenia
Third partner
Seven Homes Onroerend Goed B.V., The Hague,
The Netherlands
Start project
01 January 2012
End project
30 June 2014
Total budget
Goal of the project
The project entails the construction of a chemical plant for the production of high-grade
sulphuric acid (96.9%) with a capacity of 20,000 tons per year.
Abstract
Sulphuric acid (H2SO4) is the largest volume industrial chemical produced in the world.
Sulphuric acid is applied in production processes of many products, such as: agricultural
fertilisers, dyes, alcohols, plastics, rubber, ether, glue, film, pharmaceuticals, wood
preservatives, soaps and detergents, petroleum products, pulp and paper etc. Sulphuric acid
is so important that the sulphuric acid consumption level is considered indicative of a
country's industrialisation level. In Armenia there is currently no sulphuric acid production.
Project partners Agatos Consultancy and Chemicals B.V., Medisar LLC and Seven Homes
Onroerend Goed B.V. have identified the potential of sulphuric acid production in Armenia
and will start a joint venture for setting up a chemical plant with a production capacity of
20,000 tons per year. The shares will be divided as follows: Agatos 20%, Medisar 50% and
Seven Homes 30%.
Applicant Agatos, established in 2008, is a small advisory firm owned by a former chemical
company director. Applicant was invited by the local partner for an advisory mission to
Armenia through the PUM programme.
Local partner Medisar was established in 2001 and is Armenia's most important trader in
chemicals and laboratory equipment. Medisar employs 27 people.
Third partner Seven Homes was established in 1998 is basically and investment vehicle. It is
active in the hotel business and has real estate investments in the Netherlands. Seven
Homes seeks to diversify its investments through the project.
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Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Construction of the chemical plant.
Start of sulphuric acid production.
Certification and business development.
CSR aspects
Agatos, however applies the Seveso (EU safety) guidelines in several of its projects. Agatos
has also been willing to share its knowledge 'pro bono' such as was the case with the PUM
programme. The applicant pays attention to health and safety, environment and salary
levels. Seveso guidelines will be applied and ISO 14001 will be obtained to make sure
processes are not endangering the environment. The application shows a thorough
understanding of environmental and safety issues. Applying the EU Seveso directive on
safety in industries with dangerous substances will minimise the risks. Compared to the
current situation the project will seriously reduce the risks related to Sulphuric acid
transport. At this stage imports of sulphuric acids from Iran and the Ukraine form a serious
threat to the environment and safety of people. Several accidents have happened with the
sulphuric acid transports from Iran. This project significantly reduces the transportation risks
as the production now takes places in the vicinity of the factories.
Impact
Long term economic
activity
The following follow-up investments are foreseen. Another
sulphuric acid plant with 20,000 tons capacity.
Add-ons such as electricity generation from the heat, production
of cans for chemicals, production of other chemicals for which
sulphuric acid is needed and for which the raw materials can be
found in Armenia: copper sulphite, zinc sulphite and nickel
sulphite. The figure may be somewhat exaggerated as the
parties are probably not going to do all follow-up investments
mentioned here.
Employment and
working conditions
Minimum wage in Armenia is € 60 per month. Salaries in the
project vary between € 145 and € 490 including 10-20% social
premiums.
The following aspects will be dealt with:
• Operation of the plant - producer.
• Process management, quality, certification, safety and health
– chemical consultants – applicant.
• Business aspects – trainer with MBA.
Chain effects
The chain impact of the project will be significant. Sulphuric acid
is very important for many other industrial processes. A big
range of other factories in Armenia will benefit from the
presence of cheap high grade sulphuric acid production in the
country. In preparation of this proposal Medisar has started to
set up an association, the "Armenian Chemical Association".
Already 27 companies have expressed interest. These are
companies that are strongly dependant on chemicals.
Environment
Sulphuric acid is a dangerous chemical that should be handled
with utmost caution. An EIA is part of the project. Producing the
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chemical in Armenia means eliminating the risks that are
related to the long distance transport of sulphuric as it takes
place now. Instead transport of sulphur will take place, which
also requires precaution measures (flammable) but will be in
much smaller volumes (33%). Another positive effect of the
project is that sulphuric acid will replace the more harmful
sodium cyanide in the mining industry.
Position of women
Women will be offered jobs in the company, but due to the hard
physical labour men will are targeted to take a majority of the
positions. Overall: 25% women.
Other impact
The project seeks to have deep impact in Armenia through:
• Establishment of the "Armenian Chemical Association".
• Education. The joint venture will cooperate with the
university of Yerevan through offering positions for chemistry
students and researchers. (At this state Medisar employs 6
chemistry graduates, of whom two have a PhD degree.)
• Lobbying. Medisar is already active lobbying with the
government to ratify the ADR. (European Agreement
concerning the International Carriage of Dangerous Goods by
Road, a UNECE agreement.)
More information:
http://www.medisar.am/
Page 201 of 279
PSI11/BA/21
Heavy duty sacks
Location
Bihać, Una-Sana
Sector
Packaging Industry
Applicant
Koninklijke Verpakkingsindustrie Stempher B.V., Rijssen,
The Netherlands
Local partner
Di & De Delic, Bihać, Bosnia and Herzegovina
Start project
01 March 2012
End project
31 August 2014
Total budget
Goal of the project
Setting up of a production facility for the production of 2,000 ton of heavy duty horticultural
and agricultural sacks annually for export to Western Europe as well as for the local and
regional market.
Abstract
Applicant Stempher and local partner Di & De Delic are both active in the packaging industry.
Stempher is, amongst other products, specialised in the production of heavy duty
horticultural and agricultural sacks. Di & De Delic produces more basic products, like plastic
bags for retail stores. Together they want to set up a joint venture for the production of
heavy duty horticultural and agricultural sacks, both for export to Western Europe and for
the growing local and regional market. The joint venture will be operating in the same
building as Di & De Delic, in Bihać.
For Stempher the project is an opportunity to continue to offer their customers the simpler
products in their product portfolio at a more competitive price. This way their production
capacity in The Netherlands can be used for more technologically advanced products.
Through the project Di & De Delic will have access to modern production techniques such as
multi-layer co-extrusion, wide web printing and heavy duty sealing as well as access to new
markets. The joint venture will be the first in Bosnia to use wide-web printing and heavy duty
sack sealing and one of the first to use multi-layer co-extrusion.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Legal and financial preconditions.
Transfer of know-how.
Transfer of equipment.
Scale up to normal production.
CSR aspects
The partners commit to strictly apply a non-discrimination policy (gender, race, ethnic
background, etc) and declare to strongly object to corruption. Di & De Delic actually already
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employs 5 handicapped people (blind or deaf), amongst their 23 employees. They strive to
also hire some handicapped people for the joint venture staff.
The joint venture will be ISO 9001 certified.
Impact
Long term economic
activity
In the two years after the project period the partners will invest
an additional € 500,000 in expansion and modernisation of
production equipment.
Employment and
working conditions
At the end of the project the joint venture will employ
19 people, plus 20% seasonal workers for about 6 months per
year. Two years later this will be 23 full-time, plus 20%
seasonal.
Of the 19 full-time employees, 15 will have basic-level jobs in
the production department. Two will be medium- and 2 will be
high-level positions. These 4 medium-/high-level jobs include
management, sales/logistics and accounting.
Basic-level employees will receive a gross salary of
approximately € 8,000 to € 9,000 annually and medium-/highlevel employees between € 10,000 and € 20,000.
The employees will work a maximum of 8 hours per day, 6
days a week and will have lunch and coffee breaks. Extra hours
will be paid. Transport will be paid for if they live more than
15 km away. Meal costs will be added to the gross salary,
health and social insurance will be offered. Seminars and other
job related training will be covered by the joint venture.
Since production of industrial flexible PE packaging does not yet
take place in Bosnia, most of the knowledge transfer is new to
Bosnia. This includes wide web printing and industrial sack
sealing.
The training on quality procedures is based on modern
management systems and standards, like LEAN SIX SIGMA.
Chain effects
The main chain effect of this project will likely be that the local
agricultural and horticultural sector can obtain their packaging
at a lower price, compared to the current situation of importing
it.
Environment
Water which is used to cool the machines will be reused by
running it through the heating system of the production facility.
Plastic waste will be recycled in the recycling facility run by
Di & De Delic.
The equipment for the joint venture will be selected such that it
is also suitable for production for bio-degradable sacks. The
partners intend to partially substitute the oil-based PE with biodegradable raw materials. How soon and at what scale this will
be done will depend on demand in the market.
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The local partner has several environmental certificates issued
by the local government, which prove that the production has a
very low impact on the environment. The joint venture will get
these too, including a positive EIA in the final project result.
Position of women
The joint venture wants to set an example to the local
community by hiring 40% to 50% women at each level of the
joint venture.
Other impact
The joint venture will sponsor a few local sport clubs which are
present in international competitions. They will also offer
guided tours through the production facility to local
universities, so students get a chance to see a modern
production facility in real life. Furthermore, each year the joint
venture will financially support a library.
Page 204 of 279
PSI11/BA/25
Establishment of a high-precision CNC metal
processing workshop
Location
Sarajevo region
Sector
Metal industry
Applicant
MDG Techniek Holland B.V., Capelle aan den IJssel,
The Netherlands
Local partner
Missal Inzenjering doo, Sarajevo, Bosnia and Herzegovina
Third partner
Shipteq B.V., Zierikzee, The Netherlands
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To establish a modern workshop for high-precision CNC metal processing with a capacity of
manufacturing 10,200 stabilisers and 212,500 other parts and components for the transport
industry per year, mainly for export.
Abstract
The applicant for this project, MDG Techniek, manufactures a large assortment of highprecision spare parts for the transport industry. In order to maintain its client base and grow
as a business MDG needs to increase the production capacity, while remaining pricecompetitive. In cooperation with local partner Missal and Dutch partner Shipteq they have
developed an investment plan for setting up a workshop in Bosnia, in the Sarajevo area,
where high-precision metal components will be produced. The partners will establish a joint
venture. This joint venture company will run the workshop, with CNC high-precision metal
processing machines, for the production of metal components in the precision range of 1/100
to 1/1000 mm, as well as a Knowledge Centre. The joint venture will cooperate with the
Sarajevo Metal School for the exchange of students and practical training.
Results
• Result 2 : Manufacturing facility operational.
CSR aspects
All partners are committed to CSR and will make this an important topic in the joint venture.
During the project they will implement and formalise this CSR policy for the joint venture.
This policy will include the company's relation towards its own employees, the local
community, the environment, the business community and the clients. The joint venture will
be committed to develop long standing relationships in all areas. By the end of the project
the joint venture will also be ISO 9001 certified. The partners strongly reject corruption.
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MDG is a member of the Metal Union in the Netherlands and through this Union they are
informed on a regular basis on CSR developments and initiatives in the sector.
Impact
Long term economic
activity
The partners will expand the capacity of the project in the two
years after the project period. They expect to buy two
additional machines, hire and train more people and expand
the building.
The partners intend to continue their cooperation in the joint
venture after the project period in the same manner.
Employment and
working conditions
At the end of the project the joint venture will employ 17 staff:
8 operators (basic-level), 5 engineers (high-level), 1 team
leader (high-level), 1 warehouse employee (basic-level), 1
administration (medium-level) and 1 household services (basiclevel).
Two years later, they will employ 14 additional staff, of which 8
basic-level and 6 on high-level positions, so a total of 18 basiclevel staff and 13 medium-/high-level.
Salaries will be at least 120% of the minimum wage.
Transportation costs and one meal per shift will be covered by
the Joint venture. All employees will have health insurance, in
line with Government regulations. Staff will also be provided
with work clothing and protective devices (when necessary).
Working conditions will be comparable to MDG situation, health
and safety requirements will be strictly adhered to. Employees
will also be encouraged to enhance their knowledge and skills
and thus develop within the company. The joint venture will
also aim to motivate and reward the staff according to their
results.
The project will bring to Bosnia and Herzegovina the expertise
on high-precision metal processing (up to 1/1000 mm). The
level of precision has a big influence on the design and
programming of the production process and demands a highlevel of understanding and accuracy by both the engineers and
operators.
Through its cooperation with the Sarajevo Technical Metal
School the project will not just transfer this knowledge to their
own employees, but also to 2 to 3 interns per year.
Furthermore, the project will donate a CNC machine to the
school. This way all metal students will become familiar with
the use of a CNC machine.
Chain effects
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Copper and brass will be purchased locally. Packaging material
will be sourced locally. The joint venture will also use local
transport companies. Metal waste will be disposed off at local
metal recycling companies.
The cooperation with the Sarajevo Technical Metal School will
also have large side effects, because the students will learn
how to work with CNC machines and are expected to use this
knowledge for the benefit of their future employers.
Environment
Modern CNC machines are designed to minimise waste and the
use of water and electricity. The project will not use any
pollutants and all metal will be recycled at the facilities of local
metal recycling companies. Local authorities will verify, as
required by law, that the project does indeed not pose a threat
to the environment.
Position of women
The partners commit to hire at least 3 women on engineering
(total of 5 positions) and administrative positions (total of 1
position).
Other impact
Through the cooperation with the Sarajevo Metal School the
project aspires to contribute to a strong and competitive metal
sector in Bosnia and Herzegovina.
Page 207 of 279
Georgia
PSI11/GE/01
Medical & diagnostic laboratory services in Georgia
Location
Tbilisi, Gldani district
Sector
Medical sector
Applicant
Enraf-Nonius B.V., Rotterdam, The Netherlands
Local partner
Centre of Medical Doctor Ltd, Tbilisi, Georgia
Third partner
Stichting Ingenhousz, Etten-Leur, The Netherlands
Start project
01 July 2011
End project
31 December 2013
Total budget
Goal of the project
Setting up a modern certified medical and diagnostic laboratory for private clinics in Tbilisi
with a capacity of a about 100,000 tests per year.
Abstract
Georgia's government is steadily implementing health sector reforms. The deteriorated soviet
health care system is undergoing a gradual process of privatisation, in order to encourage
competition and investments. Private and corporate insurance schemes have been developed
and in addition government funds are available for insurance of the 20% of the population
that live below the poverty line.
Centre of Family doctor, under its brand name MediHelp, has responded to the developments
by rapidly opening three medical clinics. The company is profitable and employs 100 staff.
However, MediHelp has very limited and obsolete laboratory equipment.
MediHelp, through MMF, has found two partners in Holland that are interested in developing
the Georgian health care market. One is a supplier of medical equipment and a developer of
medical projects: Enraf-Nonius. Enraf-Nonius has a lot of international experience and sees
this project as a show case for Georgia. Enraf-Nonius is the applicant. The other interested
partner is Stichting Ingenhousz, part of the SHL group. The SHL group consists of several
medical laboratories and medical service providers in the South of Holland. It has experience
in developing and implementing protocols for analysis and diagnosis.
The joint venture (70-15-15) will set up an ISO certified laboratory which can carry out
abroad range of medical and diagnostic tests. The capacity will be approximately 100,000
tests per year.
Results
• Result 1 : Joint venture Incorporated.
• Result 2 : Construction and equipping of the laboratory.
• Result 3 : Staff recruited, work protocol and training completed.
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• Result 4 : Pilot turnover achieved and business plan developed.
