6 th Quarterly Report

Transcription

1 Economic Diversification and Private Sector Development Programme Saint Lucia 6 th Quarterly Report Reporting Period 1 st July 30 th September 2009 Date: 15 th October 2009 EU funded project under SFA 2004 Participatory Economic Development Private Sector Development

2 TABLE OF CONTENTS 1. PROJECT SYNOPSIS INTRODUCTION BACKGROUND CURRENT SITUATION ANALYSIS AND PRIORITY DIRECTIONS VERTICAL COORDINATION WITH GOVERNMENT BENEFICIARIES PROJECT PROGRESS DURING THE REPORTING PERIOD PROJECT PLANNING FOR THE NEXT REPORTING PERIOD ANNEXES Annex A: Initial Work Plan July 2009 September 2009 Annex B: Annex C: Achievement in the Reporting Period Planning for the next reporting period Annex D: Tentative Planning/Project pipeline for Q 1/2010 Annex E: Financial overview (contracting rate) per Annex F: Annex G: Overall Work Plan for the whole project duration Structure of the Business Assessment Review 15 October 2009, Sequa ggmbh 2

3 The views expressed are those of the Contractor SEQUA ggmbh and do not represent the official views of the European Commission. This report has been prepared as a result of the implementation of the project Economic Diversification and Private Sector Development Programme Saint Lucia Sequa ggmbh Bonn Mac Vane Drive, Sans Souci, Castries, Saint Lucia, W.I. info@sequacaribbean.org 15 October 2009, Sequa ggmbh 3

4 ACRONYMS BAR BSS BSI BDS BMO CDO(s) CDF EC ECD EU FAO GoSLU LED MALFF MCIC MEC MOF M&E MoST MoT NELU NELP NGO(s) NDC NSDC OPSR SED SMEs PED REA SEDU SFA VET Business Assessment Review (here: project activity) Business Support Service Business Support institution Business Development Support (here: programme activity) Business Membership Organisation Community Development Officers Community Development Foundation European Commission European Commission Delegation European Union Food and Agriculture Organisation Government of Saint Lucia Local Economic Development Ministry of Agriculture, Lands, Forestry and Fisheries Ministry of Commerce, Industry and Consumer affairs Ministry of Education and Culture Ministry of Finance, Economic Affairs and National Development Monitoring and Evaluation Ministry of Social Transformation Ministry of Tourism National Enrichment Learning Unit (in MEC) National Learning and Enrichment Programme Non Governmental Organisation(s) National Development Corporation National Skills Development Centre Office of Private Sector Relations Sector Economic Development Small and Medium Sized Enterprises Participatory Economic Development Rapid Economic Appraisal Small Enterprise Development Unit (within Ministry of Commerce) Special Framework for Assistance Vocational Education and Training 15 October 2009, Sequa ggmbh 4

5 1. PROJECT SYNOPSIS GENERAL OBJECTIVE The economy of St.Lucia has increased its competitiveness and achieved a successful integrations into the regional and global economy through comprehensive development of its private sector SPECIFIC OBJECTIVES The situation of the private sector in St.Lucia has significantly improved in terms of capabilities and capacities in export, human resource, regulatory environment and related local institutions RESULTS Result 1: Local stakeholders are promoting private sector development in form of Participatory Economic Development (PED) Result 2: Private and public sector agencies (Business Support institutions-bsi) have been upgraded (management systems and business support services-bss) Result 3: Administrative and regulatory framework for development of the private sector has been improved Result 4: In relevant areas of the economy human resource has been expanded and upgraded Result 5: Export readiness of small and medium private enterprises has been improved ACTIVITIES A coherent and detailed set of activities is foreseen in order to achieve the results under each component. Project activities include, inter alia: undertaking rapid economic appraisals (REA), selecting of intervention area (min. 4 areas), establishing 4 regular public-private round tables,, supporting preparation of action plans, supporting 4 public or private BSI to offer at least 4 full BSS Establishing of a permanent private-public task force, elaborating 4 detailed proposals how to improve business environment, elaborating standards for VET training incl. definition of levels to achieve recognized certificates, export promotion activities, tailor made export consultancy. Further, a coherent set of training activities will be carried out: Training of PED facilitators (Training in project financing, ex post evaluation of small PED projects), Training of staff of BSS institutions to improve services, training in upgrading management procedures regarding business environment, Curriculum development and vocational training courses for young and rural workers. Further details in form of a comprehensive overview are given in the log frame at the end of this synopsis (see page 6). 15 October 2009, Sequa ggmbh 5

