Annual Report on Activities and Achievements 2003 â 2004

ong>Annualong> ong>Reportong> on Activities

and Achievements 2003 – 2004

Index

• Foreword

• UNIDO ITPO Italy at a glance

o History and mandate

o The role of ITPO Italy

o New features and programmes

o Services offered

• Activities

o Operational methodology

o Promotional activities

Delegate programme

Participation in technical fairs: SANA 2004

Partnerships and seminars: Egyptian Investment Forum

o Project completion facility

Credit lines facilities (L.49/87 art.6)

Joint venture financing (L.49/87 art.7)

o Institutional support

EEAA support project

o Development of new projects

Decentralized cooperation programme

Institutional capacity building project in support of the Serbian

development agency for SMEs

Agro-Industry: traceability of export products

Energy-Environment programme: promoting private involvement in

sustainable development

EU programme: GONETWORK

• Annexes

o Highlights of operations 1987 - 2004

Promotional activities

I. Delegates 1987 - 2004

II. Seminars and country presentations (Italy and abroad)

III. Technical fairs and workshops with delegation assisted by ITPO Italy (Italy

and abroad)

IV. Study Tours, training, and partnerships events organized by ITPO Italy

Project completion facility

I. Descriptive statistics 1987 - 2004

II. Investment opportunities promoted during 2003 and 2004

III. Negotiations assisted by ITPO Italy

IV. Concluded projects

V. Operational projects

o Institutional support programmes carried out during 2003 and 2004

Foreword

The strength of an organization nowadays is measured according to how well it rises

to the challenges and obstacles set by the present global market.

We are also witnessing rapid and accelerating change in the quality of relationships

between states and industrial groups.

UNIDO ITPO and the IPUs connected to it are therefore trying to provide a small yet

significant contribution by stressing the concept of “network”.

Because of the challenges presented by charge, report that follows must be seen as

an example of collaborative activities that are increasingly relevant for faring the

economic and social challenges that arise.

It is a matter of fact that in a rapidly evolving market economy which aspires to

become ‘one market and one economy’ survival requires the mainstream among of

synergy, collaboration, and quality.

In this context, UNIDO ITPO contributes by trying to create an ‘integrated system’

linking different economies different productive and quality standards, and different

approaches to the market.

The year 2004 brought structural change to ITPO Italy. With the new and most

dynamic management, the Office gained visibility and was able to coalesce more

intimately around the leading Italian institutions. This broadened the outreach of

UNIDO, and led to the opening of additional overviews towards a more resultoriented

future.

Sincerely, we hope you will read the report and we are always grateful for any

feedback.

UNIDO ITPO Italy at a glance

History and mandate

The Industrial and Technology

Promotion Office (ITPO Italy) was

established in Italy on August 12, 1985

through an exchange of letters between

UNIDO and the Italian Government, and

started operations in October 1987. After a

series of successful joint evaluations by

UNIDO and the Italian government, the

planning horizon of activities was repeatedly

extended (in 1989, 1994, and 2002) until

the end of 2005. In the meantime, a

secondary office devoted to issues specific

to Small and Medium sized Enterprises was

opened in Bologna in 1998. In 2004, upon

recommendation by the Italian government,

the office in Milan was closed and a new

main office was opened in Rome.

In accordance with the decisions of

UNIDO policy-making organs, the Office

mandate is to contribute to industrial

development and economic growth in both

developing and transition economy

countries. This is pursued by mobilizing

resources (e.g. technical, financial,

managerial) required for the

implementation of specific industrial

investment and technology adoption

projects, from Italy to partners in targeted

countries.

The Office contributes to the

broader UN Millenium Development Goals

by triggering economic growth and

improved living standards. This is

accomplished by supporting

entrepreneurship and job creation through

the promotion of SMEs in countries of

intervention. Through the investment

promotion, ITPO Italy creates linkages

between the business communities from

developed and developing countries

fostering the transfer of technology, know

how, managerial capabilities and/or capital

for the realization of industrial projects.

Since 1998, the General

Directorate for Cooperation and

Development of the Italian Ministry of

Foreign Affairs has been adopting a new

approach to sustain SMEs in selected

developing countries. This features

synergies between technical and financial

assistance as a means to improved

performance in the allocation of bilateral

credit lines for the purchase of equipment

and technologies by SMEs. Within this

framework, UNIDO ITPO Italy has been

entrusted with setting up and operating

Investment Promotion Units (IPUs) in

Egypt, Tunisia, Jordan, Morocco, India

and Uganda. The IPUs provide local

SMEs with technical assistance to

upgrade technology, enhance productive

specialization, and expand the scale of

operation. Individual investment projects

entail start-up costs that are reduced

through the mobilisation of financial

resources and improved access to

bilateral credit lines.

The role of ITPO Italy

ITPO Italy has been challenging the bias of

Italian companies against operating in

either developing or transition economy

countries, by taking advantage of the

European Union enlargement and

partnership policies. Most Italian

companies were reluctant to join

industrialisation programmes abroad,

especially in developing countries, due to

institutional frameworks insufficiently

supportive to private entrepreneurship. In

particular, banks and financial institutions

were ill equipped to adequately assist

private investment operations.

In the early nineties, an increasing number

of Italian firms (mostly SMEs) approached

ITPO in search of markets and partners

with the goal of maintaining their market

position through less costly production from

cheap labour and relatively abundant raw

materials. Such a demand led the ITPO to

expand the range of services provided to

SMEs, in order to better fit their needs for

continued support and customised

assistance and to promote cooperation on

a mutually profitable basis. ITPO Italy

provided Italian companies with investment

opportunities, along with advice on laws

and regulations on Foreign Direct

Investment (FDI) in an effort to reduce

uncertainty on profitability prospects. The

Office has been playing a key role in

attracting FDI inflows to targeted areas.

This has been accomplished by selecting

investment projects through appropriate

screening procedures featuring project’s

appraisal, the collection of relevant data,

the identification of local partners, the

organization of tailor made bilateral

meetings, and the financial evaluation of

the project.

ITPO Italy has also been consolidating its

role in terms of institutional support by

enhancing bilateral investment initiatives

involving both private and public national

and regional institutions.

ITPO Italy professional support has been

insured at all steps of each project’s

development, with the IPUs providing

methodologies, expertise and operational

support under the guidance of the central

Office. In particular, the creation of IPUs in

selected Mediterranean countries, each

one associated with a bilateral credit line

made available by the Italian Government,

enabled the ITPO to play a significant role

in the Euro-Mediterranean Partnership. In

this respect, the relocation to Rome

resulted in enhanced performance of the

IPUs and in an unprecedented expansion

of the influence and reach of the ITPO’s

operations, which led the promotion of an

increasing number of bilateral investment

projects.

ITPO Italy and the IPUs jointly develop

feasibility studies and business plans that

are perceived as an intermediate but

fundamental step towards the definition of

a financial package. This is a distinctive

feature of ITPO’s interventions as more

Italian companies are contemplating the

option of transferring technology and skills

to emerging markets in developing

countries displaying sustained growth

rates, in order to take advantage of high

profit expectations.

The experience of the ITPO indicates that

the specific approach based on project

selectivity is instrumental in stimulating the

flow of private investment towards

developing countries, thereby facilitating

the internationalisation process of Italian

enterprises to the benefit of recipient

countries.

New features and programmes

UNIDO ITPO Italy features new activities which are complementary to the institutional ones.

These encompass:

Decentralized cooperation

This consists of assisting Italian decentralized authorities – Regions and Provinces – as

subjects of economic cooperation in developing countries, providing them with support on

needs assessment, support for the formulation of technical assistance programme, joint

implementation of the cooperation programmes and, finally, syndication of peer members to

prepare the programme.

Agro-industry programme

Agriculture is the backbone sector in many developing countries, and a primary source of

employment that can generate hard currency through exports. Taking advantage of the

highly advanced and specialized Italian agriculture sector, ITPO will be focusing on

framework programmes aiming at enhancing the available logistic, agronomics, commercial

and market expertise (exp. Traceability Project, Green Corridor)

Environmental-Energy programme

Energy policy is of the utmost importance in sustaining stable industrial development paths.

For this reason, UNIDO ITPO Italy is setting up a promotion and technical assistance

program to support private companies in collaboration with the Italian Ministry of

Environment.

European Union programmes

Jointly with other ITPOs and eligible applicants such as Italian and foreign Regional

Authorities, UNIDO ITPO Italy will participate in EU tenders and calls for proposals to utilize

allocated funds for cooperation programmes such as ASIAINVEST and INTERREG, allowing

for a stronger impact of the ITPO policy.

Services offered

Information on emerging markets

ITPO Italy is a source for up to date information on legal matters and economic

conditions, on investment financing and opportunities for industrial cooperation in both

developing and Eastern European countries. Jointly with UNIDO Headquarters, ITPO

Italy is engaged in the identification, formulation and assessment of investment

opportunities. Upon screening, projects are promoted among Italian entrepreneurs as

likely business partners.

Partners search

The involvement of a local partner increases the chances of success for an industrial

investment project. ITPO Italy assists Italian entrepreneurs in the process of matching

suitable partners from areas of intervention. This activity is carried out both directly and

through the ITPO’s decentralized “operative antennae”, and encompasses the feasibility

evaluation of each project.

