psom project overview 2008

PSOM

project overview first tender 2008

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Dear reader,

In 2008 the PSOM tender was open to the following countries:

Afghanistan Georgia Pakistan

Albania Ghana Palestinian Authorities

Armenia Guatemala Peru

Bangladesh Honduras Philippines

Benin India Rwanda

Bolivia Indonesia Senegal

Bosnia and Herzegovina Kenya Sierra Leone

Brazil Macedonia South Africa

Burkina Faso Madagascar Sri Lanka

Burundi Malawi Sudan

Cape Verde Mali Surinam

China Moldova Tanzania

Colombia Mongolia Thailand

Ecuador Morocco Uganda

El Salvador Mozambique Vietnam

Egypt Namibia Yemen

Ethiopia Nepal Zambia

Gambia Nicaragua

In total fifty projects could be started in Africa, Asia, Central and Eastern Europe and Latin America. In this booklet you receive

an overview of these projects. You can see what a variety exitsts between the PSOM projects and the impact the projects aim

for. I hope you will enjoy reading it as much as we enjoyed starting these projects.

Judith Arends

Manager PSOM-OS / PSI

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Africa 9

Burkina Faso 11 PSOM08/BF/01 Establishing an organic mango processing plant 11

Ethiopia 13 PSOM08/ET/01 Young tree and bushes production in Ethiopia 13 PSOM08/ET/03 Sustainable growth of Jatropha 14 PSOM08/ET/04 Tissue culture in Addis Ababa, Ethiopia 16 PSOM08/ET/05 Professional Trade Exhibitions in Ethiopia 18 PSOM08/ET/06 Developing the kitchen and bathroom sector in Ethiopia: a chain approach 20

Ghana 22 PSOM08/GH/01 Pilot project for Ghana's first Internet Data Center 22

Kenya 23 PSOM08/KE/03 Zantedeschia bulb production in Kiambu, Kenya 23 PSOM08/KE/04 Introducing Real Integrated Pest & Diseases management in the horticultural industry in Kenya 24 PSOM08/KE/05 Establishment of an accredited service laboratory for safe and sustainable agriculture in Nairobi 26

Madagascar 28 PSOM08/MG/01 Renewable Energy for Madagascar 28

Malawi 30 PSOM08/MW/02 Warehouse Receipt Systems and Options in Malawi 30

Morocco 32 PSOM08/MA/01 BioMaroC 32 PSOM08/MA/02 The production of high tech electrical equipment in Morocco 34

Mozambique 36 PSOM08/MZ/01 Adding value to sesame seed in Mozambique 36

Rwanda 38 PSOM08/RW/01 The introduction of mechanised and irrigated high yielding maize varieties 38

Senegal 40 PSOM08/SN/02 Biogas production for generation of electricity 40

South Africa 42 PSOM08/SA/02 Breeding hybrid pumpkins in South Africa 42 PSOM08/SA/03 High solid industrial coatings South Africa 44

Sudan 45 PSOM08/SD/01 Dredging to improve the drinking water supply in Sudan 45

Tanzania 47 PSOM08/TZ/01 Pilot production of Anthurium foliage and flowers for export and domestic market

Zanzibar, Tanzania 47

Uganda 48 PSOM08/UG/01 Establishing propagation of Kalanchoe in Uganda 48 PSOM08/UG/02 African Affordable Medicines Uganda 50

Zambia 52 PSOM08/ZM/01 Affordable access to quality healthcare for low-income groups 52 PSOM08/ZM/02 Seed and processed potatoes for Zambia 54

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Asia 57

Bangladesh 59 PSOM08/BD/01 Textile recycling at Narayanganj - Bangladesh 59 PSOM08/BD/02 Expanded Polystyrene (EPS) production as insulation material for the building sector 60 PSOM08/BD/03 Pilot (geo-)graphic data service providing Bangladesh 61

China 63 PSOM08/CH/01 Breeding selection and testing of new rose varieties for the Chinese market 63 PSOM08/CH/03 Production of safe and modern herbal medicinal products and food supplements 65 PSOM08/CH/06 CHINABEE 67

Philippines 68 PSOM08/PH/01 Artificial Insemination Center for high quality semen available to backyard farmers in Batangas 68 PSOM08/PH/02 Productions and distribution of solar energy systems for the remote areas in the Philippines 70

Thailand 72 PSOM08/TH/01 Innovative boat building in Chonburi Thailand 72

Vietnam 73 PSOM08/VN/01 Best practice on CSR and the introduction of FOB sustainable garments productions in Vietnam 73 PSOM08/VN/03 The Nuoc Trong Tapioca CH4 CDM Project 75

Central and Eastern Europe 77

Albania 79 PSOM08/AL/03 Red meat development in the Shkoder Region 79

Bosnia and Herzegovina 81 PSOM08/BA/02 Manufacturing plant veterinary pharmaceuticals 81 PSOM08/BA/03 Efficient vegetable production in a Fiwihex greenhouse in Bosnia and Herzegovina 83

Latin America 85

Brazil 87 PSOM08/BR/01 Creating a Sustainable cashew nut sector in the North-East of Brazil 87 PSOM08/BR/02 New products through the improved use of wood at the Rainbow Sawmill in

Santarem State of Para 89

Ecuador 91 PSOM08/EC/01 GROWING GREEN organic farm made & hand-tied bouquets 91 PSOM08/EC/02 Solar Powered, GlobalGAP certified sustainable shrimp farm 93 PSOM08/EC/03 Introduction of Precision Agriculture among smallholder producers of fair-trade and

organic bananas 95

El Salvador 97 PSOM08/SV/01 Plant pots from recycled scrap plastic in Antiguo Cuscatlán, El Salvador 97

Peru 99 PSOM08/PE/01 Natural Plant Oil Production in Ucayali 99 PSOM08/PE/02 Socially responsible confectioning of basic garments by associated microenterprises

in Arequipa 101 PSOM08/PE/03 Dairy Cow Breeding facility 103

Surinam 105 PSOM08/SR/01 Galvanized wire from Suriname 105 PSOM08/SR/04 Metakaolin production for Suriname and the Caricom 106

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Africa

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Burkina Faso

PSOM08/BF/01 Establishing an organic mango processing plant

Location Bérégadougou, Comoé Province - Région des Cascades

Sector Agro Industry

Applicant Maris International B.V., Emmeloord

Recipient Groupement des Sécheuses de Bérégadougou, Banfora

Start project 01 July 2008

End project 01 January 2010

Total budget EUR 780,948 (60 percent PSOM contribution)

Summary:

In the southern part of Burkina Faso mango's are cultivated in abundance. Part of the produce is exported as fresh fruit and part

is sold as dried mango chunks or slices. Another part is rotting beneath the trees because of extreme low prices during the peak

season. The objective of the partners in this project is to start the processing of organic mango chunks which will be bottled in

glass jars together with mango juice, which is not done on a commercial scale yet. The new processing plant will work in

accordance with European standards. The majority of the forcasted production of 3,600,000 jars per year will be exported to

Europe to be distributed to retailers and supermarket chains, mainly in Germany.

Partners in the project are Maris International B.V. and the affiliated German company AK Organic, currently the biggest organic

cotton trading company with production areas all over the world. The local partner is GSBE (Groupement des Secheuses du

Bérégadougou), actually involved in drying of mango's and export of dried Mango's to Europe. A large part of their production is

already organic and fair trade certified by European certifying institutes.

Results

• Inception phase;

• Factory and first batch of machinery installed;

• Production line completed;

• Completion of processing line.

Development effects

on knowledge transfer Apart form the general know how transfer on a daily basis there are different subjects that

will get specific attention. General training in hygiene and HACCP regulations as well as the

certifying of organic production of mangos are necessary (in addition to existing organic

production). International Food Standard certification needs to be established. A detailed

extension programme will be setup in the implementation phase.

on employment The direct employment amounts to fifty full time employees and 35 seasonal workers, during

the pilot. After the pilot direct employment will grow to 150 permanent and seventy seasonal

workers.

on impact environment The impact on the environment will be positive as organic cultivation of mango's leads to less

pesticide use. Mango trees are grown in an agro forestry pattern which is effective in the

prevention of erosion. Water used in the processing plant is going to be recycled where

necessary. The energy use is to be kept to the minimum; most energy will be required for the

heating of the autoclave. The waste produced is organic and will be reused. There are not

much chemicals involved as the whole bottling process makes use of only natural

ingredients.

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on chain Collection and transportation of the harvest is planned to be executed by local transporters.

There is locally plenty of mango production by already existing organically certified farmers.

As soon as the project starts there will be a scheme implemented that provides in the

transition of conventional mango farmers into organic farmers to secure enough produce for

a reliable supply of mango's. Farmers will have a guaranteed outlet for their mango's and

thus a steady income.

on women The impact on the position of women will be positive as the new partnership will employ

mostly women. The quality of the working condition for the women will be good, giving

advantages like a free meal for labourers at noon.

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Ethiopia

PSOM08/ET/01 Young tree and bushes production in Ethiopia

Location Sebeta area, 32 kilometres from Addis Ababa

Sector Horticulture

Applicant Tuinbouw Adviesbureau Steeghs B.V., Mierlo

Partner Kuper Green B.V., Klazienaveen

Recipient EWF-Flowers PLC, Addis Ababa


End project 30 September 2010


Summary:

Like in floriculture, in the arboriculture sector economies of scale are becoming more and more necessary to compensate the

continuous cost increase in the sector. Smaller family-owned farms in Europe tend to stop their small-scale operations, while

larger farms get bigger and invest in advanced growing techniques. As a result of specialisation, a market is created for

suppliers of young plant material to the shrub and tree growers. This market demands a more uniform quality, huge supply and

low cost prices. Further, the consumers are asking for a nearly year round supply of the garden plants. This offers an

opportunity to start a tree propagation centre in Ethiopia. Tuinbouw Adviesbureau Steeghs B.V. (Steeghs B.V.) will

Cooperate with EWF Flowers PLC for the production of cuttings and half-made products for the tree growers in Europe.

The 5 hectares tree propagation centre will be located at Sebeta, 20 kilometres from Addis Ababa. In addition, the joint venture

will train local farmers in tree growing for the local urban garden market.

Results

• Company established;

• Tree and bushes propagation facility established;

• Staff members trained;

• Production and quality management phase.

Development effects

on knowledge transfer Knowledge about arboriculture will be brought to Ethiopia by experienced growers and a

specialised propagator from the "Boskoop-region". In total eighty employees and at least

seven local entrepreneurs will be trained in arboriculture.

on employment The joint venture will create direct employment for 84 persons and indirect for ten people.

After the pilot phase 159 people will be working for the company.

on impact environment The company will qualify for MPS-ABC during the project period.

on chain Presently, nearly the only tree grown is Eucalyptus. The company will share their knowledge

and train local interested entrepreneurs to start up their own business in tree production.

Besides the knowledge transfer and on the job training, they will be supported with the left

over trees and bushes from export. Further, the company will assist a university graduate to

set up a plan for preservation and re-planting of old cultural indigenous trees, if possible with

an existing tree grower in Ethiopia.

on women The impact on women will be positive, 75 percent of the employees will be women and also

70 percent of the management will be female.

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Ethiopia

PSOM08/ET/03 Sustainable growth of Jatropha

Location Oromia Region

Sector Bio Energy

Applicant Kooy Bioflow B.V.

Recipient Mekiya Agri Mechanization Service, Addis Ababa


End project 30 June 2011


Summary:

In order to cut down CO2-emissions worldwide, the demand for bio-fuel is rising steadily. Vast areas are used for growing oil

producing crops, mostly in the (sub-)tropical parts of the world. The Ethiopian Government has assigned 23 million hectares, not

suitable for the production of food crops, for the production of several kinds of oil producing crops.

The Dutch company Kooy Bioflow B.V. and its local partner Mekiya Agri Mechanization Service PLC see great opportunities for

growing oil producing crops on these poor, almost unused soils. They will plant Jatropha C., a plant which produces a non-

edible oil, thus preventing competition with food production and taking into account the environment.

Kooy Bioflow B.V. and sister companies are already fifty years active in producing, refining, shipping and storing bio-energy for

all kinds of energy power stations in many European countries. The Mekiya family holds a group of companies in different fields

of business, such as: agricultural mechanization service, grain wholesale trade, wheat processing plant and transport

operations.

The 200 hectares bio-oil producing farm of the joint venture will be located in the Arsi Region. The Jatropha plantation will be

established according to the current sustainability criteria. As such, the project will act as a pilot project providing a good

example in Ethiopia of how bio-fuels can be produced without negative effects for the environment, biodiversity, food production

and landscape, and at the same time contribute to local prosperity. Initially, the produced Jatropha bio-fuel will be used amongst

others to power the fleet of the Mekiya companies. In the long run the bio-oil will also be exported.

Results

• Set up of joint venture;

• Land preparation;

• Jatropha plantation established;

• Bio-oil production facility established;

• Bio-oil production phase.

Development effects

on knowledge transfer People will be trained in new skills like special soil cultivation, drip irrigation and oil extraction

techniques. Also an example will be set by integrating the Jatropha within the natural

environment, combining more land uses at the same time.

on employment The joint venture will employ 115 people, including 100 fieldworkers. Two years after the

project this amount will increase to 1,000 people for the 2,000 hectares. Once the total of

50,000 hectares has been planted, 13,000 workers will be employed.

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on impact environment The impact on the environment will be positive. The joint venture will produce Jatropha oil in

a sustainable way, according to the criteria set by the Commission Cramer and those of

"Stichting Natuur en Milieu". First of all, the partners have selected a site of 50,000 hectares

which is currently not suitable for food production and therefore appointed by the Ethiopian

Government as suitable for oil seed production site.

By producing Jatropha a microclimate will be created, improving humidity in the region, but

also improving the soil conditions. Trials will be done with intercropping of food crops within

the Jatropha plantation. Use of water will be minimized by introducing drip-irrigation,

minimise loss of runoff water and evaporation. Crop residues (like the (burned) seedcake)

will be returned to the farm land for fertiliser purposes. An Environmental Impact Assessment

will be implemented.

on chain During the start-up phase the project will generate employment for at least fifty people of

local SME's, as contractors for land preparation, realisation of the irrigation system, drillings

wells, building the nursery and buildings, fences, water reservoirs. Furthermore, the project

will provide a new market by offering 600 tons of bio-fuel a year for heating, production of

electricity or transport purposes. In future, the bio-oil meant for export needs to be

transported to Djibouti, generating opportunities for local transport companies currently

returning empty to Djibouti after importing fossil fuels.

on women The impact on the position of women will be positive. From the 100 fieldworkers eighty will

be women. In addition three out of the fifteen office and support staff will be women. The

partners realise women already have a heavy daily workload and will step by step ease the

daily household chores by facilitating and supporting the women with child care, water, fuel,

medical care and transport from the villages to the fields, where needed.

Other The project will be embedded within the local community by discussing the activities with

local authorities, schools and cooperating with local authorities and NGOs to improve

sanitation, drinking water conditions, housing conditions, medical care, education, etc.

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Ethiopia

PSOM08/ET/04 Tissue culture in Addis Ababa, Ethiopia

Location Addis Ababa

Sector Horticulture

Applicant VCI Nederland B.V., Heerhugowaard

Recipient Tsega Asamere & Family International Trading PLC, Addis Ababa


End project 30 April 2010


Summary:

Tissue culture is a high tech micro-propagation technique to efficiently produce disease free and identical plants under sterile

laboratory circumstances. It is a labour intensive production method that cannot be automated. In the global agriculture and

horticulture sector, there is a strong demand for disease free and high quality planting material. There is also a very strong

demand for fast introductions of new varieties in the market. Both issues can only be accomplished by using the tissue culture

technique.

Ethiopia has an urgent need for high quality, bacteria and disease free planting material, for instance for pineapple, coffee,

banana and sugar cane. Currently the availability of high quality and disease free planting material is insufficient. As a result of

that, output of agriculture both in terms of quantity and quality is not optimal.

The combination of low labour cost and a high local demand of quality plants gives rise to the business opportunity to start the

first commercial tissue culture laboratory in Ethiopia. The Dutch company VCI Nederland B.V., specialised in tissue culture

techniques for large-scale production of plant material, bulbs and tubers, will start a joint venture with the Ethiopian company

Tsega Asamere and Family International Trading PLC (TAF). The tissue culture laboratory will be located in Addis Ababa.

During the start up and training phase the production will focuss on the production of export plants, lateron the production of

local crops will start.

Results


• Laboratory established;

• Staff members trained in the Netherlands;

• Pilot production and training in Ethiopia;

• Completion phase.

Development effects

on knowledge transfer As commercial tissue culture is new in Ethiopia, four employees of the joint venture will be

trained for one month at VCI in the Netherlands. With the assistance of VCI, they will train

the other 36 employees in the joint venture.

on employment During the project, forty jobs will be created in Ethiopia at the joint venture. Total direct

employment two years after the project will be 96, increasing to 130 people four years after

PSOM. Regarding indirect employment, two years after the project approximately 25 people

will be employed on horticulture farms, who process the local crops produced by the joint

venture.

on impact environment There are no negative effects on the environment. Indirectly, the project has a positive effect

on the environment since disease free planting material will be introduced which will lead to

higher yields and will reduce the use of pesticides.

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on chain The joint venture will adopt a chain approach. It will enter into cooperation with Ethiopian

research institutions for the purpose of tissue culture of local crops like pineapple, coffee,

banana and sugar cane. Together with these institutions, protocols and procedures will be

developed and parent material will be selected and prepared. In the future, the joint venture

will co-finance a Research Programme on tissue culture. Furthermore, the joint venture will

guide local farmers in working with tissue culture plants, which need special attention in the

beginning. Currently there are shortages of high quality parent plants, which for that reason

are imported. Investment projects are sometimes postponed, because prices of import

parent plants are too high. This project will help reduce shortages and will lead to import

substitution and supplies high quality, disease free plants, which will help increase yields of

agricultural output in Ethiopia.

on women The impact on women will be positive, not only as 65 percent of the employees will be

women, but especially because women will hold many of the higher positions, for example in

finance and administration, accounting, marketing, laboratory/production management,

supervising and R&D.

other The joint venture will facilitate graduation projects and traineeships for students.