6 TARGET GROUPS The target groups are at micro level: at least 200 enterprises with approx owners plus employees. meso level: private sector support agencies in St. Lucia. For example: St. Lucia Chamber of Commerce, Industry & Agriculture, St. Lucia Manufacturing Association, St. Lucia Industry and Small Business Association. macro level: Decision makers and experts in relevant Ministries and other public authorities. PROJECT BUDGET Euros. PROJECT DURATION 36 months. Start date: 1 April End date: 31 March 2011 ) ) According to the Financing Agreement on SFA 2004, signed on 15 Febr 2005 between the EC and the GOSLU the end of the period of the national operational implementation of the program is 31 Dec However, according to article 4 (no. 4.) of the Financing Agreement, a request may be made in duly substantiated cases for the extension of the operational implementation phase and correlatively for the period of execution. The request must be made by the Beneficiary (here: Sequa) at least three months before the end of the time capped operational implementation phase (i.e. by 30 Sept 2010). 15 October 2009, Sequa ggmbh 6

7 Logical Framework 15 October 2009, Sequa ggmbh 7

8 2. INTRODUCTION This is the sixth progress report of TA team for the EC funded project under SFA 2004 to St Lucia, covering the reporting period 1 July 2009 to 30 September The basis for the planning and the reporting is the Overall Work Plan submitted to the Steering Commitee in spring 2009 and the amendment of the Work Plan in September 2009, presented in Annex F. According to the Terms of the Grant Contract the Progress Reports have to be submitted and to be presented to the Steering Committee. The next Steering Committee Meeting is likely to be held in November 2009 (to be confirmed). Schedule Estimation On Time: Yes 3. BACKGROUND Our programme follows the slightly modified Plan of Operations adjusted according the addendum to the project budget signed on 22 June All the operations /activities of the programme are grouped under the following two components Component 1: No Scope of Work Budget line: Amount in Euro in XCD I PED Participatory Economic Development Approach 1 LED interventions SED interventions Subtotal I: Component 2: No Scope of Work Budget line: Amount in Euro in XCD Services in Private Sector Development 1 Business Development Services VET Vocational Education and Training 3 Business Enabling Environment Export Readiness for companies Subtotal II: Grand Total Component 1 and 2: I Note: the above amounts in XCD were converted from Euro for better comparism (fx rate: 3.79). The fx rate applied in the fin. Accounting prevails 15 October 2009, Sequa ggmbh 8

9 4. CURRENT SITUATION ANALYSIS AND PRIORITY DIRECTIONS St Lucia is a lower-middle income country with a small open economy. It has an area of 620 sq km; a population of 168,400 (2006 estimate); a population density of 272 inhabitants per sq km; an estimated GDP of EUR (USD ) and GDP per capita of EUR (USD 5 546), both figures in 2006 at current market prices. St Lucia s economy is largely agriculture-based (bananas and other crops) but with a growing services sector centred on tourism, and a growing manufacturing sector. It is a small island developing state with all the inherent challenges such as a narrow economic base and a high vulnerability to external shocks and natural disasters. The country is at a cross roads in its development. After over two decades of self government it has achieved a relatively high level of human development, particularly in terms of health and education. However, as a small island developing state with an open economy, these gains are being eroded by the challenges in finding new sources of growth and accelerating the pace of economic development. Internal fiscal imbalances and a high debt ratio add to the country's vulnerability in an increasingly hostile global trading environment. Signs of this erosion are already emerging in the form of rising unemployment particularly among young people in the rural areas and with it a rise in the levels of poverty. After sustained economic growth which reached a four year peak of 5.0% in 2006, real economic outcome in Saint Lucia decelerated to 0.5% in This reflected a slow down in the tourism sector, particularly the stay-over and yachting visitor categories which are the most economically significant segments. Value added in the construction sector also contracted contributing to the reduction in the pace of economic activity. The strategy of the Government of St. Lucia (GoSLUU) over the medium term is concentrated on the need to exploit all opportunities for sustained growth and development and to restructure and reposition the economy for successful integration within an increasingly liberalized regional and international trading environment, in particular the CARICOM Single Market and Economy (CSME) and the OECS Economic Union. The key priorities of the Government s development strategy are to halt any further decline in the agricultural sector and encourage agriculture and wider economic diversification; provide the enabling environment to foster a private sector-led growth, notably to boost tourism activity with a deliberate emphasis on increasing returns to the local economy through effective linkages; encourage education and human resource development; support the emerging informatics industry and financial services sector, and also encourage the adoption of appropriate technology as a means for achieving greater efficiency. On 3 Dec 2008 the Government of Saint Lucia and the European Commission signed the Country Strategy Paper which provides a framework for EU assistance programmes in Saint Lucia under the 10 th European Development Fund for the period 2008 to Private Sector Development(PSD) The private sector is constantly adjusting to rapid and significant changes in the national, regional and global economic environments. The GoSLUU and its development partners have recognized that the private sector must be assisted in coping with the magnitude and momentum of those changes. As such, a comprehensive and widespread package of policy initiatives, programmes and projects have been and are being implemented. Those initiatives financed with the assistance of the EU, amounting to millions of Euros, have targeted agriculture and economic diversification, infrastructure and social sector development and social protection measures. Since 1998, the European Union (EU) has provided considerable financial and technical support (in millions of Euros) to PSDPs in St. Lucia. These programmes have targeted all levels of national development, such as providing direct assistance to Small and Medium Sized Enterprises/SMEs (microlevel) in firm diagnostics, as well as business plan development and implementation. The PSDPs also provided institutional strengthening for Business Support Organizations (meso-level) and policy support 15 October 2009, Sequa ggmbh 9