Entrepreneurial meetings

Business meetings both in Italy and abroad are arranged by ITPO Italy mostly in

developing countries, upon specific request of individual entrepreneurs and at specialized

sectoral exhibitions that delegations of local entrepreneurs have been invited to

participate to.

Preliminary evaluations of investment projects

ITPO Italy assists Italian and local entrepreneurs interested in undertaking business

initiatives by carrying out preliminary evaluations to asses economic and financial

feasibility.

Assistance to Italian and foreign companies applying for financing under law

49/87, art. 6

Credit lines to support the acquisition of updated industrial goods and services of

(prevailing) Italian origin in favour of foreign companies are established by law 49/87, art.

6. ITPO Italy advices potential Italian technology exporters on application procedures

and requirements, and assists (with the collaboration of local IPUs, wherever available)

eligible foreign firms throughout the preparation of technical documents required to apply

to credit lines channelled through the local banking system.

Assistance to companies applying for financing under law 49/87 art. 7

Under the agreement concluded with the Italian Ministry for Foreign Affairs, ITPO Italy is

entrusted with (i) the promotion of application of law 49/87, art.7 by potential Italian

beneficiaries, (ii) the provision of information on the specific applicability to individual cases

and, most of all, (iii) the preparation of technical documents required to apply for financing

the equity participation of Italian companies in a Joint Venture under law 49/87, art. 7.

Depending on the amount to be financed and the complexity of initiatives, the assistance

may extend from the preparation of a business plan with a financial pre-appraisal of the

project, to a complete feasibility study.

Assistance in negotiations, including the preparation of business plans

ITPO Italy provides assistance to Italian companies during all phases of negotiation with

potential foreign counterparts, including the organisation of company visits, the definition

of the technical and economic parameters of projects, the drafting of agreements, and the

preparation of complete business plans to facilitate access to available credit lines and

financial resources.

Activities

Operational methodology

The set of activities carried out by ITPO Italy constitutes a specific operational methodology.

The ITPO office manages programmes, such as ITPO itself and the IPUs in the

Mediterranean area, as well as develops new programmes.

Each programme passes through a development phase and a management phase.

The phase of programme management includes implementation of activities and reporting.

The activities carried on in the Program Management phase can be divided into:

Promotional Activities

Projects Completion Facility

Institutional Support

Components of the

Programmes

PROMO

PCF

INSTITUTIONAL

SUPPORT

PROGRAMME

MANAGEMENT

PROGRAMME

DEVELOPMENT

Promotional activities

Investment promotion activities aim at disseminating information among the Italian business

community information concerning the investment opportunities existing in developing

countries and countries in transition. On such a basis, occasions for direct contacts between

the Italian business community and entrepreneurs from emerging countries were organized.

The attention of potential Italian investors for selected individual investment opportunities

was solicited with a view to promote the transfer of investment and technology towards

developing countries and countries in transition.

The investment promotion capabilities of the Office were reinforced and deepened in order to

expand the Office reach out with respect to the Italian business community.

Moreover, important synergies with selected Italian institutions were pursued so as to make

available to the Office and to the Organization the expertise and the knowledge existing on

the Italian territory.

Country presentations and seminars for selected developing countries were organized

aiming at providing first-hand information on economic, political and social situation,

particularly with respect to foreign investment legislation and regulations, industrial

cooperation opportunities and incentives for foreign investments, including the utilization of

bilateral credit lines.

For the “Delegate Programme” delegates from developing countries were hosted for a period

of time at the ITPO in order to promote international industrial relations (see following box

and annexes)

Multinational delegations assisted by ITPO Italy participated at more than 40 Italian and

foreign business fairs and workshops in the last 4 years.

The ITPO organized specific study tours for foreign delegations in the Italian territory

providing the participant with information and direct experience on the Italian and European

framework.

Moreover the ITPO prepared and continually updated a portfolio of: i) Italian enterprises

interested in establishing business partnerships in both developing and transition economies

countries, and ii) investment and technology projects from developing countries to be

promoted in Italy.

Seminars and Country Presentations

Seminars

Held

2003

2004

Fairs and Workshops

Fairs 2003 2004

10 12

Partnerships Events

PROMOTIONAL

ACTIVITIES

Events

2003

2004

Study Tours / Trainings

Delegates Programme

Delegates 2003 2004

Study Tours

2003

2004

Delegate programme

The “Delegate Programme” allows the ITPO to recruit, on a temporary basis, officers

from developing countries with the specific objective of promoting industrial relations

between enterprises in these countries and Italy. The delegates, recruited from public

institutions, banks and entrepreneurial associations operating in the field of foreign

investment promotion, are assigned the task of presenting Italian entrepreneurs with a

portfolio of accurately screened and verified investment opportunities.

Utilizing the ITPO’s operative methodology and the Office’s network of contacts, the

delegates act as focal points between the entrepreneurial sectors of their own countries and

Italy, creating a framework within which businessmen of both countries can develop their

projects. The delegates are expected to contribute to their country’s image building process

by participating to seminars and preparing documents for specialized press and magazines.

Within this framework, their work focuses, however, on fostering and organizing direct

interactions between potential counterparts. Either as a follow-up to the promotion of projects

from their country or in response to specific requests from the Italian private sector,

delegates are extensively involved in project negotiations, organizing meetings and

sometimes accompanying prospective Italian investors to their home country. The delegates

offer the Italian entrepreneurial sector their awareness of the legal and economic situation of

their countries in relation to the setting up of joint-ventures and foreign investment. Moreover,

through the Programme, the delegates are exposed to investment promotion and project

appraisal methodologies and have the opportunity for an articulated on-the-job training.

The “Delegate Programme”, active in all of UNIDO’s industrial promotion offices, has

demonstrated itself as an important element in the work programme of the offices and has

proved extremely effective as an instrument for institutional support as well as for the

stimulation of bilateral interaction between the home countries and Italy. The presence of

delegates in UNIDO Offices, in addition to triggering interest in their countries of origin, has

been instrumental in mobilizing human and financial resources and has provided an

indispensable service to all entrepreneurs interested in developing industrial co-operation

agreements.

It is worth highlighting that, at the end of their assignment with the Office, the

delegates resume their posts in their home country and can continue acting as privileged

contact points within the institutional system of their country of origin for the IPO as well as

for the Italian business community

There are now two delegate programmes ongoing and several ones are under

preparation.

Participation in technical fairs: SANA 2004

UNIDO ITPO Italy participated in SANA 2004 (international fair in natural products: Food

Health and Environment) with a stand hosting international delegations.

After the participation of ITPO Italy at “SANA 2002” (Bologna, 12 th – 15 th September 2002)

and “SANA 2003”, (11 th – 14 th September 2003), the organization of the fair – Fiere e

Comunicazioni srl – asked UNIDO Italy to repeat the experience of the previous years

The delegation hosted at the stand came from Argentina, Egypt and Bosnia-Herzegovina

for the Medical and Aromatic Plants sector, Jordan for natural cosmetics from the Dead See

and Tunisia for the olive oil sector.

On this occasion the ITPO organized a workshop with business to business meetings

between Italian companies and companies coming from several developing countries looking

for collaboration and commercial opportunities in numerous sectors.

The foreign entrepreneurs were selected by UNIDO in order to meet Italian counterparts with

whom they could present their commercial and investment projects.

Moreover the ITPO, in collaboration with SANA, organized specific seminars:

‣ The organic olive oil market in Tunisia , growing perspectives and investment

opportunities

‣ In collaboration with the UNIDO-ICS research center of Trieste, local operators of the

MAP sector presented the market situation and opportunities in Egypt and Argentina.

In this occasion UNIDO-ICS presented its program for the MAP valorization and

utilization.

Partnerships and seminars: Egyptian Investment Forum

The Egyptian Investment Forum, held in Cairo on December 15 th 16 th 2003, is an example of

neworking between ITPO Italy and IPUs.

Within the celebration of the ”Italian – Egyptian Year” the Forum was an occasion of political

and economic evaluation and planning of cooperation between the two countries.

The forum was organized by UNIDO IPU Cairo, in collaboration with GAFI (General Authority

for Investment and Free Zones) and the Embassy of Italy in Cairo, and supported by UNIDO

ITPO Italy.

The event set together Governmental Institutions, ministries, Businessmen Associations and

companies from Italy and Egypt, in the attempt of highlighting what should be done in order

to foster Italian investment in Egypt, within a broader regional approach towards common

markets and according to Euro – Mediterranean agreements.

Around 600 Egyptian companies and 100 Italian companies and institutions attended the

Forum .

The Forum aimed at:

• Obtaining a realistic picture of the status of six different industrial sectors( Namely:

agro-food, textile, leather, furniture, environment and automotive components)

• Bringing together financial and political authorities

• Giving Italian and Egyptian entrepreneurs the opportunity to meet each other through

business to business meetings

• Following up the so called “Green Corridor” between Italy and Egypt, focusing on the

transport related issues.

Projects completion facility

UNIDO operates as a catalyst and promoter of co-operation agreements and joint ventures

stimulating and guiding the sponsors and promoters of investment projects in the planning

and negotiation with potential partners. The international business community increasingly

recognizes UNIDO’s comparative advantages as an investment catalyst, as well as the

validity and effectiveness of its methodology. Following such methodology UNIDO provides:

Access to investment information, institutions and private businesses through its worldwide

contact network;

Direct access to enterprises in developed countries through the UNIDO ITPO network

operating as an impartial intermediary and honest broker;

Access to entrepreneurs in developing and Eastern European countries and information

on their industrial activities;

Assistance in making pre-investment assessment;

Experience in establishing and supporting investment promotion agencies in developing

countries through capacity building projects;

The capability of mobilizing financial resources from institutional and/or commercial

banks for direct investments.