CSR aspects
CSR aspects of the project centre around working conditions, work safety and waste
management. Safety instructions and procedures will be part of the staff training. Risk areas
will be clearly marked. Hazardous medical waste, i.e. chemicals, sharps and pathological
waste will be disposed of properly. MediHelp uses a medical waste company for collection of
these types of waste.
Impact
Long term economic
activity
The partners will plan to make follow-up investments which
include a CT scan.
Employment and
working conditions
The joint venture will employ 18 fte, 5 people in medium/high
positions and 13 operators and support staff. The General
Director and 2 doctors earn more than € 1,000 per month.
Support staff will earn at least € 200 or 150% of minimum
wages.
The knowledge transfer entails the training for the use of the
latest technologies as well as the methodology related to quality
assurance and strict, certified protocols. One lady in the
management of the local partner is professor in a university.
The students would benefit from advanced knowledge of their
teacher.
Chain effects
Laboratory services may be provided to other parties from the
medical sector. Furthermore regular assistance from ICT firms
may be needed.
Environment
An environmental project, funded by the Dutch Ministry of
Infrastructure and Environment and supervised by NL Agency
entails installing, two incinerators in Georgia. The joint
venture's medical waste will go to that incinerator.
Position of women
Local partner employs 98% women. It is anticipated that in the
joint venture women will also hold high-level positions.
Other impact
Accurate diagnosis is essential for treatment of disease.
Therefore it may be claimed that the health of the clients will
benefit from this project.
More information:
http://www.enraf-nonius.nl/
http://www.shl-siz.nl/
Page 209 of 279
Kosovo
PSI11/K3/01
Manufacturing window decorations
Location
Mitrovica
Sector
Consumer goods and retail
Applicant
Coulisse B.V., Enter, The Netherlands
Local partner
Enterier-P, Mitrovica, Kosovo
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To establish and run a company that manufactures modern high-quality windows decoration
products for the local and export market.
Abstract
The applicant and the Local Partner plan to act on the business opportunity of manufacturing
modern and innovative window decorations to serve the high-end local and export market.
The project will be executed in Mitrovica, a city were both Serbians (mostly in the north) and
Albanians (mostly in the south) live.
The applicant, Coulisse B.V., designs/produces and sells window decorations. It was
established in 1992 and is owned by the two brothers Roetgering.
The local partner, Enterier-P, sells and produces manually window decorations. It was
established in 1993 (with a restart after the war) and is owned by Mr Ibrani.
Together the partners will establish a joint venture. Both the partners will hold 50% of the
shares.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Setting up a joint venture.
Manufacturing workshop established.
Human resources and quality assurance.
CSR aspects
The joint venture will obtain ISO 9001 certification to ensure quality management. The
quality of the product will be guaranteed by the high standard of fabrics that it receives from
Coulisse. A multi ethic policy will be applied. During verification it became clear that Serbs do
not apply for positions at Enterier-P. This is due to the situation in Mitrovica.
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Impact
Long term economic
activity
A follow-up investment of € 190,000 is expected. For this
amount three showrooms will be built and additional machines
will be purchased. With the additional parts and machines a
larger variety of sizes can be made and peak periods can be
handled.
The partners will continue their partnership in the joint venture.
Employment and
working conditions
At the end of the project 16 people will be working for the joint
venture. 10 people will fulfil a basic-level job and 6 people will
fulfil a medium-level job.
Two years after the end of the project 24 people will be
working for the joint venture. 15 people will fulfil a basic-level
job and 9 people will fulfil a medium-level job.
The employees will receive a wage above the average wage in
Kosovo. At least € 300 will be paid were the current estimated
average wage is € 262.
The employees will receive special working clothes and hearing
protection. Further the workers will get transport compensation
and healthcare insurance.
In Kosovo nobody works with modern automated window blind
machines, motorised blinds mechanisms and solar strips.
Therefore the knowledge transferred about the product and the
production process will be new for the employees and the
country.
Further knowledge transferred about finance, administration,
marketing, ISO 9001 and HRM will be new for the employees of
the joint venture.
Chain effects
It became clear during verification that 7 subcontractors will
benefit; 3 transport companies, 2 suppliers of wrapping
materials, 1 marketing company and 1 maintenance company.
Further dealers in Kosovo will also benefit form a wider range
of products.
Environment
Due to the nature of its business the joint venture will not do
any harm to the environment. The company will have a limited
amount of aluminium waste. This will be brought to local
collection points. The joint venture will work with many
products that are made out of environmentally friendly
materials such as FSC certified wood and green guard certified
products.
Part of the production of the joint venture will be energy saving
solar screens.
Position of women
The project will have a positive impact on the position of
women: 66.6% of the employees will be female. Women will be
handling the fabrics and working with the machines. Further
they will most likely work as sales and administrative staff.
Four women will be employed by the project 2 will fulfil
medium-/ high-level functions.
Page 211 of 279
Macedonia
PSI11/MK/03
Slow Food in Macedonia
Location
Through all over the Republic of Macedonia
(Skopje, Veles, Prilep, etc)
Sector
Animal husbandry
Applicant
A.C.H. Kerckhaert, Middenmeer, The Netherlands
Local partner
Agro Link d.o.o.e.l., Veles, Macedonia
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
Develop a production and marketing chain for meat snail in Macedonia with a capacity of
about 300 tons per year, aiming at exports to Italian/European markets.
Abstract
The partners will establish a baby snail production unit, a snail farm and contract 35
outgrowers in snail farming in different locations in Macedonia. Outgrowers will be trained to
breed and harvest meat snails for demanding European markets. A snail feed production unit
and a logistics and distribution centre will be established.
The project aims at initially producing 296 tons of meat snails a year to be marketed in a
300,000 tons European market. The project expects to create 33 additional jobs (23 fte) at
the central farm and 245 jobs (96 fte) at outgrower farms.
Results
• Result 1 : Establishment of joint venture, legal permits and loan obtained.
• Result 2 : Equipment procured and operational, training programme finalised.
• Result 3 : Personnel recruited and trained (33 persons), outgrower programme with
35 outgrowers organised and outgrowers contracted and trained.
• Result 4 : Operational with turnover of at least € 440,000 realised.
CSR aspects
The joint venture will adhere to the same conditions that are now applied in Agrolink these
will be laid down in a CRS policy with the following elements:
Social and labour conditions
• Labour standards include: official labour contracts, good and safe working conditions,
working hours according to local law maximum 48 hours a week, overtime no more than
twelve hours a week and paid at premium rate, remuneration at least 278% of minimum
wage, national and religious holidays observed.
• Social security package and retirement benefits by registration at Macedonian Social
Security Office.
Page 212 of 279
• Assistance in obtaining bank loans.
• Encouragement of employee participation (e.g. membership of unions).
• At least 15% of employees will be handicapped and enjoy special labour conditions as
described under partners above.
• Encourage female employment with 60% female employment and equal rights and
opportunities.
• Encouragement of formation of an Association of snail (out)growers.
• Insist on integrity and avoid any corruption.
• Local recruitment of workers by preference.
Production conditions, environment and animal welfare
• Control by Macedonian Food and Veterinary Office.
• No use of pesticides.
• Recycling of use materials (grass , pallets).
• Environmental training for employees and outgrowers.
• Snails not exposed to unjustifiable pain, suffering or physical injury according to Law on
Animal Protection and Welfare.
• Adherence to EU import conditions.
Impact
Long term economic
activity
According to the proposal , the partners are planning to involve
50 additional outgrowers in future requiring additional
investments of € 1,000,000 in hardware and training.
Employment and
working conditions
The project will create a total of 119 fte of which at 5 higher
level. At the central company there will be 23 fte and 96 fte are
among outgrowers.
Two years after completion of the PSI project, it is expected
that the company will employ 33 fte of which 7 at higher level.
According to the proposal the expected employment with
outgrowers would be at 233 fte. This figure is based on
additional participation of 50 outgrowers and thus a total of
85 participating outgrowers. A more realistic follow-up
participation of 35 additional outgrowers would lead to a total
of about 200 fte.
Partners will adhere to an explicit CSR policy with the elements
outlined above. There is no official minimum wage in
Macedonia. Information obtained during verification showed
that farm workers wages are at minimum € 100-150/month.
Wages of joint venture employees will therefore be at least
170% and of outgrower employees at least 130% of this wage
level.
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Employees and outgrowers will receive specific and practical
technical training on all aspects of snail production which is new
to Macedonia. In addition employees and outgrowers will
receive training on Health and hygiene and environmental
awareness in general and related to the snail production.
Higher level staff will also receive training in management,
marketing and ITC skills where applicable. The total number of
persons trained far exceeds the number of fte since many
outgrowers and their part-time workers will be included in the
training programme.
Chain effects
In addition to the outgrowers (and their employees), an
estimated 12 different suppliers are expected to benefit from
the project. This includes suppliers of hardware investments
since grass in cages, wooden pallets, nets and packing crates
will need replacement on a regular basis. Snail food ingredients
will be sourced locally and transport companies will benefit.
(Electricity, water, fuel and insurance are also mentioned in
proposal.)
Environment
The project will have a positive effect on the environment. An
important contribution will be the expected reduction of
collection of snails from the wild. The production will be
environmentally friendly with re-use of used pallets,
composting of grass etc.
The ecological risk of escaping snails has been considered.
Wikipedia reports that Helix Aspera snails are indigenous in the
surrounding countries and therefore may be expected to be
common in Macedonia as well.
Position of women
In the joint venture 20 out of 33 employees (60%) will be
female. At higher level one of the marketing managers will be
female. An expected 175 persons or 86% of outgrower staff will
be female. The joint venture will have an equal rights policy for
female employees.
Other impact
As a significant commercial venture, the joint venture is
expected to sponsor activities in the fields of sports, education,
culture and health care. These are however not further
specified in the proposal.
Page 214 of 279
Macedonia
PSI11/MK/23
PAPU Modern pork production in Macedonia
Location
Debrca – Ohrid
Sector
Animal husbandry
Applicant
GK Holding Nederweert B.V., Nederweert, The Netherlands
Local partner
Papu Farma I Mesarnici D.O.O.E.L., Skopje, Macedonia
Third partner
Restaurant Papu, Skopje, Macedonia
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
Applicant and local partner will set up a joint venture which will operate a closed SPF
(Specific Pathogen Free) pig breeding and production farm for the production of 293,250 kg
of meat to be sold on the Macedonian market under the Papu® brand.
Abstract
The partners GK Holding, Papu F&M (previously known as Rimes Plus) and Papu Restaurants
want to establish the first closed SPF (Specific Pathogen Free) pig breeding and production
farm in Macedonia.
The farm would house 20 GP sows and 150 F1 sows, resulting in an annual output of 4,250
fatteners which represents 293,250 kg of meat. The partners plan to sell this meat under the
Papu® brand.
Currently Papu Restaurants sells wine under the Papu® brand and they want to expand the
number of products under this brand. The Papu® brand pork will be marketed as locally
produced, fresh high quality meat from healthy animals, for which they expect people are
willing to pay a higher than average price.
The farm would, besides being the first SPF farm in Macedonia, comply with the newest 2013
EU farming regulations and latest animal welfare standards, implementing high
environmental standards for manure treatment and efficient use of energy. In addition to the
farm, the partners want to establish a farm based feed milling unit.
GK Holding is present, through investments in farms, in all Balkan countries, except for
Macedonia. In these countries GK Holding acts on behalf of several Dutch suppliers of
animals, husbandry inputs and stable equipment. By investing in farms throughout the
region GK wants to demonstrate to other breeders what are the opportunities of the used
breeding animals, feed concentrates and stable equipment. Papu F&M, as a local retailer and
wholesaler of fresh meat, and Papu Restaurants, want to secure the supply of fresh high
quality meat through this project.
A joint venture will be set up in which GK Holding will hold 25% of the shares and Papu F&M
the other 75%.
Page 215 of 279
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Establishment of joint venture and project preparation.
Construction of the farm.
The breeding farm equipped.
Populate breeding animals.
Breeding farm productive.
CSR aspects
The partners plan to draw up a CSR policy for the joint venture during the first stage of the
project. NL Agency will include this in Result 1. The CSR policy will be based on the following
company priorities:
• Customers' needs and demand for high quality, safe and fresh pork meat.
• Ethical treatment of animals.
• The best People, Planet, Profit relation.
• Community growth and development.
The application also mentions that the project will be certified for Good Farm Practices and
animal welfare standards. NL Agency will include these certifications in the final project
result.
Impact
Long term economic
activity
The partners plan to double the capacity of the farm within 5
years after the PSI project.
The partners will continue to work together through the joint
venture. The joint venture will also seek to further expand the
fattening capacity by involving private farmers in the area of
Ohrid. They expect that these farmers will be able to make the
investments themselves, supported by EU subsidies. The Joint
venture will provide technical Assistance, supply inputs,
integrate their outputs in the sales of the joint venture (sell it
under Papu® brand) and they might act as a guarantor.
Employment and
working conditions
By the end of the project the joint venture will employ 11 fulltime employees and 8 part-timers (all together 5 fte). The parttimers will all be basic-level jobs, as well as 4 of the full-timers.
Seven people will have a medium/high-level position. This
includes the farm manager, two operational shift managers and
a veterinarian. The joint venture will also work with the 15
grain producers.
Two years later this number will increase to 19 full-time staff,
and 9 part-time staff (5.6 fte). In the spin-off period the
partners expect to also create a fair amount of indirect jobs:
they expect to work with 3-5 farmers regarding the fattening.
Due to the expected increased sales in the butcher shops, plus
the need for more butcher shops with at least 5 persons per
shop, they expect to create 14 full-time jobs at these shops.
Salaries for the joint venture employees will be 20% above the
local minimum wage.
Working conditions will be similar to Dutch standards, with
Page 216 of 279
people wearing protective clothing in the stables. One staff
member will follow a course to become an Emergency
Response Officer (ERO).
The joint venture will also provide insurance for the staff's
family, they will provide housing at the farm and organise
transportation.
The transfer of knowledge on how to run an SPF farm is new to
Macedonia, as well as the training with regard to implementing
the new EU regulations for animal welfare, food safety and
disease control. This will bring the knowledge of the employees
at a level that is common amongst Western European pig farm
employees.
Chain effects
The 15 pre-contracted grain producers will benefit directly from
this project. They will supply grain and the joint venture will
provide them with manure to fertilise their land. In the spin-off
period the joint venture will work with 3-5 private farmers for
fattening. These farmers will benefit, because they will receive
Technical Assistance and inputs from the joint venture and can
sell their outputs via the joint venture.
Furthermore, the partners expect that the project will function
as a demonstration project, which will show local farmers the
advantages of using the Dutch breeding material, feed
concentrates and stable equipment, combined with the modern
methods of farm management. This should lead to the interest
of local farmers to buy some F1 sows from the joint venture,
but mainly the different farm inputs from The Netherlands
which the Applicant will sell. These other farmers will be invited
to come and see the farm when the farm is fully equipped, yet
just before the pigs will be coming.
Environment
The farm will meet the new EU environmental standards with
the reduction of emission of ammonia and odour. An EIA has
been executed before obtaining the building permit.
