BUSINESS PROJECT DEVELOPMENT
GUIDELINES
The specific aim of the Business Project Development Scheme is to enable Danish companies to explore and develop market opportunities in developing countries, where doing business and investments are often associated with relatively high costs and risks.
Project development is the first step that can lead to trade cooperation, partnerships, projects or investments with collaboration from one or more of the GoGlobal partners: Danida, Trade Council, IFU and EKF.
Business Project Development is available in Danida priority countries where Denmark is represented by an embassy, where commercial opportunities are present, and where security conditions make it possible to conduct business. Business Project Development is currently available in the following countries:
· Bangladesh· Bolivia
· Burkina Faso
· Egypt
· Ethiopia
· Ghana
· Indonesia / · Kenya
· Mali
· Mozambique
· Nepal
· Tanzania
· Uganda
Other Danida priority countries will be considered on request. Click here to see a map of Danida priority countries.
Activities to be considered for support must address local development needs with a focus on contributing to a greener growth and Corporate Social Responsibility in accordance with the principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights. The activity should lead to new jobs in developing countries.
Support may be given to Danish companies considering commercial activities in developing countries for development of relevant studies, market research and business plans, identification of export opportunities or identification of suppliers in developing countries.
GOGLOBAL PARTNERS
If the Danish company as a result of the support from the Business Project Development Scheme decides to continue with one or more of the GoGlobal partners the following conditions apply:
Danida Business Partnerships
The next step following the activities under Business Project Development will be to identify and approve a local partner company in accordance with the Danida Business partnerships Guidelines and Conditions for Support, May 2013 and, secondly, to complete and submit a Business Plan agreed to by the two partner companies. Financial support to these additional activities may be reimbursed up to a total of DKK 750,000 including the financial support given from the Business Project Development scheme.
Danida Business Finance
If the company is interested in bidding on public sector supply projects in one of Danida’s priority countries, Danida Business Finance can provide financing to the local public buyer. The projects financed by Danida Business Finance must be tendered to ensure competitive pricing. Companies can bid on projects developed and supported by Danida Business Finance from the early project stages or contact Danida Business Finance if the company intends to bid on a publicly funded project. The project and tender must be in accordance with the Rules and Guidelines for Danida Business Finance.
Trade Council
To be inserted.
IFU
IFU – The Investment Fund for Developing Countries provides advisory services and risk capital to Danish companies wanting to set up operations in developing countries.
IFU participates in establishing new companies, setting up joint ventures between Danish enterprises and local business partners and in acquiring existing companies in one of the 120 countries eligible for IFU investment.
Risk capital is made available on a commercial basis, and can be in the form of:
• equity
• mezzanine financing (equity-like loans)
• loans
• guarantees
IFU invests together with Danish enterprises, large and small. IFU’s financing ranges from DKK 1 million to DKK 100 million. Generally, IFU has a mandate to take up to a 30 per cent stake in an investment project, but can go up to 49 per cent in smaller projects.
IFU offers advisory services on such aspects as business opportunities, commercial legislation and culture in the host country, business plan evaluation, localisation, recruitment and local partnerships.
In assessing the eligibility for benefitting from IFU's services, at least four prerequisites must be met:
• the Danish company must at least match the investment committed by IFU;
• the business operation must be deemed to be commercially viable;
• projects must have a development impact in the host country;
• the host country must be on the list of developing countries eligible for IFU investments.
Further information can be found on www.ifu.dk
EKF
EKF helps Danish export companies and their customers make business transactions possible.
We do it by facilitating loans and providing insurance against the commercial and political risks involved in trading and investing internationally.
Basically, EKF can help you, if you:
- Need financing for your Danish company
- Need insurance against lack of payment from a foreign customer
- Want to help your customer obtain long term financing to buy your goods or equipment
EKF’s assistance is dependent upon a positive credit assessment and sufficient Danish economic interest in the transaction. We participate in financing transactions worldwide, but we apply restrictions on cover to individual countries.
EKF’s services are free until the guarantee is issued.
When issuing the guarantee, EKF charges a premium that most often is included in the financing and thus repaid by the buyer of the Danish goods.
Please contact EKF for further assistance. Find your contact at www.ekf.dk
CONDITIONS FOR BUSINESS PROJECT DEVELOPMENT SUPPORT
The applicant must be a Danish company with the necessary financial and technical capacity, proven capabilities within the proposed field of business, and adequate international experience to carry out the planned commercial activities. Applications submitted by a consultant on behalf of a company will not be considered.
All activities must be completed within a period of six months. A final report and a request for reimbursement must be submitted to the Embassy no later than one month after the completion of the approved activities.
Danida may reimburse 75 % of the costs related to activities approved up to a maximum of DKK 750,000. Costs eligible for reimbursements related to preparation of activities approved include:
· Salary and compensation
· International and domestic travel
· Per diem
· Specialist consultancy services[1] within a maximum of DKK 250,000
· Other expenses, e.g. adaption of technology, certification etc.
· Audit of reimbursement claim
Rules for reimbursement of expenses and auditing are described in the annex to this document.
PROCEDURES FOR APPLICATION
The completed form must be submitted to the Embassy in the country of business together with Budget and Reimbursement form available on this link.
The Embassy will acknowledge receipt and inform you of the process and when you will receive a response. The Embassy will under normal circumstances provide a reply within ten working days. The Embassy may contact you to obtain additional information.