Within such a framework, the ITPO operates according to the following promotion

scheme:

The local promoter in a developing country, or in some cases the Italian investor, is

assisted to prepare an investment project profile. The proposal, after UNIDO evaluation, is

declared ready for promotion when sufficient information is available on the project and on

its sponsor. An investment profile form containing basic information, such as product

description, manufacturing process, market potential, type and volume of investment,

production costs and infrastructure is prepared. The fact that UNIDO has identified a

suitable partner is a very essential feature, allowing direct contact between potential

counterparts to be established and reassuring the prospective Italian investor that the

proposal has the managerial and financial support of a local entrepreneur.

Summary lists of project profiles are dispatched to the ITPO’s contact points, which

include local banks, industrial associations and chambers of commerce, as well as

individual Italian firms with which the Office has established direct operational contacts.

Subsequently, enterprises interested in obtaining supplementary information on any

investment proposal receive detailed project profiles.

An investment proposal is considered under negotiation when the two potential

counterparts have established direct contacts. During this phase, UNIDO, when requested,

may facilitate these negotiations, finalize financial pre-appraisals and offer advisory services

to both parties. The project is considered concluded when the foreign partner or local

investor informs UNIDO that they have signed a detailed written agreement or joint-venture

contract to cooperate in the implementation of the project.

Once a formal and detailed joint-venture agreement exists between two partners, they

may request UNIDO to assist them in formulating a pre-investment analysis according to

the criteria established by UNIDO in the “Manual for the Preparation of Industrial Feasibility

Studies” and utilizing COMFAR software.

In order to promote the implementation of the project, the ITPO presents the preinvestment

analysis to financial institutions, banks and insurance/guarantee agencies.

Operational

Under Promotion

Projects

2003

2004

Projects

2003

2004

Operational

U. Promotion

223

PCF

Under Negotiation

Concluded

Projects

2003

2004

Projects

2003

2004

U. Negotiation

Concluded

Credit lines facilities (L.49/87 art. 6)

The Italian Ministry of Foreign Affairs – General Directorate for Cooperation to Development

– launched programmes targeting the development of local Small and Medium Enterprises

(SMEs) in selected countries. The programme is designed so as to integrate a technical

assistance with a financial assistance component.

- technical assistance is insured by creating local Investment Promotion Offices in the

Countries, opened within local Agencies relevant to the SME development and the

attraction of foreign direct investments.

- Financial assistance is offered through bilateral credit lines, offered at soft conditions

to the SMEs through the local banking systems, in order to encourage the update of

their processing equipment and techniques.

With respect to the Italian bilateral credit lines, the UNIDO network (IPUs and ITPO in Italy) is

in charge of:

- Identifying the business opportunities,

- Supporting the selection of appropriate industrial technology,

- Contributing to the preparation of the business plan,

- Following up the relation with the Italian technical supplier,

- Introducing the Italian supplier to the procedure and regulations of the credit line (proforma

invoice and settlement)

- Checking the technical consistency of the Italian supplier with respect to the

equipment and know-how object of the transaction, following up the procedure with

the relevant Italian Authorities

Joint-venture financing (L.49/87 art.7)

Art.7 of Law 49/87 represents a financial cooperation tool created to support the

creation/expansion of joint ventures in developing countries encompassing specific eligibility

criteria. The soft-condition loan offered to the participating Italian company is proportional to

the equity capital contributed into the joint venture.

An Italian enterprise (not an individual) is eligible to the soft-condition financing if it acquires

an eligible share in the joint venture , if the joint venture is located in an eligible developing

country and if the sector falls within the following categories: agriculture, industry and

infrastructure - limited to transports, telecommunication, energy, as well as the health and

water sectors - .

Participation of the Italian enterprises can be structured in new initiatives, rehabilitation

and/or expansion of existing initiatives (either joint ventures or fully local firms), funded by an

increase of capital to which the Italian company takes share, and B.O.O.T. operations (Buy,

Own, Operate, Transfer), given the ownership and the management time horizon is not lower

than 10 years.

The soft condition loan is denominated in euro (€) and can range up to 70% of the equity

capital share of the Italian enterprise. The percentage ranges from a minimum to a

maximum according to specific parameters.

The soft loan is extended with a grace period of 2 years plus 8 years of repayments, at a soft

interest rate, covered by guarantees.

The UNIDO ITPO Italy office since 1995, under agreement with the MAE/DGCS, provides

technical assistance to the Italian companies aimed at evaluating and applying to the art.7

facility.

In particular, the ITPO provides a two-fold support to the Ministry and the companies,

supporting the information and the utilisation of the article 7 provisions, by:

• Providing information on financial matters ex Art.7

• Offering elements on assessing investments projects

• Assisting in technical and financial evaluation of projects

• Preparing technical and economic appraisal reports for investments projects

(business plan, feasibility studies) which are essential to the financing request

Following the agreement with the Italian Ministry of Foreign Affairs, the technical assistance

services offered by UNIDO are free of charge (particularly, the preparation of business plans)

Institutional support

ITPO provides support services to Italian and foreign countries institutions in order to

smoothen and accelerate the development of industrial partnership projects in developing

countries, with due account of expertise and experience available in UNIDO.

UNIDO know how and expertise in the field of technology transfer and acquisition,

contractual arrangements, investment guarantees, compliance with international standards in

quality, environment, etc. were made available and used by several institutions.

ITPO Organize and implement capacity building programmes for local institutions on issues

such as for instance investment promotion, technology transfer, and entrepreneurial

development.

Trainings

Country Studies

INSTITUTIONAL

SUPPORT

Sectoral Studies and

ong>Reportong>s

EEAA support project

1. BACKGROUND.

EXECUTIVE SUMMARY

Environmental degradation, as widely known, does have a serious impact on human health and

considerable drains on the economy of any country. The role of EPF (Environmental Protection Fund),

the public funding mechanism within the EEAA (Egyptian Environmental Affairs Agency), is to

stimulate investments in sustainable environmental projects and to mobilize private and public interest

in addressing Egypt’s growing environmental challenges and needs.

In the light of the difficulties local SMEs have been facing in getting medium term lending facilities to

finance their investments, EPF is considering to review and enhance its own financial incentive

scheme so as to better meet Egyptian SMEs’ needs, thus contributing to preserve the Environment in

the country.

In this respect, the UNIDO ITPO was required to advise the EPF in defining policies and possible new

incentive schemes. In the meantime, a definite reflection is also needed as for the financial interaction

between the EPF and local financial institutions.

2. FINANCIAL ASPECTS OF INVESTING IN ENVIRONMENTALLY SOUND TECHNOLOGIES

(EST).

The environmental awareness and its consideration in the banks’ lending procedure is a well-spread

topic in the recent literature. On the one hand, policy makers and advisors highlight how private and

public companies must be instructed about the necessity to implement proper decisions and/or

investment in order to increase efficiency

United Nations Industrial Development Organization

and, in the same time, preserve the

environment. On the other hand, the

inclusion of environmental considerations

in the loan approval procedure by the

banks is not only due to the binding

requirements, if any, enforced by each

Financial incentive schemes

Government, but also to the economic

for environmentally sound investments.

effect yielded by such investments

A reflection.

(expected profitability, reliability, default

risk and so forth).

As a matter of fact, private and public

investors face a number of factors:

Cairo, april 2004

Enrico Ambrogi

S U S T A I N A B L E I N D U S 1T R I A L D E V E L O P M E N T

1. Banks’ lending policies do not ease

the financing of Environment

Sound Technology (EST) due to

loan rates’ structure, collateral requirements, loan threshold rationing small projects;

2. The investment proposal needs to be backed by financial analysis, in order to enable

companies to evaluate different financing choices and produce reliable business plans;

3. Environmental financing facilities promoted/funded by National/Multilateral organizations and

donors must demonstrate to other financiers (e.g. local banks) that financing EST investments

yield environmental and economical benefits (the so-called “win-win projects”). Applicants,

backed by specialists, have to prove that the investment is commercially viable and it’s meant

to produce a definite and secure flow of earnings bound to repay the loan.

The key-challenge, difficult as it is, is the direct engagement of local financial institutions, since no

mechanism fully funded by governments/donors on grant basis can be expected to play a structural

role in backing EST, and related investments, in the medium long term.

3. POSSIBLE MECHANISMs TO SUBSIDIZE AND/OR STIMULATE ENVIRONMENTAL

INVESTMENTS BY SMES.

In many developing countries the due diligence process is mainly focused on the financial aspects

rather than on the straight assessment of environmental costs and risks. The first hurdle is dominant

and cannot be considered as a mere technical aspect. In other terms, a project is not generally

rejected because of an inefficient and/or inadequate environmental analysis, but rather because of the

weak financial structure of the applicants, lack of collaterals, bank’s lending policy, exorbitant risk

awarded to the specific deal etc..

In the present chapter, a number of mechanisms meant to support Environmentally Sound

Investments are discussed. In particular, their capacity to stimulate both end-users and financing

institutions is investigated.

