Central America & Your Business How the EVD can help Christian Derlagen, EVD Project Officer Central America

Stimulating investment: PSI ¿ What is it? ¿ Who can benefit? ¿ How does it work? ¿ Who are we? ¿ What can we do? The EVD and Central America

EVD International Business and Cooperation Agency of the Dutch Government that assists entrepreneurs in their international activities Provides information about foreign markets Executes programmes to stimulate international cooperation and development

Information on Central America We answer your questions: –Laws & regulations –Sector-specific data –Practical info Publications, seminars, Connect you to economic advisers at embassies in Costa Rica, Guatemala and Nicaragua

Programmes PSB: Starters on Foreign Markets –Support Dutch SME's in accessing new markets CPA: Collective Promotional Activities –Stimulating trade missions and participation at international fairs PSI: Private Sector Investment Programme –Stimulating investments in emerging markets around the world MMF: Matchmaking Facility –Connecting businesses in developing countries to Dutch partners

What is PSI? PSI provides funding for investments in emerging markets, formerly programme known as PSOM Investments are executed by partnership of two companies In 52 countries in Latin America, Asia, Africa and the Balkans Of which 4 countries in Central America: Guatemala, Honduras, El Salvador and Nicaragua Since 1999 over 500 projects have been started in agriculture, industry, logistics, tourism, energy and more. Why? Stimulate the private sector of developing countries More labour, more knowledge, more development

Who can submit? Company from The Netherlands Together with a local company Stable and sound financial position Long-term cooperation For Honduras, Nicaragua: For Guatemala, El Salvador: Company from anywhere in the world Together with a local company Stable and sound financial position Long-term cooperation

What does a PSI project look like? Maximum project budget EUR 1,5 million Maximum duration of the project is 30 months PSI donates 50% Open to all sectors Conditions Activity is commercially viable Pilot character, additional investments after project period Innovative character, new for the country Combination of hardware and technical assistance (training, management) Own contribution and commitment of partners Impact on development

Flowers by Sea - Ecuador Processing of cut flowers for transport by sea container Strategy: Process and prepare flowers for sea transport, avoiding increasing airfreight costs and environmental concerns, creating more added value in the chain. Project: Establish a processing centre in Ecuadorian flower region to prepare flowers for container transport and ensure cold chain. Initial capacity two containers/week. Results: Direct employment for 40 persons. Positive environmental effects. Positive influence and innovation for Ecuadorian flower sector. Good prospects for growth after the project period.

Plastic Pots – El Salvador Producing plant pots from recycled scrap plastic in San Salvador Strategy: Benefit from growing ornamental plants production in Central America. Subsitute imports with high-quality pots from recycled plastic. Project: Establish a production facility in San Salvador, with Dutch detailed knowledge. Set up marketing and sales of pots throughout the region. Results: Direct employment for 19 persons. Positive environmental effects. Excellent prospects for growth after the project period. Strengthening position of El Salvador as industrial supplier to agricultural sector in other Central American countries.

How does it work? Two tenders a year Next tender: opens end of 2008 closes beginning 2009 exact dates available soon Evaluation & selection of projects Start of project: June 2009 NB: El Salvador only eligible for first (upcoming) tender!

Thinking about investing in Central America? Discuss your idea with a Project Officer of the EVD Visit the PSI workshop ('How to write a project proposal') Read the instructions – soon available!

Country Officer: Marjolein Steinebach PSI Project Officer: Christian Derlagen Questions? More information?