Project overview 2006 PSOMProgramme for Cooperation with Emerging Markets

The PSOM programme is run by the EVD

on behalf of the Ministry of Foreign

Affairs and the Ministry of Economic

Affairs

www.evd.nl/psom

Dear reader,

The EVD is proud to present an overview of all the new B2B projects developed in 2006 under theProgramme for Cooperation with Emerging Markets (PSOM).

The purpose of the Programme for Cooperation with Emerging Markets (PSOM) is to assist Netherlands private companies in their contribution to the sustainable economic development of and positioning in emerging markets. PSOM finances projects to ease some of the initial risks that companies will face wheninvesting in emerging markets. This also benefits the emerging markets by generating employment, incomeand know-how and boosting the capacity of the local private sector. The programme is supported by both theNetherlands Ministry of Foreign Affairs (Development Cooperation) and the Netherlands Ministry of EconomicAffairs.

In 2006, 64 million euros were allocated to 109 new PSOM projects in Asia, Africa, Latin America and Eastern Europe.

The first PSOM tender in 2006 was open for 47 countries, in the second tender Sudan was added to the list.

The PSOM program in the following countries was supported by the Ministry of Foreign Affairs (PSOM-OS):

The PSOM program in the following countries was supported by the Ministry of Economic Affairs (PSOM-EZ):

We hope this publication will generate new ideas for new projects between companies in the Netherlandsand in emerging markets. Many companies have already found their way to PSOM, and many more are welcome.

Aad de Koning Judith ArendsManager PSOM-EZ Manager PSOM-OS

Afghanistan Albania Armenia Bangladesh Benin Bolivia Bosnia-HerzegovinaBurkina Faso Cape Verde China Colombia

Egypt Ethiopia Georgia Ghana Guatemala India Indonesia Kenya Macedonia Mali Moldova

Mongolia Mozambique Nicaragua Pakistan Palestinian AuthoritiesPeru Philippines Rwanda Senegal South Africa Sri Lanka

Sudan Surinam Tanzania Thailand Uganda Vietnam Yemen Zambia

BulgariaKazakhstanRomaniaRussian Federation

Serbia and MontenegroTurkeyUkraine

PSOM project overview 2006

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Africa 7

Benin 8 PSOM06/BJ/01 Royal fish Benin 8

Cape Verde 9 PSOM06/CV/21 Princesa De Cabo Verde; Pilot high-quality beer brewing Cape Verde 9

Egypt 10 PSOM06/EG/01 Pilot production of grafted vegetable seedlings 10 PSOM06/EG/03 Pilot project metal waste recycling Sadat City, Egypt 11 PSOM06/EG/21 Winter Capsicums from Egypt - world class products from an emerging agricultural nation 12

Ethiopia 13 PSOM06/ET/02 Professional horticultural services 13 PSOM06/ET/22 Introduction of a seed potato production system in Ethiopia 14 PSOM06/ET/25 Glass technology centre 15 PSOM06/ET/26 Cosmar East Africa 16

Ghana 17 PSOM06/GH/01 Pilot production of fair trade organic pineapples for export 17 PSOM06/GH/23 Pilot for modern service facility for trucks and heavy duty vehicles 18

Kenya 19 PSOM06/KE/21 Local to local - linking Kenyan flower growers to new marketing opportunities 19

Mali 20 PSOM06/ML/21 Pilot for processing biodiesel from Jatropha nuts in the Koulikoro region, Mali 20 PSOM06/ML/22 Sun dried tomatoes from Mali, a taste of sunshine! 21 PSOM06/ML/23 Solar plant in the cotton zone of Koutiala, Mali. Expansion of the commercial use of electricity 22

Mozambique 23 PSOM06/MZ/01 An export quality control poultry abattoir with out grower scheme for northern Mozambique 23 PSOM06/MZ/21 Mozambique papaya pioneers 24 PSOM06/MZ/22 Commercial castor oil plant 25 PSOM06/MZ/24 Jangamo cotton gin 26

Rwanda 27 PSOM06/RW/21 Establishment of a professional private water supply operator in Rwanda 27

South Africa 28 PSOM06/SA/01 Professionalizing the South African compost industry 28 PSOM06/SA/21 Artificial turf system production in South Africa 29

Tanzania 30 PSOM06/TZ/01 Lily production in Arusha, Tanzania 30

Uganda 31 PSOM06/UG/01 Establishing an organic and fair-trade cotton processing chain in Uganda 31 PSOM06/UG/03 Clean fuels for Uganda 32 PSOM06/UG/23 SIPI Falls Bugisa: enhancing smallholder arabica quality through central wet processing 33

Asia 35

Afghanistan 36 PSOM06/AF/01 Distribution centre Kabul, Afghanistan 36 PSOM06/AF/21 Towards a full-service state-of-the-art truck support centre in the northwestern region of

Afghanistan 37

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Bangladesh 38 PSOM06/BD/01 High quality printed PE packaging materials for export from Bangladesh 38 PSOM06/BD/21 Pilot professional bio fertilizer plant Bangladesh 39 PSOM06/BD/22 Introducing digital printing technology for garment tagging in Bangladesh 40 PSOM06/BD/24 Bigbag production in Bangladesh 41

China 42 PSOM06/CH/01 Development of an integrated chain for the production and processing of organic apples in

Liaoning Province 42 PSOM06/CH/02 Pilot Calla product chain development Yunnan 43 PSOM06/CH/03 Henan dairy farm comfort and hygiene 44 PSOM06/CH/21 Hebei proportional hydraulic plant 45 PSOM06/CH/22 Piloting organic production of premium roses in an integrated supply chain 46

India 47 PSOM06/IN/01 Manufacturing and marketing of custom-made enriched coir-based growing media 47 PSOM06/IN/02 High-tech, fine mechanical metalworking for the medical industry in Kanpur 48 PSOM06/IN/03 Verga Attachments Ltd 49 PSOM06/IN/21 New production plant in Chennai (India) for the purification and bottling of raw sea water into

high quality drinking water 50 PSOM06/IN/23 Pilot production of high quality automotive carpet at Pune, state of Maharashtra, India 51 PSOM06/IN/24 High end automotive research and design centre India 52

Indonesia 53 PSOM06/RI/01 Establishing a pilot production facility in Indonesia for the production of precision mechanical

parts and components 53 PSOM06/RI/22 Aloe vera processing on Bali - Medicine Against Unemployment 54 PSOM06/RI/25 Multi functional cardiovascular infrastructure Indonesia 55 PSOM06/RI/26 CINCO - added value to spices by means of supply chain control and processing 56 PSOM06/RI/27 Indonesia's first bio secure indoor shrimp farm 57

Pakistan 58 PSOM06/PK/01 ProFarm Pakistan Ltd 58 PSOM06/PK/02 Fine fragrance and flavour extract manufacturing with benign solvent extraction 59 PSOM06/PK/21 Muta Pakistan Project (MPP), Production and sublimation of sportswear 60

Philippines 61 PSOM06/PH/01 Oil and gas drilling and production for marginal fields 61 PSOM06/PH/21 Improving horticultural practices in the Philippines through piloting year-round availability of

safe and high quality vegetable plug transplants 62 PSOM06/PH/23 Organic pineapple development project 63

Thailand 64 PSOM06/TH/01 Manufacturing of composite aircraft interior parts in Thailand 64 PSOM06/TH/21 Standardized coco-peat production for Thailand 65

Vietnam 66 PSOM06/VN/01 Life Resort Halong Bay 66 PSOM06/VN/22 Integrating vegetable smallholders into modern retail markets 67 PSOM06/VN/23 Cold chain Vietnam 68 PSOM06/VN/24 Pilot production medical devices and its subassemblies for export, Vietnam 69 PSOM06/VN/26 Cable harness: 'made in Vietnam' 70

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Central and Eastern Europe 71

Bosnia and Herzegovina 72 PSOM06/BA/01 Production of fine wire heat exchangers 72 PSOM06/BA/02 High quality injection products of non-ferro and plastic 73 PSOM06/BA/05 A complete new dairy farm 74 PSOM06/BA/22 The setting up of a swimming pool production facility in Bosnia and Herzegovina 75 PSOM06/BA/23 Production of Bio-Fuel from wood waste 76 PSOM06/BA/25 Euro Development of Milk by-products in Bosnia and Herzegovina 77

Bulgaria 78 PSOM6/BG/2/2 Upgrade Electronic Manufacturing Service (EMS) 78 PSOM6/BG/2/3 Production of high quality professional kitchens in Bulgaria 79

Georgia 80 PSOM6/GE/01 Improving operations in intercity passenger transport in Georgia 80 PSOM06/GE/22 Establishment of "Geneplast Ltd": the leading plastic processing industry in Tbilisi/Batumi,

Georgia 81

Macedonia 82 PSOM06/MK/21 The FrysMac Dairy Plant 82 PSOM06/MK/23 Production, processing and export of PURE frozen fruit from Macedonia 83 PSOM06/MK/24 Production line for wire products with high productivity and quality 84

Moldova 85 PSOM06/MD/02 Production facility for the production of ‘rattle and squeeze’ products for the automotive industry 85 PSOM06/MD/21 Production of monorail conveyor systems in Moldova 86

Romania 87 PSOM6/RM/1/3 Development of a strawberry supply chain 87 PSOM6/RM/2/3 Sofas and armchairs for a comfortable future in Romania 88 PSOM6/RM/2/11 Production of semi low-loader trailers in Romania 89 PSOM6/RM/2/16 What a waste 90 PSOM6/RM/3/1 Development of a Do It Yourself wholesales and distribution centre for Romanian retailers 91 PSOM6/RM/3/2 Fleet Management Solutions 92

The Russian Federation 93 PSOM6/RF/3/1 Introduction of the DAF Logistical Concept to the Russian market 93 PSOM6/RF/2/3 Modern production of returnable plastic packaging 94 PSOM6/RF/2/5 Establishment of a factory and business for manufacturing of sandwich panel and cold storages

facilities in the Russian Federation 95 PSOM6/RF/2/6 Establishment of a chain of shops for shoe repair and related services and products, so-called

multishops 96 PSOM6/RF/3/1 Introduction of the DAF Logistical Concept to the Russian market 97

Serbia and Montenegro 98 PSOM6/SB/1/1 Upgrading and expanding the pet food production and sales at Premil Serbia and Montenegro 98 PSOM6/SB/2/1 Establishing Rodenstaal Balkan 99 PSOM6/SB/2/2 Industrial production of frozen filled bake stable pastry products 100 PSOM6/SB/2/4 Matching Serbian design, engineering and craftsmen capacity with Dutch shipbuilding skills 101

Turkey 102 PSOM6/TR/1/1 Innovative, animal friendly poultry farm in Turkey 102 PSOM6/TR/1/7 Ramiro production Adana 103 PSOM6/TR/2/1 Production of tailor made growing media 104 PSOM6/TR/2/5 Establishing an integral organic baby food processing chain in Turkey 105

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PSOM6/TR/2/6 Establishing a viable testing and certification business for manufacturers of gas appliances and gas related products in Turkey 106

PSOM6/TR/2/7 Production of flue gas exhaust systems in Turkey 107 PSOM6/TR/2/9 Waste water treatments systems for industrial processing plants in Turkey 108 PSOM6/TR/2/10 Project for setting up a sales and comakership unit in Turkey for selling and marketing feed

mill installations 109

Ukraine 110 PSOM6/UA/1/1 Pure line pig breeding in the Ukraine 110 PSOM6/UA/1/4 Second generation pig industry Ukraine 111 PSOM6/UA/2/6 Founding a Clinical Research Organisation (CRO) in Kiev (Pilipovichi) 112

Latin America 113

Bolivia 114 PSOM06/BO/01 Establishing a chrysanthemum cuttings production site in Bolivia 114

Colombia 115 PSOM06/CO/01 Manufacture of cut flower care products and provision of associated services for post-harvest

quality chain 115 PSOM06/CO/21 Promotion of Zantedeschia and strengthening of Alstroemeria cultivation in Colombia 116 PSOM06/CO/22 Chilli paste and chilli sauce factory 117

Peru 119 PSOM06/PE/21 Building up a producer-owned quality supply channel for organic fair trade bananas in

northern Peru 119

Surinam 121 PSOM06/SR/01 Establishing a private residential care centre in Surinam 121 PSOM06/SR/04 'Spang Makandra N.V.' - Surinam e-media development studio 122 PSOM06/SR/21 Surinam jungle experience Berg en Dal 123

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Africa

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Benin

PSOM06/BJ/01 Royal fish Benin

Applicant Hesy Aquaculture B.V., Kwintsheul Recipient Groupe Oceane International S.A.R.L., Porto Novo Start project 01 July 2006 End project 01 July 2008 Total budget EUR 809,743

Summary: Applicant Hesy Aquaculture B.V. is a company specialised in the design and construction of turn key re-circulated freshwater and seawater fish farms. Hesy has installed more than 50 fish farms all over the world, also providing for training, technical advice and marketing services. The recipient Group Oceane International S.A.R.L. started a traditional tilapia and catfish farm on muddy soil in Benin in 2002. Oceane wishes to start a fish farm with modern breeding techniques and technology resulting in higher yields and fish of better quality. Hesy is interested in establishing a company in Benin that can be used as venue for demonstration and training with regard to future projects in the region. The third partner, the Venture Capital company I&P, specialised in investment in SME companies in developing countries, subscribes to the huge potential of fish farming in Benin and supports the project financially. The annual demand for fish in Benin of 80,000 tonne is much higher than the actual offer leaving a gap of some 12,000 ton. Fish meat is the main source of animal protein for most people, although prices for fish are very high due to the low offer. The traditional fishing methods cause low yields and pollution of the lagoons and rivers. The project partners will start a multi-fish farm in Vakon, Porto-Novo, with modern breeding techniques for the production of 100 tonne catfish and one million fingerlings per year. The system is also suitable for the breeding of tilapia. The farm consists of twenty water basins, drum filters, water pumps, ultraviolet-installations, ventilators, and laboratory equipment. The fish will be sold on the local market through wholesale companies and will be exported to Nigeria where a large market exists for catfish. Half of the fingerlings will be used in the farm and half will be sold to local fishermen. The joint venture will employ twenty people including one manager who will all get extensive training in design and construction of fish farms, breeding, biological control, fingerlings multiplication, waste water treatment and energy efficiency, hygiene and marketing. Hesy will bring in capital goods and experience on fish farming, training and supervision of the production. Oceane will see to the day to day management of the farm and the distribution in Benin and Nigeria. I&P will be responsible for part of the investment and for managerial and financial assistance to Oceane. Results • Joint venture established; • Production facilities established; • Employees contracted and trained; • First test production realised; • Production, sales, marketing and follow-up business planning.

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Cape Verde

PSOM06/CV/21 Princesa De Cabo Verde; Pilot high-quality beer brewing Cape Verde

Applicant De Gouwe Interhold B.V., Gouda Recipient Padaria Vitória Lda, Sao Vicente Partner Sint-Sebastiaan Belgian Microbrewery N.V., Meer Start project 01 January 2007 End project 31 December 2008 Total budget EUR 839,962

Summary: The objective of De Gouwe Interhold B.V., industrial bakery Padaria Vitória Lda and Sint-Sebastiaan Belgian Microbrewery N.V. (SBM) is to establish a modern, pilot-scale beer brewery in San Vincente/Cape Verde with a pilot capacity of 270,000 litres/year, based on centuries-old specialist Belgian beer brewing knowledge. In recent decades, Cape Verde’s per capita alcohol consumption has fluctuated greatly. Until the late 1990s, wine was the most popular alcoholic beverage in Cape Verde. Another popular traditional alcoholic beverage is cheap grog, made of sugar cane and with a high alcohol content (up to 65 percent). Beer consumption has been rising since the mid-1990s, however, and is now the most popular alcoholic drink in Cape Verde. Cape Verde domestic beer consumption is currently estimated at approximately eleven million litres/year. However, 85 percent of the beer consumed in Cape Verde is imported, mainly from Portugal. This situation represents a business opportunity to establish a modern small-scale quality beer brewery in Cape Verde. During the PSOM phase, fourteen people will be employed and trained in all aspects of the beer brewing process in the Netherlands and Belgium, including quality management and HACCP certification. The project is expected to have a positive effect on the environment, as a bottle-return system will be introduced. Cape Verde has a serious litter problem, much of which consists of empty beer bottles. By returning a small deposit on empty beer bottles, the joint venture wants to contribute to a cleaner Cape Verde, with a positive impact on tourism. In addition, the equipment is low-energy and low-water consumption. A joint venture will be established in which all three partners will have 33.3 percent of the shares. Results • Joint venture established between De Gouwe Interhold B.V., Padaria Vitória Lda and Sint-Sebastiaan Belgian

Microbrewery N.V.; • Beer brewery completed and operational; • Staff hired and trained; • Production result and marketing strategy developed; • Project completion.

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Egypt

PSOM06/EG/01 Pilot production of grafted vegetable seedlings

Applicant Grow Holding B.V., Naaldwijk Recipient Libra Biodynamic Agriculture Co. SAE (Libra Egypt), Heliopolis - Cairo Start project 01 July 2006 End project 01 July 2008 Total budget EUR 1,200,287

Summary: Egypt has a high potential in the agricultural sector. The warm but moderate climate allows up to three growing seasons per year, which fit in well with the European off-seasons. The relatively low production and infrastructural costs in Egypt make the country competitive compared to other regional exporters. However, these promising conditions are constrained by a lack of technical development of the agricultural sector. A major problem is that vegetable nurseries are not up to required standards. In particular, the intensive greenhouse and vegetable sector needs to adopt technological solutions such as grafting to overcome current constraints. In order to provide an alternative, applicant Grow Group and recipient Libra will form a joint venture to establish a reliable plant nursery and grafting service for export oriented greenhouses and vegetable producers. Grow Group is specialised in raising vegetable plants for commercial growers and especially in grafting of fruit-bearing vegetable crops. Libra is an Egyptian producer of organic vegetables, working with 350 farmers throughout Egypt. Through following the latest phytosanitary and agricultural standards and implementing grafting technology, more profitable plants will be provided. The project is to be located at Libra’s land at El Katiba where a site is available for the construction of the greenhouses and a grafting room. On an area of 2 hectare the joint venture will graft and raise cantaloupe, cucumber, aubergine, pepper, tomato and watermelon in modern greenhouses with a capacity of five million seedlings per year. Six full time and 50-75 seasonal persons will be employed. All staff members will be trained in grafting techniques and germination and growing of young plants, plant husbandry and handling and transplanting. Within five years after the project the farm will increase to 4 hectare of greenhouses with a capacity of eleven million seedlings per year. Results • Establishment of the joint venture (50/50); • Establishment of nursery, grafting room and packing facility and training of staff; • Production of high quality grafted seedlings; • Development of business plan for follow-up investments.

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Egypt

PSOM06/EG/03 Pilot project metal waste recycling Sadat City, Egypt

Applicant Standard Holland B.V., Duiven Recipient El-Negm Co. for Metal and Plastic industries Private Co., Gesr El-Sues - Cairo Start project 01 July 2006 End project 01 July 2008 Total budget EUR 1,500,000

Summary: To date most low grade metal waste in Egypt, like rusting car parts, refrigerators and old metal barrels, is dumped anywhere or disposed of at designated landfill sites, bringing harm to the environment. Due to economic reasons, recycling of this kind of scrap is non existent in Egypt; the value is very limited and there is no organised and efficient collection system in place. However, an increase in steel production capacity and, as a result, increase in demand for the raw materials to produce steel including scrap, makes recycling interesting. In order to establish a professional waste recycling plant, applicant Standard Holland and recipient El-Negm will form a joint venture. Standard Holland is active in international trade in machines and capital goods and has supplied the recipient machines and equipment for scrap handling as well as spare parts and ancillary machines. El-Negm performs trade-, material-handling and -processing activities aimed at supplying the local and international steel industry with suitable raw materials. Until 1.5 years ago the owner of El-Negm was involved in sorting and pressing this waste scrap until these customers in accordance with international trends stopped buying pressed scrap altogether. The project will focus on a not yet existing market niche. Through the realisation of the project unsorted low grade metal waste will be turned into a high quality raw material for the local and/or international steel industry and thus reduce the required import of raw material of the local steel industry or generate foreign currency in case of exports. The project is to be located on the premises of El-Negm in Sadat City. A recycling facility will be established with a capacity of 25,000 tonne metal waste a year. Follow up investments will include tripling the capacity within six years from date. Twenty persons will be employed and trained in metal recycling and mechanical and scrap handling. Results • Establishment of joint venture (50/50); • Site preparation; • Procurement of hardware; • Installation of hardware; • Training of staff and pilot production.

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Egypt

PSOM06/EG/21 Winter Capsicums from Egypt - world class products from an emerging agricultural nation

Applicant Van Rijn International B.V., Poeldijk Recipient Daltex El Wadi, Mohandessin, Giza - Cairo Start project 20 November 2006 End project 30 September 2008 Total budget EUR 1,500,000

Summary: Applicant Van Rijn International sells nearly 20,000 tonne of Capsicums annually to customers in Europe and overseas. The company purchases the products mainly from Dutch growers, but ten-fifteen percent of annual Capsicum sales are transacted during the European winter season (November - March), when no Dutch products are available. In addition, customers wish to reduce the number of suppliers to a small group that can offer the full range of products, any time, anywhere, for a good price. In order to join this group, Van Rijn and recipient Daltex will form a joint venture, their aim being to set up a production facility for Capsicums at one of Daltex’s farms with a capacity of 1,000 tonne of Capsicums per year. This will provide Van Rijn and Daltex with high quality Capsicums (HACCP, EurepGAP) during winter season at a competitive price. The production facility will be a greenhouse with a surface area of 5 hectare, built according to European standards. The greenhouse includes the necessary equipment, for example a Growth Management System, water, electricity and heating systems. By basing the facility on European standards, the companies will create a solid basis for guaranteeing top quality and maximum quantities. Working with local people will lower the product cost compared with Capsicums produced in Europe. The project will employ 63 people, all of whom will be trained in Capsicum cultivation by a Dutch Capsicum grower: planting, growing, nutrition, watering, climate control, harvesting, washing, cool storage, and packaging. The Salma farm, the site chosen for the project, has a total size of 35 hectare available for growing Capsicums, leaving sufficient room for further expansion. The plan is to enlarge the production site by another 5 hectare two years after the project ends. Follow-up investments are expected to create additional employment for 50 people. Results • Joint venture (50/50) established; • Greenhouse constructed; • Staff trained and EurepGAP and HACCP certification; • Pilot production and business development.

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Ethiopia

PSOM06/ET/02 Professional horticultural services

Applicant Coöperatie Horticoop U.A., Bleiswijk Recipient Flora Agriculture Estate plc, Addis Ababa Start project 01 July 2006 End project 30 June 2008 Total budget EUR 811,561

Summary: Ethiopia’s horticultural industry, and particularly the flower sector is currently enjoying rapid expansion, aided by the country’s climate, different altitudes and investment friendly tax regime. While the area under greenhouses is expanding, the associated services that the growers require have not kept pace with developments. There are no specialist suppliers of horticultural inputs and services in the country, and no laboratories capable of undertaking the soil and water tests that producers require regularly in order to optimise their inputs. This project will create a joint venture between the Dutch horticultural Coöperatie Horticoop U.A., the Ethiopian horticultural company Flora Agriculture Estate plc (Flora) and the Dutch agricultural soil and water laboratory ALTIC B.V.. The objective is to bring as broad a range of horticultural products and services to producers in Ethiopia as are available to their counterparts elsewhere. This includes supply of essential inputs for producing flowers and vegetables as well as the hardware that is required within greenhouses. In addition, Horticoop Ethiopia will provide a range of services. This will include soil and water analysis, advice on cultivation and the correct response in terms of fertiliser and chemical usage to optimise the inputs, integrated pest management, preparation for MPS and EurepGAP certification, and assistance with the maintenance of commonly used equipment. In addition training and advice will be provided on best post harvest handling and transport procedures to optimise value of flowers reaching the Dutch auctions. Location of the service centre will be in Debre Zeit, south of Addis Ababa. Results • Joint venture established; • Horticultural service centre established; • Advisory unit established; • Soil and water analysis laboratory established; • Project completion.

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Ethiopia

PSOM06/ET/22 Introduction of a seed potato production system in Ethiopia

Applicant HZPC Holland B.V., Joure Recipient SolaGrow PLC, Debre Zeyit Start project 15 December 2006 End project 31 December 2008 Total budget EUR 839,815

Summary: Ethiopia is one of the East-African countries in which the potato is a major food crop. Around 170,000 hectare of potato are grown annually. However, potato yields per hectare are very low (8 tonne/hectare), mainly due to the lack of healthy seed potatoes of suitable varieties. Farmers use small and degenerated tubers, separated from their last crop. The growing human population together with the fragile food situation in Ethiopia makes it necessary to improve food production in the country. Ethiopian research institutes have developed adapted varieties in the past decade, but they did not reach the farmers, as there is no organised production of these promising varieties. In Western countries, the potato sector consists of a chain of breeders, seed producers, ware potato producers, processors, traders and consumers. This chain is has a strong support network of research, extension, certification, registration and marketing institutes and input suppliers, all needed to grow a high quality product. HZPC and SolaGrow want to invest in Ethiopia in order to set up a seed potato production system and demonstration facilities, in collaboration with research and extension institutes. Their aim is to improve ware potato production, resulting in a significant rise in sales of seed potatoes. HZPC Holland B.V. (HZPC) is one of the leading seed potato companies in the Netherlands, producing and trading about 40 percent of all Dutch seed potatoes. It is well known for its potato varieties Spunta, Desirée and Bintje. SolaGrow PLC is a new agribusiness company in Ethiopia, recently established by a group of Dutch investors in collaboration with HZPC, their aim being to strengthen the Ethiopian agricultural sector by producing seed potatoes. The project has the following objectives: 1. To set up a seed potato growing and trading company in Debre Zeyit, in the centre of Ethiopia. Here, a potato centre will be

established with an office, a testing laboratory, a cool store and a machine/processing building, surrounded by demonstration and small-scale production fields.

2. To train local staff in potato and laboratory practices. Local extension specialists will be trained at the centres to support farmers in achieving high-yielding potato crops.

3. To establish demonstration centres at five representative locations in the main Ethiopian potato regions in order to demonstrate the cultivation of new varieties using high-grade seed is demonstrated. In collaboration with local research and extension specialists, farmers will be trained in proper agricultural practices and storage of ware potatoes.

4. To contract and train innovative farmers to produce certified seed whose quality is guaranteed by laboratory testing. The seed will be mainly sold to local farmers.

Results • Collaboration agreement signed between HZPC Holland B.V. and SolaGrow PLC; • Central demonstration farm established; • Staff trained and demonstration fields set up; • local demonstration centres established; • Production of 150 tonne of seed potatoes.