GRANT SUBSIDY

INTEREST RATE

SUBSIDY

DIRECT LENDING

REVOLVING MIXED

LOAN

United Nations Industrial Development Organization

Mechanism’s features

50% of eligible investment costs can be

subsidized.

The grant is disbursed in advance,

subject to the funding of the remaining

amount (by shareholders, in principle).

S U S T A I N A B L E I N D U S 7T R I A L D E V E L O P M E N T

The key issue is not only to finance efficient

(win-win projects) ESTs granting soft

conditions, but also the concrete and proactive

involvement of a (limited but committed)

number of commercial banks entitled to

promote and manage the facility from the

financial point of view.

Among the mentioned mechanisms, a

revolving mixed facility (funded by the donor as

well as the private financial institutions) seems

to be the most proper tool to meet such needs,

on the basis of a framework agreement among

the partners, which should include procedure,

tentative terms of reference of eligible

operations, commercial reward in favour of

participating banks etc., so as to set, from the

very beginning, respective roles and obligations. A specific focus should be devoted to the risk sharing

between donor and financial institutions joining the facility, to back them in bearing the overall

operational risk of each loan.

4. A TENTATIVE PROCEDURE

The chapter faces the problem of how to structure a procedure consistent with the above mentioned

considerations and issues. In particular, this part of the document illustrates two main roles:

• The donor/Environmental agency, charged with implementing the eligibility/environmental due

diligence issue, with backing the applicant as well as verifying the financial/economic

feasibility;

• The partner bank, whose role is to evaluate the application according to the financial reliability

of the applicant.

Both shared risk and subsidization must exert an influence on the negotiation phase between the

partner bank and the applicant. As for the financial/economic feasibility, UNIDO is available to support

the EPF in defining procedure and related activities.

United Nations Industrial Development Organization

End-users

(i.e. Public and

private companies

implementing their

investment in EST)

Key challenge is...

the direct involvment of:

Financial institutions

participating into the

programme in view of

expanding the scheme’s

impact on the national

market

PUBLIC

FUNDS

PRIVATE

(BANKS)

FUNDS

United Nations Industrial Development Organization

Revolving Fund (Mixed provision)

Payment of capital pro-quota

+ reduced interest (0.5%)

REVOLVING

FUND

SOFT LOAN

Reimbursment

END-USER

(SME/Public

company)

Capital +

subsidized

interest (8%)

Reimbursment of capital pro-

quota+ market interest (14%)

S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T

S U S T A I N A B L E I N D U S 12T R I A L D E V E L O P M E N T

5. Conclusions.

A conducive policy to support environmentally sound investments can be hardly implemented without

a strong and proactive involvement of private/commercial financial institutions, in view of establishing

a structural mechanism capable of backing the industrial system. To achieve this goal, the most

appropriate tool might be putting together public and private funds, so as to provide end-users with

subsidized loans, together with a risk sharing policy among interested parties. A properly structured

Framework Agreement between the EPF and participating banks should define not only respective

obligations but also ranges of values relating to tenure, rates, amortization and also collaterals’

requirements. As for the alleged procedure, environmental due diligence performed by the EPF might

be integrated by an economic and financial feasibility study to be forwarded to the bank for the final

evaluation

United Nations Industrial Development Organization

S U S T A I N A B L E I N D U S 17T R I A L D E V E L O P M E N T

Development of new projects

As remarked, ITPO started new programmes, in addition to the continuing activities, aiming

at better fulfilling its mandate. These new programmes were developed in 2003 and 2004

and are now becoming operational.

Some particularly significant programmes:

Decentralized Cooperation

Agro-Industry programme – Traceability project in Egypt-

Environmental programmes

European Union programmes

Decentralized

Cooperation

Serbia Project

Agro-Industry

Traceability Egypt

PROGRAMME

DEVELOPMENT

Environmental program

Kyoto programme

European Union

Programmes

GONETWORK

Decentralized cooperation programme

The main objective of the decentralized cooperation programme is to support

Regional Authorities in developing and implementing cooperation programmes with selected

developing countries The Italian cooperation legal structure has been modified in 2001 by a

constitutional reform that introduced new powers for territorial organization (Regional and

local administration).

On the basis of the new provision, Regional and local institutions can undertake

programs and activities related to international cooperation in accordance with Italian Ministry

of Foreign Affairs guidelines.

Moreover, the European Union looks at territorial administration and at private

organizations, as new actors and beneficiaries of measures related to the establishing of the

Euro- Mediterranean Free Trade Zone (proximity policies).

On this line, Barcelona process has identified international partnerships among local

systems as the prominent tool to facilitate the sharing of experience and good practice

between Mediterranean partners and the countries of the European Union.

In view of these, the ITPO has organised a branch (decentralized cooperation

branch) with the aim of building synergies with Italian territorial organizations, Regional and

local administrations, investment promotion agencies and local development agencies, in

order to support their efforts and assit them assistance in the implementation of programs

related to new provisions. To these aims, the new branch was responsible in establishing

contacts with the new actors and in presenting them UNIDO activities in the field of technical

assistance for industrial development.

Contacts were pursued with selected Regional Authorities in order to identify priority

sectors/areas and they were assisted in the formulation, negotiation and implementation of

specific programmes with selected Developing Countries

Particular attention was paid to the Mediterranean network of Investment Promotion

Units, as they are strategically important to assist Italian decentralized cooperation actors in

the identification and in contact with local counterparts for the implementation of joint

programs.

Decentralized cooperation projects

Region Title Brief Description

Sicilia Tunisia Common activities in the field of investment

promotion in Tunisia

Marche Asia Invest Participation as partners in Asia Invest

program in China

Basilicata Kyoto Protocol implementation Support and technical assistance in Kyoto

protocol mechanism implementation for local

SMEs

Lazio Serbia and Tunisia Collaboration in investment promotion

activities within the Serbia project and with

UNIDO IPU Tunis

Veneto Serbia and Tunisia Collaboration in investment promotion

activities within the Serbia project and with

UNIDO IPU Tunis

Toscana Serbia Collaboration in investment promotion

activities within the Serbia project

Institutional Capacity-Building project in support

of the Serbian Development Agency for SMEs

The General Objective of the project is to upgrade - mainly through training - the

technical know-how of the Agency, to allow it to better support local SMEs by addressing the

key issues related to the private sector development. This process is meant to attract an

increasing flow of foreign direct investments, fostering Serbia’s integration in the world

market economy. The project will be implemented through the creation of a Support Unit in

Belgrade working in close consultation with the SMEs Agency of Serbia (and assisted by a

Backstopping Unit in Italy) and is expected to have a whole countryside outreach. The overall

activities can be divided as follows:

• Institutional capacity-building for both the Agency in Belgrade and its local branches;

• Upgrading of the Information Technology system of the Agency;

• Global investment promotion activities and finalisation/tailoring of financial and credit

access instruments.

Specific Objectives of the project are:

• To create the conditions for developing and sustaining local entrepreneurship;

• To facilitate the establishment of business linkages between Serbian and Italian

entrepreneurs and of co-operation channels between Serbian and Italian local authorities

and institutions;

• To foster policies and services in assisting SMEs through the use of up-to-date

approaches for mobilising, utilising and optimising financial resources from different

sources i.e. national, E.U. etc. with a specific focus on young and female entrepreneurs;

• To foster co-operation between Serbian, Italian and International entities in the area of

training, applied research, and innovation.

Main activities will be divided in a start-up phase (Start-up of the Support Unit at the

Agency, start-up of the Backstopping Unit in Italy and presentation workshop in Belgrade),

implementation phase (Installation of relevant hardware and software, fostering the

Information Desk, set-up of a database on existing financial tools, formal and on-the-job

training, overall technical assistance: regional offices and investment promotion, stages in

Italy, feasibility study to foster credit funds for SMEs and pilot projects) and assessment and

dissemination phase.

The results achieved at the end of the project shall be: realization and adoption of the

operational plan, strengthening of the information desk for local and Italian enterprises,

upgrading of the Agency website and realization of appropriate databases, upgrading of the

Agency’s operations in terms of hardware and software (server, personal computers,

printers, etc.), internationalization of the local production system (development of export

activities for local enterprises and attraction of foreign companies into the region), personnel

training with regard to SMEs development, credit access for local enterprises and related

financial issues, finalization of a manual with regard the operational procedures of the

Agency, data collecting on enterprises and their associations working in Serbia, financial and

organizational support interventions to local enterprises for the participation in fairs,

conventions and other relevant events.

Agro – Industry: traceability of export products

Introduction

Export of fresh products is increasingly becoming a relevant source of hard currency and

Italy is one of European countries more involved

The European Parliament issued the Regulation n° 178, 2002 that establishes the

European Food Safety Authority and lay down the procedures in matters of food safety. -

Among the principles, the regulation introduces the concept of traceability defined as (art. 3,

par. 15) “the ability to trace and follow a food, feed, food-producing animal or substances

intended to be, or expected to be incorporated into a food or feed, through all stages of

production, processing and distribution”.

Art. 11 states “ Food and feed imported into the Community for placing on the market

within the Community shall comply with the relevant requirements of food law or conditions

recognised by the Community to be at least equivalent thereto or, where a specific

agreement exists between the Community and the exporting country, with the requirements

contained therein.

