BUSINESS PROJECT DEVELOPMENT

GUIDELINES

The specific aim of the Business Project Development Scheme is to enable Danish companies to explore and develop market opportunities in developing countries, where doing business and investments are often associated with relatively high costs and risks.

Project development is the first step that can lead to trade cooperation, partnerships, projects or investments with collaboration from one or more of the GoGlobal partners: Danida, Trade Council, IFU and EKF.

Business Project Development is available in Danida priority countries where Denmark is represented by an embassy, where commercial opportunities are present, and where security conditions make it possible to conduct business. Business Project Development is currently available in the following countries:

Bangladesh Bolivia Burkina Faso Egypt Ethiopia Ghana Indonesia

Kenya Mali Mozambique Nepal Tanzania Uganda

Other Danida priority countries will be considered on request. Click here to see a map of Danida priority countries.

Activities to be considered for support must address local development needs with a focus on contributing to a greener growth and Corporate Social Responsibility in accordance with the principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights. The activity should lead to new jobs in developing countries.

Support may be given to Danish companies considering commercial activities in developing countries for development of relevant studies, market research and business plans, identification of export opportunities or identification of suppliers in developing countries.

GOGLOBAL PARTNERS

If the Danish company as a result of the support from the Business Project Development Scheme decides to continue with one or more of the GoGlobal partners the following conditions apply:

Danida Business Partnerships

The next step following the activities under Business Project Development will be to identify and approve a local partner company in accordance with the Danida Business partnerships Guidelines and Conditions for Support, May 2013 and, secondly, to complete and submit a Business Plan agreed to by the two partner companies. Financial support to these additional activities may be reimbursed up to a total of DKK 750,000 including the financial support given from the Business Project Development scheme.

Danida Business Finance

If the company is interested in bidding on public sector supply projects in one of Danida’s priority countries, Danida Business Finance can provide financing to the local public buyer. The projects financed by Danida Business Finance must be tendered to ensure competitive pricing. Companies can bid on projects developed and supported by Danida Business Finance from the early project stages or contact Danida Business Finance if the company intends to bid on a publicly funded project. The project and tender must be in accordance with the Rules and Guidelines for Danida Business Finance.

Trade Council

To be inserted.

IFU

IFU – The Investment Fund for Developing Countries provides advisory services and risk capital to Danish companies wanting to set up operations in developing countries.

IFU participates in establishing new companies, setting up joint ventures between Danish enterprises and local business partners and in acquiring existing companies in one of the 120 countries eligible for IFU investment.

Risk capital is made available on a commercial basis, and can be in the form of:

• equity • mezzanine financing (equity-like loans) • loans • guarantees

IFU invests together with Danish enterprises, large and small. IFU’s financing ranges from DKK 1 million to DKK 100 million. Generally, IFU has a mandate to take up to a 30 per cent stake in an investment project, but can go up to 49 per cent in smaller projects.

IFU offers advisory services on such aspects as business opportunities, commercial legislation and culture in the host country, business plan evaluation, localisation, recruitment and local partnerships.

In assessing the eligibility for benefitting from IFU's services, at least four prerequisites must be met:

• the Danish company must at least match the investment committed by IFU; • the business operation must be deemed to be commercially viable; • projects must have a development impact in the host country; • the host country must be on the list of developing countries eligible for IFU

investments.

Further information can be found on www.ifu.dk

EKF

EKF helps Danish export companies and their customers make business transactions possible.

We do it by facilitating loans and providing insurance against the commercial and political risks involved in trading and investing internationally.

Basically, EKF can help you, if you:

-                Need financing for your Danish company

-                Need insurance against lack of payment from a foreign customer

-                Want to help your customer obtain long term financing to buy your goods or equipment

EKF’s assistance is dependent upon a positive credit assessment and sufficient Danish economic interest in the transaction. We participate in financing transactions worldwide, but we apply restrictions on cover to individual countries.

EKF’s services are free until the guarantee is issued.

When issuing the guarantee, EKF charges a premium that most often is included in the financing and thus repaid by the buyer of the Danish goods.

