Global Young Leaders Programme Briefing Notes


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Global Young Leaders Programme I am attending.
The Young Leaders Programme (YLP) is the first of its kind in Asia. The uniqueness of the course lies in the life-changing experience that participants from all over the world receive during their Asian field project as they work on creating investment opportunities for development issues. They will learn through the eyes of others and witness how decisions made in one part of the world have impacts on other parts. In particular, they will have the opportunity to use their experience and business acumen to develop a business plan to attract investors which will assist in the economic development of local communities.

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Global Young Leaders Programme Briefing Notes

  1. 1. Global Young Leaders Programme Executive Leadership Development Through Experiential Learning Using Markets for Forest Products to Protect Natural Resources Hong Kong and Cambodia (Phnom Penh) April 27 – May 8, 2009 - Briefing note for participants – Partner Organisations: Groupe Energies Renouvelables, Environnement et Solidarités in Cambodia (GERES) Eco Business Development Unit (EBDU)
  2. 2. Table of Contents 1. Introduction .......................................................................................................... -2- 2. Module 1 – Leadership Development I. Core Topics ................................................................................................... -4- II. Thought Leadership Topics............................................................................. -5- III. Timetable for Module One ............................................................................. -6- 3. Module 2 – Field Project (Experiential Learning) I. Country Background ...................................................................................... -9- II. GERES – Background………………………………………………………-12- III. Current approach………………. … ...............................................................-13- IV. Moving forward – an integrated approach .....................................................-15- V. Expansion Plans ...........................................................................................-17- VI. Expected Benefits….. .....................................................................................-19- VII. Key Challenges .............................................................................................-20- VIII. Financing………………….............................................................................-21- 4. The YLP Business Planning Framework I. Module Two Main Tasks ................................................................................-22- II. Business Planning Framework .....................................................................-23- III. Appendix – additional reading materials……………………………… …...-25- IV. Itinerary for Module Two ..............................................................................-27- 5. Frequently Asked Questions ................................................................................-29- Annex A: Introducing the 2009 Cambodia YLP Participants……………………...-33- Annex B. The GIFT Team……………………………………………...………….-41- -1-
  3. 3. 1. Introduction: Welcome to the Global Young Leaders Programme. The Young Leaders Programme (YLP) is the first of its kind in Asia. The uniqueness of the course lies in the life-changing experience that participants from all over the world receive during their Asian field project as they work on creating investment opportunities for development issues. They will learn through the eyes of others and witness how decisions made in one part of the world have impacts on other parts. In particular, they will have the opportunity to use their experience and business acumen to develop a business plan to attract investors which will assist in the economic development of local communities. The YLP aims to bring together, in a series of practical and hands-on learning experiences: • Cross-sectoral learning – to assemble young leaders from business, government and the non-governmental organisation (NGO) sector; • Experiential learning – to combine learning and development with practical application; • Measurable sustainable benefits – to create benefits at three levels: the individual participant; the organisation they work for; and the community groups that participants work with; • Learning from divergent business practices and governance expectations – to foster learning at all levels by working on live issues with a diverse team of participants; and • Making a difference – to develop long-lasting relationships with communities through supporting sustainable businesses and building capacity. Our hand-picked projects are directly linked to globalisation issues and have a real bearing on business and public sector policies. Through this experience, young leaders of the future will be much better equipped to understand their future markets and customers