1. 0 Programme for Cooperation with Emerging Markets www.evd.nl/psom PSOM:

2. 1 Agenda 1.EVD 2.What is PSOM ? 3.Selection criteria 4.Procedures 5.Other instrument EVD: PESP

3. 2 The agency for International Business and Cooperation Part of the Netherlands Ministry of Economic Affairs Implements programmes for other Ministries as well: Ministry of Development Cooperation, Ministry of Transport, Ministry of Education Mission: promotion of international cooperation

4. 3 EVD Information: relevant data foreign markets EVD Business promotion: trade fairs, seminars & matchmaking EVD Programmes: project based financial support like PSOM EVD

5. 4 EVD services EVD Information: relevant data foreign markets EVD Business promotion: trade fairs, seminars & matchmaking EVD Programmes: project based financial support like PSOM

6. 5 What is PSOM ? Parties: Ownership: Dutch Ministry of Economic Affairs Implementation by EVD Objectives: Promotion of sustainable economic development in Serbia/Montenegro Promotion of structural trade and investment relationships for Dutch businesses in Serbia/Montenegro Instrument: Support of pilot investments of Dutch investors

7. 6 Why PSOM ? Alleviate poverty Create employment and income increase Strengthen private sector in developing countries With assistance of Dutch investors

8. 7 PSOM countries AfghanistanEgyptMongoliaSouth Africa AlbaniaEthiopiaMozambiqueSri Lanka ArmeniaGeorgiaNicaraguaSurinam BangladeshGhanaPakistanTanzania BeninGuatemalaPalestinian AuthorityThailand BoliviaIndiaPeru Turkey Bosnia- Herzegovina IndonesiaPhilippinesUganda BulgariaKazakhstan Russia Ukraine Burkina FasoKenya Romania Vietnam Cape Verde MacedoniaRwanda Yemen China MaliSenegalZambia Colombia MoldovaSerbia/Montenegro

9. 8 PSOM projects Pilot and demonstration character & follow-up investments (new and risky) No market disruption Structural cooperation between Dutch & local partner (e.g. JV) Relevant to development of Serbia/Montenegro (employment, knowledge, income, etc.)

10. 9 Characteristics Average duration: 2 years Max. budget: EUR 1.5 Million EVD grant: 50% (no loan!) Contract with Dutch company Result based contract Any economic sector

11. 10 Selection criteria PSOM 1.Consortium 2.Project plan and business plan 3.Spin-off 4.Development effects

12. 11 Consortium Preferably SME companies Reasonable balance between company size and project Clear link core business and project proposal Relevant market experience Long term relationship Consortium able to finance own contribution and working capital

13. 12 Project plan / Business plan Clear results that can be verified Realistic budget Combination of hardware and training Proven technology Good market prospects Financially feasible in terms of pay-back period and IRR

14. 13 Spin-off Pilot investments Additional investments in two years after the project 'Additionality' : -no market distruption -no commercial financing available

15. 14 Development effects Employment Introduction of new technology (training) New activities / new markets Chain effects

16. 15 Tenders Submit project proposal: twice a year Deadline in March and August First screening projects, visit local partner Sign contracts Whole procedure takes about 5 months

17. 16 PSOM Serbia-Montenegro Contact: Industry:Agriculture: Madelon KnopSaskia Hallenga +31 70 778 8486+31 70 778 8509 knop@evd.nlhallenga@evd.nl WWW.EVD.NL/PSOM

18. 17 Programme for Economic Cooperation (PESP) for Feasibilty studies, Investment preparation studies on emerging markets

19. 18 Highlights PESP Objectives:  Enhance the chances of Dutch firms to secure export orders  to promote international cooperation Budget:  EUR 11 million per year  Support per project can amount to two-thirds of the study costs, up to a maximum of around EUR 135.000 Information:  www.pesp.nl www.pesp.nl

20. 19 PESP Countries PESP basically covers all emerging markets in non-OECD countries  - Asia (excl. Japan)  - Central and Eastern Europe  - Africa  - Latin America  - Middle East

21. 20 Features of a PESP study A study into the feasibility of a clearly defined project; by a consortium of (minimally) 2 Dutch exporting or investing companies; for a counterpart in an emerging market abroad. No tender procedure, submission possible throughout the year, individual evaluation of study proposals.

22. 21 Criteria - Project implementation should lead to broad-based Dutch export of capital goods and/or services - Value of intended export shoud be at least 10x PESP contribution - The project increases awareness of what Dutch business and industry can offer the country in question - A clear prospect on how the implementation phase will be financed - PESP is not an acquisition instrument for firms that simply want to sell their consumer products on a faraway market

23. 22 PESP Programme Economic Cooperation Projects Support for feasibility studies focussing on export and investment Open all year Max. support per project EUR 135,000 (1/2 of total costs) Contract with Dutch company

24. 23 Embassy of the Kingdom of the Netherlands Simina 29 11000 Belgrade, Serbia Tel: +381.11.202.39.00 Fax: +381.11.202.39.99 Contact persons: Ms. Mirjana Lazovic – agriculture (mila.mirkovic@minbuza.nl)mila.mirkovic@minbuza.nl Mr. Nenad Mitosevic – industry (nenad.mitosevic@minbuza.nl)nenad.mitosevic@minbuza.nl

25. 24 For more information, please contact: www.nlembassy.org.yuwww.nlembassy.org.yu, link to Agriculture