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Ethiopia

PSOM08/ET/05 Professional Trade Exhibitions in Ethiopia


Sector Services

Applicant HPP International Group B.V., Amsterdam

Recipient Ultimate Engineering PLC, Addis Ababa




Summary:

The last five years the Ethiopian economy is growing with approximately 9 percent per year. Especially the horticulture,

construction and tourism sector show fast growing rates. As a result, the demand for professional trade exhibitions is growing at

a fast pace. The Dutch company HPP International Group B.V. is specialised in the organisation of professional trade

exhibitions and has organised the horticulture fair of March 2007 in Addis Ababa. While having its first experiences in Ethiopia,

HPP has noticed, that the concept of professional trade exhibitions is new to Ethiopia. The function of trade exhibitions is to

create a platform where the supply and demand of goods and services can meet, to facilitate trade contacts and to boost export

and trade. This will lead to new business contacts and to the development of the specific sector. Especially in emerging

markets, international trade exhibitions have the characteristic to contribute highly to economic growth. Having a trade exhibition

industry is thus important. Given these facts, the opportunity for HPP arises to play a pioneering role and start developing the

market for professional trade exhibitions in Ethiopia. For this purpose HPP will establish a joint venture with Ultimate

Engineering P.L.C., a company specialised in industrial engineering, supply and installation of cold store systems.

Results


• Office equipped and stand building material in place;

• Fairs organised and employees trained;

• Marketing and business plan development.

Development effects

on knowledge transfer The local manager will be trained in management skills, planning and control, logistics, office

skills and administration. Three permanent and ten temporary employees will be trained on

the job in organizing trade exhibitions with aspects as planning, promotion policy,

communication, sales, logistics, networking, etc. One permanent and thirty temporary

employees will be trained in all aspects of building and operating exhibitions, including

maintenance and repair of stand building material.

on employment The joint venture will employ eleven people on a fixed term basis and fifty people on

temporary contracts for a period of three months per exhibition. Indirect employment is

created for thirty people as during exhibitions additional economic activities are attracted in

the form of catering, restaurants, hotels, taxis, souvenir shops, translation services, guides,

etc. Two years after the project fixed employment will increase to twenty employees and

150 temporary staff.

on impact environment The impact on the environment will be neutral. The joint venture takes care of responsible

waste disposal.

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on chain Local suppliers of the joint venture will be the Addis Expo Centre, local hotels, catering

companies, printing companies, advertising companies, security companies, car rental,

translation companies, clearing and forwarding companies, etc. Besides, every exhibition

leads to at least a fivefold of local turnover in the specific sector. All exhibitions will be

organised with the local sector organisations, as such strengthening and involving the entire

sector.

on women Six out of the eleven fixed employees will be women, as well in the management and

planning positions. From the fifty temporary staff, thirty will be women.

other The joint venture will educate their employees on HIV/Aids prevention.

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Ethiopia

PSOM08/ET/06 Developing the kitchen and bathroom sector in Ethiopia:

a chain approach


Sector Home furnishing

Applicant Hevite B.V., Ede

Recipient Birchico Tarekeg Rock Crushing Plant and Cement Products, Addis Ababa




Summary:

Ethiopia is an emerging market that shows continuous high economic growth for a number of years. The construction sector in

Ethiopia is booming. In many places new constructions such as hotels, offices, condominiums, factories and villas arise. This

has created a demand for interior design products and services, including kitchens and bathrooms. Especially the rich elite

desires top quality. This is currently not available in Ethiopia, which is why they go abroad for interior design products, mostly

importing standard kitchens and bathrooms. However, there are no people experienced in installing kitchens and bathrooms.

Next to that architects often do not take into account the proper integration of kitchens and bathrooms in their design phase.

This gives rise to the business opportunity to start a one-stop-shop supplier of top quality, custom made kitchens and

bathrooms, following an integral chain approach. The Dutch company Hevite B.V. is a holding company of amongst others

Eurovite, a manufacturer and distributor of ceramic tiles, adhesives and complete bathrooms. The Ethiopian company Birchico

Tarekegn Rock Crushing Plant and Cement Products Manufacturer S.P. is active in the construction sector since 1992. The two

project partners will start a company for the custom made design, manufacturing and installation of top quality kitchens and

bathrooms, with after-sales service. The joint venture will integrate the chain by working together with local architects and

contractors in order to facilitate a good match between building design and kitchen and bathroom design. Local craftsmen will

be trained in the in-company training centre in Addis Ababa.

Results


• Showroom and workshop built and equipped;

• Staff members trained;

• Workshop and Training Centre operational.

Development effects

on knowledge transfer Introduction and promotion of technical skills and modern technologies is the cornerstone of

this project. All fourteen furniture makers and lacquers will be trained to effectively use the

high-precision equipment for the production facility. Thirteen installers, plumbers, electricians

and tilers will be trained in quality and precision installation works. One designer will be

trained in order to custom-design kitchens and bathrooms. For this purpose an in-company

training centre will be established with a capacity of fifty students, in which also fifteen to

twenty external people will be trained. A team of Dutch professionals from several Dutch

companies will regularly visit Ethiopia for training and knowledge transfer.

on employment The joint venture will employ 59 people during the project. This will increase to 97 people.

Two years after the pilot project; in addition 25 people will have started small installation

companies after being trained by the joint venture.

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on impact environment The impact of this project on the environment will be neutral. The only department where

negative environment effects could arise, is the spray paint department. However, water-

based paint will be used and the joint venture will take care of responsible disposal of waste.

The company will make a waste disposal plan for the whole company. Furthermore, the

company will work with high quality imported chipboard, low on formaldehyde, thus not

dangerous for the environment nor for the workers processing this material. The company

will only use wood from sustainably managed forests.

on chain The entire production chain will be involved. In order to guarantee a good synchronisation of

kitchen and bathroom design in the design of the entire building, cooperation with architects

and building contractors will be sought. The training centre will not only train own employees,

but also external trainees, such as architects, employees from building contractors, self-

employed installers, plumbers and electrical installation specialists. Furthermore, installation

employees will be stimulated and supported to become self-employed after they have

worked a couple of years for the joint venture. They will be supported with quality tools and

acquirement of assignments.

In order to guarantee the highest possible quality, both in production and in installation, high

quality materials will be imported. Wood (mostly chip wood and MDF) for kitchen and

bathroom furniture will be imported from The Netherlands. Kitchen and bathroom equipment

(ovens, baths, taps, etc), will have to be imported as well, since there is no local production.

Besides that, the local supply on the market is often imported from Asia and does not have

the required high quality. The quality focus will set the standard for local furniture production

and will lead to import substitution of standard kitchens from Dubai and Italy.

on women The impact on women will be neutral. 35 Percent of the employees will be women, mostly

working in the design of the kitchens and bathrooms, in the office and partly in the production

department.

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Ghana

PSOM08/GH/01 Pilot project for Ghana's first Internet Data Center

Location Accra

Sector ICT

Applicant Plant Hosting & Co-location B.V., Amsterdam

Recipient Explainer DC Ghana Ltd, Accra

Start project 01 August 2008

End project 31 March 2010


Summary:

The Dutch company Plant Hosting & Co-location B.V. and the Ghana based company Explainer DC Ghana Ltd started a web

hosting service together in Accra under the name Plant Ghana. Both parties want to expand this business to Ghana's first

internet hosting data centre in response to the recent introduction of the Ghana Internet Exchange (GIX) in October 2005. The

data centre will make internet traffic for customers faster and cheaper, because it will be based on local traffic and therefore no

transit costs to American or European Internet Service Providers have to be paid. Furthermore, it will diminish Ghanaian

businesses’ safety and bandwidth challenges, that hinder innovation. All in all, the centre will improve the sales of the joint

venture's services and thus promote the development of a mature and beneficial Internet and ICT economy in Ghana.

Results

• Providing a sound basis for the pilot project by addressing legal and administrative aspects and by making a detailed

planning;

• The new data centre is fully operational. Activities concern reconstruction and civil engineering, network design, data centre

layout and the purchase and installation of hardware;

• Recruitment and training of the data centre staff;

• Pilot project with data centre, evaluation, reporting and business follow-up.

Development effects

on knowledge transfer The ten employees will receive higher education varying from web hosting and co-location,

design and construction of a data centre, management training and anticipation on future

issues.

on employment At the end of the project ten direct and three indirect jobs will be created. Two years after the

project thirteen direct and eight indirect jobs will be created.

The data centre will meet the latest demands on areas like radiation, safety and air quality.

on impact environment The impact on the environment will be neutral.

on chain The project can be a catalyst for the development of the Internet/ICT sector in Ghana. A local

hosting service is crucial for the development of an Internet/ICT industry.

Affordability of, and accessibility to local Internet services improves productivity of the private

sector as a whole.

Construction and installation work, transport, office supply, hardware supply will be

subcontracted.

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Kenya

PSOM08/KE/03 Zantedeschia bulb production in Kiambu, Kenya

Location Kiambu

Sector Horticulture

Applicant Brothers Brothers B.V., Wageningen

Partner Sande Breeding B.V, 't Zand

Recipient Sande Kenya Ltd, Village Market - Nairobi


End project 31 January 2011

Total budget EUR 1,110,243 (50 percent PSOM contribution)

Summary:

The Dutch partner in the joint venture, Brothers Brothers B.V., is specialised in import, export, trading and breeding of flowers.

The local partner Sande Kenya Ltd is specialised in growing Zantedeschia cut flowers for the European, Asian and Middle

Eastern markets and is market leader in Zantedeschia cut flowers in Europe. The additional partner Sande Breeding B.V.

delivers tubers to cut flower growers all over the world and to pot plant growers in Europe. Furthermore this partner develops

tissue material for new Zantedeschia breeds.

Together the business partners will establish a joint venture for the production of Zantedeschia bulbs in the area of Kiambu in

Kenya. Targetting the African and Southern European markets, because there is a need for material for early planting, which

cannot be delivered by Dutch growers. The duration of the project will be 30 months. This time is required to complete the entire

chain of production of bulbs directly obtained from tissue culture material from the laboratories.

Results

• Joint venture established between applicant, recipient and additional project partner;

• Greenhouse constructed and cultivation employees trained;

• Storage and processing facility installed and employees trained;

• Production of tissue culture material established;

• Export and business development.

Development effects

on knowledge transfer All staff of the joint venture will be trained in one or more of the following subjects: cultivation,

treatment, storage and administration. Post harvest treatment of Zantedeschia is rather

difficult and the technology is new for Kenya. Also new technologies to spare the

environment will be introduced.

on employment During the project 110 people will be directly employed. The number of indirect jobs that will

be created is forty. In the two years after the project an additional 100 jobs will be created.

on impact environment According to the applicant the impact on the environment will be neutral. However, the

partners aim to be progressive in seeking new methods to replace suppression resources,

for example with regard to preparation of land.

on chain All hardware will be purchased from local companies. Furthermore, all materials necessary

for growing tubers, like boxes for storage and shipment, plastic for greenhouses, and

fertilizer are available in Kenya.

on women Approximately 60 percent of the staff to be employed will be women.

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Kenya

PSOM08/KE/04 Introducing Real Integrated Pest & Diseases management in the

horticultural industry in Kenya

Location Madaraka, Thika

Sector Agriculture

Applicant Suntech Holding B.V., Bussum

Recipient The Real IPM Company Ltd, Madaraka - Thika


End project 01 July 2010


Summary:

The world flower market is in urgent need of more environmentally friendly production methods. The reduction of chemical

inputs, in particular pesticides, is a major challenge to the Kenyan flower sector in order to keep its leading position as the

largest flower exporter of the African continent. Integrated Pest and Disease Management (IPM) is a concept which uses a

range of natural enemies and predators, named Biological Control Agents (BCA's), to combat harmful insects, pests and

diseases. In Kenya a pesticide reduction of 60 percent can be achieved with "biopesticides", but the costs and the limited range

of imported products, makes this target difficult to achieve. Hence there is need and scope for enhanced local production of a

wide range of low-cost BCA's, combined with training and advisory services for their introduction.

Suntech Holding B.V. of the Netherlands and the Real IPM Company Ltd in Kenya will set-up a joint venture company named

Real BioP(esticides), to introduce a comprehensive package of locally produced BCA's targeting the major pests and diseases

in roses. The consortium works closely with project partners Timaflor Roses (K) Ltd and Fresco B.V.. Timaflor Kenya will serve

as a demonstration cum testing ground for the newly introduced indigenous BCA's. Fresco Aalsmeer will market the "low-on-

pesticide" roses. Some technology and Licensed Products (BCA's) for local mass production of new BCA's, will be sourced from

an established international party.

Results

• Establishment of joint venture;

• Building and construction;

• Training and capacity building;

• Production;

• Market development and dissemination.

Development effects

on knowledge transfer Training and knowledge transfer will be provided to staff of Real BioP (35), Timaflor staff and

initial clients. Training will be done at all stages of the project using various methods (formal

training, on-the-job, demo plots, field days, seminars, etc). The project will design

customized training programmes and manuals for clients and other interested parties.

NB Total number of own staff trained within the project period is 25. Within two years after

the project this number will be forty.

on employment The project will create 35 new jobs in the pilot phase. Two years after the PSOM project this

number will be sixty. Indirectly the project partners estimate that the joint venture will create

250 extra jobs (trained IPM scouts) in client-companies during the pilot phase and another

400 in the follow-up phase (two years later).

25

on impact environment The project will contribute considerably to an environmentally more sustainable flower

industry. A reduction of up to 60 percent on pesticide inputs is the target for those companies

who adopt the Real BioP package of BCA’s. Another tangible output will be reduced leaching

of pesticides into the environment (soil, water and air).

on chain The project is expected to have a considerable positive impact on the competitive position of

the Kenyan flower sector, employing thousands of workers. Furthermore the joint venture will

use local companies for construction, installation and providing services and "consumables"

during and after the project. This will create both temporary and permanent employment.

on women The impact on the position of women will be positive. Women will be amongst the main

beneficiaries of improved health and safety conditions due to reduced use of pesticides.

Other The Real IPM already instructs its staff on (vegetable) home gardening, the importance of

balanced diets and health care, with special attention for HIV/AIDS. These staff services are

likely to be intensified to more staff in the future.

26

Kenya

PSOM08/KE/05 Establishment of an accredited service laboratory for safe and

sustainable agriculture in Nairobi

Location Nairobi

Sector Agriculture

Applicant Blgg B.V., Wageningen

Recipient Quest Laboratories Ltd, Nairobi


End project 01 August 2010


Summary:

Over the last decades, Kenya has become an important producer of flowers and vegetables for the European market. Flower

production and export is concentrated with a limited number of large-scale farms and companies. Horticultural production is

more diverse as large-scale producers and exporters heavily depend on outgrowers. Besides, smallholders have formed their

own cooperatives or farmers' organizations to market their produce locally and abroad. In Kenya today, smallholders account for

over 80 percent of horticultural produce that is grown for export to the European Union.

All actors in this market need high quality analytical services and technical support. Not only because this allows for optimization

of production and cost-effectiveness on the use of inputs, but also to comply with GlobalGAP and EU-safety standards. This

demands regular controls of fertilisation needs, monitoring of plant diseases to reduce the use of pesticides, and submission of

pesticide residue test reports, prepared by an independent and internationally accredited laboratory. The majority of these

services are supplied from Europe, as there are no laboratories in Kenya with the right accreditations, scope of analyses and

turnaround times. This inflates costs and sending samples abroad is becoming increasingly difficult due to more stringent

legislation to avoid transfer of insects, bacteria and viruses.

The project will capitalize on this market potential by establishing a fully accredited (ISO-17025) service laboratory and advisory

service, for safe and sustainable agriculture in Kenya. Partners in this new venture are Blgg B.V. and Quest Laboratories Ltd.

The Dutch company Blgg B.V. is composed of a group of specialized laboratories that support the agricultural production chain

in and outside the Netherlands while Quest Laboratories Ltd from Nairobi focuses on environmental control testing services and

advice.

Results

• Establishment of joint venture Blgg Kenya Ltd and Quest Laboratories Ltd and detailed training programme prepared;

• Laboratory equipped and staff trained for residue sampling and testing;

• Laboratory expanded with LC-MS and ISO-17025 system implemented;

• Completion of the project and business plan follow-up.

Development effects

on knowledge transfer Training and knowledge transfer will be provided to almost all staff across the organisation,

such as sample takers, lab technicians, lab managers, quality control managers,

administration and sales staff. At least fifteen members of staff will receive formal training

longer than seven days. Part of this training will be done in the Netherlands. Blgg Quest will

also organize seminars at local Universities and/or Government Institutions to increase

awareness and the knowledge level.

27

on employment The project will create 22 new quality jobs in the pilot phase. Two years after the PSOM

project this number will be 45. Indirectly the project partners estimate that the joint venture

will create five to ten extra jobs in companies that will provide services or sell their products

to the joint venture.

on impact environment The impact will be neutral to positive. The analytical services offered will optimize - and

possibly reduce - the use of fertilizers and pesticides. Furthermore it will create awareness

about costs, effects and health risks. The laboratory itself will minimise use of chemicals by

adopting methods that use minimum or no chemical substances.

on chain The project will contribute to the development of the local horticulture, floriculture and

agriculture sectors by providing EU-accredited services at affordable prices and short

turnaround times. This is expected to have an important positive effect on employment and

incomes across the agricultural chain. Furthermore the new joint venture will make use of

other local firms for services (e.g. maintenance and repairs) and goods (e.g. office

equipment, spare parts, PR/advertising, etc).

on women The impact on the position of women will be positive. Although there is no preference in

hiring women for new positions with Blgg Quest, career prospects and salaries will be equal

for men and women and competency based. At least 30 percent of the staff will be female.

As for indirect impact on the position of women, it might be noted that most workers in flori-/

horticulture - as well as outgrowers - are women. Women will be amongst the main

beneficiaries of improved services.

28

Madagascar

PSOM08/MG/01 Renewable Energy for Madagascar

Location Antananarivo

Sector Energy

Applicant The Wind Factory International B.V., Amsterdam Zuidoost

Partners - The Sun Factory International B.V., Swifterband

- Iedema Investments B.V., Grijpskerk

Recipient Bush Proof Sarl., Antananarivo




Summary:

'The Wind Factory Madagascar' (TWFM) is the name of the new Independent Power Producer (IPP) in Madagascar set up by

the Dutch company 'The Wind Factory B.V.' in cooperation with the local company 'BushProof Sarl.' TWFM will bring a unique

hybrid renewable energy system to Madagascar consisting of a combination of a wind turbine and a generator.