Please contact EKF for further assistance. Find your contact at www.ekf.dk

CONDITIONS FOR BUSINESS PROJECT DEVELOPMENT SUPPORT

The applicant must be a Danish company with the necessary financial and technical capacity, proven capabilities within the proposed field of business, and adequate international experience to carry out the planned commercial activities. Applications submitted by a consultant on behalf of a company will not be considered.

All activities must be completed within a period of six months. A final report and a request for reimbursement must be submitted to the Embassy no later than one month after the completion of the approved activities.

Danida may reimburse 75 % of the costs related to activities approved up to a maximum of DKK 750,000. Costs eligible for reimbursements related to preparation of activities approved include:

Salary and compensation International and domestic travel Per diem Specialist consultancy services1 within a maximum of DKK 250,000 Other expenses, e.g. adaption of technology, certification etc. Audit of reimbursement claim

Rules for reimbursement of expenses and auditing are described in the annex to this document.

PROCEDURES FOR APPLICATION

The completed form must be submitted to the Embassy in the country of business together with Budget and Reimbursement form available on this link.

The Embassy will acknowledge receipt and inform you of the process and when you will receive a response. The Embassy will under normal circumstances provide a reply within ten working days. The Embassy may contact you to obtain additional information.

ASSESSMENT OF APPLICATIONS

Applications will be assessed based on an overall evaluation of the proposed activities and with particular emphasis on the following criteria:

Whether the proposed activity will promote sustainable development in the context of fighting poverty, promoting human rights and democracy, and creating decent jobs and greener growth;

Whether the proposed activity can lead to trade cooperation, partnerships, supplies or investments within the framework of the GoGlobal partners;

The technical and financial capacity of the applicant, and the applicant’s international experience in relation to the proposed business case;

The result and nature of any possible previous support from the GoGlobal partners to the applicant;

1 A specialist consultancy service is defined as experts in the field of a particular service to the business case, e.g. CSR, environmental or technical issues, legal expertise etc. The service of process consultants will not be reimbursed.

The cost effectiveness of the proposed activities.

Please contact the Embassy in the country of business if you have questions to this form.

November 2013

Ministry of Foreign Affairs of Denmark

A. DANISH COMPANYContact detailsCompany nameLegal status A/S, ApS, or specify other legal formAddressCVR numberTelephonee-mailWebpageManagerContact personTelephonee-mailBank details

About your companyVision, mission, history, ownership, core business, international activities, etc.

Economic and financial standingKey financial figuresDKK million Most recent year Most recent year -1 Most recent year -2YearProfit before taxProfit for the yearBalance sheet totalEquityKey ratiosRate of returnReturn on equityEquity ratioDevelopment of key financial figures and expected developmentPlease comment on the development of the key financial figures and briefly describe expected economic and financial development of your company.

Skills and human resourcesPlease describe your company’s technical and human resources and specify the number of permanently employed professional staff. Describe relevant international experience.

Parent company/associated companies/subsidiariesPlease list contact information about possible parent, subsidiary and associated companies: A parent company is a company that owns enough voting stock in another firm to control

management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company.

An associate company is a company in which another company owns a significant portion of

voting shares, usually 20–50%.

Previous applications for support from GoGlobal Partners (if any)Please give information about on-going or previous support, including support to parent-, subsidiary-, and associated companies, and the result of this support.

Information about applications that have been rejected must also be included. This information must include the Ministry of Foreign Affairs file number, date and amount of grant.

B. BUSINESS CASELocationState country and, if relevant, inclusion of other countries in the region.

DescriptionDescribe the idea, the opportunity, and the scope of the business case to be explored, its key objectives, deliverables, and business benefits.

Explain how the business case may lead to collaboration with one or more of the GoGlobal Partners.

Justification for supportDescribe how the business case will address local development needs, how it will contribute to a greener growth, and how it will promote Corporate Social Responsibility.

Describe how the business case will lead to new jobs in the country of business, and how it will have a possible positive effect on employment and business in Denmark.

C. WORK PLANPlease describe the work to be carried out in order to complete the Project Development activities.

Activity Expected result

TIME SCHEDULEState the main milestones for the preparation of the activities, for example visits to the partner country, stakeholder workshops, submission of the Completion Report, possible documents and reimbursement claim.