10 to the GoSLUU (macro-level). Several interventions specifically targeted micro-enterprises including farmers and micro-finance institutions in the rural areas. In 1998, with financial support from the EU the GoSLUU developed a Private Sector Development Strategy (PSDS). This was followed in 2001 with the development of a National Industrial Policy and in 2004 a National Export Development Strategy (NEDS). In 2008, the GoSLUU started a process of revision of the initial PSDS and held a national consultation on the in April The revised PSDS is expected to be approved by Cabinet end Parallel to and in support of the revision of the PSDS, a Private Sector Baseline Study was conducted It s report compromises an enterprise census and an investment climate study II. St. Lucia is also the beneficiary of EU funded support to private sector development being implemented at the regional level. Two specific programmes in this regard are, the Integrated Programme for the Caribbean Rum Sector and the Caribbean Trade and Private Sector Development Programme (CTPSDP, Phase 2). The Rum programme is designed to enhance the competitiveness and profitability of rum producers in Caribbean Group of ACP Countries (CARIFORUM) by supporting improvement in plant efficiency, compliance with environmental and waste management regulations and standards, and distribution and marketing. Phase 2 of the CTPSDP seeks to improve the business environment and build the capacity of Business Support Organizations (BSOs) in order to support the growth and survival of firms across the region. In the Country Strategy Paper the Government of Saint Lucia and the European Commission propose to allocate 85% of the indicative EUR 8.1 million to private sector development to assist the Government with the implementation of policies and strategies aimed at achieving private sector-led growth. Particular emphasis will be placed on the export-readiness of the private sector, the adequacy of human resources and the facilitation of an enabling environment mainly through regional integration and trade facilitation. Expected results include the establishment of a National Training Council, the adoption of ISO certification by 2011, increase in the exports of goods and services, and review business legislation. Like many small developing societies, small and-medium sized enterprises or SMEs, are the foundation of the Saint Lucian economy. According to the Ministry of Commerce and Industry, over 80 % of businesses on the island are SMEs, a statistical testament to the critical role that these businesses play in the economy. SMEs are a major source of employment and job creation for a large percentage of Saint Lucians thereby reducing poverty and promoting social and economic stability. SMEs also promote the personal and professional development of those who run these enterprises due to the expertise and personal commitment required to keep them afloat. The main SME sectors are retail, construction, service, hospitality, tourism and agriculture. In Saint Lucia, SMEs also comprise street vendors, seamstresses and tailors, preschool operators and business consultants. The Communique emanating from the ECCB 6 th special Monetary Council Meeting noted on 18 Sept 2009 the importance of the private sector development in achieving the desired objective of 6 % growth and agreed that the development of a private sector strategy and enhanced entrepreneurship initiative should be pursued (source: II FWC BENEF/Lo11/No 2009/207891, Aug 2009, Pohl Consulting & Associates 15 October 2009, Sequa ggmbh 10