The farm will also meet the requirements for Measurements for
Sustainable Agriculture. These include measurements for
ammonia emissions, animal welfare, animal health, energy
used and free space. The SPF farm will provide the animals
with the following 5 freedoms:
1. Freedom from hunger and thirst.
2. Freedom from discomfort.
3. Freedom from pain, injury of disease.
4. Freedom to express normal behaviour.
5. Freedom from fear and distress.
Position of women
The impact on the position of women will be neutral.
Other impact
The project will contribute to educating school children in the
area on the ethics of the use of animals. By offering them the
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possibility to see the pigs through the windows (because of
SPF), they hope to teach them about having respect for
animals.
Page 218 of 279
Macedonia
PSI11/MK/25
All-round greenhouse construction & advisory
company
Location
Strumica region
Sector
Horticulture
Applicant
Kees Greeve B.V., Bergschenhoek, The Netherlands
Local partner
Fitohemija, Sveti Nikole, Macedonia
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To establish the first Macedonia based greenhouse construction and advisory company.
Abstract
According to the applicant, the natural conditions for horticulture in Macedonia are good. The
sector is underdeveloped and its potential is underutilised even though the demand for
vegetables and flowers has been increasing.
The applicant Kees Greeve B.V. and the local partner Fitohemija will set up a joint venture to
create an all-round Macedonian greenhouse construction and advisory company.
By using greenhouse technology the local farmers will be able to compete at the (local)
market with a lower price and produce high quality of agricultural products.
The local horticultural growers will need assistance in order to fully utilise the benefits of the
technology of the greenhouse in order to produce high quality horticultural products.
Therefore the employees of the joint venture will be trained in order to provide horticultural
advisory services to its clients.
Kees Greeve B.V. and Fitohemija will set up a joint venture with 50% ownership of Kees
Greeve B.V. and 50% for Fitohemija.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishment of the joint venture (applicant 50% / local partner 50%).
Greenhouse production and construction facility operational.
Marketing and service.
CSR aspects
The joint venture will work according the NEN 6008 norms. They will also increase the
energy efficiency of greenhouse cultivation. The greenhouses they produce will enable
farmers to decrease the use of water, fertilisers and chemicals in their cultivation.
Page 219 of 279
The joint venture will formulate a human resource policy, dedicated to the creation of a
motivated, stable and loyal workforce. Additional coverage for transport costs and meals will
be included in the salary.
The joint venture wants to support the community; Kees Greeve B.V. would like to provide a
platform for knowledge exchange and promotion of the horticultural sector among
Macedonian youth.
Impact
Long term economic
activity
In the spin-off phase a follow-up investment of € 150,000 is
foreseen.
For this amount the partners will expand the greenhouse
construction equipment and they will invest in expertise
development. The turnover, including follow-up investments
two years after the end of the project, will be € 3,600 000.
Employment and
working conditions
During the project 16,33 (fte) people will be employed:
• 5 high-level jobs, 2 medium-level jobs and 9 basic-level
jobs.
Two years after the project 9 additional people will be
employed by the joint venture, in total there will be:
• 10 medium-/high-level jobs and 18 basic-level jobs.
During verification it became clear that the workers will earn
10% above the average salary in Macedonia, the expenses for
transport and food are included. The working contracts will also
cover health insurance.
The technical advisors will acquire knowledge on greenhouse
operations and plant cultivation. They will learn all about
greenhouse building, maintenance and operations.
Chain effects
Several parties will benefit from the joint venture:
• Macedonian greenhouse farmers: by improving their
production.
• Educational institutions in agriculture: by gaining knowledge
and thereby improving their training programmes.
The joint venture will provide income for at least two
subcontractors by building greenhouses; a local electrician and
a local welder. There are no contracts with these
subcontractors yet.
Environment
The joint venture will use modern and energy-efficient
production and construction equipment. With the use of the
greenhouse, the use of energy will be reduced with 25%. The
applicant is also planning to introduce greenhouses that will
limit the use of natural resources and maximise their
utilisation.
Position of women
Within this project at least 3 women can be employed. 2 out of
the 3 will fulfil high-level positions.
The applicant argues that the steel processing and greenhouse
building activities are physically more demanding and therefore
less preferred by female workers.
Page 220 of 279
Other impact
The proposal mentions that the project will strive for
cooperation with regional educational institutions. The local
partner has some contacts with local Universities. A
cooperation agreement has been made.
The joint venture will also assist in the establishment of a
horticultural youth platform in Macedonia.
Page 221 of 279
Moldova
PSI11/MD/22
Organic vegetable seed production in Moldova
Location
Between Orhei and Balti
Sector
Agriculture
Applicant
De Bolster B.V., Epe, The Netherlands
Local partner
ICS Eco-Economic SRL, Chişinău, Moldova
Start project
01 January 2012
End project
31 December 2014
Total budget
Goal of the project
Commercial production of organic vegetable seeds in Moldova on 124 ha.
Abstract
Applicant De Bolster B.V. and local partner ICS Eco-Economic SRL will set up a new joint
venture in Moldova that will produce certified organic vegetable seeds.
The joint venture will receive source seed material through the applicant for the
multiplication of organic vegetable seed. Farming will be done both on own land and with
outgrowers. The joint venture will sell its seeds to De Bolster B.V. who will further sell trough
its market channels.
The project is very innovative as there is not yet a company producing organic vegetable
seeds in Moldova. There is not even a conventional vegetable seed company under
commercial operations. The joint venture will employ 30 staff members and will contract at
least 30 outgrowers. At least 12 of vegetable cultivars are planned.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Setting up joint venture (applicant 80% / local partner 20%).
Ordering and Installation of first set of hardware.
Employment and training of staff & Training and contracting of farmers.
Ordering and Installation of second set of hardware.
CSR aspects
The partners declare to devote time and effort in implementing and defending CSR
guidelines. The consortium partners would like to set an example in Moldova on how to
combine business, socio-economic development and environmental benefits.
The new joint venture will actively involve small scale and therefore vulnerable farmers to be
included in the project. The new joint venture will also work with a women group – organised
to cope with broken families, divorces, alcoholic husbands and handicapped children – to
grow seeds in a cooperative structure. The women group is well organised and supported by
a local NGO. The NGO is looking for small scale income generating activities for their target
group.
Page 222 of 279
Impact
Long term economic
activity
The new joint venture considers this as a pilot and expects to
expand further particularly once farmers meet the requirements
for organic certification. First step remains that outgrowers as
well as own plantation staff possess the needed skills in the
cultivation and that the new joint venture is capable of logistics
and planning.
Expansion will be two fold: (i) increasing the number of
outgrowers, and (ii) increasing the acreage under cultivation.
Production machinery as well as some general costs are
foreseen to be equally budgeted as in the pilot.
Employment and
working conditions
In total 30 new jobs will be created. Staff will consist of 6
high/medium-level and 24 basic-level staff. Staff is expected to
increase in two years' time to about 55, this includes more
extension workers and farm workers, but also includes a
considerable amount of people working in seed cleaning –
quality control, technician, documentation – as more and more
seed cleaning activities will be done under the new joint
venture.
The personnel will earn well above the minimum wage, between
€ 350 per month for basic-qualified workers to € 700 for a
manager.
The joint venture will offer the staff the following benefits:
health and other insurance; sick leave; pension; travel costs this will be either compensated or arranged by having a small
company bus; food will be provided to staff (this is common
practice on the Moldovan country side); a bonus system to
reward good performances, in terms of production and quality;
microfinance - the joint venture will either provide microfinance
itself or collaborate with a professional institution on this.
For smallholder farmers the joint venture will offer: long term
contracts; training; assist in the purchase of agricultural
machinery to enable more efficient mechanised production;
trade finance for farmers will be installed, to allow them to have
sufficient investment in the crops.
The consortium partners will actively assist more smallholders
to be able to participate in the programme during as well as
after the pilot.
There is no commercial organic vegetable seed production and
there is no conventional vegetable seed production in Moldova.
The associated knowledge will be brought in by the consortium
partners. This includes modern production methods, working
with modern equipment, organic contract farming, working with
foreigners (especially for grower groups with other products a
plus), running a sustainable business and farm planning.
Chain effects
Currently there is no organised organic vegetable seed
production so a totally new production chain will be developed.
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The project will create an enabling environment for outgrowers
to produce seeds; methods that include the integration of
modern practices and are within the capacity of the farmers.
And all these outgrowers will be assisted by the joint venture to
prepare and cultivate the land.
Strengthening the agricultural sector will also strengthen related
supplies and services. This project will attract suppliers of
organic agricultural inputs (bio fertilisers, bio pesticides), fuel,
packaging, ICT services and financial services.
A number of eight other enterprises that will profit are foreseen.
Environment
Organic farming is an overall system of farm management and
food production that combines best environmental practices, a
high level of biodiversity and the preservation of natural
resources.
The proposed project can contribute towards making agriculture
in Moldova less dependent on the use of agrochemicals.
Position of women
Of the 30 staff 15 (50%) will be women. Three high/medium
female staff will be employed by the new joint venture.
Outgrowers will consist of both male and female farmers.
Particularly with the inclusion of smallholders it is possible to
include women farmers. More specifically, as mentioned before,
the new joint venture will actively involve groups of women
farmers.
Other impact
The Ministry of Agriculture in Moldova is preparing new
regulations on seeds growing in order to be able to maintain
quality control. Those new regulations might exclude small
farmers from participation in that sector.
Eco-Economics has established a good working relationship with
the Ministry and is trying to persuade it to reconsider its
position regarding small farmers. The project can be an
example how small farmers can contribute to development of
the Moldavian economy.
More information:
http://www.bolster.nl/
Page 224 of 279
Moldova
PSI11/MD/23
Production of high quality clothing for the medical
care
Location
Gaugauzia region
Sector
Textile industry
Applicant
Confectiefabriek De Berkel B.V., Varsseveld, The Netherlands
Local partner
LIS TEX SRL, Căuşeni, Moldova
Start project
01 January 2012
End project
31 October 2013
Total budget
Goal of the project
Setting up of a new state-of-the-art production unit and leasing system for operating room
and hospital clothing in Moldova.
Abstract
Applicant Confectiefabriek De Berkel B.V. and local partner LIS TEX SRL have intention to
start up in Moldova a new state-of-the-art production unit for high quality clothing for the
medical care sector. Also a new leasing system for hospital clothing – common in EU, but not
existing yet in Moldova – will be set up.
Production of high-tech operating room clothing, own design and the implementation of a
modular production system will also be novelties in Moldova. 150 employees, of which some
90% female, will be extensively trained in a region with a high unemployment rate. A
cooperation agreement will be concluded with the Technical University of Moldova in
Chisinau. The production will be audited by the Fair Wear Foundation.
With the machinery and seamstresses available in production it is expected to have an
effective production of 206,500 pieces per year of which 40,000 pieces will be leased.
In the spin-off phase a new modern industrial laundry and an extension of the production
unit will be realised for an additional investment of some € 2.5 million.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Setting up joint venture.
Reconstruction of the building.
Machinery installed.
Up running of the factory and contracting with a professional industrial laundry.
CSR aspects
De Berkel is a member of the Fair Wear Foundation which has strong social responsibility
requirements to its members. The new joint venture in Moldova, which will be owned for
80% by De Berkel, also has to meet the FWF norms.
Page 225 of 279
The production plant will be set up in the region of Comrat. Comrat is the capital of the
Gagauzia region where most of the Gagauz minority in Moldova lives. Special attention will
be on the labour participation of this Gagauz minority.
Impact
Long term economic
activity
The partners will continue their cooperation on the same
conditions.
An extension of the production capacity is foreseen within two
years after completion of the project.
Total additional investments to be made in the two years
following on the project's completion are estimated on
€ 2.5 million (€ 1.5 million for the new laundry and € 1 million
for the extension of the production facility).
The joint venture will set up a new joint venture with the
laundry in Moldova for the investments in the new modern
laundry.
Employment and
working conditions
About 150 full-time persons (fte's) will be employed at the end
of the project, of which 102 basic-level employees and 48
medium-/high-level employees.
Seamstresses are considered as "basic-level employees", but at
the same time they are working with the newest sewing
machines available on the world market. Their level will be
much higher than the average level of Moldovan seamstresses.
The wages of the sewers will be between € 100 and € 200 per
month, which is just above the minimum wage in Moldova.
Medium-/high-level employees will earn up to € 300 per month.
Working conditions at Icatex are good for Moldavian standards.
The factory of the local partner LIS TEX might have some
improvements. The close cooperation with De Berkel will
hopefully lead to awareness of the local partner that good
working conditions are important.
The use of modern sewing equipment at the new factory with
small engines leads to better working conditions for
seamstresses. The noise is less and the machines can be
handled more easily.
Benefits which will be offered to the employees are transport for
free, cheap meals in the company canteen, clear drinking water
and holiday payment. Besides De Berkel supports already
financially employee families of Icatex-pro when they have
come into unlucky situations (like funerals). They will do the
same in the new factory.
Two years after the project has been completed the number of
employees in the production facility is expected to have
increased to 250 fte's, of which165 basic-level employees and
85 medium/high-level employees. Furthermore there will be
investments in a new modern laundry. Expected working force:
60 employees, of which 35 basic-level and 25 medium-/highlevel.
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A new innovative technology will be introduced in Moldova. The
employees will be instructed to handle the new equipment, like
Vetron Ultrasonic. The employees will also be trained in the
maintenance and optimal use.
The designing, patterning and sampling are probably even more
valuable to the employees. This knowledge has been built up in
the Netherlands since the establishment of De Berkel in 1948.
The state-of-the-art knowledge will be transferred to the
employees of the new sewing factory. This will improve their
personal qualifications. With this upgrading the new company in
Moldova can offer a "one-shop-shopping concept", which will
pay off in much better margins.
Chain effects
The main chain effect of this project will be for the medical
sector and indirect for the patients. Through the leasing and
production of high quality operation room clothing in Moldova
these will be accessible for the hospitals in Moldova. The
hygiene and the application possibilities will be improved.
Environment
The impact on the environment will be insignificant.
The waste is reduced to a minimum by the modern software
and machinery which will be installed. The sewing machines
have small engines in stead of big ones. They use only 220 Volt
in stead of 380 Volt.
In the spin-off phase there will be invested in a new laundry
with modern machinery. This laundry will be much more
environmental friendly (less energy, less water consumption,
less use of chemicals) then existing laundries in Moldova.
Position of women
The number of female employees at the sewing companies of
De Berkel and at the subcontractors, is relatively high, mostly
some 90%. The same rate is expected for the new sewing
factory in Moldova. They also will be taking positions on the
medium-/high-level. All female operators of new equipment will
be trained, so their education level will rise.
Other impact
The project will give the Government of the Republic of Moldova
the opportunity to present a successful project with regard to
the health care sector and environmental issues (especially
after the spin-off phase). This will positively affect the
international fundraising.
More information:
http://www.deberkel.nl/
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Latin America
Page 229 of 279
Page 230 of 279
Bolivia
PSI11/BO/01
Integrated Vegetable Production – Green houses
innovation
Location
Barrio Guapai – Santa Cruz
Sector
Fruit & Vegetables
Applicant
Geraldo van den Broek Ltd, Holambra – Sao Paulo, Brazil
Local partner
Hacienda Agricola y Ganadera Del Senor S.R.L., Santa Cruz,
Bolivia
Start project
01 June 2011
End project
01 June 2013
Total budget
Goal of the project
To establish a Greenhouse with packing facility and cold store, for the production and
processing of ecologic fresh vegetables.