Recognizing that the measures to be adopted could pose, although meant to protect

European consumers, at risk the development of non-European agro-based economy of

developing countries, the regulation introduces the art. 13 that states:

o “the Community and the Member States shall:

o par. C – contribute, where relevant and appropriate to the development of

agreements on recognition of the equivalence of specific food and feed

related measures;

o par. D – give particular attention to the special development, financial and

trade needs of developing countries, with a view to ensuring that international

standards do not create unnecessary obstacles to exports from developing

countries;”.

UNIDO has the mandate to assist developing countries and their enterprises, in the

adoption of the most up-to-date technology and policy to improve their competitiveness

UNIDO ITPO Italy and its IPU in Cairo have received, by the Italian government the

specific mandate to assist Egypt in this effort

Brief Project Description

In the framework of the “Debt-for-Development Swap” agreement, signed in Rome on

19.02.2001 by the Government of the Italian Republic and the Government of the Arab

Republic of Egypt, in compliance with the Administrative Rules and Procedures adopted by

the Management Committee on 26.08.2001 and in light of the importance of the export of

national agro-industrial products, the Egyptian Ministry of Foreign Trade decided to apply

with UNIDO, for a project meant to support the adoption of the traceability schemes of agroindustrial

products

The project, Traceability of agro-industrial products for the European market, sponsored by

the Egyptian Ministry of Foreign Trade (MoFT) and to be implemented by the UNIDO, is

meant to support Egyptian producers and exporters of agro and agro-industrial products to

Europe to comply with the new European regulation on food safety and circulation (EU

178/2002). Companies and public institutions will be assisted in their efforts to match the

requirements set by the European legislation. The initiative will prevent legislation meant to

protect consumers from becoming a trade barrier and so an obstacle to the development of

the Egyptian export and access to foreign markets.

The project includes a technical assistance component together with a funding facility for

acquisition of know-how and technology.

The initiative would guarantee future competitiveness to Egyptian exporters of agro-industrial

products and food security to European consumers. In addition to that, the project would

develop the national capability to deal with quality and certification issues.

The project has a budget of 45 M EGP: 8 M EGP are meant to be for technical assistance

and 27 M EGP are meant to be for financial assistance.

UNIDO will be implementing in coordination with the MOFT the technical assistance

component.

Expected Target Beneficiaries

The main beneficiaries of the action will be producers and exporters of agro and agroindustrial

products and national support institutions.

Specifically, exporters and importers/distributors, i.e. along the whole production and

distribution chain across the borders, will be assisted to upgrade and/or jointly establish

traceability schemes. To build the traceability schemes would require transfer of technology

and investment between Egyptians and European enterprises and support institutions. In

particular, being Italy the main commercial partner in the sector, it is proposed that the

UNIDO ITPO Italy and its investment Promotion Unit in Cairo assist the process

Expected Results

National capability (private and public) to assist Egyptian enterprises to comply with

European regulations

Development of traceability schemes certified and accredited at international level

Increased speed and credibility of Egyptian and across-the borders control systems over

origin and quality of products

Energy-Environment Programme:

promoting private involvement in sustainable development

The United Nations Industrial Development Organization (UNIDO) programmes and activities

are aimed at improving the living conditions of people and promoting global prosperity

through offering tailor-made solutions for the sustainable industrial development of

developing countries and countries with economies in transition.

UNIDO Investment and Technology Promotion Office (ITPO) Italy, financed by the Italian

Government, is part of a network of offices that have the mandate of supporting the

development of the industrial sector in developing countries through the encouragement of

partnerships, direct investment and/or technology transfer agreements between companies

throughout the world.

UNIDO International Centre for Science and High Technology (ICS) of Trieste, gives

support to the diffusion, integrated use and application of new methods and theories for

environmental assessment and analysis (e.g. for industrial development planning, sitting,

etc.). These focus on the combined application of Decision-Support Systems (DSS), Expert

Systems (ES), Geographic Information Systems (GIS) and Remote Sensing (RS) input and

output, bringing a massive expansion in the analytical capabilities available today in the field

of environmental applied research and pollution prevention.

The UNIDO cleaner production (CP) programme and network aims at building national

CP capacities, fostering dialogue between industry and government and enhancing

investments for transfer and development of environmentally sound technologies. Through

this programme, UNIDO is bridging the gap between competitive industrial production and

environmental concerns. CP is more than just a technical solution. It has a widespread

application at all decision-making levels in industry, with the chief focus on adoption of

cleaner technologies and techniques within the industrial sector. Costly end-of-pipe pollution

control systems are gradually replaced with a strategy that reduces and avoids pollution and

waste throughout the entire production cycle, from efficient use of raw materials, energy and

water to the final product.

The flexibility mechanisms of the Kyoto Protocol (KP), in particular the Joint Implementation

(JI) and the Clean Development Mechanism (CDM), have the potential to constitute a real

incentive to foster international industrial cooperation. Anyhow, till now, the novelty of these

instruments, the uncertainties produced not only by the general legal framework, but also by

a bottom-up ruling system, and the complexities of the elements that should be

demonstrated for the presentation of the projects (methodologies, baselines determination,

monitoring, etc.), has prevented most of the private sector (industries and financial sector) of

participating to this system.

For these reasons, UNIDO ITPO Italy is setting up a promotion and technical assistance

program to support private companies willing to operate within the framework of the JI/CDM

through the following activities:

1. Investment promotion: Since its creation, UNIDO ITPO Italy has fostered its

competence for the investment promotion. Using UNIDO methodology, in

collaboration with the CP network, this Italian office has the technical capacity for the

identification and promotion of investment opportunities in developing countries both

in industry and/or infrastructure sectors. This ability will be available for the projects

participants willing to produce carbon units (CERs or ERUs). In particular:

• Scouting of CDM or JI projects ideas;

• Dissemination within the Italian business community of the potential and

opportunities of the KP flexibility mechanisms;

• Matchmaking between supply and demand of JI/CDM projects;

• Promotion, through UNIDOs network of offices, of JI/CDM investment

identified projects;

• Facilitation of the contacts between the relevant stakeholders (project

participants, local communities, local authorities, DNAs, DOEs, etc.);

• Preparation of a CERs/ERUs marketing strategy.

2. Technical assistance: UNIDO ITPO Italy offers its own competence for the

evaluation and appraisal of investment projects using the specific methodology and

tools developed by the Organization. This assistance is aimed at:

• Financial and economic evaluation of the investment proposals within JI/CDM

projects and pre-feasibility study of the project;

• Establishment of financing needs and availability;

• Preparation of the economic documents related to the Project Design Document

(PDD).

3. Technology determination: in collaboration with UNIDO ICS Trieste, evaluation of

the technical feasibility of the project. Identification and evaluation of the available

technical solutions for each single project.

4. Project modelling and monitoring: in collaboration with UNIDO ICS Trieste or other

available Technical Institutions, determination of the baselines, business as usual

scenarios (BAU), emission reductions and monitoring plans.

Expected results:

• Sensibilization of Italian business community: private companies, financial sector;

• JI/CDM project portfolio;

• A flexible structure able to help Participating Parties (PP) during the whole

process of implementation, presentation, implementation, monitoring and

certification of JI/CDM projects;

• Abatement of the transaction costs supported by private companies;

• New methodologies and/or Projects development and presentation.

EU Programme: GONETWORK

Foreword

SMEs do play a crucial role in the economic and social systems as well as in the sheer

employment creation.

One of the most relevant difficulties hampering the SMEs’ development in the north African

area is their weak bargaining power in credit negotiation, mostly due to the lack of security

(guarantees) required by the lenders and to be provided by the borrowers.

On the other hand, a crucial challenge for local Governments is to increase the capital flows

from the Banking system to the SMEs.

As well known, Credit Guarantee Schemes (CGS), meant to issue short and medium term

guarantees in favor of the lenders, have gained a relevant and widespread importance, as

affirmed by the EU Regulation in 1991 (SEC 91 1550).

More and more the Mediterranean area has been turning in an interlinked market, in which

industrial firms increasingly need to have a proper support, in particular whenever financial

issues are concerned, where UE country experience might give north African players a

useful contribution. In the light of this, the creation of a CGS network applying common and

wide accepted evaluation methods might be a concrete advantage to better meet the

development’s needs of the north African SMEs.

The Project

The project under definition is shaped according to the following pillars:

1. To implement Guarantee Schemes in the MEDOCC area, also strengthening linkages

and relations between EU countries and the others, in order to improve credit access.

2. To create a multi-country network encompassing EU and local CGS, local Government

administrations, Development Agencies, Industrial Associations etc, with the final aim

to properly define and settle business relations between industrial players and financial

institutions;

3. To implement a pilot programme for creating either a new CGS or to expand/support an

existing institution., by applying criteria and procedures also stemming from the

experiences European economies have had over the latest decades.

4. To develop, through the network, international cooperation between companies in the

MEDOCC area (joint venture, commercial agreement between CGSs’ associates),

Envisaged partners

• Three Italian Regional Governments (the “Regions”)

• A Greek Guarantee Company.

• A French Guarantee Company.

• A French Chamber of Commerce

• A Lebanese guarantee Company

• A Jordanian guarantee Company

• An Egyptian guarantee Company

In this framework, the alleged lead partner of GONETWORK entrusted the service company

of the Italian Industrial Credit Guarantee Association and the UNIDO ITPO with drawing the

proposal and acting as programme manager and technical advisor should the project be

approved by the entitled EU authority.