11 Programme Pillar 1 (Result 1): Local stakeholders are promoting private sector development in form of Participatory Economic Development (PED) PED Participatory Economic Development There is evidence that other communities are stirring and developing entertainment with a view to income generation. The efforts of Anse la-raye and others in this regard can make a contribution to the entertainment arts as a defining characteristic of the St. Lucia tourism product. The small PED projects will have to fulfil three criteria: they must be implementable by local actors, thus leading to increased institutional capacities, they have to achieve tangible results within 6-9 months and they must have sustainable positive effects on economic growth and poverty reduction in line with the objective of the programme. As long as these three basic criteria are fulfilled, the small projects may deal with almost any topic: Streamlining a registration procedure Overcoming a specific bottleneck within a value chain Establishing a new business development service Organise local market or product related-events Creating new opportunities for business people to meet Removing a bureaucratic obstacle (by removing it or by supporting clients in dealing with it), etc. In the course of the programme, local stakeholders will implement at least 25 small projects. This approach serves as a major incentive for local actors to take an active participating role in local decision making. It emphasises practical, down-to-earth proposals, rather than fancy ideas. LED interventions The following relevant plans and policies provided a guiding framework for the local plans:- National Development Strategy (NDS) This is the main strategy for physical and economic development. It promotes balanced spatial development by segmenting the island into 4 quadrants. Within these quadrants the strategy encourages regional specialization through specific strategic interventions or catalysts to capitalize on the comparative advantages of each region. In the context of the local plans this strategic framework defined some of the key opportunities for local development. The strategy was approved by government as the guiding framework for national and regional development in April Village tourism, Heritage Tourism Policy The policy regarding Village Tourism has not been articulated formally; however the Ministry of Tourism strongly advocates the development of community tourism as a means while capitalizing on natural and cultural assets while ensuring local ownership, participation and spatial balance in tourism development. A Policy Study for Marketing Heritage Tourism in St. Lucia was undertaken in 2005 following the completion of the Heritage Tourism Project (EU funded). Key policy recommendations focus on:- Improvement of infrastructure (especially roads) to tourism sites; improving and maintaining quality standards and service delivery; capacity building of existing heritage products and new suppliers (service standards, structure of distribution, site management); market assessment, marketing (local buy-in and 15 October 2009, Sequa ggmbh 11

12 innovative market expansion including the Edu-tourism market). In the Tourism Strategy and in a Consultancy undertaken by the Heritage Tourism Programe of the Ministry of Tourism, a Branding Initiative for several villages was developed. Some of these initiatives can be included in the implementation of this pillar. Quadrant Development Initiative the National Vision Plan The government of Saint Lucia has commissioned the creation of a developmental road map for the future development of the island. The Saint Lucia National Vision Plan provides a broad overview of Saint Lucia and the development issues it faces. The Vision Plan is meant to serve as a framework for development, providing the tool by which all governmental and non-governmental agencies can identify and develop individual projects within a national Vision Plan. The Vision Plan first builds on the government s Live local work local initiative and ensures that future investment is spread throughout the island providing benefits to local communities not only in the creation of local jobs, but also through the circulation of wealth at the local level. SED interventions Discussions have been held with the St. Lucia Association of Musicians and Performers (STAMP), and the Eastern Caribbean Collective Organization for Music Rights (ECCO) Inc. to outline the best way forward for an intervention to improve the music sector in St. Lucia. It was agreed that a consultant should be contracted to prepare the necessary terms of reference for this intervention so as to ensure that sound TORs are prepared. It is anticipated that the intervention for the preparation for the said TORs will commence during the first week of November 2009 and run for a maximum of three weeks. The said organizations have already identified a suitable consultant for this intervention and preliminary discussions have ensued. In end of September three meetings took place with the Choiseul Crafts Cooperative, and with the Saint Lucia Textile Industry Cooperative Society. These meetings form an entry point for evaluation by Sequa whether these economic sectors (Arts & Crafts, Textile Industry) can be supported by an intervention under the pillar Sector Economic Development). 15 October 2009, Sequa ggmbh 12

13 Programme Pillar 2 (Result 2): Private and public sector agencies (Business Support institutions-bsi) have been upgraded (management systems and business support services-bss) Many business support institutions and/or business membership organizations are not yet fully functional. Their pattern is as follows: Table: Example of a typical Association (Arts and Craft Association St Lucia) While organizations in the first phase of their development are often trapped in the vicious circle of poor management practices, BMOs in phases two and three are suitable for donor support. The phases are not always distinct, membership organisations may often exhibit traits from two different phases: 15 October 2009, Sequa ggmbh 13

14 Ongoing Business Development Service Support Activities: Our Programm had meetings to establish a possible support with seven Associations: Scope of initial support by Sequa Organisation Small Business Association Small Hotel Association Chamber of Commerce and Agriculture Choiseul Crafts Cooperative Saint Lucia ICT Association (SLICTA) Saint Lucia Textile Industry Cooperative Society Coalition of Services Support Activity New member services New member services New member services Capacity Building, New member service Capacity Building,management skills training for board members and executives New member services Choiseul Arts and Craft Association: Sequa is willing to support the Choiseul Arts and Craft Association with capacity building and training measures in considering the OPSR Programme of Assistance to the Arts & Crafts Sector in Choiseul as an umbrella type of support under which we have commonly defined slots of activity for Sequa. Strictly speaking - definitionally - collaboration between our respective agencies would not be cofinancing but collaborating with the beneficiaries (OPSR on the cluster approach, Sequa on the BMO support). The Coalition of Services (SLCSI) The SLCSI is established as a public-private sector partnership, working in close collaboration with the Ministry of Trade, Industry, Commerce and Consumer Affairs, to strengthen and diversify Saint Lucia s services industry whose main objectives include: to provide institutional strengthening to service provider organizations/associations to educate St. Lucian service providers on relevant aspects of the CSME, WTO, EPA agreements and on any government policies or issues which affect trade in services; to promote high-quality standards for service providers by assisting in the adaptation of international best practices; to plan, organize, facilitate or co-ordinate meetings, seminars, workshops and consultations on topics related to service providers; Assist in organizing individual service providers into associations in order to enhance their capacity to export services. The SLCSI is under grant funding of EU which expires in January The SLCSI is awaiting a decision of GoSLU for supporting this important organization in the future. The significance of the importance of the SLCSI lies in the fact that it is providing incubator services for creating and supporting newly created association with specialized secretarial services (according the by laws of the respective associations). 15 October 2009, Sequa ggmbh 14