Abstract
Production of vegetables in Bolivia is still very primitive, based on old traditional practices,
that have not incorporated any innovation for decades. The cultivation takes place on open
fields, exposed to damage by animals/insects and climatic conditions. Vegetables are
therefore treated with large quantities of agrotoxics, and during the heavy rain season
(sometimes from October to March) no production is possible. Overall productivity is very low
and product quality is poor.
To improve this situation Geraldo v/d Broek Ltda from Holambra in Brasil, and Hacienda del
Señor S.R.L. from Santa Cruz de la Sierra in Bolivia, will form a joint venture to implement a
modern vegetable production farm with a greenhouse, as well as a packing station, including
cold store. They will produce top quality fresh tomatoes, paprika's and cucumbers (other
vegetables will be added in a later stage) according to Global Gap and HACCP guidelines.
The project will be the first in Bolivia to produce vegetables in a greenhouse year round on a
commercial scale, and will be a model for other farmers.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Greenhouse completed and all equipment operational.
Sixty staff contracted and trained.
Commercial operation, finalised advertising and promotion campaign.
CSR aspects
The project will introduce food safety, hygiene and manufacturing criteria (GlobalGAP and
HACCP) to the Bolivian horticulture.
The greenhouse will be equipped with fire-extinguishers, fire-fighting equipment, emergency
exits and a safe electrical system.
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Emergency drills will be held regularly. Some of the staff members will receive a First Aid
training and medical assistance is available for all employees and their families, as is medical
insurance.
A crèche will be available for the employees' children.
Employees with children under 16 years of age, that attend a school, will receive a monthly
"family bag", with all kinds of food.
Employees are not allowed to operate any machines, unless they have specific permission to
do so.
It is the partners' objective to conduct their business activities in an environmentally friendly
way. Attention to biological cultivation guidelines is therefore a key management issue. In
the greenhouse the water will be filtered and re-used.
Impact
Long term economic
activity
The shareholders' strategy is to re-invest the profits in the joint
venture. After a successful completion of the pilot, partners will
double the production capacity and diversify into other (more
exclusive) vegetables.
Employment and
working conditions
The project will create 60 (fte) direct jobs. This will grow to
120 fte, two years later.
The wages paid will be at least 30% above the legal minimum
wage. The joint venture staff will enjoy legal social benefits
which include health insurance, a crèche and free meals.
The employees will have to follow an intensive training
programme to adhere to the standards of GlobalGAP and
HACCP. Applying these standards in Bolivia in the greenhouses
growing sector is completely new..
Chain effects
The farm will require inputs and services from external
suppliers, creating an estimated 53 (indirect) jobs. This refers
to collecting of biomass, handling, sterilizing and transporting
used vases and pots, as well as the substrate itself, transport,
transport, maintenance, cleaning and cooking.
Environment
Positive effects are the strong reduction of pesticide use, as well
as low water consumption.
Position of women
At least 50% of the workforce will be female. This is particularly
important, because in the region the main employer is the
natural gas industry, that only offers jobs to men.
Other impact
The project could lead to a public discussion about the excessive
pesticide use in horticulture, and the threats to public health.
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Bolivia
PSI11/BO/02
Value added sesame products
Location
Santa Cruz de la Sierra
Sector
(Luxury) Foods
Applicant
Organic Assistance B.V., Barneveld, The Netherlands
Local partner
LATCO International S.R.L., Santa Cruz de la Sierra, Bolivia
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To set up a sesame processing plant with a capacity to produce sesame paste, sesame flour,
sesame oil, as well as retail-packed sesame seeds.
Abstract
Organic Assistance B.V. from the Netherlands, through its subsidiary Dutch Organic
International Trade B.V. (DO-IT), imports 100% organic food ingredients and consumer
products, based on long term agreements with suppliers in the sourcing countries. For over
5 years it has been buying organic sesame seeds in bulk from Latco International SRL,
Bolivia's largest sesame exporter. Latco sources sesame seeds through its outgrowers
scheme, comprising 1,200 small farmers, and operates cleaning and grading facilities, as well
as a hulling line, at its plant in Santa Cruz de la Sierra.
To increase the added value of the products they trade, partners are planning a joint venture
to set up a processing facility, the first of its kind in Bolivia, to produce sesame paste,
sesame oil and sesame flour, as well as retail-packed sesame seeds for export. The plant will
be equipped with advanced selection and sorting machinery, a laboratory for quality control
and a climate-controlled store for finished products.
The joint venture's operations will be certified according to international food safety, organic,
fair trade and social accountability standards. Furthermore, the project includes
establishment of two remote sesame collection and pre-cleaning centres, in cooperation with
producer communities.
The project will create 32 direct jobs, including 6 based on the collection centres, and indirect
employment to 750 farmers.
Results
• Result 1 : Business foundation, design of processing plant finalised, permits applied for
and joint venture established.
• Result 2 : Production facility operational, staff contracted and trained.
• Result 3 : Food safety, Organic and Fair trade certification guidelines implemented, staff
trained and pre-audit reports obtained.
• Result 4 : Sesame collection centres established in joint venture with communities.
• Result 5 : Commercial operation and final certification.
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CSR aspects
Corporate Social Responsibility will be embedded in the project through the
HACCP/ISO 22000/FLO Fair Trade and Organic certifications, which encompass quality
standards, environmental and social guidelines.
CSR is a cornerstone of both partners business philosophy and an absolute must to be able
to follow a credible organic market approach. In addition to the standard legally required
benefits, key elements of the joint venture's CSR-policy will be: (co)financing of employee's
professional education, language courses, driving skills and sportive activities. Additionally,
wages will be 50% above the minimum wage of Bolivia.
Principles of non-discrimination and no involvement with any kind of corruption naturally
form the basis of these policies.
Impact
Long term economic
activity
It is expected that in the two years following the pilot,
additional investments will have to be made in doubling of the
capacity of the processing lines, addition of 8 new community
based collection centres and in loans to farmers, to facilitate the
required work capital for their sesame cultivation. The joint
venture will be continued indefinitely.
Employment and
working conditions
The project will create 32 direct jobs (26 at the processing plant
and 6 at the collection centres), and this will grow to 69 in two
years.
Salaries will be at least 50% above the legal minimum wage for
the lowest paid employees.
Furthermore, based upon Bolivian legal regulations, employees
will receive complete social security services, including health
insurance for the employee and its family, a 13th salary in
December, pension payments, life insurance, compensations for
unemployment, three months of maternity leave and an
additional compensation for female employees that have
children up to one year. In addition, employees receive a
minimum of 15 days of paid holidays with a maximum of 30
days depending on the number of years of employment.
The production technology for valued added sesame products is
new in Bolivia. An expert from El Salvador has already been
hired, and will be responsible for the introduction of processing
and quality know how, and to train the employees accordingly.
Organic Assistance will transfer its knowledge regarding brand
development and marketing. Furthermore, Organic Assistance
will pass on their experience concerning fair trade certification
standards and its implementation. An international fair trade
consultant will be engaged in addition.
Finally, the employees will receive training concerning the food
safety (HAACP or ISO 22000) and organic standards and
procedures.
Chain effects
Outgrower contracts will be signed with 750 farmers, on
average 4 ha per farmer. The contract farmers will receive
seeds, fertiliser and plague combating means (organic), as well
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as a small pre-financing of the harvest. The costs of these
inputs will be charged later against delivery of the sesame
seeds, being deducted from the sales price.
Studies of historical transactions show that farmers from Latco's
current outgrower scheme can earn USD 650 per hectare on
average.
Environment
At the start of the project, the planned operations will be
subject to an environmental impact assessment as is
compulsory by law. Result of this assessment is an
"environmental license" issued by the Bolivian authorities.
Subsequently, the joint venture will have to report on an annual
basis regarding its environmental performance, which is subject
to inspection and verification.
The production will have minimal environmental impact, as the
company will only produce organic waste. The water used by
Latco for the washing and hulling services is treated by a water
treatment plant before being discharged into the sewage
network.
Position of women
In the processing plant at least 25% of the employees will be
female. In addition, the laboratory technicians will be female.
Furthermore, women represent an important workforce for the
cultivation of sesame seed. The majority of the women of the
communities participate in the cultivation process. They are also
involved in the formation of the farmers organisations.
Finally, sesame is an attractive crop for farmers with little
resources. This is due to low cultivation costs, its resistance to
drought and the easy cultivation activities. Therefore, sesame
production is a good alternative for female one-parent farmers
to generate extra income.
More information:
http://www.organic.nl/
http://www.latcointernational.com/
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Colombia
PSI11/CO/02
Environmentally friendly crop protection products
Location
Bogotá
Sector
Biotechnology / industry
Applicant
Ceradis B.V., Wageningen, The Netherlands
Local partner
Eva van Harmanni Ltda, Bogotá, Colombia
Start project
01 September 2011
End project
28 February 2014
Total budget
Goal of the project
To set up a production facility for environmentally friendly fungicides.
Abstract
Wageningen University and Research (WUR) is known worldwide as a centre of excellence on
the subject of agricultural research, and is an incubator of high-tech companies in this field.
Ceradis B.V. is one of these young companies, that holds the rights for the production and
marketing of two environmentally friendly fungicides, Ceraquint and Ceralim, both of them
with their origin at WUR's research. The basic difference, and competitive advantage of these
products, is a significantly lower content of active metal, resulting in a much lower negative
impact on the environment. Through revolutionary (patented) formulations, which enhance
the plants natural defences against plagues, the efficacy of both fungicides is equivalent to
the conventional "high metal content" products. Ceradis has finished the technical
development of the products, and is currently involved with the time-consuming and very
costly, registration procedures.
In Colombia there is a large potential market for the new fungicides and, more importantly,
the registration procedures are simpler and faster. Actually, Ceradis expects to have a final
approval and registration for both products there, by August 2011. Therefore they decided to
set up a formalised cooperation with Eva van Harmani Ltda, for the production of the new
products in Bogotá.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
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Formal cooperation agreement signed.
Production facility operational, staff contracted and trained.
External training and promotion campaigns.
Training programme for joint venture staff and outgrowers finalised.
Commercial operation, analysis of demonstration campaign and updated
business plan.
CSR aspects
Corporate Social Responsibility will be anchored in the joint venture through the ISO 9001
certification, which encompasses quality standards but also environmentally friendly
production. The quality protocols and the training/instruction for the production processes
include workplace health and safety measures, environmental protection and the installation
of related equipment.
Key elements of the company's CSR policy will be: employment standards, workplace health
and safety, gender policy, employee participation, chain responsibility and environmental
management.
Child labour is unquestionably excluded from any part of the projects' scope and will be
dissuaded as far down the chain as possible.
Impact
Long term economic
activity
The partners can increase the production capacity without
having to change the core equipment. In this phase, additional
investments will be needed only in peripheral equipment and
storage space.
Employment and
working conditions
The project will create 6 direct full-time jobs (all at medium- to
high-level). This will increase to 10 fte in two years.
The lowest wages paid for permanent staff will be at least 20%
above the legal minimum, in line with the requirements of the
job, as even production workers have responsibilities and are
trained to at least medium-level. All staff will enjoy complete
social benefits according to Colombian legislation, an additional
free lunch, and the possibility/incentive to engage in further
education (within working hours).
The knowledge associated to the production and utilisation of
the new low-copper-content fungicides is completely new for
Colombia. The staff will therefore be trained to achieve at least
basic knowledge of the scientific principle and background of
the Ceradis products and a complete understanding of the
production process in its different stages. This includes quality
control at all stages, measurement, sampling and testing of
inputs and outputs as dictated by the quality protocols. Training
will also include safety precaution measures, do's and don'ts,
measures to be taken in case of machine failure and disaster
and other security issues.
Chain effects
The chain effects of the project will be limited. The additional
sales are not significant for multinational distributors, and very
few extra jobs will be created in the supply chain.
Environment
The production facility for the joint venture will follow the
rigorous guidelines that are already currently in place for EVH,
including recycling of all process water, and therefore has
virtually no impact on the environment.
The substitution of high Copper-content fungicides by the new
Ceralim and Ceraquint however, will have a very positive effect
on the environment.
Position of women
Currently, four of the six EVH employees are women of which
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two at higher levels including the director herself and two at
the basic-level. Within the project a similar high share of
female employees will be aimed at all times and levels. As a
minimum, 2 of the 5 new employees will be women one of
whom in a medium-level position.
More information:
http://www.ceradis.com/
Page 238 of 279
Colombia
PSI11/CO/03
Organic fresh fruit & vegetables from Colombia
Location
Bucaramanga
Sector
Fruit & Vegetables
Applicant
A.E.M. van Vilsteren, Marknesse, The Netherlands
Local partner
C.I. Potosi Ltda, Bucaramanga, Colombia
Third partner
M. Vos, Kraggenburg, The Netherlands
Start project
01 August 2011
End project
01 April 2014
Total budget
Goal of the project
To set up a certified organic production farm, that will produce onions, melons, pumpkins
and papaya, as well as a post-harvest facility that will process and pack the products for
export to Europe.
Abstract
Organic farming has outgrown the exotic/curiosity phase of the first years, to become a
serious market niche, and demand for organic fruit and vegetables is increasing
continuously, particularly in Western European markets. To be able to supply the consumers
year round, European producers and traders are increasingly importing organic produce from
other parts of the world.
Following this strategy, "Biotoon" (brand name of Van Vilsteren), one of the pioneers in
organic agriculture in the Netherlands, decided to cooperate with Potosi from Colombia, who
owns a farm close to Bucaramanga.
Partners will set up a joint venture to implement a fully organic certified farm, to produce
fruits and vegetables. A new post-harvest centre, with processing/packing line and cold store
will be build next to the farm, to guarantee a fully certified organic chain from farm to table.
This will be the first certified organic farm in Colombia, dedicated at the export of onions,
pumpkins, melons and papaya.
Simultaneously, fifteen small farmers will be supported to implement organic farming on
their own land, and contracted to supply products to the joint venture.
Results
• Result 1 : Joint venture established, long term land lease agreement signed, design and
engineering plans finished.
• Result 2 : Central farm with nursery established.
• Result 3 : Packing plant, including cold store finalised.
• Result 4 : Outgrowers scheme established.
• Result 5 : Commercial operation and certification.
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CSR aspects
Corporate Social Responsibility will be embedded naturally in the project through organic
certification. The joint venture will however also implement a formal CSR policy, largely
based on the experience of the local partner with small farmers associations, in the region
formerly affected by the FARC conflict. The outgrowers scheme will actually derive from
these groups.
Impact
Long term economic
activity
The partners expect to increase the production area within two
years following the pilot. For this purpose, they will have to
invest in land preparation and expansion of the irrigation
system, additional agricultural equipment and tools as well as
additional papaya mother plants.
Employment and
working conditions
The project will create 19 permanent direct jobs and 76
seasonal (50%) jobs, or 38 fte (total: 57 fte), and this will
grow to 85 fte, two years later.
wage. Its full-time staff will enjoy legal social benefits which
include health insurance, pension fund contribution and
unemployment benefits.