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Ethiopia

PSOM06/ET/25 Glass technology centre

Applicant B.H. Nieuwe Weme Beheer B.V., Oldenzaal Recipient Ethiopian Reflection PLC, Addis Ababa Partner Bedair Holding B.V., Reutum Start project 01 January 2007 End project 31 December 2008 Total budget EUR 397,983

Summary: Ethiopian Reflection was formed in 1998, the aim being to introduce a new generation of high quality souvenirs and gift items reflecting Ethiopian culture and design. The first line of products was engraved glassware, both ordinary and crystal glass. The engraving is done by hand and the images are designed by the engravers. In order to diversify the line of glass products, a Glass Technology Centre will be set up to start glass manufacturing in Addis Ababa. Besides Ethiopian Reflection, the Dutch companies B.H. Nieuwe Weme Beheer B.V. and Bedair B.V. will participate in the joint venture. B.H. Nieuwe Weme Beheer B.V. is the parent company of HOAF Infrared Technology. HOAF Infrared Technology products include ovens and kilns used worldwide in the glass industry. Bedair Holding B.V. will provide management and marketing advice to the project. The project partners have cooperated since 2003. Except for the manufacture of glass bottles for beer and soft drinks, the glass industry is undeveloped in Ethiopia. The purpose of the Centre will be to develop the artistic glass industry in Ethiopia and provide training for students in glass technology. The project will boost glass production in Ethiopia and contribute to job creation and self-employment as well as provide an income for glass technology graduates. The Glass Technology Centre will produce all kind of glass jewellery and glass decorations, including beads, vases, lampshades, glass containers, clocks, etc. After five years, the Centre will begin accepting contracting manufacturing assignments from foreign designers for the export market. The Centre will generate direct employment for seventeen additional people during the project and another sixteen in the two years after the project. In the follow-up phase, a glass recycling system will be set up. Results • Consortium set up; • Glass technology building constructed; • Glass technology equipment installed; • Glass technicians trained; • Production phase.

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Ethiopia

PSOM06/ET/26 Cosmar East Africa

Applicant De Streep Finance B.V., Amstelveen Recipient Berchaco Plc., Addis Ababa Partner PT Cosmar, Jakarta Start project 15 December 2006 End project 31 December 2008 Total budget EUR 839,980

Summary: Despite its size, Ethiopia still has an underdeveloped cosmetics industry. Basic cosmetic and toiletry products such as shampoos, tooth paste and decorative cosmetics are not produced locally and are often supplied through illegal imports. Some of the smuggled products are product rejects and have not been tested as to their safety for human use. Berchaco, an Ethiopian cosmetics manufacturer of the East African Group, is seeing a growing demand for new and existing products. To cope with this market demand, Berchaco will establish a joint venture with the Dutch company De Streep Finance B.V. and the Indonesian company PT Cosmar. Cosmar is a private label and contract manufacturer of quality cosmetics in Indonesia, under the umbrella of De Streep Finance B.V. in the Netherlands. The mission of the joint venture company, Cosmar East Africa, is to introduce quality decorative and skin care cosmetics to the Ethiopian market at affordable prices, either through its own brands or by manufacturing for third parties, including international brands. It will do so by establishing an internationally GMP and ISO certified manufacturing plant in Addis Ababa. The new company will employ 50 people during the PSOM phase, increasing to 75 skilled workers two years later. In addition, the project will have a positive impact in Ethiopia in terms of import substitution and availability of health-related products as toothpaste, body creams and shampoos of certified quality for the low-income part of the population. Results • Joint venture established between De Streep Finance B.V. and Berchaco Plc. (30/70); • Cosmetics plant constructed; • Equipment installed; • Training phase; • Production phase and ISO/GMP certification.

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Ghana

PSOM06/GH/01 Pilot production of fair trade organic pineapples for export

Applicant AgroFair Europe B.V., Barendrecht Recipient Volta river Estates (VREL), Accra Start project 01 August 2006 End project 30 September 2008 Total budget EUR 1,150,214

Summary: The core business of the applicant AgroFair Europe B.V. is the import, export and distribution of fair trade and organic fruits, marketed under the brands Oké and Eko-Oké. Fifty percent of the shares of AgroFair are held by the suppliers of the fruits in a.o. Costa Rica, Ecuador and Ghana, organised in the Cooperative Producers AgroFair. The other 50 percent is held by the foundation Solidaridad and trading companies in the UK, Luxemburg and Italy. AgroFair plans to invest in the pilot production of fair trade organic pineapples in Ghana for export to mainstream supermarkets in Europe. The recipient of the project is Volta River Estates Limited (VREL), a fair trade banana grower situated in Ghana. The company exports 85 percent of its fruits to Europe through AgroFair. Recently VREL started a nursery for organic pineapple plants. The other project partner is Farmapine Ghana Limited (FGL). This company takes care of technical, marketing and financial issues for the members of a conglomerate of five pineapple cooperatives and thus delivers services to 300 farmers. In the last few years the Western consumers have made a shift to healthier and more natural food and they are willing to pay a higher price as a guarantee that products are produced in a fair and sustainable way. AgroFair sees a high growth potential for the supply of fair trade organic pineapples to the European retail market. The company wishes to secure a year round supply of fair trade organic pineapples by starting fair trade organic production in Ghana, complementary to the actual import from Costa Rica. Therefore AgroFair and VREL enter into a joint venture, while they will also assist Farmapine in starting fair trade organic production of pineapples. Thus enabling small producers to attain the European market with products with high added value. The production will take place at 30 hectare at the organic certified plantation of VREL in the Volta region and at 20 hectare at the Farmapine location in Nsawam in the Akwapim South district in the eastern region. The project will invest in farming equipment and in facilities such as pre-cooling storage and an office. Furthermore investments will be done in irrigation equipment and plant materials. The project will give direct work to 85 employees (55 at joint venture and 30 smallholders at Farmapine) according to fair trade conditions, which include a fair income and good working conditions. The project introduces new knowledge and techniques on preparing land for organic production, compost techniques, cultivation and disease control of organic MD2 pineapples (MD2 is a very sweet variety for which there is a huge demand in Europe). Furthermore training will be provided on logistic handling and export, EurepGAP and HACCP. Results • Business foundation; • Procurement of hardware for the joint venture, planting of 30 hectare and training; • Procurement of hardware for Farmapine, planting of 20 hectare and training; • Harvesting, sales and certification for the joint venture; • Harvesting, sales and certification for Farmapine, expansion of outgrowers scheme at Farmapine and follow up business

planning.

18

Ghana

PSOM06/GH/23 Pilot for modern service facility for trucks and heavy duty vehicles

Applicant Van Vliet Trucks Holland B.V., Nieuwerkerk aan den IJssel Recipient B&P Impex Ltd, Accra Start project 15 December 2006 End project 31 October 2008 Total budget EUR 1,487,050

Summary: Ghana has been an important export market for the applicant, Van Vliet Trucks Holland B.V. (Van Vliet), for fifteen years. The applicant sells trucks and heavy duty equipment in Ghana. The recipient, B&P Impex Ltd (B&P), is currently acting as a sales agent on behalf of Van Vliet in Ghana and neighbouring countries for clients in construction, mining and agriculture. Increasing competition in the market is forcing the partners to provide turnkey solutions for maintenance and repair and delivery of spare parts. Van Vliet and B&P therefore wish to establish a modern workshop in Ghana and mobile repair facilities to provide technical support for trucks and heavy duty equipment. Ghana will be the hub of operations for the region. The demand for heavy duty vehicles and equipment has risen steadily in the past few years, mainly due to growth in the building and mining sectors. Refurbished equipment dominates the market, but clients are increasingly demanding service contracts and guarantees. Local competition consists of the technical support centres of international brands, which only service direct customers, and local car repair and workshop facilities, which operate in the open air with practically no tools. The project partners will establish a modern workshop in Tema, with a training centre, for all types of brands and equipment. Besides the workshop, two mobile repair facilities mounted on a DAF truck, will serve clients in the building and mining industry in remote areas. A van and a pick-up truck will be used for rapid response. The workshop will provide the following services: preventive maintenance, scheduled routine maintenance and repair of malfunctioning equipment. The project is introducing new maintenance and repair skills and technology. The company’s personnel (twenty mechanics) and clients (60 mechanics on a contract base) will be trained to use modern equipment and tools. Two technicians from Van Vliet will take turns training the mechanics and monitoring the work in the workshop. Results • Legal and administrative structure established; • Equipment and hardware shipped and installed; • Recruitment, technical assistance and training; • New workshop facility constructed and operational; • Workshops and mobile repair facilities in production and business follow-up.

19

Kenya

PSOM06/KE/21 Local to local - linking Kenyan flower growers to new marketing opportunities

Applicant Flora Plus B.V., Aalsmeer Recipient Sender International Ltd, Nairobi Partner JMA B.V., Haarlem Start project 01 January 2007 End project 31 January 2008 Total budget EUR 1,259,864

Summary: Applicant Flora Plus B.V. and Sender International Ltd (Sender) in Kenya aim to establish a tracking and tracing (T&T) system which will be accessible to all Kenyan flower growers. A marketing company will also be established to advise growers on certification and other market requirements. This company will trade only certified traceable flowers produced by small flower growers (6-10 hectare). These small flower growers will be recruited with the help of the Kenyan Flower Council (KFC). The new joint venture will provide services to smaller growers to give them access to markets and allow them to benefit from higher prices and cost savings associated with the direct delivery of certified flowers to traders and retailers. The applicant is a ten-year-old company which mainly trades in roses. It has been buying flowers in Kenya for a long time and has extensive knowledge of the market. It wants to set up this project to meet the growing demand for certified flowers. Currently, it is usually the large-scale producers that can meet criteria for certification, but the criteria are difficult for trading companies accepting delivery from mixed sources and smaller growers to meet. The recipient, Sender, was founded by Mr Wachira in 2005. Mr Wachira has seven years experience in the flower industry. The company buys flowers from Kenyan growers that are then combined for export to Flora Plus. The new joint venture (FlowerSenders Ltd) aims to establish a link between producers in Kenya and buyers in Europe, thereby increasing the added value at the source and raising export prices. Growers will be assisted in meeting certification requirements so that they can improve their access to the market for certified flowers. The work in the pack house will increase the added value; here, flowers will be collected from various growers, bouquets will be assembled and stored in a cool storage and then transported to Europe. A tracking and tracing system will provide buyers with information about the product (production conditions, origin, certifications). Problems can therefore be traced back and addressed, with appropriate advice being given. The project results will include the establishment of a joint venture, the establishment of a conditioned pack house, a tracking and tracing system, and a support centre which will cooperate with advisors of the Kenyan Flower Council and from where member growers receive support implementing the T&T system. Finally, the partners will promote certified traceable flowers to suppliers and customers. Investments include a cooled storage facility with flower processing, and cooled transport facilities and equipment to prepare pallets for air freight. The building will be leased (ten years). A tailor-made ICT infrastructure will also be designed and installed. Results • Joint venture established; • Flower centre operational (equipment installed and training provided); • Tracking and tracing system operational; • Service centre operational.

20

Mali

PSOM06/ML/21 Pilot for processing biodiesel from Jatropha nuts in the Koulikoro region, Mali

Applicant Holding KIT B.V., Amsterdam Recipient Etablissement Bakary Touré Import Export (EBTIE), Badalabougou, Bamako Partner Arnie Totaal Techniek V.O.F., Aalsmeer, Koninklijk Instituut voor de Tropen, Amsterdam Start project 01 January 2007 End project 31 December 2009 Total budget EUR 814,302

Summary: The goal of the project partners is to set up the first commercially viable biodiesel plant for the production of biodiesel in Mali. The project partners will establish a joint venture called Mali Biodiesel S.A. Direct participants in this joint venture are Holding KIT B.V. (applicant), EBTIE (recipient) and ATT and a farmers’ organisation (FO) as project partners. Mali Biodiesel S.A. will be the first Mali based biodiesel enterprise. Holding KIT B.V. will supply technical know-how on the production of Jatropha, training of the farmers’ organisation, support with upgrading Jatropha fences and management of the project. ATT will supply technical and operational know-how concerning the biodiesel installation. EBTIE will buy the product and the farmers’ organisation will produce Jatropha nuts and invest in upgrading the Jatropha fences and planting new fences as well as plantations. The increase in global energy prices and the EU obligation to mix biodiesel with fossil diesel has made biodiesel production a viable option. The project focuses on Jatropha curcas, an increasingly well-known variety whose nuts are easily converted into biodiesel. The proposed biodiesel unit will produce biodiesel at a cost price of EUR 0.40 per litre and selling price of EUR 0.70 per litre, which is well below the current pump price of EUR 0.84 per litre in Mali. The biodiesel production unit will be located near the town of Koulikoro, which is approximately 60 kilometres north of Bamako. The area has an annual rainfall between 700-900 mm a year, which is perfect for growing Jatropha plants. The town of Koulikoro is about 30 kilometres from the major diesel storage tanks of various oil companies, which will reduce the cost of transporting biodiesel to them once it has been sold. The goal of the project is to produce 10,000 litres of biodiesel a week by the end of the pilot phase of the project. Results • Joint venture established between Holding KIT B.V., EBTIE, ATT and a farmers’ organisation; • Local nut collection process functional; • Processing unit functional; • Training of farmers; • Commercial production of biodiesel.

21

Mali

PSOM06/ML/22 Sun dried tomatoes from Mali, a taste of sunshine!

Applicant Hellenraad B.V., The Hague Recipient Promotelf, Bamako Partner Rossen Seeds B.V., Hem, Ferme Semencière Aïnoma, Quartier Koira Kano, Niamey Start project 01 January 2007 End project 31 December 2008 Total budget EUR 839,867

Summary: The project applicant is Hellenraad B.V., a company involved in developing agricultural projects, and the recipient is Promotelf, a company that exploits 22 hectare of arable land near the capital city of Bamako. Because the climate of Mali is favourable for the cultivation of tomatoes, labour is inexpensive and there is a huge demand for dried tomatoes on the world market, the project partners have decided to create a commercially viable and sustainable production location for dried tomatoes in this country. The dried tomatoes will be exported to Europe and the U.S. The project will be located in the Bamako region in Mali, where Dr Touré, owner of Promotelf, owns 22 hectare of land along the Niger river. Dr Touré grows fruit trees on 13 hectare and 7.5 hectare of the remaining land will be used to grow irrigated tomatoes. The aim of the project is to develop the first commercially viable tomato farm for the production of dried tomatoes in the country. The applicant and recipient were introduced by Mr Mahaman of the "Aïnoma Seed Farm" in Niger. Mr Mahaman has worked on an agricultural project with Hellenraad B.V. in Niger and they now want to extend their activities to Mali. Mr Mahaman is a project partner and will also take part in the joint venture. Rossen Seeds B.V. of the Netherlands will also be a project partner. A joint venture will be created between Hellenraad B.V., Promotelf and Mr Mahaman. Results • Joint venture established; • Pilot location established; • Recruitment and training of personnel; • Production and marketing.

22

Mali

PSOM06/ML/23 Solar plant in the cotton zone of Koutiala, Mali. Expansion of the commercial use of electricity

Applicant N.V. NUON, Amsterdam Recipient SSD EN Yeleen Kura, Koutiala Partner FRES Start project 01 January 2007 End project 31 December 2008 Total budget EUR 839,988

Summary: N.V. Nuon is an energy company operating in the energy market of North-West Europe and the applicant of the project. Nuon has been active in the domain of rural electrification in developing countries since 1998. La Société de Services Décentralisés EDF-Nuon S.A. "Yeelen Kura" (New Light) will be the project recipient. The Foundation Rural Energy Services (FRES), founded in 2004 by Nuon to manage its joint ventures in Mali and South Africa, will act as the managing partner of the project together with Yeelen Kura. A joint venture will be established between FRES and Yeelen Kura. Most of the villages in the cotton region of Mali do not have access to electricity and normally use batteries, candles and lamp oil as sources of energy and lighting. Old car batteries are charged where electricity is available and then transported to the villages to be used for televisions and radios. Besides their not being sustainable, these energy sources are harmful to health and the environment. To overcome these problems, Yeelen Kura has been supplying basic electricity to households in the form of Solar Home Systems (SHS) with a maximum output of 120 watt. To expand the commercial use of electricity and to stimulate economic growth, Yeelen Kura wants to set an example by installing a mini-grid solar power plant with a capacity of 36 kilowatt. The advantage of such a solar plant lies in its capacity, which is higher than SHS and suitable for more electrical appliances, such as welding equipment and freezers, thus allowing small businesses to develop. The same result can be achieved with a diesel generator, but even leaving aside the positive environmental effects, solar energy is a more sustainable source of energy. The solar power plant will be installed in the village of Kimparana, about 80 kilometres from the city of Koutiala, some 500 kilometres from the capital city of Bamako. 600 households and small industries will be provided with electricity. Results • Joint venture established between FRES and Yeelen Kura; • Hardware procurement and installation; • Recruitment and training of personnel; • Business development.

23

Mozambique

PSOM06/MZ/01 An export quality control poultry abattoir with out grower scheme for northern Mozambique

Applicant Dusk & Dawn (PTY) ltd, Private Limited, Francistown Recipient New Horizons Mozambique Lda, Limited, Nampula Start project 01 August 2006 End project 31 July 2008 Total budget EUR 825,000

Summary: In this project applicant Dusk & Dawn Ltd (D&D) from Botswana will cooperate with recipient New Horizons Mozambique Lda (NHM) from Nampula. The applicant is an investing company established in 1999. They have been investing in several agribusiness start-ups in Southern Africa, all relating to poultry (hatchery and production) and ostrich production services. The recipient was established in April 2004. They are a producer of one-day old chicks and animal feed, sold to local small farmers. Despite the fact that the Northern Mozambique climate is very suitable for the rearing of chickens and the growing of feed crops, very limited commercial poultry production occurs. Most agricultural activity in the region takes place in the family sector (smallholder), including the rearing of poultry where families use backyard scavenging production systems. The limited production capacities are not able to meet a growing commercial demand for poultry. Also, there is no contract abattoir available to accommodate increased production volumes or to develop new markets. The existing consumer market of 38 million birds per year for 37 percent is served by imports. In cooperation with the Mozambican government(s) an industry group comprising Mozambique’s main commercial poultry producers recently formed PIDG (Poultry Industry Development Group) to develop the Mozambican poultry industry by increasing production quality and efficiency, reducing costs and to reduce foreign dumping on the Mozambican market. The government has already taken steps to protect the industry from harmful import trade practices. In line with these developments, under PSOM the partners will establish a contract abattoir in Nampula. To secure its inputs also a small-scale contract out grower scheme will be set up under this project. The 200 small-scale poultry farmers will be managed by a dedicated Out grower Division that will be responsible for mentorship relationships, contract administration and coordination between growers, input suppliers, and abattoir demand. At the end of the PSOM project these outgrowers will supply 75 percent of the abattoir’s needs. The wholesale frozen trade will target existing local traders and trading networks. The focus will be on import substitution, expansion of available product range (different packaging options to extend customer choice including portions, pieces, custom cuts, whole birds), and reducing inventory costs for traders through managed delivery schedules and logistics to maintain cold chain to the buyer. The frozen products will be delivered from the abattoir freezer to the buyer via refrigerated transport according to agreed delivery schedules. Results • Formalisation of cooperation; • Construction, commissioning and operation of export quality poultry contract abattoir; • Set up contract outgrowers division; • Quality poultry product for local and export markets.

24

Mozambique

PSOM06/MZ/21 Mozambique papaya pioneers

Applicant Inc Investments (Pty) Ltd, Paarl Recipient SAPEL Limitada Partner W. Schmidt Start project 15 December 2006 End project 31 October 2008 Total budget EUR 825,000

Summary: The applicant, Inc Investment (Pty) Ltd of South Africa, the recipient, SAPEL (Sociedade Agro-Pecuria dos Libombos Limitada) and project partner Willem Schmidt (South Africa) aim to establish an 80 hectare papaya plantation in southern Mozambique. The project will combine primary production and added value. The applicant invests in fruit production, packaging and marketing. It is part of Colors Fruit Holding Pty. Colors ZA (Pty Ltd) is a subsidiary of the applicant and produces and markets fruit in South Africa. It operates various farms and pack houses in South Africa and has been involved in the production, packaging and marketing of papaya for more than 50 years. The recipient SAPEL started as an exporter of bananas and citrus. Currently it produces macadamia on a 110 hectare plantation and bananas on 200 ha. Part of the daily produce is sold in Maputo through informal salesmen, and the remainder is exported to South Africa. Willem Schmidt has a business relationship with Colors ZA, but in this project he will act as a private investor. Mr Schmidt is a farmer and producer of various sub-tropical crops. The three project partners will set up a joint venture. Low temperatures limit the production of tropical/subtropical crops in South Africa during winter. The demand for good quality papayas currently outstrips the supply, with significant seasonal shortages. The moderate climate of Mozambique will result in higher yields, fewer seasonal fluctuations and improved fruit quality. The applicant expects to offer high quality papaya to the South African market in periods in which South African producers cannot meet the demand. The project is located in Southern Mozambique in an area which is underdeveloped and faces high unemployment rates, illiteracy and high levels of HIV infection. The lack of an infrastructure, trained employees, equipment and after-sales service as well as the long distance to the market make this a risky operation for South African investors. On the other hand, the abundance of suitable land, the availability of water, the favourable climate and tax structure for agricultural enterprises justify the investment. The results of the project include preparation of land, infrastructure (land, electricity, water) and irrigation system; refrigeration, post-harvest treatment, grading and packaging facilities; and recruitment and training of staff in tree planting and treatment, as well as in harvesting and post-harvest treatment. This pilot project marks the start of an envisaged 300 hectare subtropical fruit farm, including local value adding. In addition to papayas, other fruits will be grown. Litchis, to be planted on 50 hectare, are already being propagated, while the partners are investigating the viability of growing bananas, pineapples, limes and nectarines. Results • Project preparation and land acquisition; • Infrastructure (land, electricity, water); • Manager housing and irrigation system established; • Staff trained and employed in tree planting and treatment; • Papayas farmed and harvested.

25

Mozambique

PSOM06/MZ/22 Commercial castor oil plant

Applicant White Bird International B.V., Bleskensgraaf Recipient Miranda Industrial Lda, Flat Prédio, Nampula Partner Miranda Agricola Lda, Flat Prédio Jfs, Nampula Start project 01 December 2006 End project 30 June 2008 Total budget EUR 839,567

Summary: White Bird International B.V. of the Netherlands (applicant), Miranda Industrial Lda (recipient) and Miranda Agricola Lda (partner) will establish a commercial castor oil plant in Meconta, Nampula, Mozambique. White Bird International is the investment vehicle of Mr Klijn, formerly involved in nut processing and sales. Sister company Global Trading developed a trade relationship with Miranda Caju of Nampula, Mozambique in the field of cashew production. The present trade volume exceeds 100 containers of cashew nuts per year. The managing director of Miranda Caju is Mr Miranda, who also manages the recipient and the project partner. So far, the recipient has been conducting research in India and experimentally growing various castor varieties in Mozambique to select the most appropriate variety for local circumstances. Apart from that, none of the partners has experience in the growing or processing castor. For this reason, an external expert from India, who is currently residing in Mozambique, will be hired for a period of one year. After that the partners will take over the production of oil. The partners, however, complement one another and have abundant experience and expertise in their respective fields of operation. Applicant White Bird will market the produce, recipient Miranda Industrial will process the beans, and partner Miranda Agricola will be responsible for growing castor beans. Castor oil was produced in Mozambique up to some 30 years ago. The international decline in prices brought production to a halt. Presently, however, there is a large demand for castor oil, but only a meagre supply. Prices are therefore high, making it possible to restart castor oil production in Mozambique. Castor oil is one of the most expensive vegetable oils on the international market. Approximately eighteen products can be made from castor oil, in such fields as agriculture, cosmetics, electronics and telecommunications to food, lubricants, perfumes, pharmaceuticals, paints, adhesives and plastic polymer rubber. Most of the value is added in the developed world. Farmers in Meconta, Nampula, mainly grow cotton. This project will encourage them to move from cotton to castor production. Castor is less labour intensive, requires far fewer chemicals and gives farmers a better income. On top of that, castor is ideal for crop rotation due to its nutrient characteristics. The partners will encourage farmers to rotate castor with maize. The farmer stock beans produced at the partner’s nursery will then be distributed amongst the farmers. Farmers will furthermore be trained in castor production by the project partners. All the farmers will work with the partners on a contract basis, deducting the cost of seed from their yield. After harvesting by the project partners, they will process the beans into refined castor oil. The oil content of the beans ranges from 44 to 48 percent. Castor cake (the residue of the pressing process) will be used as fertilizer. The final product will mainly be marketed in the Netherlands and South Africa. Contacts with traders have already been established. Production of castor beans will increase from 2,300 megaton in the first year to 10,000 megaton from year three onwards. The results of the project do not include the establishment of a joint venture. As the partners have been cooperating for several years, and the applicant has a 30 percent share in the recipient company, the partners decided to work under the current 30/70 share division. The applicant will therefore contribute 30 percent of the project costs and follow-up investments. The recipient will bear 70 percent of the costs. The project results include setting up a nursery to safeguard the production of farmer stock beans, setting up an outgrowers scheme, establishing a production plant and trial production and, finally, exporting the refined castor oil. After the pilot phase the project partners intend to expand the scale of production by purchasing additional processing equipment. Results • Preparation phase; • Preparation of project site; • Production phase.

26

Mozambique

PSOM06/MZ/24 Jangamo cotton gin

Applicant Tai Yuen Textile Co. (SA) (PTY) Ltd, Mooi River Kzn Recipient Algodão de Moçambique Lda, Inhambane Province Start project 15 December 2006 End project 31 December 2008 Total budget EUR 824,997

Summary: The applicant Tai Yuen Textile Co. (Tai Yuen) from South Africa will establish a joint venture with Algodão de Moçambique Lda (hereafter called Algodão) for the production of lint (cotton) for the South African market. Tai Yuen’s main economic activity consists of spinning, knitting, dyeing and manufacturing clothing from raw cotton. It is part of the Yulon Group, a very large Asian corporate group with estimated revenue in 2007 of USD eleven billion. Tai Yuen took over a bankrupt textile business in Mooi River in 2001. They restructured and substantially expanded the factory and successfully turned it around, reverting years of losses and decline in production. They currently employ some 500 people. The recipient Algodão is the Cotton Institute of Mozambique. The shareholders are the applicant Tai Yuen (20 percent), GADI (34.7 percent), David Law (34.7 percent), Find Finance (7.6 percent) and DCI Marketing (3 percent). The most important shareholder is GADI. This is the company responsible for running Algodão. Its two managers have years of experience in cotton production. Mr David Law is a non-acting shareholder responsible for running a commercial cotton farm owned by another company. Find Finance is responsible for the financial management of Algodão, while DCI Marketing is partially responsible for marketing the product. Through direct investment and technical assistance, the partners aim to rehabilitee an existing cotton gin in Jangamo, Inhambane, which was partially destroyed during the civil war. Although the buildings and equipment survived, no cotton is currently being produced there. The joint venture will also organize and develop an outgrower production scheme to secure production of the raw material (cotton) for the gin. This will include a new production approach in which farmers will have the opportunity to use the equipment and machinery provided by the joint venture for land preparation, etc. This is expected to generate higher yields and better quality compared with manual production techniques. Crop input and land preparation costs will be supplied by the joint venture to the farmers on credit and will be deducted from their cotton yields. Instead of growing cotton, the farmers concerned currently practise subsistence agriculture, either with maize, vegetables and/or cassava. Before the old Jangamo gin closed down due to the lack of governmental funding, a large portion of the farmers within the concession practised subsistence cotton production. Cotton production as such is not new to Mozambique. Moreover, at the moment eleven gins produce cotton. Before the civil war, 27 cotton gins were operational. The Mozambican government grants exclusive concession areas to cotton processing companies and sets a minimum price which they must pay to producers. There is no competition between the various gins for the cotton produced. The majority of the lint produced by the joint venture will be supplied to the South African applicant at market prices. The results of the project include the rehabilitation of the old gin, the recruitment and training of production workers, and the contracting of 400 farmers under a new outgrowing scheme. After the pilot phase the gin expects to expand its capacity, including by increasing the number of farmers involved. Results • Joint venture set up and necessary licenses/permits obtained; • Rehabilitation of structures and equipment; • Technical assistance and training for cotton producers; • Expansion of production scheme; • Business development.