15 Further, the SLCI has meanwhile touched base with first professional associations in some communities where through the beneficial work of the SLCI positive effects are resulting on the quality of the small business like bakeries, hair dressers, garage proprietors. Should SLCI be able eventually through support of Sequa develop new services to make contributions to the improvement of the business climates in the communities then this would foster also the participative approach support of the local economic development. Programme Pillar 3 (Result 3): Administrative and Regulatory Framework for Development of the Private Sector has been improved (i.e. strengthening the Enabling Business Environment ) Approaches to address the Enabling Environment Our program pillar addresses both, the laws and regulations and the service delivery issues. We offered the Ministry of Commerce to work on the improvement on several business related procedures connected to permits, licensing, and administrative processes. The duration of our programme (ending in March 2011) would allow to work in depth and in quality on site and with the different agencies and ministries. The Business Environment Action Plan (BEAP) is an initiative of the Ministry of Commerce aimed at improving the business environment in the country through reforms or specific procedures and laws that impact on the private sector. Currently, it is operated by a three-person unit operating within the management structure of the Ministry, but consideration is being given to the establishment of a supervisory Task Force, in view of the wide range of the public sector actors involved. 15 October 2009, Sequa ggmbh 15

16 BEAP was formally established in April Prior to that, the government s reform agenda and priorities were set out in an internal reform memo, which has now been superseded by the operational plans of BEAP. The strategy and operations of BEAP are supported by technical assistance and training from the Doing Business team of the World Bank and also, through the USAID COTS programme (now closed). Of the two options regarding the overall approach to be taken, obviously a strategy of small-scale, short-duration interventions quick wins is preferred to an overall grand strategy of reform of the business environment the big bang approach. Generic Services for food safety and food security as the Bureau of Standards are also in need of support Quality infrastructure elements are essential for production and trade. Business and government use these elements to optimize production and assure quality. These elements are also necessary for facilitating regional and international trade. With the development and expansion of trade agreements at both the international and regional/bilateral level there is an increasing demand for countries to strengthen and modernize their national quality infrastructures. A number of companies that have achieved certification to food safety and management systems in Saint Lucia which includes: Certification No of Companies HACCP 4 ISO ISO ISO All of these certifications have been conducted by certifying bodies outside of the region. There are no accredited services available on island or in the region to provide certification to the internationally recognised food safety and management systems. A key requirement for achieving and sustaining this type of high quality production is the implementation of management systems such as the Hazard Analysis and Critical Control Points system (HACCP), ISO Food Safety Management Systems, ISO 9001 Quality Management Systems and ISO Environmental Management Systems. In order for local businesses to be competitive in today s economic environment, characterized by the establishment of a number of trade agreements such as the World Trade Organization (WTO), the Caribbean Single Market (CSM) and the European Partnership Agreement (EPA), Saint Lucia must develop its quality infrastructure or see its products and services face exclusion from most major markets. As the national standards body and national metrology institute, the Saint Lucia Bureau of Standards (SLBS) plays the lead role in the national quality infrastructure. To this end Sequa partners with the SLBS to develop an internationally recognized certification programme for food safety, quality and environmental management systems over the next 14 months. The overall objective of this project of signed on 6 July 2009 is as follows: To increase the competitiveness of the private sector in Saint Lucia (and the other OECS countries),through the establishment of an internationally recognized certification programme for food safety, quality and environmental management systems. 15 October 2009, Sequa ggmbh 16

