Making Private Sector Development a Priority. . . Celene - - PowerPoint PPT Presentation

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Making Private Sector Development a Priority. . .

Celene Cleland-Gomez Enterprise Innovation Challenge Fund Coordinator

Overview of the Program

Foreign Affairs, Trade and Development Canada (DFATD) UK Department for International Development IDB Caribbean Development Bank Started: August 2010 5-year execution period

With a total value of over US$40 million, Compete Caribbean is the largest technical assistance program targeting private sector development in the region

Participating Countries

Jamaica Haiti Dominican Republic Trinidad & Tobago Grenada Barbados

• St. Lucia
• St. Vincent &

Grenadines Antigua & Barbuda Dominica The Bahamas St Kitts & Nevis Belize Guyana Suriname

15 CARIFORUM Member States

Enterprise Innovation Challenge Fund Private Sector Business Climate and Competitiveness Enhancement Facility Public Sector Comprehensive Framework for Private Sector Development and Knowledge Management

• Clustering Initiatives
• Direct Firm Support
• Business Climate

Enhancement

• Public Private Dialogue
• Knowledge Generation
• Knowledge Sharing

What does Compete Caribbean fund?

US$10,6 M US$13,3 M US$4,4M

. . . provides technical assistance and investment funding to support firms, clusters and value chains to develop new products and services, implement new business models, and access new markets fostering innovation and competitiveness.

Support to Clusters Window Innovation Window Enterprise Innovation Challenge Fund

Leveraging the strengths of the Private Sector . . the EICF

THE INNOVATION WINDOW

Creating Competitive Advantage One Firm at a Time…

Grant Awards - 2013 Regional Communications Limited (CELLUCIAN) Manufacturing

• St. Lucia

Manufacturing of first global frequency 4-SIM/4-phone Total award US $500,000

Technical Assistance Awards- 2013 Solar Carport Network & Smart Link Technology (Barbados)

ECO-FRIENDLY HANDBAGS (St. Kitts and Nevis)

The firm uses recycled materials to produce women’s

• accessories. Using grass, discarded tires, newspaper and other

items usually tossed in the trash, the company uses modern recycling techniques combined with traditional weaving and handcrafting to create purses. The Project will design and build a network of inter-linked solar powered charging stations for electric vehicles across at least ten strategic locations in Barbados.

Technical Assistance Awards- 2013 dloHaiti

dloHaiti seeks to implement a decentralized water purification and distribution model that reduces reliance on water transport by large trucks.

Caribbean LED Lighting Ltd. WINSUN

This project will combine the bundling of the best existing technologies with innovative design to develop an affordable renewable energy generation and storage product called WINSUN.

Technical Assistance Awards- 2013 Barbados Biogas Enter the Green Economy

Caribbean Renewable Energy will set up a commercial Anaerobic Bio digester in Barbados to convert organic waste into biogas and then combust this biogas to produce renewable electricity.

Innovation Window Activity to Date

Eco-Innovations Call – Jan 2013 37 PCNs 5 IBPs IP – Oct 2013

• Oct. 2012

80 PCNs 7 IBPs IP - July 2013 CIM - 2011 166 PCNs 12 IBPs 3 awards

Oct 2011 130 PCNs 4 IBPs 1 award

Innovation Window Activity

CALL OPEN NOW Closes October 31

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A competitive mechanism that provides non- reimbursable funding of up to US$500,000 to firms and entrepreneurs to take a chance on an innovative, risky business idea to improve the revenue performance and competitiveness of the firm. The window will finance innovative ventures to develop new products, implement new business models, or enter new markets.

What is the Innovation Window?

14 Private Sector firms legally established in a CARIFORUM country; and who:

• Register for consideration under the window;
• Present all documentation required by the window;
• Have no enforceable outstanding tax or social benefit obligations;
• Is not delinquent in the servicing of existing debt instruments;
• Commit to provide counterpart funding (up to 50%) and accept the

financial requirements of the program.

• Agree to involvement in the program’s visibility campaigns;
• Agree to cooperate in the development of an Innovative Business

Plan;

• Agree to provide all information required for monitoring and

evaluation of results and impact;

• Certify that they are not receiving grant financing for the

development of a business plan from another donor agency

Who Can Compete?

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To be considered ideas must:

• Be innovative (product, process, marketing or
• rganizational);
• Have commercial application and sustainability;
• Be able to be completed within the time frame specified

in the call parameters;

• Have the potential to positively impact the livelihood,

skills and incomes of employees and suppliers of inputs and services;

• Be submitted to the PCU using the established

mechanisms;

What Type of Ideas are Competitive?

What Project Activities Can Be Funded?

• Consultancies to support the preparation of the business plan,
• rganization, institutional and coordination activities, legal

advice, selection and hiring of personnel aiming at that

• bjective;
• Capital investment directly associated to the development of

the project;

• Consultancy services (market studies, technical assistance,

management consulting, etc.).

• Investment in machinery or equipment or other inputs that will

improve productivity, process and product development, quality improvement and design, strategic management, access to markets and market intelligence, etc;

• Intellectual or industrial property protection;
• Knowledge management;

Sorry, NO Can Do . . .

• Working capital;
• Investment in capital goods that are not directly related

to the Project;

• The purchase of real state or vehicles;
• Construction of physical infrastructure costing more

than 30% of the project;

• Payment of debts, dividends, taxes or recovery of

capital, purchase of stocks, bonds or any other liquid values;

• Administrative or operating expenses;
• The purchase of goods for the project that exceeds the

30% of the total cost of the project.

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How it works – Choosing the Winners

Stage 2 Business Plan Competition Stage 3 Announcement of Winners

Due diligence

PCNs are reviewed IDB Specialist review Internal panel reviews Top ranked ascend

IP reviews and recommends to EC Winners are announced

Stage 1 PCN Competition

IBP is developed Submitted to IP

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Stage 4

How it Works … Implementing the Project

Compete Caribbean conducts monitoring and evaluation of the implementation of the project in cooperation with the firm Grants are disbursed based on milestones as the firms implement their projects A Technical Cooperation Agreement is negotiated between the bank and the winning firms

Among the top ranked?

About 5 Months to decision Due diligence 2 weeks IBP is developed 2.5 mths Submitted to IP 3-4 weeks Submitted to EC 3 weeks

Selecting the Winners

Evaluating Criteria:

• Technical quality of the project: innovative merit is considered in

the development of a new idea, or any differentiating factor of an already existing one. Technological impact is important.

• Business Plan quality: commercial strategy, market impact and

knowledge, economic results and projections overtime, growth potential, economic indicators evaluation, risk factors, are considered here.

• Coherence: Degree of adequacy in the relationship between

planning, activities of execution and results.

• Export Potential
• Environmental impact
• Impact on livelihoods; employment, poverty, income, young

people, ethnic minorities, etc.

• Gender mainstreaming (policies that benefit women)
• Appropriateness in the experience, history and background of the

applicant, in terms of competencies for project execution.

How Do I Apply?

• The Innovation Window will receive applications in

response to a call for proposals at intervals during the year;

• The application process is exclusively electronic and can

be accessed from our website at: www.competecaribbean.com;

• The fund is structured as a competition and not every

submission can be a winner;

• Winners are chosen through a meticulous, rigorous

process of review;

• Applicants will be notified of the outcome following

each stage.

THE SUPPORT TO CLUSTERS WINDOW

Building Competitive Advantage through Cooperation

• OECS MARITIME CLUSTER
• Seeks to promote economic growth in the OECS

countries through the development of a more effective maritime transport sector. Project should bolster intra- regional trade and foster regional integration.

• TREASURE BEACH CLUSTER
• Attempts to diversify the tourism product in Jamaica by

forging strategic linkages between the Tourism sector and small entrepreneurs within the Treasure beach community.

GRANT AWARDS (Provisional)

• CATCH AND RELEASE SPORT FISHING IN THE

RUPUNUNI Objective is to develop further the ‘Catch and Release Sport fishing’ ecotourism cluster initiative within the Amerindian Community of North Rupununi in Guyana.

• GRENADA NUTMEG CLUSTER

Seeks to maximize the economic benefit of nutmeg through the production of value added products for export.

• BELIZE SHRIMP CLUSTER

By achieving ASC Shrimp certification, the Belize Shrimp growers will increase its global competitiveness by having access to niche markets in Europe, USA and the Caribbean.

GRANT AWARDS (Provisional)

TECHNICAL ASSISTANCE AWARDS- 2013

• PRINTING AND PACKAGING CLUSTER OF

JAMAICA

• This project is to develop a cluster for the

printing and packaging industry that will pursue initiatives to increase the capacity of players along the value chain.

• ANIMATION OUTSOURCING & INTELLECTUAL PROPERTY

DEVELOPMENT CLUSTER OF THE REGION

• Funding will underwrite the development of the human,

technical and operational capacity of the region’s animation industry to compete globally in animation production.

TECHNICAL ASSISTANCE AWARDS- 2013

• HOTEL CLUSTER OF GRENADA
• To support the hotel cluster in Grenada to

develop and adopt sustainable tourism practices.

• PROJECT CHRYSALIS OF BARBADOS
• To position the creative arts industry of Barbados for global

competitiveness, by building capacity through training programs and direct mentorship in the production of TV and film programming.

TECHNICAL ASSISTANCE AWARDS- 2013

• ORNAMENTAL FISH INDUSTRY OF JAMAICA
• To develop the sector into a sustainable export

sector;

• FORESTRY PROJECT OF GUYANA
• To develop the value added wood sector to address

current constraints to production and exports.

TECHNICAL ASSISTANCE AWARDS- 2013

SURINAME RAINFOREST EXPERIENCE

• This project will develop the Rainforest

Experience and transform the tourism offered by Suriname.

STRENGTHENING INOVATION AND ENTREPRENUERSHIP WITHIN THE ICT/BPO INDUSTRY (JAMAICA)

• This project is intended to fund the development of a

common entrepreneurial facility to support the development of business process outsourcing start ups and expansion of existing operations/vendors.

TECHNICAL ASSISTANCE AWARDS- 2013

• POMEROON EXPORT PRODUCERS ASSOICIATION OF

TRINIDAD AND TOBAGO

• This project will develop the export of agricultural

produce in particular chilled and frozen coconut water from Pomeroon in Guyana.

Why a Cluster Approach for the Caribbean?

 A multitude of MSMEs  Small domestic economies  Limited pools of specialized inputs Clusters represent an opportunity for SMEs to access larger and more sophisticated markets, lobby governments for necessary reforms and infrastructure and jointly develop resources and access to markets that otherwise they could not access.

What is the SCI

A funding window that provides non-reimbursable funding of up to US$ 500,000 to clusters and value chains to develop initiatives that will improve the ability of the collective to compete in global and regional markets. The window will finance goods and technical assistance to:

• Develop and upgrade products and services;
• Innovate and improve productivity and quality (Value chain studies and

efficiency changes;

• Improve employee and managerial capacity;
• Access export markets and attract investments.

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Private sector firms, NGOs, Chamber of Commerce, Universities or Civil Society organisations established in a CARIFORUM country; and who are: A group of at least two companies that come together to develop a project in order to address a common challenge and/or associate to improve productivity and competitiveness; Operate as a value chain where there is an alliance between a lead business and its providers to develop a project that contributes to the competitiveness of the chain;

Who can Apply?

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Businesses or group of businesses who form alliances with

• ther public and private actors in a given geographic

territory to develop a program or project that contributes to promoting and better integrating the productive activities in that area; In ALL cases clusters must be able to fund at least 20% of the cost of the project.

Who can apply?

What Project Activities Can be Funded?

 Establishment of Common Facility Centers;  Human Resource Development;  International Certification (social, environmental, health and safety);  Environmental sustainability concerns;  Attraction of direct investments;  Export promotion and marketing;  Promotion of innovation, technological development, upgrading and transfer;  Integration into international value chains;  Diagnostic work to support the design of a cluster project and drafting

• f a Cluster Competitiveness Improvement Plan (CCIP).

Sorry, NO can do . . .

• Payment of companies’ debts and taxes;
• Operating expenses;
• Working capital for the operation of companies;
• Activities that the applicant regularly implements with its

providers.

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How it works – Choosing the Winners

Stage 2 Business Plan Competition Stage 3 Announcement of Winners

Due diligence

PCNs are reviewed IDB Specialist review Internal panel reviews Top ranked ascend

IP reviews and recommends to EC Winners are announced

Stage 1 PCN Competition

CCIP is developed Submitted to IP

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Stage 4

How it Works … Implementing the Project

Compete Caribbean conducts monitoring and evaluation of the implementation of the project Grants are disbursed, PCU will implement activities with support from a Cluster Facilitator A Technical Cooperation Agreement is negotiated between the bank and the winning clusters

Among the top ranked?

About 5 Months to decision Due diligence 2 weeks CCIP is developed 3 mths Submitted to IP 3-4 weeks Submitted to EC 3 weeks

Evaluation Criteria

• Degree of importance (existing/potential) to

national/regional economies;

• Strength of the cluster's linkages to global markets;
• Impact of the intervention on exports, employment,

environment, gender mainstreaming;

• Coherency between the activities and budget required to

achieve stated objectives;

• Strength of the cluster to carry out/sustain collective action;
• Evidence of a platform/mechanism for consensus building.

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