Activity Date

TEAM MEMBERSList staff members and consultants involved in the activities and their responsibilities.

Name Title Responsibility

Add rows as required

BUDGET SUMMARYSalary Danish companyFees consultantTravel and per diemProject related costsAuditTotalReimbursement 75 %

Please attach Budget Forms

SOLEMN DECLARATION

By submitting this document with the intention of applying for support from the Ministry of Foreign Affairs we solemnly declare that:

We have fulfilled our obligation relating to the payment of social security contributions and to the payment of direct and indirect taxes in accordance with the legal provisions in Denmark and in the country in which we are established.

We will follow the export control rules that apply to dual-use products, i.e. civilian products, which in addition to their civilian use, may also have a potential military application.2

We are not the subject of a conviction by final judgment for one or more of the following reasons: participation in a criminal organisation; corruption; fraud; money laundering.

We will comply with the Act on Processing of Personal Data which serves to protect individuals with regard to the processing of personal data and on the free movement of such data. 3

We have read and agree to the attached General Conditions for support. We are not listed in RKI The information given in this form is correct and true The person named below is authorised to sign on behalf of the company

We accept that Danida may collect information about our company from third party.

Place and date:

Name:

Position:

Signature:

2 http://www.dba.erhvervsstyrelsen.dk/what-are-export-controls3 http://www.datatilsynet.dk/english/

GENERAL CONDITIONS FOR SUPPORT UNDER BUSINESS PROJECT DEVELOPMENT

1. INTRODUCTION

The terms and conditions in this document apply to all grants for financial support given by the Ministry of Foreign Affairs of Denmark (Danida) under the Business Project Development scheme.

This document supplements the application for support, letters of approval and any possible amendments, and any other correspondence related to a specific approval for financial support.

The Danish company is obliged to perform all of the obligations set forth in the approval for financial support. Any inconsistency with the approved financial support, and the basic assumptions, constitutes a breach, cf. clause 7.

Procurement of goods carried out and financed during the partnership implementation must be effected according to acceptable rules for procurement in order to obtain value for money.

2. THE DANISH COMPANY

These General Conditions for support apply to the Danish company who has been granted and/or have received support from Danida.

The Danish company declares that they enter into this agreement of their own free will, are acquainted with and agree to follow the guidelines and conditions for support issued by Danida. The Danish company agrees that it is their responsibility that associated partners and consultants abide by these General Conditions.

Danida sets out general criteria, which the partners must meet to be eligible for support.

Meeting of these requirements, however, does not in itself entitle organizations/companies to receive financial support. The company must also be able to meet an individual Danida assessment taking into consideration e.g. such issues as organization/company capability, development aspects, project feasibility and compliance with the Danida efforts in the recipient country. The assessment of whether or not a project is eligible for Danida support is a sovereign decision by Danida.

3. STATUS OF DANIDA

DANIDA is not a contractual party to any agreement between the Danish company or any partnership agreement with complementary partners. DANIDA shall not be liable to the Danish company for the acts of any authorities, banks or external consultants who may be involved in the activities of the cooperating partners, even though DANIDA may have pointed out, contracted with and/or paid fees to the said third parties. The Danish company shall ensure that their contracting counterparts do not consider DANIDA as liable to the project.

DANIDA shall not be held liable for any consequential loss, and loss of profits or other indirect losses.

No claims of any kind can be raised against DANIDA because of a suspension of payments to the Danish company and/or withdrawal of support to the Danish company.

DANIDA does not assume any liability whatsoever on behalf of the Danish company in the cooperation to any third party, even though DANIDA may have facilitated financing for the said third party.

Should any dispute arise between any or all of the partners, DANIDA reserves its position, and DANIDA has no obligations to the partners or any third party to intervene in any such dispute.

4. THE COMPANY’S DUTY TO INFORM

The Danish company shall, without any delay and on a current basis, inform Danida of any matter that may affect the conditions on which the support to the Danish company has been granted, and of any matter that may affect the viability and sustainability of the approved activities.

The Danish company shall, without any delay and on a current basis, inform Danida about any situation arisen as a result of events that have occurred after the date of the granting of support by the Danida, which makes it unlikely that the activities can be carried out or approved by Danida.