as well as the complexities of doing business in Asia. Participants will gain: an understanding of Asian globalisation challenges across sectors; valuable cross-cultural leadership skills; real experience via group dynamics on how to use leadership skills to succeed in different situations; an opportunity to deliver real benefit to local communities through their direct interaction and development of business plans; mentoring during training from GIFT-dedicated mentors; and membership of the GIFT alumni with access to business, community and government leaders across Asia and elsewhere. Companies will gain: a tailored programme that can be used to groom managers for the future; cross-functional development; an understanding of the nature of business decisions and their impact in an Asian community; a better appreciation of the complex world we live in; and closure of the gap in leadership development treatment that goes beyond classrooms. The YLP model comprises three parts: Module 1 comprises an academic classroom and leadership development -2-
  4. 4. component to familiarise participants with topics of globalisation, civil society, role of government, business ethics, diversity and corporate social responsibility. This will be conducted in Hong Kong over an intense one-week period. Module 2 provides an on-site experiential learning where participants will spend up to one week in rural communities outside of Phnom Penh, Cambodia working in partnership with a social enterprise and the community to prepare a sustainable business plan to harness the available commercial opportunities to alleviate poverty and at the same time respect ecological and cultural sensitivities. Module 3, the post-site activities, concerns the business plan prepared by the participants that is assessed by GIFT facilitators and, subsequently implemented by the communities involved, initially with seed investment capital and later as self- sustaining businesses. The benefits of this will be the continued relationship between the communities and businesses, as well as connecting with the NGO sector. This provides a highly practical opportunity for investment options applied to a very meaningful cause. Leadership Development Module 1 YLP Investment Experiential Options Learning Module 2 Module 3 Overview: Module Description Location Timing 1. Leadership Academic classroom Hong Kong 27 April to 1 May Development learning of leadership skills 2. Experiential On-site field work with Phnom Penh 2 to 8 May Learning GERES to produce business plan 3. Investment Assessment of business plan Hong Kong and To be led by GIFT Options followed by seeking of later Phnom after participants investors and subsequent Penh return to their execution of plan respective countries -3-
  5. 5. 2. Module 1 – Leadership Development I. Core Topics Impacts of Globalisation This session looks at how western influences have changed fundamental aspects of development and Asian lifestyles. We examine the extent to which changes brought by western economic development models and ideas have been for the better, or for the worse. Asia’s position in international trade is considered – what have been the benefits and is there credence to the argument that Asia is being exploited? People skills Talent development for the challenge of business leadership is essential for sustainable business growth and success. How can we, as leaders, develop an ability to demonstrate flexibility in choice of behaviour in different types of leadership and team situations? How do we coach others to be aware of their personal strengths and limitations, and to recognise their personal responsibilities and level of influence on developing and translating strategy into action? We explore the use of multiple intelligences and the application of social awareness (empathy, attunement, empathic accuracy and social cognition). We examine how to present ourselves effectively to shape the outcome of social interactions. Managing Diversity Issues of workforce diversity are prevalent with the influx of new businesses to Asia. How are Asian companies coping with these new demands as they expand globally? We look at the emerging legal and moral obligations for employers. Business Ethics How is business in Asia responding to the challenges introduced by western corporate ethics? The relationships between business and government, the legal and judicial institutions in Asia and the influence on business practice are examined. We look at the use of institutional governance tools to manage corruption and other ethical issues. Is legislation the only answer or are there alternatives for Asia? Corporate Social Responsibility We define corporate social responsibility (CSR) and its drivers. We ask whom corporate decisions affect and why corporations should care. We look at sensitivity to concerns, reporting methods, accountability and transparency, and whether stakeholder engagement is truly effective in Asia. We also explore how to build capacity in institutions. We further examine the environmental responsibilities of companies. Civil Society in Asia We look at the origins of civil society and its development in the West and how it contrasts with Asia. We look at how specific issues helped bring civil society to the forefront of activist campaigning and how this introduced to people in the West a new perspective on business and government activities. The historical context to civil society development (or lack of) in Asia and its future role will also be examined. -4-
