developpp.de Development Partnerships with the Private Sector Ulaanbaatar, 12.10.2016
1 GIZ facts and figures 2 The programme developpp.de 3 The instrument and process 4 Project Examples Page 2
1 GIZ facts and figures GIZ is a federal enterprise, 100 % owned by the German Government GIZ is working under private law, as a GmbH We support the German Government in achieving its objectives in the field of international cooperation for sustainable development. GIZ operates in more than 130 countries worldwide 17,000 employees (70 % as national staff) EUR 2.1 billion business volume GIZ works on behalf of the Federal German Government as well as other public and private, national and international clients. Promotes complex reforms and processes of change in different sectors such as: Sustainable economic development, energy, transport, infrastructure management, health, environment, climate and biodiversity. Page 3
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Your partner for international cooperation and sustainable development 17/10/2016 Type presentation title here Page 4
2 The programme developpp.de Development Partnerships with the Private Sector Page 5
What is developpp.de? The developpp.de program was initiated by the German Federal Ministry for Economic Cooperation and Development (BMZ) and stands for cooperation between the private sector and development cooperation. In development partnerships companies and development organisations jointly plan, finance and implement projects. The implementing development organisations are GIZ, DEG and sequa, the projects are financed by the German Federal Ministry for Economic Cooperation and Development (BMZ). The innovativeness of businesses combined with the resources, knowledge and experience of the German development cooperation creates synergy effects. Page 6
Why development partnerships? Private Partner Common goals Public Partner Assurance of supply chains, market entry and expansion in other countries Marketing of products Finding new customers and ensuring customer loyalty Corporate Social Responsibility (CSR) Improvement of quality and productiveness Improvement of local economic and living conditions Establishment of sustainable supply chains Mobilisation of capital and know-how Involvement of local communities in economic cycles Page 7
How can GIZ assist you? Create additional benefit for the private partner - As a federal enterprise with a global network we can offer various contacts to governments, local authorities and decision makers in the political field - Intercultural know-how and local management experience - Sustainable and effective solutions in political, economic and social change processes - Financial assistance in implementing common projects (direct funding) - Provide personnel assistance in implementing common projects (indirect funding) Page 8
3 The instrument and process Ideas competition 4 application phases per year Strategic Development Partnerships (Strategic Alliances) Who European companies Local companies in which EU registered companies own at least a 25 % share Sector All sectors, project duration max. 3 years Volume Max. 50 % of the project costs Up to max. 200,000 GIZ financial contribution or assistance in terms of GIZ knowhow Conditions Annual turnover of at least Euro 1 million At least ten employees Three years of business operations Minimum 750,000 total project volume Up to 50 % GIZ contribution Assistance in terms of GIZ knowhow, no direct financial assistance Plus minimum two partner companies Process Application end of every quarter At any time Page 9
Opportunities for cooperation Two ways of cooperation Financial participation Participation in terms of GIZ know-how Consulting contract Cooperation contract Ideas competition Ideas competition Strategic Development Partnerships Page 10
4 Project Examples Opportunities for Cooperation Model 1: Consulting contract (= financial participation) Joint project but: - The project will be implemented by the private company alone - Cost sharing basis: up to 50 % of the total project costs will be covered by GIZ, up to 200,000 Euro - GIZ will transfer money directly to the private company, based on clear milestones and achieved results (frequent monitoring and reporting is obligatory) - Based on several terms and conditions: - Personnel net costs or manufacturing costs - All costs have to be verified and confirmed by a certified accountant or an auditing company Page 11
Example Joint project on: CNC Training Challenge: - Lack of qualified CNC experts - Vocational schools do not offer any practice oriented education for CNC experts Activities of the company during the project - Baseline Study - Selection of partner schools - Supply and installation of software - Implementation of teacher trainings - Handing over of software and training materials Results: Teachers are qualified to educate experts and students Improved employment chances for CNC experts Market entry successfully supported Private company is responsible for implementation of whole project GIZ will cover up to 50 % of the project costs, maximum Euro 200,000 Page 12
Opportunities for Cooperation Model 2: Cooperation agreement (= participation in terms of GIZ know-how) Joint project, but: - the project will be implemented by the private company and GIZ - based on clear working packages, each partner is implementing own working packages, on own costs and on own responsibility - GIZ can cover up to 50 % of the total project volume, up to a maximum of 200,000 Euro: - Renting offices, organising and conducting workshops, contracting experts, networking, procurement etc. - Joint reporting and monitoring activities - Private company must submit a report on its own spending of the costs Page 13
Example Joint project on: Introducing a Car Sharing System Interest of the company: - Market entry - First mover in the market - Market expansion Interest of the public partner: - Introducing new solutions for sustainable urban transport - Reduction of individual traffic and reduction of CO2 in cities Joint implementation of the project Activities of the company: Introducing the system in pilot cities Study on general conditions Information events and awareness activities Activities of the public partner: Development of general standards for car sharing Development of policy recommendations Policy networking and policy advice for cities Page 14
Further Project Examples Development of education and training programmes and curricula: Demand / labor market oriented training with the involvement of prospective employers, e.g. elaborating and introducing new curricula for training. Elaborating and introduction of a new curricula for a three years education for mechatronics Transfer of technology: networking with political and private decision makers, organizing and conducting workshops, awareness and PR campaigns Optimisation of value creation / supply chain: Improvements to secure the success of a market-based value chain, e.g. traceability system in the toy industry Introduction of nationwide guidelines and standards: e.g. new water standard for the food and beverage industry, guidelines for carsharing, guidelines for publicly funded biogas plants Introduction of internal or national improvements: e.g. introduction of occupational health and safety arrangements: elaborating an 8 months training manual for health and safety officer in the mining industry. But we are open to discuss any other idea.. Page 15
General Conditions Compatibility with the German BMZ development policy guidelines Complementarity: the cooperation enables both partners to achieve their respective objectives more quickly, more efficiently and more cost-effectively Subsidiarity: the project is not required by law, the private partner would not implement the project without the public partner Sustainability: the project must be embedded in the long term sustainable involvement of the company in the country. Private Sector participation: the private sector is responsible for a minimum of 50 % of the project costs. Commercial interest: The company must demonstrate a clear commercial interest in the project. Page 16
Phases of a development partnership Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Submission of your ideas and your project proposal Ideas competition Evaluation of your proposal Evaluation is based on clear and defined criteria's Development of a detailed concept and operation plan including a calculation of the costs Conclusion of the contract and start of the project Implemen- tation of the project with regular reporting of the project progress and regular invoicing End of the project Final reporting and final invoicing Page 17
GIZ does not offer: Subsidies for business operations Export promotion Venture-capital measures Low-interest loans Page 18
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Contact Thomas Doering Business Unit Private Sector Cooperation Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammarskjöld-Weg 1-5 65760 Eschborn Tel: +49 (0) 6196-79 2133 Fax: +49 (0) 6196-79 80 2133 Email: thomas.doering@giz.de Internet: www.giz.de Page 20