The Danish company shall, without any delay and on a current basis, inform Danida of any matter that may adversely affect the financial conditions of the Danish company.

Danida shall on request be entitled to receive any information and documentation relating to the implementation of the activities of the cooperating partners and shall, at any time after having given due notice, have full access to project documents related to such activities in order to inspect progress, use of funds from Danida, etc.

Upon termination of Danida’s support, Danida may carry out an evaluation of the supported activities and shall in this context enjoy the same right to information as mentioned above.

Danida may at any time at its own expense appoint an independent auditor to examine all relevant documents at the Danish company’s premises.

Negligence by the Danish company to inform Danida about the above mentioned constitutes a breach, cf. clause 7.

5. FOLLOW UP ON THE REQUIREMENTS

To follow-up on the requirements for sustainability of the approved activities, the Danish company agrees that for a period of up to 3 years after the end of Danida´s support to the

implementation phase they are willing to allow inspections and to cooperate with the local Danish Embassy regarding any investigation or evaluation that Danida may require.

6. GENERAL STANDARDS, FUNDAMENTAL PRINCIPLES AND RIGHTS OF WORK

By receiving financial support from Danida the Danish company commits itself to carry out business in accordance with general development standards as laid out by Danida. In case of gross negligence of this obligation Danida has the right upon due notice to claim refund of the financial support.

The cooperation must be carried out in accordance with local laws and regulations. Financial support from DANIDA does not in itself give the Danish company and/or any of the partners any right to tax or duty exemptions or any other privileges.

The Danish company must as a minimum comply with national work environment regulations and comply with UN Global Compact, the UN guiding principles on business and human rights, the ILO’s decent Work Agenda, the OECD Guidelines for Multinational Enterprises and ISO 26000.

7. BREACH OF CONDITIONS FOR SUPPORT

Breach by the Danish company concerning one or more of the provisions in these General Conditions or the Particular Conditions for the activities approved by Danida entitles Danida to immediately suspend any payment and/or withdraw the approval of the support and claim the reimbursement/repayment of the financial support already paid with interest, on the conditions given below.

Breach includes, but is not limited to:

in case any of the provisions of these General Conditions have not been complied with,

there is reason to suspect that the company does not observe the terms and conditions for the use of the support,

misuse by the Danish company of support granted,

offers, payment, consideration, or benefit of any kind, which constitute illegal or corrupt practices either directly or indirectly, including bribery of foreign public officials, as an inducement to facilitate the approval and execution of a project. In accordance with Danida Anti-corruption Code of Conduct, the notion “zero tolerance” is the governing principle with regard to corruption within the Danish aid delivery system, which partners are indispensably obliged to enforce in their handling of aid funds,

failure by Danish company to deliver material and/or services of a proper quality and/or within approved time limits,

failure to deliver reports on time,

suspicion of illegal activities of any kind, including fraud, participation in a criminal organization or money laundering,

any action taken for the dissolution, disestablishment or suspension of the Danish company,

suspension of payments or bankruptcy according to the law in any country, lack of liquid assets or any other adverse financial position of Danish company so as to, in the opinion of the Danida, materially and adversely affect the ability of the Danish company to perform any of the obligations,

the Danish company ceasing to exist in the same legal form as that prevailing at of the date of the granting of support by Danida, or

in the opinion of Danida, any change in the legal character, ownership or control of the Danish company from that prevailing at the date of the granting of support by the Danida so as to materially and adversely affect the ability of the Danish company to perform any of the obligations.

8. GOVERNING LAW AND DISPUTES

Any dispute that may arise between Danida and Danish company regarding the support and the conditions under which the support has been granted shall be finally settled by arbitration in accordance with the rules of Procedure of the Danish Institute of Arbitration (Det Danske Voldgiftsinstitut) in Copenhagen pursuant to Danish law, however excluding choice of law provisions and the International Conditions on the Sale of Goods (CISG). The Arbitral Tribunal shall be composed of one or three arbitrators all appointed by the Institute.

Copenhagen, November 2013

1. REIMBURSEMENTS OF EXPENSESSupport granted under the Business Project Development scheme is disbursed as reimbursement of 75 % of defrayed costs documented by audited reimbursements claims. Reimbursement requires 100 % documentation of defrayed costs. Only costs directly related to activities included in budgets approved by the Embassy are eligible for reimbursement.