  6. 6. The Role of Government We look at three principal areas of responsibility: domestic issues, foreign relations, and business. We look at the different styles of government in different economies and analyse their effectiveness. Can business work with government? The public- private partnership model has been widely applied in the West. What is its applicability in Asia? Who has tried it and with what success? We further look at the concept of the tripartite arrangement between business, government and civil society. II. Thought Leadership Topics Markets for Rural Products Remoteness and poor infrastructure limit the market potential for rural products and hence economic development in many developing countries. The use of marketing tools and techniques has to be adapted for such products to help gain entry into domestic and export markets. Participants will learn about the use of technology and leveraging of existing supply chains to gain access to information and customers. Forests and carbon credits The speed of economic growth in the past century has created prosperity and socio-economic benefits for many in developing countries – but at a price. The rate of climate change has accelerated dramatically over the last decade prompting many to seek and protect ‘carbon sinks’ like forests and other natural resources. Participants will discuss how businesses, government, civil society and individuals can work to address the challenges of climate change through conservation strategies as well as how trading of carbon credits may provide a financial incentive for developing countries to adopt. -5-
  7. 7. Timetable for Module One Date Time Session Overseas participants arrive in Hong Kong and check in at hotel 26 April All day (Sunday) 27 April 9:00-10:30am Introduction to the YLP and ice-breaking– GIFT (Monday) 10:30-11:00am Tea Break 11:00-12:30pm An overview of the YLP – GIFT 12:30pm Lunch 2:00-3:30pm Leadership Awareness: Impacts of Globalisation – GIFT 4:00-4:30pm Tea Break 4:30-5:30pm Leadership Awareness: Leadership – Guest speaker: Marius Van Huijstee (Chief Executive, SONEPAR Asia) 28 April 9:00-10:30am Leadership Skills: Leadership and People –GIFT (Tuesday) 10:30-11:00am Tea Break 11:00-12:30pm Leadership Skills: Managing Diversity – Guest Speaker: TBC 12:30pm Lunch 2:00-3:30pm Leadership Skills: Business Ethics for Leaders – GIFT 3:30-4:00pm Tea Break 4:00-5:00pm Business Ethics for Leaders – Guest Speaker: Mr. Louis Bowen (Chairman, Asia Capital Management Ltd. & China Advisors Ltd.) 29 April 9:00-10:30am Leadership Knowledge: Corporate Social Responsibility – GIFT (Wednesday) 10:30-11:00am Tea Break 11:00-12:30pm Leadership Knowledge: Corporate Social Responsibility – Guest speaker: Ms. Sonya Durkin-Jones (North Asia Director for Corporate Responsibility Compliance, Nike) 12:30pm Lunch 2:00-3:30pm Leadership Knowledge: Role of Government - GIFT 3:30-4:00pm Tea Break 4:00-5:30pm Role of Media – Guest Speaker: Prof. Ying Chan (Professor and Founding Director of Journalism and Media Studies Centre, The University of Hong Kong) -6-
  8. 8. 30 April 9:00-11:00am Civil Society in Asia – GIFT (Thursday) 11:00-11:30am Tea Break 11:30-12:30pm Special Topics: Rural products marketing – Guest Speaker: Mr. Ruben Mahendran (Project Manager, GERES) 12:30pm Lunch 2:00-3:30pm Special Topics: Climate Change (Forestry management and carbon trading) – Dr. William Yu (Head of Climate Programme, WWF Hong Kong) 3:30-4:00pm Tea Break 4:00-5:00pm Investor’s perspective – Guest Speaker: Ms. Annie Chen (Director, Sterling Private Management Ltd.) Alumni Drinks Event 5:30pm 1 May 9:00-10:00am Cambodia Project Briefing – Guest Speaker: Mr. Ruben Mahendran (Project Manager, GERES) (Friday) 10:00-11:00am Business Plan Briefing and Group Work – GIFT and Guest Speaker: Mr. Ruben Mahendran (Project Manager, GERES) 11:00-11:30am Tea Break 11:30-1:00pm Q&A on GIFT and YLP/Module One Reflection - GIFT 1:00-2:00pm Lunch 2:00-4:00pm Define roles and responsibilities - GIFT 2 May 7:00am Check-in at airport (Saturday) 8:55am Depart for Phnom Penh, Cambodia (Dragon Air flight KA206 0855-1030) -7-
  9. 9. Module One Venue Hong Kong Football Club Venue: Happy Valley Room and Meeting Room Address: 3 Sports Road, Happy Valley, Hong Kong Tel: (852) 2830 9500 Fax: (852) 2882 5040 Website: Accommodation for overseas participants: Cosmopolitan Hotel 387-397 Queens’ Road East Wan Chai, Hong Kong Tel: (852) 3552 1111 Fax: (852) 3552 1122 Website: *Transportation to venue: The Module 1 venue (Football Cub) is within a 10 minute walk or 5 minute taxi ride from the hotel. On April 27, a GIFT representative will escort you from the hotel to Module One venue. Participants should gather in the hotel lobby at 8:30am. -8-