The market perspectives are favourable due to the low electrification level in Madagascar of only 15 percent making electricity

prices very high and profitable. Government policies stimulate the electrification of the country, especially in the field of

renewable energy. The interest of the public energy and water company JIRAMA to establish partnerships with new IPPs is

another market opportunity.

TWFM will focus on three core activities:

1. Installation of medium size (80-250 kW) grid connected hybrid wind turbines in cities and towns along the east and south

coast and several inland sites where JIRAMA can not meet the power demand of these areas. This activity will be

established in partnership with JIRAMA.

2. (Tailor made) supply of energy (hybrid wind energy systems) to clients, such as other IPPs, the private sector, donor

organisations, NGOs, communities and government.

3. Service and maintenance activities for clients.

Results

• Establishment of the joint venture;

• Installation of equipment for the hybrid wind energy centre and establishment of workshop with regard to service and

maintenance;

• Training and marketing campaign.

Development effects

on knowledge transfer Six service engineers and two managers will receive training in service and maintenance of

renewable energy systems and sales techniques. Eleven members of the technical team will

receive a technical training from the service engineers. All employees will have computer

and office skills training. End users and clients will be trained in the operation and

maintenance of their systems.

29

on employment During the project TWFM will create direct jobs for 26 people: two managers, six service

engineers, twelve technicians and six office support jobs. The number of indirect jobs is

estimated at at least 100. For the installation of the wind turbines indirect jobs are created for

craftsman like masons, drivers, construction workers, etc.

As for the safety of the employees a certificate will be obtained in line with the Essent safety

conditions in the Netherlands.

on impact environment The use of renewable energy sources decreases the use of fossil fuels, thus contributing to

the reduction of CO2 emissions and climate change.

on chain Because the masts for wind turbines, frames and foundations will be made locally, the

project will also create indirect jobs for the supply of goods. Furthermore, the availability of

electricity in rural areas will create opportunities for people to start their own businesses like

construction services, shops, etc.

on women The impact on the position of women of this project will be positive. Electricity diminishes the

use of other polluting sources and is creating better health conditions within households

where women and children spend a lot of time. Gathering fuels for cooking and lighting is

done by children and women. With electricity available, they can spend more of their time to

other activities.

Other Electrification has a positive influence on the lives of poor people (access to communication,

light in schools, reduction of health problems (less smoke), etc);

Wind energy does not cause conflicts over natural resources;

Medical insurance will be provided and information about HIV/AIDS will be made available.

30

Malawi

PSOM08/MW/02 Warehouse Receipt Systems and Options in Malawi

Location Kanengo, Lilongwe

Sector Agriculture

Applicant Avignon Holdings Ltd, Cape Town - South Africa

Recipient Farmers World Ltd, Lilongwe




Summary:

The business partners in this project will introduce a warehouse receipt system (WRS) for maize and soya in Malawi. This new

WRS system will benefit farmers and improve their access to rural finance because the warehouse receipts can be used as

collateral to get credit from micro finance institutions. The partners will also set up an option trading system in agricultural

commodities.

The warehouse receipt system will be set up by a company from South Africa, Avignon Holdings Pty, trader in fertilisers and

agricultural commodities, and a company in Malawi, Farmers World Ltd. The latter is involved in the buying and selling of

agricultural commodities, mainly maize, soya and beans from predominantly smallholder farmers through its more than

120 regional depots in the country. These depots also deliver services to the smallholders by selling fertilisers, seeds and

equipment.

Results


• Set up of storage silos for grains and soy;

• Starting storage operations, including training in issuing of receipts and options;

• Promotion, marketing and awareness of WRS and options;

• Sales and business development.

Development effects

on knowledge transfer In total 32 people will be trained in various skills like silo maintenance, silo operations, WRS

and options administrations and sales and promotions activities.

on employment In total 38 direct jobs and thirty indirect jobs will be created during the project period. In the

two years after the project period an additional 22 direct and thirty indirect jobs will be

created.

on impact environment The proposed project will have a positive effect on the environment. The products that are

being stored will need less chemical treatment to maintain quality and decrease post-harvest

losses. Due to the modern storage facilities less fumigation is required.

on chain The local transport sector will gain because the transport companies have to transport the

maize and soya to and from the new storage facilities.

on women The majority of the jobs created are expected to be occupied by men, apart from the

administrative functions. This is due to the technical skills required and/or the heavy physical

strains resulting from the work around the silos.

31

other The WRS can be used as collateral and can give the farmer access to micro credits.

Another positive effect is that the farmers have an opportunity to temporarily store their

surplus of maize and soya, which they can sell later during the season when the market

prices are higher.

32

Morocco

PSOM08/MA/01 BioMaroC

Location Gharb region, near Kenitra

Sector Organic agriculture

Applicant Metamorphosis, Ens

Recipient Société de Production Maraichère et Horticol de Massa S.A.




Summary:

The market for organic fruits and vegetables is steadily growing as shows the development of the company Metamorphosis in

the Netherlands. This company, pioneer in producing organic crops, is rapidly expanding its activities using new innovative

techniques like Precision Agriculture and Controlled Traffic Farming.

The business partner of Metamorphosis, the Moroccan company Maraissa is a daughter company of Groupe Agricola Tazi

(GAT), producing 140,000 tons of fruits and vegetables a year and exporting 70,000 tons yearly to Western Europe, mostly to

supermarket chains. The majority of products consist of greenhouse vegetables such as tomatoes and sweet pepper but also

beans, citrus and herbs.

The business partners will together start the new company BioMaroC in order to grow organic crops like potatoes, onions,

carrots and cabbages. These crops can be exported to Europe during winter time when local organic production is absent in for

exemple Germany and the Netherlands. The new pilot farm will be set up near the town of Kenitra, north of Rabat.

Results


• Buildings constructed, equipment delivered, managers trained;

• 200 hectares organically cultivated, employees trained;

• Packing station installed, agricultural equipment delivered;

• Operational phase.

Development effects

on knowledge transfer The project will introduce a specific form of organic agriculture and precision agriculture

setting a new standard for Morocco. Four crop managers will be trained in the Netherlands

and on the job in Morocco. The crop managers will in turn train the other employees in

Morocco in all aspects of organic agriculture, certification, precision agriculture and

controlled traffic farming, packaging and handling of vegetables, handling of agricultural

equipment, safety aspects and environmental protection. Different certificates will be

obtained like "Certificering Biologische Landbouw" (CEE 2092/91), Fair Trade and

GlobalGAP.

on employment The direct employment amounts to eighty persons during the pilot. After the pilot direct

employment will grow to 150 persons.

33

on impact environment Organic agriculture is known to have a very positive effect on the environment as no

hazardous products like pesticides, herbicides and chemical fertilizers are used. Precision

agriculture will add to the positive effects on the environment as irrigation will only be used if

needed. All agricultural waste will be reused to increase organic matter content of the soils.

The use of green manure during the off season reduces erosion because the soils are

covered year round. Nitrogen binders like Alfalfa and Clover will be used to increase the

nitrogen content of the soil.

on chain Organic fertilizers and composted goat dung will be sourced locally and most of all

agricultural equipment will be bought in Morocco. Because the demand for organic products

is growing worldwide and the Moroccan economy is fast growing, part of the production will

be sold in Morocco if possible.

on women The impact on the position of the local women will be positive because two third of the

employees will consist of women.

other All employees will receive free medical insurance and HIV/AIDS information materials will be

made available.

34

Morocco

PSOM08/MA/02 The production of high tech electrical equipment in Morocco

Location Kenitra

Sector Industry

Applicant Faget Holding B.V., Steenwijk

Partner Eleq Steenwijk B.V., Steenwijk

Recipient Ouasrafe SARL, Taourirt




Summary:

The core business of Faget, and its working company Eleq, is the development, production and marketing of high tech electrical

equipment for metering, lighting controls and protection. Main problem of Faget at the moment is the difficulty of production

expansion in The Netherlands and Germany because of lack of qualified production personnel. In Morocco however, qualified

personnel is easier to find.

Together with local partner Ouasrafe, experienced in production, repair and maintenance of complex technical equipment and

electrical systems, a new factory will be set up at Kenitra (North East of Morocco) to produce four types of electrical

transformers. The main challenge of the new company called Eleq Maroc SARL will be to produce at the excellent quality level

that Eleq customers are used to.

Results

• Project contract;

• Training of personnel;

• Production plant built and operational;

• Pilot Production and quality control;

• Commercial production.

Development effects

on knowledge transfer Transfer of knowledge and training of personnel will be important as high quality standards

and certification (ISO, ISO WEEE & ROHS) of the Moroccan products is obligatory.

Eleq Maroc is interested in a thorough cooperation with the technical school in Kenitra, giving

work opportunities for graduates from the school. Joint research activities are planned with

this school and The University of Casablanca.

on employment The direct employment amounts to 32 persons during the pilot. After the pilot direct

employment will grow to 64 persons.

on impact environment The standard of Eleq is to comply with the strictest environmental laws. Eleq is in the

process of complying with the RoHS and WEEE directives, respectively “Restriction of

Hazardous Substances” and "Waste Electrical and Electronic Equipment". These directives

are only applicable to the European Union, but these standards will help Eleq Maroc to

comply with the strictest standards which go far beyond Moroccan law.

on chain Local transport companies will be responsible for transporting the production materials to the

factory and transporting the final products to Eleq. Goods will be purchased locally.

35

on women The impact on the position of women will be positive. Contrary to other technical and high

tech companies, most of Eleq Maroc staff will be women. In Morocco working opportunities

for women are far less available than for men and the work qualifications of Eleq Maroc are

particularly suitable for women. Women will receive the same salary as men, and women will

have the same career opportunities as men. Women are allowed to have maternity leave

and will be provided a separate room for child care.

other Staff will participate in the local HIV prevention programme.

36

Mozambique

PSOM08/MZ/01 Adding value to sesame seed in Mozambique

Location Gurue

Sector Agriculture

Applicant Vardhman Industries, Kanpur, India

Partner Export Marketing Company Ltd, Pemba - Cabo Delgado, Mozambique

Recipient SDZ Cha SARL, Gurue, Mozambique


End project 31 December 2009


Summary:

Production of sesame seeds in Mozambique has been increasing over the last ten years, up to 27,000 tons in 2007. The

majority of these seeds are being exported as raw seeds, mainly to India and the Middle East. The business partners in this

project now want to set up a hulling facility in Gurue with a capacity of 2,450 tons of hulled sesame seed to add value to the

sesame seeds within Mozambique.

The applicant Vardhman Industries Ltd from India is a trader of commodity crops such as lentils and sesame seed. Since the

demand for hulled sesame seed worldwide is increasing Vardhman has been searching for new suppliers. A new future supplier

has been found in SDZ-Cha SARL, a tea producing company in Mozambique, with a large area of land of which more than

5,000 hectares currently not under crop. Declining margins on production and processing of tea have forced the company to

look for alternative cash crops. SDZ plans to grow sesame seeds on part of their land in the near future, thus becoming a major

supplier of the processing plant.

The new hulling plant will be located on SDZ's land. The third project partner, Export Marketing Ltd., is active in the supply of

agricultural inputs and procurement of commodity crops like peas, sesame seeds and cashew nuts. With the hulling facility in

place Export Marketing can offer higher prices to the farmers who produce the sesame seeds than other buyers of sesame seed

who export the raw seeds because of higher margins on the end product.

Results

• Joint venture founded / project initiated;

• Hulling facility established, operational and certified; staff trained;

• System of contract growing organised involving 800 growers;

• 300 tons hulled sesame seeds produced and sold; business expansion prepared.

Development effects

on knowledge transfer For the farming part of the project three agronomists and thirty field supervisors will be

trained. These field supervisors will train the outgrowers.

In total seventeen people will be trained in the management and organisation, quality

monitoring and handling in the processing facility. Furthermore 49 labourers will be trained,

including training in HACCP standards.

on employment The project will create 99 permanent direct jobs and 800 indirect jobs for the outgrowers.

In the two years after the project this is expected to increase to 148 permanent direct jobs

and 2,000 outgrowers.

37

on impact environment The hulling plant will use substantial amounts of water. In order to minimise the

environmental impact and reduce the amount of fresh water needed the joint venture will

invest in a water purification unit, filtering the water to such extend that re-use in the

production process will be possible. An Environmental Impact Assessment will be included in

the first project result.

on chain Local companies will be hired to provide services during the start up and construction of the

plant. Transport services to collect the seeds will be hired locally and also inputs like

packaging material will be purchased locally.

on women It is foreseen that 30 - 40 percent of the workers in the hulling plant will be women.

Other A health care and HIV/Aids-prevention programme will be implemented.

38

Rwanda

PSOM08/RW/01 The introduction of mechanised and irrigated high yielding maize

varieties

Location Bugesera

Sector Agriculture

Applicant Heineken N.V., Amsterdam

Partner Bralirwa S.A., Kigali

Recipient Minimex S.A., Kigali




Summary:

Rwanda is one of the most densely populated countries of Africa. Although the country has a lot of farming potential, hardly any

professional large scale farms exist. As a result, it is hard for the country to become self sufficient in terms of food supply. The

Rwandan government therefore is promoting large scale farmers, but so far, no grand initiatives have been set up.

Local company Minimex SA owns a professional maize mill in Kigali, and experiences difficulties with local supply of good

quality maize. In recent years, Minimex had to import maize in order to meet the demand in maize meal and maize grit. Local

brewery Bralirwa SA (a 70 percent daughter of Heineken N.V.) is one of Minimex’ clients, as it uses maize grit for the local beer

production. As Bralirwa wants to increase the use of maize in their local beer production, they are interested in having a

continuous supply of good quality maize grit, all year round.

Given the ever increasing prices of food crops in the world, it becomes interesting for the business partners to invest in their

own farm. The partners have been assigned a swamp area of 600 hectares in the Bugesera district by the Rwandan

government, designated for agricultural development. During the PSOM project, 140 hectares of this land will be cultivated for

professionally mechanised and irrigated production of maize, using high yielding maize varieties. Next to the main farm, the

partners will train and assist outgrowers in the neighbourhood in growing high yielding maize varieties as well.

Results

• Project inception;

• Installation of equipment;

• Employment and training;

• Outgrower programme established;

• Maize production operational.

Development effects

on knowledge transfer All 57 employees will be trained in land preparation and production. Managers (nine out

of 57) and a few selected other employees will receive additional training in operation and

maintenance of modern agricultural equipment, financial training, personnel management

and recruitment and logistics. Outgrowers will be trained in production and harvesting as

well.

on employment The project will employ 57 people directly and at least 100 people indirectly. Two years after

the project the partners will employ a total of 100 people directly and 150 people indirectly.

39

on impact environment Since the project will be located in a (former) swamp area, the partners need to take

particular care with regard to the biodiversity corridors, water catchment areas and climatic

stabilisation of the local ecology. 200 hectares of the total 600 hectares available to the

project, will be preserved for nature conservation. An environmental impact analysis will be

part of the project.

on chain This project will professionalize agriculture in Rwanda and make it less dependent on

imports from abroad. It fits in with the government’s green revolution policy promoting large

scale farming. Direct chain effects will emerge at the outgrowers level, but also at Minimex

(for the maize processing), the two potato cooperatives (who will buy and distribute all

potatoes) and the flour mill that produces soy flour. All these clients will benefit from this

large scale, local and continuous supply of raw inputs.

Studies by Bralirwa on its impact to the Rwandan economy, show a multiplier of 35 for each

job created at Bralirwa, meaning that indirectly 35 people benefit from one extra employee at

Bralirwa.

on women Fifty percent of all employees will be female.

Other Heineken and its local breweries in Africa are renown for their employees health policy.

Programmes on HIV-Aids prevention, free tests and free treatments are available to all

employees. For other medical costs, Heineken offers cheap medical insurance in

cooperation with PharmAccess. The employees of the new joint venture will be offered the

same benefits.

Although the main focus of the partners is on maize and especially grit production, the

increased availability of the other crops will contribute to Rwanda’s food security in general.

40

Senegal

PSOM08/SN/02 Biogas production for generation of electricity

Location Dakar

Sector Bio Energy

Applicant Thecogas Biogastechniek B.V., Lochem

Recipient C3E sarl, Dakar




Summary:

Senegal has a wealth of untapped resources from animal, agricultural and human waste that can be converted into biogas for

multiple uses: electricity, cooling, heating and cooking. The planned joint venture is capitalising on this opportunity and plans to

develop the first Senegalese company specialised in industrial scale biogas installations. The new company will market turn key

biogas plants and will be situated in the Dakar area. The major investment involved is the construction and installation of the

first industrial bio gas plant in Senegal, including a 40 kilowatt electricity generator, to serve as a demonstration and marketing

object.

Partners in this first Senegalese bio gas plant and production company of bio gas installations are Thecogas Biogastechniek

B.V. , specialised in production of turn-key biogas plants, and the Senegalese "Compagnie des Eaux, de l’Energie et de

l’Environnement" (C3E), specialised in the engineering and development of renewable energy projects in Senegal. The

company is already developing several solar, wind and biomass projects for grid integration, rural electrification and water

provision.

Results


• Preparation of the pilot plant;

• Construction of the pilot plant;

• Contracting and training employees;

• Production, sales, marketing and follow up business planning.

Development effects

on knowledge transfer Besides the training in construction, maintenance and servicing of biogas plants for the

fifteen employees. The demonstration plant will serve to educate business people and

decision makers as well.

on employment The direct employment amounts to fifteen persons during the pilot.

After the pilot direct employment will grow to 25 persons.

on impact environment Biogas production and use in electricity generation is in several ways beneficial to the

environment. The main reason is that power generation by biogas is CO2 neutral. Controlled

breakdown of plant and animal residues prevents the emission of methane into the

environment. Methane is a much more aggressive greenhouse gas than CO2. Furthermore

by using by-products of animal and plant processing industries which would otherwise be

evacuated into the environment water and soil are preserved.

on chain A high grade organic fertilizer, a valuable input for (organic) agriculture is produced by

biogas plants. Local constructors will be employed to built the fermentation tank and piping

for all plants to be sold.

41

on women The impact on the position of women will be neutral. In case of equal qualification, the project

will favour women as employee.