The cultivation technology, according to international organic
certification standards, is new for Colombia. The Applicant is
one of the frontrunners in the Netherlands on organic
agriculture, and will transfer state-of-the-art knowledge to own
staff and outgrowers.
Chain effects
Onion, pumpkin and melon growing contracts will be signed
with 15 farmers. The contract farmers will receive the seedlings
and compost fertiliser, whilst continuous technical assistance is
provided for free. It is expected that they can earn a clean
€ 3,000 per hectare per year, after deduction of all costs.
Environment
The impact of the project on the environment will be minimal,
as the basic principle of organic agriculture focuses on the
sustainability and minimizing the ecological footprint. This is
reflected in their policies regarding recycling of waste products;
improvement of the soil structure, providing better fertility;
reducing water usage; reducing (ground) water pollution;
reducing amount of pesticides used.
Position of women
Ten out of the 19 permanent staff to be contracted are
expected to be women.
More information:
http://www.biotoon.nl/
http://www.cipotosi.net/
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PSIP11/GT/02
Transformation of wasted fruits in, by biomass
IQF frozen, innovative portion packs
Location
City of Champerico – Province of Retalhuleu
Sector
Food production
Applicant
Kraaijeveld Groente & Fruit B.V., Ridderkerk, The Netherlands
Local partner
Distribuidora de Frutas Tropicales S.A., Plaza Santander,
Guatemala
Start project
01 June 2011
End project
01 June 2013
Total budget
Goal of the project
To make use of discarded mangos, freeze them and sell them on local, USA and European
markets resulting in a yearly production of 1,600 tons.
Abstract
The partners, Kraaijeveld B.V., a Dutch fruit and vegetables merchant, and Distribuidora de
Frutas Tropicales S.A., a Guatemalan mango producer, propose to start up a unit to
transform the mango’s that are not suitable for export into frozen pieces (via IQF
technology). These frozen pieces will be mixed with other frozen fruit particles and exported
to the local market, the USA and Europe. The high energy demand of this operation will be
provided for by a biomass burning system. The factory will be build in Champerico on the
pacific coast of Guatemala and will have a production volume of 1,600 tons in the third year
of production.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Establishment of joint venture.
Factory equipment and biomass facility installed and completed.
Staff employees contracted and trained.
Completion.
CSR aspects
The project will introduce food safety, hygiene and manufacturing criteria (GlobalGAP and
HACCP) to the production and processing of IQF Fruits.
The factory is utilised with fire-extinguishers, fire-fighting equipment, emergency exits and a
safe electrical system.
Emergency drills are held regularly. Some of the staff members will receive a First Aid
training and medical assistance is regularly available for all employees and their families.
A crèche will be available for the kids of the employees.
In case the children of the employees (< 16 years) attend a school, the families will monthly
receive a "family bag", with all kinds of food.
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The employees and families will all have a medical insurance.
Employees are not allowed to operate any machines, unless they have a specific permission.
It is partners' objective to conduct its business activities in a completely environmentally
friendly way. Attention is therefore a key management issue.
In the factory the water will be filtered and re-used.
If necessary, all CSR policies will be pursued by seeking consultancy in these fields.
Impact
Long term economic
activity
The shareholders strategy is that positive results are reinvested in the company to strengthen its equity position. In
addition, the yearly depreciation value will also be re-invested
to maintain the value of the assets and modernise the system.
Project partners strongly believe in the success of the pilot.
After a successful completion of the pilot partners will double
the production capacity. This will require an extra investment of
at least the same amount.
Employment and
working conditions
A total of 60 full-time jobs will be created.
Salaries are planned to be about 30% above minimum wages.
Working conditions include a safe and hygienic working
environment with first aid en medical care for the employees
and his family members.
Other fringe benefits are described under "CSR Policy".
The employees will have to get used to the standards of Global
Gap and HACCP. Applying these standards in Guatemala in the
IQF Production sector in portioned control form is completely
new.
The use of biomass energy as a solution for the energy problem
in Guatemala is completely new.
The employees will have to follow and intensive training
programme.
Chain effects
On a part time basis the following people, apart from the
employed personnel will benefit from this project.
1. Fields Extra work to collect the fruit and transport –
14 people.
2. Biomass Collection and transport for the generation of energy
– 150 people.
3. Outgrowers, producing other fruit species, benefited from the
IQF processing plant – 690 people.
Environment
From waste a completely healthy and innovative product is
made.
The water will be filtered and re-used. The biomass, utilised and
processed in the IQF plant will be burned in a controlled process
to produce energy with a minimum of CO2 emissions. This is
renewable energy.
Position of women
About 60% of the workforce will be women. This high
percentage is only possible by having a child care centre near
the factory.
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The region is producing sugar cane predominantly, which is a
man's world, where no women are accepted to work. The
partners are promoting the fruit cropping in the region and by
doing so, promoting also the women workforce which is
extremely important for the local community.
More information:
http://www.kraaijeveld.com/
http://www.dftmangos.com/
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PSIP11/GT/03
Piloting a processing plant for animal blood,
serum and bile
Location
Escuinta, Palin
Sector
VTL (Lifestock) processing product
Applicant
Sera-Scandia A/S, Hellerup, Denmark
Local partner
Guaimex S.A., Guatemala City, Guatemala
Start project
01 August 2011
End project
31 July 2013
Total budget
Goal of the project
To set up a joint venture for the production of 200,000 kg plasma powder, 12,000 liter
serum and 18,000 kg bile paste annually for the pharmaceutical and food industry.
Abstract
The Danish applicant Sera-Scandia A/S and the local partner Guaimex S.A. will establish a
processing plant for plasma powder, serum and bile paste production from blood and bile
from slaughterhouses which is normally dumped in the ground water. The project is an
environmental solution for the many small abattoirs. A joint venture will be set up in
Escuinta, Palin, to collect the blood and bile (which consists for more than 50% of the
polluting substances) and process these raw materials into high value products with
adequate innovative technologies. During the project period modern equipment will be
installed at 16 abattoirs which handle about 75% of all slaughtering volume of Guatemala.
The government set new policies for recycling of blood waste of slaughterhouses. However,
they cannot enforce and control this, because there are no facilities in place in Guatemala to
recycle blood.
The end products bile paste and serum will be exported for pharmaceutical industry. The
plasma powder will be sold locally and regionally as input for the food industry, for products
as sausages.
Results
• Result 1 : Company established.
• Result 2 : Construction of factory building and initial operation of recollection and
processing foetal bovine serum and bile are made.
• Result 3 : Processing equipment for adult bovine blood received and installed.
• Result 4 : Production line 2 installed.
CSR aspects
The joint venture will develop a CSR policy which covers social standards, safety, health and
environmental issues and policies regarding salaries and secondary benefits. Training on safe
storage of goods, safe use of machinery and tools and hygiene are given to direct employees
and at the abattoirs. Work clothing and shoes are provided, as well as working breaks,
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vacations, health insurance and good sanitary facilities. Biannually, representatives of the
staff will have the possibility to negotiate on salaries and working conditions with the joint
venture director.
Policies regarding waste water, solid waste, air and noise will be formulated The company
will also obtain certificates as HACCP, GMP and food safety. The ministry of Health will
regularly check the company’s performance.
Impact
Long term economic
activity
Once the pilot has been successful the joint venture will expand
by setting up collection systems in Mexico, Belize and
El Salvador. The additional investments be in tanks,
transportation equipment and an additional spray dryer at the
processing plant.
Employment and
working conditions
The project will create 59 full-time positions of which 23
(15 basic-level and 8 high-/medium-level) are contracted
directly for the factory and 36 are subcontracted as basic-level
collectors at the abattoirs. In the spin-off phase 51 basic-level
people will be working in collection and 29 (20 basic-level and
9 high-/medium-level) at the factory.
The employees will at least earn 139% of the minimum loan. On
top of that good working conditions are offered, health
insurance, maternity leave for women, working clothes, training
and transport.
The knowledge with regards to the processing of blood and bile
is new to Guatemala. Especially for the abattoirs, new hygiene
knowledge will be important to improve their performance. In
the factory the operating procedures will be new and also very
specific for each product.
Chain effects
The joint venture will work directly with small and medium sized
abattoirs, where serum, blood and bile are collected. The meat
consumers will benefit as the new stunning and bleeding
techniques will improve the meat quality and shelf life. The
small abattoirs will get important benefits from the project, as
the project will solve an environmental problem and a potential
risk for closing down their firm due to the new law concerning
handling, treatment and disposal of organic waste. The will also
earn a fee with providing the joint venture with raw materials.
Environment
The environmental impact is very obvious. Almost all waste
water from abattoirs is dumped into rivers and lakes causing
contamination of drinking water. The waste water contains
chemicals and carbon dioxide due to the blood content. The
anaerobic process of decomposing the proteins from blood and
bile generates large amounts of methane. The joint venture
project will decrease emission of methane.
Position of women
The impact on the position of women will be neutral. It is the
aim to get an equal distribution of men and women in the
company.
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Other impact
Page 246 of 279
Stunning will be done by pistols instead of the traditional
pinching and cutting the spinal cord. Blood will be collected with
a hollow knife and drip directly in a hygienic bag. This improved
process will improve the quality of meat in Guatemala. Health
hazards will be less likely and animals will be less stressed.
PSIP11/GT/21
Centro de Capacitación, Innovación y Producción
Popoyán-Priva
Location
Santa Rosa
Sector
Education / Horticulture
Applicant
Priva Holding B.V., De Lier, The Netherlands
Local partner
Agropecuaria Popoyán S.A., Guatemala, Guatemala
Start project
01 January 2012
End project
01 January 2015
Total budget
Goal of the project
To establish a high-tech tomato & pepper production centre where annually 220 growers
participate in (paid) courses to produce 20% more efficiently on average (increase of 40 kg
per square meter or 10,000 kg per hectare). Also small growers are trained for free.
Additionally, annually 600,000 ton tomatoes and 300,000 ton peppers are produced in the
training greenhouse which will lead to additional income.
Abstract
The local partner Agropecuaria Popoyán S.A. is a pioneer in innovative agriculture in
Guatemala for 30 years. The applicant Priva Holding B.V. has been their technical knowledge
partner over a long period of time. To improve practises in Guatemala the partners want to
establish a high-tech equipment and knowledge production centre where farmers can learn
how to achieve higher growing performance.
Trainings will be of higher quality and in line with international standards. In Guatemala,
there is a large gap between the demand for vegetables and the supply.
During the PSI phase the project aims to narrow this gap for tomatoes and peppers, while in
the spin-off it will aim at other vegetables.
The training centre will include 2 ha of greenhouses which will be divided in 20 modules
where farmers can learn different practises through hands-on training. Furthermore 0.5 ha
will be used for research of third parties, so that they can explore certain production
methods. Classrooms with necessary equipment will give way for multilateral trainings and
conferences.
This project proposal is modification of PSIP11/GT/01. In the project proposal the focus and
goals were unclear. An improved proposal was handed in for this second tender of 2011.
Results
• Result 1 : Establishment of joint venture and training plan drawn up.
• Result 2 : Building greenhouses with installations and furnishing built and commissioned.
• Result 3 : Harvest start and establishment of the education and hands-on training
programme.
• Result 4 : Actual training and research programmes, operation of CCIPPP.
Page 247 of 279
CSR aspects
Priva Holding B.V.'s CSR policy, which is based on People, Planet and Profit, will provide a
starting point for the project's CSR approach. It includes:
• People: competitive wages, good and safe working conditions, freedom to associate;
• Planet: Water recycling, biological pest control, low water use, no use of pesticides, pest
and disease control, minimal waste;
• Profit: integrity and transparency and non-corruption.
The project will obtain several certificates, as HACCP, GlobalGAP and PIPAA.
Impact
Long term economic
activity
Two years after the PSI phase, further investments will be done
in greenhouse training modules for other crops as chillies or
cucumber.
Employment and
working conditions
The project generates 48 basic-level jobs and 42 medium-/highlevel jobs. At the end of the spin-off phase 100 basic-level jobs
will be in place and 80 medium-/high-level.
The partners will offer salaries of at least 30% above the local
minimum and good and safe working conditions. There is
freedom to associate and social security benefits for health care
insurance and health care treatment are offered. Apart from
that lunches, lunch facilities, transportation and pension funds
are included as extra benefits.
Especially the knowledge on how to train trainers and farmers
on practical skills will be new for the country. The training
methods need another approach than theoretical trainings.
Therefore, curriculum development is very important, bearing in
mind different target groups with different learning capabilities.
Besides that a lot of technologies which will be taught will be
new for the farmer trainees.
Chain effects
The aim of the project is to bring growers of tomatoes and
peppers to the next level, so that they can produce more
efficiently and more qualitatively. The joint venture aims to
include all levels all farmers in the project, so that the whole
sector will get to a higher production standards and that pepper
and tomato demand for Guatemala can be met on the long run.
The whole industry can profit from the project, no level is left
behind. Farmers will get access to new knowledge and
technologies and will improve yield on average with 20%. Use
of new technologies is facilitated with the use of a microfinance
system. Farmers who reach new production levels and qualities
have an outlet to the export market via the local partner
Popoyán. The project is actually a total outgrowers package
which will highly impact the chain.
Environment
Good Agricultural Practices will minimise the negative effects on
the environment if implicated. This will be one of the items in
the training courses (e.g. efficient water and fertiliser use,
water recycling, obtaining certificates).
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Position of women
Out of the 90 positions, at least 23 will be filled by women.
Women have the same rights and opportunities as men.
Other impact
The joint venture will contribute to the local society by
organising social events, like sports and community courses
depending on community needs. For illiterate farmers reading
and writing courses are provided.
The training centre will also make linkages with universities, so
that the practical experience and knowledge of the joint venture
can be used in their curricula as well. Universities will
participate in the centres activities.
Page 249 of 279
PSIP11/GT/22
Production of natural medicine in gel capsules
Location
Guatemala City
Sector
Pharmaceutical industry
Applicant
Padova S.A. De C.V. Honduras, San Pedro Sula, Honduras
Local partner
Formulas Alternativas S.A., Guatemala City, Guatemala
Start project
02 January 2012
End project
01 July 2015
Total budget
Goal of the project
The production of organic medicine in the form of 44 million capsules and 158,000 bottles of
liquids per year for the local and regional market.
Abstract
In Latin America there is a trend to change from chemical to natural medicine. However,
most of these products are currently being imported. The applicant Padova and the local
partner Formulas Alternativas will tap into this trend and will set up a joint venture to start a
production plant to produce natural medicine in capsules and liquids.
All products will be scientifically proven and approved by the government. The input herbs
will be supplied by rural herb farmers which are organised in cooperatives. These farmers will
be supported in gaining knowledge on organic production technologies and certification.
Additionally 60 direct jobs will be created at the production plant in Guatemala city. This
project will lead to affordable healthy medicine for the local and regional market and will be
an alternative to chemical medicine.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Construction of factory.
Plant operational.
Training of personnel.
CSR aspects
A CSR policy was already developed for the project. It includes issues such as employment
standards, workplace health and safety, gender policy, non-discrimination, exclusion of child
labour, employee participation, chain responsibility, measures to prevent corruption and
environmental management. Furthermore an EIA will be done and a GMP and MayaCert
(organic) certificate will be obtained.