27

Rwanda

PSOM06/RW/21 Establishment of a professional private water supply operator in Rwanda

Applicant PWN Waterleidingbedrijf Noord-Holland N.V. Recipient Aquarwanda S.A.R.L. Start project 01 January 2007 End project 31 July 2008 Total budget EUR 498,300

Summary: PWN Water Supply Company North-Holland N.V. (PWN) is the applicant of the project while Aquarwanda S.A.R.L. is the recipient. Partners in the project will be Aquanet from the Netherlands and the District Government of Rubavu in Rwanda. The objective of the project is to improve the operation and management of water supply projects in Rwanda through the introduction of a Public Private Partnership and the establishment of a professional private water supply operator: Aquavirunga. The project will rehabilitate and operate the Yungwe-Bikore water supply scheme in the Northern volcanic region of Rwanda. Construction of this water supply scheme started in 1989 but works were never finalised because war broke out in 1994. The part of the scheme that was finalised was taken into operation but has never been managed properly what resulted in deterioration of the system. The scheme will provide clean and safe drinking to 130,000 people. Water will be sold by 130 water vendors. A joint venture, Aquavirunga (virunga = volcano) between PWN and Aquarwanda will be established. The district of Rubavo will be partner in the project because they own all drinking water infrastructures. Results • Establishment of the joint venture between PWN and Aquarwanda (51 percent - 49 percent); • Procurement of equipment, installation of office; • Design and tendering rehabilitation works; • Execution of rehabilitation works; • Operational phase.

28

South Africa

PSOM06/SA/01 Professionalizing the South African compost industry

Applicant Eosta B.V., Waddinxveen Recipient SRCC (Sundays River Citrus Company (proprietary) Limited), Addo Start project 01 September 2006 End project 01 September 2008 Total budget EUR 800,000

Summary: In this project applicant Eosta B.V. wants to set up a joint venture with an organic citrus growing and packing company in South Africa to produce organic compost. Eosta is involved in the entire chain of cultivation, pre-packing, distribution and marketing of organic fruits and vegetables. Supplies come from organic growers all over the world, while sales are concentrated in Europe, USA and the Far East. The South African recipient SRCC is active in organic citrus production and export. They are suppliers of Eosta. After project approval, Eosta will establish a new company, Soil & More International that will be the Dutch shareholder in the joint venture. Eosta is owned for 100 percent by Rhea Holding. Rhea will also be the majority shareholder in the new company Soil & More. The division of the shares between Soil & More Int. and SRCC will be 51 percent for Soil & More Int. and 49 percent for the South African company. The project partners aim to revitalise the soils used for citrus and other production due to the application of compost prepared by organic material cut along the riverbanks and many other useful (waste-) material. Furthermore, they want to provide year-round employment to employees instead of only six months during the citrus season and they aim to rebalance the ecosystem due to selective cutting of invading alien vegetation and replanting of indigenous vegetation. Although a lot of compost is being produced in South Africa, there is a lack of knowledge of how to do it right. In such arid climates, poor soil fertility is a growing concern for all farmers. In the Eastern Cape a large additional problem is the deteriorating state of the Sundays River. Because an increasing part of the artificial fertilizer is flowing to the rivers these are full of alien vegetation which consumes the water and nutrients that are needed for the orchards. Together with the South African Government The World bank initiated a project called ‘working for water’ to clear the surrounding rivers in the valley. This project would be a complementary initiative since the waste of the World Bank’s project can be used as input material for the compost. Results • Establishment of joint venture; • Establishment of facilities, recruitment and management training; • Training; • Certification and healthcare; • Business development.

29

South Africa

PSOM06/SA/21 Artificial turf system production in South Africa

Applicant Southern Greens B.V., Kampen Recipient Greenfields Sports & Leisure (Pty) Ltd, Willowtown, Pietermaritzburg Start project 15 December 2006 End project 31 December 2008 Total budget EUR 1,435,000

Summary: Since FiFa (Fédération Internationale de Football Association) has accepted artificial turf as a suitable surface for playing football, and the artificial turf industry is growing rapidly worldwide. The current production of artificial turf is mainly in Europe and North America. The project partners aim to create a fully integrated artificial turf production company in South Africa, from the production of raw materials to the installation of finished products. The most important part of an artificial turf product is the yarn, which can now be purchased from Europe, the US and Dubai. During the high season (June to November), these yarn manufacturers are sold out, causing delays in the supply chain. Both partners want to arrange the supply of starting material in the right quantities and qualities, i.e. synthetic yarn based on a specific mixture of LDPE and additives (e.g. colouring, UV-resistance etc.) and they want to train local people so that they can install and maintain the playing fields. The applicant Southern Greens B.V. and the project partner Belgotex Floorcoverings (Pty) Ltd have established a joint venture, Greenfields Sports & Leisure (Pty) Ltd. This joint venture (55 percent Southern Greens and 45 percent Belgotex) will be the recipient for this PSOM project. Southern Greens B.V. is a subsidiary of Greenfields B.V. and Lecon Holding B.V. Southern Greens B.V. was established in 2005 to set up and invest in foreign joint ventures in order to explore the global market for artificial turf systems. The project partner, Belgotex, is a global supplier of carpets and materials to the Far East, Europe, Africa and Australia. It is currently the largest carpet mill in the southern hemisphere. Greenfields Europe manufactures artificial turf products for the African market which are imported by Belgotex. In order to create a Made in South Africa label, Belgotex decided to re-build an existing carpet tufting machine into an artificial turf tufting machine, but the yarn still needs to be imported. The joint venture Greenfields Sports & Leisure wants to focus on providing good surfaces in preparation for the 2010 World Cup, which will be held in South Africa. FiFa is a staunch advocate of artificial turf for football in Africa. This will automatically lead to a higher demand for raw materials and production capacity. There is a lack of good sports fields at all levels of sport in South Africa because they are difficult to maintain and water is not readily available. Artificial turf requires little maintenance, field markings are permanent, and minimal watering is required. According to market studies, the artificial turf market will grow 14 percent annually until 2009. The location of the project will be Willowtown, Pietermaritzburg, South Africa. Results • Project inception; • Artificial turf systems production site operational; • Employment and training; • Pilot production run; • Marketing and sales.

30

Tanzania

PSOM06/TZ/01 Lily production in Arusha, Tanzania

Applicant J.A. & J. Moerman C.V., De Lier Recipient Tanzania Flowers Limited, Arusha Start project 01 July 2006 End project 30 June 2008 Total budget EUR 824,700

Summary: The applicant J.A. & J. Moerman CV. is a family company with 30 years experience with the growing of bulb flowers, especially tulips and lilies. Since 1997 Moerman fully concentrates on the growing and, more recently, also the breeding of oriental lilies. During the last years the demand for high quality lilies during the winter season is rising, especially from the United Kingdom. In the Netherlands it is extremely difficult to produce a long lasting, good quality lily in the winter months. Moreover, taking into account the continuously rising heating costs in the Netherlands, there is an opportunity to produce good quality lilies in the off-season in Africa. For this purpose a joint venture will be set up with the Tanzanian company Tanzania Flowers Limited (TFL). TFL was set up by the Bruins family in 1987 to produce summer flowers and roses on the outskirts of Arusha in Northern Tanzania. A joint venture will be set up between Moerman and TFL on a 50/50 percent basis, to produce high quality oriental lilies through a 2 hectare pilot project. A small-scale test has proven the suitability of the Mount Meru site to produce lilies, however the optimum production process parameters need to be fine-tuned during this pilot. In the two years after completion of the PSOM project, it will grow to 4 hectare to reach a viable economic scale. The number of employees will grow from 25 to at least 50 permanent workers. In addition, 20-40 seasonal workers will benefit from this project. Results • Set up of joint venture (50/50); • Construction of shade net greenhouse finished; • Pre-production phase; • Production of 600,000 flowers; • Completion of project.

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Uganda

PSOM06/UG/01 Establishing an organic and fair-trade cotton processing chain in Uganda

Applicant Bo Weevil B.V., Ermelo Recipient North Bukedi Cotton Company (U) Ltd, Mbala Start project 01 September 2006 End project 31 August 2008 Total budget EUR 824,768

Summary: In Uganda organic production of cotton is constraint by problems which have mainly to do with the LCU, a 40,000 member cotton cooperative union of which 12,000 members are producing in an organic way. The gin owned by the LCU processes organic as well as conventional cotton, leading to a situation where cotton lint these days has abnormal levels of foreign matter in it, while bales are delivered at great underweight. Bad logistics and mismanagement also results in unnecessary high processing costs, while farmers are not kept up to date on farm management techniques and marketing issues. There is serious threat to loose the organic certification because of poor storage, inadequate administrative and operational management, and bad handling of organic cotton. This situation seriously impedes the growth of the entire organic textile chain in Uganda. Moreover, since cotton being one of two main cash crops (with sesame) plays a substantial role within the economies of the cotton farmers, the subsistence of 12,000 organic farmers is at stake. The key to further development of the organic cotton sector in Uganda will lie in a chain approach, taking into account marketing and market linkages between cotton producers and international buyers. To this end, applicant Bo Weevil (producer and fair trader in organic cotton) will enter into a joint venture with recipient North Bukedi Cotton Company (NBCC, ginning and export of conventional cotton) and Phenix Logistics Uganda Ltd (a textile factory fabricating garments from cotton and cotton blends for mainly regional markets). The project partners will invest in setting up a modern cotton gin with a capacity of ten bales/hour, as part of a supply-marketing chain, where certified organic cotton will be ginned, employing 30 persons. Throughout processing and trading, the joint venture will comply with the principles of fair trade. For securing a stable supply of quality materials, the project partners will work with the 12,000 organic cotton farmers. The project will out build and professionalize the internal control system to guarantee traceability, to improve on quality in production and to allow organic group certification. Training of the farmers in improved organic farm management, quality improvement and bulk marketing, will be done via 300 key farmers who will organise workshops with fifteen associate farmers each. Staff and workers of the gin will be trained in environment friendly processing of cotton, adhering to the principles of fair trade. The contracted farmers supplying the cotton will be paid a market-conform price plus a premium for the organic produce. Two years after the project the joint venture will invest in expansion of the existing capacity to fifteen-twenty bales/hour and product diversification (cotton seed, cotton seed oil). Follow-up investments will result in an additional number of 5,000 registered farmers and additional employment for 30 people. Results • Establishment of the business structure; • Construction of cotton gin and organic certification; • Training of staff and farmers and pilot production; • Business development.

32

Uganda

PSOM06/UG/03 Clean fuels for Uganda

Applicant R.V. Siemons Holding B.V. Recipient Clean Fuels Uganda Ltd Start project 01 August 2006 End project 01 August 2008 Total budget EUR 824,740

Summary: Uganda has large quantities of biomass waste and underutilised biomass among which sugar cane bagasse. To improve usage efficiency, bio-oil can be produced by means of pyrolysis of sugar cane bagasse to be used as a substitute for furnace oil. Sugar industries and bio-oil consumers are interested but need a demonstration. This project provides a demonstration at a relevant scale. Applicant is Siemons holding, an investor in sustainable energy solutions. In 2003 Siemons Holding and Mr Magnay established the joint venture Clean Fuels Uganda Limited (CFUL), the recipient of the project. Mr Magnay initiated the project in Uganda, looking at alternative uses for sugar bagasse. Other project partners include University of Twente (technical assistence), Kakira Sugar Works (bagasse supply, contribution to engineering) and various industrial consumers of bio-oil. Both at the supply side (biomass residues), and the demand side (fuel oil for industrial boilers and furnaces), the Ugandan market is huge. CFUL intends to develop this market. Project objectives are threefold:- Establishment of a bio-oil manufacturing plant in Uganda using local biomass- Establishment of bio-oil as an alternative to fossil Heavy Fuel Oil (HFO) with end-users- Confirmation of the possibility to replicate the bio-oil plant at other sites in Uganda, in terms of biomass resource diversification, plant scale-up and bio-oil end-users. This project will invest in the design and construction of a 2 megawatt pyrolysis unit, suitable for bagasse and several other relevant biomass types and the adaptation of boilers/furnaces originally fuelled with HFO to burn bio-oil made by CFUL. Twenty-four persons will be employed and trained on the operation of the new technology. Follow-up investments will be twofold. The first is scaling up the capacity by building a second plant of 10 megawatt. Second the plant will be extended with captive power generation as the CFUL plant will have excess energy that can be converted into electricity. Results • Business foundation; • Pre-design of pyrolyse plant; • Construction of plant, procurement of hardware; • Demonstration of bio-oil manufacture and utilisation and training of personnel; • Pilot production, promotion campaign finalised, and business plan prepared.

33

Uganda

PSOM06/UG/23 SIPI Falls Bugisa: enhancing smallholder arabica quality through central wet processing

Applicant Simon Levelt B.V., Haarlem Recipient Kawacom Ltd, Kampala Partner Advance Consulting B.V., Ede Start project 15 December 2006 End project 31 December 2008 Total budget EUR 696,988

Summary: Uganda is renowned for its coffee production and particularly for the special cupping characteristics of its Robusta beans, which obtain a good price on the international market. The quality of Ugandan Arabica is not as well known, although it is possible to produce excellent Arabica in Uganda. The problem is the wet processing of Arabica, currently carried out by small farmers themselves and resulting in a very inconsistent product. For Uganda to maintain a strong position in the coffee market, it must improve the quality and consistency of the Arabica crop so that Ugandan coffee can command better than average prices. To this end, applicant Simon Levelt (roaster and seller of coffee) and recipient Kawacom (processor and trader of coffee) will together establish a central processing plant in the Kapchorwa region with a capacity of processing up to 60 tonne of red cherry and 10 tonne of beans per day. A central pulpery will be constructed with pulpers, fermentation tanks and covered drying racks. Trucks and pickups will be procured to collect the ripe cherries. The project will employ and train 43 people and involve 6,000 farmers. All farmers will be trained in good agricultural practices, harvesting and post-harvest handling and 2,000 farmers will ultimately be certified as organic producers (in addition to the 4,000 who already are). The farmers will be issued with kits, including pruning equipment and tarpaulins, as well as the training materials that they need to convert to fully organic production. Several small tree nurseries (non-coffee) will be established to increase the future supply of firewood and to assist in preventing erosion. Instead of processing their own coffee, farmers will be encouraged to sell their wet cherry to Kawacom, who will do the initial processing. Farmers will see an increase of over 60 percent in real earnings from coffee. Follow-up investments after the pilot project ends will be double those of the project itself, as it will be replicated on a larger scale in other growing areas, in addition to being extended in Kapchorwa. Follow-up investments will involve at least 6,500 smallholders and create additional employment for 90 people. Results • MoU between applicant and recipient, compliance with preconditions; • Construction of wet processing facilities and buildings; • Recruitment and training of staff; • Selection and training of farmers; • Pilot production and business development.

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35

Asia

36

Afghanistan

PSOM06/AF/01 Distribution centre Kabul, Afghanistan

Applicant Tradepoint Europe B.V., Hellevoetsluis Recipient Tac Taz International Ltd, Shar-E-Nou - Kabul Start project 01 August 2006 End project 31 March 2008 Total budget EUR 824,418

Summary: Tradepoint Europe B.V and Tac Taz International will invest in a state-of-the-art distribution centre and warehouse in Kabul, Afghanistan. The distribution centre will be established by renovating an old factory on a location just outside Kabul, 5 kilometres from the airport and next to the highway. As Afghanistan is rebuilding its economy, commercial transport and logistics is a growth sector. The centre will serve the domestic and international distribution market, providing handling and storage of goods with emphasis on the middle and high-end market, such as consumer goods and medicines. A joint venture will be set up on a 50/50 basis. The old factory of Neftegaz, which is made available to the consortium, will be renovated and personnel will be recruited and trained. Results • Set up of joint venture (50/50); • Building and infrastructure finalised; • Recruitment and training of staff; • Business Development.

37

Afghanistan

PSOM06/AF/21 Towards a full-service state-of-the-art truck support centre in the northwestern region of Afghanistan

Applicant Rüttchen Trucks B.V., 's-Hertogenbosch Recipient Rüttchen Trucks Afghanistan, Herat Start project 01 January 2007 End project 31 December 2008 Total budget EUR 568,677

Summary: Rüttchen Trucks B.V. in 's-Hertogenbosch has been trading in used industrial vehicles for many years. The company is a branch of the Rüttchen Group, the biggest official Mercedes Benz dealer in the Netherlands (established 1950, nineteen locations, turnover EUR 250 million). Over the past sixteen years, Rüttchen Trucks has developed an extensive international trade network, including two offices in Chile and Paraguay and sales representatives around the world. Currently, more than 1,000 vehicles are sold every year in more than 40 different countries. One of the foreign sales representatives, Mr K. Sadeghi, operates in Afghanistan. Exports started in 2003. Currently, some fifteen trucks are exported to Afghanistan annually. Due to post-Taliban reconstruction activities and the fast growth of oil exploration and mining in the region, there is a nearly infinite demand for safe and reliable transport equipment. However, local capacity for repair and overhaul is poor, in particular in crucial modern technology such as electronics, pneumatronics and telematics. The latest generations of trucks are unserviceable due to lack of equipment, spares, facilities and skilled personnel. The absence of a support infrastructure for modern (safe, reliable and environmental friendly) trucks frustrates the development of adequate road transport capacity in the region and is resulting in the continued use of outdated trucks (low reliability, availability and capacity, high accident rate, high fuel consumption and emissions levels). To meet the urgent demand for modern trucks, a service facility will be set up in Herat, a crossroads between the Gulf and Central Asia bordering both Iran and Turkmenistan. If the concept proves successful, the pilot facility will be expanded and the concept will be rolled out in other locations in Afghanistan or the region. A joint venture will be set up between Rüttchen (80 percent) and Sadeghi (20 percent). Results • Joint venture established; • Service facility hardware ready for operation; • Organisation and personnel ready for operation; • Completion (including start-up of operation).

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Bangladesh

PSOM06/BD/01 High quality printed PE packaging materials for export from Bangladesh

Applicant Walbeek Foods B.V., Barendrecht Recipient Kamico Bangladesh Ltd, Dhaka Start project 01 August 2006 End project 31 July 2008 Total budget EUR 823,074

Summary: The Dutch applicant Walbeek Foods B.V. (three employees) is supplying supermarkets in the Netherlands and abroad with food and non-food products, including specialty paper and poly-ethylene (PE) bags since 1976. Walbeek Foods is part of a group of companies owned by Ambtman Beheer B.V. The Bangladeshi partner Kamico Bangladesh Ltd (fourteen employees) is since 1994 engaged in a variety of activities, ranging from trade in packaging materials, fruits and vegetables to management of a large project for the disposal of toxic waste. The project partners have been trading for more than five years. Because there is a growing market for higher quality packaging (color with closing systems), the project partners see an opportunity to diversify their activities from trade to production of high quality PE bags in Bangladesh. The project will set up a full-color poly-ethylene (PE) production facility in Dhaka, including factory and offices for the production of PE bags (luxury Low Density PE shopping bags, non-KOMO certified LDPE garbage and draw string bags and full-color printed High Density PE bags). For this the project partners will set up a joint venture named Wellpac. The production line will include a raw material mixer, a PE film blower and printing, cutting, spooling and waste recycling equipment. The project will also include training, office equipment and vehicles. The production capacity will be approx 250 MT per month (3,000 tonne per year) and the project will create about 120 employees. Results • Establishment of joint venture (applicant 50 percent, local company 50 percent); • Production plant constructed; • Production started; • Business plan developed.

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Bangladesh

PSOM06/BD/21 Pilot professional bio fertilizer plant Bangladesh

Applicant WWR Bangladesh Holding B.V., Voorst Recipient WWR Bio Fertilizer Ltd, Dhaka Partner Verbos Business Development B.V., Naaldwijk Start project 01 December 2006 End project 30 November 2008 Total budget EUR 840,000

Summary: WWR Bangladesh is a joint venture between World Wide Recycling B.V. (WWR) and Waste Concern Consultants (WCC). WWR specialises in the field of high quality and sustainable waste treatment. It operates both as an investor and an operator. WCC is a firm of consultants specialising in waste recycling. It is closely linked to its sister organisation Waste Concern, an NGO in the field of waste management. WWR Bio Fertilizer is a wholly-owned subsidiary of WWR Bangladesh. In Dhaka, only 50 percent of the waste is collected on a daily basis. The rest is dumped on illegal dump sides, roadsides, and open drains, with blockages leading to flooding during the rainy season. The stagnant water also means mosquito-borne diseases and environmental degradation. The steady increase in waste is also leading to a shortage of waste disposal sites. The project therefore proposes to set up a recycling centre concept, meaning a landfill site combined with several recycling installations to turn organic waste into compost. The compost will, in turn, be sold, resulting in an increase in the use of organic fertiliser and a decrease in the use of artificial fertiliser, with a positive impact on the environment. Results • Facilities established and employees recruited; • Training and trial production; • Quality control and certification; • Sales and completion.

40

Bangladesh

PSOM06/BD/22 Introducing digital printing technology for garment tagging in Bangladesh

Applicant Kimball Systems B.V., Terborg Recipient Label Technologies Limited, Dhaka Partner Advance Consulting VOF, Ede Start project 01 January 2007 End project 31 December 2008 Total budget EUR 836,847

Summary: Kimball Systems, a subsidiary of Checkpoint Systems, is involved in the manufacturing and distribution of labels and tags. It provides global just-in-time delivery of labels and tags at its manufacturing site. It serves companies that outsource garment manufacturing. It also provides security solutions and tracing technologies for stock management and product flow. Label Technologies Ltd is a Dhaka-based company involved in manufacturing of price tags and labels. The company caters for the garment export industry in Bangladesh. Kimball and Label Technologies have been cooperating for the past eleven years. The companies serve the low and medium quality garment industry, with Kimball supplying pre-printed price tags to Label Technologies while Label Technologies adds the price information in Bangladesh. Although the garment industry is a major industry in Bangladesh, the printing and tagging industry lags behind in technology and mostly serves the medium and low quality segments of the garment industry. The problem is that the traditional printing method using offset machines is not flexible and does not produce high quality complex tags. As a result, lead times are longer and last minute changes (such as price changes) cannot be made. Furthermore, this printing does not allow high quality and complex tags and labels to be printed, even though this is what the high quality segment demands. As a result, a large number of tags have to be imported into Bangladesh each year. This project therefore proposes to introduce advanced printing technology in Bangladesh by setting up a facility to digitally print high quality and complex tags and labels, such as high quality bar coded price tags and labels, brand labels with artwork and printed accessories, and tags that are colour-coded for size (coloured dots to denote different data, such as different sizes), all in order to serve the high quality segments of the market. Staff will mostly be trained in quality control, ISO 9001-2000 and ISO 14000 and how to operate the equipment. Results • Business structure established; • Printing facility constructed; • Local staff trained and certification applied for; • Business development.

41

Bangladesh

PSOM06/BD/24 Bigbag production in Bangladesh

Applicant A. de Winter Beheer B.V., Enschede Recipient Business Trade Syndicate Limited (BTS), Dhaka Start project 01 December 2006 End project 30 November 2008 Total budget EUR 840,000

Summary: A. de Winter Beheer (DWB) is a holding company. One of its subsidiaries, Winza Products, specialises in the production and trading of PP and PE woven packaging products. It has established joint ventures in Thailand and China. Business Trade Syndicate Ltd (BTS) is a trading company focusing on petrochemical products. One of its shareholders is a member of the board of directors of Miracle Industries Ltd (MIL), a company that produces and sells PP/HDPE/LPDE/LLPDE, paper bags and sacks. Winza has been buying PE bags from MIL since 2001. The Bangladeshi packaging industry only covers small sized bags and the production of low quality and low priced bigbags for stones. Currently, there is no modern industrialised high quality bigbag production in Bangladesh to serve the food, pharmaceutical and chemical industry, which require a significantly higher level of technology and quality and stricter safety regulations than the current bigbag production sector can offer. A bigbag or Flexible Intermediate Bulk Container (FIBC) is a solid bag made of Polypropylene (PP) or Polyethylene (PE) that is used to package of all kinds of bulk materials. The average size is one cubic meter and it is usually placed on a pallet. The project therefore proposes to set up a production facility to produce and develop high quality bigbags for the food, chemical and pharmaceutical industry, for export purposes. Training will be provided in quality management (ISO, HACCP), equipment operation and other. Results • Joint venture established; • State-of-the-art bigbag production site operational; • Employees trained; • Pilot production.

42

China

PSOM06/CH/01 Development of an integrated chain for the production and processing of organic apples in Liaoning Province

Applicant Dutch Organic International Trade (DO IT) B.V., Barneveld Recipient HuaEn Organic Foods , Dalian Start project 01 July 2006 End project 31 May 2008 Total budget EUR 1,499,660

Summary: Do-It B.V. (Dutch Organic International Trade) is a wholesaler of non-perishable organic produce, principally in food ingredients. Do-It markets its products in the food industry, supermarkets, health food shops throughout the EU. Do-It has joint ventures in Brazil, India and Mozambique in order to ensure a reliable supply of organic produce meeting its quality and certification requirements. Hua En Organic Foods Co, established in 1993, is a pioneer in the production and export of premium quality certified organic commodities in China. Hua En has established integrated chains of organic farming, processing, packaging and export to the organic food industry markets of especially Japan, the USA and EU. It has organic farms in the northeast, northwest and southwest of China. Ariza B.V. is a fruits and vegetables processor and international trader and specialises in juices, purees, concentrated juices, natural colourings and frozen fruits. Since 1991, an important part of its products is certified organic. It has processing factories in The Netherlands and in Turkey. Do-It and Hua En have been cooperating since 1997. Do-It also has a long cooperation history with Ariza. Ariza and Hua En have had contacts since 2005.China is an important player in the market for apple juice concentrate (ajc), but profitability is low due to low world prices. On the other hand, there is a shortage on the world market of organic apple juice concentrate (oajc), for which the world market pays high premiums. At the moment there is no production in China of organic apple juice concentrate. The consortium therefore proposes to set up a processing plant to produces organic apple juice concentrate; in order to guarantee supply, 500 hectare of apple orchards will be certified as organic and 1,500 hectare of apple orchards will be certified as in conversion during the project; farmers will be contracted and trained in organic best practices. Organic Apple Juice Concentrate exports will target the organic premium markets of Japan, the USA and the EU. During the project a joint venture will be established between Do-It, Ariza and Hua En. The project will be located close to Dalian. This area has a history of using few pesticides and artificial fertilisers, as the drinking water supply to cities such as Beijing, Shenyang and Dalian is located here. Results • Inception phase; • Apple juice concentrate plant established certified for HACCP and organic processing; • Certified organic production of apples; • Business development and project completion.