Expected outcomes

Definition of Standards and Procedures among the different involved countries, in

order to identify new mutual financial schemes meant to introduce the sharing among

CGS of different countries, with particular regard to export finance operations.

To contribute in improving business relations between SMEs systems and financial

institutions of each countries;

To Support a better financial structure of local SMEs, in order to strengthen their own

negotiation power with financial institutions.

To implement a Guarantee Pilot Programme, to be replied in different cases.

Annexes

Highlights of operations 1987-2004

Promotional activities 2003 2004 1987-2004

Total delegates programmes 1

(units)

Seminars and country presentations (Italy and abroad)

(units)

Technical fairs and workshops with delegation assisted

by the ITPO (Italy and abroad) 2

(units)

Study tours managed by the ITPO

(units)

6 2 75

18 22 435

10 12 61

3 2 20

Projects completion facility 2003 2004 1987-2004

Promoted investment opportunities

(units)

Total negotiations assisted by ITPO Italy

(units)

Total concluded projects

(units)

Total operational projects

(units)

223 223 19510

41 61 1155

34 24 420

26 27 151

1 In addition to the programmes listed the Office implemented short terms programmes. The total number of

delegate programmes implemented from 1987to 2004 is 75

2 Statistics starting from year 2000 in connection with the activity support offered to the Investment Promotion

Units in the Mediterranean Countries

Promotional activities

I) Delegates 1987 - 2004 3

Name Country From To Local counterpart

1 Mr Bruno Farrari Argentina March 1988 April 1991 Banco de la Ciudad

2 Mr Tran Dong Phong Vietnam April 1992 March 1994

3 Mr Oscar Freudental

Andean

Countries

4 Mr Benjamin Mwanga Tanzania January 1993 May 1993

5 Mr Song Xianfeng China January 1993

Mr Grzegorgz

Bychawski

Poland February 1994

7 Mr Petr Jaros Czech Republic February 1994

State Committee for

Cooperation and Investment

May 1992 August 1992 UNIDO Investment Program

December

1995

December

1995

December

1995

8 Mr Jacob John India January 1995 June 1996

Mr Raphael Casillas

Polanco

10 Yan Xinzhou China July 1995

Tanzanian Investment

Promotion Centre

Hebei Committee of Foreign

Economic Relations (COFERT)

IPS Warsaw

SP Confederation of Industry

Assocham (Indian Chamber of

Commerce)

Mexico June 1995 June 1999 National Financiera (NAFIN)

December

1997

11 Ms Naima Aqrou Morocco February 1996 March 1998

Foreign Investment Service

Centre, Shangai Municipality

Office pour le

Developpemement Industriel

(ODI)

12 Mr Bassam Khalil Palestine April 1996 March 1998 Ministry of Industry

13 Mr Prasanta Biswal India February 1997

Mr Christopher

Capistrano

November

2001

Federation of Indian Chambers

of Commerce and Industry

(FICCI)

The Philippines April 1997 October 1998 Board of Investment (BOI)

15 Mr Nuno Maposse Mozambique June 1997

16 Ms Alemtsehai Ghirmay Ethiopia

September

1997

17 Ms Lingyuan Jiang China February 1998

December

1998

Centre for promotion of

Investments

February 1998 Ethiopian Investment Authority

December

1999

China International Centre for

Economic and Technological

Exchange (CICETE)

3 in addition to the programmes listed the Office implemented short terms programmes. The total number of

delegate programmes implemented from 1987to 2004 is 75

18 Ms Liliana Rave Samra Colombia May 1998 July 1998

19 Mr Afif Barhoumi Lebanon October 1998

Mr Amr Gamal El-Din

Hossny

21 Mr Omar Al Saket Jordan

December

1998

Egypt October 1998 August 2000

November

1998

22 Ms Mary Mabweijano Uganda May 1999

23 Mr Essam M. Audeh Bahrain October 1999

November

2001

November

2001

November

1999

Centro Regional de Inversion,

Informacion y Tecnologia

(CRIIT)

Investment Development

Authority of Lebanon

General Authority for

Investment (GAFI)

Investment Promotion

Corporation (IPC)

Uganda Investment Authority

(UIA)

Ministry of Oil and Industry

Mr Essam M. Audeh Bahrain April 2000 April 2000 Ministry of Oil and Industry

24 Mr Joseph A. Al-Ohali Saudi Arabia

November

1999

November

1999

25 Mr Amr Ahmad Palestine March 2000 May 2001

26 Mr Babak Aghaei Iran October 2001

Mr Mohammad Mehdi

Dalvand

Iran October 2001

December

2001

December

2001

28 Mr Wang Shicai China October 2000 February 2002

29 Mr Dang Ba Tho Vietnam

September

2000

September

2002

30 Mr Wang Yu China March 2002 April 2002

31 Stephen Osei Yeboah Ghana November-02 November-02

32 Emiliano Cisneros Argentina March 2002

Mr Slaheddine

Chouikha

34 Ms Ruth Lwetabe Uganda

Tunisia October 2001

November

2001

December

2003

December

2003

August 2003

Saudi Consulting House

Palestinian Industrial Estate

and Free Zones Authority,

Ministry of Industry (PIEFZA)

Organisation for Investments

and Technical and Economic

Assistance in Iran (OIETAI)

Organisation for Investments

and Technical and Economic

Assistance in Iran (OIETAI)

China International Centre for

Economic and Technological

Exchange (CICETE)

International Cooperation

Department, Ministry of

Industry

All-China Investor Services

Centre (ACICS)

Ghana Investment Promotion

Centre

Fundacion Invertir

Foreign Investment

Promotion Agengy (FIPA)

Uganda Investment Authority

(UIA)

35 Mr Adel Ali Jordan March 2002 March 2003 Jordan Investment Board

36 Ms Enying Yao China

September

2002

Ongoing

37 Mr Dino Fortunato Argentina April 2003 Ongoing

Supported by various

Institutions

Argentinean Ministry of

Foreign Affairs

II) Seminars and country presentations (Italy and abroad)

Seminars and country presentations held

Date Title Venue

7 February 2003

19 February 2003

27 February 2003

20 March 2003

26th / 27 May 2003

28/29 July 2003

9 September 2003

12 September 2003

October 2003

10/11 Novembre 2003

27/28 November 2003

26 December 2003

15/16 December 2003

17 December 2003

December 2003

12 December 2003

September to December 2003

National Meeting for the Coordination of the

Partnership Initiative within the III World Water

Forum – Kyoto (Japan), 16-23 March 2003

“Investments opportunities in the North-West of

Tunisia”

UNIDO Argentinean SME’s Program

Les investissements direct étrangères et le

développement des PMEs

Strengthening Cooperation of Medicinal and

Aromatics Plants National Focal Points

One day reflection

Investment opportunities in Tunisia

Presentation of the Argentinean industrial sector

recovery program

PROGAN constortia presentation

Joint Venture In China

Il settore della componentistica auto in Tunisia

International Seminar on Local Development

Argentina UNIDO ITPO Italy Activities & Investment

promotion

Egyptian- Italian Investment Forum

BASILEA II - Banca di Roma

Presentation of ItalSystem for Environment (IS4E)

Investment opportunities in Tunisia

How To Face The Competition Of Chinese Products

Turin

Rome

Bologna

Tunis

Trieste

Amman

Pesaro

Bologna

Padua

Turin

Cordoba (Argentina)

Cairo

Venezia

Milan

Latina

Brescia

Date Title Venue

February 2004

17/20 March 2004

March 2004

1 April 2004

6-8 May 2004

May 2004

22/23 July 2004

9 September 2004

11 September 2004

9-12 September 2004

3/4 October 2004

10 October 2004

14 October 2004

October 2004

10 December 2004

14/15 December 2004

15/16 December 2004

12 December 2004

December 2004

La Sfida Dello Sviluppo Della Cina

Sep 2004: Environment Technologies in Egypt:

Investment Opportunities

UNIDO ITPO Italy Agricultural Mission in Argentina

Yuangzhou Projects Promotion

La Sfida Dello Sviluppo

MacFrut: Green Corridor and Investment

opportunities

Lo Sviluppo Tra Cina Ed Italia

Le opportunità offerte dalle Nazioni Unite e dalla

Politica di Prossimità della Unione Europea per il

partenariato territoriale di sviluppo nel Mediterraneo

Occidentale.