  10. 10. 3. Module 2 – Field Project (Experiential Learning) Participants will spend six days on site, working with GIFT’s partner in Cambodia, the Groupe Energies Renouvelables, Environnement et Solidarités (GERES) and its affiliated Eco Business Development Unit (EBDU) to develop a business plan to set up a for-profit enterprise to market and trade products to support rural village economies around Phnom Penh and thereby create prosperity. In doing so, improved livelihoods will reduce the dependency of villagers on collecting forest fuel wood and therefore protect valuable forest resources in the vicinity. Participants will focus on key supply chain issues and determine market demand for the enterprise’s products as well as looking at business opportunities involving carbon credits for forest conservation. I. Country Background Cambodia is located in the Greater Mekong Sub-Region, bordering Thailand, Vietnam and Laos (see inset map). It has a population of 14 million, mostly of Khmer origin. Of the total population, 36.1 percent live below the national poverty line and gross domestic product per capita in 2006 was USD350 per annum. The country occupies a total land mass of 181,035 square kilometres administratively divided into 24 provinces or cities. Much of Cambodia’s land is at sea level and is dominated by the Mekong River and the Tonlé Sap which are densely populated areas whose inhabitants depend largely on wet rice cultivation for subsistence. The rainy season in Cambodia runs from May to October. Development of Cambodia's main industries - garments and tourism - has led to strong GDP growth in the past five years. In 2006, foreign visitors surpassed the 1.7 million mark. In 2005, oil and natural gas deposits were found beneath Cambodia's territorial water and, once commercial extraction begins in 2009 or early 2010, the oil revenues could profoundly affect Cambodia's economy. Around 75 percent of the Cambodian population depends on agriculture, especially rice farming as stated earlier, which takes up 90 percent of cultivated land in the country. There are approximately 2.5 million farming households in the country. The country is experiencing a population growth of around 1.81 percent per year and the demographic structure of the country is characterised by a high percentage of young people – those under 25 years of age make up 60 percent of the total population, whilst 22 percent of the population is aged 15 to 24. -9-
  11. 11. Challenges and Opportunities Cambodia’s loss of forest resources In recent years population growth and economic development has accelerated the rate of deforestation in Cambodia. Felling for purposes of collecting firewood for domestic cooking, agriculture and land clearing for palm oil and other crops have been the principal causes. In addition, due to weak enforcement of forest laws in conjunction with corrupt activities, illegal commercial logging has contributed to deforestation. Currently almost 40 percent of Cambodia’s forested areas have been lost due to these factors. Each year, Cambodia loses roughly 140,000 hectares of forest (or an annual deforestation rate of 1 percent). The Food and Agriculture Organization (FAO) estimates that 85 percent of domestic energy use is from wood, charcoal and other biomass sources mainly from forests. The prices of wood and wood coal in the last few years have increased markedly due to the loss of forest resources leading to a rapidly expanding market for illegal and often lower-priced wood charcoal particularly in the capital, Phnom Penh, where an estimated 90,000 tonnes of wood charcoal are sold annually. Recognizing that sustainable forestry management is a long-term endeavour, the Cambodian government is undertaking action to transfer land rights to rural communities as well creating sustainable income generation schemes. Generating income – creating access to rural products The long term key to sustainable forestry management lies in alleviating rural poverty by increasing on-farm incomes which will reduce incentives for illegal logging, provide access to more sustainable forms of energy and ultimately, stimulate development of the rural economy. Currently, Cambodia is among one of the poorest countries in Southeast Asia. Over 36 percent of the country’s population - a majority concentrated in rural areas - subsists below the national poverty line of USD0.45 per day per person. Despite increased incomes and job opportunities from the growing tourism and garment industries, three-quarters of the population continue to derive their primary income from farming. In recent years, the assistance of government and aid agencies in increasing the agricultural productivity of Cambodian farmers has enabled the growth of rural enterprises who are seeking access to global markets for quality agricultural products. However challenges of corruption, poor infrastructure and low-skilled labor are common obstacles to the development of enterprises. Applying appropriate technology The adaptation of modern technology for use in rural settings, popularly termed as “appropriate technologies”, may also provide a partial solution in addressing Cambodia’s energy needs whilst reducing pressure on existing forests. With the expansion of entrepreneurialism in developing countries such as Cambodia, some forward-thinking entrepreneurs are creating business opportunities by providing specific products and services to a large and commonly overlooked segment of the markets – the rural population. - 10 -