17 The purpose of this contract (contract value ,56 XCD, or: 71, Euro) is as follows: Establishment of a twinning arrangement with an accredited certification body Development of human and institutional certification capacity. For the proper design of the reformed procedures, permits or licenses guidelines might need to be drafted or even laws to be amended. To this end Sequa could also field an experienced law drafting expert to coach the progress of the work in the working groups. Details and the selection of the business related procedures to be included into our work programme can be further discussed once we receive the green light from the Ministry of Commerce. For the implementation of the reforms, after the adoption of the adapted legal framework, the Sequa led program can also provide tailor made training to ministerial staff. Programme Pillar 4 (Result 4): In relevant areas of the economy human resource has been expanded and upgraded. The concept of the National Skills Centre was developed in 1997/98. There are now four of such institutions at Marc, Choiseul, Bexon and Castries. Usually, the trainee spends three days with the agency and the rest of the period with a firm or agency elsewhere over some six months. Most are placed with firms in the private sector. The centres have not yet become involved in the training of workers in the labour market. The centres were developed to provide a wide range of skills training to young people 18 to 25 years of age. The skills are presumably acquired on-the-job in the attachment that the trainee has with a firm or institution where the particular skill is employed. The Government pays 50 percent of the stipend of the trainee up to a limit of $400 per month, and the firm or organisation pays the rest. In effect then, the programme seeks to provide some entry level skills to young people who may not have worked before. On the other hand, persons in other age groups are not excluded from the programmes. The regular programme of the National Skills Centres lasts six months. Some number of trainees might be retained by their firms at the end of the six month period. The following are the fields offered - cosmetology, electrics, culinary skills, bartending, masonry, automechanics, photography, telemarketing, plumbing, and carpentry. There is also an occasional inhouse training programme for people The last such programme was conducted in 2004, and was funded with resources from the EU. Currently we are exploring together with OPSR ways of cooperation with NSDC and NELU. Sequa plans to define a vocational educational training programmes with recognized standards in collaboration with the Bureau of Standards and the respective educational institutions for targeting young and rural workers. In the last meeting of the SFA Coordination committee a proposal for training of a cohort of butchers in a model workshop according to latest standards was discussed. The Ministry of Agriculture advocates such training for begin 2010 to make a group of trained butchers available to set up a butchers shop in the communities with a new quality that did not exist before. The new abattoir is starting work in May The meat processing cooperative will follow. It would therefore be appropriate to define a butcher training programme well ahead. 15 October 2009, Sequa ggmbh 17

18 Sequa will explore with the German Chambers of Crafts and the German Senior Expert Service possibilities of sending qualified butchers with specific experience in meat processing and making sausages to St Lucia. Programme Pillar 5 (Result 5): Export readiness of small and medium private enterprises has been improved Since the start of our programme (since 04/2008) we have identified in our program support the following main areas: Food processing Capacity Building Coaching Marketing Production Improvement LED/BMO LED/Tourism. Within this programme pillar Sequa applies a two step approach with starts once a company is identified as eligible for support comprising of: Business assessment review and subsequent Business development services and coaching. The main sections of the Business Assessment Report for a services company are outlined in the Annex G. While the first step (the preparation of the business assessment report) as diagnostic for future actions is free for the applicant we ask for the implementation of these measures to be agreed with the beneficiary company a modest cost sharing contribution which varies between 15 and 20 % of the cost of the recommended intervention. Most of the interventions if provided without equipment are in the range of under Euros ( XCD). The following relevant plans and policies provided as guiding framework for work with the SMEs: Export Strategy, Private Sector Development Programme.. 15 October 2009, Sequa ggmbh 18

19 4.1 Coordination with other related PSD Projects Sequa is striving for coordination and cooperation with other PSD related projects working on PED Interventions Business Enabling Environment Export Readiness for companies. These defined co-operations with view to create synergy effects exist with different extend with OPSR (STRIDE programme), Chamber of Commerce (Competitiveness through Linkages programme) with view to greater synergies between the Governments pronounce policy and EU projects. By adding links to our programme website we want also to contribute to a road map for business development for beneficiaries (entrepreneurs) in Saint Lucia. 5. VERTICAL COORDINATION WITH GOVERNMENT BENEFICIARIES During the reporting period the two meetings of the SFA Coordination Committee took place. These meetings serve apart from the exchange of work plans securing synergy effects where ever possible within the execution of the various programs. A first meeting took also place with the St Lucian Development Bank who plans to approach Sequa for funding a so-called Credit Bureau as Business Support Institution (planned for providing members of the business community with reliable information on credit takers). For the next reporting period the programme director offers presentations of the Sequa led programme to ministerial staff of the relevant ministries to offer additional funding opportunities for projects related to the business community clientele of the ministry (Ministry of Commerce, Ministry of Agriculture, Social Development Fund). 15 October 2009, Sequa ggmbh 19