Reimbursement claimsReimbursement of expenses is made at the completion of the approved activities based on submission of a completion report and an audited reimbursement claim.

Approval of reimbursement claims requires that:

Expenses are defrayed and in accordance with the approved budget for the given accounting period (past six months)

All expenses are documented by scanned versions of the original invoices, payslips, air tickets etc.

Reimbursement claims are signed by the Danish company Reimbursement claims are audited by the auditor commissioned by Danida

The Danish company must present additional documentation of expenses upon request from either the commissioned auditor or Danida.

Reimbursement forms are available on the Business Project Development website and must be emailed to the Embassy together with a completion report.

Prior to submission to the Embassy, the reimbursement claim must be audited by the auditor commissioned by Danida Business Partnerships. For audit procedures, please see Chapter 2.

When a reimbursement claim is approved, the Embassy initiates payment within ten working days after receipt of the audited reimbursement claim.

In case a request for reimbursement cannot be met, the Danish company is notified in writing within ten working days after receipt of the audited reimbursement claim.

Reimbursement can never exceed the full amount granted in DKK.

Eligible expenses:

• Salary and compensation in relation to the undertaking of the approved activities

• International and domestic travel in relation to approved activities

• Per diem in relation to the undertaking of approved activities

All expenses included in reimbursement claims must be exclusive of Danish VAT, as Danish VAT is not reimbursable under the facility.

Expenses are reimbursed in accordance with the selling rate of the Danish National Bank for the respective country currency on the day in which the expenses were defrayed.

In the few cases where the selling rate of a currency is not available from the Danish National Bank, the currency must be converted into either euros or US dollars and then converted into Danish kroner.

Reimbursable expensesSalaries of employees

Salaries of Danish employees are calculated based on the normal average hourly rate charged by the individuals concerned, substantiated by the three most recent monthly payslips up to a maximum of DKK 411 per working hour. No remuneration for overtime is payable.

The average hourly rate is calculated in view of the individual employees’ normal basic salary, excluding bonuses, profit sharing or contributions to, for instance, voluntary pension schemes or health insurance.

Reimbursement of salaries is based on the time actually worked, up to a maximum of 8 hours per working day and 40 hours per week. Weekends and travel days are considered working days.

Reimbursement of salaries must be documented by payslips and dated timesheets stating position and name of the employee in question, as well as number of hours worked. All payslips and timesheets must be signed by the employee in question. The time worked is reconciled to the budget approved by the Embassy.

Compensation for owners

Owners unable to document salary by payslip are granted a compensation fee up to a maximum of DKK 300 per working hour regardless of prior salary received.

Only time spent directly on the budgeted and approved activities is compensated. This includes compensation for conducting training, providing technical assistance and other forms of capacity building.

The compensation is based on the time actually worked up to a maximum of 8 hours per working day and 40 hours per week. Weekends and travel days are considered working days. No remuneration for overtime is payable.

Eligibility for compensation must be documented by invoices and dated timesheets stating name of the owner, as well as number of hours worked. All invoices and timesheets must be signed by the owner in question and other authorized signatories to the partnership. The time worked is reconciled to the approved budget.

Consultancy fees

Consultancy fees should correspond to the rates normally charged by the consultant for equivalent assignments. Documentation thereof, e.g. former contracts, must be provided upon request from either the partners or the Embassy.

Reimbursement of consultancy fees is based on invoices issued by the consultant or the consultancy firm, stating working hours spent and total amount charged.

International travel

International travel expenses eligible for reimbursement must be directly related to approved activities.

All international travel must take place by the most appropriate means of transportation and the most direct practical route. All international travel must be on the cheapest economy class.

If international travel takes place in combination with other duty travel not related to the partnership, additional documentation of the price of a direct route must be provided for the auditing.

Domestic travel

Domestic travel expenses eligible for reimbursement must be directly related to the approved activities. All domestic travel by air or ground (inter-city) must take place by the most appropriate means of transportation and the most direct practical route. All domestic travel must be on the cheapest economy class.

