1. Working with the private sector – experience from Russia Business Focal Points Workshop Bratislava, 25 October 2004 United Nations Development Programme

2. Types of projects with the Private Sector Private sector Donor Beneficiary Provides funding for socially significant projects Receives funding for increasing capacity and development

3. Examples of cooperation with the private sector (donor)  Creation of favorable environment for FDI/DDI promotion in Russia. Project on regional Development (LUKOIL - $6 mln)  Establishment of Intellectual Property Information and Legal Center, trainings for staff of pertaining institutions (courts, GP office, customs. etc.), consulting Russian businesses on IP issues (SMEs - $0,6 mln)  Establishment of Center for Utilities Reform Projects, creation of database of investors, service providers, consultants, companies, etc. (medium national company - $1 mln, foreign company)

4. Examples of cooperation with the private sector (donor)  Renovation of medical facilities and social infrastructure for the imprisoned in penitentiary institutions of 13 Regions (SMEs - $0,34 mln)  Establishment of the North-West Promotion (Development) Agency. Advisory services on investment attraction and technology transfer for SMEs in NW Region (medium regional companies - $0,8 mln)

5. Examples of cooperation with the private sector (beneficiary)  Promotion of CSR policy and practice. Elaboration of CSR index of Russian companies, annual publication of the Report on social investment in RF. ($0,04 mln)  Support to competitiveness of the Russian high-tech SMEs by helping them to undertake quality-management systems (QMS) certification ($ 2,4 mln).

6. Programme funds for 2004

7. Our partners

8. Engaging our partners Identifying opportunities and synergies with external partners Developing opportunities for UNDP approach through analysis of prospective partner potential Proactive and targeted promotion of UNDP services in the RF

9. Advantages of UNDP involvement: Solid experience in project implementation Established relationship with the Government/government institutions Clear identification of technical assistance requirements, desired results, possible constraints within project document Financial transparency and accountability (schedule of payments, project planning, monitoring and evaluation, financial reporting)

10. Advantages of UNDP involvement: Personnel management (identification of the best sources of expertise (national and international), selection procedures Substantial savings because of lower bids from firms assured by secure, guaranteed and timely payments

11. Key factors for successful partnerships  Important role of the Government in approaching the private sector  Knowledge of the broad country context, including the government structures, key players in the government and private sector  Assessment of the needs and interests of potential donors/investors for the adequate design of the development projects

12. Key factors for successful partnerships  Tailor- based approach in negotiations with donors  Importance of maintaining existing contacts with government and business partners in order to develop new ones (business associations)

13. Main challenges Bureaucracy and time factor: of UNDP rules and procedures for project design, approval and implementation Imperfection of the Russian taxation system Lack of information about UNDP programmes and projects implemented in the Russian Federation

14. Tools for improvement – making UNDP a better partner for the private sector Elaboration of the initiatives aimed at simplification of the procedures for providing technical assistance Developing a clear and transparent internal screening mechanism for private companies A better known corporate image (developing specific PR activities targeting private sector) Enlarging the network of potential partners through effective partnerships with the main national and foreign business clubs