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Impact
Long term economic
activity
In the two years after the PSI phase the project partners will
invest in the development of new medicine, a new blister
machine, an extra facility for collection and post harvest
treatment of herbs and transportation.
Employment and
working conditions
At the end of the project 15 basic-level employees will be
contracted, 43 medium- and 22 high-level. Two years after the
PSI phase this will increase to 18 basic-level jobs, 81 mediumlevel and 64 high-level. The employees will at least earn 115%
of the minimum salary. There will be a lunch room and a
changing room with lockers and showers. Also € 10,000 will be
used to provide employees' children with school packages and
non-business-related courses for employees. Health insurance
and working clothes are provided.
Additionally, 80 rural farmers will supply the joint venture with
herbs and flowers during the PSI phase. In the spin-off this will
be grown to 96.
Knowledge on capsule production is totally new for Guatemala.
This includes pharmaceutical production techniques, use of
machinery and techniques for inventory control and quality
control.
For most of the farmers' organic certification and transfer of
best organic production practices for herbs and flowers will also
be new.
Chain effects
An extension programme will be set up with 80 rural farmers
which are organised in cooperatives. The joint venture will
support them with training and obtaining organic certificates.
The cooperative will provide the pre-financing with regards to
input materials. Throughout the project also new medicinal
plants will be introduced for which the joint venture will contract
a specialist which will support the farmers.
Environment
It is the goal of the joint venture to become fully organic. Within
the PSI phase it aims for 40% organic production. It will take
time for small farmers to change their cultivation practices and
therefore, 100% will not be feasible within 3 years.
Nevertheless, cultivation practices will be implemented with no
environmental impact. Furthermore, for the establishment of
the processing plant an EIA will be done and also a permit of
the Ministry of health will be obtained for all medicinal products.
Additionally, waste will be collected two times per week by a
professional company which separates hazardous and nonhazardous waste.
Position of women
Among the personnel 40% will be female.
Other impact
The project will work with national medical experts which are
aligned with Guatemalan Universities. Furthermore, interns will
be accepted to study certain aspects of the company for their
final thesis.
Page 251 of 279
PSIP11/GT/25
High Tech Dental Imaging Centre and Dental
CAD/CAM Laboratory
Location
Antigua
Sector
Medical Sector
Applicant
Viehverkaufsgenossenschaft Lippborg Oelde eG, Lippetal,
Germany
Local partner
Farma Vidrio SA, Guatemala City, Guatemala
Third partner
Luis Alonso Ramirez Reyes, Guatemala and Antigua, Guatemala
Start project
16 January 2012
End project
16 January 2014
Total budget
Goal of the project
To establish a state of art dental imaging centre and a high tech dental laboratory using
CBCT (Cone Beam Computed Tomography) and CAD/CAM technologies (Computer Aided
Design/Computed Assisted Manufacturing), producing scans and dental prostheses annually
for surgeons and dentists in Guatemala.
Abstract
The third partner Mr Ramirez was trained and has worked as an oral and maxillofacial
surgeon and dentist in Western countries. When he came back to Guatemala and set up his
own dental clinic, he came to the conclusion that he had no access to the facilities which he
used to work with. He could not find three dimensional (3D) scan opportunities and
technologies to make diagnosis and use solid prosthetic products as crowns, bridges, veneer.
This made the quality and efficiency of his clinic far lower than he was used to. This is the
case for all dentists and surgeons (maxillofacial surgeons, implantologists, orthodontists and
periodontists) in Guatemala. There are large opportunities to develop the sector and make
dental care and surgery more professional.
Therefore, the applicant Viehverkaufsgenossenschaft Lippborg Oelde, the local partner Farma
Vidrio and the third partner Mr Ramínez want to establish a joint venture in Antigua
Guatemala to set up a state of art dental imaging centre and laboratory to provide dental
services. They will introduce Cone Beam Computed Tomography (CBCT) to make 3D scans
and Computed Aided Design and Computed Assisted Manufacturing (CAD/CAM) technologies
to produce crowns, bridges, inlays and veneers for dentists and surgeons. 3D reconstructions
of the head allows the visualisation of important anatomic information, which leads to better
diagnoses and treatment planning.
The laboratory will comply with the DEMAQS quality standard for dental laboratory products,
ISO, the FDA Quality System and GMP. Moreover, the project will also serve as training
centre to transfer knowledge and technologies to specialists in the field.
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Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Joint venture and business establishment.
Office remodelling and hardware installation.
Staff training, knowledge transfer and TA.
Business development and expansion.
Human resources and foundation creation.
CSR aspects
The joint venture will adopt the principles of Clinical Governance and get a certification for
the compliance with international healthcare standards. The centre will obtain ISO 9001 and
the Dental prosthesis Manufacturers Quality System (DEMAQS) certification. Also, the centre
will follow the FDA Quality System and Good Manufacturing Practice (GMP) guidelines.
The partners commit to provide a safe working place, training and protective clothes for
staff.
Furthermore, the joint venture will cooperate with NGOs on the referral of patients, who, due
to their situation cannot afford dental care. These patients will be treated for only 50% of the
regular costs. Approximately 10% of the joint venture's capacity will be used for these
patients. Furthermore, the joint venture will set up a foundation which will contribute to the
healthcare of the community and workers to finance some needs they have.
Impact
Long term economic
activity
Two years after the project the partners will invest in expansion
of the oral and maxillofacial medical services to other regions in
the country and maybe even to other Central American regions.
An additional CBCT scanner and milling unit will be bought for
operations in other cities. The partners will choose to work with
universities to expand the business or might chose to set up
new centres. Also the training centre will be expanded and offer
workshops, courses and symposiums to local dentists, lab
technicians and surgeons.
Employment and
working conditions
The centre will employ 30 people of among who will be doctors,
nurses, laboratory technicians, maintenance engineers, cleaners
and security staff. In the spin-off this will expand to 50 people.
The staff will receive constant training. They will be paid at least
50% above the minimum loan and will also receive incentives
based on performance. The joint venture will provide protective
clothing where needed and health insurance. Personnel will also
be treated free of charge in the dental centre.
There is no experience with the new imaging and manufacturing
equipment, so the training activities bring new knowledge to the
country. The joint venture will also create a training centre to
transfer this knowledge to specialists from outside the
company. Important will be how the results of the 3D facial
reconstruction can be used for diagnosis and treatment.
Hygiene and safety rules, high level service and strict quality
control will also be taught.
Chain effects
This project will introduce a higher quality dental health care in
Guatemala and can be considered as an important step in
improving the health care facilities in the country. It can also
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contribute to a higher level of training of local specialists and
might prevent Guatemalan dental doctors to look for job
opportunities abroad. They can be facilitated to implement
similar technologies in their clinic. Also, patients who travel
through dental tourism to Guatemala can now be diagnosed and
treated more efficiently according European standards.
Environment
Waste will be collected by certified companies. Scans will mainly
be used digitally, to reduce waste from prints.
Position of women
It is the expectation that 60% of the workforce will be female.
They are hired in the dental lab for their precision in work.
Other impact
CBCT scans have only 10% of the radiation for the patient,
compared to x-rays. Thus, the new scans will be better for
human health.
Training will be given to dental professionals, dental technicians
and dental students. These trainings will be free of charge.
Guatemalan students will also be offered traineeships.
More information:
http://www.farmavidrio.com/
Page 254 of 279
Nicaragua
PSI11/NI/02
Production of chilli peppers and sauce in Nicaragua
Location
Ciudad Sandino, Department of Managua
Sector
Luxury foods
Applicant
Highland Product Corp. S.A., Boquete – Chiriqui, Panama
Local partner
Martin y Fco Vargas Compania Limitada, Managua, Nicaragua
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
The establishment of a 17 ha farm in Ciudad Sandino for the cultivation of tabasco and
habanero chilli peppers and a processing facility for 2,500,000 bottles (chilli) sauce per year.
Abstract
The Panamanian Applicant Highland Products Corp. S.A. and the local partner Martin Y Fco
Vargas Compania Limitada will set up a joint venture for the cultivation of tabasco chilli
peppers and habanero and process this into (chilli) sauce for local and regional sales.
The agro-industry in Nicaragua is very underdeveloped. Chilli sauce is currently imported and
there is a large potential to substitute imports and produce sauces at a lower price than
foreign competitors. With this project, added value will be created in the country.
The products will be sold on the Nicaraguan and Central American market. In total 179 fulltime jobs are created and salaries will be at least 50% higher than the national minimum. A
training programme will be implemented for both the cultivation as for the processing.
Results
• Result 2 : Chilli pepper production established.
• Result 3 : Chilli pepper processing facility established.
Page 255 of 279
CSR aspects
A CSR policy will be formulated for the joint venture including employment standards, fringe
benefits, environmental management, safety and security, chemicals and fertiliser use,
health and gender policy. A HACCP certification will be obtained, while also the Ministry of
Environment and Natural Resources will be involved in approval of water filters. Cooperation
with the Nicaraguan University of Agriculture will be sought for internships and field trips.
Impact
Long term economic
activity
In the follow-up phase the farm will be expanded to 42 ha. Also
storage facilities and the processing lines will be expanded.
Moreover an outgrowers scheme will be developed to source
chilli from small farmers. The follow-up investment is
€ 504,000.
Employment and
working conditions
The joint venture will create 179 full-time jobs of which
71 basic-level jobs, 8 medium-level jobs and 200 half fte basiclevel seasonal pickers.
Employees will at least earn 150% of the minimum wage.
Offered fringe benefits are medical insurance, a 13th month
salary and good and safe working conditions. A per diem will be
provided for transport and lunches.
The knowledge on industrial processing of chilli peppers into
sauce is new to Nicaragua. Also knowledge on agro-industry for
export is scarce in the country.
For the dissemination of technical knowledge and experiences
an open day will be organised for the agricultural producers and
the community.
Chain effects
Local companies will supply the joint venture with agricultural
inputs as seeds and fertilisers, packing materials and
transportation.
Also seedlings will be (pre-)financed for outgrowers, so that
small farmers can start to grow peppers for the joint venture.
They will also be trained in cultivation. This, however, will take
place in the spin-off phase, since the partners first need to
show-case their own production.
Environment
Environmental mitigation measures are in accordance with the
regulations of the Nicaraguan Ministry of Environment and
Natural Resources. Drip irrigation will be applied to reduce
water consumption. Also a HACCP certification will be obtained.
Position of women
The impact on women is neutral. It is estimated that 40-80% of
the workforce will be female.
Other impact
A nurse will visit the project site every two weeks and will be
available for staff and their family.
A collaboration with the University of Agriculture will be
established for internships, field trips and student visits.
Page 256 of 279
Nicaragua
PSI11/NI/04
Piloting the production of un-rooted cuttings of
annual bedding plants
Location
Department of Esteli
Sector
Horticulture
Applicant
Ball Horticultural Company, West Chicago – Illinois,
United States of America
Local partner
Holanda Agroindustria SA, Managua, Nicaragua
Start project
01 June 2011
End project
31 May 2013
Total budget
Goal of the project
The establishment of an export-oriented production company for the vegetative propagation
of six varieties of bedding plants totalling to annual production of 28 million un-rooted
cuttings with a sales volume of € 2.6 million.
Abstract
The American applicant Ball Horticultural Company propagates annual bedding plants in
Guatemala and Costa Rica for the Northern American professional grower market. The facility
in Costa Rica is currently challenged by high quality and high production costs, meanwhile
expansion in production capacity is required due to growth of the market. In search for a
suitable alternative production location, Ball Horticultural Company got acquainted with, the
local partner, Holanda Agroindustria SA in Nicaragua. Here the labour costs are lower and the
climatologic conditions are more favourable. The partners want to set up a joint venture for
the production of un-rooted cuttings of six plant varieties in 2 ha of greenhouse in Esteli. The
greenhouse will be equipped with technologies as a recycling system of irrigation water and
fertilisers and scoria as growing medium. During the pilot 28 million cuttings will be produced
for the US market in a Free Trade Zone, generating 150 jobs of which 70% will be female.
Page 257 of 279
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Business foundation / inception.
Production and central facilities established.
Production staff contracted and trained.
Business development, certification and sales.
CSR aspects
An employee-driven sustainability plan will be established which responds to their social
needs. The joint venture will also offer on-site medical support, educational programmes,
including English classes, financial programmes to be able to safe and borrow money and
workplace safety programmes. Furthermore MPS-B certification will be obtained.
Impact
Long term economic
activity
In the spin-off phase the greenhouses will be expanded with
5 ha, as well as post-harvest, service and staff facilities will be
upgraded. Diversification to new species will be likely. The total
investment will be € 5 million.
Employment and
working conditions
At the end of the project 150 staff members will be contracted
of which 4 high-level, 12 medium- and 134 basic-level. At the
end of the spin-off this will be increased to 6 high-level,
49 medium-level and 466 basic-level employees. The workers
will at least earn 45% more than the legal minimum wage.
Fringe benefits will include health insurance, 13th salary, 10
paid holidays leave annually, unemployment reservation of one
month salary per year, paid maternity leave, voluntary
participation in a saving and credit fund, paid educational
courses, regular medical consults and facilitation of transport.
Knowledge on vegetative propagation according to highest
international standards will be new for Nicaragua. This includes
methodologies, processes on cutting, post-harvesting, storage,
packing and shipment. Quality management and assurance and
phytosanitary principles will also be new for most staff
members.
Chain effects
Several local companies will supply the joint venture with
agrochemicals, scoria, packaging material, transportation of
staff and medical services.
Environment
The production facility will use efficient technologies to reduce
waste and spillage. A controlled fertigation with drippers
combined with a recycling system for water and leached
nutrients will be used. The joint venture will avoid the use as
chemical pesticides as much as possible and will work according
the environmental MPS-B standards. Moreover an EIA will be
included in Result 1.
Position of women
70% of the employees will be female (105 women), mainly
covering basic skilled job positions. The company strives to
employ more than 10 ladies at supervisor level.
Other impact
The joint venture will organise an open day for all local
Page 258 of 279
stakeholders. Additionally it will work with the University of
Esteli to share knowledge and experience.
Page 259 of 279
Nicaragua
PSI11/NI/21
Certified processing of crab in Nicaragua for USA
market
Location
Nagarote (North West of Managua) and Laguna de Perlas
(Atlantic Coast)
Sector
(Luxury) Foods
Applicant
Heron Point Seafood inc., New Hampshire, USA
Local partner
Nicalapia S.A., Nagarote, Nicaragua
Start project
02 January 2012
End project
30 June 2014
Total budget
Goal of the project
To set up a pasteurised crab meat production chain, with a capacity of 1.1 million pounds per
year, from fisherman contract scheme, up to the final processing of the product.
Abstract
The project consists of 3 major components: a fresh crab buying stations in Bluefields, a
fishmeal processing plant and a pasteurised crabmeat production plant.
Fresh crab (cooled) has a shelf life of about 2 weeks, and usually has to be air freighted to
destination. This increases the final cost to the consumers and leaves producers vulnerable
to market price oscillations.