43

China

PSOM06/CH/02 Pilot Calla product chain development Yunnan

Applicant Kapiteyn B.V., Anna Paulowna Recipient Brighten Kunming Floriculture Co. Ltd, Kunming City Start project 01 June 2006 End project 30 June 2008 Total budget EUR 1,487,566

Summary: Kapiteyn B.V. is a company that specialises in the breeding, cultivation, trading and export of bulbous and tuberous plants, such as Calla, tulips, daffodils and hyacinths. Brighten Kunming, established in 1992, is a flower trader and breeder/supplier of flowering potted plants. Its flowers are sold on the Chinese market; its young plants are sold to growers. The market for cut flowers in China is expanding rapidly. As a result China is becoming one of the major flower producers in the world. However, knowledge on Calla flower bulb development and Calla flower cultivation is very limited. As a result, the Calla flower still plays a negligible role in China's flower and bulb cultivation. Therefore the partners propose to set up a Calla production chain, with the cultivation of Calla bulbs in China, cultivation of Calla flowers by outgrowers and the sale and marketing of Calla flowers in China. Farmers will be trained in Calla flower cultivation; staff will be trained in Calla bulb cultivation, flower and bulb processing and sales and marketing. Results • Inception phase completed; • Bulb and flower centre completed; • Staff hired and trained and technical assistance completed; • Marketing and sales activities developed and pilot production completed.

44

China

PSOM06/CH/03 Henan dairy farm comfort and hygiene

Applicant Agriprom Stalmatten B.V., Nieuwleusen Recipient Henan Huahuaniu Group (Colourful Cow Group), Zhengzou Start project 01 August 2006 End project 01 May 2008 Total budget EUR 1,253,865

Summary: Agriprom B.V. internationally produces and markets products to improve dairy cow comfort and hygiene, such as steel cubicles, cow mattresses, disinfection mats, cowshed equipment and calf hutches. JOZ B.V.’s core business is the production and marketing of muck removal systems and livestock slurry handling systems for dairy farms. The Henan Huahuaniu Group has its core business in dairy related activities such as dairy processing, cattle breeding, animal health, dairy herd improvement services and demonstration farms. In 2005, HHG has established a new factory for steel pipes. In China, dairy consumption is increasing rapidly. As a result the number of dairy cows is growing rapidly. However, production per cow has not increased much. Growth in dairy has mostly come from the larger private, state owned and collectively owned farms. These farms see the necessity of investing in high quality products for cow hygiene and comfort in order to increase productivity. As a result, the partners intend to establish a joint venture to produce and market high quality cow cubicles, slurry removal systems, feed fences with headlocks and galvanised steel elements. Knowledge transfer will focus on production, quality management and marketing and sales. Results • Joint venture established; • Production workshop prepared and established; • Staff recruited and trained; • Pilot production and demonstration.

45

China

PSOM06/CH/21 Hebei proportional hydraulic plant

Applicant Amca Hydraulic Fluid Power B.V., Ten Post Recipient Tianjin DEOU Industry Trade Co., Ltd (DEOU), Tianjin Start project 01 January 2007 End project 31 December 2008 Total budget EUR 600,000

Summary: AMCA specialises in hydraulic fluid power. It is the only company in the Netherlands specialising in the design and manufacture of load-sensing proportional valves. It has developed a new generation of load-sensing proportional valves (LPV): Advanced Proportional Valves (APV). DEOU is a trading/marketing company in China specialising in the sale of technical products. It is the distributor for AMCA's products in China. AMCA and DEOU established a joint venture in 2004 to assemble and test black/white valves. The Chinese market for LPV is expected to grow by ten-twenty percent in the coming years. Although LPVs and APVs are sold in China, there is no local production of LPVs and APVs. All APVs and LPVs have to be imported. However, the price of imported APVs is often too high to be competitive in the Chinese market. The project therefore proposes to introduce APV technology in China and to establish a joint venture to produce high quality APVs and APV parts. The APVs will be sold on the local market and exported to Korea and the Netherlands. Technical assistance will be provided with respect to product knowledge, procurement, quality control and production. Results • Joint venture established; • Production equipment placed and installed, including technical assistance; • Production of APV build-programme parts, including technical assistance • Production of complete APV valves, including technical assistance; • Business development.

46

China

PSOM06/CH/22 Piloting organic production of premium roses in an integrated supply chain

Applicant Van den Berg Roses, Delfgauw Recipient Kunming San Xin Greenhouse Engineering Ltd, Kunming Start project 01 January 2007 End project 31 December 2008 Total budget EUR 749,276

Summary: Van den Berg Roses (VDB Roses) specialises in the cultivation of top quality roses and is one of the leading rose producers in the Netherlands. It has production facilities in the Netherlands and in Kenya. Kunming San Xin Greenhouse Engineering is a supplier of agricultural equipment and constructs greenhouses. In this way it provides tailor made solutions to the horticulture industry. CHC Agriculture is an agent for several Dutch horticulture companies. It has sales offices in Kunming and Shanghai and a network of customers. Problem and business opportunity Although China is a large producer of roses, the quality of the majority of the roses is very poor. This low quality is caused by a lack of understanding of proper growing techniques and chain management and the use of varieties of inferior quality. Furthermore, most rose varieties cultivated in China are grown illegally, i.e. royalties are not being paid. Another issue is that the production of roses, although cultivated year round, shows big discrepancies in supply depending on the season, resulting in big differences in price and limited availability depending on the season. Finally, roses are not cultivated in an environmentally friendly way. Therefore, this project proposes to set up an integrated cold chain involving state of the art rose production, post harvesting and marketing to produce and sell high quality roses. In this project new varieties will be introduced and legally cultivated. Special attention will be paid to cultivate roses in an environmentally friendly way through the use of, among others, organic crop protection. Results • Business structure established; • Greenhouse and office facilities constructed; • Local staff trained and certification applied for; • Business development.

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India

PSOM06/IN/01 Manufacturing and marketing of custom-made enriched coir-based growing media

Applicant F.W. Meeuwisse en Zonen Potgrond B.V., Den Hoorn Recipient Kaveri Agricare Private Limited (Kaveri), Karamangala Start project 01 July 2006 End project 31 August 2008 Total budget EUR 1,420,589

Summary: Meeuwisse mixes growing media with ingredients that are imported. To maintain the present market position in the Netherlands and to expand market share on the international market, Meeuwisse started its cooperation with Elfferich and Kaveri. Elfferich is a trader of mixtures. Kaveri, based in the region of Bangalore, is a producer of coir based media. A present trend in the growing media sector is the application of coir-based mixtures as a substitute product for regular peat. Taking into consideration the favourable characteristics of coir, its excellent transport opportunity and the increasing environmental concern for regular peat, this trend is expected to persevere. Therefore it is expected that coir-based mixtures will conquer a relevant and stable share of the growing media market. The project partners will build a factory in order to manufacture custom-made coir-based mixtures of coir-pith, -fibres and -chips. With the custom-made products the joint venture will be able to conquer new markets and attract (new) customers. Meeuwisse provides know-how concerning the ultimate coir-composition, Kaveri takes care of the implementation of the factory and Elfferich is dedicated to locate international markets. The objective of the project partners is to manufacture high quality custom-made coir-based growing media in the region of Karnataka, India and market these products on the international and local market. A joint venture will be established on the following division of shares: 25 percent Meeuwisse; 25 percent Elfferich and 50 percent Kaveri. Results • Joint venture established; design of factory and final engineering plan established; • Infrastructure and buildings constructed and equipment operational; • Factory operational and training programme finalised; • RHP certification, production and sales.

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India

PSOM06/IN/02 High-tech, fine mechanical metalworking for the medical industry in Kanpur

Applicant Roosen Nederland Beheer B.V., Eersel Recipient Euro Footwear Ltd, Kanpur Start project 01 July 2006 End project 30 June 2008 Total budget EUR 1,500,000

Summary: Roosen Industries is a supplier of fine mechanical metal components and semi-manufactured articles of often complex nature. Their clients are in automotives and in the medical industries. Especially in producing machines and parts for the medical industries very high precision is required. Euro Footwear Ltd, based in Kanpur, is a manufacturer of leatherwear (shoes and gear for horse-riding) and metal parts. The main clients of Roosen, such as Philips, Siemens and General Electric, are moving their production to Asia. To fulfil their demand for high precision metalwork against lower prices and faster deliveries, it is a necessary step for Roosen to follow. Beside that, the domestic market for high precision metalwork in India is growing rapidly. The aim of the partners is to set up a joint venture (50/50) and to establish a fully operational production facility for high precision metalwork, at the same quality and high tech level as in Europe. Results • Establishment of joint venture (50/50), renting a building; • Pilot location established; • Recruitment and training of personnel; • ISO-certification and production and sales.

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India

PSOM06/IN/03 Verga Attachments Ltd

Applicant Verhoeven Grondverzetmachines B.V., Maarheeze Recipient Tracktech-in international P Ltd, Bangalore Start project 01 August 2006 End project 31 July 2008 Total budget EUR 800,000

Summary: Verhoeven Grondverzetmachines B.V., purchaser, seller, renter and repairer of excavating machines and extension parts, is a family owned company, based in Maarheeze. Track-In International Ltd manufactures and assembles crawler equipment and is based in Bangalore. Verhoeven sells imported machines from a.o. Japan (Takeuchi, Berco, Komatsu) and Verhoeven is in need of cost effective attachments of high quality and frames for the machines they sell. Currently Verhoeven purchases attachments that are made in India but is in need for a constant volume and quality. The joint venture (50/50) is going to manufacture work tools, attachments and track frames which will be used for different applications in the earthmoving, demolition, mining agriculture and land develop industry. Beside the attachments and trails for Verhoeven’s market in Europe, it is the aim of the joint venture wants to target the domestic market and global market. A fully operational ISO-certificated production facility, working at the same quality and high tech level as in Europe, is going to be established in Bangalore. Results • Establishment of joint venture (50/50); • Construction factory and installation machines; • Recruitment and training; • Market introduction; • Project completion: certification, production, export and ISO-certification.

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India

PSOM06/IN/21 New production plant in Chennai (India) for the purification and bottling of raw sea water into high quality drinking water

Applicant Holland Mineral Water Machinery B.V., Enschede Recipient Today's Writing Products Limited (TWPL), Mumbai Partner Lenssen Vul- en Sluittechniek, Sevenum Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,498,750

Summary: The Dutch company Holland Mineral Water Machinery and the Indian company Today’s Writing Products will invest in a pilot plant for the production of mineralised drinking water in the region of Chennai, Tamil Nadu. The strategy of the partners in the long term is to set up a nationwide network of plants. Holland Mineral Water has developed a system for the purification of seawater. The purification technology is aimed at achieving a consistent, high-quality product at a relatively low cost thanks to the energy-saving system. After purification, healthy minerals will be injected into the water and it will then be bottled in the plant. Partner TWPL has an impressive track record regarding the distribution and sale of all kinds of different pens on the Indian market. TWPL will be responsible for distribution and sales, using the same channels that they use for other products. The rapid growth of the Indian population, the Indian national income, the shortage of healthy drinking water, the growing awareness of health and the environment, and the low price of the product (compared with imported mineralised water) all give the product a lot of potential on the local market. It will contribute to solving India’s shortage of healthy drinking water, generate employment and is environmental friendly. During the pilot, a purification plant will be set up. The partners will take responsibility for the adjacent bottling line. A joint venture (50/50) will be set up between Holland Mineral Water and TWP. Results • Joint venture established; • Delivery and instalment of the machinery and equipment; • Commercial exploitation; • Business plan and dissemination.

51

India

PSOM06/IN/23 Pilot production of high quality automotive carpet at Pune, state of Maharashtra, India

Applicant Visscher-Caravelle B.V., Genemuiden Recipient Paracoat Products Limited, Bhiwadi, Rajasthan Partner VeBe Floorcoverings B.V., Genemuiden Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,452,160

Summary: The Dutch Visscher-Caravelle group (VC) is a manufacturer of automotive floor mats, mainly for the automotive OEM (Original Equipment Manufacturers) market. The Dutch company Vebe Floorcoverings is a manufacturer of automotive needle punch carpets. In order to become an important producer and supplier of floor mats for the Indian and Southeast Asian OEM markets, VC and Vebe will cooperate with the Indian company Paracoat Products (PCP) in Bhiwadi, Rajasthan, and utilize its commercial competencies in India and its expertise and knowledge of local technology and logistics. Many global car makers have already moved to India to produce passenger vehicles there. High quality automotive floor mats are currently being imported, because the local market cannot comply with the quality and safety requirements. The mission of the joint venture between VC, Vebe and PP is to become the leading company for the production of high quality automotive needle punch (pilot phase) and tufted (spin off phase) carpets in India. The specific aims are to establish a production plant in Pune, Maharashtra, extend local technical know-how of the industrial production of needle punch carpets, and produce of 1.2 m² of automotive carpeting during the pilot phase. Results • Project inception and business partnership (each 33.3 percent) established; • Pilot facility established and employees contracted; • Joint venture employees trained and start-up of production prepared; • Output of 1.2 million square metres carpet achieved in November 2007 and October 2008; • Marketing and business development.

52

India

PSOM06/IN/24 High end automotive research and design centre India

Applicant Spyker Cars N.V., Zeewolde Recipient Manav Rachna Educational Society, Faridabad Partner Challenger Management Backup B.V., The Hague Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,497,600

Summary: Spyker Cars N.V. designs, engineers, manufactures, markets and distributes high-end sports cars in Zeewolde, Flevoland. Manav Rachna Educational Society is a privately owned institute for higher education. Challenger Management Backup B.V. specializes in supporting technology-driven organizations during complex change processes. Challenger also advises companies that wish to outsource or start up activities in India. The manager, Mr Jaharia, is currently working as a Business Development Manager for Spyker. ACE Human Resource Solutions Pvt Ltd is active in the field of human resource consulting for the sports sector. Until now, global car manufacturers have merely outsourced low tech engineering, assembly and mass production of components to India. High quality research and development is performed in Europe or Japan, because India lacks the necessary specialist knowledge and expertise. Spyker (45 percent), Manav Rachna (15 percent), Challenger (35 percent) and ACE (5 percent) will establish a joint venture to set up a pilot facility for high end automotive research and design in India. High end engineering will be offered to both foreign and domestic automotive companies. Spyker itself will be one of the clients of the new venture. A completely new, independent high tech automotive research and design centre will be set up in Gurgaon, Haryana. Results • Inception; • Facilities established; • Knowledge transfer and training of personnel; • Research and Design Centre fully operational.

53

Indonesia

PSOM06/RI/01 Establishing a pilot production facility in Indonesia for the production of precision mechanical parts and components

Applicant Norma B.V., Hengelo Recipient PT Srikandi Prima Perkasa, Kanungan Start project 01 June 2006 End project 01 June 2008 Total budget EUR 550,000

Summary: Norma only recently started its business in Indonesia. The core business of both is respectively the production and supply of mechanical products and consultancy in technical and educational mechanical engineering. The second Indonesian partner is the Bandung Polytechnic for Manufacturing (Polman Institute). This institute performs as a centre for manufacturing technology in Indonesia. It supports the industrial development in the country, particularly manufacturing and engineering industries. Polman has at present more than 200 industries as customers. It aims at developing long term international cooperation actions with European companies. In 2004 Norma and Polman signed a MoU which provides the basis for the future industrial cooperation between these partners. These three companies will set up a joint venture under the name Norma Asia, which will become the recipient of this PSOM project. The joint venture will establish a pilot industrial CNC and CAD-CAM production facility at the location of Polman in Bandung. Norma produces for leading industrial companies in Europe and the USA. Main customers are Philips, ASML, Carl Zeiss, Nestlé and Texas Instruments. These customers also have production sites in Asia. As markets are rapidly changing and prices are under continuous pressure the Asian customers are looking for opportunities to purchase their goods in the region so that costs and delivery times can be reduced. The market has pressed to produce their mechanical parts and components in cheap labour countries. like Indonesia. The market requires precision tolerance levels of 0.001 mm (micon of micrometre). At present in Indonesia tolerance levels of 0.02 are only possible. The objective of the new joint venture is to be able to produce two years after the start of Norma Asia mechanical products with tolerance levels of 0.005 mm. The will require an extensive training programme for the transfer of know-how from the Netherlands to Indonesia. Results • Foundation of the joint venture and preparation of the investment (a.o. set up of joint venture Norma Asia (Norma

70 percent, Polman 20 percent and PT Srikandi Prima Perkasa ten percent); • Readiness of the production location and new organisation; • Start up of the production; • Operational production plant and completion report.

54

Indonesia

PSOM06/RI/22 Aloe vera processing on Bali - Medicine Against Unemployment

Applicant Heusden Veste B.V., Schaijk Recipient PT. Aloe Vera Bali, Kab. Gianyar Partner BioClin B.V., Delft, Cuckoo Company B.V., Delft Start project 01 December 2006 End project 31 December 2008 Total budget EUR 1,490,494

Summary: Heusden Veste specializes in business development. The owners of Heusden Veste cooperate with Pt. Aloe Vera Bali, which they established in 2002 with private sources. In the past four years, Pt. Aloe Vera has specialized in growing Aloe vera on Bali. Its strategy has been to recognise the potential of Aloe vera cultivation. Now that this potential has been proven, it is focusing on establishing an Aloe vera exports and processing facility. The technology for the processing of Aloe vera will be provided by the Dutch companies BioClin B.V. and Cuckoo B.V., which are sister companies. BioClin's core business is the R&D, development, production, and supply of medical and personal care products. Aloe vera is the main ingredient of BioClin products and BioClin is the greatest European expert on Aloe vera. BioClin is interested in assisting in the development of high quality Aloe vera on Bali, which would also be a potential client for the products. The worldwide demand for Aloe vera has grown more rapidly than the supply over the past twenty years. Barbadensis Miller is the highest quality variety, developed in the past four years. In the next two years, a pilot project will begin focusing on the Aloe vera processing facility and the export of Aloe vera produced gel, concentrate, juice and powder. The market will dictate the composition of these semi-finished products. The processing facility will be able to handle the output of 60 ha. In the long term, the partners aim to have 500 to 1,000 hectare of land to cultivate Aloe vera on Bali. The staff of the local PT and the farmers will receive training to help them master all the skills needed to operate and maintain the factory, including quality and export management. At the end of 2008, 250 people will be employed in the chain from the plantation/farmers to the factory. After the pilot phase, the PT is also planning to develop a plasma model for contracting outgrowers for the production of Aloe vera. The plan is to contract about 400 farmers. In order to achieve all these plans, investment will continue after PSOM. Between 2009 and 2011, an investment of about EUR 250,000 a year will be made. After this, the rate of investment may increase dramatically to EUR 1 to 2 million a year, including social welfare projects. Results • Joint venture established; • Factory hall delivered and processing line installed; • Quality system installed and operational; • Export facility established and final report.

55

Indonesia

PSOM06/RI/25 Multi functional cardiovascular infrastructure Indonesia

Applicant Diagram B.V., Zwolle Recipient PT Diagram Healthcare Indonesia, Jakarta Depok Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,059,246

Summary: Diagram Health Care B.V. (DHC) is the applicant and has been only recently established. It is supported by Diagram B.V. (17 percent) and the Maatschap Cardiologie Zwolle (83 percent). This Maatschap has sixteen cardiologists, of which eight have roots in Indonesia. One of the founding members comes from Indonesia. Diagram B.V. was set up in 1996 and can now be regarded as one of the top R&D institutes in cardiology worldwide. The recipient is PT Diagram Health Care Indonesia, a joint venture between Diagram Health Care B.V. (49 percent) and the Puri Cinere Hospital in Jakarta (51 percent). This PT was only set up in 2004, but it already opened a new cardiac Cinere clinic in Jakarta in August 2006. The clinic can only provide basic intervention cardiology, for example catheterisation and general cardio care. The focus of the PSOM project will be to extend the playing field for this clinic by setting up a state-of-the-art cardiac clinic in which all known heart procedures can be performed. The new clinic in Jakarta will offer combined therapies, such as hybrid procedures (e.g. intervention, electrophysiology and cardiac surgery procedures in combined sessions). Cardiovascular diseases (CVD) are a threat to developing countries, in particular Indonesia. Due to genetic tendencies, Indonesians are more sensitive to diabetes. Approximately twenty million Indonesians have CVD and it is the cause of about 220,000 deaths annually. At present more than 90,000 Indonesians go to Singapore and Hong Kong for the more complicated cardio treatments. The main idea of this PSOM project is to develop and keep as much know-how as possible in the Indonesian cardio medical sector and to treat as many people as possible from Indonesia in the cardiac clinic in Jakarta. It is expected that the new cardiac centre will employ 114 people at the end of this pilot phase (five cardiologists, twelve assistants, nineteen technicians, 38 medical staff and 40 administrative staff). In the two years following the pilot phase, investments will be made in order to double the capacity. This will imply a follow-up investment of about EUR 1 million. The PT partners will create a social foundation to support poor people who need cardiac treatment but cannot afford to pay for it. Results • Inception phase; • Multi-functional cardiac surgery room established; • Electrophysiological instrumentation; • Employment, education and training; • Marketing, information, sales and final report.

56

Indonesia

PSOM06/RI/26 CINCO - added value to spices by means of supply chain control and processing

Applicant Koninklijke Euroma B.V., Wapenveld Recipient PT Van Buchem Indonesia PMA, Jakarta Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,235,582

Summary: Koninklijke Euroma B.V. was established in 1899. Its mission is to be the best supplier of top quality spices in all forms and mixtures to the European food industry. It has achieved this by means of innovative products and solutions, consistently high quality, delivering the solutions industry demands, and maintaining a maximum level of food safety. PT Van Buchem Indonesia PMA was established in 2005 in order to develop and exploit knowledge of the food industry and products. Its mission is to develop a sustainable farmer-to-supplier chain at the grassroots so that high quality products can be guaranteed. Together the two companies make up a complementary team for carrying out and achieving the deliverables of this project. Current practice is to collect spices (e.g. nutmeg, cinnamon) on the islands of Indonesia through a vast network of local collectors and traders and subsequently ship them to the Netherlands for processing, packaging and distribution. This often results in consignments of damaged or rejected products with subsequent economic losses, and there is no control over the supply chain, in particular the steps in Indonesia. This shortcoming represents a business opportunity which the project partners wish to exploit by establishing a processing plant in Jakarta, where the spices can be sorted, cleaned, graded, processed and packaged for niche markets (high grade foods and pharmaceuticals), thereby guaranteeing integrated supply chain control. Local farmers are of pivotal importance in this respect, and will receive higher compensation by supplying high quality products. The project partners will establish a joint venture to develop a supply chain linking the farmers/suppliers with a new processing plant in Indonesia and the processing and distribution network of Koninklijke Euroma in the Netherlands, where overall quality can be ensured by a tracking and tracing system covering the entire chain. The project will add value to various spices and natural products locally in Indonesia, so they can be used as high quality ingredients in the food and pharmaceuticals industry. The processing plant in Jakarta will employ about 50 people and between 50 and 100 farmers will be involved in the new joint venture operation. If the pilot project is success, additional investments of EUR 400,000 are planned to process other spices and natural products and add more value to the existing operation. Results • Joint venture established and project inception; • Design and installation of processing plant; • Assembly and commissioning of processing plant; • Plant operational, evaluation and final report.

57

Indonesia

PSOM06/RI/27 Indonesia's first bio secure indoor shrimp farm

Applicant Froconsur Overseas B.V., Leeuwarden Recipient PT Agribistan, Palembang/Medan - Sumatra Start project 01 January 2007 End project 30January 2009 Total budget EUR 1,199,120

Summary: Froconsur Overseas was established in 1989 by the present director/owner Mr Andre Papa. Nowadays this company has a strong position in the shrimp market, and it is particularly active in Europe and the Middle East. The shrimps come from East Africa and East Asia. Froconsur recently established another joint venture in China with a Chinese partner to produce squid. The relationship between the joint venture partners was initiated by the Dutch advisor to the management of PT Agribistan (the Indonesian partner), Mr Bert Knelissen. Mr Knelissen is also the originator of the project idea and will be appointed the local director of the new joint venture. The expertise required on the part of Indonesia will be contributed by Mr Freek Husken, who is the director of a successful Swiss-owned fish farm in Medan producing tilapia. He himself produces shrimps in open ponds. Also involved is K&P Consultancy, owned by Mr Heins Knelissen, who is an expert in water systems. That expertise is essential for setting up this type of a shrimp production line. The Indonesian recipient PT Agribistan was founded in 2003 and specializes in producing, processing and trading fresh food and flowers. Its marketing network will be of value for the local sales of the shrimps. The objective of the project is to develop an economically feasible bio-secure indoor production system for the Litopenaeus Vannamei shrimp in low salinity water. After two years, six production units, each with a production capacity of 25 tonne shrimps per year, will be operational. The six raceways will cover an area of about 6,500 m2 with an 8,600 m2 greenhouse. At the end of this pilot phase, the new joint venture will be able to offer a comprehensive solution to all parties interested in producing shrimp in a profitable, environmentally friendly, bio-secure fashion. The new production system will serve the high end market of the industry. The sustainable produced shrimps will be of excellent quality and pose no food safety risks. The production system will no longer be harmful to the environment and nature. Once sufficient market volume has been attained, the project will result in a specific brand that promotes responsible shrimp production. It will then be the aim of the new joint venture to transfer and commercialize the know-how required to establish bio-secure shrimp processing units. The shrimps will be processed by a well-known Indonesian company in Medan, PT. Agriwindu. Froconsur already has a strong business relationship with this company. This processing company will become the major client of the new joint venture. After the PSOM phase, capacity will be increased yearly by 50 tonne to a total of 500 tonne. The company is expected to employ twenty people by then, increasing to about 60 at full capacity. Within two years following the pilot phase, additional investments can be expected of EUR 1 million. Results • Setting up the joint venture and inception phase; • Construction, installation and organisational set up; • Production, quality control, marketing, human resources and completion report.

