PSI is a programme of the Dutch government that supports investments in emerging markets in Africa, Asia, Latin America, the Middle East and Eastern Europe. The programme aims to stimulate investments in developing countries, as well as long-term commercial relations with companies in those markets. This leads to a stronger private sector in the developing world.

The Dutch government attaches great importance to the private sector in developing countries since this sector is the driving force behind poverty alleviation. Creating employment and transferring knowledge contribute to economic development. PSI assists the business community to bring this about.

The programme is funded by the Ministry for Development Cooperation of The Netherlands and executed by the EVD, agency for international business and cooperation.

How does it work?
PSI acts as a co-f inancer of innovative investments in one of the eligible countries on the list below. Projects must be set up by two companies, an applicant and a local partner. The applicant can be from The Netherlands (for tied countries), or from anywhere but the country where the project will be set up (for untied countries). The local partner must be from the country where the project will be implemented.

PSI finances these projects on the conditions that:

·    They are innovative for the country in question;

·    They are the first step in sustainable cooperation between the enterprises concerned;

·    They lead to follow-up investments upon completion of the project period.

The projects should also be commercially viable and should have impact on the local economy. This concerns impact in terms of employment created, knowledge transferred, impact on the chain, impact on the environment and impact on the position of women.

The maximum project budget is € 1.5 million. If a grant is awarded, PSI donates 50% of this amount. The country list below indicates which percentage applies.

PSI and PSI Plus
For five countries (Afghanistan, Burundi, Palestinian Authorities, Sierra Leone and southern Sudan) a separate programme called PSI Plus will be launched. This programme has some additional features, among which a 60% contribution instead of 50%, in order to facilitate private sector investments in these countries even more.

Tender procedure
Project proposals can be submitted during the two tendering rounds held annually for PSI, and four times per year for PSI Plus. For both programmes the next round will close early 2009. See our website  www.evd.nl/psi for the exact dates. The guidelines and mandatory application form are also available at this website.

Intake
Feel free to discuss your project idea with the EVD in order to determine whether your project idea fits PSI's requirements. Fill out the intake-form on our website and you will be contacted by one of our project officers.

Contact
EVD International Business and Cooperation              Call +31 (0)70 - 778 8513
Private Sector Investment Programme (PSI)              Email  psi@info.evd.nl
Po Box 20105                                                          Internet  http://www.evd.nl/psi
2500 EC The Hague - Netherlands

PSI - Overview of eligible countries
Country	PSI contribution	Tied/Untied1	Remarks
1.                   Afghanistan	60%	Untied
2.                   Albania	50%	Tied
3.                   Armenia	50%	Tied
4.                   Bangladesh	50%	Untied
5.                   Benin	50%	Untied
6.                   Bolivia	50%	Untied
7.                   Bosnia-Herzegovina	50%	Tied
8.                   Brazil	50%	Tied	Only northern regions, only open in 2009 and 2010
9.                   Burkina Faso	50%	Untied
10.                Burundi	60%	Untied
11.                Cape Verde	50%	Untied	Will become tied after 2009
12.                Colombia	50%	Tied
13.                Ecuador	50%	Tied	Only first tender 2009
14.                Egypt	50%	Tied
15.                El Salvador	50%	Tied	Only first tender 2009
16.                Ethiopia	50%	Untied
17.                Gambia	50%	Untied
18.                Georgia	50%	Tied
19.                Ghana	50%	Untied
20.                Guatemala	50%	Tied
21.                Honduras	50%	Untied	Only open in 2009
22.                Indonesia	50%	Tied
23.                Kenya	50%	Tied
24.                Kosovo	50%	Tied
25.                Macedonia	50%	Tied
26.                Madagascar	50%	Untied
27.                Malawi	50%	Untied
28.                Mali	50%	Untied
29.                Morocco	50%	Tied
30.                Moldova	50%	Tied
31.                Mongolia	50%	Tied
32.                Mozambique	50%	Untied
33.                Namibia	50%	Tied	Only open in 2009 and 2010
34.                Nepal	50%	Untied
35.                Nicaragua	50%	Untied
36.                Pakistan	50%	Tied
37.                Palestinian Authorities	60%	Untied
38.                Peru	50%	Tied
39.                Philippines	50%	Tied
40.                Rwanda	50%	Untied
41.                Senegal	50%	Untied
42.                Sierra Leone	60%	Untied
43.                South Africa	50%	Untied
44.                Sudan	50%	Untied
45.                Southern Sudan	60%	Untied
46.                Surinam	50%	Tied
47.                Tanzania	50%	Untied
48.                Thailand	50%	Tied
49.                Uganda	50%	Untied
50.                Vietnam	50%	Tied
51.                Yemen	50%	Untied
52.                Zambia	50%	Untied
1 Tied means only Dutch companies can apply for PSI in this country. Untied means companies from any country except for the country where the project will be located, may apply for PSI in this country.