42

South Africa

PSOM08/SA/02 Breeding hybrid pumpkins in South Africa

Location Oudtshoorn, Western Cape province

Sector Agriculture

Applicant Gebroeders Bakker Zaadteelt & Zaadhandel B.V., Noord-Scharwoude

Recipient Klein Karoo Seed Marketing Ltd, Oudtshoorn, CP




Summary:

Currently all hybrid seeds for cultivation of white pumpkin in South Africa are imported from Australia and New Zealand. These

hybrids, however, are not really suitable for the South African conditions. They do not have resistance against diseases that are

common in South Africa.

Therefore a local breeding facility will be set up for hybrid pumpkin seeds in Oudtshoorn, Western Cape Province by the two

projet partners. The Dutch company Gebroeders Bakker Zaadteelt & Zaadhandel B.V., a breeder, producer and seller of beans

and other vegetable seeds will cooperate with the local company Klein Karoo Seed Marketing Ltd, experienced in seed

propagation and seed marketing. Within the project, initially, the focus will be on developing white pumpkin hybrids. Gradually

activities will expand to other related crops like zucchini, grey pumpkins and butternut.

Results

• Project inception;

• Breeding infrastructure developed;

• Start-up of the pumpkin breeding programme;

• Registration of selected parent lines, promotion and marketing of pumpkin hybrids;

• Project completion and planning of business expansion.

Development effects

on knowledge transfer In total 37 people will get trained within the project. For the training there are four main target

groups, being the pumpkin breeder, the database managers, the laboratory staff and the field

supervisors and field staff.

on employment At the end of the project forty direct jobs will have been created and twenty indirect jobs. In

the two years after the project fifty people will be employed by the joint venture, while

1,175 farmers will be contracted for the production of the hybrid seeds.

on impact environment There will be a slight positive effect on the environment, because by breeding disease

resistant hybrid varieties the use of fungicides and pesticides in pumpkin cultivation will be

reduced. Klein Karoo is ISO 14000 certified, which will also be done for the joint venture.

on chain By producing improved pumpkin cultivars the efficiency and productivity levels in the

pumpkin farming sector will increase. Since white pumpkin is a crop that is often grown by

black and coloured (small scale) farmers, the project will contribute positively to Black

Economic Empowerment. Also, the project will replace import of hybrid pumpkin seeds with

local production.

43

Other Klein Karoo Group has made arrangements with financial institutions so that employees can

become house owners. Klein Karoo Seed has a regular doctors clinic service. This will also

become available to the new joint venture staff. Workers can get a subsidy from the

government or a soft loan from the Landbank to buy shares in the company. By the end of

the project, employees of the joint venture will own 20 percent of the shares.

44

South Africa

PSOM08/SA/03 High solid industrial coatings South Africa

Location Porth Elizabeth

Sector Chemical Industry

Applicant Mol Coatings B.V., Rhenen

Recipient Welfit Oddy Ltd, Port Elizabeth




Summary:

The Dutch company Mol Coatings B.V. is a producer of industrial coatings and originates from the painting company established

in 1932 by painter and decorator Cornelis Mol. A few years ago Mol Coatings has developed a new production process for an

innovative water based high solid coating. In South Africa production of these kind of coatings does not exist and most coatings

are imported. Therefore Mol Coatings plans to set up a production facility for the production of environmentally friendly water

based high solid coatings, together with Welfit Oddy as the launching customer. This Southafrican company produces transport

equipment, mainly containers for transportation of liquids. The new production facility, located in Port Elizabeth will also include

the spraying process, just in time deliveries and the environmentally friendly Moltainer system.

Results

• Start up of joint venture;

• Construction of building and hardware taken into operation;

• Recruitment and training of personnel;

• Business development.

Development effects

on knowledge transfer All six employees will be trained, depending on the skills required for their job. Training will

include process operating and technical know-how on coatings and applications.

on employment During the pilot phase nine people will be employed by the joint venture, which will increase

to twenty six people in the two years after the pilot.

on impact environment The impact on the environment is kept at a minimum by using a liquid proof floor and the use

of the Moltainer system taking into account environmental measures and the South African

legislation. To safeguard the environmental aspects of this project a baseline measurement

will be included in the contract together with a document listing the measures the project

partners will take to minimise risks.

on chain Goods will be purchased locally whenever possible.

other Welfit Oddy has got a subsidised canteen, its own clinic, a HIV/Aids awareness programme,

subsidised transport for its workers and runs a soup programme in winter. Arrangements will

be made for the employees of the joint venture to benefit from this too. With regard to the

issue of BEE, project partners intend to hire mainly previously disadvantages individuals

(black and coloured people).

45

Sudan

PSOM08/SD/01 Dredging to improve the drinking water supply in Sudan

Location Gedaref State, Sudan

Sector Hydraulics

Applicant Dosco Baggerwerken B.V., Zwaag

Recipient El Gailani Company for Roads and Bridges




Summary:

In Sudan the problem of siltation of rivers, irrigation canals and drinking-water reservoirs is huge. Erosion prevention

programmes are complemented by desiltation projects and techniques of which excavation is the most commonly used method.

A cost effective technique like dredging, however, is hardly used in Sudan. As a result of recent large investments in irrigated

agriculture in Northern Sudan and an increased demand for reliable supply of drinking water by a growing urban population, the

demand for private sector services in the field of desiltation is growing.

The present project aims to capitalize on this growing market for private services and the high potential for applying dredging

techniques. It will start a pilot project with one 200 millimetre cutter section dredger in the State of Gedareff, with Gedareff State

Water Corporation as its launching customer. During follow-up it will considerably scale-up its activities and the number of

dredgers, to service other clients in and outside Gedareff State.

The project will be jointly implemented by the Dutch company Dosco Baggerwerken B.V. and the local partner El Gailani

Company for Roads and Bridges. El Gailani Company for Roads and Bridges is part of El Gailani Group, experience in

excavation, having its own fleet of lorries, bulldozers, excavators and graders.

Results

• Set-up of joint venture Dosco Baggerwerken B.V. and El Gailani Company for Roads and Bridges;

• Purchase and delivery of hardware/dredging equipment;

• Hiring and training of staff;

• Pilot production and completion of the project.

Development effects

on knowledge transfer The project has a strong component of knowledge transfer and capacity building, both in a

more formal way and on-the-job training. The project will train four technicians and eighteen

operators in dredging techniques and the operation and maintenance of the dredging

equipment. Also planning and office staff will be trained.

The project manager and chief mechanical engineer will be trained in the Netherlands and

on the site in Sudan.

on employment The project will create employment for 25 permanent staff in Sudan. Two years after the

PSOM project this number will be fifty. Project partners estimate that the joint venture will

create forty indirect jobs in Sudan during the project period and eighty in the next two years.

46

on impact environment The impact on the environment will be positive. A higher storage capacity of the reservoirs

will result in less run-off and a reduction of erosion in the immediate surroundings of the

reservoirs. It will also cause higher infiltration rates of surface water into the ground. This in

turn will stimulate vegetation growth in the areas near the reservoirs and at the same time

prevents the lowering of the groundwater table, one of the major environmental problems in

highly populated arid regions. The project will also coordinate with and support activities (e.g.

seminars) of the Ministry of Agriculture, focusing on education and awareness raising of the

man-made causes of soil erosion.

Dredgers are far more effective in energy/fuel consumption if compared to the traditional

system of desiltation, where excavators and tippers (trucks) are used.

on chain The new joint venture will make use of other local firms for services (e.g. repair and

maintenance) and goods (e.g. office equipment, spare parts etc).

Other The removed silts can be used as a fertile new topsoil for nearby farms or for brickmaking.

The project pilot phase will importantly contribute to a better and more reliable supply of

drinking water in Gedareff State. An improved supply of drinking water will have a positive

impact on the time women can spend on (more) productive activities, health and sanitation. It

directly contributes to UN MDGs. Siltation of rainfed dams and intakes in rivers/streams is

one of the major causes of present poor supply of water to both rural Gedareff and Gedareff

Town (> 400,000 inhabitants of which many internally displaced people from southern Sudan

and Darfur). GSWC estimates that due to this project the supply of water to its clients in rural

Gedareff State will increase by 50 percent. This figure will be 10-20 percent for Gedareff

town.

47

Tanzania

PSOM08/TZ/01 Pilot production of Anthurium foliage and flowers for export and

domestic market Zanzibar, Tanzania

Location Zanzibar

Sector Horticulture

Applicant Janssen-Smolders B.V., Maasbree

Partner Kinasi Ltd Private Limited company, Dar es Salaam

Recipient Zanzibar Flowers Ltd Private Limited company, Zanzibar

Start project 01 September 2008



Summary:

The dutch horticultural company Janssen-Smolders B.V., specialised in the production of Anthurium cut flowers and foliage, will

start an Anthurium foliage production facility on Zanzibar. Local partner in this new venture is Zanzibar Flowers. This company

recently finalised its production facilities and started with the production of Zingiber, Strelizia and Heliconia flowers.

The new joint venture will focus on the local and Middle East flower markets (via the Dubai Flower auction). Rationale behind

the establishment of an Anthurium foliage production facility on Zanzibar is the fact that production can be done much more

energy efficient and environmentally friendly, as it is close to its export market.

Results

• Business foundation;

• Greenhouse constructed & first employees contracted;

• Training employees, start planting mother plants;

• Start Anthurium production, first exports of Anthurium and business development.

Development effects

on knowledge transfer Eighteen people will be trained in planting, sorting, packing and storing of the Anthurium.

on employment Within the PSOM project eighteen direct jobs will be created and five indirect jobs. In the spin

off phase an additional fifteen jobs will be created and five indirect jobs.

on impact environment The project location is abandoned farmland. The project will have a minor environmental

impact. With drip irrigation a minimum amount of water will be utilised. Waste water will be

collected in gutters and digested in septic tanks and soak away pits.

on chain About 50 percent of the Anthurium foliage and flowers will be sold on the local market. This

gives local flower arrangers and flower shops the opportunity to arrange/ sell a larger variety

of flowers.

Consumables, services and raw materials like building materials and other hardware will be

locally sourced.

on women The impact on the position of women will be positive. More then 60 percent of the employees

will be women.

Other The property where the project is located includes a forest sanctuary. The joint venture is

committed to protect this sanctuary for the next generations.

48

Uganda

PSOM08/UG/01 Establishing propagation of Kalanchoe in Uganda

Location Mairye Ntinda Village, Wakiso District, Busukuma subcounty

Sector Horticulture

Applicant KP Holland Selectie B.V., Naaldwijk

Partners - Kwekerij van Eijzeren B.V., Middelburg

- StrijbisVerbeek Plants B.V., Maasdijk

Recipient Xclusive Cuttings Uganda Ltd, Mairye Ntinda Village




Summary:

The Netherlands is the world market leader in breeding, propagation and growing of kalanchoë pot plants. However, like many

other plants and flowers, the propagation of kalanchoë cuttings is becoming more and more expensive in the Netherlands

because of labour and energy costs.

Applicant KP Holland Selectie B.V., and partners StrijbisVerbeek B.V. and Kwekerij van Eijzeren B.V. (all (former) Kalanchoe

growers) therefore propose to set up a joint venture with Xclusive Cuttings Ltd. in Uganda, to establish a modern propagation

facility for Kalanchoe cuttings.

Kalanchoe is rather susceptible to climate changes, making it more difficult to propagate than for example chrysanthemums,

which is already widespread in Uganda. The partners therefore will invest in a fully controlled 1 hectare greenhouse with

automated ventilation, overhead and drip irrigation, low volume mist spraying system and a recirculation system. This will

enable the joint venture to produce Kalanchoe cuttings year round on a constant quality level. The propagation facility will be

established on Xclusive Cuttings’ property in Ntinda Village, Wakiso District, approximately an one hour drive from Kampala.

At first the joint venture will supply to the Dutch partners KP Holland and StrijbisVerbeek, but when production rises, the cuttings

will be sold to third parties as well.

Results


• Propagation facilities established;

• Staff trained in Kalanchoe propagation;

• Social-medical-educational centre set up;

• Business development and MPS-Florimark certification.

Development effects

on knowledge transfer The project will be introducing new propagation technology by implementing a greenhouse

with fully automatic vents (instead of fixed vents), low volume mist spraying system, internet

based crop monitoring, integrated planning-registration-tracking-and-tracing and full

recirculation of effluent nutrients.

Especially the technician, the crop managers and five supervisors will be trained thoroughly

in these matters. All general workers will receive on the job training and training in classroom

settings.

on employment The project will employ 35 people directly and eight people indirectly (since part of the staff

will be shared between Xclusive Cuttings and the new joint venture). Two years after the

project a total of 120 people will be employed directly and ten people indirectly.

49

on impact environment The project will become MPS Florimark certified. This includes, among others, MPS A and

MPS GAP. The production process is designed in such a way that all irrigation water and any

effluent fertilizer will be recirculated through a biofilter. The light system will be equipped with

low-energy bulbs, using only 32 percent of electricity as compared to conventional bulbs.

on chain The joint venture will hire the services of a nearby medical clinic, and a local transport

company will be hired to take the cuttings to the airport. Inputs will be acquired from local

suppliers as much as possible.

An indirect effect on the Ugandan economy is that once the partners proof that Kalanchoe

can be propagated in Uganda, this will open the door for pretty much any plant that needs to

be propagated, since Kalanchoe is considered to be one of the most vulnerable plants to

propagate.

on women 80 Percent of all employees will be female.

Other Xclusive Cuttings already organises monthly training sessions for its employees on issues as

first aid, HIV/Aids prevention, personal hygiene, domestic relations, computer literacy

etcetera. The new, yet to build, social-medical-educational centre will further facilitate these

trainings. Employees of the new venture will be encouraged to attend these sessions as well.

Besides MPS Florimark (which covers environmental issues, as well as quality and social

issues), the partners will apply for certification under the FFP (Fair Flowers, Fair Plants)

programme.

50

Uganda

PSOM08/UG/02 African Affordable Medicines Uganda

Location Kampala

Sector Distribution

Applicant ARV Access for Africa PTY, Menlo Park, SA

Partners - IDA Solutions, Woerden

- Amdha Ltd, Kampala

Recipient Surgipharm Uganda Ltd, Kampala




Summary:

In Uganda the availability of essential medicines at the right time, the right place, the right quantity and at affordable prices, is

still a problem. Although several distribution schemes exist (governmental, not-for-profit and private-for-profit initiatives), none of

them seems to be successful in delivering medicines in a cost-effective and timely manner.

Applicant ARV Access for Africa (AA4A) from South Africa (backed by its mother company IDA Solutions from the Netherlands)

wants to set up a distribution network for medicines, together with local partner Surgipharm Uganda Ltd. and third partner

Amdha Ltd. Surgipharm is an existing wholesaler of pharmaceuticals, surgicals and diagnostics, and Amdha is an investment

vehicle owned by the managing director of Surgipharm.

The new venture called African Affordable Medicines will establish a Central Franchise Organisation (CFO) in Kampala that will

handle an array of 2,500 medicines. These medicines will not be imported by the CFO, but bought at existing wholesalers,

unless the right medicines are not available in the country. On a district level the partners will establish Regional Franchise

Pharmacies (RFP) that will serve as local wholesalers, regularly supplied by the CFO. The project will start off with twenty RFPs

covering over 50 percent of Uganda’s population. Through an innovative ICT system for stock control and by giving training to

RFPs and their customers on drug prescription and rational drug use, the partners aim to assure reliable and low cost medicine

throughout Uganda.

Results

• Start of the ‘African Affordable Medicine Venture’;

• Establishment of the Central Franchise Organisation (CFO) and five Regional Franchise Pharmacies (RFP's);

• Communication and MIS Infrastructure operational;

• Commencement of operations of the Central Franchise Organisation (CFO);

• Commencement of operations of twenty Regional Franchise Pharmacies (RFPs) and CFO fully operational.

Development effects

on knowledge transfer The RFP owners and their employees will be trained in supply chain management, drug

prescription and rational drug use. The RFPs in turn will train their clients (hospitals, clinics,

dispensaries and the like) in drug prescription and rational drug use as well. AA4A and IDA

Solutions have developed multiple training packages for this kind of knowledge transfer. This

will improve diagnosing skills, counter prescribing and treatment of patients.

on employment The project will employ thirteen people directly at the CFO level and between sixty and 120

at the RFPs (3 - 6 per RFP). Two years after the project the partners expect to employ

approximately 160 people.

51

on impact environment By optimizing transport capacity the number of transport movements is expected to be

reduced by 30 to 40 percent, leading to less fuel consumption and thus reduction in

CO2 emissions.

on chain Local transport companies will benefit from regular deliveries to the districts. Existing

wholesalers in Kampala will benefit from an effective distribution network leading to more

sales. The proposed supply chain management system and especially the ICT infrastructure

will greatly boost the health sector and can be used as an example for other sectors of the

economy.

on women The impact on the position of women will be positive as women will get priority in the

recruitment of personnel both for the CFO and the RFPs.

Other The medical care in Uganda will be greatly improved through adequate training of

pharmacists, dispensers and other local health workers through continuous attention for

training in the RFP districts. The proposed distribution network will be open to national,

vertical programmes as well, allowing other health programmes to plug into an effective

distribution scheme.

52

Zambia

PSOM08/ZM/01 Affordable access to quality healthcare for low-income groups

Location Lusaka in the central Province, Zambia

Sector Services

Applicant MicroCare Insurance Uganda Ltd, Kampala

Partner Eolas Consultancy Pvt Limited, Chennai

Recipient MicroCare Zambia Ltd, Company Limited by share capital, Lusaka




Summary:

In Zambia the health insurance sector is hardly developed. Only a few companies offer health insurance to the high end of the

market. For the average Zambian however, this insurance is not affordable, nor available. Applicant MicroCare Insurance

Uganda Ltd has developed a health insurance model that focuses on low income people in both the informal sector and the

formal sector. With recently established recipient MicroCare Zambia Ltd, they now want to expand their business model to

Zambia.

By offering its insurance products to already existing groups only (such as companies or informal associations), by using a

highly innovative ICT control system to prevent fraud, by participating in preventive healthcare and by offering several insurance

packages for different needs, the partners intend to set up the first successful micro insurance company in Zambia.

The project's headquarters will be in Lusaka. Although the insurance products are open to all people in Zambia, the initial focus

will be on people living near the capital, Livingstone and in the Copperbelt. Since the availability of healthcare providers is an

important aspect in this project, the partners will contract at least 30 hospitals and clinics in the areas mentioned above.

Results

• Preparatory work;

• Setting-up the head office;

• Start of operations;

• Upscaling of operations;

• Finalisation of project.