If domestic travel takes place in combination with other duty travel not related to the partnership, additional documentation of the price of a direct route must be provided for the auditing.

Per diem

A subsistence allowance paid on a per diem basis is available to owners, employees and consultants working away from their permanent place of residence in a developing country. However, persons posted for a continuous period of six months or more are regarded as expatriate staff on a long-term basis and do not qualify for per diem.

Per diem is calculated from the day of departure until the day of return to the permanent place of residence up to a maximum of six months per year.

Per diem covers:

Accommodation Meals Local transportation within the place of business (intra-city travel) Sundry expenses, such as visa, insurance, excess luggage, translation and vaccinations

Per diem expenditure eligible for reimbursement follows country-specific per diem rates published on the Europeaid website4.

Per diem is calculated in accordance with Danida's fixed exchange rate of DKK 7.46 to the euro. The rate is adjusted annually in January – last time in 2013.

Other expenses

Other expenses encompass e.g. legal expenses, costs of permits and fees in connection with, for instance, establishing joint ventures, registering products or protecting intellectual property rights.

Adaptation of technology, various types of certification, production of training materials and handbooks as well as schools and training courses also qualifies for reimbursement to a limited degree.

Audits

The cost for auditing is fixed at DKK 3,000 and is reimbursed with 75 %.

The Danish company is obliged to ensure advance payment of audits performed by the commissioned auditor. This is to ensure inclusion of auditing expenses in the reimbursement claim.

2. ACCOUNTING AND AUDITINGAccounting

The Danish company must keep accounts in accordance with sound bookkeeping and accounting principles and ensure that the procedures are satisfactory and follow proper internal control routines.

All expenses included in the accounts must relate directly to the partnership and budgets approved by the Embassy. Expenses accounted for must also be traceable and clearly distinguishable from other business accounts of the main partners.

In anticipation of any future inquiries, the Danish company is obliged to retain accounts and documentation for five years after completion of the approved activities in compliance with the provisions of the Danish Bookkeeping Act.

Auditing

All expenses subject to reimbursement must be audited by the Danish auditor BDO Copenhagen. BDO Copenhagen has been commissioned by Danida Business Partnerships to undertake all audits within the facility worldwide. It is the responsibility of the Danish company to submit reimbursement claims and required documentation to the Danish auditor in due time before an audit.

4 http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.htm

Audit procedures, list of required documentation and audit prices can be downloaded from the website of BDO Copenhagen: www.bdo.dk/dbpartnerships

The Danish auditor is obliged to finalize an audit within ten working days upon receipt of all required documentation, including the signed reimbursement claim.

Each audit is finalized by the auditor issuing a signed auditor’s statement indicating findings according to the ISRS 4400 standard and the agreed upon Danida procedures. Danida procedures can be downloaded from the BDO website.

Upon receipt of the audited reimbursement claim, the main partners must submit the claim – including the signed auditor’s statement – to the Embassy no later than two months into the next half year.

COMPLETION REPORT

At the completion of the approved activities the Danish company is requested to submit this report, and the request for reimbursement to the Embassy in the country of business by e-mail.

The purpose of the Completion Report is to inform Danida about the main findings of the work carried out, major deviations to the original Business Case, challenges and risks identified, lessons learned, and plans for future cooperation with one or more of the GoGlobal partner organisations.

The Embassy will acknowledge receipt and inform the process and when reimbursement of your expenses will be made. The Embassy may contact you to obtain additional information.

Please contact the Embassy in the country of business if you have questions to this form.

Ministry of Foreign Affairs of Denmark, November 2013

BUSINESS PROJECT DEVELOPMENT COMPLETION REPORTDanida File No.Title

DANISH COMPANYCompany nameAddressCVR numberTelephonee-mailWebpageManagerContact personTelephonee-mailBank details

SUMMARY OF WORKPlease describe main results of the work carried out in relation to the approved activities, major deviations to the original Business Case, challenges and risks identified, lessons learned, and plans for future cooperation with one or more of the GoGlobal partner organisations.

LIST OF ATTACHMENTSDocuments:Audited reimbursement claim[Add attachments such as studies, analysis, documents, etc. relevant to the business Plan]

Place and date:

Company:

Name:

Position:

Signature: