1. PRONicaragua: Investment Facilitation Thursday, May 2 nd, 2013 Istanbul, Turkey

2. Background Information PRONicaragua is the Official Nicaraguan Investment and Export Promotion Agency. It is ascribed to the Presidency of the Republic through the Special Commission for Investment Promotion, which is presided by the Presidential Delegate for Investment. The Agency was created in 2002 by Presidential Decree No. 75-2002, with the backing of the UNDP. It is a public-private, non-profit institution with the mission to contribute to the country’s economic development. Administered by UNDP, it operates as a program in the Area of Equitable Economic Development. Decree No. 12-2011 reforms decree 75-2002: Expands mandate to include export promotion and investment promotion.

3. 1.Quality information In order to make the final decision of selecting a location, investors require quality information that is timely, reliable and up to date. 2.Effective assistance Investors need the agency’s support in setting up meetings, visiting potential sites, identifying local partners and getting a real sense of the investment climate in the country. 3.Fulfillment of the promise Once we have convinced a company that Nicaragua is the ideal place to invest, we must deliver and stand by that promise, providing aftercare services and working on improving the business climate. What do investors need?

4. Recognition for best investment promotion practices. World Association of Investment Promotion Agencies (WAIPA). IPA Performance Review 2006 (MIGA) 200320042005200620072009 Ranked 11th best national IPA in the world and 2nd best in Latin America Global Investment Promotion Benchmarking 2009 (GIPB). PRONicaragua ranks among the top 15% of evaluated agencies. IPA Performance Benchmarking 2005 MIGA The agency has been subject to several evaluation throughout the years. These organizations have not only assessed PRONicaragua’s results since its creation, but have also provided significant contributions toward the Agency’s growth, presenting a series of suggestions and recommendations to further improve its performance. PRONicaragua Evaluations

5. Motivated by the results of the 2009 GIPB, PRONicaragua decided to develop a work plan aimed at ensuring that the agency continued offering top-quality services: Our goal: to achieve a Top 5 ranking in the next GIPB. Carried out assessment of A. of O.: Using GIPB guidelines and an internal process identified overall areas of opportunity and improved Inquiry Handling and Website procedures, amongst other issues. Defined M&E policies: created internal mystery investor methodology and practiced periodic evaluations. Continuous Improvement Plan

6. The plan consisted in three basic tasks: Partnering with Harvard-affiliated business school INCAE to develop an comprehensive Continuous Improvement Plan that would allow the agency to improve its investor servicing, enhance its overall efficiency and optimize its resources. The study of the investment promotion best practices established by the GIPB, in order to implement internal policies to guarantee the agency complied with world-class guidelines in terms of investor servicing and using the website as a key marketing tool. Implementing a M&E process that allowed us to periodically measure the quality of service that the agency offered to investors, while at the same time provide practical training for advisors. Continuous Improvement Plan

7. We conducted three “mystery investor” exercises: Objective: Diagnose our team’s quality in handling investor’s inquiries and identify opportunities for improvement. Period: October 2009, May 2010 and December 2010. Scope: Included one inquiry for each of six sectors promoted by the agency. Methodology: The first two exercises were carried out using false email accounts requesting basic information on each of the sectors. The last exercise was done with real inquiries that were randomly selected from the preceding two-months. The “mystery investor” exercise became a key effort in ensuring that the agency offered the highest level of investor servicing possible. Inquiry Handling – Mystery Investor

8. We developed ten initial measures to evaluate investor inquiry handling: 1. Responding to the inquiry in 24 hours or less 2. Suggesting that the investor visits PRONicaragua’s website to have access to additional information, as well as video testimonials 3. Offer a deadline for sending the information package 4. Complying with the deadline offered 5. Sending the information package in 7 days or less 6. Follow-up with the investor within 7 days of sending the information package 7. Request confirmation that the information package was received 8. Offer a conference call to do an FTP 9. Suggest a country visit 10. General follow-up The results of first exercise averaged a low 21.5%, as the investment advisors didn’t have any guidelines that clearly indicated procedures, deadlines and follow-up protocols in handling investor inquiries. Inquiry Handling – How do we measure it?

9. We developed final guidelines with the IP team that had been evaluated. Inquiry Handling – Guidelines

10. We also developed guidelines for the information package that was to be delivered. Information Package Structure Template / Title with company name and logo Index Executive Summary General Information Competitive Advantages Fiscal Incentives Addressing the questions Closing statement Annexes Information Package - Guidelines

11. The involvement of the investment advisors in perfecting the guidelines helped shed light on the main setbacks or obstacles they faced while handling inquiries. Through group discussions, these issues were addressed and resolved. The initiative led to the creation of a series of guidelines and a manual, previously inexistent, that gave investment advisors a clear protocol on how to handle investment inquiries. GIPB standards were useful in seeking best practices: Having branded, well-written, professional-looking materials. Developing a template for responses so that documents look professional. Providing responses in a single report or presentation with a table of contents. Meeting deadlines –or responding even sooner. Improving inquiry handling is an on-going process that requires frequent evaluation and revision of guidelines to ensure that procedures and protocols are in accordance to the agency’s capacity and investor’s needs. Lessons Learned

12. What we achieved The result of 91 percent for the web site and the overall inquiry handling result of 88 percent represent a best practice performance.

13. Understanding the investor mindset will allow an IPI make sure its efforts are effectively oriented towards investment attraction. An IPI that is well-structured, has clear strategy, a talented team and public-private support can have a deep impact in a country’s FDI attraction. Investment attraction goes beyond promotional efforts, it includes working to improve the investment climate, creating strategic alliances with national and international institutions, and following up on the development of investment projects. Make yourself easily accessible and set up mechanisms to avoid losing leads. “A nation’s wealth is no longer the determinant of excellence in investment promotion. Many middle income countries such as Nicaragua, Lithuania, Turkey, Colombia, Brazil, Ecuador, Botswana, and Croatia have performed very well, often on very tight budgets.” Global Investment Promotion Benchmarking 2009 Our Message to Other IPIs

14. Thank You Gabriel Sánchez Market Intelligence and Communications Director gsanchez@pronicaragua.org.ni (505) 8850-5900