Development effects

on knowledge transfer The project will be introducing ICT to the health sector. All employees will be trained in using

these innovative technologies. In addition, employees at head office will be trained in

marketing, customer care, actuarial support, medical back-up and/or other training needed

for their specific job.

on employment The project will employ 35 people directly (twelve at head office and 23 nurses at check-in

desks), and 92 people indirectly in the entire chain (sales agents working for MicroCare, and

other). Two years after the project the partners expect to employ 71 people directly and

180 indirectly.

53

on chain MicroCare's insurance products will be sold through its own staff as well as through

insurance agents. MicroCare will also closely collaborate with Zambia's healthcare providers.

By signing contracts with hospitals and clinics, these healthcare providers will be guaranteed

a regular cash flow, because MicroCare will be paying its bills on a regular basis. This allows

the hospitals to further professionalize and plan future investments.

In addition, MicroCare will organize doctors meetings during which specific cases will be

discussed. This adds to the general knowledge of all participating health care providers.

on women Sixty percent of all employees will be women. Not only nurses, but women in management

positions as well.

other The most important development effect of this project is that it will create affordable access

to quality healthcare for people in Zambia. This will affect the whole health sector as the

standard procedures will be regulated, and money flows in the health sector will become

easier to trace.

Another effect will be the increased capacity to provide cures like HIV-Aids treatment.

Capacity constraints are main factors in the inability of national programmes to reach the

whole population. MicroCare's project can help to pave the way to increased outreach.

54

Zambia

PSOM08/ZM/02 Seed and processed potatoes for Zambia

Location Kasondi Ranche and small holder out growers near Lusaka, Zambia

Sector Agriculture

Applicant Agro Technical Supplies B.V. (ATS B.V.), Deventer

Partners HZPC Holland B.V., Joure

QTP Engineering B.V., Geldermalsen

Recipient Enviro-Flor Ltd, Lusaka




Summary:

As the Zambian economy is growing, the amount of disposable income is increasing. Next to the regular demand for potatoes,

the demand for processed potatoes like French fries and crisps therefore is on the increase as well.

The company ATS B.V. from the Netherlands, proposes to invest in the potato sector, together with Zambian company

Enviroflor Ltd. ATS is an experienced supplier of agro-technical supplies. As such it has ample experience in cold stores and

storage rooms. Just recently, they have added potato processing equipment to their portfolio as well. Enviroflor is known for its

rose farm in Zambia, but is also growing vegetables and potatoes. It has already started to invest in the production of seed

potatoes in order to assure the availability of good quality processing potatoes.

The partners will set up a joint venture for the professional storage and processing of 3,500 tonnes of potatoes annually. The

main investments will be done in storage facilities and in a grading and processing line for the production of French fries (fresh

and frozen) and the production of crisps. By combining the efforts in establishing the production of good quality seed and

processing potatoes, with this project, the partners ensure a complete chain approach, developing the potato market in Zambia

in general.

Results

• Set up of the joint venture;

• Processing line and buildings finalised;

• Recruitment and training of personnel;

• Set up of outgrower scheme;


Development effects

on knowledge transfer Employees of the joint venture will all be trained in cultivation of seed potatoes and field

potatoes. In addition employees will be trained in operating the factory: using the machines,

food safety, quality control etcetera. In the office, ten people will be trained in marketing and

sales and administrative skills.

The outgrowers will receive training in growing potatoes as well.

on employment 59 People will be directly employed on a full time basis. In addition approximately twenty

seasonal workers will be employed and twenty people will have indirect work. Two years

after the project a total of eighty people will be employed full time, twenty on a seasonal

basis and forty indirectly.

55

on impact environment The recipient’s farm is already in compliance with the Environmental Registration rules in

Zambia. The project will also become GlobalGAP certified.

on chain The project will influence the chain as it will train and guarantee income for at least five

outgrowers. Local supermarkets will be supplied regularly with fresh potatoes and French

fries, instead of being dependent on foreign imports.

This project will be the first to establish the whole chain from potato cultivation to processing,

adding value to the product in Zambia.

on women 30 to 40 percent of all employees will be female.

other Enviroflor is making a big effort to build houses and sanitary for its employees, to create a

community hall for meetings, education, healthcare, recreation, nursery and the like. It

organises HIV-Aids prevention programmes and is establishing a school on the premises. All

in all, Enviroflor is recognised as a good employer. The employees of the new joint venture

will be granted the same benefits.

57

Asia

59

Bangladesh

PSOM08/BD/01 Textile recycling at Narayanganj - Bangladesh

Location Narayanganj

Sector Environment

Applicant Tereco Textiles Nederland B.V., Dongen

Recipient Kumudini Welfare Trust Ltd, Naranyanganj




Summary:

Although the textile industry in Bangladesh is still expanding, its growth is partly hindered because the country does not produce

or import enough natural (i.e. cotton) and synthetic fibres for its spinning mills. In spite of these shortages, only a fraction of the

industry's waste is currently recycled. Predominantly with obsolete, hazardous equipment to produce low quality fibres and felt.

The partners in this project aim to set up a mechanical recycling plant for textiles in Narayanganj (South of Dhaka). The factory

will use waste products from garment factories in the region. The company will produce high quality fibres for local spinning

mills, thus replacing costly import of raw materials. The Dutch partner in new venture is Tereco, an expert company in the

recycling of textiles. The local company Kumundini is a trading house in jute and textiles that wants to expand their commercial

activities into textile recycling.

Results


• Infrastructure and hardware in place;

• Staff trained and able to operate plant;

• First production and business plan.

Development effects

on knowledge transfer 150 Employees will get a basic training in sorting out the raw material. Five to ten local

employees will get an in-dept training in the operation, fine tuning and maintenance of the

machines.

on employment The venture will have created 166 direct jobs by the end of the project and over 300 two

years afterwards.

on impact environment The effect on the environment will be positive as the project will enhance the recycling of

textile waste.

on chain The project will enhance the textile recycling chain, by introducing a technology for high-end

recycling. Additionally, the local cotton chain will be optimised as the waste material will be

procured from the source and the recycled product will be sold directly to the factories.

on women The impact on the position of women will be positive as the sorting of the base material will

be done by women. Moreover, Kumudini’s mission statement includes to spread education

especially amongst under-privileged women, and offer them a scope for their economic

emancipation.

Other Part of the net earnings of the joint venture will be dedicated to the welfare activities of

Kumudini (hospital, education).

60

Bangladesh

PSOM08/BD/02 Expanded Polystyrene (EPS) production as insulation material for the

building sector

Location Dhaka

Sector Industry

Applicant DMH B.V., Berkel Enschot

Recipient Advanced Development Technologies Ltd, Dhaka




Summary:

Currently, buildings in Bangladesh are constructed without insulation, as EPS is not produced locally. EPS enters the country as

packaging material only.

The business partners in this project will establish an EPS production facility in Dhaka. This production facility will be ISO

9001:2000 (quality standard) and ISO 14000 (environmental standard) certified. Partners in the project are the Dutch DMH B.V.,

an engineering group, specialised in the use of Expanded Polystyrene (EPS) in interior systems. Their international experience

reaches from western Europe sales market, to a plastic recycling operation in China. Their local partner in this new venture is

the Bangladeshi Advanced Development Technologies ltd (ADT). A real estate developer for the higher segment apartments in

Dhaka.

Initially ADT will buy the production for use in their construction projects. Once EPS blocks are introduced in the building sector

in Bangladesh, the market will be actively developed to other construction companies and further uses (e.g roads, mushroom

production and cheap housing for the very poor).

Results


• Production facilities operational;

• Local staff trained, marketing strategy developed;

• Business development and ISO certification.

Development effects

on knowledge transfer All 35 local staff will be trained in ISO 9001:200 and ISO 14000 quality management

standards. Additionally, 32 staff will get training in Quality assurance, operation and

maintenance, logistical management and planning.

on employment The project will create 35 direct jobs. Two years later, this will be 85. Indirect jobs created

are estimated at twenty and forty respectively.

on impact environment Environmental impact will be positive, as the use of EPS in construction will reduce energy

consumption of air conditioners. All production waste can be directly recycled in the process.

on chain The project can change the building sector significantly and contribute to further awareness

of reduction of energy consumption. This insulation product also has potential for use in

other sectors.

Other The joint venture will ensure good working conditions under ISO 9001:2000 and ISO 14000.

Additionally, the joint venture will make available salary-deductible personal loans.

61

Bangladesh

PSOM08/BD/03 Pilot (geo-)graphic data service providing Bangladesh

Location City of Dhaka

Sector ICT

Applicant Agra Hawar B.V., Bolsward

Recipient ERP Systems Ltd, Dhaka




Summary:

Agra Hawar is an IT company offering an independent web-based (geo-)graphical data service platform for municipalities and

(institutional) real estate management (e.g. hospitals, airports and large office and industrial buildings). Agra Hawar is the main

client of the customised software development of ERP Systems Ltd. Agra Hawar and EPR Systems have been working together

for several years. Now, the two partners want to jointly invest in a data service providing service for geo-graphic data from

Bangladesh.

For maintenance and exploitation of large office buildings, hospitals and/or public buildings there is a need for up to date

technical drawings and documentation about the building infrastructure. Main reasons are new laws, mainly established after

large-scale disasters, and the wish to optimize facility management processes and costs. It appears that accurate and up-to-

date topographical and construction-technical maps/information are often lacking. This is for instance hampering the work of

emergency services like ambulances and fire-fighting in case of disasters. In addition, the communal (financial and

infrastructural) damage yearly caused by construction activities where improper and out-dated maps have been used, is

enormously.

The business opportunity is to let the customers outsource creation and maintenance tasks of the geographical maps and

technical drawings. These activities are offered by the new joint venture using internet technology. Agra Hawar and ERP

Systems Ltd will set up a joint venture to provide the information in a web-based environment where customers and

subcontractor can directly interact about location and progress of infrastructural works, post projects and revision drawings and

place remarks and smaller changes. All posted revision material will be processed by the joint venture back into the main

geographical maps or technical drawings that are published through internet technique.

Results


• (Geo-)graphic data service providing centre completed and operational;

• Initial staff hired and trained (IT operated from NL);

• Additional staff hired and trained (IT operated from BD);

• Project completion.

Development effects

on knowledge transfer All staff will get basic training and each will get specialised training in specific areas.

on employment By the end of the project, the joint venture will employ forty people. Two years later this will

be sixty. Indirect employment will be ten and fifteen respectively. To handle the increased

workload, the applicant will employ three extra employees during the project and another one

within two years afterwards.

on impact environment Environmental effect is neutral.

62

on chain GIS data service providing is new in Bangladesh. As such this project will contribute to the

underdeveloped market of data service providing.

on women Development effects on the position of women will be neutral.

63

China

PSOM08/CH/01 Breeding selection and testing of new rose varieties for the Chinese

market

Location Kunming

Sector Horticulture

Applicant De Ruiter Holding B.V., De Kwakel

Recipient Beijing Oriental Technologies Ltd, Beijing




Summary:

Due to a lack of knowledge in China to develop new varieties and due to the absence of a good system to protect Plant

Breeders Rights, there are no new rose varieties available on the Chinese market. Roses that are currently sold on the Chinese

market are older varieties on which no royalties have to be paid.

A Chinese and a Dutch company will however introduce new rose varieties on the Chinese market. The Dutch partner in this

new joint venture, De Ruiter Holding B.V. (De Ruiter), is specialized in the breeding, propagation and marketing of unique rose

varieties. De Ruiter has facilities in The Netherlands, Ecuador and Kenya and is already doing business in China with the

Chinese partner in the new venture. This company Beijing Oriental Technologies Ltd (Oritech) is a production company for

equipment in greenhouses and garden centres, but since 2000 it also acts as an agent for rose breeding companies, including

De Ruiter. Oritech is specialized in commercial testing, introduction and marketing of new rose varieties on the Chinese market.

Together both parties will establish a joint venture in Chengjiang (30 kilometres south-east of Kunming) that will breed new rose

varieties by crossing local/indigenous varieties with Kenyan and Ecuadorian varieties. The partners will start a greenhouse of

2 hectares to breed new varieties dapted to local climate conditions of high UV radiations and low humidity.

The joint venture will sell their roses through Kunming International Flower Auction (KIFA) to end users and growers. The latter

will further propagate and then sell the cut roses through KIFA on which the venture receives a royalty payment. Via this

construction illegal breeding and propagation of roses can be tackled, since KIFA only sells roses from growers who have

signed the tripartite agreement, and thus Plant Breeders Rights (PBR's) are protected.

Results

• Joint venture set up under Chinese law;

• Breeding and growing facilities operational, 25 staff recruited;

• Fifteen staff trained, first selections of new crossings;

• 35 Staff recruited, sixty staff trained for ISO9001:2000, MPS-A and FLO;

• Official PBR certification for at least four new rose varieties in China.

Development effects

on knowledge transfer Sixty local staff will be trained in the several aspects of breeding, propagation, selection,

testing and growing of roses. Also ISO 9001:2000, MPS-A and FLO trainings are given to

local staff. Furthermore, demonstration events will be organized for sixty growers and three

wholesalers.

on employment At the end of the pilot phase sixty people will be working in the greenhouse, and 45 people

will be working indirectly for the joint venture. Two years after the project around 140 people

will be working for the joint venture and 300 people will indirectly be working for the joint

venture.

64

on impact environment The environmental effects will be positive. The greenhouse will have several energy and

water saving features installed, for example a water recycling installation. Methyl bromide will

not be used for soil sterilisation. Instead the partners will make use of substrate.

on chain Short term: The greenhouse will be built by local construction companies, ISO 9001:2000

auditing and certification will be carried out by a local certification company. During the

inception phase local legal advisors will be assisting to set up the joint venture.

Long term: The joint venture will sell rose stems for propagation to a large number of local

growers who will sell their roses via KIFA. The project will generate additional demand for

local inputs and create extra income generating activities for growers.

on women There will be a positive effect on the position of women. Thirty women will be employed to

cut the flowers and to work in the pack shed. The female workers have the possibility to open

their own bank account on which salary will be paid.

other Next to good salary and working conditions, staff working for the joint venture will have the

possibility to learn English. There will also be an education budget for schooling and

education tools for children of the employees. Also the joint venture will ensure that staff is

properly insured against medical costs.

65

China

PSOM08/CH/03 Production of safe and modern herbal medicinal products and food

supplements

Location China

Sector Food Industry

Applicant SU BioMedicine B.V., Zeist

Recipient Chengdu Zhonghui Pharmaceutical Co. Ltd, Chengdu - Sichuan




Summary:

The partners in this project will start producing traditional Chinese Medicine (TCM) for the West European market.

The European market for single and multi-herb supplements is huge. It is expected to grow from EUR 6 billion in 2006 to

EUR 7.24 billion in 2010, representing 38 percent of global sales. The total of Chinese herbal exports to the EU is only

1.5 percent, mainly in the form of food supplements. This low export percentage can be explained by the strict European

legislation on hygiene. Requiring GMP (Good Manufacturing Practice) for TCM in the form of herbal medicines and soon also

for TMC in the form of food supplements. In China, however, there are currently no manufacturers able to produce under the

current EU GMP standards. Secondly, TCM are not yet accepted as Western medicines, because there is not enough scientific

evidence yet that TCM have demonstrated efficacy on a system as a whole.

The Dutch partner in the new company, SU BioMedicine (SUB), is specialized in providing scientific evidence for the beneficial

effects of herbal medicine. It is the first company able to provide scientific evidence for Traditional Chinese Medicine (TCM).

Together with the Chinese partner Chengdu Zhonghui Pharmaceuticals, a Chinese producer of TCM, they will produce TCM

under EU GMP. First the products will be sold as herbal food supplements. After approval by the EU the products will be sold as

food supplements with a health claim and where possible as traditional herbal medicinal products. Three products have been

selected for production beneficial for diabetes type II, obesitas and high cholesterol linked diseases. The new joint venture will

produce TCM under EU GMP for export to Europe. Farmers will supply herbs to the joint venture under Good Agricultural

Practice (GAP) and Good Collecting Practice (GCP).

Results

• Establishment and registration of joint venture;

• Purchasing and installation of the equipment;

• Training of employees;

• Certification of product line conform EU GMP, and production and sales.

66

Development effects

on knowledge transfer At least ten employees will receive technical training, including training in EU GMP

standards. Some employees will be trained in administration, sales, marketing and finance.

Other local TCM companies will have the opportunity to learn about EU GMP.

on employment The project will create seventeen direct jobs in China and two in the Netherlands. Two years

later, this will be fifty in China. Indirect jobs created are estimated at ninety farmers during

the project and 900 farmers two years after the project.

on impact environment Good Agricultural Practice and Good Collection Practice have to be observed when

cultivating and collecting the raw materials. No pesticides may be used.

on chain Ninety farmers will be involved in the project, cultivating and collecting herbs under GALP

standards for the joint venture. Furthermore the joint venture will produce TCM under EU

GMP also for other producers in order to enable them to export their products to Europe.

on women The impact on women will be neutral. Women will be treated equally to men. Several women

hold management positions in the company of the local partner.

other A SA 8000 pre-audit is part of the project, ensuring good working conditions.

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China

PSOM08/CH/06 CHINABEE

Location China, Hebei

Sector Agriculture

Applicant Syngenta Bioline Bees B.V., Weert

Recipient Tianyi Biological Control Company Ltd, Hengshui - Hebei




Summary:

In China the pollination of protected crops, especially tomatoes, is still done artificially by means of chemical hormones which

are manually distributed in the greenhouses. This artificial pollination has several disadvantages such as lesser quality,

environmentally unfriendly and rather labour intensive.

A new method of pollination using bumblebees will be introduced by the two business partners in this project. Therefore

Syngenta Bioline Bees B.V. (SBB), a producer of high quality bumblebees, will start the mass production of bumblebees for the

Chinese market, together with the Chinese company Tianyi Biological Control Company. The bumblebees produced in the

newly built production facility will be sold to growers of tomatoes. SBB will also support Tianyi with the set up of a sales and

marketing organisation and with knowledge about the production-breeding of bumblebees. Partners will cooperate on the basis

of a royalties agreement.

Results

• Agreement and signature of the royalties agreement;

• Development of training material and design and adaptation of production site;

• Recruitment and training of production personnel, including training of three trainers and delivery of parent material;

• Recruitment and training of sales personnel and delivery of parent material;

• Production and sales volume realized.

