Support given through Danida Business Partnerships is complementary to the partners own investment in the implementation of the partnership. Moreover, the completion of a preparation phase, does not automatically entitle partners to receive support for an implementation phase as this will depend on a separate and positive appraisal. Likewise, support for elements in one of the phases does not automatically entitle partners to receive support for other elements in either of the phases.
The objective of the preparation phase is to develop a business model for the partnership. It may consist of different activities and in various sequences depending on the needs of the applicants. It may be used to identify potential partners or to develop a shared business model. The phase may be used to develop an initially rather loose idea into a well-defined business model. It may also be used to clarify whether the idea and/or partnership is viable and thus substantiate a decision to continue to develop thepartnership. Moreover, it may be used to undertake a full-fledged market analysis or a more focused study, or a study of the contribution to the local community, assess the development impact, the needs for training and technical assistance, etc. Support from Danida in the preparation phase is a maximum of 75% of the expenses and limited to a maximum amount of support totaling DKK 750,000.
Concrete activities may include one or more of – but are not limited to – the following elements:
Danida Business Partnerships may support the identification of Danish or local partners. Companies and organizations interested in forming a partnership must describe objective of the partnership and specific requirements to potential partners. If the application for support is accepted, the Embassy can initiate a search for partners.
Potential partners can apply for support for introductory visits, either in the intended country of implementation or in Denmark. Upon request, the Danish Embassy can offer guidance in preparing such visits, which could include visits to several potential partners. The Embassy and the company must agree on the programme for the study visit and the partners to be visited before approval can be given. After the study visit has taken place, the company or organization must submit a study visit report, assessing the scope for establishing a partnership with the candidates visited.
In order for the partners to clarify the economic foundation for the partnership, the economic implications of the business model or to assess the need for raising additional capital, for instance from IFU, commercialbanks or other funding agencies, Danida Business Partnerships supports the holding of a pre-investment meeting. The pre-investment meeting will normally take place early in the preparation phase in connection with a study visit.
In order to clarify whether the business model is viable, it may be necessary to undertake a study. The study could define market conditions; identify market possibilities in comparison to the partner’s strengths, how best to align operations with the principles of the Global Compact and to promote responsible business practices to the benefit of the company and society. The study may be comprehensive or narrowly focused. It could assess the need for training, introduction of new technology, adjustment of equipment, climate friendly investments, green technology solutions or others in order for example for the partnership to exploit the market possibilities and reach the goal of the business model. The study must be elaborated according to the “Terms of Reference (ToR) for the study”.
The partners represent different cultural backgrounds, organizational behavior and norms related to business ethics. Especially in the case where a partnership includes a mix of private partners, public institutions and civil society organizations, it is vital to establish a shared understanding of the partnership and the business model. Danida Business Partnerships supports the arrangement of a “Get to know your partner” workshop which can take place either in the partner country or in Denmark. If the workshop is held in the partner country, the Embassy will be able to assist the partners in finding qualified local external consultants – if necessary – that can guide the process.
In order to complete the business model and ensure a solid foundation for the activities planned for the Implementation Phase, it may be necessary to test new basic working procedures, new technical equipment or new products. Danida Business Partnerships can support the testing and installation of equipment but does not support procurement of equipment apart from environmental equipment, nor costs related to the actual product development.
The objective of the implementation phase is to attain the results and targets as defined in the business model. Activities in the implementation phase are selected to obtain the targets. Support from Danida is a maximum of 50% of expenses with a maximum of DKK 5,000,000 in support, including support given in the preparation phase. This may be extended to DKK 10,000,000 for regional partnerships or on an exceptional basis for large partnerships.Concrete activities will vary depending on the needs to implement the business model and may include one or more of – but not be limited to – the following elements:
The transfer of technical skills and knowhow between partners is central in Danida Business Partnerships. Technical assistance may involve Danish staff in the day-to-day operation of the local partner.
Technical assistance may advise on various functions, incl. for instance working procedures or environmental and quality measures, improving management capacity, the development and application of administrative and management systems, etc.
Contrary to technical assistance which is carried out based on the day-to-day operations, training activities are based on a structured analysis of training needs which are not necessarily connected to existing operations. Training will usually be conducted in the Partner country. The training activities may, to a limited degree, include production of training materials and handbooks.