58

Pakistan

PSOM06/PK/01 ProFarm Pakistan Ltd

Applicant CRV Holding B.V., Arnhem Recipient ProFarm Pakistan Ltd Start project 01 July 2006 End project 30 June 2009 Total budget EUR 1,009,587

Summary: CRV Holding B.V. is an international cattle-breeding cooperative, selling 6.5 million sperm straws per year. The Blue Link (TBL) initiates partnerships and participates in ventures in developing countries, offering services like project management and business development. In 1996, employees of Nestlé Pakistan, to uplift dairy communities by increasing milk production, established Rural Development Foundation. Artificial Insemination is an important tool for farmers to increase the milk yield from their animals. Based on the increasing demand for milk, demand for high quality genetic material and adequate insemination service is growing. Nestlé Pakistan (NP), in need of milk of high quality and in high quantities, has been looking for a partner who could offer high quality bovine semen. In return, NP offers the use of the network of Nestlé milk collection centres. To serve the market of potentially nine million cows in the Punjab, CRV, TBL and RDF to establish a joint venture, ProFarm Pakistan (PFP). PFP will sell high quality semen through a marketing, sales and service network. 550 AI-technicians will be trained and sell semen through a network of a main office and nineteen field offices. PFP will reach at least 132,000 farmers. Hardware includes LNG containers, AI guns, two vehicles and office furniture. Results • Setting up of joint venture ProFarm Pakistan Ltd in Pakistan; • Roll out of sales infrastructure and sales of semen; • Training and awareness; • Data collection and quality evaluation of inseminators, breeding results, marketing and training efforts.

59

Pakistan

PSOM06/PK/02 Fine fragrance and flavour extract manufacturing with benign solvent extraction

Applicant Feyecon Development & Implementation B.V., Weesp Recipient Kasur Straw Board Factory, Lahore Partner Setigy, Lahore Start project 01 August 2006 End project 31 July 2008 Total budget EUR 540,000

Summary: Feyecon Development & Implementation B.V. from the Netherlands and two Pakistani companies, Kasur Straw Board Factory and Setigy, aim to set up a facility to manufacture fine fragrance and flavour extract with benign solvent extraction. The core-business of Feyecon is developing new compressed gas technologies, while the core-business of Setigy is production and export of fragrant dry flowers and cut flowers. The project will take place in Kasur (nearby Lahore) where the surrounding area has hundreds of acres of flowers and other local crops which contain very valuable natural fragrances, flavours and herbal medicines. The natural environment of the area also allows successful plantation of Rosa Centifolia and its yield is higher than in the well known perfumery region of Grasse, France and Turkey. Currently, Pakistan does not produce extracts and relies for its domestic market on imports from Bulgaria, France and Turkey. This project aims to convert a strawboard factory and surrounding flower and herb/spices based crops into a profitable flower growing farm and extraction facility. The pilot project will provide the extraction and purification equipment and training of personnel on a scale from where the new company can become self-propelling. FeyeCon will provide the latest purification technology based on benign solvents like carbon dioxide. This enables the production of world-class extracts for the fine-flagrance industries. The Pakistani partner Setigy will provide their expertise in developing the agricultural land for production of Rosa Centifolia and Rosa Gallica. The capacity of the extraction plant will be about 180 tonne of raw material and a production of 6,000 kilogramme extract. A joint venture will be set up between FeyeCon (50 percent) and Kasur Straw Board Factory (50 percent). Results • Setting up of a joint venture; • Technology and legislation; • Agricultural expansion; • Construction and commissioning; • Protocol of Production and Market Development.

60

Pakistan

PSOM06/PK/21 Muta Pakistan Project (MPP), Production and sublimation of sportswear

Applicant Muta Sport B.V., Leeuwarden Recipient Capital Sports Corp. (PVT) Ltd, Sialkot Start project 15 December 2006 End project 31 December 2008 Total budget EUR 775,000

Summary: The Dutch (Friesian) company Muta Sport B.V. produces and trades sportswear, sports equipment and accessories. The Pakistani company Capital Sports is a manufacturer and exporter of hand stitched balls (mainly footballs) and goal keeper gloves. Muta Sport specialises in custom-made textile products for team sports using the process of digital sublimation. In Pakistani textile industry is enormous, but the technique of digital sublimation is unknown. The objective of the project is to establish a production facility of high quality custom made sportswear, making use of digital sublimation. The project will be located in Sialkot, the centre of the sportswear industry. A joint venture will be established between Muta (60 percent) and Capitol (40 percent). Results • Project start-up (incl. setting up of joint venture); • Investing / installation of machinery; • Optimisation (incl. training and management); • Project completion (incl. production target > 100,000 items. Expected turnover > EUR 1,000,000).

61

Philippines

PSOM06/PH/01 Oil and gas drilling and production for marginal fields

Applicant Focus Human Resources and Consultancy B.V., Beverwijk Recipient Oilwell Drilling Technology Development Center Inc., Pasig City Start project 01 June 2006 End project 30 June 2008 Total budget EUR 1,466,500

Summary: The Dutch applicant Focus Oil & Gas Human Resources & Consultancy B.V. (26 employees) is experienced in the oil and gas project recruitment and (inter)national dispatch of technical personnel in a large number of industrial and technical branches. Focus is part of the Focus Oil and Gas Group B.V., which is an upstream offshore service contractor. Main services are: Contracting of maintenance, hook-up and commissioning projects; Trade in redundant drilling and production equipment; Human Resource services for key technical specialists and project management staff; Specialist products and services. The Philippine joint venture partner Oil well Drilling Technology Development Center Inc. (ODTDC, 30 employees) is a drilling training centre in the Philippines providing training to approximately 350 students a year and accredited by institutions from the UK and USA (including the International Association of Drilling Contractors from the USA). Because of a shortage of well trained personnel in the oil and gas sector (many workers are expected to retire), the project partners see an opportunity to set up a training facility to train Philippines students. In the future these students will work on modern oil production and drilling oil rigs especially for drilling and production of marginal oil and gas fields in the Philippines and abroad. The project will include 1. a training programme and training facilities for oil production (production simulator), 2. update of the existing training programme and training facility for drilling (based on North Sea drilling), 3. new training equipment will be acquired to facilitate the high quality training including seismic technology and dynamic

positioning technology and 4. an installation for Helicopter Underwater Exit Training (HUET) and H2S training. In addition, at least two international trade shows will be attended to introduce the joint venture in the oil and gas industry. The project will create 54 jobs. Results • Establishment of joint venture; • Training programme; • Knowledge transfer; • Pilot training facility; • Completion of the project.

62

Philippines

PSOM06/PH/21 Improving horticultural practices in the Philippines through piloting year-round availability of safe and high quality vegetable plug transplants

Applicant East-West International B.V., Enkhuizen Recipient East West Seeds Company, Inc., Bulacan Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,163,710

Summary: The Dutch applicant East West International B.V. (EWBV, twelve employees) has a controlling interest in vegetable seed companies in Thailand, the Philippines, Indonesia, India and Vietnam. The company utilizes breeding and research programmes to benefit the lives of farmers in Asia. All country operations are strong independent companies with leading positions in their respective markets. East West has grown into a network encompassing 850 personnel, five breeding stations, 800 seed distributors, 5,000 contract farmers and millions of commercial growers. The Filipino partner East West Seeds Company Inc. (EWPH, 354 employees) is a wholly-owned subsidiary of EWBV and develops and markets improved open pollinated and hybrid vegetable seeds and sells technology related to vegetable growers. The project will set up a 1.5 hectare environment-friendly production facility for high quality vegetable plug transplants for eggplant, tomato, hot pepper and papaya seedlings, employing 50 direct employees and including 2,000 small-scale farmers (400 hectare seedlings). The project will also include three mobile vegetable plant health clinics (for disease diagnostic, soil analysis, digital learning equipment), four strategically located demonstration farms (maintained by small farmers) and it will train 2,000 farmers in good agricultural practices. Results • Project inception completed; • Vegetable plug transplant production facility installed; • Staff trained in modern vegetable plug transplant production and management; • Privately-managed, highly reliable small-scale farmer training and extension service piloted; • Vegetable transplant marketing and sales established.

63

Philippines

PSOM06/PH/23 Organic pineapple development project

Applicant Global Fruit B.V., Nieuwdorp Recipient Asian Hybrid Seed Technologies, Incl. - Corporation, Malaybalay Partner AgroFair Assistance & Development Foundation (AFAD), Barendrecht Start project 01 January 2007 End project 31 December 2009 Total budget EUR 1,323,156

Summary: The Dutch applicant Global Fruit B.V. (four employees) is a sales and marketing organisation for the food industry. Its main product groups are fruit concentrates, fruit juices, fruit purees, concentrated fruit purees, natural aromas and other fruit ingredients. The Filipino partner Asian Hybrid Seed Technologies Inc. (AHSTI, 231 employees) produces hybrid corn seeds and pineapples (MD2), with activities in Indonesia and Thailand. The company's mission is to provide affordable and profitable products to farmers, thereby improving their income and welfare and to make a major contribution to the science of crop management and improvement. The consortium partner AgroFair Assistance & Development Foundation (AFAD, five employees) aims to contribute to the pro-poor socio-economic development of fruit producers in emerging economies by improving the capacity and facilities of producer groups so that they can gain access to export markets. The project will set up the production of organic MD2 pineapples in the province of Bukidnon in Mindanao. Production will include the introduction and certification of organic production methods and fair trade principles in pineapple cultivation, the establishment of a packing plant, a laboratory, a training facility, an administration office and planting material for the company estate (30 hectare) and for the participating farmers (30 hectare). In addition, the project will involve preparing the establishment of a pineapple processing plant that will produce 121,680 boxes of organic pineapples in 2009 (one box contains seven pineapples of 2 kilogramme each). The project will create 88 direct jobs and 40 indirect jobs. Results • Business relationships established; • Organic farming introduced in pineapple cultivation; • Packing station set up and marketing plan developed; • Project finalised and establishment of a fruit processing plant prepared.

64

Thailand

PSOM06/TH/01 Manufacturing of composite aircraft interior parts in Thailand

Applicant Aeroworks Composites B.V., Middenmeer Recipient Siam Aviation Industries Ltd, Chonburi Start project 01 July 2006 End project 30 June 2008 Total budget EUR 1,229,135

Summary: The Dutch applicant Aeroworks Composites B.V. (fifteen employees) is manufacturing composite aircraft interior parts and the newest addition to the Aeroworks Group. Aeroworks Composites is a merger of two companies (engineering and manufacturing): one a former subsidiary of Fokker Aircraft (producing ceiling panels, side walls, overhead bins, closets, lavatory units and class dividers) and the other as Dutch Thermoplastic Components (design, engineering and production of small thermoplastic composite components). The Thai partner Siam Aviation Industries Ltd (established in 2000) is a manufacturer of high quality aluminium aircraft interior and lightning components for export. Quality products are designed both standard and to customers requirements. Aeroworks Composites B.V. and Siam Aviation Ltd both belong to the Aeroworks Group. Where Siam aviation produces the traditional aluminium parts, the joint venture will develop production capacity in the new technology composites. The project will set up a certified facility for the serial production of composite aircraft components (seats). For this, a separate joint venture will be established for the certified production line (EASA and ISO9002) including 1. renovation and adaptation of building (600-1,000 m2), 2. production and processing equipment (freezer unit, hydraulic press, milling machine, oven and moulds for seat pan and

seat back), 3. maintenance and testing unit and 4. office and administration. In addition, a promotion campaign will be designed and an International Manufacturing Fair will be attended. The project will create 30 jobs. Results • Foundation of joint venture; • Building renovated and hardware installed; • First staff members recruited and trained; • Sales and promotion established; • Bankable business plan and final report.

65

Thailand

PSOM06/TH/21 Standardized coco-peat production for Thailand

Applicant R.J.H. Beheer B.V., Kwintsheul Recipient Ann's Inter Feed Ltd, Suratthani Partner Eurosubstrates Ltd, Pitakotte Start project 01 December 2006 End project 31 May 2008 Total budget EUR 1,349,964

Summary: The applicant, RJH Beheer B.V., is a leading producer of tailor-made growing media in Europe. The recipient, AIF Ltd, has a considerable stake in shrimp production and agricultural supplies. Project partner Mrs Rattacha Dechanuphap has a degree in agriculture and her family are relatively large-scale coco nut producers in Songkla. The project partner, Eurosubstrates, is a Sri Lankan processor of growing media in which the applicant has a 51 percent interest. The increasing trade in growing media with Thailand has attracted the attention of the project partners, despite the high transport costs. Peat moss and rock wool from Europe as well as coco peat from India and Sri Lanka are imported at a very high cost. The transport component of the price of peat moss and coco peat in Thailand is higher than the original FOB price at departure. The project partners intend to correct this situation through local coco peat production in Thailand. Thailand is a niche market and is not part of global strategy of the Van der Knaap Group. The project will establish the first coco peat factory in Thailand, with technology from the Dutch applicant. It will produce standardised coco peat locally, suitable for horticulture, from a waste product of the coco fibre industry. There are several reasons to support this project. First of all, Thailand is one of the largest coconut producers, but there is no local production of standardised coco peat. Local coco peat is dumped as waste or sold untreated. Secondly, coco peat waste poses an environmental problem as it accumulates and leaches out in ground water. Untreated coco peat causes irregular growth. It has unfavourable chemical and physical characteristics. The project partners are leading producers of tailor-made growing media in Europe and a leading coco peat producer in Sri Lanka and India. Current exports to Thailand are subject to very high transport costs. The grower organisations (a.o. Chetai) and orchid producers want to participate in the proposed demonstration trials. The envisaged Thai production of local standardised coco peat will replace peat based growing media imported from Europe (over 110,000 m3), rock wool (waste problem) and the limited imports of coco peat. Participation in this project will give the recipient access to: 1. Critical technology and know-how provided by the project partners to produce coco peat locally. 2. A steady source of international R&D in product and product application innovations from the applicant. 3. Involvement in a production chain that is now beyond the recipient’s reach. Instead of being another supplier of semi-processed raw material, the recipient will have the opportunity try a new business in which it is involved in sourcing the raw material right through to final use. Through this project, Eurosubstrates will maintain a trade that is now limited by the high transport costs involved in sending large volumes from Sri Lanka. Results • Business founded and joint venture established; • Buildings completed and equipment installed; • Staff contracted and trained; • Quality control established and production started.

66

Vietnam

PSOM06/VN/01 Life Resort Halong Bay

Applicant Vietnam Hotel Projekt B.V., Hoofddorp Recipient Bai Dai Tourism Quy Nhun Co. Limited, Quy Nhon City Start project 01 August 2006 End project 01 August 2008 Total budget EUR 1,497,312

Summary: Vietnam Hotel Project B.V. (VHP) is a Dutch investment company established in 2001. VHP is a 100 percent subsidiary of IBUS Far East B.V., a Dutch real estate company, active in real estate investments, asset management, research and advisory services. The mission of VHP is to establish and operate a chain of tourism facilities under the name "Life Resorts" for the high end tourist market. VHP currently operates two Life Resorts in joint ventures with Vietnamese partners:- a Life Resort Quy Nhon which opened in 2003 with 63 rooms;- a Life Resort Hoi An which opened in 2004 with 94 rooms. A third resort, Life Resort Hue, will be opened in 2007 with 85 rooms. The management of these projects is entrusted to the Life Resorts Management Company Ltd, (LRMC) a Vietnamese company, which is also a 100 percent subsidiary of the IBUS company. LRMC will be partner in this project. The envisaged recipient is Bai Dai Tourism Quy Nhon Company Ltd Bai Dai, established in 2003, and a joint venture between VHP and Binh Dinh Tourism Co. Ltd (BDT), in which VHP holds 88 percent of the shares. The project partners are involved in developing high end tourist resorts in different locations in Vietnam and want to extend their chain of resorts with high end boats in the Halong Bay in the north of Vietnam. Halong Bay is a UNESCO World Heritage site where, according to the applicant, its spectacular scenery can best be enjoyed by boat. Actually boats can be rented for day trips at Halong Bay and larger vessels with overnight facilities are also available and can be qualified as two to three star accommodation. The overall goal of the project is to introduce high quality self-contained boats for one family or two adults with sleeping facilities for overnight trips in the Halong Bay. The quality of the boats will be in line with the other high end level Life Resorts. The project will build 22 boats and a Life Resort Hub with mooring facilities for the boats. The boats will be locally built, are engine propelled but will also have sailing capacity. The design is based on the traditional Chinese "Junk". A joint venture will be formed, owned for 70 percent by the applicant and 30 percent by the recipient. Results • Establishment of the joint venture, permits and designs; • Completion of hub and eleven boats; • Completion of eleven boats; • Conclusion of project.

67

Vietnam

PSOM06/VN/22 Integrating vegetable smallholders into modern retail markets

Applicant Metro Cash & Carry Nederland B.V., Diemen Recipient Metro Cash & Carry Vietnam Ltd, Ho Chi Minh City Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,315,340

Summary: Metro Cash and Carry International Holding (4,000 employees) is the holding company of the Metro Cash & Carry stores that operate under the Metro and Makro (only in Europe) brand names and as such part of the METRO Group (holding company in Germany). The METRO Group is the world market leader in the Cash & Carry wholesale business. Metro Cash & Carry operates in 26 countries with 476 stores. Worldwide, more than 77,000 people worked for Metro Cash & Carry in 2004. Metro Cash & Carry International is the Dutch Mother company of Metro Vietnam (2,080 employees). Metro Cash & Carry Vietnam is a modern wholesaler, supplying the food catering and retail sector in Vietnam with high quality products. Metro has currently four stores in Vietnam and is planning to expand its activities in the near future. Vietnamese farmers produce vegetables and quality awareness and food safety levels are poor. Chain relationships are non-existent, numerous middlemen between the farmers and consumers increase prices and lead times, resulting in high post-harvest losses and low quality. On the one hand, the supermarkets have no reliable supply, and on the other hand the predominantly small farmers have no access to modern markets. The project intends to bridge the gap between the producers and modern markets by setting up a production, collection and distribution centre of 1.2 hectare (DC), including cold storage facility in Dalat for fresh vegetables, in order to serve retail, wholesale and export and involving 500 farmers. For the tropical lowland vegetables which can not be cultivated in Dalat, two mobile cold storage units will be included and a 1.5 hectare nursery greenhouse will be used to provide the farmers with consistent and high quality virus-free vegetable seedlings. In addition, the project will include sorting facilities, packing equipment, a laboratory and three pick-up trucks. Training activities will include farm training, supervision and coordination of quality vegetable production, development of GAP standards, set up of organised spraying teams, the set-up of a tracking and tracing system, development of post-harvest protocols, a chain organisation and logistical services. Results • Project preparation, design and work plan update; • Construction and installation and organisational set up; • Farmer training, vegetable production scheme organised and operational; • Production, quality control, marketing and human resource management implemented.

68

Vietnam

PSOM06/VN/23 Cold chain Vietnam

Applicant TNT Express Worldwide N.V., Hoofddorp Recipient TNT Vietnam Limited, District 1, Ho Chi Minh City Partner TNT-Vietrans Express Worldwide, Hanoi Start project 01 January 2007 End project 31 January 2009 Total budget EUR 1,462,438

Summary: The Dutch applicant TNT Express Worldwide N.V. (277 employees) is the holding company for the management and financing of the various TNT companies that provide delivery services by expertly managing networks. Established in 1946, TNT is a global integrator and offers a range of unique international express delivery services between more than 200 countries, and the various TNT companies employ more than 48,000 people worldwide. The applicant owns 60 percent of the local Vietnamese partner TNT - Vietrans Express Worldwide Co. Ltd (236 employees) and its activities include the handling consignments arriving from abroad or dispatch to abroad from Vietnam (only international). The Vietnamese recipient TNT Vietnam Ltd (one employee) is wholly-owned by the applicant. The activities of the recipient are limited by license to the handling of consignments within Vietnam. TNT is the first foreign company licensed by the Vietnamese Government to handle consignments within Vietnam. The project will establish a commercially viable and state-of-the-art integrated Cold Chain distribution network between Hanoi and HCM City, ultimately providing coverage throughout Vietnam for the collection, transport, handling and delivery of perishables to local and foreign markets at fixed times. The main network between Hanoi and HCM City will initially be fed through three smaller networks, each with their own climate controlled feeder hub. These hubs will act as points of collection or delivery of consignments that can be kept at the hubs waiting for the next transport opportunity without compromising product quality (cooled facilities). The hubs will be the central points for various routes, which will be maintained by eleven climate controlled trucks (three 20 tonne trucks for the longer routes, five 15 tonne trucks and three 9.5 tonne trucks, which together will run mainly on routes that are expected to require more flexibility). The hubs and trucks will be fully climate controlled. This allows each hub and truck to be fitted with three separate areas or compartments and maintain temperatures of -18°C, +5°C and +15°C. The trucks will operate along various routes at fixed times. Particular attention will be given to providing customers with practical information concerning the Cold Chain and the optimal use thereof, and seminars will be organised addressing various key aspects. The project targets 250 trips per month, offering a dependable service and allowing customers to plan their deliveries well ahead of time. The aim is to achieve a minimum volume of 1,250 consignments (shipments) of perishables handled during a continuous period of three months during the project. Support will be provided by locating unit staff in the offices of TNT Express Vietnam in Hanoi and at other offices in Dalat. Results • Cooperation framework established; • Procurement and commissioning of equipment and initiation of training; • Start of operations, training and promotion; • Operations and finalisation of the project.

69

Vietnam

PSOM06/VN/24 Pilot production medical devices and its subassemblies for export, Vietnam

Applicant Wassenburg & Co B.V., Dodewaard Recipient Viet Han Electronic Co. Ltd, Hanoi Partner Vietnam Consult & Trading B.V. (VCT), The Hague Start project 01 March 2007 End project 28 February 2009 Total budget EUR 1,496,270

Summary: The Dutch applicant Wassenburg & Co. B.V. (65 employees) develops, manufactures and sells systems for cleaning (washing and disinfection) and storing medical devices (flexible endoscopes) as well as peripheral equipment for these machines. The Vietnamese partner Wassenburg Vietnam Ltd (one employee) is a representative office of Wassenburg & Co B.V. and a wholly-owned subsidiary. The Vietnamese consortium partner Viet Han Electronic Co. Ltd (fifteen employees) manufactures electrical switchboards and equipment and will be the preferred supplier of Wassenburg Vietnam Ltd. As such it will have its employees trained by Wassenburg. The project will set up a production facility, including factory, offices and training centre, in Vietnam for the production of ISO 9000 and ISO 13485 certified sub-assembly units that will be assembled into certified final products (Endoscope Washer Disinfector and Endoscope Reprocessors) in the Netherlands. As Wassenburg needs to expand its production capacity to exploit opportunities in the market, and as the production of sub-assemblies is labour-intensive, Wassenburg has been looking into setting up an initial sub-assembly production facility in various countries in Asia (e.g. China and Thailand), Wassenburg is planning to change its production facility into a production factory to cover the demand for these machines in Asia. The initial sub-assembly production facility will produce sub-assemblies for the production of 125 machines in 2008. Results • Set up of joint venture, design of facility and finalisation of training programme; • Building factory and installation of production line, including training facility and office; • Recruitment, training and set up of cooperation with local suppliers and institutes; • Pilot production of 125 subassemblies and ISO certification of pilot production lines; • Business development, marketing and bankable business plan.

70

Vietnam

PSOM06/VN/26 Cable harness: 'made in Vietnam'

Applicant ECS Electronics B.V., Breda Recipient ECS-Electronics Ltd, Thu Dau Mot Town Start project 14 January 2007 End project 13 December 2008 Total budget EUR 1,370,000

Summary: The Dutch applicant ECS-Electronics B.V. (153 employees) is a producer of tow-bar harnesses. ECS was founded in 1993 in the Netherlands and has developed into as a major, Europe-wide cable-solution company for the automotive industry by producing car-specific tow-bar harness sets, fog-lamp kits and park distance-control sets. ECS specialises in small batch production. ECS has been researching the Asian markets since 2005. The Vietnamese partner ECS Electronics Ltd (one employee) was established in August 2006 and is a wholly-owned subsidiary of ECS in the Netherlands. The project will set up an ISO14.001 certified factory for the production of cable harnesses especially for the caravan industry. A production factory will be built for this purpose, including a production facility (2,500 m2), offices (250 m2) and hardware, with 92 employees to be trained. Results • Business unit set up; • Design and construction of factory, office and facilities; • Purchase and installation of machinery; • Hiring and training of employees.

71

Central and Eastern Europe

72

Bosnia and Herzegovina

PSOM06/BA/01 Production of fine wire heat exchangers

Applicant Ter Beek Beheer B.V., Oldenzaal Recipient(s) Hydro Systems International D.O.O., Bugojno Start project 01 July 2006 End project 31 December 2007 Total budget EUR 300,000

Summary: Ter Beek Beheer B.V. (TBB) was established in 1984 as a management and investment company. The company (or better its daughter company Hydro Systems Holland B.V.) has developed a special type of linear heat exchangers. The production of the heat exchangers is based on processes that are used in the textile industry. The company uses fine wire weaving technology to produce fine wire copper mats. The main market for fine wire heat exchangers (FWHs) is the greenhouse sector. During the summer, excess solar heat will be stored underground in aquifers. This heat is used during the winter to heat the greenhouse. The product is unique and has just, successfully, undergone its trial testing in the Netherlands. The FWHs allow more energy efficient production in greenhouses with less CO2 emission. In order to keep the cost price as low as possible, TBB wants to assemble the FWHs on a large scale in Bosnia and Herzegovina. The production of the fine wire copper mats remains located in the Netherlands. Together with a Dutch business partner, Ter Beek bought a factory in Bugojno. The factory was heavily damaged during the war. To start-up production a lot of renovation must take place. The recipient in this project is Hydro Systems International D.O.O.. This company was established in December 2005 as a 100 percent daughter of TBB. To start production, investments are necessary in renovating the building and in gluing, packaging and computer equipment. Results • Detailed planning for renovation of the building and setting up a training programme; • Renovating the building and delivering and installing the hardware; • Hydro Systems International D.O.O. fully operational, generating a turnover of more than EUR 2.4 million.

