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In 1993, the Danish
Government launched the Private Sector Development Programme
(PSD Programme) covering India, Ghana and Zimbabwe. The
aim of the PSD Programme is to develop the private sector
in the selected countries by promoting long term cooperation
between Danish companies and local partners. The PSD Programme
facilitates such cooperation by making grants available
at different stages of the initiation and implementation
of a specific, commercial venture. The number of countries
under the PSD Programme has been increased and in 2002 it
was decided that Kenya be included. A national programme
officer has been appointed to start the PSD programme in
Kenya in September 2002.
Overall requirements
for eligibility of a project
In order that a project can be eligible for support
from the PSD Programme, there must be a long-term business
cooperation between the Kenyan and Danish partners and mutually
binding commitments from each partner. The cooperation must
be based on commercial, viable terms, having the form of
a joint venture. In principle, projects in all business
sectors can be granted support. However, the objectives
of DANIDA, in terms of economic and social development form
the overall basis in determining the eligibility of a project
for support. Support is available for the planning phase
and/or implementation phase. Experience from the existing
programme has shown that in many instances, support during
the planning phase of a project leads to implementation
of the project and further support.
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Support
in the planning phase
Support is available for the following purposes:
Partner identification - personal meeting between Kenyan
and Danish partners.
Special studies - detailed studies covering specific relevant
areas, such as market, technical and environmental.
Feasibility studies - comprehensive studies covering market,
technical, environmental and economic htmlects of the planned
project.
Support in the
implementation phase
Support is available for the following purposes:
Training and technical assistance - specific training programmes
to upgrade the technical capabilities of the workforce.
Environment protection - steps and measures that will reduce
considerably any negative effect on the internal and external
environment.
Import of production equipment, setting up of project facilities
- import of crucial capital goods (Please note that this
is not yet in operation, but is planned to begin at a later
stage).
The scope and combination of support for the above-mentioned
components vary for each project.
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