Development effects

on knowledge transfer All employees of Tianyi will be trained at the facility in China. Some of the key

managers/workers will be trained in technical aspects of the rearing of bumblebees in the

Netherlands. Also significant training on sales and marketing will be given as Tianyi has little

experience in that area.

on employment The project will create 69 direct jobs in China. Two years later, this will even increase to 102

in China. Indirectly some jobs will be lost due to the shift from manual pollination to

pollination by bees. On the other hand 43 extra jobs will be created at the producers of pollen

and sugarwater, necessary for the production of bumblebees.

on impact environment The project has a positive impact as chemical hormones will not be used for pollination

purposes anymore.

on chain For the rearing of bumblebees the new company will buy pollen and sugar water locally,

representing a value of EUR 204,000 and EUR 80,000 respectively for the pilot project.

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Philippines

PSOM08/PH/01 Artificial Insemination Center for high quality semen available to

backyard farmers in Batangas

Location Batangas

Sector Agriculture

Applicant Schippers Participaties International B.V., Bladel

Partner Van Gennip Fokvarkens & KI B.V., Helmond

Recipient Northwest Basic Commodities Corporation, Metro Manila




Summary:

The Dutch company Schippers Participaties International B.V. (Schippers) is involved in the wholesale and export of farm and

livestock equipment and is known as Europe's leading supplier of artificial insemination equipment. It will form a partnership with

the company Northwest Basic Commodities Corporation (NBCC) in the Philippines, a wholesaler in premium quality piglet

nutrition products for swine breeding.

In the Philippines an estimated 70 percent of the swine production is still supplied by backyard farmers (keeping an average of

ten to fifty swines). However, due to up scaling in the hog industry the smallholders risk to loose their market share.

The business partners in this project see an excellent business opportunity in assisting the backyard swine raisers to improve

productivity and farm profitability by offering high quality genetics and education on good farm management practices. In order

to contribute to the backyard swine sector's growth and development the partners want to establish an Artificial Insemination

(AI) Centre in the province of Batangas, South Luzon to produce and market affordable but high quality swine AI semen to the

backyard swine raisers. Technical advice on artificial insemination, breeding and reproduction will be given by the third partner

Van Gennip Fokvarkens & KI B.V.

Results

• Joint venture established;

• Facility established and employees contracted and trained;

• Planned production and sales realised;

• Marketing and business development.

Development effects

on knowledge transfer All staff will be trained in one or more of the following subjects: basics about company

processes, safety, management techniques, pig genetics, AI reproduction techniques and

procedures, pig insemination, health, nutrition, farm management and husbandry, and sales

and marketing techniques.

on employment During the project 25 jobs will be created of which five jobs on supervisor/management level.

In the two years after the project an additional 25 jobs will be created.

on impact environment The impact on the environment will be neutral. The AI Centre will implement a zero-waste

programme.

69

on chain The production and distribution of high quality semen by the AI Centre will have an important

effect on the income situation of small backyard swine raisers. Furthermore, local companies

will be involved in the site development and farm construction. Feed requirements, veterinary

medicines and supplies for the AI Center will all be purchased from local companies.

on women At least ten of the staff to be employed will be women.

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Philippines

PSOM08/PH/02 Productions and distribution of solar energy systems for the remote

areas in the Philippines

Location Manila

Sector Energy

Applicant Solland Solar Energy Holding B.V., Heerlen

Partner Philippine National Oil Company, Taguig City - Metro Manila

Recipient Innovative Concrete Elements Inc., Makati City




Summary:

Solland Solar Energy Holding B.V. is a manufacturer of solar cells, supplying to solar module producers and to OEM (Original

Equipment Manufacturers) that integrate solar cells in their products, mainly in Europe. InCon (Innovative Concrete Elements) is

a construction company and manufacturer of concrete modular house building elements. InCon is able to supply solid built

houses against a fair price and mainly delivers to less developed households in remote areas. The additional partner PNOC

(Philippine National Oil Company) is a state company that provides and maintains an adequate and stable supply of oil.

Through the years, PNOC developed itself as a total energy company.

Based on data from the UNDP approximately 16.2 million people in the Philippines do not have access to electricity. Current

access to electricity is biased toward the urban areas. The geographical structure of the Philippines, composed of an

archipelago of more than seven thousand islands urges for focus on decentralized, standalone energy generation systems.

Therefore the consortium partners aim to produce and distribute solar energy systems for the remote areas in the Philippines. A

production facility will be established for the production of solar modules. In addition to the production facility a main training,

distribution and service centre will be established. The facility and centre will be located near Manila. Furthermore, four

distribution and service centres will be established in the remote areas Apayao, Guimaras, Biliran and Southern Leyte for the

marketing, sales, installation and after-sales services of solar systems.

Results


• Production facility and main training, distribution and service centre established;

• Four distribution and service centres and training facilities constructed and employees recruited;

• Commercial distribution and sales network formalised and train-the-trainer programme implemented;

• Commercial exploitation of the production, distribution and service facilities and employees recruited.

Development effects

on knowledge transfer All staff will be trained. This project will introduce know how and promote technical skills and

technologies on different levels and in different areas.

on employment During the project seventy people will be directly employed. Two years after the project an

additional 75 jobs will be generated.

on impact environment The impact on the environment is positive as the use of solar energy systems will contribute

to the reduced use of fossil fuels and environmental unfriendly diesel generators.

71

on chain Various local companies will be able to supply materials to the joint venture. Further, it is

expected that during the project at least 100 installers will be certified. These newly

developed outlets, offering spare parts as well as first line repairs will be established in the

communities. They will operate independently from the joint venture, but will be trained and

supported by the joint venture.

on women The project is expected to be more favourable for women due to the required precision for

the production of solar modules.

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Thailand

PSOM08/TH/01 Innovative boat building in Chonburi Thailand

Location Sattahip

Sector Transport

Applicant B.V. Scheepswerf en Machinefabriek v/h A. van de Grijp, Papendrecht

Partner Yacht Dimension Thailand Co. Ltd, Banglamung

Recipient Global Boat Builders Co. Ltd, Banglamung




Summary:

B.V. Scheepswerf en Machinefabriek v/h A. van de Grijp sells and leases dredging and related equipment to industrial users.

The company wants to diversify its activities. Recipient Global Boat builders Co. Ltd was established in 2007 to become a

shipyard and a producer of high quality small size motorboats. Project partner Yacht Dimension Co. Ltd is a boat building

company in Thailand.

The project partners will set-up a boat building facility for the production of four types of boats (in length varying from 12.00 to

7.20 meters). During the pilot project production will be focused on boats with a hull length of 8.20 meter. The boats are made

from different layers of waste wood, polyester and epoxy composites. The project partners will invest in a production

infrastructure (a climate controlled production room with air-conditioning, vapour extraction equipment and dust collection

equipment, 3-phase power supply) as well as in production tools and equipment (moulds and surface working machinery, lift,

cranes, etc.). The third partner Yacht Dimension was given a contract for the construction of three prototypes. The project will

be located in the vicinity of Pattaya near Sattahip.

Results

• Business foundation/project inception;

• Boat building workshop and training facilities equipped;

• Employees are trained in boat building techniques;

• Business development and finalisation of the project.

Development effects

on knowledge transfer The project will train 25 direct employees.

on employment The project will create thirty direct jobs. In addition, six suppliers will be connected to the

project.

on impact environment The company will produce boats that are more than 20 percent lighter than comparable

boats. The project will only use waste wood, normal high quality teak wood, sourced from the

furniture industry. The production facility has excellent equipment to extract and collect

chemical vapours and dust from the polyester and epoxy processes.

on women The project will employ mostly men.

73

Vietnam

PSOM08/VN/01 Best practice on CSR and the introduction of FOB sustainable

garments productions in Vietnam

Location Hai Phuong

Sector Clothes & Textiles

Applicant Paks Trading B.V., Hilversum

Partner Solidaridad, Utrecht

Recipient MayHai Joint Stock Company, Hai Phong

Start project 01 September 2008



Summary:

The Dutch company Paks Trading B.V. is trading company in high quality and fashionable outwear and casual clothing. The

Vietnamese company MayHai Joint Stock Company is a producer of high quality shirts and pants for exports. The NGO in the

field of fair trade and environment, Solidaridad, is a partner in this project.

The three project partners will set-up a workshop with office and training space (4,000 square metres) to capitalise on the Free

On Board (FOB) garment business. FOB business generates significantly higher margins since the manufacturer is responsible

for the complete production process and thus sources the fabric himself, creating high added value compared to Cut-Make-Trim

business. CMT actually accounts for 80 percent of the export garments from Vietnam. In CMT production the producer only

provides the labour, while the customer provides all the necessary inputs.

The new workshop will produce 188,421 units of organic Free On Board cotton outwear and casuals for exports. The facility will

also include design, sourcing and sales departments. The new company intends to use 5 percent of organic raw materials in the

second year of operation (2010) increasing to 20 percent in the 6th year of operation.

The partners will provide its employees fair working conditions and will achieve the strict SA8000 certification. During

implementation a start will be made with the ISO14000 certification. Furthermore, the project will stimulate the use of organic

raw materials. The project will be located in Hai Phuong, Vietnam.

Results

• Inception and set-up of joint venture;

• Construction of workshop, office facilities and installation of machines and equipment;

• Recruitment and training of staff;

• Pilot production, setting up design, sales departments and ISO 9000:2001 certifying, pre-audit SA8000.

Development effects

on knowledge transfer The project will train all 400 direct employees.

on employment The project will create 400 direct jobs. In addition, twelve suppliers will be connected to the

project.

on impact environment The impact of the project on the environment will be positive. The production of cotton is one

of the most polluting processes in the world. However, for the production of organic cotton,

no artificial fertilisers are being used and the use of irrigation water is at a sustainable level.

In addition, the project partners will try to minimise the use of polyvinyl chloride (PVC) usage.

74

on chain The partners will need supplying companies for materials and services for the production of

the garments. In addition, under rules of CSR and organic clothing production, the project

partners will need support and consultancy from several NGO organisations. As the

production of organic cotton in Vietnam is new, the organic cotton must probably be sourced

from abroad. However, the project partners will try to stimulate the production of organic

cotton in Vietnam.

on women The project will employ 280 women (70 percent of the total amount of workers).

75

Vietnam

PSOM08/VN/03 The Nuoc Trong Tapioca CH4 CDM Project

Location Tay Ninh

Sector Energy / Environment

Applicant OneCarbon International B.V., Utrecht

Partner Business Support Associates Company Limited, Ho Chi Minh City

Recipient Nuoc Trong Tapioca Joint Stock Company, Tay Ninh Province




Summary:

The company OneCarbon B.V. is involved in projects that reduce the emission of greenhouse gases. The Vietnamese company

Nuoc Trong Tapioca Joint Stock Company is a factory that is processing cassava roots into cassava starch. Business Support

Associated Company Ltd. (BSAC) is involved in the project with regard to the development and administration of new Clean

Development Mechanism (CDM) projects in Vietnam.

The project partners will set-up a facility to capture and recycle methane gas produced out of the tapioca waste of the factory.

This will be done by means of lagoons, coated with HDPE liners preventing contamination of the ground water, in order to be

able to capture the biogas. Piping equipment will transport the methane gas from the lagoons to the factory. The factory itself

has to be renovated and adapted to run on the captured biogas.

The project will be submitted to the Designated National CDM Authority (DNA) for evaluation and approval. In addition it will be

registered for the Clean Development Mechanism (CDM) with the UNFCCC Executive Board.

The plant, generating 15,000 Certified Emission Reductions (EUR 8 per CER), will act as a showcase for other tapioca plants in

Vietnam. This could lead to future business for the business partners as the same principles could apply to these plants.

Results


• Commissioning of equipment and related training;

• CDM project registration and CDM and CER training;

• CER issuance realisation and sales;

• Project operations and completion.

Development effects

on knowledge transfer The project will train all six direct employees. Local knowledge is an important factor in the

effective application for CDM projects in developing countries such as Vietnam. Accordingly,

initially four persons to be employed by the project partner for this purpose will receive

extensive training in both the CDM project registration process as well as in the CER

issuance and realisation processes. The application of the gained knowledge and experience

are essential to the follow-up investments as well as to other CDM projects in the country.

on employment The project will create six direct jobs. No indirect jobs will be created by the project.

on impact environment The project will achieve that emission reduction by the tapioca factory of CH4 equal to

15,000 tons of CO2 will be achieved. The tapioca factory will end its use of an estimated

650,000 tons of HFO through the pilot project. The factory will meet all relevant environment

standards applicable in Vietnam. Bottoms of the lagoons will be sealed-off in order to prevent

contamination of the ground water.

76

on women The project partners intent to employ women.

77

Central and Eastern Europe

79

Albania

PSOM08/AL/03 Red meat development in the Shkoder Region

Location Shkoder

Sector Agro industry

Applicant VAEX Varkens- en Veehandel B.V., Reek

Recipient Meat Master Sh.P.K, Shkoder




Summary:

VAEX Varkens- en Veehandel B.V. specialises in the trade of piglets, slaughter pigs and cattle. The company exports

throughout the whole of Europe. Their strategy is to be one of the first companies active in an emerging market. VAEX

contributed to the opening of many new markets for Dutch supplies of live animals such as Bulgaria and Romania, Albania,

Bosnia and Herzegovina, Croatia and Moldova.

Meat Master (MM) is a meat processing company, processing 11 tons of meat per day into seventy different products.

There is no proper slaughterhouse in Albania. Slaughtering of live animals happens under the poorest conditions with no

attention to hygiene. Therefore the quality of local fresh meat is often bad and dangerous to public health. This forces Meat

Master to import frozen meat from countries like Argentina and Brazil, but the quality is also not very good. VAEX exports

slaughtering pigs to suppliers of Meat Master, but since there is no proper slaughterhouse, the quantity of animals remains low.

The partners want to establish a joint venture and to set up a slaughterhouse that complies with EU regulations, including

environmental regulations. In the mean time, they plan to train local farmers in pig husbandry. By realising a proper

slaughterhouse and developing the farm sector, VAEX expects to increase its supply of live animals for slaughter initially, and

live animals for breeding/fattening purposes in a later stage. Meat Master sees a good market opportunity in the fresh meat

market, since it does not really exist at the moment in Albania. The availability of fresh meat will improve the quality of its current

products. The slaughterhouse will be located in the region of Shkoder.

Results

• Business partnership established;

• Building finalised;

• Slaughterhouse ready for operation, workers and butchers trained;

• Development of animal health awareness, professional training of farmers, supply of last hardware;

• Slaughterhouse fully operational and ISO 22000 certified.

Development effects

on knowledge transfer Fifteen employees of the joint venture will be trained in the following activities, which are new

for Albania: waste water treatment, meat cutting, packaging, stunning of animals, offal

treatment. Furthermore between ten and twenty farmers will be trained in better farm

management.

on employment During the implementation phase fifteen direct and 25 indirect jobs are created. During the

spin-of phase this will be 29 and fifty.

80

on impact environment A water treatment installation will foresee in reusing water where possible, according to EU

standards.

The slaughterhouse will decrease the illegal slaughtering practice. Regulation will prevent

that people will burry offal, blood products and other things in the ground resulting in risk for

human and environment (Anthrax).

on chain The slaughterhouse will have a positive impact in both directions of the chain. In the first

place farmers will be stimulated to increase their amount of animals and to improve their

farm management system. Secondly meat processors get access to fresh meat which will

improve the quality of their products substantially and supermarkets get access to fresh

meat. Finally third parties can also use the services of the slaughterhouse, also competitors

of MM.

81

Bosnia and Herzegovina

PSOM08/BA/02 Manufacturing plant veterinary pharmaceuticals

Location Sarajevo

Sector Chemical Industry

Applicant Tiofarma B.V., Oud-Beijerland

Recipient Pharmed D.O.O., Sarajevo


End project 30 September 2010


Summary:

In Bosnia and Herzegovina currently all veterinary pharmaceuticals are imported. Since 1995, over 2,000 veterinarians, 500,000

animal owners and 20,000,000 head of livestock have relied solely on imports for their veterinary pharmaceutical needs. The

assortment is small and the prices are high.

The companies Tiofarma BV and Pharmed D.O.O will jointly capitalise on this business opportunity and start local production of

veterinarian pharmaceuticals in BiH. Tiofarma (TF) is a pharmaceuticals producer, specialised in magistral preparations (non

registered medicines) and small series production. The company is looking for new niche markets abroad. The local company

Pharmed is a small trading company in pharmaceuticals and a consultancy company in the field of food safety procedures.

A GMP (Good Manufacturing Practice) production plant for veterinarian pharmaceuticals will be built and a fitting marketing &

sales organisation will be set up. A quick start of the business is assured through the sales of magistral preparations - for which

a GMP certificate is not necessary. Sustainable long term growth of the business will take place through the registration and

sales of own production. The project will have an impact on the whole sector. As availability of cheaper and more varied

medicines will have a positive impact on the general health of the current livestock in Bosnia and Herzegovina and therefore on

the production ratio of this livestock and the income level of the owners.

Results

• Establishment joint venture;

• Construction factory, recruitment people, start training GLP and GMP. Installation processing line for sterile and non sterile

products;

• Pre-audit production facility;

• GMP and GLP certification, first sales of magisterial preparations and registered medicines.

Development effects

on knowledge transfer High tech knowledge will be transferred to BiH employees.

on employment The joint venture will create 25 jobs during the implementation phase and ten during the

spin-off phase. Indirect jobs will be six in each phase.

on chain The project will have huge impact on the sector. Availability of cheaper and more diverse

medicines will have a positive impact on the general health of the current livestock in BiH

and therefore on the production ratio of this livestock and the income level of the owners.

Furthermore the joint venture will need the following suppliers of products and services:

cleaning companies, packaging materials, security, IT, accountancy.

on women Equal chances will be given to women.

82

other The project will increase the level of knowledge of government employees as well. The

project will 'confront' them with EU standards and 'enforce' them to upgrade their regulations

and procedures. So the project will have an institutional spin-off effect as well.

83

Bosnia and Herzegovina

PSOM08/BA/03 Efficient vegetable production in a Fiwihex greenhouse in Bosnia and

Herzegovina

Location Ljubuski

Sector Agriculture

Applicant De Groene Tuin B.V., Berlikum

Partners Ter Beek Beheer B.V., Oldenzaal

Hydro Systems International d.o.o., Bugojno

Recipient Vegic Commerce D.O.O., Ljubuski




Summary:

De Groene Tuin B.V. is a horticulture company, cultivating vegetables (tomatoes and sweet peppers) in greenhouses with a

total surface of 20 hectares in Berlikum (Friesland). The main part of the produce is sold on the Norwegian and English market.