The biological oil production in Tunisia, between

growth perspectives and positioning dilemmas

(organised at Sana fair)

Argentina after 2002 crisis

Sana 2004: Medical and Aromatic Plants in

Argentina, Bosnia Herzegovina and Egypt

Fifth Conference on Euromediterranean Enterprise

Moroccan Investment Opportunities in the Agro

Business

Presentation of the desk of packaging UCIMA in

Egypt

Seminars on UNIDO services

2nd C.T.I. seminar

Transfer Technology in the Raw Materials Sector

Development

International Conference on Sustainable

Development

Flexible Mechanisms and private companies: the

Role of UNIDO ITPO Italy

Biodiesel development in Croatia

Tianjin delegation visiting Rome

UNIDO ITPO Italy Housing, and Building Mission in

Argentina

Rome

Padua

Buenos Aires,

Mendoza, Mar del

Plata (Argentina)

Milan

Cesena

Rome

Naples

Bologna

Caserta

Cremona

Bologna

Friuli Venezia Giulia

and Veneto

Vienna

Mar del Plata

(Argentina)

Matera

Buenos Aires

(Argentina)

Zagreb

Rome

Mar del Plata

(Argentina)

III) Technical fairs and exhibitions with delegations assisted by ITPO Italy

(Italy and abroad)

Descriptive statistics 2000-2004

Fairs and exhibitions, 2000- 2004

Italy Abroad Total fairs

52 6 58

Participating delegations

Country of origin

Jordan 20

Egypt 10

Morocco 7

Tunisia 17

Bosnia 1

Argentina 6

Uganda 8

India 4

Vietnam 5

Mexico 1

Palestine 1

Italy 6

Total 86

Number of

delegations

List of fairs and exhibitions, 2003

Date Title Venue Delegations

Febrary 2003

MIA: Mediterranean

Seafood Exhibition

Rimini

Tunisia

March 2003 FIERAGRICOLA Verona Uganda

March 2003 COSMOPROF Bologna Jordan

April 2003 SANA Rome Tunisia

May 2003 Lineapelle Bologna Uganda

September 2003 SANA 2003 Bologna Egypt-Tunisia-Uganda-Argentina

September 2003 SMAU Milan Jordan

September 2003 Moda In Milan Morocco

October 2003 Marmomacc Verona Argentina

October 2003 Eurodomus Padua Jordan- Egypt

List of fairs and exhibitions, 2004

Date Title Venue Delegations

March 2004 SEP 2004 Padua Jordan- Egypt

April 2004 HORTIFRUT 2004

Mar del Plata

(Argentina)

April 2004 Auto business event Qingdao (china) Italy

May 2004 MACFRUT Cesena Jordan

May 2004 Cibus Parma Morocco

May 2004 Samuplast Pordenone Tunisia

September 2004 SANA 2004 Bologna

Italy

Jordan-Egypt-Tunisia- Argentina-

Bosnia

September 2004 Ready to show Milano Morocco

October 2004 Siat Tunis Italy

October 2004 Marmomacc Verona Tunisia, Argentina

October 2004 Eurodomus Padua Jordan- Egypt- Morocco

October 2004 TECNARGILLA 2004 Rimini Argentina

IV) Study tours, training, and partnerships events organized by ITPO Italy

Study tours and training, 2003

Date Location Participating

delegation

Brief description

3-7 February 2003 Bologna

6 participants: The promotion of foreign investments in

ODNO officers (Tunisia) the agro food sector

17-21 February 2003 Bologna

6 participants:

ODNO officers

(Tunisia)

The promotion of foreign investments in

the agro food sector

The Italian innovative technology in the

24-28 February 2003 Rimini , Ancona ODNO officers (Tunisia) food processing sector: fish processing

and vegetables deep-freezing

Study tours and training, 2004

Date Location Participating

Delegation

Brief description

9-16 Septmber 2004 Bologna

8-18 December 2004 Bologna

9 participants:

Bosnia & Herzegovina

entrepreneurs

The Italian medicinal and aromatic

plants (MAPs) industry . How Bosnian

companies could improve their market

opportunities

10 participants.

Egyptian producers and The agro food sector in Emilia

exporters of fruits and Romagna Region: fresh fruits and

vegetables + university vegetables.

representatives

Partnerships events, 2003

Date Venue Title Participants

24-26 March

2003

21/22 May 2003 Tunisi (Tunisia)

1-4 June 2003

21/22 October

2003

Tabarka (Tunisia) “Tunisian-Italian

Partnership Days”

Trapani and

Sciacca

Gabes (Tunisia)

8/9 December Tunis (Tunisia)

15/16 december

2003

Cairo (Egypt)

“Unido-API Partnership

Days”

Partnerships Days

“Unido-API Partnership

Days”

“Automotive Partnership

Days”

Egyptian-Italian

Investment Forum

15 Italian companies + 5 representatives of

Italian Institutions; 30 Tunisian companies

Italian and Tunisian entrepreneurs

Italian and Egyptian institutions and

entrepreneurs

Partnerships events, 2004

Date Venue Title Participants

May 2004

Milan

Fujan delegation visit to

Milan

Italian and Chinese entrepreneurs

November 2004

Marrakech

(Morocco)

Med-Interprise

European and Moroccan companies

Projects completion facility

I) Descriptive statistics 1987 - 2004

Projects concluded classified by year

Year

Projects

(units)

1988 2

1989 14

1990 26

1991 18

1992 21

1993 25

1994 26

1995 18

1996 16

1997 18

1998 19

1999 22

2000 28

2001 30

2002 79

2003 34

2004 24

Total 420

Operational projects (1987-2004)

2003 2004 1987-2004

Operational projects

(units) 26 27 151

Total investment amount

(MUS$)

12,57 440,27

Operational projects classified by region (1987-2004)

Region

Projects

(units)

Asia 41

Africa and Middle East 87

Eastern Europe 14

Latin America 9

Total 151

Number of jobs created classified by year

Year

Projects

(units)

Total concluded

(MUS$)

Jobs created

(units)

1998 19 84,1 1201

1999 22 96,51 2143

2000 28 107,78 1551

2001 30 79,95 1067

2002 79 205,87 2821

2003 34 27,22 962

2004 24 11,68 865

Average project value

Concluded Operational

Total projects (units) 420 151

Total amount invested

(MUS$) 1736,16 440,27

Average project value

(MUS$) 4,13 2,91

Projects promoted across regions and time

Year

Asia

(units)

Africa and Middle

East

(units)

Eastern Europe

(units)

Latin America

(units)

Total

(units)

1988 356 53 0 73 482

1989 389 190 0 141 720

1990 550 437 377 437 1801

1991 171 199 385 166 921

1992 507 133 672 282 1594

1993 737 286 728 380 2131

1994 1257 365 914 412 2948

1995 507 288 282 66 1143

1996 459 428 473 172 1532

1997 1051 577 538 548 2714

1998 275 321 31 159 786

1999 826 249 28 68 1171

2000 136 69 0 28 233

2001 197 131 0 1 329

2002 197 342 0 20 559

2003 18 179 0 26 223

2004 18 170 0 35 223

TOTAL 7651 4417 4428 3014 19510

Projects under negotiation across regions and time

Year

Asia

(units)

Africa and Middle

East

(units)

Eastern Europe

(units)

Latin America

(units)

Total

(units)

1988 15 13 0 4 32

1989 73 23 0 19 115

1990 16 11 21 34 82

1991 20 5 21 34 80

1992 23 5 12 44 84

1993 35 4 19 38 96

1994 39 9 21 12 81

1995 31 8 7 3 49

1996 6 7 0 8 21

1997 11 10 0 16 37

1998 27 24 1 21 73

1999 16 34 6 13 69

2000 10 34 2 13 59

2001 14 64 1 4 83

2002 15 71 1 5 92

2003 7 32 0 2 41

2004 5 53 0 3 61

TOTAL 358 407 112 273 1155

Distribution of projects by status, 2003

Concluded

10%

Operation

Negotiatio

13%

Promotion

69%

Distribution of projects by status, 2004

Concluded

Negotiatio

18%

Operation

Promotion

67%

II) Investment opportunities promoted during 2003 - 2004

EGYPT MOROCCO JORDAN TUNISIA CHINA ARGENTINA UGANDA Total

Project under promotion,

2003 (units)

Project under promotion,

2004 (units)

20 25 82 16 18 26 36 223

26 54 33 13 18 35 44 223

Geographical Distrubution of Projects Under

Promotion in 2003

12%

16%

11%

EGYPT

MOROCCO

JORDAN

TUNISIA

37%

CHINA

ARGENTINA

UGANDA

Geographical Distribution of Projects Under

Promotion in 2004

20%

12%

EGYPT

MOROCCO

23%

JORDAN

TUNISIA

16%

15%

CHINA

ARGENTINA

UGANDA

III) Negotiations assisted by ITPO Italy

EGYPT MOROCCO JORDAN TUNISIA CHINA ARGENTINA UGANDA ETHIOPIA Total

Project under

negotiation, 2003

(units)

Project under

negotiation, 2004

(units)

5 12 5 2 7 2 7 1 41

10 20 4 12 5 3 7 0 61

Geographical Distribution of Projects Under

Negotiation in 2003

EGYPT

2% 12%

MOROCCO

17%

JORDAN

TUNISIA

CHINA

30% ARGENTINA

17%

UGANDA

12%

ETHIOPIA

Geographical Distribution of Projects Under

Negotiation in 2004

16%

5% 11% EGYPT

MOROCCO

JORDAN

TUNISIA

20%

33%

CHINA

ARGENTINA

UGANDA

IV) Concluded projects

Projects concluded as of 2003

COUNTRY PROJECT NUMBER TITLE

TOTAL

INVESTMENT

MUS$

JOBS

CREATED

ARGENTINA ARG/002/M/02-03 Chinchilla furs production n.a n.a

Certification and quality control of agroindustrial

products

ARG/008/M/02-05

2,50 5

EGYPT EGY/275/C/02-10 Glass 2,30 n.a.

