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PSI – Private Sector Investment

PSI is undoubtedly the most attractive source of financing if you have a qualifying investment project. The programme, funded by the Dutch government, supports private sector investment in 59 countries, providing 50% (60% in fragile states) grant financing of investments ranging between Euro 0.5 million and Euro 1.5 million. The aim of the programme is to contribute to development in the target country by stimulating foreign-local business partnerships to invest in new economic activity that is sustainable and likely to have significant developmental impact. PSI is a competitive programme which opens twice a year with deadlines typically in February and August and is administered by NL Agency EVD Internationaal (EVD).

To qualify for PSI grant funding, an investment project needs to have the following features:
• The project consortium comprises at least one foreign company and one local partner, which aim to establish a long-term partnership (joint venture) as a result of the project.
• The foreign company (applicant) may be from anywhere except for the target country in case of the less developed countries (see PSI country list); in case of more developed countries, the applicant has to be a Dutch company; in all cases, the applicant must be a commercial company that exists for more than two years.
• The local partner is a company registered in the target country; in case of ‘fragile states’, the local partner can alternatively be a local citizen.
• The project consortium is financially capable of funding the project insofar not covered by the PSI grant as demonstrated by their audited annual accounts, if necessary complemented by third party guarantees or confirmed bank loans.
• Both the applicant and the local partner have experience that is relevant to the project.
• The project introduces new economic activity to the target country that does not directly compete with existing local businesses.
• The new economic activity established by the project is forecasted to be profitable.
• The project creates considerable direct and indirect employment; its spin-off resuls in a wider developmental impact in the target country.
• The successful project will result in follow-up investment in business expansion and diversification that can be commercially funded.
• The project partners will comply with internationally accepted good practices of socially responsible entrepreneurship.

Please contact us for a free assessment to find out whether your idea may qualify for financing through the PSI programme.

Subsidy Programmes

Agro Bio Solutions successfully facilitated numerous PSI (previously PSOM) projects in a wide range of sectors and countries. We start with carefully screening your consortium and project idea, and where necessary strengthen the proposition. Together with you, we prepare a first project outline for presentation to the EVD (the intake). The next step is that we take proper care of the formal application. We work with you & your team to develop a comprehensive project plan, including as required a conceptual Business Plan. We bring in our expertise and experience from previous succesful applications to upgrade your plan to a professional proposal so that it optimally meets both your commercial objectives and PSI’s formal requirements. We perform our duties with dedication and perseverance, often on a basis of a no-cure, no-pay. Generally, we support PSI projects throughout their life (typically 30 months including one operational year) at a modest fixed fee and quite possibly assist you in securing financing for further investment on project completion.

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