  12. 12. Traditionally, businesses have tailored their goods and services to urban consumers or households in industrialised countries while largely ignoring the needs of 80 percent which make up the total of the world’s poor population who live on less than USD10 per day. To fill the gap, increasingly NGOs and businesses alike are providing simple appropriate technologies ranging from basic water filter systems and water pumps to USD100 computers which take into account the local and socio-economical aspects of the community they are intended for. Currently, in Cambodia, there is a strong presence of NGOs and development agencies working to deliver alternative energy through simple household solar lamps, rechargeable batteries and energy-efficient cooking stoves in order to meet the basic needs of Cambodia’s inhabitants who live in rural communities. Thus, access to affordable appropriate technologies may play an important role in raising the income and living standards in rural communities. Opportunities in the carbon credits market As a result of the impacts of global warming, combating climate change is a growing priority for many governments around the world. In particular, the inter-governmenntal Kyoto Protocol has been a driving force in pushing companies, particularly those in energy-intensive industries, to meet the carbon dioxide and other greenhouse emission gas reduction requirements. Thus carbon trading, the market mechanism for bringing together buyers and sellers of carbon credits, has become a rapidly expanding industry with an estimated value of USD64 billion in 2007. For natural resource-rich countries such as Cambodia, carbon trading may be a means of generating income in addition to providing incentives to discourage illegal logging. Large-scale forestry projects may have the potential to generate revenue from carbon credits given the trees’ tremendous ability to absorb and store carbon. For example, elsewhere in Indonesia, the Ulu Masen Aceh Forestry project which is being financed by Merrill Lynch, has combined reforestation strategies and other sustainable forestry practices to generate carbon credits. In Cambodia, the government and NGOs are still exploring this untapped potential. GERES is one of the first NGO entities in Cambodia to have generated carbon credits from its energy-efficient stoves. Carbon trading is in its initial stages and faces challenges such as finding the right verification and enforcement structures. In addition, the consensus on carbon offset calculation which requires cooperation from national governments as well as the main trading body, the EU Emission Trading Scheme, is lacking to be able to create an organized structure. To address these concerns, several NGOs across Asia including GERES have formed the first-ever carbon cooperative, the Carbon Solidarity Asia (CSA), to strengthen their knowledge and to bring existing projects to the market. - 11 -
  13. 13. II. GERES - Background Background The Groupe Energies Renouvelables, Environnement et Solidarités in Cambodia (GERES), is an established international NGO, which has been working with communities across Cambodia to promote the preservation of the environment and the livelihoods of Cambodian people. Since 1994, GERES has been developing rural technologies such as energy efficient cooking stoves and oven chambers (or “kilns”) as well as alternative biomass fuels such as char briquettes made from organic waste, in order to reduce consumption of fuel wood in Cambodia. The energy efficiency of the stoves and the kilns has led to increased productivity and hence, increased income for rural users – many of whom are wood vinegar and palm sugar producers, some of the lowest income earners in the country. More recently, GERES has been expanding its activities to assist in creating market access for rural products for the communities as well as generating carbon credits from its cooking stove projects. GERES is also conducting research to ascertain the feasibility of developing various affordable solar powered solutions for small households. GERES has received recognition for its technologies, including the Ashden Award (2006), for development of its affordable energy-efficient charcoal stove, the ‘New Lao’ stove, which uses 22 percent less charcoal than traditional stoves. GERES also runs research, training and consulting activities in collaboration with a wide ranging group of government ministries, aid agencies, NGOs, research institutes and foundations including the Cambodian government, the World Bank, the United Nations, ACE ASEAN Centre for Energy amongst others. Organizational model Based in Phnom Penh, GERES has over 50 staff working in its different units which are responsible for research and development of rural technologies, implementation and monitoring as well as marketing and business development for rural products and carbon credit trading. Country Director Deputy Newly-formed Director enterprise EBDU (Eco-Biz Forestry Policy and Climate Research & Monitoring Unit Ltd) Unit Study Unit Change Unit Development GERES Organizational Chart - 12 -