Heron Point Seafood Inc. from New Hampshire, USA (importer and distributor in crab meat,
for the foodservice industry, retail stores, and restaurant chains), will join forces with
Nicalapia S.A. from Nagarote, Nicaragua (trader and processor of fresh seafood products
such as: shell fish, shrimp, lobster, crabs and fish), to establish a canning & pasteurising
plant for crabmeat.
In the facility, the crab meat will be first cooked, then extracted from the shells, canned and
pasteurised. This way, the product can be stored for up to 24 months, to be sold when prices
are more attractive.
The export (to the USA) will be done by sea containers, significantly reducing costs and
improving margins. Savings are also achieved by not transporting the shells (that represent
77% by weight of each crab), but just the actual meat. The hard shells, currently thrown
away by the consumer, will be processed (at the source) into fishmeal, an important
ingredient for animal feed, thus creating a "clean" process with no waste.
Catching of the crabs is done with small canoes, in an artisanal way, and severe MSC
guidelines will be followed: crabs are only accepted if they are not younger than six months
(determined by minimum size of 4 inches), and no females with eggs are caught.
Partners will set up a 50:50 joint venture, that will perform a completely new activity in
Nicaragua.
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Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Construction of factory building.
Finalise factory construction and start of operations.
Business development and export.
CSR aspects
MSC certification will guarantee sustainable fishing procedures, and the American FDA will
make sure food safety regulations are met. HACCP and the EU certification for Sanitation
Standard Operating Procedures (SSOP) will be included in the project.
Impact
Long term economic
activity
In the two years following the project’s completion, the project
intends to build a new pasteurisation plant and fishmeal plant
in Puerto Cabezas as well as a buying, picking and cooking
station in the Gulf of Fonseca (North-western Nicaragua).
Additionally, the project will increase pasteurisation capacity to
operations in Nagarote. the total additional investments come
to € 1,350,000.
Employment and
working conditions
The plant will generate 750 jobs, mainly for the meat extraction
from the shells, that is very labour intensive. Simultaneously,
about 800 individual fishermen will supply the fresh crabs on a
contract basis. The joint venture will support the fishermen
with training and tools.
During the following two years the number of employees will
increase by 740 and an additional 800 fishermen will be
involved in the business.
The employees will earn salaries comparable to similar
positions in Nicaragua. The payment will be equal for both male
and female employees. In addition, the project will pay all
benefits established by law.
To ensure good working conditions the staff will be trained in
good manufacturing practices including those related to
security and safe handling of equipment of which special
manuals will be developed.
The project will provide additional benefits to the employees
such as transport facilities, facilities for food preparation, and
special medical service for the employees and their families.
The pasteurisation of crab meat is not done at all in Nicaragua.
Also MSC certification of crab fishing will be new for the
country.
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Chain effects
Currently the Local Partner purchases some € 4.5 million
annually from fishermen communities. With the current project
this should increase by at least 20%.
Environment
The fishing impact will be neutral, but the recycling of the crab
shells into fishmeal will have a positive environmental impact.
Position of women
Overall 75% of the employees will be female. and in
management positions 60%.
Page 262 of 279
Nicaragua
PSI11/NI/23
Production of architectural designs in Nicaragua
Location
Managua
Sector
Industry (creative)
Applicant
United Panama Realty inc., Panama city, Panama
Local partner
Tulip S.A., Managua, Nicaragua
Start project
01 January 2012
End project
31 December 2013
Total budget
Goal of the project
To set up a modern 250 m² Architect office, housing 50 architects that will produce designs
for 200,000 m² of urbanisation development projects, and 6,000 m² of housing projects per
year.
Abstract
The real estate market in Panama has been booming for several years, and the recent
worldwide construction crisis, has just reduced growth to normal levels.
Applicant, United Panama Realty Inc, is a Panamanian real estate developer, that has
benefitted from this strong market demand. Architectural designs have been traditionally
outsourced, but to get a competitive advantage under the more stringent market conditions,
they have considered to outsource the design work to lower wage countries.
Local Partner, Tulip SA, is a Nicaraguan real estate developer and construction company, that
has always produced its own architectural designs. Having known each other for more than
30 years (both worked for the Panama-consulate in Rotterdam in the 80's), the owners of
both companies decided to join forces and establish a modern, internationally oriented,
architectural design office in Managua. For this purpose a (35:65) joint venture will be
formed, to set up a 250 m² design office, where 50 architects will produce Architectural
Designs (both for individual houses and apartments, as well as for complete urbanisation
development projects) according to international standards, for foreign customers.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Construction of the office.
Production of architectural designs.
CSR aspects
The project partners will integrate the principles of Corporate Social Responsibility in
different areas of the operations of the joint venture. This policy will cover environmental and
social aspects, safety and security in the workplace, health and gender policy.
The projects are developed according to modern guidelines of sustainability and
environmental integration.
Page 263 of 279
Impact
Long term economic
activity
The project partners will continue to develop and expand the
joint venture’s business. Follow-up investments for an amount
of € 655,000 will be necessary in additional office space,
workspace equipment, including computer hard- and software,
training of additional staff and also in marketing and new
business development.
Employment and
working conditions
The project will create 48 full-time jobs, of which the majority
(40) are high-level functions. This total number of employees
will grow to 76 in the second year after completion of the pilot
project.
Staff will be contracted under excellent working conditions, with
salaries at least 100% or more above minimum wages in
Nicaragua. Employees will be offered long-term fixed contracts.
Employees will be offered a medical insurance scheme and
participation in a pension fund.
Since the joint venture follows the principle of 'life-long
learning', ample training opportunities will be available to staff
of all levels.
This project provides local architects and engineers with
advanced work experience and opportunities for the
development of their knowledge and skills. Architectural design
according to international export standards, in a dedicated
architectural design centre, is new for the country.
The project also contributes to the knowledge level of the
Nicaraguan construction and real estate sector.
Chain effects
Project will allow the first export of services of this kind.
Environment
Neutral
Position of women
Overall 40% of the workers will be female, including on
management level.
Other impact
A demonstration day will be organised for the local community,
students and other players in the service economy to facilitate
the knowledge transfer.
Page 264 of 279
Peru
PSI11/PE/01
Fresh Bell Peppers for the export market
Location
San Pedro – Chiclayo
Sector
Fruit and Vegetables
Applicant
Hillfresh B.V., Rotterdam, The Netherlands
Local partner
Gandules inc. S.A.C., Lima, Peru
Start project
01 January 2012
End project
01 April 2013
Total budget
Goal of the project
To set up a Bell Pepper export chain, based on a production farm and processing/packing
plant.
Abstract
Peru has an excellent climate to grow Peppers and due to geographic conditions it can
produce all year round, including during the periods in which production in Europe is
significantly reduced. This presents an interesting business opportunity as, with limited
supply, prices increase more than enough to compensate for the additional cost for (sea)
freight from Peru. Despite these ideal conditions, Peru exports no fresh peppers, that only
find their way out of the country as conserves in cans or frozen.
Hillfresh, a trader in fresh fruit & vegetables from Barendrecht, and Gandules SAC, a
producer and exporter of pepper conserves and fruit from Chiclayo, intend to form a joint
venture to produce and export fresh Bell Peppers to Europe. Partners will set up a pilot farm
in San Pedro, Lambayeque, 700 km north of Lima. A packing plant will be built to select and
pack the fresh peppers that will be loaded in Reefer Containers for an 18-day trip to
Rotterdam.
The project will create 164 direct jobs and open a new front in the strong upcoming
agribusiness export from Peru.
Results
• Result
• Result
• Result
• Result
1
2
3
4
:
:
:
:
Land prepared with infrastructure and irrigation system installed.
Processing Building completed and equipment operational.
Nethouse implemented, training of staff, and commercial production started.
CSR aspects
Local Partner has a very professional Human Resources Department. They have
1.300 permanent employees, and another 2700 temporary staff during harvest peaks. They
are by far the largest employer in the Chiclayo region, and have an excellent reputation,
regarding employee benefits. The joint venture will apply the same CSR policy.
Page 265 of 279
All staff has social security, retirement plans and profit participation. All staff also receives
continuous training and has life insurance. The average daily income at Gandules is USD 18
(against average USD 7 in the region). Because of the stability associated with a job at
Gandules, local banks are prepared to extend financing to employees, who are able to
finance the purchase of an own house (Gandules has agreements with banks). The company
also organises regular medical campaigns to attend all employees plus family members, on
subjects like dental health, ophthalmology and vaccination campaigns.
The company has a special programme for reintegration of handicapped and elderly people
(with suitable jobs), as well as a "gang prevention programme", providing opportunities to
young people in the community exposed to gangs in the area (meanwhile 77 juveniles in the
"risk group" have received training and a job at the company).
Impact
Long term economic
activity
It is expected that in the two years following the pilot,
additional investments will have to be made in an expansion of
the cultivated area of which a part in nethouses.
Processing/packing capacity and the cold storage will have to be
doubled. The joint venture will be continued indefinitely.
Employment and
working conditions
The project will create 164 direct jobs (81 at the cultivation
fields and 83 at the packing plant, including administration),
and this will grow to 276 in two years. Compensation will be
according to the job, with lowest paid workers receiving at least
€ 225/month, or 50% above the legal minimum wage
(NSol 600, or € 150/month).
All employees will have free first medical attention, free
transport from and towards the work place, as well as all legal
benefits, including health insurance and retirement fund
contribution.
The cultivation and processing technology for the production of
Class I fresh Bell Peppers, with all severe quality requirements
of the European markets, is new for Peru and will build on the
existing know how developed in the conserves industry.
Chain effects
Local Partner has traditionally played a model role and
influenced the communities where it operates. The same is
expected with the new joint venture. It will generate economic
activities in transport and packaging materials, as well as
diverse other support services. Finally, the 164 employees will
inject a considerable amount of money in the local commerce.
Environment
The proposed location of the project, San Pedro, is an area
which experiences problems of desert forming. The cultivation
of peppers, which will require the placing of wind shields, will
help stop the process and even 'regain' land. The extensive use
of drip irrigation ensures minimum use of water.
Position of women
Within Gandules, 65% of the workers are female. The joint
venture will also have at least 60% of women. Gandules has
shown to also open higher (engineering) positions for women,
and will apply the same policy for the joint venture.
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Other impact
Beyond the impact of the business itself, Gandules is aware of
its position in the community and responsibilities to the local
population. This is reflected in their policies regarding home
financing for employees by local banks, the regular
medical/vaccination campaigns attending employees and family,
the special programme for reintegration of handicapped and
elderly people, as well as the "gang prevention programme".
More information:
http://www.hillfresh.eu/
http://www.gandules.com.pe/
Page 267 of 279
Peru
PSI11/PE/02
Organic Lemon production
Location
Huaral
Sector
Fruit and vegetables
Applicant
Van Ooijen Citrus B.V., Ridderkerk, The Netherlands
Local partner
Country Home Peru SA, Huaral, Peru
Start project
01 July 2011
End project
30 September 2012
Total budget
Goal of the project
To establish a production and processing chain for the export of organic lemon, to be grown
on 50 ha own land, and 5x10 ha of contracted outgrowers.
Abstract
In spite of a strong citrus growing tradition, there are no commercial lemon plantations in
Peru. In general Peruvians are accustomed to using limes in their cuisine and drinks, which
explains the lack of demand for lemons on the domestic market. The circumstances for
growing lemons, however, appear to be excellent in Peru, and the harvest period would
coincide with a gap in supply from Southern Europe and Argentina.
Van Ooijen Citrus B.V. from the Netherlands and Country Home SA from Peru are proposing
to form a joint venture to exploit this opportunity. Partners will invest in an own plantation
and support contract farmers, with the cultivation of organic lemons, close to the city of
Huaral. To support the organic production, an integrated pest management programme will
be developed, including an insect farm, for the production of natural predators, and a
phytopathological laboratory to inspect and detect fungal diseases, nematodes and viruses
that may affect the plants. This is completely new for Peru. The project will create 50 new
jobs at the joint venture, in addition to generating income for another twenty at outgrowers'
farms.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Joint venture established, contracts with outgrowers signed.
Insect farm, laboratory, greenhouse and compost yard set up.
Lemon plantations established among central farm and outgrowers.
Training programme for joint venture staff and outgrowers finalised.
CSR aspects
Country Home's Corporate Social Responsibility policy will be a reference for the joint
venture's, which will have explicit CSR policies with regard to the following topics:
Social standards – made explicit in the internal company manual, to be delivered in Result 4.
Page 268 of 279
Safety and Environmental standards – policy to be implemented with regard to workplace
health and safety. Focus areas are safe storage and use of fertilizers, safe use of machineries
and tools, and hygiene.
Certification production process - The GlobalGAP and Organic certification of the lemons
produced by the joint venture and the contract farmers provides reassurance that the fruit
has been produced sustainably, respecting the health, safety and welfare of workers, and the
environment.
Impact
Long term economic
activity
It is expected that in the 5 years following the pilot, the
cultivated area will have to be expanded. This investment will
take place in steps.
It is also feasible to invest in a dedicated fruit processing plant
from a certain production volume onwards. The joint venture
will be continued indefinitely.
Employment and
working conditions
At the end of the project, the joint venture will employ 47 staff
on a full-time basis, increasing to 206, two years after
completion. In addition, during 60 days of the harvest period,
another 17 seasonal workers will be employed (500 two years
later).
The joint venture's unskilled labour will be paid not less than
PEN 640 per month (€ 180), which is 15% above the legal
minimum wage. Day labourers are paid US$ 10 per day.
All employees will have a free meal (equivalent to PEN
135/month), health insurance and free transport.
Staff will receive protective clothing, are assured enough
working breaks and sanitarily facilities and workers amenities
are in place.
The cultivation technology for lemons, according to organic
certification, will be transferred to own staff as well as
outgrowers and is new for Peru. The knowledge to develop and
operate an own Integrated Pest Management (IPM) facility
however, is unique.
It will be based on extensive experience of a former SENASA
official, and will be continuously updated through cooperation
with SENASA and CIP.
Chain effects
Lemon growing contracts will be signed with five farmers. As
the lemon production has a long pay-back period, only farmers
that grow other crops will be approached, and the joint venture
will pre-finance their investment under favourable conditions.
The contract farmers will receive the irrigation system, tutors
and seedlings at 50% of the cost, whilst continuous technical
assistance is provided for free. The joint venture will prescribe
the required organic fertilizers and biocontrollers. The costs of
these inputs will be charged later against delivery of the
lemons, being deducted from the farm gate sales price. Joint
venture will buy grade A lemons at 40% of the FOB price. For
grade B lemons, they will pay 50% of the grade A price. The
costs for packing and transport are for joint venture's account.
Page 269 of 279
Environment
The joint venture aims at minimizing its ecological footprint, by
formulating an environmental policy as part of the company's
manual with regard to water safety and reduced energy
consumption. Energy reduction is guaranteed through the wind
generator and strict environmental standards are adhered to
through Organic Certification accredited by an independent
certifier (Control Union).
Position of women
The joint venture will favour single mothers and aims at having
at least 20% female participation of total staff employed. As
plantation establishment, maintenance and harvesting is less
suitable for women, the positions taken by women will be in
administration, quality control, organic integrated pest
management, cleaning and cooking.