JORDAN Jor/103/J/01-03 Olive oil mill 1,09 9

Jor/178/J/01-09 Production of drip irrigation 0,76 15

Jor/197/J/02-02 Metal containers manufacturing 1,50 15

Jor/249/J/03-06

Expansion of an ice-cream production

plant

0,98 20

Jor/250/J/03-08

Establishment of a new crackers

production plant

1,37 15

MOROCCO MOR/014/R/01-11 Agro-food 0,63 48

MOR/042/R/02-05 Textile 0,57 4

MOR/043/R/02-05 Textile 0,50 15

MOR/061/R/02-06 Construction material 0,18 15

MOR/071/R/02-06 Chemical 0,14 8

MOR/072/R/02-06 Chemical 0,20 7

MOR/082/R/03-01 Textile n.a. n.a.

MOR/098/R/03-01 Medical 1,30 21

MOR/099/R/03-01 Chemical 1,11 28

MOR/102/R/03-02 Textile 0,65 35

MOR/103/R/03-03 Construction material 2,00 201

MOR/104/R/03-02 Chemical 1,75 34

MOR/107/R/03-03 Chemical 0,36 18

MOR/108/R/03-02 Construction material 0,93 71

MOR/119/R/03-05 Construction material 0,84 14

MOR/124/R/02-07 Agro-food 0,13 13

MOR/131/R/03-11 Agro-food 0,40 60

TUNISIA TUN/067/T/02-12 Marble 0,20 18

TUN/206/T/02-03 Marble 1,40 22

TUN/208/T/03-03 Marble 1,80 49

Tun/223/T/03-04 Cosmetics production 0,18 7

Tun/220/T/03-04 Asphalt production 1,30 130

UGANDA UGA/003/M/99-06 Tannery and leather improvement 0,06 15

Crocodile skins for the European

UGA/062/K/02-03

0,03 20

market

UGA/083/K/02-07 Wood processing 0,03 25

UGA/102/K/03-04 Photograph processing 0,02 5

Projects concluded as of 2004

COUNTRY PROJECT NUMBER

TITLE

TOTAL

INVESTMENT

MUS$

JOBS

CREATED

ANGOLA ANG/001/I/04-11 Processed meat 9 60

CHINA CPR/044/M/03-09 Integrated welding project 2,15 30

CPR/057/M/03-11 Vitamin k3 6,8 57

CPR/056 /M/04-03 Leather clothes making 6 37

CPR/001/M/04-02 Machines for shoes 8 305

JORDAN jor/255/j/03-11 Production of hydroponics lettuce 3 14

jor/262/j/03-12 Soil amendment – slow release fertilizer 0,48 19

jor/269/j/04-04 Establishment of white cement factory 1,6 30

Jor/303/J/04-07 Black cumin oil production 0.28 6

MOROCCO MOR/097/R/03-01 Agro-food 0,42 43

MOR/100/R/03-02 Construction material 0,3 21

MOR/134/R/03-12 Chemical 0,7 8

MOR/135/R/04-01 Paper 0,2 3

MOR/170/R/04-04 Textile 0,3 10

MOR/171/R/04-05 Plastic 0,6 25

MOR/195/R/04-05 Textile 0,3 15

MOR/201/R/04-09 Agro-food 6,8 24

MOR/205/R/04-09 Automotive 0,34 8

MOR/211/R/04-09 NTI 0,17 4

MOR/212/R/04-12 Construction material 0,2 12

TUNISIA Tun/231/T/03-10 Marble masonry 0,2 12

Tun/236/B/03-12 Electric terminals manufacturing 0,25 77

Tun/239/B/04-03 Clothing manufacturing 0,3 15

Tun/271/T/04-11 Cork manufacturing 0,6 30

V) Operational projects

Projects in operation as of 2003

COUNTRY PROJECT NUMBER

TITLE

TOTAL INVESTMENT

MUS$

JORDAN Jor/047/J/99-10 Production of conical drum 4

Jor/060/J/00-12

Upgrading and diversification of cheese and

mozzarella production

0,15

Jor/067/J/01-01 Olive oil mill 1

Jor/086/J/01-02 Olive oil mill 0,2

Jor/098/J/01-03 Olive oil mill 0,3

Jor/102/J/01-02 Olive oil mill 0,022

Jor/140/J/01-05 Expansion of marble & granite production 0,437

Jor/145/J/01-04 Olive oil mill 0,32

Jor/166/J/01-06 Olive oil mill 0,2

Jor/169J/01-08

Production of marble & granite slabs and

construction stones

0,14

Jor/173/J/01-08 Marble & granite processing 0,4

Jor/195/J/01-12 Medicine production 0,143

Jor/201/J/02-02 Olive oil mill 2

Jor/206/J/02-03 Olive oil mill 0,4

Jor/211/J/02-02 Olive oil production 1,5

Jor/221/J/02-06 Establishment of olive oil mill 0,305

Jor/223/J/02-07 Olive oil mill 0,5

Jor/229/J/02-10 Olive oil mill 1

Jor/231/J/03-01

Expansion of Plastic Extrusion Plant of Plastic

Diary Containers

0,62

TUNISIA TUN/082/T/02-01 Plastic manufacturing 1,7

UGANDA

TUN/093/T/02-02 Plastic manufacturing 0,55

TUN/115/T/02-04 Electronic components 0,9

TUN/118/T/02-04 Clothing manufacturing 0,22

TUN/199/T/02-10 Glass manufacturing 50

TUN/156/B/02-07 Electric components 1

UGA/088/K/02-08

Exporters of certified organic fruits and

vegetables

0.50

Projects in operation as of 2004

COUNTRY PROJECT NUMBER

TITLE

TOTAL INVESTMENT

MUS$

JORDAN Jor/103/J/01-03 Olive oil mill 1,09

Jor/170/J/01-08 Production & cutting of marble 0,25

Jor/222/J/02-07 Production of flexible packaging 0,10

Jor/228/J/02-10 Expansion of dimension stone processing plant 1,02

Jor/247/J/03-06 Handloom 0,03

Jor/249/J/03-06 Expansion of an ice cream production plant 0,07

Jor/250/J/03-08 Establishment of a new crackers production unit 1,37

MOROCCO MOR/002/R/01-07 IMME 0,87

MOR/012/R/01-11 Medical 0,63

MOR/013/R/01-11 Textile 0,24

MOR/015/R/01-11 Chemical 0,83

MOR/016/R/01-11 Construction material 0,32

MOR/017/R/01-11 Chemical 0,75

MOR/019/R/01-12 Chemical 1,43

MOR/020/R/02-01 Agro-food 0,30

MOR/038/R/02-04 IMME 0,61

MOR/090/R/02-08 Chemical 0,61

TUNISIA TUN/236/B/03-12 Electric terminals manufacturing 0,25

TUN/231/T/03-10 Marble masonry 0,20

TUN/237/B/04-01 Stone extraction and masonry 0,20

TUN/223/T/03-04 Cosmetics production 0,25

TUN/220/T/03-04 Asphalt production 1,00

UGANDA UGA/003/M/99-06 Tannery and leather improvement 0,06

UGA/062/K/02-03 Crocodile skins for the European market 0,03

UGA/083/K/02-07 Wood processing 0,03

UGA/102/K/03-04 Photograph processing 0,02

Institutional support programmes carried out

during 2003 and 2004

COUNTRY TITLE BRIEF DESCRIPTION

EGYPT

ARGENTINA

BAHRAIN

BALKANS

EGYPT

ITALY-

EMERGING

COUNTRIES

TUNISIA

ARGENTINA,

CHILE

Med Countries

“Financial Incentive Scheme” in

favour of the local industrial

sector investing in environmental

sound projects

Argentina Guarantee Scheme.

Proposal for the establishment of

pilot programme to design a

mutual guarantee fund in

Argentina

Private Equity Bahrain

Cooperation with

UNIONCAMERE VENETO

EPF-EEAA environmental fund

Rating of cooperation projects

Agreement with Sviluppo Lazio,

and within the framework of

decentralized cooperation

activities

Agreement with Sportello Veneto,

within the framework of

decentralized cooperation

activities

Internationalisation of SMEs in

South America

Collaboration with ART in

Mediterranean countries

Technical assistance requested by the EEAA

(Egyptian Environmental Affairs Agency), to better

allocate EPF resources.

The leading idea was to provide the Argentinean

productive system with a pilot scheme of a mutual

guarantee mechanism (the Fund) in favour of local

SMEs needing short term financing (export, working

capital) and medium term loans (investments).

Implementation of contents and recommendations

relating to the establishment of a Private equity facility

by a Bahraini development bank for SMEs.

Identification of possible area on which the ITPO might

support UNIONCAMERE VENETO in emerging

countries where the entity is engaged

Technical Assistance to the EPF-EEAA, in order to

envisage alternative way to use public funds. Definition

of a framework agreement.

Drawing of the joint document “La valutazione ed il

rating integrato nei paesi emergenti. Una riflessione”

Negotiation of an agreement of collaboration in Tunisia

for joint promotion activities

Negotiation of an agreement of collaboration in Tunisia

for improving joint promotion activities

In collaboration with Regione Lombardia, the project

will aim at promoting business linkages between Italian

SMEs and Argentinean/Chilean SMEs.

Negotiation of an Agreement of collaboration for

implementing Joint activities and coordinating

programmes

Annual Report on Activities and Achievements 2003 â 2004 - Unido

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