ASSESSMENT OF APPLICATIONS
Applications will be assessed based on an overall evaluation of the proposed activities and with particular emphasis on the following criteria:
· Whether the proposed activity will promote sustainable development in the context of fighting poverty, promoting human rights and democracy, and creating decent jobs and greener growth;
· Whether the proposed activity can lead to trade cooperation, partnerships, supplies or investments within the framework of the GoGlobal partners;
· The technical and financial capacity of the applicant, and the applicant’s international experience in relation to the proposed business case;
· The result and nature of any possible previous support from the GoGlobal partners to the applicant;
· The cost effectiveness of the proposed activities.
Please contact the Embassy in the country of business if you have questions to this form.
November 2013
Ministry of Foreign Affairs of Denmark
A. DANISH COMPANYContact details
Company name
Legal status / A/S, ApS, or specify other legal form
Address
CVR number
Telephone
Webpage
Manager
Contact person
Telephone
Bank details
About your company
Vision, mission, history, ownership, core business, international activities, etc.
Economic and financial standing
Key financial figures
DKK million / Most recent year / Most recent year -1 / Most recent year -2
Year
Profit before tax
Profit for the year
Balance sheet total
Equity
Key ratios
Rate of return
Return on equity
Equity ratio
Development of key financial figures and expected development
Please comment on the development of the key financial figures and briefly describe expected economic and financial development of your company.
Skills and human resources
Please describe your company’s technical and human resources and specify the number of permanently employed professional staff. Describe relevant international experience.
Parent company/associated companies/subsidiaries
Please list contact information about possible parent, subsidiary and associated companies:
· A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company.
· An associate company is a company in which another company owns a significant portion of voting shares, usually 20–50%.
Previous applications for support from GoGlobal Partners (if any)
Please give information about on-going or previous support, including support to parent-, subsidiary-, and associated companies, and the result of this support.
Information about applications that have been rejected must also be included. This information must include the Ministry of Foreign Affairs file number, date and amount of grant.
B. BUSINESS CASE
Location
State country and, if relevant, inclusion of other countries in the region.
Description
Describe the idea, the opportunity, and the scope of the business case to be explored, its key objectives, deliverables, and business benefits.
Explain how the business case may lead to collaboration with one or more of the GoGlobal Partners.
Justification for support
Describe how the business case will address local development needs, how it will contribute to a greener growth, and how it will promote Corporate Social Responsibility.
Describe how the business case will lead to new jobs in the country of business, and how it will have a possible positive effect on employment and business in Denmark.
C. WORK PLAN
Please describe the work to be carried out in order to complete the Project Development activities.
Activity / Expected result
TIME SCHEDULE
State the main milestones for the preparation of the activities, for example visits to the partner country, stakeholder workshops, submission of the Completion Report, possible documents and reimbursement claim.
Activity / Date
TEAM MEMBERS
List staff members and consultants involved in the activities and their responsibilities.
Name / Title / Responsibility
Add rows as required
BUDGET SUMMARY
Salary Danish company
Fees consultant
Travel and per diem
Project related costs
Audit
Total
Reimbursement 75 %
Please attach Budget Forms
SOLEMN DECLARATION
By submitting this document with the intention of applying for support from the Ministry of Foreign Affairs we solemnly declare that:
· We have fulfilled our obligation relating to the payment of social security contributions and to the payment of direct and indirect taxes in accordance with the legal provisions in Denmark and in the country in which we are established.
· We will follow the export control rules that apply to dual-use products, i.e. civilian products, which in addition to their civilian use, may also have a potential military application.[2]
· We are not the subject of a conviction by final judgment for one or more of the following reasons: participation in a criminal organisation; corruption; fraud; money laundering.
· We will comply with the Act on Processing of Personal Data which serves to protect individuals with regard to the processing of personal data and on the free movement of such data. [3]
· We have read and agree to the attached General Conditions for support.
· We are not listed in RKI
· The information given in this form is correct and true
· The person named below is authorised to sign on behalf of the company
We accept that Danida may collect information about our company from third party.
Place and date:Name:
Position:
Signature:
GENERAL CONDITIONS FOR SUPPORT UNDER BUSINESS PROJECT DEVELOPMENT
1. INTRODUCTION
The terms and conditions in this document apply to all grants for financial support given by the Ministry of Foreign Affairs of Denmark (Danida) under the Business Project Development scheme.
This document supplements the application for support, letters of approval and any possible amendments, and any other correspondence related to a specific approval for financial support.
The Danish company is obliged to perform all of the obligations set forth in the approval for financial support. Any inconsistency with the approved financial support, and the basic assumptions, constitutes a breach, cf. clause 7.
Procurement of goods carried out and financed during the partnership implementation must be effected according to acceptable rules for procurement in order to obtain value for money.
2. THE DANISH COMPANY
These General Conditions for support apply to the Danish company who has been granted and/or have received support from Danida.
The Danish company declares that they enter into this agreement of their own free will, are acquainted with and agree to follow the guidelines and conditions for support issued by Danida. The Danish company agrees that it is their responsibility that associated partners and consultants abide by these General Conditions.
Danida sets out general criteria, which the partners must meet to be eligible for support.
Meeting of these requirements, however, does not in itself entitle organizations/companies to receive financial support. The company must also be able to meet an individual Danida assessment taking into consideration e.g. such issues as organization/company capability, development aspects, project feasibility and compliance with the Danida efforts in the recipient country. The assessment of whether or not a project is eligible for Danida support is a sovereign decision by Danida.
3. STATUS OF DANIDA
DANIDA is not a contractual party to any agreement between the Danish company or any partnership agreement with complementary partners. DANIDA shall not be liable to the Danish company for the acts of any authorities, banks or external consultants who may be involved in the activities of the cooperating partners, even though DANIDA may have pointed out, contracted with and/or paid fees to the said third parties. The Danish company shall ensure that their contracting counterparts do not consider DANIDA as liable to the project.