20 6. PROJECT PROGRESS DURING THE REPORTING PERIOD (1 July September 2009) Consideration will be given to project management issues, and to activities carried out and results being achieved under the reporting period. Project implementation through the reporting period has been affected by the delays in implementation of contracts through the pending of the approval of the budget addendum. The budget addendum came into effect on 22 June The Steering Committee *) The last Steering Committee meeting took place on 25 June 2009 at the Ministry of Commerce. In this meeting the Steering Committee requested an adjustment of the work plan to be presented at the next Steering Committee Meeting. This work plan is attached in annex E. 6.1 Activities and results During the reporting period key project activities have been carried, and results have started to be achieved in the programme pillars 1, 2 and 5. Details are outlined in the following tables: Annex A, B, E and F. During the reporting period the following contracts above 5000 Euro have been signed. As further activity the internal monitoring system has been enhanced in order for systematic capture observations and supervision. Reasons are: to better track project activities, mile stones and follow up activities in form of subsequent contracting. As result of this already a project pipeline for the Q 1/2010 has been created (see annex D). *) According to the Technical and Administrative Provisions for the Implementation of the SFA 2004 the already established National Economic Council will act as Steering Committee to our project, assisting the awarded agency with the identification of priorities, the provision of overall guidance and the direction during the implementation of the Grant Contract (Annex II of the related Financing Agreement on SFA 2004, signed on 15 Febr 2005 between the EC and the GOSLU). 15 October 2009, Sequa ggmbh 20

21 7. PROJECT PLANNING FOR THE NEXT REPORTING PERIOD (1 October --31 December 2009) Implementation of the new Work Plan (see annex C and F) and in combination with a communication plan. The next Steering Committee Meeting is likely to be held in November/Dec 2009 The planned projects will include the following industries and areas: Industry Agriculture Agro processing Control Institution Fabric Manufact. Fashion Designer Food Producer Freight Logistics Human Resource Manufacturing Media Natural Health Retailer Tourism Area Attraction BMO BMO Development Capacity build. Certification Coaching Company Dev. Crop Diversification Equipment Food analysis Food Processing Food safety,qual. mangemnt, envir. mgn t systems Human resource IT LED/BMO develop. LED/Tourism Marketing Production Tourism Training Vegetable Production Website Production Tourism Details of these projects are presented in Annex C 15 October 2009, Sequa ggmbh 21

22 The schedule of the programme in the next reporting period (Oct-Dec) is planned as follows: 15 October 2009, Sequa ggmbh 22

23 Implementation of pillar 1 During the Q 4 of this year we plan to reinforce the knowledge of the LDF of these communities with whom we have engaged cooperation already (Choiseul, Laborie, Micoud, Dennery). The newly joint communities to our programme (Canaries, Anse la Raye, Piaye,) would receive workshops aiming at the development of the platform for future successful LED intervention. Planned training topics are: Project Cycle Management methodology, Proposal writing and Preparation of Terms of References. In the future project monitoring would be added. Implementation of pillar 2 During the Q 4/2009 we plan to undertake capacity building of several BMOs who applied for future cooperation with Sequa. In addition we are expecting applications from Farmers Association, the Rural Business Women Association and the Coalition of Services. Implementation of pillar 3 The initiative for this pillar depends largely on the responses to our suggestion to cooperate with the Ministry of Commerce, Industries and Consumer Affairs as this can hardly be influenced by any additional PR by us. Secondly it will also depend on the future unfolding of the Trade Export Promotion Agency (TEPA) which is still under examination within the GoSLU. The Ministry of Tourism has requested us to examine the competitiveness of St Lucia as Tourism Destination and as consequence the appropriateness of the existing incentives. Implementation of pillar 4 Initial talks with the PS Mr Emmanuel in the Ministry of Agriculture suggest that in the next quarter we will have the opportunity to support the Farmers Association as BMO. Implementation of pillar 5 As outlined in the work plan table in Annex C a lot of new projects (around 50 will be under preparation) for supporting St Lucian companies under exposure of finding new export markets/ and or intensifying the degree of foreign exchange in supporting the tourism or other services sectors. 15 October 2009, Sequa ggmbh 23

24 ANNEXES 15 October 2009, Sequa ggmbh 24

25 Initial Work plan July 2009 September 2009 Annex A 15 October 2009, Sequa ggmbh 25

26 Annexes Achievements in the Reporting Period Annex B All the above projects are under contract. 15 October 2009, Sequa ggmbh 26

27 Annexes Planning for the next Reporting Period Oct 2009 Dec 2009 Annex C 15 October 2009, Sequa ggmbh 27

28 Annexes Tentative Planning Project Pipeline for the period January 2010 March 2010 Annex D Number Task Allocated Budget Project Manager Start End Duration 1 Reflection 50, $ KJ 1/1/ /2/ Trevor Phillips Agencies 50, $ SE 1/1/ /2/ Plas Kassav - Food analysis 40, $ KJ 1/1/ /1/ Plas Kassav - Marketing 30, $ KJ 1/1/2010 4/3/ St.Marks (Cox&Co) 15, $ KJ 1/1/ /3/ St.Marks (Cox&Co) 10, $ KJ 1/1/ /2/ Immortals Inc. - Human resource $ AG 2/1/ /2/ Immortals Inc. - coaching 15, $ AG 1/1/2010 4/3/ Immortals Inc. - fin. accounting 10, $ AG 1/1/2010 7/2/ Immortals Inc. - production 20, $ AG 1/1/2010 9/3/ Immortals Inc. - Management 15, $ AG 1/1/ /2/ Immortals Inc. - Marketing 20, $ AG 1/1/ /1/ MiCasa - Coaching 10, $ KJ 1/1/ /3/ MiCasa - IT 30, $ KJ 1/1/ /1/ MiCasa - Marketing 20, $ KJ 1/1/2010 9/3/ Frootsy Foods - HACCP Certification 20, $ AG 1/1/ /3/ Frootsy Foods - Website 15, $ AG 1/1/ /1/ Frootsy Foods - Product development 50, $ AG 1/1/2010 3/3/ Frootsy Foods - IT 5, $ AG 1/1/ /2/ Viking Traders - Certification 40, $ KJ 1/1/ /1/ Viking Traders - Label Develoment 30, $ KJ 1/1/2010 6/2/ Viking Traders - Trade mark registration 25, $ KJ 1/1/ /2/ Le Soleil Bris - Marketing 40, $ KJ 1/1/ /1/ Le Soleil Bris - 25, $ KJ 1/1/2010 1/3/ Le Soleil Bris - Small equipment 35, $ KJ 1/1/2010 5/1/ St.Lucia Bay Rum - Production 20, $ AG 1/1/ /2/ St.Lucia Bay Rum - Coaching 18, $ AG 1/1/2010 3/3/ St.Lucia Bay Rum - Marketing $ AG 1/1/2010 4/3/ SLHTA 60, $ SE 1/1/2010 2/4/ SLHTA 36, $ SE 1/1/2010 2/4/ NSDC 650, $ KJ 1/1/2010 2/4/ Nelp 96, $ KJ 1/1/2010 2/4/ Dennery Vistor Center 102, $ KJ 1/1/2010 2/4/ Dennery Fish processing 73, $ KJ 1/1/2010 2/4/ Micoud Eco Tourism 160, $ AG 1/1/2010 2/4/ Micoud Fish processing 35, $ AG 1/1/2010 2/4/ Micoud Product preservation 77, $ AG 1/1/2010 2/4/ Choisel Craft Dev. 94, $ RD 1/1/2010 2/4/ Choisel Tourism Dev. 71, $ RD 1/1/2010 2/4/ Laborie Tourism - (follow up contract) 75, $ SE 1/1/2010 2/4/ Laborie Arts & Craft (follow up contract) 43, $ SE 1/1/2010 2/4/ Laborie Agroprocessing 17, $ SE 1/1/2010 2/4/ Laborie Agridiversification 19, $ SE 1/1/2010 2/4/ Q January February March 15 October 2009, Sequa ggmbh 28

29 Annexes Financial Overview as per 30 Sept (Contracting Rate) Annex E 06/ /08-06/09 06/ /09 15 October 2009, Sequa ggmbh 29

30 Annexes Overall Work Plan Annex F 15 October 2009, Sequa ggmbh 30

31 Annexes Structure of Business Assessment Review The main sections of the Business Assessment Report for a services company are outlined in the the following: Section Heading Main Aim A. Company Information To state Company details, if related to a group of companies, number of employees, nature of business B. Analysis of Business To state the Company s ideas of business opportunities and plans with emphasis on export and cooperation with foreign companies C. Marketing To establish the position of the company in the market (objectives, competition, market research, market share, promotion plans) D. Manufacturing/ To assess the premises, equipment and Service oriented firms the use of technology. E. Quality To state existence of formal quality assurance system, manuals, to estimate current cost of poor quality, rejections. F. Distribution To establish how the Company distributes its products and the osts associated with this G. Management & Power To establish the structure, number of employees by position, use of training programmes, labour turnover, absenteeism rate H. Financial Information To reach an agreed assessment of current financial position of the Company. To identify the main customers, the credit policy, and to assess the level of accounts receivable. 15 October 2009, Sequa ggmbh 31

32 Annexes I. SWOT Analysis Joint assessment by Company and Consultant of Company Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T), constraints faced by the Company. J. PEST Analysis To assess the impact of the external macro-environment within which the firm operates in terms of the following factors: Political, Environmental, Social and Technological. K. Conclusion To justify in a concise manner the feasibility of the project and the financial capacity of the firm to undertake such a project. 15 October 2009, Sequa ggmbh 32