Other impact
The availability of organic lemons worldwide is limited, as there
are not many areas suitable for organic lemon growing. Hence,
if the project is successful, it will contribute to the positive
image of Peru as producer of organic crops.
More information:
http://www.vanooijencitrus.nl/
http://www.countryhomeperu.com/
Page 270 of 279
Peru
PSI11/PE/03
Establishment of a Sweet Potato export chain
Location
Viviate – Piura
Sector
Agriculture
Applicant
Solfruit International B.V., Barendrecht, The Netherlands
Local partner
Southern Cross S.A.C., Piura, Peru
Start project
01 July 2011
End project
30 April 2013
Total budget
Goal of the project
To establish a production and processing chain for sweet potatoes and rotation crops
(melons, water melons) for export, based on production at own land and with outgrowers.
Abstract
In spite of its very long history of growing sweet potato, Peru exports virtually none of it.
Sweet potato growing in Peru is generally practiced on small plots of land by farmers who
produce for the local market. They lack the scale of operations, the know how and the means
to access the international market, which is rapidly expanding mainly due to strongly
increasing demand in Europe. Solfruit International B.V. from the Netherlands and Southern
Cross SA from Peru, now propose an ambitious plan to establish the commercial scale
production of sweet potato for export, of which a part under own administration and a part
cultivated by small farmers under their supervision, in the region of Piura. Two high-yielding,
early maturing sweet potato varieties, that are much in demand in Europe, will be
introduced. Two crops of sweet potato per year will be alternated with a crop of melon or
watermelon. A packing plant will be established to wash, sort, pack and store the product
before shipping. The project will create direct employment for more than 200 persons and
indirect employment to some 125 workers at outgrowers fields. The complete cultivation
operations will be GlobalGAP certified, and the packing plant will be HACCP certified.
Partners will set up a joint venture company.
Results
• Result 1 : Joint venture established, cooperation agreements with out growers signed,
water license and building permits obtained.
• Result 2 : Central farm established.
• Result 3 : Outgrowers Scheme established.
• Result 4 : Packing plant, including cold store finalised.
• Result 5 : Business development & certification.
CSR aspects
Corporate Social Responsibility will be embedded in the project through HACCP and
GlobalGAP certification. The joint venture will also implement the BSCI Code of Conduct,
already abided by the Applicant. Key elements of the BSCI Code are: freedom of association
Page 271 of 279
and the right of collective bargaining, no discrimination, no child labour, legal minimum
wages, maximum working hours compliant with national laws, no forced labour nor
disciplinary measures, a safe and healthy workplace, respect for the environment, a social
accountability and anti-bribery and anti-corruption policy.
Impact
Long term economic
activity
The partners expect to increase the production area u within the
next 10 years in a phased expansion. Within two years following
the pilot, they therefore plan to double the cultivated area. For
this purpose, additional land will be acquired and investments
will be made in land preparation, irrigation system, new
planting material and additional equipment for packing plant
and cold store. The joint venture will be continued indefinitely.
Employment and
working conditions
The project will create 219 direct jobs (139 at the cultivation
fields and 80 at the packing plant, including administration),
and this will grow to 400 (275: 125) in 2 years.
wage. Its full-time staff will enjoy complete social benefits
which include health insurance, pension fund contribution,
unemployment benefits, a 13th and a 14th months of salary
paid in July and December and a 15th month salary deposited in
a special saving account. The workforce that will be hired
according to the Agrarian Labour Regime, will have health
insurance and pension payments. These include the packing
plant workers, field workers, tractor drivers, field storekeeper
and field guards. They will be hired on a contract-day basis as is
common practice in Peru, although their employment will be
close to full-time due to the year-round production.
Commercial scale sweet potato growing is new to Peru and so is
processing and packing of sweet potato for export. The Peruvian
people and farmers have cultivated local varieties of sweet
potato on small plots on the river banks for centuries, but have
no knowledge or experience on how to cultivate on a large
scale, with drip irrigation, for export. Partners will introduce new
knowledge regarding the cultivation of the two new varieties,
with a strong focus on homogeneous produce as required by
international markets.
Chain effects
Viviate is a small community with around 4,000 inhabitants.
Many farmers within the Viviate community received their land
through the agrarian reform performed by President Velasco in
the seventies. Due to a bad experience with cotton four years
ago, most farmers decided not to take any risk anymore.
Therefore, at present most of the land in the community is not
being cultivated. In order to receive an income, the people of
Viviate work in the coast villages in the fishing sector or work at
places 3 hours away by bus.
The project will include 25 outgrowers who will be allocated land
to produce sweet potato in rotation with melon and
watermelons. The outgrowers will be supported by the company
Page 272 of 279
with technical assistance and the required inputs like seeds and
fertilizers. The revenues generated by selling the products, after
deduction of the production costs, will create extra income for
the contract farmers. The income to outgrowers is forecasted at
PEN 11,000 per year. Although this is only indicative, it is clear
that the return to labour is potentially excellent for Peruvian
smallholders. At 275 work days per year, each outgrower
provides work for 5 persons.
Environment
The cultivation area will be established in Piura, a dry area in
the north of Peru. The farm will be set up at 2 km distance from
the river, which carries water suitable for agricultural
production. The partners will construct a canal to bring the
water to the farm and a water permit from the Water Users
Organisation will be required.
To handle the different plagues and rots that can cause damage
to the crops, only GlobalGAP approved fungicides and pesticides
will be used. Furthermore, the agriculture engineers will take
outmost care to use these products as conservative as possible.
The project partners will use chlorine for washing the sweet
potato in the packing plant. It is used in such small quantities
that it is not harmful for the environment. This water will be
used to irrigate the gardens on the plant premises.
Furthermore, as required by law an environmental impact
assessment will be performed. Altogether the impact on the
environment will be neutral.
Position of women
Female workers will represent 45% of the workers in the field,
and 65% in the plant. In the farm women will be involved in the
activities that need precision and careful handling, such as
taking cutlings and the maintenance of the plants which has to
be performed continuously during the 90 days crop cycle.
Likewise, the turning of the (water)melons will be done by the
female workers. In the plant, the sorting, selection and
packaging is executed by female workers. Also in the
administrative area female employees will be engaged,
particularly in the positions of Finance & Accounting manager,
Plant Manager, different assistants, Quality Control officer,
Packing supervisors, Bookkeeper, Internal Control, cashier and
secretaries.
Other impact
The joint venture will set up a local health post for medical
assistance to its employees, their families and the population
from Viviate in general. A nurse will attend the health post one
day per week.
More information:
http://www.solfruit.nl/
Page 273 of 279
Peru
PSI11/PE/04
Growing Desert Flowers in Peru
Location
Ica
Sector
Ornamental plant cultivation
Applicant
La Flecha Import- Export B.V., Ter Aar, The Netherlands
Local partner
Corporation Roots SA, Lima, Peru
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To set up a Fresh Flower production and export chain, based on a production farm in the
desert and a post-harvest facility, that will ship the stems by sea to the European market.
Abstract
La Flecha from the Netherlands and Roots from Peru, jointly plan to invest in the production
of exotic flowers in the coastal desert of Peru. The specific climate conditions allow the
partners to export to the high-end markets in the Northern Hemisphere, when most of the
international competition can not.
The joint venture will transform a plot of land near Ica, into the country's first CSR-certified
desert flower farm. Four different flower varieties, native to Australia and South Africa, will
be planted, three of them unknown to Peru. A modern post-harvest facility will be the start of
a closed supply chain.
The partners will pioneer cut flower sea-transports from Peru to The Netherlands which, if
successful, will be a breakthrough to the Peruvian floriculture sector. Moreover, the joint
venture will make hand-tied bouquets for export, by adding cut-flowers and greens grown by
Roots Peru at its mountain farms.
Production of desert flowers has an extreme low water footprint, consuming less than a third
of the water required by asparagus, while creating more value and employment per hectare.
than any other crop. It is therefore very appropriate for the Ica Valley, which is facing
increasing water shortage.
About 30 full-time and 72 seasonal (50 fte) jobs will be created.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Joint venture established, business licenses and permits obtained.
Desert farm established.
Staff recruited and trained.
Post-harvest facility, including pre-cooling system and cold store finalised.
CSR aspects
Corporate Social Responsibility will be anchored in the Joint Venture through VeriFlora, Fair
Labour Practices and BASC certifications, thereby guaranteeing an excellent CSR-footprint.
Page 274 of 279
Key elements of the company's CSR-policy will be: employment standards, workplace health
and safety, gender policy, employee participation, chain responsibility and environmental
management.
Impact
Long term economic
activity
The partners plan to increase the farm area within two years
following the pilot, to double the production capacity. For this
purpose, additional investments will be made in land
infrastructure & buildings, irrigation system, new planting
material and additional equipment for post-harvest facility and
cold store, besides some agricultural equipment & tools.
Employment and
working conditions
The project will create 66 direct full-time jobs (30 permanent at
the farm and post-harvest facility, plus another 72 seasonal 50%- jobs on the farm, during the April to October harvest
season.
This will increase to 76 fte in 2 years. Nine of the permanent
jobs are of medium-/high-level.
The lowest wages paid for permanent staff (NSol 650), will be
at least 18% above the legal minimum (NSol 550). Its full-time
staff will enjoy complete social benefits which include 15 days of
holidays, an extra monthly salary in July and in December
(Christmas), half a monthly salary in May and in November, as
a so called Compensation for Time of Service (CTS), 4% Health
insurance and fringe benefits like a daily meal and transport.
Seasonal workers will, on top of this, get a 10% higher basic
salary.
Peru does not have a well developed flower sector, like
neighbouring countries Ecuador and Colombia, although it has
the ideal geographic and climatic conditions. The new staff of
the joint venture will therefore be trained on many topics that
are not actually new for Peru, but are still rare: Best Agricultural
Practices, Post-harvest processing, product preparation for
export.
New for the country, is the knowledge that will be required for
handling & packing flowers for sea transport, as well as desert
cultivation techniques for new species of flowers, imported from
Israel.
Chain effects
The desert flower farm will purchase its agriculture consumables
and packing materials locally.
Considering the growth perspective of the project, this will
create a sustainable long-term impact on local agribusiness
suppliers.
The sea transport trials will indisputably have a positive impact
on the flower chain in Peru. Once the partners can prove the
commercial viability of exporting flowers by sea it will trigger
competitors to do the same, boosting the Peruvian flower
industry.
Environment
The impact on the environment will be limited and, compared to
Page 275 of 279
other crops in the region, it will even have a positive impact, as
the water consumption for growing flowers is substantially lower
than for the traditionally cultivated asparagus and artichokes.
Position of women
The partners will give preference to female staff, which is also
part of the VeriFlora and Fair Labour Practices standards
guidelines. At least 40% of the jobs offered will be taken by
women.
More information:
http://www.rootsperu.com/
Page 276 of 279
Suriname
PSI11/SR/03
A supply chain for hot-fill production of tropical
nectars and juices
Location
Paramaribo
Sector
(Luxury) Foods
Applicant
Passina Products B.V., Breda, The Netherlands
Local partner
Carifruits N.V., Paramaribo, Suriname
Start project
01 July 2011
End project
30 June 2013
Total budget
Goal of the project
To set up a supply chain with 120 outgrowers for the hot-fill production of fruit nectars and
juices as new products with prolonged conservation times, to enable the partners to gain
access to new markets (% of total volume):
• In Suriname: belly wash market segment with low fruit content (28%), and syrups (30%).
• Abroad on export markets in Guyana, French Guiana and the Netherlands: high fruit
content nectars and fruit drinks with improved conservation times (40%), and pulps (2%)
for exports to French Guiana only.
Abstract
The applicant is Passina B.V., a large producer and distributor of fruit pulps, and the local
partner is Carifruits, the largest producer of fresh juices in Suriname. They will set up a joint
venture with ownership of 70% by Carifruits and 30% by Passina. The project is located next
to the new premises in Paramaribo that is planned to be built and finalised towards the end
of 2011.
The project partners have identified commercial opportunities in new markets in Suriname
and abroad. However, Carifruits is restricted by its technology that only permits them to
produce juices and syrups with maximum 3 months conservation time and that need to be
kept cool. The proposed hot-fill technology would enable them to gain access to export
markets and to gain a market share in local shops with limited (or without) cold storage
capacity.
The innovative aspect for Suriname is the application of the hot-fill technology (pasteurising)
that will enable Carifruits to innovate their juices and syrups and to access new (export)
markets. Hot-fill fruit juices and syrups can be preserved for one year without cooling. These
innovations will result in production and marketing of fruit juices with low (5%) fruit content
(so-called belly wash) that are presently 100% imported in Suriname, in exporting the juices
(nectar and fruit drinks with higher fruit content known as Coropina) in which Carifruits is
market leader in Suriname, and in developing low calorie syrups with 50% sugar contents
Page 277 of 279
(using Stevia). An outgrowers scheme will be set up for the cultivation of passion fruit and
acerola.
Results
• Result
• Result
• Result
• Result
• Result
1
2
3
4
5
:
:
:
:
:
Business structure established.
Production facilities operational.
Staff trained, recycling scheme developed.
Outgrowers scheme developed, farmers trained.
Business development, certificate acquired.
CSR aspects
The activities of the joint venture will be implemented in accordance with HACCP and GMP
standards. Health and safety issues will be addressed through trainings on operational H&S
and HIV/AIDS awareness. Forced labour and child labour are condemned.
Impact
Long term economic
activity
Follow-up investments of € 1,200,000 are foreseen for
expansion of the product range, fresh food processing capacity,
hot-fill production capacity and for expanding cooling and
storage facilities which are rather limited at present but
important for building strong supply of products. The expected
turnover two years after the project is € 4 million. There is no
change foreseen in the cooperation between the partners after
the project is finalised.
Employment and
working conditions
The project will create employment for 38 people, 20 basic-level
and 18 medium-/high-level. Two years after the project period
20 more people will be employed, 16 basic-level and 4 medium/high-level. The lowest salary, for unskilled workers, will be
twice the level of the estimated minimum wage. Labour
conditions will include a provision for health care and social
insurance, payment of overtime and bonus. Transport and
lunches are also part of the package offered to the employees.
The part of knowledge that is new to Suriname relates to the
hot-fill technology and heat-resistant PET bottle production,
which are new for the country. Both are a part of the total
production line.
Chain effects
A number of 120 outgrowers will be contracted to produce fresh
fruits for the local partner, representing about 20% of the
required inputs. The majority of outgrowers are small farmers
that own 2 ha to 3 ha of land. They will be supported in various
ways: provision of seedlings, expertise and knowledge transfer,
and finance to start up or expand their activities. They will buy
guaranteed quantities from the outgrowers. Their net income
may potentially increase with € 10,000 annually. In addition, a
number of roughly 50 jobs will be created as a result of the
need for distribution and sales services (a number of 15 subcontractors are foreseen).
Environment
The project will not pose a risk for the environment as it will
Page 278 of 279
operate according to HACCP and GMP practices. The post water
treatment includes filtering and purifying of processed water. In
addition, a scheme will be set up for collection and recycling of
used PET bottles based on voluntary disposal of bottles.
Position of women
It is expected that at least 20 out of 38 employees will be
female, including 5 high- and 15 medium-level jobs.
Page 279 of 279

(PSI) Project overview 2011

Transcription

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