Danida Business Partnerships may support initial costs of setting up the partnership. The costs of establishment could be legal expenses, permits and fees in connection with establishing a joint venture or registering products, ensure intellectual property rights, etc.
BoP is a concept referring to the population at the lowest level of the income pyramid. Four billion people, a majority of the world’s population, constitute the BoP. Their aggregate purchasing power suggest significant opportunities for market-based approaches to better meet their needs, increase their productivity, incomes and opportunities for employment. Danida Business Partnerships supports initiatives that focus on the BoP.
Danida Business Partnerships supports innovative approaches, i.e. new solutions to business, economic, social, environmental or other challenges in partner countries. This could entail innovation in the form of new products and services, new methods to gain access to markets, new business models or new methods to secure dissemination of the activities and best practices.
Danida Business Partnerships supports environmental improvements and the introduction of “green technology”. The partnership must as a minimum comply with national standards and regulations but are encouraged to reflect Danish or international standards.
Danida Business Partnerships may support the purchasing of environment equipment including expenses related to freight and insurance to the maximum of DKK 500,000. The support for equipment covers only new equipment.
The activities eligible for support could include but are not limited to:
Administration of Danida Business Partnerships is based on reimbursement of expenditures for activities approved by the Embassy. No advanced payment is possible under the programme. All reimbursement claims must be exclusive of Danish VAT, as Danish VAT is never reimbursable under the programme. The exchange rate used for the exchange of foreign currency follow the rules in Danida Business contracts.
The reimbursement can never exceed the full amount committed in support in DKK.Expenses eligible for reimbursement will be specified in the final budget of the partnership’s business model approved for support.
All reimbursement claims must be made using Danida Business Partnerships standard reimbursement templates and be signed by the main partners. All purchasing of environmental equipment and services is to be done in a transparent and efficient manner.
Expenses eligible for reimbursement may include, but not necessarily be limited to, the following items:
Reimbursement of expenses in the preparation phase is made biannually or as the activity for which support is given has been finalized.
Reimbursements are done on the basis of the progress reports and the presentation of an audited reimbursement claim. At the end of the phase, a completion report shall be submitted to the Embassy describing the business model developed for the partnership.
Reimbursement of expenses in the implementation phase is made biannually on the basis of a progress report and an audited reimbursement claim.
All reimbursements are based on the approval of:
The request for reimbursement is to be submitted to the Embassy without delay.
Only expenses eligible for support under Danida Business Partnerships which have been approved as part of the business model’s budget are eligible for reimbursement. All claims for reimbursement must be based on audited accounts and be accompanied by a signed auditor’s statement issued without cause for comments.
Only implementation showing clear progress in relation to the milestones or bench-marks can continue to receive support, see also the General Conditions.
When the request for reimbursement is approved, payment vouchers are issued within 14 days after receipt of the reimbursement request. In case a request for reimbursement cannot be met, the main partners are notified within 14 days after receipt of the reimbursement claim.
External consultants may be used to a limited extent during preparation and implementation of Danida Business Partnerships. A consultant may work as either partner or as an external consultant to the partnership. When working as a partner, a consultant has to fulfil the eligibility criteria described under “complementary partners”. When working as a consultant the following rules apply:
The identification and contracting of consultants is the responsibility of partners. The Embassy must approve the CV of the selected consultant and ensure that s/he complies with the criteria for international and/or local consultants.
During preparation and implementation main partners might use consultancy services.
During the preparation phase the Embassy can reimburse a maximum of 30% of the total expenditures for consultancy services. Payment of consultancy services shall be a matter between the partner companies and the consultant. In cases of consultancy services for the preparation of an application, these services can be included in the budget and reimbursed, but only provided that the application is approved and that the services are within the above mentioned maximum.
It is partners, not consultants, who shall bear the overall responsibility for the preparation of the application and the implementation in accordance with the requirements of the programme. Neither the Embassy nor Danida will hold one-on-one negotiations with consultants concerning the partnership activities or the application. It is the task of the main partners, not the consultant, to submit application to the Embassy on behalf of partners.
Ministry of Foreign Affairs of DenmarkDanidaAsiatisk Plads 2 DK-1448 Copenhagen K Tel. +45 33 92 00 00Fax +45 32 54 05 33um@um.dk