One of the problems De Groene Tuin faces is the restriction in serving its main markets in the period December - March due to

high costs of heating their greenhouses and a shortage of daylight in the winter period.

Vegic Commerce D.O.O. is a Bosnian grower with 1.7 hectare of greenhouses in the South-West part of Bosnia and

Herzegovina (BiH). The company started in 2003 with production of vegetables (mainly tomatoes) in a used glasshouse. To

make it possible to take new steps, the company wants to cooperate with De Groene Tuin and to make use of the newest

techniques and opportunities created by the use of the Fiwihex system. This is a very efficient and energy-saving heat

exchanger, facilitating energy-neutral production in greenhouses. Ter Beek Beheer B.V. (TBB) was involved in the development

of the Fiwihex heat exchanger. The 100 percent Bosnian daughter company HSI assembles these heat exchangers in BiH.

The four partners will build and operate a modern equipped Fiwihex greenhouse (of 0.65 hectare) in Ljubuski, South-West part

of BiH. The greenhouse will cultivate tomatoes in an efficient and energy neutral way, also during the winter period. The

vegetables produced in the greenhouse will be sold to local and regional markets, and during the winter period the produced

tomatoes will be available for De Groene Tuin for delivery to its customers in Western Europe. In this way, De Groene Tuin can

supply its customers the whole year round. The project will stimulate agricultural activities in the region.

Results

• Setting up a joint venture between the four partners;

• Delivery and installation of the greenhouse and additional hardware (climate control system, fiwihex system);

• Commercial production and operation of the greenhouse, EuroGAP certificate.

Development effects

on knowledge transfer The greenhouse manager and the first assistant will be trained in the Netherlands. A Dutch

expert will visit the project the first six months at least one week a month. Employees will be

trained in modern greenhouse cultivation techniques, environmental friendly production

techniques, maintenance of the equipment and in controlling diseases. The manager will be

trained in management techniques.

on employment During the project ten direct and ten indirect jobs will be created. During the spin-off phase

another ten direct and indirect jobs will be created.

84

on impact environment The project will show the following environmental effects:

Savings of energy and water. This is done by using fiwihex equipment and collecting and re-

using water. The savings of energy are huge. A conventional greenhouse of

0,65 hectare needs approximately 1,860,000 kilowatt-hour per year for ten months

production. A fiwihex greenhouse only 200,000 to 300,000 kilowatt-hour.

Reduced production and disposal of waste: Water (with chemicals dissolved in it) will not be

washed into the ground but re-used (closed re-circulation system). No more outdated

fertilizers (such as manure with nitrates and phosphates) will result as waste. The

saving will be made possible by the use of modern equipment and modern fertilizers.

Reduced use of chemicals; The greenhouse will make use of biological techniques, which

means that no pesticides will be used at all.

on chain The joint venture will source fertilizers and packaging material from local companies. In

addition, distributors and logistic companies will be approached for transport services of the

vegetables to the wholesalers/retailers. When the project has been successfully

implemented, partners expect the project will attract other (foreign and local) investors in the

greenhouse sector in the region.

on women Women will be encouraged to apply for jobs within the greenhouse. At least 50 percent of the

created jobs in the greenhouse will be reserved for women.

other The project might also lead to increased export volumes of vegetables from Bosnia-

Herzegovina to surrounding countries in the Balkan region and to the Netherlands and on

longer term to other Western European countries. This will contribute to the sustainable

economic development of the country.

85

Latin America

87

Brazil

PSOM08/BR/01 Creating a Sustainable cashew nut sector in the North-East of Brazil

Location Teresina, state of Piauí - Brazil

Sector Agriculture

Applicant Amberwood Trading B.V., Rotterdam

Recipient Exportadora Florenzano Ltda, Belém state of Para




Summary:

Amberwood Trading B.V. in Rotterdam, is a company specialised in the trade of several tree nuts and ground nuts, as well as

coffee and spices. Amberwood enters into a partnership with the Brazilian company Exportadora Florenzano Ltda. in Belém,

state of Pará, which produces, trades and exports Brazil Nuts (Para nuts), for which it operates a processing plant in Oriximiná,

state of Pará.

The cashew nut production in Brazil takes place in the north-eastern region, with a strong concentration in the state of Ceará.

About 45 percent of the cashew orchards are located in this state and all five major processing plants are located in its capital

Fortaleza. The states of Piauí and Maranhão, together count for 20 percent of the cashew producing trees, but apart from a few

small artesanal processors (that do not comply with international food safety and health regulations), their nuts cannot be

processed locally, and have to be transported (up to 1,200 kilometres) to Fortaleza for processing.

In the state of Piauí, the Brazilian government donated 9,000 hectares of land to some 300 poor families, landless farmers, from

the city slums.

Of this land 6,000 hectares is planted with cashew trees. The new farmers however, have little knowledge of cashew cultivation

and therefore get small returns on their production.

The two companies Amberwood and Florenzano will set up a joint venture that will operate a processing factory annex support-

and knowledge centre, with the objective to produce good quality and high volumes of nuts originating from small farmers. The

company’s agronomists will take care of farmer education, putting up a nursery and replanting of new breeds while the

processing factory will daily pick up new produce from the farmers. The produce will be dried, processed and packed centrally

for export; all done by the former landless people. An educational and medical centre will be started to safeguard the social

conditions of the families.

Results

• Project inception, establishment of the joint venture;

• Processing plant finished and operational;

• Support & knowledge centre, training of staff and farmers finalised;

• Commercial production started, certification of facility, business plan, market introduction activities and project completion.

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Development effects

on knowledge transfer All 200 factory staff will get basic training to operate and maintain the plant, as well as in the

food health and safety requirements for certification. In the knowledge centre, ten coaches

and three agronomists will get training and pass this on to the 260 farmer families.

on employment The project generates 220 full-time jobs during the project, being 200 in the plant and

another twenty in the nursery/education centre.

on impact environment Effects on the environment will be positive.

With good farming practices the use of pesticides and fertilizers can be reduced to a

minimum. The goal is to convert idle lands into organic plots generating organic cashew nuts

after five years, which can be sold at a premium.

The factory will use less chemicals than usual and all waste materials (cashew shells) will be

used to create energy for the factory process (burned to generate steam), this is new for

Brazil. For the joint venture partners it is an economically attractive proposition, reducing

energy costs.

on chain Main benefit is the fact that local farmers will be offered the opportunity to improve their

cashew production, get all needed support from the factory and have a guaranteed buyer of

their produce against fair prices. This enables them to earn a steady regular income.

on women The impact will be positive, since 150 (of the total 220) contracted employees are expected

to be women.

other The company will provide the construction of a medical and educational centre at the project

premises, supporting the education of the children and adults and taking care of direct

medical care. This is part of the chain approach of the joint venture and is essential to build a

sustainable business.

HIV prevention will take place, because AIDS undermines the capacity of the work force.

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Brazil

PSOM08/BR/02 New products through the improved use of wood at the Rainbow

Sawmill in Santarem State of Para

Location Santarem, state of Para Brazil

Sector Energy / Environment

Applicant Rodenhuis Holding Almere B.V., Soest

Partners - BTG Biomass Technology Group B.V., Enschede

- PTZ Bioenergy Ltda, Porto Alegre RS

Recipient Rainbow Trading importacao e Exportacao Ltda, Santarem




Summary:

Rainbow Trading Importação e Exportação Ltda in Santarém, state of Pará, processes tropical wood into finished and semi-

finished products (mainly floors). It is a daughter company of Rodenhuis Holding Almere B.V., a trader in tropical wood products

and semi manufactured tropical wood parts.

Rodenhuis and Rainbow are planning to set up a production line of hardwood lamella's, to get a higher floor production out of

their limited raw material supply. The availability of the raw material is limited as the Brazilian authorities are imposing more

stringent conditions for the cutting of hard tropical wood, and the sawmills just are not able to purchase enough prime quality

trees to keep the production running at nominal capacity.

Instead of producing massive hardwood floors (20/25 millimetres thick), the partners are considering to produce 4 millimetres

lamella's of the noble hardwood, to be glued on lower-grade base floors, increasing the end-product yield (square metre of

hardwood floors per cubic metre of raw trees) with a factor 5 to 6. The production of lamella's involves a significant increase of

sawing/shaving operations, and an investment in new machines that must operate in two to three shifts to be profitable. To

make this production line feasible, reliable and low cost electric power is a must. However, the electricity supply in the Pará

region is very unreliable, with frequent power interruptions and extreme high prices for industries during night hours. Therefore

Rainbow will install a micro power plant (MPP) operated on wood chips and sawdust to generate steam to drive the electricity

generator, taking advantage of the huge amounts of biomass (waste wood) available at the own company. Project partner BTG,

in Enschede, will manage the process for the sales of Carbon Credits resulting from the project.

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Results

• Project inception, incl. MPP- and lamella factory design, power supply agreement to grid;

• Civil works and implementation of all equipment;

• Recruitment and training of staff; preparing and approval of Carbon Credits documentation;

• Commercial production started, business plan, market introduction activities and project completion.

Development effects

on knowledge transfer At least thirteen persons will be trained in the production of lamella's and four persons will be

trained in the operation and maintenance of the power plant.

on employment The project generates 22 full-time jobs during the project, sixteen in the lamella production

line and six for operation and maintenance of the MPP. This number increases to 58 two

years after the project.

on impact environment Effects on the environment will positive on two fronts:

The utilisation of the sawdust and other wood waste as a fuel to generate electricity, will

1) directly reduce fossil fuel consumption. Furthermore, the sawdust mountain if left at the

open air, generates methane, a powerful greenhouse gas. Eliminating or reducing the

pile of sawdust, will reduce GHG emission.

2) the production of lamella's results in a much lower requirement of noble tropical timber per

square meter floor final product. Consequently, the need for cutting valuable (old)

tropical hardwood trees, is significantly reduced.

on chain A positive effect of the pilot will possibly be the model role, that could induce other wood

processors to generate their own electricity using waste wood.

on women The impact will be neutral, most probably the work in the factory will be done mostly by men.

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Ecuador

PSOM08/EC/01 GROWING GREEN organic farm made & hand-tied bouquets

Location The abandoned farm "El Modulo Alegria" in Cayambe, north of Quito, Ecuador

Sector Agriculture

Applicant Esmeralda Farms B.V., Aalsmeer

Recipient Operadora Floricola Operflor Cia. Ltda, Parroquia el Quinche




Summary:

'Growing Green', a new farm to be established in the Ecuadorian highlands north of Quito, will focuss on the organic production

and processing of flower bouquets. The market for organic flowers is growing steadily, mainly in North America, Germany,

Switzerland and France, with a sales price per stem higher than conventional flowers. However, the lack of year-round

production and the small number of varieties limit its marketing potential. While demand is currently exceeding supply, only a

limited number of growers will be able to respond to this business opportunity, since organic farming is complex and the shift

from organic to traditional cultivation takes a long transition period.

The knowledge and skills of Esmeralda Farms BV, an importer of cut flowers based in Aalsmeer, the Netherlands, combined

with the availability of a suitable terrain, and the expertice of the Ecuadorian company Operadora Florícola Operflor Cía Ltda

('Operflor') enables the business partners to respond to this business opportunity.

The partners in 'Growing Green' will renovate and transform five hectares of the abandoned farm 'El Modulo Alegría', that is

already in possession of Esmeralda, into a completely organic flower farm. At the farm, ten different flowers will be produced

and processed into hand-tied bouquets for export. USDA, EU and Swiss organic certifications will be obtained. Bouquets will be

transported to Esmeralda in Florida, for distribution and direct sales in the United States, and Esmeralda Farms in Aalsmeer for

sales to customers throughout Europe.

Results


• Pilot farm operational;

• Organic & FLP certification and training programme finalized;

• Business development;.

Development effects

on knowledge transfer The project will introduce advanced knowledge of organic production to the Ecuadorian

flower sector. Since organic production requires more hand labour than traditional cultivation,

all staff will be trained in organic cultivation techniques.

on employment Direct employment at the end of the project will be fifty new, full-time jobs. Two years after

the project the number of full-time employees of the joint venture will have grown to 195.

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on impact environment Impact on the environment will be positive. Organic production minimizes damage to the

environment. Flowers are cultivated in natural conditions, without artificial fertilizers and

pesticides. The farm will obtain European, US and Swiss organic certifications. After

successful implementation the project might lead to additional growers engaging in organic

flower cultivation in Ecuador. This will further reduce environmental burden and strengthen

the sustainability of the Ecuadorian flower sector. Finally, the sleeves used for transporting

the bouquets will be biodegradable.

on chain Impact on the chain is limited to additional activity at the recipient and at logistical companies

from the area.

on women Around 60 percent of the positions will be occupied by women.

Other The joint venture will obtain certification of the German Flower Label Program (FLP). This

certification scheme guarantees the implementation of workers rights and activities to protect

the environment. The socio-economic component of the programme includes a good level of

wages, freedom of association and health care. Several basic medical programmes will be

carried out for the employees.

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Ecuador

PSOM08/EC/02 Solar Powered, GlobalGAP certified sustainable shrimp farm

Location Robles 109 y Chambres, Guayaquil

Sector Fishery

Applicant Primstar B.V., Hendrik Ido Ambacht

Recipient SONGA, Guayaquil




Summary:

The company Primstar B.V. is specialized in marketing, sales and distribution of frozen seafood, with own facilities in Mexico,

Nigeria and China. The Ecuadorian company Sociedad Nacional de Galapagos C.A. ('SONGA') focuses on the processing and

packing of shrimp.

Both business partners will set up a sustainable, solar-powered shrimp farm with GlobalGAP certification in Ecuador.

GlobalGAP certification and the use of solar-power are both new for the Ecuadorian shrimp cultivation sector. Partners will

actively work on dissemination of these aspects, in order to set this farm as an example for the sector.

This investment decision is prompted by the fact that, on the one hand, the recipient is required to improve its cultivation

methods as a consequence of growing worldwide concerns over the ecological impact and quality of the shrimp cultivation

sector. The applicant, on the other hand, currently needs additional supply to meet growing European demand for high quality

shrimp. Finally the applicant would like to ensure that high quality and sustainability levels are also met by the overseas

producers.

This new company will grow pacific white shrimp on a total surface of 340 hectare. For this purpose, an abandoned shrimp farm

located in the coastal lowlands 50 kilometres northwest of Guayaquil will need to be renovated and adjusted. The facility will

consist of a nursery and grow-out ponds. Quality control systems and certification will ensure the production of high quality

shrimp under eco-friendly conditions. GlobalGAP has developed a new, far-reaching certification scheme for shrimp that was

approved in March 2008. After harvesting, shrimp will be processed by the recipient before being transported to European

retailers.

Results

• Start-up;

• Shrimp farm completed and equipment installed;

• Contract and training of sixty employees;

• GlobalGAP and HACCP certification, sales, promotion, bankable business plan and final report.

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Development effects

on knowledge transfer All employees will be trained in cultivation techniques. Furthermore, employees will be

trained to install, maintain and operate the solar power equipment. Staff will be trained in

improved tracking and tracing procedures.

on employment Direct employment at the moment of finalisation of the project will be 63 new, full-time jobs.

This will grow to 199 permanent jobs two years after the project.

on impact environment The impact on the environment will be neutral to positive. The project will be GlobalGAP

certified and will therefore meet the environmental requirements of these certification

schemes. This scheme is currently the most far-reaching certification on environmental

issues, covering more aspects than organic certifications such as Naturland.

No antibiotics will be used. For the cleaning of water before it is drained off in open water,

new mangroves will be used in an effluent treatment system. This technique is proven, but

not yet widely used in the sector. Finally, the use of solar power will reduce the emission of

CO2 by diesel generators.

on chain The effects on the chain are to be found in the fact that partners are willing to disseminate

the application of GlobalGAP and solar energy in the Ecuadorian shrimp sector. This will

influence the sustainability of the sector, reduce the risk of diseases and strengthen its

position vis-à-vis other shrimp producing countries.

on women No specific measures will be taken to improve the position of women. All employees working

on the farm will be male.

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Ecuador

PSOM08/EC/03 Introduction of Precision Agriculture among smallholder producers of

fair-trade and organic bananas

Location Province of El Oro, in the region that includes the cities of El Guabo, Machala and Arenillas,

Ecuador

Sector Agriculture

Applicant AgroFair Europe B.V., Barendrecht

Partners - Asociacion de Pequenos Productores Bananeros "El Guabo"

- Stichting Agrofair Assistance & Development (AFAD), Barendrecht

Recipient OKEGUABO Cia Ltda, El Guabo - El Oro




Summary:

The partners in this project, Agrofair, an importer of fair-trade fruits from Latin America and Africa, and Okeguabo, a company

owned by producers of bananas in Ecuador, will introduce precision agriculture to smallholder producers. The introduction of

these new techniques is a response to the current situation in which Agrofair is confronted by growing consumer demand for

fair-trade and/or organic bananas and is unable to meet market demands with production from its own suppliers. The

Asociación de Pequeños Productores Bananeros El Guabo (Asoguabo) as its principal supplier has limited resources to

professionalize their production and increase volume. Asoguabo incorporates around 400 smallholder producers.

Competition in the market is also increasing since the large multinational competitors, such as Dole, Chiquita and Del Monte,

are engaging in the production of organic bananas. This project will strengthen the capacity of small producers to compete with

those initiatives.

During the pilot a communal banana plantation of 60 hectares with precision agriculture will be set up. Consequently, an

integrated quality and information management system will be established for all the members of the Asoguabo. Finally, an

aerial precision spraying service will be started in order to make aerial spraying available to the smallholder members of

Asoguabo. As a result of the project, the communal farm will provide additional supply in times of high prices and consumption

of bananas. This benefits both Agrofair as well as the Asoguabo. Through the quality management system, small producers

have been able to improve their cultivation, reduce the emergence of banana plant diseases and realize higher volumes per

hectare, meaning additional income.

Results


• Communal farm set-up;

• Integrated quality and information management system operational;

• Aerial precision spraying service set up;


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Development effects

on knowledge transfer Technology and knowledge of cultivation methods that until now have only been available for

banana multinationals such as Dole and Chiquita will be made available to 400 small

producers of the Asoguabo. This includes the Banaxass software system and increased

knowledge among small producers of irrigation, seeding techniques and fertilization.