73

Bosnia and Herzegovina

PSOM06/BA/02 High quality injection products of non-ferro and plastic

Applicant Non-Ferro Gieterij B.V., Enter Recipient(s) International Casting Products D.O.O., Bugojno Start project 01 July 2006 End project 31 December 2007 Total budget EUR 670,000

Summary: De Vries Non-Ferro Gieterij B.V. produces injection moulding products. Since 1964 it produces aluminium-, brass- and plastic products. The company has production facilities in the Netherlands (Enter) and in Poland. The steadily growing labour costs in Poland urges De Vries to seek another low cost production location. De Vries considers Bosnia-Herzegovina a good option, because he expects labour costs to grow at a much slower pace than in the EU countries. The strategy of De Vries is to stabilise the activities in Poland and to open a third production facility in Bugojno, Bosnia and Herzegovina. With this facility in Bosnia he will be able to concentrate on new markets in Italy, Austria and on the Balkans. Together with a Dutch business partner, De Vries purchased a factory in Bugojno. The buildings are heavily damaged by the war. De Vries established the recipient in this project, International Casting Products D.O.O. (ICP), in 2004. ICP is a 100 percent daughter of De Vries Non-Ferro Gieterij B.V.. His Dutch business partner will assemble heat exchangers in Bugojno and will be the biggest customer of ICP. ICP will however produce for other clients as well. De Vries will produce plastic injection moulding products, as well as non-ferro. In order to start production at the facility in Bugojno, the production site must be renovated and production equipment, such as injection moulding machines, high pressure casting machines, ovens, trimpresses and milling machines, must be installed. Results • Detailed planning for renovation of the building, obtaining permissions and training of the employees; • Renovation of the building, installation of the machines and starting up production; • International Casting Products D.O.O. fully operational and achieving sales of at least EUR 1.1 million between

July - December 2007.

74

Bosnia and Herzegovina

PSOM06/BA/05 A complete new dairy farm

Applicant Hibma Zuivel VOF, Overasselt Recipient(s) Samostalna Poljoprivredna Djelatnost D.O.O., Buzim Start project 01 July 2006 End project 01 July 2008 Total budget EUR 722,500

Summary: Geert Janssen is a dairy farmer from Overasselt. Together with the recipient, Samir Duranovic, Janssen will start a dairy farm near Bihac, in Bosnia and Herzegovina. Main strategy is expanding the business. In the Netherlands this is not possible. Buying land and milk quota and investments in environmental measures are that expensive that enlargement of his farm is not economically feasible. Janssen sees good opportunities in Bosnia and Herzegovina. The 'whole sector' is involved in this project: a dairy factory (Meggle), a feedmill (Techno Pek), a Farmers Association with seventeen individual farmers, an Agricultural Institute (Poljoprivedni Zavod in Bihac) and an agricultural school (Sana Futurum school). This is why the project will not only be beneficial to Hibma (Janssen's company) but has an impact on the dairy sector in the Bihac region as a whole. At the moment there is a lack of milk that is produced in Bosnia and Herzegovina. About 65 percent of the overall dairy consumption is imported. Imported milk is approximately 25 percent more expensive than locally produced milk. Only a quarter of the capacity of the dairies is used. That's why Meggle is very eager to purchase the, good quality, milk that will be produced at the new farm. Bosnia has a very good milk price of about EUR 0.40 per litre. In the project a 120-cows dairy farm will be built. In total 400 hectare of arable land is available. Of course ,Janssen does not need all that for his own farm. The remainder of roughage will be sold to the feedmill. In the spin-off phase the farm will be extended with a stable for another 120 cows. Results • Establishing a joint venture between Hibma Zuivel VOF and Samostalna Poljoprivredna Djelatnost; • Building the stables, purchasing agricultural machinery and training farm personnel; • Delivery of 120 cows and setting up a farmers association and training farm personnel; • Joint venture fully operational and producing at least 960,000 litres of milk.

75

Bosnia and Herzegovina

PSOM06/BA/22 The setting up of a swimming pool production facility in Bosnia and Herzegovina

Applicant Aqua Team B.V., Amersfoort Recipient(s) Regeneracija D.O.O., Velika Kladusa Start project 01 January 2007 End project 30 June 2008 Total budget EUR 222,500

Summary: Aqua Team was established in 2006. The company is owned by Frank de Bruijn and Tanja Zahn. De Bruijn and Zahn recognised the opportunities in outdoor leisure, especially swimming pools. Through contact with pool installers in the Netherlands they learned that the quality of pools available is inadequate. Making a pool is very labour-intensive. Therefore it is not interesting to produce pools in the Netherlands. Through contacts of Tanja Zahn (she is Croatian by origin) in former Yugoslavia, the idea was born to start building swimming pools in Velika Kladusa, in Bosnia-Herzegovina. Recipient Regeneracija is partly (33 percent) owned by a producer of plastic waste water treatment systems in Slovenia. The Bosnian owner is Edin Miljkovic. The Miljkovic family business has been active in plastic injection moulding for many years. This project is an opportunity for the recipient to diversify from the existing product range. Sales will initially be concentrated in the Benelux. Because of existing contacts and limited production in the first two years, selling the pools will not be a problem. At a later stage the local market (mainly Croatia) will also be explored. The partners have rented an industrial building. In order to start production this building must be renovated. The following hardware must be installed: two moulds, an acclimatisation room, ventilation equipment, gel coating equipment and some transportation devices. Results • Set up a joint venture between AquaTeam B.V. and Regenracija D.O.O.; • Renovating the building and installing the hardware; • Realisation of internal and external transport; • Installing of second mould, training of staff and marketing.

76

Bosnia and Herzegovina

PSOM06/BA/23 Production of Bio-Fuel from wood waste

Applicant Comitas International Consulting B.V., Den Dolder Recipient(s) CB Consulting Company D.O.O., Zenica Start project 01 January 2007 End project 31 December 2007 Total budget EUR 747,250

Summary: The wood sector traditionally plays a key role in the Bosnian economy. Saw mills and wood processing companies produce a lot of wood waste. Some of this waste is used as fuel for drying kilns. Most of the waste, however, is not used; it is either dumped or burned. This project focuses on using this waste as biofuel. The wood waste will be processed into briquettes and sold to electricity companies in Western Europe. Applicant Comitas is a small company that supports the development of turn-key business initiatives in Bosnia-Herzegovina. Comitas will be a 31 percent share holder in the new joint venture. Recipient CB Consulting Company is active in many fields. Bio-energy and wood waste form its core business. The company acts as the local agent for two companies that sell wood waste processing machines. CB will be a 20 percent shareholder in the joint venture. Strategic partner Evelop is one of the largest developers of biomass projects in the Netherlands. The company is part of Econcern. Evelop is planning to build a new power station in Delfzijl. For this new factory it needs a lot of biofuel. Evelop is therefore very interested in this project. It will be a 49 percent shareholder and has signed a contract with the joint venture to buy the complete production in the first five years. The production line will have a capacity of 25,000 tonne of briquettes a year. After the project is concluded the joint venture partners are planning to extend the capacity to 100,000 tonne a year. Results • Set up a joint venture between Comitas (31 percent), CB Consulting Company (20 percent) and Evelop (49 percent); • Hardware delivered and installed; • Joint venture fully operational with a production of at least 10,000 tonne in the last six months of the project.

77

Bosnia and Herzegovina

PSOM06/BA/25 Euro Development of Milk by-products in Bosnia and Herzegovina

Applicant Euro Food & Feed Ingredients B.V., Geleen Recipient(s) Atlas Trading D.O.O Start project 01 January 2007 End project 31 December 2008 Total budget EUR 584,750

Summary: Euro Food & Feed is a producer and trader of dried milk products. The company does not have its own production facility. The drying, mixing and packaging is done in several factories in the Netherlands, Belgium and Germany. The company sells the end product all over the world. The main clients are in the food industry, mainly confectionery. In Bosnia and former Yugoslavia, Euro Food & Feed sells its products through Atlas Trading D.O.O. Atlas is a trader of ingredients for the food industry. Seventy percent of its turnover are goods from the Netherlands. Atlas Trading and Euro Food & Feed have been working together for many years. In this project the two partners wish to set up local production. This means that part of the production that Euro Food has done by contractors in the Netherlands (or Belgium or Germany) will be transferred to Sarajevo. Initially, this means mixing and packaging of milk powder. The two partners are mainly interested in whey powder. Whey is a residual product of cheese making. In most countries, also in former Yugoslavia, this is considered a waste product and it is discarded. In this project, the consortium wishes to start collecting whey from local dairies. Initially, this whey will be dried in a factory in Croatia. In the spin-off phase, the partners are planning to build their own drying facility in Sarajevo. To guarantee the supply of good quality milk and whey of sufficient quantity, an important part of the project will consist of technical assistance. This means training dairy farmers and milk processors. As far as hardware is concerned, the following equipment will be delivered: de-bagging and mixing unit, filling unit, metal detection, laboratory equipment and transport equipment. Results • Establishment of a joint venture between Euro Food & Feed and Atlas Trading; • Renovating the building and training local farmers and dairies; • Shipping and installing equipment; • Starting-up production and implementing ISO and HACCP; • Fully operational joint venture with a minimum production of 1,550 tonne.

78

Bulgaria

PSOM6/BG/2/2 Upgrade Electronic Manufacturing Service (EMS)

Applicant Rommens Instrumenten- en Apparatenbouw B.V., Bergen op Zoom Recipient(s) Security Smart Systems Ltd (SMS), Vratza Start project 01 January 2007 End project 31 December 2008 Total budget EUR 416,500

Summary: Rommens is a family company and producer of printed circuit boards for mostly Dutch SME companies involved in the production of equipment for offshore, horticulture, automotive, medical and security firms. The company is not involved in mass production. All products are client-specific. SMS is a manufacturer of electronic devices and moulding products. The company is well organised, but works mainly with obsolete machines. Clients of Rommens prefer to purchase all electronic systems - small and large batches - from one supplier. For larger batches and series, Rommens faced competition from the Chinese. Therefore, the company needed to reconsider its strategic location. Together with SMS, they will establish a joint venture in Bulgaria, which will be the first Bulgarian company to produce printed circuit boards that are both lead free and produced in accordance with IPC standards. The joint venture will focus mainly on larger batches and series, while Rommens will continue to produce smaller tailor-made batches. Through the upgrade of the Bulgarian company, Rommens is able to offer complete product solutions to its customers now and in the future (upcoming regulations are anticipated). Without investing in production abroad, the applicant cannot offer complete packages, because it cannot produce the labour-intensive products on a competitive base. Results • Joint venture established; renovation and engineering plan of the building completed; • Renovation of the building completed; new equipment installed; production line ready for commercial exploitation; • On the job training in conventional lead free production according to IPC standards; management completed; • First sales of printed circuit boards, ISO-certificate. Parallel project The PSOM project focuses on the conventional technology of producing printed circuit boards by soldering of components to the print board, using through-hole-technology. This can be done manually or with a wave soldering machine. In the parallel project, surface mounted technology will be introduced. This is a much less labour-intensive technology in which no soldering takes place, but a machine with controlled temperatures prints flat components with an adhesive paste to the print board. This project has a budget of EUR 717,000 funded by the consortium partners.

79

Bulgaria

PSOM6/BG/2/3 Production of high quality professional kitchens in Bulgaria

Applicant Renselaar Holding B.V., Nunspeet Recipient(s) Gastronorm Non Food Ltd, Blagoevgrad Start project 01 January 2007 End project 31 December 2008 Total budget EUR 717,000

Summary: Renselaar has been active in the market for commercial kitchens in the Netherlands for more than fifteen years. Since the market is very price competitive, the company explored the possibilities of producing stainless steel kitchen elements itself, instead of assembling elements bought elsewhere. Renselaar sought cooperation with Bulgarian producers and placed its first orders in 2002. It set up a subsidiary 'Gastronorm Non Food', responsible for communication with the Bulgarian producers and the transport to the Netherlands. But despite providing assistance and facilitating the producers with the purchase of equipment, the Bulgarian companies are not able to meet the required quality and delivery standards. Therefore, Renselaar has decided to set up its own production company, that will enable it to produce high-quality equipment for a competitive price and within short delivery times. Results • Joint venture established; suitable location for installation of the production line selected and bought; • New equipment installed according to EU standards; first batch of employees trained; production line ready for commercial

exploitation; • On the job training in new production techniques, CAD design drawings, HACCP, ARBO and quality management

completed; • First kitchens sold. Parallel project HRC International recruits hospitality staff in the United States and Europe from around the world. Employment trends show a drastic worldwide shortage of skilled cooks. In order to have a guaranteed supply of cooks for their existing clients, HRC has decided to establish its own Culinary Academy in cooperation with a reputable Bulgarian education institution: International College Albena. Renselaar will supply the equipment for the showroom kitchen in the college and the kitchen equipment for the lessons. Demonstration days for potential clients will be organised in the showroom kitchen of the College. In this way, Renselaar will use the Parallel project for its marketing activities. This project has a budget of EUR 717,000 funded by the consortium partners.

80

Georgia

PSOM6/GE/01 Improving operations in intercity passenger transport in Georgia

Applicant Womy Equipment Supply B.V., Spijkenisse Recipient(s) Womy Georgia Ltd, Tbilisi Start project 15 July 2006 End project 31 July 2008 Total budget EUR 470,950

Summary: The government of Georgia has recently adopted a policy to improve the quality of public transport and the urban environment, through controlled participation of private operators in metropolitan bus operations. To put this policy into practice, the market should be ready to deliver good quality buses and bus operators that are capable of and willing to maintain their buses. Womy Equipment Supply B.V., Womy Georgia Ltd and Tbilisi SJ Central Bus Terminal intend to set up a joint venture, to improve the quality of intercity public transport in two ways. Firstly, Womy Equipment Supply and its partners (including Connexxion) will demonstrate, in this pilot project, how to effectively operate intercity bus services between Tbilisi and three main destinations. Secondly, the project will include the setting up of a repair and maintenance unit, which will ensure reliable transportation. Results • Establishment of joint venture and further project preparation; • Construction of workshop; • Installation of equipment and training; • Start joint venture operations and repair and maintenance of intercity buses.

81

Georgia

PSOM06/GE/22 Establishment of "Geneplast Ltd": the leading plastic processing industry in Tbilisi/Batumi, Georgia

Applicant Promolding B.V., Rijswijk Recipient(s) Devi Ltd, Tbilisi Start project 01 January 2007 End project 31 December 2008 Total budget EUR 684,044

Summary: The mission of both DEVI Ltd and Promolding B.V. is to re-establish national mould making and major high-volume plastic production in Georgia and become the leading plastic products manufacturer in the country. There will be a focus on specified needs: packaging for agricultural products and production of high-quality plastic consumer goods. The objective of the consortium partners is to establish a sound plastic processing industry in Georgia. For Promolding, this is part of its long term strategy in which it wants to outsource substantial volumes of its Dutch production to a low-wage country to secure its existence and continuity. For DEVI, it is part of its strategy to expand and serve the local markets for plastic products. Together, they will establish a mould making company. Results • Joint venture established, factory building identified, purchased and renovated; • Equipment transported, installed and working; • GENEPLAST staff trained; • Creation of new generation engineers and technicians for GENEPLAST and other companies in local production.

82

Macedonia

PSOM06/MK/21 The FrysMac Dairy Plant

Applicant Scherjon Investments B.V., Noardburgum Recipient(s) Rudine MM B.V., Skopje Start project 01 January 2007 End project 31 December 2008 Total budget EUR 719,277

Summary: The main purpose of the project is to renovate the Sandanski farm in the Delcevo region by installing modern processing equipment for the production of hard and soft cheese as well as different types of yoghurt. The project partners are Scherjon Investments B.V. in the Netherlands and Rudine MM B.V. in Macedonia. Scherjon Investments has ample experience in the dairy industry and develops tailor-made equipment and systems that are suitable for small and medium scale dairy plants. In general, Scherjon Investments supplies equipment in combination with technical assistance to assure sound implementation, and participates financially in small and medium size processing companies worldwide. Rudine MM is mainly active in the distribution of well-known imported brands of food and non-food. In early 2006, Rudine acquired the former Sandanski state farm, with the aim of renovating and restructuring its production and processing in order to replace imported food by domestic food brands, to produce for export and to contribute to the development of the region. The milk will be supplied by farmers in the Delcevo region. They will acquire a reliable outlet for their milk through a new collection system and fair prices in combination with technical support. The dairy products will be distributed via Rudine's network. The dairy plant will have an annual turnover of EUR 2 million at full capacity (after two years) and provide immediate work for 12-15 persons. Another 100 jobs will be created during the implementation period. Results • Establishment of joint venture; • Establishment of the processing plant; • Core-staff employed and initial staff training completed; • Marketing and distribution plan formulated; • Milk collection and start of operations and 6-8 MCC established; • Commercial operation of processing plant; raw milk intake of 3,000,000 litres, cheese and yoghurt production, revised

business plan.

83

Macedonia

PSOM06/MK/23 Production, processing and export of PURE frozen fruit from Macedonia

Applicant Banimex International B.V., Uithoorn Recipient(s) Banimeks Dooel, Skopje Start project 01 January 2007 End project 31 December 2008 Total budget EUR 580,500

Summary: Banimex International B.V. is an export company specialised in the export of frozen soft fruits from the Western Balkan region. It wishes to set up a new processing plant near Skopje, where fruits are processed and packed for export ready for consumption under the brand name PURE. The packed fruits comply with the highest quality and food safety standards and will be sold to the industrial, retail and restaurant market in Western Europe and the USA. PURE anticipates a rapidly growing demand for healthy, safe and convenient food and provides interesting profit margins to supermarkets. At the end of the project, a production capacity of 80-100 tonne of PURE frozen fruit/month is expected and approximately 90 permanent and 400-500 seasonal jobs will be created. Results • The joint venture named PURE MK has been established; • The new processing plant for PURE MK has been constructed, the production line has been installed and a trial run has

been made; • The production by suppliers/producers of raw materials and the processing chain at PURE MK has been organised,

optimised and is operational based on Western European and US quality standards and market demands; • Dissemination of project results and the follow-up phase has been prepared.

84

Macedonia

PSOM06/MK/24 Production line for wire products with high productivity and quality

Applicant WPI Systems B.V., The Hague Recipient(s) Brako D.O.O. (Ltd), Veles Start project 01 January 2007 End project 30 May 2008 Total budget EUR 725,200

Summary: WPI systems is a medium-size manufacturer of packaging equipment for metal products. Brako D.O.O. is the largest producer of wire products and specifically common wire nails in the Balkan region. Both companies achieve a large part of their turnover through export activities and intend to become market leaders in the production of top quality nail products in south-east Europe as a result of this project. The main objective of the project proposal is to install machinery/hardware to create a high productivity line for the production and packaging of collated nails and wire netting products. Modern and compact packaging of nails and wire netting products considerably reduces the volume of products and therefore the transportation costs. This allows improved marketing of products due to lower cost prices. In the spin-off phase, the project partners are interested in the development of the production of smaller nails, the production and packaging of concrete fibre, used for cement coating and asphalt production, and the production and packaging of welding wire. A follow-up investment of EUR 240,000 has been budgeted for the spin-off phase. The project will create immediate employment for 30 persons and another twelve jobs in the spin-off phase. Results • Registration of the joint venture company; • Adaptation/reconstruction of the production hall; • Installation and start-up of the production line and training personnel; • Commercial exploitation of the production line.

85

Moldova

PSOM06/MD/02 Production facility for the production of ‘rattle and squeeze’ products for the automotive industry

Applicant Masterfoam B.V., Ootmarsum Recipient(s) Masterfoam Moldova SRL, Chisinau Start project 01 July 2006 End project 31 December 2007 Total budget EUR 250,000

Summary: The three partners Masterfoam, Izocar and Carcoustics intend to set up a joint venture in Moldova, to concentrate the European production of low-end ‘rattle and squeeze’ foam products. Masterfoam is a supplier of foam products to the automotive industry and will be the partner responsible for managing and supervising the joint venture. Carcoustics is a high-end producer of parts for car acoustics and is outsourcing its foam parts to Masterfoam to an ever-growing extent. Both Masterfoam and Carcoustics have a big interest in realising a supplier-point in Eastern Europe. Firstly, this will give Masterfoam access to low-cost production facilities so they can supply clients like Carcoustics with high quality/low cost products. At the same time, it will enable Masterfoam to grow substantially in Ootmarsum (NL) by concentrating on complex products. Apart from this, it will provide Masterfoam with entrance to the booming automotive industry in Eastern Europe. In its turn, via Masterfoam, Carcoustics will secure its supply of low-end parts at highly competitive prices via Masterfoam. Lastly, the project provides Izocar with the opportunity to build, increase and professionalize its production of foam parts. The goal of the project is the realisation of a production facility for rattle and squeeze products for the automotive industry. Customers are located throughout Europe. In order to compete in the international automotive industry the production facility will have to meet the highest quality standards. This requires considerable training and qualification efforts from the three parties. Results • Establishment of joint venture, organisation and staffing; • Building preparations and hard machines; • Training and qualifications; • Quality assurance.

86

Moldova

PSOM06/MD/21 Production of monorail conveyor systems in Moldova

Applicant Railtechniek Van Herwijnen B.V., Tiel Recipient(s) Railtechnique SRL, Chisinau Start project 01 January 2007 End project 30 September 2008 Total budget EUR 445,605 (50 percent) funded by Ministry of Foreign Affairs/Development Cooperation

Summary: Railtechniek van Herwijnen would like to set up a production unit in Moldova to expand its activities and benefit from low wages for the production of its conveyor systems. From this location, the West European market as well as the developing regional market (local market as well as Ukraine and Romania) will be served. Railtechniek van Herwijnen will produce soft products, developed by the Engineering Department (designs and drawings), and parts for the monorail conveyor systems, including trolleys, curves, switches and drop sections. Results • Establishment of Engineering Department; • Factory ready for production; • Commercial exploitation of the Moldovan company.

87

Romania

PSOM6/RM/1/3 Development of a strawberry supply chain

Applicant Goossens Flevoplant B.V., Ens Recipient(s) NEDARCO SRL, Bucharest Start project 01 January 2007 End project 30 September 2008 Total budget EUR 683,014

Summary: Goossens Flevoplant B.V. is a production and marketing organisation for strawberry plants. Together with Nedarco, it will set up a production, marketing and distribution organisation for fresh strawberries in Comuna Valea Argovei, Romania. The strawberries will partly be produced on Nedarco’s own farm (greenhouse) and partly by contract growers in the area. In the PSOM project, a cold store will be installed and transport will be purchased for the distribution organisation. In addition, farm equipment for cultivation will be purchased for contract services to the contract growers. The organisation is hoping that the additional strawberry plants will facilitate continuous production from April to December. The joint venture that will be formed for these activities will also become the Goossens Flevoplant agent in Romania through which strawberry plants will be supplied to growers in Romania. In the spin-off period, the multiplication of plants will also be started. Nedarco set up a pilot for strawberry production and marketing in Romania in 2005/ 2006 using Goossens Flevoplant material. At present, there are particularly good contacts with the supermarket segment that values the quality of the strawberries supplied by Nedarco. To keep pace with the increasing demand from the organisations in that market segment, a substantial increase in production is necessary. Results • Establishment of the joint venture between the partners and obtaining the legal registration; • Facility for storage and handling of strawberries and strawberry plants operational; • Storage HACCP approved; • Contract growing organised including purchase of equipment to be used for contract services; • Sales of 1.5 million strawberry plants and production of 40 tonne of strawberries from March 2007 to September 2008. Parallel project A parallel project will provide an extension to the present Nedarco greenhouse to produce sufficient quantities of strawberries in spring and autumn. This project has a budget of EUR 691,600 funded by the consortium partners .

88

Romania

PSOM6/RM/2/3 Sofas and armchairs for a comfortable future in Romania

Applicant Class Furn B.V., Uden Recipient(s) Class Furn Romania SRL, Bihor Start project 01 July 2006 End project 30 June 2008 Total budget EUR 723,650

Summary: The Dutch Sprankel group is a wholesaler in living room and bedroom furniture. Class Furn B.V. is one of their subsidiaries. The Romanian Class Fum subsidiary has been operating for four years and produces bedroom furniture, tables and chairs. To increase production in Romania they want to set up an industrial production line for sofas and armchairs. The products are aimed at the middle segment of the market in Holland, Belgium and Germany. The design of the models produced will be developed by the specialist design department of the Sprankel group in Uden. The sofas and armchairs produced for this project will be custom made, an innovation in this market segment. Customised production makes the purchase and management of materials very complicated. For this reason an ERP/MRP software programme will be purchased to support the production process. A CNC cutting machine for the materials that cover the sofas and armchairs is necessary to achieve uniformity and appropriate quality. Many of the materials required will be purchased in Romania, so the project will have a considerable chain effect. Employment in Romania will also be stimulated. As the project will lead to an expansion in activities in the home markets of the applicant, employment in the Netherlands will also be stimulated. Results • The building of a dock shelter for the effective and efficient loading of trucks; • Implementation of ERP/MRP planning software; • Delivery and installation of modern techniques for the production of sofas and armchairs; • Technical assistance to set up the production line; • Production output of 438 units per week. Parallel project As implementation of the project requires additional production space, a new production hall will be built as a parallel investment. The hall will have an area of 2,500 m2 and will be equipped with two dock shelters for easy loading and unloading. This project has a budget of EUR 740,000 and will be funded by the consortium partners.

89

Romania

PSOM6/RM/2/11 Production of semi low-loader trailers in Romania

Applicant Koninklijke Nooteboom Trailers B.V., Wijchen Recipient(s) SC Automecanica SA, Medias Start project 01 January 2007 End project 30 June 2008 Total budget EUR 465,000

Summary: Koninklijke Nooteboom Trailers B.V. and SC Automecanica SA have decided to combine their complementary expertise and resources in the establishment of a joint venture (Nooteboom Romania) in the transport sector. The overall project objective is to establish local serial production of semi low-loader trailers by bringing in state-of-the-art equipment, innovative production technologies, western company management principles, and transfer of know-how with regards to quality control and safety standards. The applicant, Koninklijke Nooteboom Trailers B.V. in Wijchen, is specialised in providing transport solutions for exceptional road transport, i.e. it offers a complete package of innovative and efficient trailers and semi trailers with 20 to 1,000 tonne load capacity. The recipient, Automecanica S.A., is a 100 percent private company and located in Medias. Over the years, Automecanica has gained huge experience in the production of tank trucks and tank (semi) trailers for food and petroleum liquid transportation with a capacity varying between 600 and 15,000 litres for tank trucks, and between 20,000 and 35,000 litres for semi trailers. Results • Establishment of a joint venture between Koninklijke Nooteboom B.V. and SC Automecanica SA; • Delivery and installation of hardware and transfer of know-how; • Commercial production and exploitation. Parallel project The parallel investment project includes ISO training and certification, implementation of an ERP software production management system, installation of two port cabins and office facilities, and technical assistance. The parallel project has a budget of EUR 465,000 funded by the contractor.

90

Romania

PSOM6/RM/2/16 What a waste

Applicant Granuband B.V., Amsterdam Recipient(s) ProAuto SA, Bucharest Start project 01 January 2007 End project 31 December 2008 Total budget EUR 658,467

Summary: Granuband B.V., market leader in waste tyre recycling in The Netherlands, together with ProAuto SA, a supplier and producer of automotive parts, will establish a joint venture in order to set up the first tyre recycling facility in Romania to produce Tyre Derived Fuel (PSOM project). This product is an economical substitute for coal or heavy furnace oil, currently used in cement kilns, paper mills and power plants. TDF compares favourably with other fuel sources (heavy oil, diesel, coal) in price per Giga Joule (GJ). Beginning with the production of TDF, the joint venture intends to develop new products. The parallel project includes recovering scrap metal from TDF that can be melted and formed into new products, the processing of rubber into finer granulate which can be used in a wide variety of applications, from garden mulching to roof, garden and playground tiles, innovative asphalt applications or even new tyres. The aim of the project is to set up a-state-of-the-art tyre recycling facility in Romania, based on modern Dutch technological know-how and environmentally-friendly production techniques. Granuband B.V. in Amsterdam is one of the leading European tyre recycling companies. Each year, the company processes 25,000 tonne of tyres into TDF, steel, granulates and in-house developed products such as mulch, rubber tiles (Granuflex) and foundations for sport accommodations. ProAuto SA is based in Bucharest and has 140 employees. It is a privately-owned company, specialised in the manufacturing and trading of products for the automotive industries. The company is very interested in setting up a recycling plant for used tyres. Results • Joint venture registered; • Building renovated and hardware installed; • Employees trained, joint venture ISO 9000 certified; • Commercial production started and business developed. Parallel project In the parallel project, a joint venture will be established. SC Pro Auto Industries SA, the recipient, will invest in the parallel project and Granuband B.V. will deliver the know-how to build the processing line and to maintain the equipment. The parallel project has a budget of EUR 2,600,000 funded by SC Pro Auto Industries SA.

91

Romania

PSOM6/RM/3/1 Development of a Do It Yourself wholesales and distribution centre for Romanian retailers

Applicant Bouwmarkt Huizen B.V., Huizen Recipient(s) Concept Trading SRL, Sibiu Start project 01 July 2006 End project 30 June 2008 Total budget EUR 748,694

Summary: Bouwmarkt Huizen B.V. is an independent do-it-yourself franchise company of Praxis of Huizen. The main economic activity of Bouwmarkt Huizen B.V. is trading in building materials, kitchens, tiles, bathrooms, hand and power tools, paint, etc. In 2005, Bouwmarkt Huizen B.V. established the company Concept Trading SRL in Sibiu, Romania, together with their project partners. This company is the first do-it-yourself (DIY) distributor to retailers in Romania. The PSOM project includes not only the delivery of storage and logistics equipment (racks, forklifts, packing tables, etc.) but also that of IT software and hardware, to be installed in the wholesale and distribution centre. The project partners will also establish a new subsidiary, RomNet SRL, a premises construction, management and exploitation company, to realise the DIY Wholesales & Distribution Centre. This company will buy the land, build a wholesale and distribution centre, and rent the premises to Concept Trading SRL. Results • Parallel project completed (office and distribution centre in Sibiu); • Delivery and installation of hardware and start-up of Wholesales & Distribution Centre; • Training of employees to operate and maintain the equipment; • Know-how transfer in management and financial control; • Commercial operation and exploitation of distribution centre. Parallel project Simultaneously with the PSOM project (delivery of hardware and know-how to be used in the Do It Yourself wholesales and distribution centre for Romanian retailers), a parallel project will be executed (construction of the wholesales and distribution centre in Sibiu).

92

Romania

PSOM6/RM/3/2 Fleet Management Solutions

Applicant Cosmo Wagenparkbeheer B.V.; Lochem Recipient(s) Euro Arc Insurance Broker SRL, Bucharest Start project 18 December 2006 End project 29 February 2008 Total budget EUR 718,955

Summary: Cosmo Wagenparkbeheer B.V. is active in the operational lease of corporate vehicles, mainly vans and trucks, but also passenger cars. They have developed a full service or partial service system for their customers. As many Dutch trucking and production organisations are developing subsidiaries in Romania, they see a demand for their customer package in Romania as well. The market for operational lease - especially for vans and trucks - has not been developed in Romania, so the Cosmo joint venture business concept may be considered a first mover. The project will establish a sales and service organisation for operational lease of mainly small trucks and vans in Bucharest, both new and used. The company will be housed in a sales and service centre near Bucharest. It will be equipped for servicing all types of trucks and vans. For financing the leased vehicles, major banks have pledged their cooperation. One of the special features of Cosmo Wagenparkbeheer is the permanent monitoring of the performance and condition of the vehicle leased, which will also be introduced to the Romanian subsidiary. A network of dealers and service points will also be established in different regions of the country to provide a servicing network for customers all over the country. Results • Establishment of a joint venture and the detailed design for the headquarters; • Shipping and installation of hardware; hiring and training employees; • Operational company; sale and lease of used and new vehicles; turnover of EUR 2 million with at least 40 contracts. Parallel project A parallel project will be the building for the sales and service centre. This project has a budget of EUR 968,500 that will be funded by the consortium partners.

93

The Russian Federation

PSOM6/RF/3/1 Introduction of the DAF Logistical Concept to the Russian market

Applicant MATRIX Group B.V., Deventer Recipient(s) Matrix Agritech OOO, Moscow Start project 01 August 2006 End project 31 October 2007 Total budget EUR 750,000

Summary: The Russian market for medium sized and heavy trucks is currently dominated by Russian trucks which are unreliable, inefficient and environmentally unfriendly. Reliable, efficient and environmentally friendly Western trucks can provide the clients with a competitive advantage. DAF Trucks N.V., the Dutch manufacturer of medium sized and heavy trucks, has a relatively small market share in the Russian Federation at the moment compared to its market share in Western Europe. One reason for this situation is the absence of a pan-Russian network of high quality DAF dealerships. Matrix Group is a company that sells, services and maintains Western agricultural equipment on the Russian market. To diversify its activities on the basis of its infrastructure, the applicant approached DAF, as the latter was barely present on the Russian market. Matrix has now agreed with DAF to establish a pan-Russian network for trucks. The advantage of a dealership network over just one dealer is that this is the most efficient market approach in a large and developing country like the Russian Federation. Matrix will be able to service trucks from North to South and from East to West, which will convince potential clients to choose for the DAF/Burg/Matrix combination. Results • Inception phase; • Renovation of the buildings, delivery and installation of the equipment, and transfer of know-how; • Commercial exploitation of the sales, service and maintenance centres. Parallel project The project idea for parallel investment is exactly the same as the PSOM project, except for the project locations: Moscow M1, Stupino and Yekaterinburg. The budget is EUR 825,000 and that will be put up by the consortium partners.

94

The Russian Federation

PSOM6/RF/2/3 Modern production of returnable plastic packaging

Applicant Schoeller Arca Systems B.V., Hardenberg Recipient(s) Schoeller Arca Systems Z.A.O., St Petersburg Start project 01 January 2007 End project 30 June 2008 Total budget EUR 750,000

Summary: Schoeller Arca Systems is a producer of returnable plastic crates. It produces many kinds of crates for various markets. It is a very innovative company, of which the international flagship factory is based in Hardenberg. Its Russian subsidiary produces standard crates, mainly for the bakery sector. The more advanced crates (for example foldable crates, heavy duty crates and crates with inmould labels) have to be imported when required by the Russian market. Due to high transport costs (large volumes) and tariffs, the sales prices of these crates are very high. However, the demand for these more advanced crates is increasing. For this reason, the consortium wants to engage in the local production of more advanced crates. The increasing demands are also found in markets other than the traditional (bakery) market. The Russian distribution sector is still very much in development, just as the retail sector. Many services already taken for granted in the western-European markets are still non-existent in the Russian Federation. Nevertheless, more and more companies are realising the potential of returnable packaging. The new potential clients however demand customer-made packaging solutions rather than standard crates. Consequently, the investments in equipment and moulds are rather high, while the risks are still considerable in this developing (distribution) market, which explains the need for government support. Results • Practical and administrative preparation for the production, selection of premises; • Installation of the hardware, start of the production and training; • Commercial production. Parallel project A parallel project will focus on existing and new clients in the food, beverage and retail markets, establishing a sophisticated assembling centre with packing and distribution facilities. The budget of the parallel project is equal to the budget of the PSOM project.

95

The Russian Federation

PSOM6/RF/2/5 Establishment of a factory and business for manufacturing of sandwich panel and cold storages facilities in the Russian Federation

Applicant Geerlofs Refrigeration B.V., Delft Recipient(s) O.O.O. DOMM, Moscow Oblast Start project 01 January 2007 End project 31 October 2010 Total budget EUR 750,000

Summary: Geerlofs is a leading provider of turnkey cold storages both in the Netherlands and abroad. The market for cold storage technology in the Russian Federation is vast and growing rapidly. However, there are few local producers of state-of-the-art turnkey cold storages in the Russian Federation. Most existing cold storages lack the facilities to control temperature and humidity to the extent required. Temperature-sensitive food products like apples and potatoes cannot therefore be stored under optimal conditions. Geerlofs has worked on some projects in the Russian Federation in the past. In order to remain competitive and to reach more clients in this growing market and to be able to deliver high-quality service and maintenance locally, Geerlofs has decided to launch its own production facility in the Russian Federation. Together with a local Russian construction company – DOMM – a joint venture will be created in which both sandwich panels and the cooling and climate control systems will be manufactured for the local market. Geerlofs has already set up similar ventures in China and Kenya. Results • A joint venture between DOMM and Geerlofs will be set up in Kolomna, Moscow Oblast; • A production facility for insulating sandwich panels and an assembly line for cooling equipment and climate control units will

be set up; • Local staff will be trained in production and sales; • Pilot production of 5,000 m2 fully equipped cold storage; • Updated business plan. Parallel project Geerlofs will provide a turnkey cold storage facility for 4,000 tonne of potatoes (60 x 20 metre) for a grower in the Lipetsk district. This grower is one of the suppliers of Frito-Lay chips. For Geerlofs, this storage will serve as a showcase for the local market. This project has a budget of EUR 750,000 funded by Geerlofs, Frito-Lay and the potato grower.

96

The Russian Federation

PSOM6/RF/2/6 Establishment of a chain of shops for shoe repair and related services and products, so-called multishops

Applicant Jos America Machines B.V., Vlijmen Recipient(s) O.O.O. Nemetskaya Marka, St Petersburg Start project 01 January 2007 End project 01 January 2009 Total budget EUR 594,000

Summary: Jos America Machines B.V. produces high-quality equipment for shoe repairs. Through the years, the company has built up a thorough knowledge of how to develop and run a successful concept of shoe repair shops. The shoe repair activities can be combined with various other small services like the duplication of keys, engraving and repair of watches. The concept behind the shops is so vital for the viability of the shoe repair activities that Jos America Machines B.V. participated in the establishment of a chain of shops in Poland in the nineties. Now, the company sees the opportunity to participate in a chain of shops in the Russian Federation. Therefore, they needed a local partner who has experience in running a chain of service shops and believes in a modern marketing concept. Jos America Machines B.V. has found a suitable partner in O.O.O. Nemetskaya Marka, which operates a chain of dry cleaners. Results • Establishment of a joint venture; • Creation of a pilot shop and arranging suitable locations for three multi shops; • Delivery of the equipment and training; • Realization of turnover. Parallel project A parallel project will establish more multi-shops.

97

The Russian Federation

PSOM6/RF/3/1 Introduction of the DAF Logistical Concept to the Russian market

Applicant MATRIX Group B.V., Deventer Recipient(s) Matrix Agritech OOO, Moscow Start project 01 August 2006 End project 31 October 2007 Total budget EUR 750,000

Summary: The Russian market for medium sized and heavy trucks is currently dominated by Russian trucks which are unreliable, inefficient and environmentally unfriendly. Reliable, efficient and environmentally friendly Western trucks can provide the clients with a competitive advantage. DAF Trucks N.V., the Dutch manufacturer of medium sized and heavy trucks, has a relatively small market share in the Russian Federation at the moment compared to its market share in Western Europe. One reason for this situation is the absence of a pan-Russian network of high quality DAF dealerships. Matrix Group is a company that sells, services and maintains Western agricultural equipment on the Russian market. To diversify its activities on the basis of its infrastructure, the applicant approached DAF, as the latter was barely present on the Russian market. Matrix has now agreed with DAF to establish a pan-Russian network for trucks. The advantage of a dealership network over just one dealer is that this is the most efficient market approach in a large and developing country like the Russian Federation. Matrix will be able to service trucks from North to South and from East to West, which will convince potential clients to choose for the DAF/Burg/Matrix combination. Results • Inception phase; • Renovation of the buildings, delivery and installation of the equipment, and transfer of know-how; • Commercial exploitation of the sales, service and maintenance centres. Parallel project The project idea for parallel investment is exactly the same as the PSOM project, except for the project locations: Moscow M1, Stupino and Yekaterinburg. The budget is EUR 825,000 and that will be put up by the consortium partners.

98

Serbia and Montenegro

PSOM6/SB/1/1 Upgrading and expanding the pet food production and sales at Premil Serbia and Montenegro

Applicant Dutch Pet Products B.V., Horst Recipient(s) Premil D.O.O., Snederevo Start project 01 July 2006 End project 31 December 2007 Total budget EUR 634,000

Summary: Dutch Pet Products (DPP) started as a small player in fish food and care products in 1996. Since 2001 the company’s product range has expanded to include pet food and care products for birds, rodents, cats and dogs, as well as bait for fishermen. The company’s aim is to provide a full product range that meets the client’s requirements in terms of quality, design and packaging. DPP supplies private label products at the customer’s request. Due to high transport costs, it is not economically feasible to ship cat and dog food to the growing market in South Eastern Europe. In order to fulfil its ambition of providing a full product range for its customers, DPP therefore wants to set up production of dog, cat and bird food in the South Eastern Europe. By establishing a joint company with a local partner, DPP can ensure that its current and future customers in South Eastern Europe are supplied with all the products they need. Premil was established in 1995 and produces some 60 tonne of dog and cat food per month. In addition, Premil also sells small amounts of trout and pigeon food as well as bait for fishermen. The products are mostly sold in pet shops in Serbia. A small percentage of the production is exported to Bosnia-Herzegovina and Romania. For some time, Premil has been looking for ways to expand its production. Dutch Pet Products and the Serbian company Premil want to join forces to set up large-scale production of dog and cat food in Serbia. The joint company will have two main goals: 1. to produce high-quality cat and dog food and sell it under the established brand name ‘Premil’ in former Yugoslavia and the

surrounding countries; 2. to produce private label cat and dog food, which will be sold to DPP’s existing customers in the region and to new private

label customers. Results • The joint venture is established; • The new pet food factory is operational and the production personnel is trained; • The joint venture is HACCP-certified and a turnover of at least EUR 522.750 has been realised.

99

Serbia and Montenegro

PSOM6/SB/2/1 Establishing Rodenstaal Balkan

Applicant Roden Staal Holland B.V., Drachten Recipient(s) Rhein-Donau Yard A.D., Kladovo Start project 06 July 2006 End project 06 January 2008 Total budget EUR 750,000

Summary: The objective of the project is to establish a commercial subsidiary of Roden Staal Holland, the joint venture Roden Staal Balkan, in Kladovo. The joint venture between Roden Staal Holland and the Rhein-Donau Shipyard A.D. will become a technologically advanced, marine equipment production facility, which will produce ship sections, pontoons, large ship hatches and heavy steel constructions for the Rhein-Donau Shipyard as well as for other shipbuilding companies in surrounding countries. The joint venture will produce at competitive costs due to craftsman pooling, logistics pooling, lower transport costs and the exchange of services. Results • Establishment of a Serbian-Dutch joint venture; • The establishment of a marine equipment production facility; • New equipment installed; personnel trained; • Commercial operation and ISO-9001 certification; • The joint venture is operational according to the adjusted business plan.

100

Serbia and Montenegro

PSOM6/SB/2/2 Industrial production of frozen filled bake stable pastry products

Applicant Ruitenberg Ingredients B.V., Twello Recipient(s) Pekara Milan D.O.O., Novi Sad Start project 01 July 2006 End project 30 June 2008 Total budget EUR 750,000

Summary: The goal of the project is to set up the first industrial bakery of frozen filled bake stable pastry products in Serbia. To this end the joint venture (joint venture) between Ruitenberg Ingredients and Pekara Milan will construct a factory and install and operate a complete production line for high quality filled pastry products. The products will be sold through retail outlets and franchise outlets which have yet to be established. Staff will be trained in production technology and management, industrial bakery technology development, marketing and sales and HACCP/Quality Control. The partners will focus on the Serbian market at first and subsequently on export to surrounding countries. Results • Establishment of a joint venture between Pekara Milan and Ruitenberg Ingredients B.V. (30-70 percent); • Construction of a factory and installation as well as operation of an export quality industrial bakery production line; • Staff trained in production technology, bakery technology development and marketing and sales; • The production of frozen filled (sweet and savoury) bake stable pastry products.

101

Serbia and Montenegro

PSOM6/SB/2/4 Matching Serbian design, engineering and craftsmen capacity with Dutch shipbuilding skills

Applicant PSI Pijpleidingen B.V., Papendrecht Recipient(s) Centar za Automatizaciju i Mehatroniku D.O.O., Novi Sad Start project 01 January 2007 End project 31 December 2008 Total budget EUR 723,650

Summary: PSI B.V., a company specialising in the design, production and installation of pipeline systems, and CAM D.O.O., a company focusing on technical innovation (design and production of process automation systems, design of compressed air and hydraulic systems, design of metal constructions) intend to set up a joint venture for the design and production of pipeline systems at the Rhine-Danube Shipyard in Kladovo. Pipes will be produced in Serbia and then shipped to the Netherlands for assembly at PSI’s workplace in Papendrecht. In the long term, assembly may also take place in Kladovo. Results • Establishment of a Serbian-Dutch joint venture; • The office and production facility have been reconstructed, the equipment is operational and the design, engineering and

production personnel have been trained; • The joint venture is operating commercially and has received ISO 14001 certification.

102

Turkey

PSOM6/TR/1/1 Innovative, animal friendly poultry farm in Turkey

Applicant Zanders Poultry B.V., Oirlo Recipient(s) Aytav Aydin Tavuk Et Paz. A.Ş, Bursa Start project 01 July 2006 End project 30 June 2008 Total budget EUR 747.278

Summary: The recent outbreaks of bird flu in Turkey have been harmful to the reputation of its poultry sector. Turkey wants to become a member of the EU and in 2012 cage egg production will be banned completely in the EU. The consortium wants to establish a state-of-the-art layer farm in Turkey aimed at animal friendly production and good market value, which provides a solution for the current problems. The strategy for accomplishing this is to transfer Dutch know-how on alternative layer barn and equipment to Turkey. Both workers’ security and animal welfare will be in conformity with EU regulations. Producing barn eggs according to European standards will be an important objective. Zanders will supply hardware and technical and operational know-how, while Aytav will provide marketing knowledge, a client network and manpower to operate the farm. Results • Contract of cooperation between Zanders and Aytav; • Establishment of pilot location for the first alternative layer farm in Turkey to produce barn eggs according to EU-

regulations and KAT certification; • Recruitment and training of ten employees; • Production of 16,5 million barn-eggs in the year 2007.

103

Turkey

PSOM6/TR/1/7 Ramiro production Adana

Applicant Verdonk Kwekerijen VOF, Haarsteeg Recipient(s) Cay Ciftlik Ürünleri Sanayi Ticaret Pazarlama Ltd St., Adana Start project 01 January 2007 End project 31 December 2008 Total budget EUR 746,405

Summary: For Dutch horticultural companies, it is more and more important to be able to deliver year round. Certainty and continuity regarding top quality products are vital for buyers of fresh vegetables. Buyers have an advantage if they can deliver year round products in equal quantities and with the same quality. The production of Ramiro peppers in Turkey provides this advantage. Ramiro is a pepper variety with a unique sweet taste and is rich in vitamins C and E. In addition, the parties involved are looking for added value for their products. Development of new products for the local market, e.g. by producing combinations of the recipient’s dairy products with Ramiro sweet pepper is also planned. Results • Establishment of a joint venture; • Greenhouse and packaging hall completed; • Recruitment and training of personnel; • Production of high quality Ramiro and packaging line in production; • Business development.

104

Turkey

PSOM6/TR/2/1 Production of tailor made growing media

Applicant P. en R. Holding B.V., Wateringen Recipient(s) SMS Ersanlar Tarim Mahincilik Sanayi Ticaret Ltd, Korkuteli Start project 01 August 2006 End project 29 February 2008 Total budget EUR 680,036

Summary: The business opportunity identified by the proposed joint venture partners is a logical result of Turkey’s horticultural production development. The applicant is a leading producer of tailor-made substrates in the Netherlands. The project partners have identified Turkey for further company expansion now that new regulations have opened a window of opportunity. This project will fill the gap created by the recent ban on the use of soil fumigants such as methyl bromide (MB) by introducing mature technology from the Netherlands. Results • Establishment of business; • Establishment of production unit, working area and buildings; • Capacity building and dissemination; • Production, quality management, spin-off and certification.

105

Turkey

PSOM6/TR/2/5 Establishing an integral organic baby food processing chain in Turkey

Applicant Ariza B.V., Helmond Recipient(s) Treko Ekolojik Tarim Gida IC VE, Civril - Denizli Start project 01 July 2006 End project 01 July 2008 Total budget EUR 728,383

Summary: Ariza is a Dutch producer of organic fruit concentrates, juices, purées, natural colourings and frozen fruit for use in consumer products including baby food. A well-known Ariza product is 'diksap', which is a concentrated fruit juice. Concentrated fruit juice can be used for natural colouring, flavouring, sweetening, lemonades, juices, etc. Ariza has a factory in Turkey, called Arisu, which processes organic apples and pears in an 'open' production line. At this moment there is an increasing demand for organic soft fruit products. Ariza cannot currently deliver the amounts requested in a good quality. Ariza and Arisu do not have the required ‘closed’ production technology in operation. The aim of this project is to set up this ‘closed’ production line for the processing of organic soft fruits into organic fruit juice concentrate with baby food quality. An important aspect of the project is that the farmers in the supply chain will benefit, because their efforts in growing organic soft fruit will be reflected in a higher sales price. Furthermore, the sale of their entire harvest will be guaranteed. The implementation of this production line can be considered as a pilot project and will strongly stimulate the organic farming and processing industry. The aim of the project is to produce in compliance with BRC standards and to produce high-quality ingredients for baby food locally. The latter will be new for the Turkish market as such ingredients are currently imported. Results • Inception phase; • Set up of a closed processing production line for "soft fruits"; • Training of farmers; • Set up an integral quality management system; • Food processing of soft fruit juice concentrates and updating business plan.

106

Turkey

PSOM6/TR/2/6 Establishing a viable testing and certification business for manufacturers of gas appliances and gas related products in Turkey

Applicant GASTEC Certification B.V., Apeldoorn Recipient(s) Gazteknik Test Ve Laboratuvar Hizmetleri Ltd STI, Istanbul Start project 01 January 2007 End project 30 June 2008 Total budget EUR 493,353

Summary: As part of the preparations for possible EU membership, the Turkish government has adopted EU directives and made CE marking mandatory for the Turkish market and for producers. This means that all Turkish gas appliances must be tested and certified by a notified body for the Gas Appliances Directive, Boiler Efficiency Directive and all appliances will have to comply with the Low Voltage Directive and the Electromagnetic Compatibility Directive. Gazteknik and Gastec Certification have set up a small testing laboratory in Istanbul for the testing of basic cooking and catering equipment. Gastec Certification supplied the initial testing equipment, knowledge, training, supervision and performed certification activities. Gazteknik provided the test engineers, the premises, the required test gasses, support activities and also invested in testing equipment. Gastec Certification and Gazteknik wish to expand their business to other less basic appliances such as central heating / hot water boilers in order to become a viable business with a long-term future. Results • Joint venture and a fully equipped laboratory established and trained personnel; • Testing and certification of gas appliances and gas-related products initiated; • Testing according the Low Voltage Directive initiated; • Certification of management systems (ISO 9001) initiated; • CE surveillance according the Gas Appliances Directive and the Boiler Efficiency Directive initiated.

107

Turkey

PSOM6/TR/2/7 Production of flue gas exhaust systems in Turkey

Applicant Burgerhout B.V., Assen Recipient(s) Ant Kalip Sanayi ve Ticaret Ltd STI, Istanbul Start project 01 January 2007 End project 31 March 2008 Total budget EUR 750,000

Summary: In order to remain one of the main suppliers of the leading manufactures of heating systems and utilise the growth potential of the Turkish market, Burgerhout intends to start production of their high-quality flue gas systems in Turkey. Via local production activities, Burgerhout will be able to reduce its production costs and increase its service with respect to its main customers. Due to the increase in demand for high-quality heating systems since 2004, the Turkish manufacturer of flue gas systems, Ant Kalip, is having difficulties keeping up with the rapid product changes and need for development of high-quality products. Both Burgerhout and Ant Kalip therefore intend to start production of high-quality flue gas systems in Turkey. Since Burgerhout has no production experience and limited marketing experience in Turkey, and Ant Kalip has no experience in production of high-quality flue gas systems, both companies have decided to form a joint venture. The joint venture will focus on the production of high-quality flue gas systems for the Turkish market. Results • Establishment of the joint venture; • Renovation of the building, delivery and installation of equipment and transfer of know-how; • Operational and commercial exploitation.

108

Turkey

PSOM6/TR/2/9 Waste water treatments systems for industrial processing plants in Turkey

Applicant Redox Water Technology B.V., Winterswijk Recipient(s) Redox-Yazgan water technology Ltd, Istanbul Start project 01 January 2007 End project 01 July 2008 Total budget EUR 432,317

Summary: Redox Water Technology exports waste water treatment systems all over the world. The existing joint venture between Redox and Yazgan will produce waste water treatment systems. As Turkish legislation on waste water became effective in October 2005 in the coming years there will be a high demand for these systems. Maintenance will be provided for the customers. The project will be launched by implementing installations at the first two customers in different sectors (dairy and textile). Results • Detailed factory layout; • Production lines installed; • Production and training; • Two complete systems will be installed on sites of the first customers; • Dissemination, marketing, training and project conclusion.

109

Turkey

PSOM6/TR/2/10 Project for setting up a sales and comakership unit in Turkey for selling and marketing feed mill installations

Applicant Ottevanger Machinefabrieken B.V., Moerkapelle Recipient(s) Mega Makina A.S., Ankara Start project 01 January 2007 End project 31 December 2008 Total budget EUR 631,525

Summary: Ottevanger is a manufacturer of feed mill installations in the Netherlands and sells and markets these installations in Turkey and other countries. Competition in the production and installation of equipment for turnkey projects for the feed and grain processing industry is strong. These kinds of projects consist normally of the installation of high-tech machines and transport and storage equipment. Export of complete feed mill installations from the Netherlands has become too expensive in order to meet the competition from suppliers with lower quality and lower prices. After analysing this problem, a new strategy of market development and penetration has been devised. The solution is to assemble feed mill equipment in Turkey together with Mega Makina on the basis of imported high-tech components from Ottevanger in the Netherlands and locally produced other parts. This will result in lower prices, while the Dutch quality will remain the same. Results • Establishing the joint venture and preparing project implementation; • Installation of hardware for manufacturing feed mill equipment; • Implementation and certification of quality systems; • Manufacturing, selling and installing feed mill equipment in Turkey and the region.

