Oct 19, 2013

Private Sector Investment Programme (PSI) grant (subsidy) for Myanmar

The Dutch Private Sector Investment programme (PSI) provides 50% grant funding (subsidy) for pilot investment projects that bring new economic development in 50 targeted countries. PSI is administered by EVD, an agency of the Netherlands Government.

PSI supports innovative investment projects in emerging markets in Africa, Asia, Central and Eastern Europe and Latin America. A PSI project is an investment project, implemented by a Dutch (or foreign) company together with a local company, in one of the eligible developing countries. In case of 'tied' countries, a Dutch investor must be involved, whereas all other countries are 'untied' and therefore open to foreign investors from all countries. In each case local partners must be involved.
For nine fragile untied countries the PSI Plus programme has been launched, granting 60% subsidy. Please refer to the country list below for the specific criteria for each country. The PSI tender is open twice a year: in February and in August.
The next tender round closes in August 2012.

Main requirements
  •  The project budget must be between € 0.3 million and € 1.5 million.
  •  Project period can be up to 30 months; for agri-projects 36 months are allowed.
  • The strategic partners must be able to fund 50% (40% in case of PSI Plus projects) of the project budget themselves.

  • The project budget cannot include the purchase of land or investments already ongoing, nor can it include operational (recurrent) expenses such as salaries etc. Typically 70-80% of the project budget is allocated to hardware and 20-30% to technical assistance (usually mainly provided by the strategic partners themselves).
  • The project should be innovative for the country in which it is implemented, i.e. must bring new development. It cannot be an expansion of an existing activity/capacity or a replication of what other local companies are already doing. The project must have clear commercial potential, thus leading to a sustainable business and to follow-on investment to expand the scale of or diversify the activity.
  • The project should lead to local development in terms of employment and know-how transfer. 
For more information, please contact evi@myanmar-business.org

 
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