Furthermore, the fifty staff of the communal farm will be trained in organic cultivation of

bananas to be able to operate the farm. The twenty technical staff of Asoguabo will be

trained in working with the different tools of precision agriculture in order to be able to

disseminate this knowledge to the smallholders by means of technical assistance and

training courses. A total number of 25 staff and 85 quality inspectors will be trained in various

topics.

on employment Direct employment accounts for 64 new, full-time jobs. Around 52 jobs will be created at the

cooperative to run the communal farm. Ten additional jobs will be created at Asoguabo to

administer the sales of the communal farm and to organize the dissemination of technical

information among the small producers. Okeguabo will employ two persons in management

and administration of the project. The number of direct jobs grows to 115 at the end of the

spin-off phase.

on impact environment Precision agriculture optimizes growing conditions. This results in a reduction of water

consumption and pesticide use. Furthermore, the communal farm will be GlobalGAP and

organically certified.

on chain The impact is mainly to be found in the reinforcement of small producers' cultivation

methods. This results in a substantial increase of production per hectare and thus in

additional employment. Furthermore, the project will serve as an example of the

implementation of efficient and technically advanced production methods among smallholder

banana producers.

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El Salvador

PSOM08/SV/01 Plant pots from recycled scrap plastic in Antiguo Cuscatlán,

El Salvador

Location Antiguo Cuscatlán, El Salvador

Sector Chemical industry

Applicant Akker Exotic Plants B.V., De Lier

Partner AKG Aufderhaar Kunststof Groep B.V., Vroomshoop

Recipient Plásticos Salvadoreños S.A. de C.V. (Salvaplastic), San Salvador




Summary:

Akker Exotic Plants B.V. ('Akker'), is an importer and wholesaler of tropical plants from De Lier, the Netherlands. The company

mainly imports from Central America and sells to growers and retailers in Europe. Plásticos Salvadoreños S.A. ('Salvaplastic'),

is a Salvadoran producer of plastic products such as milk containers, baskets, bottles and cloth hangers.

Central American countries are among the largest producers of tropical plants. Many of these plants are sold on the European

market through Dutch importers. However, plastic pots are not produced in Central America and in the current situation mainly

imported from the United States. These pots are of inferior quality, causing damages to the product during shipment to

The Netherlands.

The partners in this project now wish to substitute current import and will establish a facility for the production of plant pots. They

will start the producing of a higher quality product against lower costs, made from recycled scrap plastic. Because of its

technical know-how of producing sophisticated pots, Dutch producer AKG will be a partner in the consortium. The new factory

will produce and market different sized pots for the Central American market, allowing growers throughout the region to buy

better quality pots at a competitive price. This results in a better product as importers will face less damages during transport.

Furthermore, the project will have significant impact on the environment as it stimulates the recycling of scrap plastic in El

Salvador and neighbouring countries.

Results

• Business partnership established;

• Pilot accommodation established, employees contracted, training executed, start-up of production prepared;

• Production and sales of plant pots;

• Marketing and business development.

Development effects

on knowledge transfer Introduction of new techniques such as thin-walled injection moulding from recycled plastic

applied to high quality plant pots. The project also raises the skills and knowledge level of

Salvaplastic and will enable the company to broaden its range of technologically advanced

plastic products in the future.

on employment Direct employment at the end of the project will be nineteen new, full-time jobs. Two years

after the project this number will have grown to 39.

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on impact environment The project will lead to increased recycling of melon plastic and other waste, since the pots

will be made (almost) entirely of recycled material. This reduces part of the waste problem of

El Salvador. Furthermore, it diminishes the use of raw material (crude oil), the pollution that

accompanies the production and discharge of plastics.

on chain The project will result in additional employment for the companies involved in the collection

and processing of scrap. It is expected that the project will stimulate the establishment of

new SME's for the collection of plastics. Further up in the chain, the main impact is to be

found in a stronger position for Central American growers, since they will be able to offer a

better quality product to the international market. Finally, several logistical companies will

benefit from the need to transport pots to the growers.

on women Partners anticipate that 55 percent of the available positions will be occupied by women,

which is certainly above average in the industrial sector.

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Peru

PSOM08/PE/01 Natural Plant Oil Production in Ucayali

Location Campo Verde in the province of Ucayali Peru

Sector Bio Energy

Applicant Bioshape Holding B.V., Neer

Recipient VWP-Latinoamerica S.A.C., Lima




Summary:

BioShape Holding B.V. in Neer, has concessions for the construction of several powerplants, and is developing the large scale

production of biofuels to operate these plants.

Vereinigte Werkstatten Fur Planzenöltechnologie Latinoamerica S.A.C. (VWP) has been involved in the development of natural

plant oil (NPO) as a fuel, and the installation of conversion kits for diesel engines, since it started operations three years ago.

They have been producing Jatropha oil on 60 hectares in northern Peru, San Martin department, and have converted thirty

buses in Lima as a pilot.

Peru has implemented legislation that will make obligatory, from 2009 onwards, to blend a minimum of 2.5 percent of bio diesel

into the natural (fossil) diesel fuel. This will require large volumes of plant oils on a very short term, to supply the biodiesel

production industry. Besides, an experiment with city buses in Lima has been successfull, and has generated a strong demand

for NPO as well as for conversion kits.

Therefore, project partners have the intention to start a pilot Natural Plant Oil production chain in Peru, based on the plantation

of 500 hectares of Jatropha and 250 hectares of Sunflower, coupled to a processing facility with a capacity of 450,000 litres

NPO per year. In addition, another 100 hectares will be planted with Jatropha or Sunflower, in cooperation with small farmers in

the region, laying the foundations for a further extension in the follow up fase. Peru has vast areas of land that can be used for

biomass cultivation.This should ultimately result in some 20,000 hectares of Jatropha plantations in the region, of which the

applicant will be importing the Jatropha seeds to process in the Netherlands.

Results

• Project inception, joint venture establishment;

• Establishment of Jatropha and Sunflower plantations;

• Processing facility, with pressing mills, filter installations and storage realised;

• Commercial operation started, fifty buses converted, Marketing Strategy finalised, knowhow transfer to bus companies in

Lima;

• Cramer certification initiated.

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Development effects

on knowledge transfer Introduction of knowledge and new technology in the field of: direct seed technology, setting

up of nurseries, Jatropha crop cultivation, decentralised NPO production, ecological and

sustainable production of Jatropha and Sunflower seeds, diesel engine retrofitting in

order to use NPO as fuel.

on employment Direct employment generated by the project is estimated to be 100 FTE for operating the

processing plant and maintaining the plantations at the end of the pilot, increasing to 150 two

years later.

on impact environment The impact of the project on the environment will be positive. The NPO from Jatropha and

Sunflower is CO2 neutral and it does not contain sulphur. The emissions of particles from

NPO is 50 percent lower compared to diesel fuel.

As the project wil generate income for poor farmers there, it eliminates the need to cut and

sell tropical trees for extra income. The plantation of Jatropha trees will prevent erosion and

will absorb CO2.

on chain The project involves five local communities of small farmers, who will grow Jatropha as a

side crop. These communities will receive the Jatropha seed, receive instruction and training

how to plant and maintain the plants. Farmers who decide to grow sunflowers (as

intercropping) will be able to sell their sunflower seeds to the joint venture, but this culture

will not be stimulated, as Jatropha has a larger yeld.

About 200 indirect jobs will be created for the harvesting of the Jatropha seeds.

on women Harvesting of Jatropha seeds will be done by men and women indiscriminately, therefore

about 50 percent of the positions in harvesting and in the processing plant will be held by

women.

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Peru

PSOM08/PE/02 Socially responsible confectioning of basic garments by associated

microenterprises in Arequipa

Location Arequipa, Peru

Sector Clothes and Textiles

Applicant Majorie Holding B.V., Aerdenhout

Recipient Franky y Ricky S.A., Arequipa




Summary:

The international market for organic & fair trade garments is growing strongly. Especially in Northwest Europe, demand for

basics (T-shirts and simple polo shirts) from large retail chains like Albert Heijn, Lidl and Carrefour, is booming, though clothing

is not even their core business. The project partners, the Ducth company Majorie Holding involved in the garments sector, and

the local Peruvian company Franky & Ricky SA (F&R), specialised in the production of high quality fashion garments of knitted

cotton, would like to enter this market, but their present production set up and technology is too expensive for these low value

products.

The confectioning department at F&R is fully dedicated to the time consuming production of ‘fashion garments’ or ‘specialties’,

for the high end export market - top quality sweaters and shirts with complex fabrics, multi-coloured, with embroidery and

various labels and tags. The outstanding quality of workmanship and raw materials allows the company to charge relatively high

sales prices. Otherwise, it would not be able to compete with low-cost producers in Asia, due to considerably higher costs of

production in Peru. Contrary to fashion garments, however, the confectioning of basics is relatively simple and standardized. To

work efficiently and competitively, the confectioning of basics requires a totally different technological and organizational set-up

than for fashion garments.

In order to respond to this business opportunity Majorie and F&R will bring ten micro-enterprises together in a collective

workshop on one central location in Arequipa to overcome the present drawbacks of their small and dispersed operations. This

aproach would allow them to efficiently organize and standardize the production of basics and achieve an economy of scale of a

large enterprise. They can jointly make use of efficient equipment, too expensive for a single micro-enterprise, and deliver

training and transfer know-how effectively. Finally a clean and safe working environment will be provided to the workers and the

cooperative enterprise could be certified for SA8000.

Results

• Joint venture establishment, contracts with micro-enterprises, workshop design and training programme complete;

• Confectioning workshop established according to SA8000 standards;

• Employees of selected micro enterprises trained, Social fund set up;

• Business development, certification and production of first 200,000 quality basics, of which at least 50 percent organic.

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Development effects

on knowledge transfer Technology introduced by the project, which is new for F&R and the region, comprises:

autoclaves for textile dyeing, which require much less time, water, energy, chemicals and

colorants compared to dye tubs;

automated cutting machine (instead of manual cutting as is required for more complex

products);

semi-automated confectioning line for high productivity.

Most of the employees of the micro-enterprises will have had no previous experience in the

sector and therefore a considerable amount of training is foreseen.

The SA8000 compliance will require comprehensive training of the micro-enterprises' staff,

not only in technical skills, but also in social responsibility issues.

on employment The project will generate 113 direct jobs, being 109 at the ten micro enterprises, and four at

the joint venture (technicians and workshop managers).

on impact environment The project’s impact on the environment will be very limited. The joint venture intends to

maximise the use of organic cotton, which is a very clean alternative to the pollution

associated with conventionally grown cotton. Health problems related to the use of chemicals

in agricultural production are avoided in organic production.

The autoclaves introduced by the project will consume 65 percent less water and 50 percent

less energy than the dye tub technology presently used.

F&R’s textile department has proper waste water treatment facilities that remove remaining

chemicals and colorants from effluent water before disposal in the municipal sewage system.

on chain The proposed production of basics is the end of a production chain that starts with (organic)

cotton produced by growers in other parts of Peru. Already in the first year of production the

joint venture will buy close to 50 tons of organic yarn, rapidly increasing to 150 tons in five

years. This additional demand will provide a strong impetus to cotton growers to expand

organic production.

The cotton is ginned and spun at specialised companies in Peru that will also benefit from

the increased demand for their services. Cotton gins tend to be owned by small and medium-

sized companies, whereas the capital-intensive spinning is performed by large sized

companies.

on women The majority of the positions (at least 75 percent) in confection plants are traditionally

occupied by women. This will not be different in this pilot project. At least 75 women will be

contracted.

other The Social Fund, fed by the premium on the sales, will allow extra facilities for health and

medical care, training on health and HIV, special medical treatments and other social

facilities for the well-being of the workers and their family members.

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Peru

PSOM08/PE/03 Dairy Cow Breeding facility

Location Casa Grande, La Libertad near Trujillo, Peru

Sector Agriculture

Applicant Brouwers Equipment B.V., Leeuwarden

Partner Agro Industria Casa Grande, La Libertad

Recipient Agropecuaria Chachani S.A.C closed stock company, Santa Catarina La Victoria




Summary:

Brouwers Equipment B.V. in Leeuwarden (Brouwers), is specialised in the commercialisation of optimised dairy cow stables.

Agropecuaria Chanchani SAC (Chanchani), was founded in 2007 in Peru, to formalise a side activity of the Gloria dairy group,

namely the import of dairy cows and distribution to farmers, with the objective of increasing the milk production in Peru.

Partner Agro Industria Casa Grande SAC (Casa Grande), is an industrial farm, exploiting 20,000 hectares of sugarcane

plantations on the Peruvian coast, near Trujillo.

The dairy divisions of the Gloria group are in a continuing need of increased milk supply. It is the main limiting factor for growth

of their activities. Since 1997 Gloria has imported Holstein cows from Uruguay and most recently from New Zealand, to

sell/distribute to their milk suppliers, in order to improve their milk production. Due to increasing world grain prices, raising of

dairy cows has become significantly more expensive, and international cow prices have skyrocketed accordingly.

Project partner Casa Grande has substantial quantities of byproducts (the tops of the sugarcane, called cogollo), that are

wasted in the sugarproduction process. Since this cogollo has excellent nurishing value for cattle partners saw an opportunity to

start their own dairy cow reproduction/raising activities.

For this purpose they decided to form a joint venture with Brouwers, and to build a state of the art stable, in which they intend to

produce 400 dairy cows/year. For Brouwers this joint venture means access to the market in Peru. The new stable will be a

show case for their knowledge and quality products. Brouwers intends to start sales via a network of distributors and will realise

stables in various sizes in Peru.

Results

• Project inception, joint venture establishment;

• Stable with nursery and milking station operational;

• Training and Feed infrastructure implemented;

• Commercial operations started.

Development effects

on knowledge transfer The work plan foresees in an extensive training programme aimed at the contract farmers,

who will be trained to improve their milk production and take better care of their higher value

cows.

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on employment Direct employment generated by the project is estimated to be 45 FTE being twenty (both

male & female) in the stable and 25 (mainly men) for handling the sugar cane leaves and

preparing the silage feed.

Indirect generated jobs are a lot more difficult to be determined, but are estimated to be

another 100 FTE at the small farmers' milk operations.

on impact environment The project will have a positive impact on the environment, as it will significantly reduce the

burning of the sugar cane leaves on the fields.

on chain The project is expected to generate around 100 FTE of employment with contracted farmers,

as they will be milking 800 additional cows after two years.

on women The majority of the positions on the land will traditionally be occupied by men. In the stable a

50 percent female staff is expected.

105

Surinam

PSOM08/SR/01 Galvanized wire from Suriname

Location Paramaribo - Suriname

Sector Industry

Applicant Van Otterloo Beheer B.V., Hendrik Ido Ambacht

Recipient Mora Metalworks N.V., Paramaribo




Summary:

The two companies in the project have an established business relation since the delivery of machinery from

Otterloo Beheer B.V. (through Van Otterloo Machinefabriek) to the company in Suriname Mora Metalworks many years ago.

This company produces, amongst others, corrugated sheets, roof gutters, aluminium slats for ceilings, aluminium windows and

doors and wire products.

The two partners will form a joint venture in order to set up a production facility for high-quality galvanised wire. Currently, there

is no galvanizing in Surinam, hence all galvanized products are imported. The joint venture will produce galvanized wire which

will be competitive with prices for imported galvanised wire. The new activity will be be started in one of the factory buildings of

Mora Metalworks' current production facility. The galvanised wire will be sold to Mora and other companies in Surinam and the

CARICOM producing goods such as chain link mesh and barbed wire.

Results

• Consortium established;

• Building finalized;

• Installation of hardware/transport vehicles acquired;

• Recruitment, contracting and training of personnel;


Development effects

on knowledge transfer Training will be given in the production of galvanised wire and safe working measures to

fourteen production employees.

on employment The project will create employment for twenty people. Indirectly the project will create five

more jobs.

on impact environment The process of hot dip galvanizing is not extremely environmentally damaging. The process

does leave a small amount of residue which will be gathered from the tank and processed

accordingly by the zinc suppliers abroad. The installation will be fitted with exhaust suction

for a safe working environment.

on chain No real local impact on the supply chain is foreseen as the material to produce wire cannot

be acquired locally.

on women The impact of the project for women will be limited. Two or three women will be hired as

administrative or sales employees.

other The employees will receive medical insurance and specific measures will be taken to create

good working conditions. Work clothes will be supplied and security measures taken.

106

Surinam

PSOM08/SR/04 Metakaolin production for Suriname and the Caricom

Location Moengo Paramaribo, Suriname

Sector Industry

Applicant Obelix B.V., Bussum

Recipient Moengo Minerals N.V., Paramaribo




Summary:

A Dutch and Surinam partner will jointly start a new business in Suriname in the production of metakaolin.

The Dutch partner is Obelix B.V., a management/consulting company with experience in management and setting op

processing facilities/factories in the chemical and electrical sector. The local partner is Moengo Minerals which has a kaolin

concession in the Moengo area in Eastern Surinam. Moengo Minerals has also set up a laboratory at the Anton de Kom

University.

The new company Surinam Kaolin Company N.V. will start the production of metakaolin for use in the local cement industry.

The proven advantage of the use of metakaolin in cement is that it improves the strength and setting time of cement; the latter

resulting in a financial gain. Furthermore, the use of metakaolin will lead to a reduction in import of cement.

Results

• Business establishment;

• Company building and processing equipment operational;

• Know how transfer and social investment;

• Production, social investment and communication.

Development effects

on knowledge transfer The project will train eighteen people in metakaolin production. Furthermore the laboratory of

Moengo Minerals at the Anton de Kom University will continue to train students in the use

and analysis of kaolin.

on employment The joint venture will employ 21 at the end of the pilot. Of these, twelve employees will work

in production, others in safety and quality control as well as technical supervision. In the

laboratory four additional employees will be hired. During the spin off phase a further

eighteen employees will be contracted.

on impact environment The production of metakaolin produces far less CO2 emission than regular cement

production. By making metakaolin available to cement producers, these will be able to

reduce CO2 emissions.

on chain The mining of kaolin will be done by contractors in the Moengo district. Because bauxite

mining is coming to an end this will create employment for these companies (on a small

scale) which is now disappearing.

on women At least 25 percent of the employees will be female.

psom project overview 2008

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