110

Ukraine

PSOM6/UA/1/1 Pure line pig breeding in the Ukraine

Applicant Hypor B.V., Boxtel Recipient(s) Servolux, Kiev Start project 01 August 2006 End project 31 July 2009 Total budget EUR 684,376

Summary: Hypor B.V. is a subsidiary of Nutreco and one of the leading pig genetics companies in the world. It has breeding centres in Spain, Canada, Mexico, Poland and the Philippines. In the Netherlands the company produces boars and has an R&D centre where data concerning development effects of the different stock (such as growth indicators, size of healthy litter, amount of food needed, etc) are collected and constantly reviewed. Together with Servolux, Hypor wants to establish a joint venture to start a local pig breeding centre for the production of parent stock. Pig breeding consists of a four-step chain. One starts with great-grandparents (GGP) that are bred with the aim of emphasising one aspect of their genetic material, for example their ability to gain weight in a short period of time, the fat content of the meat, the number of healthy piglets per litter, etc. Next these great-grandparents are paired on the basis of their genetic material and produce grandparent stock. These grandparents are then again paired on the basis of their genetic material and produce parent stock. Subsequently, this parent stock produces slaughter pigs. The PSOM project will aim at producing great-grandparent and grandparent stock and selling parent stock boars and sows and semen to farmers. Results • Establishment of a joint venture between the Servolux and Hypor, the Dutch applicant; • Setting up of a local breeding centre and import of pure line breeds (great grandparents); • Starting up production to locally produce parent stock; • First sales of local produced parent stock. Parallel project Within the parallel project a modern pig farm will be set up for the production of slaughter pigs. Investment will be made in a modern animal house and equipment and in the purchase of parent stock sows and boars. The budget for this project is EUR 685,000 and it will be funded by the consortium partners.

111

Ukraine

PSOM6/UA/1/4 Second generation pig industry Ukraine

Applicant Theeuwes Holding B.V., Tilburg Recipient(s) CehaVe Korm, Kiev Start project 01 January 2007 End project 31 December 2008 Total budget EUR 718,500

Summary: The objective of this project is to set up and run a concentrate and premix production company in Gaysin. The produced concentrates and premixes will be sold in Ukraine through Cehave Korm. At the moment, Cehave Korm promotes and sells products from Cehave Landbouwbelang, such as PreStarters, concentrates and premixes in Ukraine, to small and large SME pig farms. Within the project, Cehave Korm will focus on the new generation pig farmers: medium-sized pig farms, with around 5,000 to 15,000 pigs. By producing in Ukraine, and thereby eliminating import taxes and transportation costs, the ultimate price of concentrates and premixes will become much cheaper, without making concessions to quality. In addition to quality, Cehave Korm is noted for its extensive transfer of knowledge and training. Results • Detailed design of the factory; • Site is prepared, including applying for licenses and purchase of machines; • Installation of machines; • Start up of production; • Sales and marketing focussed on second generation pig farmers. Parallel project Within the parallel project, partners will invest in machinery to produce PreStarters (= complete feed for young animals) in the new production facility in Gaysin. By adding this extra, independent production step, all three product groups (premixes, concentrates and PreStarters) can be produced in the same factory. This project has a budget of EUR 767,000 funded by the consortium partners.

112

Ukraine

PSOM6/UA/2/6 Founding a Clinical Research Organisation (CRO) in Kiev (Pilipovichi)

Applicant Beaphar B.V., Raalte Recipient(s) Vetmedimpex Ltd, Kiev Start project 01 January 2007 End project 31 December 2008 Total budget EUR 619,901

Summary: The applicant, Beaphar, is a company developing and selling antiparasitic products for pets. In the development phase of new products, clinical research is one of the requirements before new products may be registered. The aim of the project is to set up a Clinical Research Organisation (CRO) so that Beaphar has easy access to clinical research and can develop new products quicker and at lower cost. The CRO will focus on researching parasitical veterinary products for pets, like flea collars, helmint (worms) drops, etc. In the final stage of the development of new products for treatment against ticks, fleas or helmints, the registration of products is a legal obligation. The aim of the CRO is to specialise in clinical parasitologic tests. Within the project, two laboratories will be set up. One will be a parasitological laboratory, focusing on breeding ticks, fleas and helmints, studying their developments and trying to breed virus-free ticks and fleas, as these provide better test results. In addition, a pharmacokinetic laboratory will be set up which will focus on surveying the results of the products on the animal. There will be cages and rooms for 180 animals. However, the revenue forecast is based on the use of 90 animals, as they also do need a rest period. Results • Establishment of a joint venture; • Establishment of a parasitological laboratory for the breeding of fleas, ticks and helmints (worms); • Establishment of a pharmacokinetic laboratory for the analysis of distribution profiles of active ingredients in blood plasma

and/or tissue; • Introduction of the required quality systems (good clinical practice for conducting clinical trials relating to veterinary

medicinal products in accordance with EU regulations and the OECD principle of good laboratory practice). Parallel project The parallel project will be the construction of a complete new building for the animal cages, but will also include rooms for both the laboratory and offices. It will be financed in full by means of a loan from Beaphar to the joint venture.

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Latin

America

114

Bolivia

PSOM06/BO/01 Establishing a chrysanthemum cuttings production site in Bolivia

Applicant Dekker Management Beheer B.V., Hensbroek Recipient DDW De Bolivia Ltda, Santa Cruz Start project 01 July 2006 End project 01 February 2008 Total budget EUR 822,463

Summary: The applicant Dekker Management Beheer B.V. and its daughter company Dekker Chrysanten B.V. is a large chrysanthemum breeder and propagator company group, based in Hensbroek in the Netherlands, with joint ventures in Tanzania and Brazil. The joint venture in Brazil, Dekker - De Wit Agri-Floricultura Ltda. (DDW), was founded in 1993 and is producing unrooted cuttings for Dekker Chrysanten B.V. in the Netherlands and in addition for the Brazilian market. Because of the increase in wages, production costs are rising in Brazil. In the near future, the propagation of cuttings will no longer be feasible in Brazil. In the meantime, the domestic market for chrysanthemums in Brazil is growing rapidly, 3 - 5 percent per year. These two developments force Dekker to reorientate on its activities in Latin America, leading to the following business opportunity: transferring the current propagation of cuttings to a new production site in Bolivia, while changing the focus in Brazil on exclusively distributing unrooted cuttings for the local market. For this purpose, DDW started the local company DDW De Bolivia Ltda and during the inception phase another Bolivian partner will join the joint venture. The pilot project of 2 hectare greenhouses will be located in the valleys of Santa Cruz department, generating employment for 115 people during the pilot. The project will grow exponentially in the 3-5 years after the project, enabling DDW in Brazil to have a strong market share. For the Brazilian market it will have the advantage that good quality cuttings can be supplied for lower prices, making it attractive for local growers to produce new varieties of chrysanthemums flowers for the Brazilian and regional markets. Results • Establishment of a joint venture between Dekker, a local Bolivian partner and Dekker - De Wit Bolivia; • Realisation of four fully equipped greenhouses (2 hectare); • Hiring and training of approximately 115 qualified employees; • Pilot production of 26 million cuttings; • Fully operational production site.

115

Colombia

PSOM06/CO/01 Manufacture of cut flower care products and provision of associated services for post-harvest quality chain

Applicant Enhold B.V., Naarden Recipient Pokon & Chrysal Colombia S.A., Bogota Start project 01 July 2006 End project 30 June 2008 Total budget EUR 1,436,795

Summary: The applicant, Enhold B.V., is the holding company of the Pokon & Chrysal group (P&C), one of the leading manufacturers of flower care products, with its headoffice and main manufacturing plant located in Naarden. With 220 employees and a sales organisation covering 50 countries, as well as (small) production units in Poland and Japan, the group had a consolidated turnover of EUR 48.4 million, with a net profit of EUR 1.4 million in 2004. Total cashflow amounts to roughly EUR 4 million per year. In Colombia P&C currently has a market share of 20-25 percent and sells its Dutch-made products through BAM SA., a local distributor of agrochemicals for the floriculture sector, who will become a strategic partner in the project. Colombia is the worlds' second largest exporter of cut flowers, the USA being the main destination with roughly 80 percent of the Colombian export volume. Following developments in the UK and other European countries, large retail chains in the USA are tightening their quality demands of cut flowers in terms of appearance and vase life. In order to supply this premium market, growers, bouquet makers and exporters in Colombia (and Ecuador) must therefore apply post-harvest care products to ensure consistent quality at final customer level. P&C offers a post-harvest quality chain concept, based on its lines of pre-treatment, conditioning and nutrition products. The purpose of the project is to establish a facility in Colombia to produce the Chrysal flower care line for the floriculture sector and to provide technical services to growers, bouquet makers, transporters, exporters, etc. Production of P&C’s products in Colombia will avoid high volumes of transport (water!) and import duties, reducing the cost for the Colombian cut flower industry, and increasing the competitiveness of the P&C brand. The project will assist the Colombian floriculture sector to raise to a higher level of quality, which will keep the sector competitive while meeting the increasingly stringent quality demands from large retail chains in the main export markets. At the same time, P&C will have a solid basis for increasing its business in Latin America. For the implementation of the project P&C created a subsidiary in Colombia, which will be the formal recipient for PSOM. Results • Business foundation and inception; • Production plant established for liquid and solid flower care products; • Quality control and advisory services established; • Business development and project completion.

116

Colombia

PSOM06/CO/21 Promotion of Zantedeschia and strengthening of Alstroemeria cultivation in Colombia

Applicant Könst Holding B.V., Nieuwveen Recipient Flores la Serena Ltda, Bogota Partner Advance Consulting VOF, Haarlem, Flores la Conchita Ltda, Bogota Start project 15 November 2006 End project 31 December 2008 Total budget EUR 1,400,658

Summary: The applicant, Könst Holding B.V. from Nieuwveen, the Netherlands, specialises in the breeding, selection, propagation and cultivation of new varieties of Alstroemeria and, more recently Zantedeschia cut flowers. The recipient, Flores la Serena Ltda, was established very recently in 2006, as a wholly-owned subsidiary of Könst B.V. The local project partner, Flores la Conchita Ltda, grows roses, Alstroemeria, Limonium and Hortensia on 40 hectare of land near Bogotá. The company also trades cut flowers purchased from other local growers and exports them to the USA, Canada, Europe and the Middle East. It also sells flowers to the domestic market through supermarket chains and ten of its own selling points. For Könst to stay ahead of competitors who are also supplying to this growing market from abroad, it must become more closely involved in Colombia. The cost of selection and propagation in the Netherlands is becoming too high in the case of certain Alstroemeria varieties. Moreover, Könst recently acquired new lines of Zantedeschia, which are not yet grown on a commercial scale in Colombia but for which there appears to be a good market for cut flower exports to the USA and, during the European off-season, to the EU as well. Through its wholly-owned subsidiary, Flores la Serena, Könst plans to initiate the breeding, selection and propagation of its new line of Zantedeschia varieties in Colombia. In a joint venture with Flores la Conchita, Könst will set up a demonstration farm for the insect-free cut flower production of new Alstroemeria and Zantedeschia varieties, as a way of supporting the market introduction of these new varieties and convincing local growers of the benefits of new varieties in combination with improved cultivation technology (virus-free greenhouses, higher productivity, lower pesticide utilisation). The project will include hardware in order to set up a small tissue culture laboratory for in-vitro multiplication of new varieties, insect-free greenhouses for 1. selection and (traditional) propagation of Alstroemeria, 2. breeding and selection of Zantedeschia, 3. raising of tissue plants to young plants for cut flower and pot plant growers and 4. demonstration of improved cultivation and new variety cut flowers pack house, cold store, office, canteen and sanitary

facilities. The spin-off of this project in the first two years after completion consists: follow-up investment by Könst through Flores la Serena in order to expand the tissue lab and double the number of greenhouses for propagation (USD 350,000); follow-up investment by Könst and Flores la Conchita, through their joint venture, in order to upscale cut flower production from 2.5 hectare to 9 hectare, requiring greenhouses, cold stores, equipment, pack house and additional facilities (estimated at USD 900,000); an increase in turnover of USD 1.5 million for Flores la Serena and USD 1.4 million for Flores la Conchita; direct employment for 88 persons at Flores la Serena and the joint venture. Results • Business founded and joint venture established; • Selection of greenhouse; • Propagation laboratory and virus-free breeding/propagation greenhouse established; • Alstroemeria and Zantedeschia virus-free cultivation greenhouse established; • Business development.

117

Colombia

PSOM06/CO/22 Chilli paste and chilli sauce factory

Applicant Go-Tan Beheer B.V., Kesteren Recipient Hugo Restrepo Y Cia S.A.C.I, Yumbo Start project 20 November 2006 End project 31 January 2009 Total budget EUR 1,091,770

Summary: The applicant, Go-Tan B.V. in Kesteren, Holland, is a company that produces several sauces, ingredients and snacks/meals for Asian cuisine. One of these products is chilli paste, the main ingredient of chilli sauce. The recipient, Hugo Restrepo S.A.C.I. in Cali, Colombia (HR), has been involved in controlled farming and grinding of peppers since 1979. Hugo Restrepo has supplied pepper mash to Go-Tan since 1997. Go-Tan has always bought fresh red peppers for producing chilli paste from Hungary, Thailand and Italy. The main problems have been: there is only one big harvest per year (September in Hungary and Italy, and October/November in Thailand), leading to high intermediate stocks and also a major risk if a harvest has quality problems affecting the final product. A single harvest a year means that traceability is also not possible in accordance with the European Food Laws, and there are consequently large storage buffers. While HR was supplying fermented pepper mash, it discovered a few advantages to farming and grinding peppers in Columbia: 1. Year-round harvest. 2. Larger range of pepper varieties (Habanera, Serrano, Cayenne, Jalapeño). 3. Traceabillity to the farm. 4. Controlled farming. 5. Possibility of training workers. 6. No use of unknown herbicides and insecticides, which are all controlled. 7. Possibility of producing chilli products. 8. The fact that Colombia produces cane sugar in the same valley where HR is located. In combination with high quality red peppers, these advantages mean great opportunities to produce different types of chilli sauces. The project partners therefore decided to establish a production and bottling plant in Colombia, using fresh peppers all year around. The peppers and other ingredients will be pasteurised, a new feature. After the cooking process, the sauces will be filled in buckets, plastic bottles, glass bottles and jars. Go-Tan will transfer knowledge about processing, provide the necessary equipment and train the employees. The main advantages will be: a better quality of chilli paste and chilli sauce because they are made from fresh peppers (fresh taste, better colour); full traceability according to EurepGAP; lower production costs due to lower wages and lower sugar prices (no EU duties). This type of processing was previously unknown in Columbia for chilli paste and chilli sauce. Traditionally, peppers are simply processed by grinding and adding salt to produce fermented pepper mash. The project will be implemented at the existing facilities of Hugo Restrepo in Yumbo, Valle del Cauca (near Cali), Colombia. A 50/50 joint venture will be set up, and investments will be made in pasteurising/cooking units, as well as a modern production filling line. This will result in lower production costs than in Europe, while maintaining the same food safety standards. The final product will have a better quality and taste owing to the use of fresh ingredients. The complete production facility will be certified for HACCP, BRC and the pepper farming practices will be certified according to EurepGAP. For quality control, a laboratory will be built and equipment installed for the analysis of capsaicin and for detection of colouring agents (Sudan Red). Employees will be trained to work according to certification rules, and to operate/service the modern automatic filling machines. The aim is to produce chilli paste and different types of chilli sauce (based on red peppers obtained by controlled farming), not only for Go-Tan but also for other A-brands and own brands of retailers.

118

Results • Joint venture established; • Processing building finalised and production equipment installed; • Outgrowers scheme operational; • Recruitment and training of employees; • Business development.

119

Peru

PSOM06/PE/21 Building up a producer-owned quality supply channel for organic fair trade bananas in northern Peru

Applicant AgroFair Europe B.V., Barendrecht Recipient Biorganika S.A.C., Piura Partner Solidaridad, Utrecht, Asociacion de Productores de Banano Organico Valle del Chira, Sullana Start project 01 January 2007 End project 31 December 2008 Total budget EUR 1,183,888

Summary: The applicant, AgroFair Europe B.V., markets its products under the Oké and Eko-Oké labels and is a pioneer in the promotion of fair trade practices in Africa and Latin America. Biorganika SAC in Sullana, Peru (recipient), packs and exports fair trade bananas. Sixty percent of its shares are in the hands of AgroFair Europe and 40 percent in the hands of Solidaridad (Peru). Solidaridad, based in Utrecht (project partner), is a foundation that develops and supports poverty reduction and fair trade initiatives, including the Max Havelaar brand, Oké bananas and Kuyichi. Asociacion de Productores de Banano Organico Valle del Chira (AVC, project partner), incorporating 199 smallholder producers, is currently the sole supplier to Biorganika. The Fair Trade system introduced by AgroFair consists of a number of interesting policies: setting of a minimum (fair) price to be paid directly to the fruit producers at all times, regardless of market conditions; payment of an additional FT (Fair Trade) premium of USD 1.00 per box, which is paid to the Cooperative, and used in projects of a social nature (schools, healthcare) or investments in collectively used equipment/infrastructure (roads, water supply); at year end, paying out a substantial share of the profit of AgroFair as a dividend directly to the fruit producers, according to the volume of fruit supplied. Through the PSOM project, Biorganika will be extended to include producer associations in its ownership and management structure. Solidaridad will relinquish its shares to producer associations, permitting each new producer association to have a ten percent stake in Biorganika. The new Biorganika will assist several producer associations to export Fair Trade organic bananas to Europe. The northern coastal area of Peru is one of the poorest areas in the country, with few economic opportunities and 60 percent of the population living below the poverty line. The dry climate of the region means that bananas can be grown organically without the major banana diseases other exporting countries have to contend with, for example the fungal disease black sigatoka, which causes production losses in other banana growing regions of the world. On the other hand, Peru's banana sector needs to come to terms with a devastating fungal disease commonly known in the region as black rot, which manifests itself during shipment and ripening and causes losses of up to 15 percent. More importantly, as the problem cannot be diagnosed at the farm or packing station, the losses are detected only at the point of delivery, when the product already has a much higher added value (handling and transport). The disease is exclusive to Peruvian bananas and is not yet fully understood. Given the organic production, the use of pesticides is prohibited, but empirical data show that its incidence can be reduced by strict quality control (hygiene) throughout the supply chain in the field. In order to minimise the handling of bananas before packing, small packing stations need to be located at close distance from the banana fields. Cooperation with a local university and partners will help to determine the most appropriate organic control measures that can minimise post-harvest fungal outbreaks of ‘black rot’. The control measures identified will assist all banana producers and exporters in Peru to reduce quality claims, and the project will eventually benefit the banana sector as a whole. Within the project, sixteen local packing stations will be upgraded and seventeen new stations will be built to EurepGAP standard. Two hundred farmers will be trained in organic, fair trade and EurepGAP principles. A logistics centre for central palletising, storage and administration, including a training facility, will be built in Sullana (50 kilometres from Piura) and a staff of ten people will be trained in quality control and EurepGAP procedures.

120

The project will pioneer the development of an integrated quality management system for FTO banana supplies, including the electronic tracking and tracing of boxes from smallholders to supermarkets. The quality claim (a penalty that is paid when black rot is detected on receipt), currently USD 0.95 per box, is expected to be reduced to USD 0.50 per box at the end of the pilot and further to USD 0.20 on the long run. Results • Change in recipient’s ownership structure, including producers’ associations; • FTO producers trained and local packing stations upgraded; • Central training, logistics and services facilities established; • New FTO producers and local packing stations established; • Integrated quality management system established and business development.

121

Surinam

PSOM06/SR/01 Establishing a private residential care centre in Surinam

Applicant Zonneburg B.V., Driebergen-Rijsenburg Recipient Elto N.V., Paramaribo Start project 01 July 2006 End project 30 June 2008 Total budget EUR 1,499,594

Summary: Applicant, Zonneburg, offers tailor-made care and care-related services to elderly people in selected residential care centres in the Netherlands and in Spain under the brand name “Royal Care Residence”. Established in 1994, Zonneburg is the first care provider approved by the Dutch government to provide services abroad. She has strategic alliances with several care providers and insurance companies. Elto N.V., founded in 1988, started as an electro, lighting and technical company and grew from wholesaler and distributor into a project engineering company and carries out turnkey projects in the field of electrical generation, transmission and distribution while also providing mechanical and industrial equipment and services. Elto is highly experienced in undertaking local and regional projects, complying with international quality standards. Zonneburg and Elto will establish a joint venture and intend to offer residential care services in Paramaribo, Surinam, mainly to elderly Surinamese persons, on a temporary basis. The health care sector in the Netherlands is not very well adapted to meet the specific cultural and spiritual needs of the aging Surinamese. Part of the elderly Surinamese persons currently residing in the Netherlands have a strong preference to return to Surinam to stay over for winter or during holidays in Surinam in the vicinity of friends, relatives, and enjoying their own culture, but are wary of the quality and state of the local health care system and facilities. The objective of the proposed PSOM project is to establish a 32-room private care centre in Surinam, offering affordable tailor-made care services to elderly Surinamese persons. The facilities, located along the riverside in the North-West of Paramaribo, will include a medical centre, a nursing home, a day care centre and accommodation adapted for elderly people. Hardware investments include the development of a purpose-made building with furniture and equipment. In addition, intensive knowledge transfer will take place in the form of a curriculum and several educational trainings offered to local people aiming to work in the sector concerned. To that end, care institute "Stichting ContinU" will bring in expertise in the field of health care training. The project partners have already agreed with the Surinam authorities that these trainings will be aimed at increasing the capacity in health care in Surinam, rather than pulling away skilled personnel from other health care providers. Results • Business foundation through establishment of a joint venture; • Residential care centre constructed with 32 apartments, and furnished for accommodation, care and treatment of elderly

Surinamese persons; • 20 Surinamese persons trained in care-related issues for tailor-made assistance and treatment to elderly people; • Surinamese persons trained in care management and administration, • Development of a viable business along with business plan for follow-up investments.

122

Surinam

PSOM06/SR/04 'Spang Makandra N.V.' - Surinam e-media development studio

Applicant Us Media Holding B.V. Recipient Cybermango N.V. Start project 01 August 2006 End project 31 March 2008 Total budget EUR 510,492

Summary: In Surinam information and communication technology (ICT) is an underdeveloped sector. The sector has not really moved forward in the last twenty years. Existing companies in this sector have come to a standstill as relative high investments in hardware and training of staff cannot be made profitable on the local market in Surinam. The market is too small to justify any real investments. Therefore in order to update and expand the sector connections with the regional market (Caribbean) and Europe are essential. The aim of the new to be established joint venture, Spang Makandra, is to become a technologically and creatively innovating full service e-media development studio located in the district Uitvlucht/Tammenga in Paramaribo. Spang Makandra will be a joint venture between Us Media Holding, The Netherlands, Stradius Strategic Brand Builders, Curaçao and Cybermango, Surinam. Stradius, with its extensive network of clients in the Caribbean will give access to the Caribbean market. Us Media will source assignments from Dutch and European clientele for Spang Makandra. Us Media, established in 1999, is a fast growing Amsterdam based e-media company, primarily serving clients in Europe. Us Media offers diversified technical and creative services for business to business (b2b) and business to consumer (b2c). Theme sites for some of the worlds best known brands (consumer goods) as well as business applications such as intra- and extranets (e.g. Tommy Hilfiger, Canon, Coca Cola and Unilever) have been made. Cybermango, established in 2001, operates as a web design and hosting company in Paramaribo. Cybermango started in internet based services and has recently expanded to services that also include multimedia productions and graphic design. Stradius Strategic Brand Builders Ltd, was founded in 2002. Stradius is a Curaçao based strategic consultant company with the ambition to open offices in the region. Stradius has expertise in brand development and its translation into brand dynamics, brand strategy, brand management and implementation. Stradius has a large marketing experience and skills in the sector and an impressive portfolio of 50 clients (mainly banks, insurance- and utility companies).The products that will be developed are websites with both dynamic and static content. The current level of web development in Surinam is very limited. The websites are static and show only basic information. It is expected that training of staff, in which the grade of difficulty will increase gradually, by experts from Us Media will take one year. The trainees will start working on basic projects after the first sessions. Us Media will source parts of their business to Spang Makandra as soon as the technical skill level has been achieved. It is essential that remote and local teams have access to well structured networks allowing quick access to shared knowledge and files - a decentralized system will be set up. The consortium aims at a workforce of fifteen people, who within two years will develop the level of knowledge which enables them to produce for the international market. Results • Establishment of joint venture, Spang Makandra; • Infrastructure established and hardware installed, six employees contracted; • Eighteen persons trained and nine employees contracted long-term; • Commercially developed and assignments conducted.

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Surinam

PSOM06/SR/21 Surinam jungle experience Berg en Dal

Applicant MCF Business Enterprises B.V., Amsterdam Zuidoost Recipient C. Kersten & Co, Paramaribo Start project 15 December 2006 End project 30 June 2008 Total budget EUR 1,458,922

Summary: Both the applicant, MCF Business Enterprises B.V., and the recipient, C. Kersten en Co. N.V. (established in 1768), are driven by the principles of the Moravian Church Foundation (Herrnhutters). This organisation has as its mission to develop profitable businesses that should have positive social and/or religious spin-off, including in developing countries. MCF Business Enterprises B.V. is a separate business company of the Moravian Church Foundation and its objective is to maximise the net result of its business activities. C. Kersten en Co. N.V. owns the Krasnapolsky Hotel in Paramaribo and is an expert in tourism management, hotels and the hospitality industry in Surinam. It also specialises in developing a wide range of projects. In order to develop the Berg en Dal project, the partners will establish a joint venture and will participate equally, both financially as well as in shares. Euroleisure, a Dutch company specialising in the development of tourism projects all over the world, has been contracted to do the overall project management. Jungle Experience Berg en Dal is an eco-tourism project offering accommodation and jungle experience features such as tented camps in the jungle, canopy walks, gold digging, trekking, canoeing, wild-walks and learning local traditions, e.g. traditional medicines and survival techniques. It will be located on a hillside near the Berg en Dal village, a two-hour drive from Paramaribo. The sustainable, environmentally friendly eco-tourism location will meet the standards of demanding national and international visitors, thus bridging the growing gap between tourism demand and supply in Surinam. C. Kersten en Co. N.V. owns the land (2,500 ha) in Berg en Dal along the Surinam River, where the project will be located. The project will construct central facilities such as a restaurant, reception and swimming pool as well as ten bungalows. The jungle experience features will be developed and the local staff will be trained. The local population will be involved in the project as much as possible and the "Stichting Plantage Berg en Dal", a platform created by the inhabitants of Berg and Dal, have given their full support to the project. Results • Joint venture established between applicant and recipient; • Technical design of project and construction of infrastructure; • Construction of project facilities; • Training and marketing.

The EVD is an agency of the Ministry of

Economic Affairs. It supports international

business and cooperation by providing

businesses and public organisations with

information on foreign markets, promot-

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support. It is also part of a large domestic

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