  14. 14. Currently, GERES receives most of its funding from donors such as the Asian Development Bank (ADB), United Nations Development Programme (UNDP), UK Department for International Development (DFID) and the French Embassy in Cambodia. However, to reduce reliance on external funding and to generate revenue to expand its initiatives, GERES is increasingly keen to capture opportunities such as the carbon credits markets. Recently, pilot initiatives involving production of high quality palm sugar and wood vinegar from users of GERES’s energy-efficient stoves and kilns has resulted in GERES creating a separate private entity, the Eco-Business Development Unit (EBDU), which will take a commercial approach in distributing and creating market access for these rural products. Newly established in May 2009, EBDU will retain a sister relationship with GERES. EBDU will be registered as a private limited company called Eco-Biz (Cambodia) PTE Ltd. It is anticipated that senior GERES management (including its country director and deputy director) will be among the board of Directors. EBDU will directly source its products from GERES who will continue to focus its efforts on working with communities. Thus, EBDU will essentially act as the middleman between GERES, the communities and potential buyers. To ensure that benefits trickle back to the communities, part of the earnings from EBDU will be channelled back to the village producers, through paying higher than market prices for quality rural products, providing technical training and the setting up of cooperatives and associations. III. Current approach Working in conjunction with the newly established EBDU, GERES’s approach relies on the participation of communities in order to encourage ownership and ultimately, to build the capacity of rural villages to practice sustainable forest management and to promote livelihoods. Leveraging its technical expertise in development of rural appropriate technologies, GERES energy-efficient stoves and kilns can be used to reduce the amount of fuel wood or charcoal consumed and to produce a source of sustainable income through carbon credits derived from the stoves. In particular, GERES has developed energy-efficient and user-friendly Vattanak stoves made from pre-fabricated ceramic elements for rural palm sugar producers. This has significant potential benefits for palm sugar producers (who earn less than USD0.50 a day) and whose livelihoods are being threatened by wood scarcity and rising energy prices. There are an estimated 20,000 palm sugar producers in Cambodia today. Although the process of producing palm sugar is relatively simple requiring the collection of juice from palm trees, a large amount of wood is needed to heat the sugar in stoves to produce the end product. GERES is hoping that increasing the number of stove users would reduce pressures on forests as each Vattanak stove not only uses 30 to 50 percent less fuel wood compared with traditional stoves (saving 4 tons of wood and 6.6 tons of carbon dioxide per year) but it also reduces the health hazard from inhaling smoke. - 13 -
  15. 15. Demand for Vattanak stoves is limited as palm sugar production is primarily confined to the certain provinces in Cambodia. Therefore, GERES is seizing opportunities for additional revenue from carbon credits as a result of reduced consumption of fuel wood from the use of Vattanak stove users. A Vattanak stove In addition, both GERES and EBDU anticipate the improvement of palm sugar quality from usage of the stoves will substantially enhance livelihoods as well as encourage palm producers to migrate away from use of traditional stoves. Additional income could be generated within households given palm sugar production is one of the few activities that can generate cash income and which does not interfere with the rice growing season - a primary source of income for many rural Cambodians. Currently, the Vattank stoves are still in the pilot phase with further design and testing being done. To date, GERES has produced and sold a total of 35 of these stoves to local palm sugar producer groups. GERES is now training local entrepreneurs to sell as well as to maintain the stoves. GERES is responsible for collection of the palm sugar which will then be bought by EBDU and sold to external markets. As affordability is a major barrier (each stove is US$70) to uptake of the Vattanak stoves, EBDU is willing to pay higher than market prices for quality palm sugar compared with the prices offered by most middlemen. However, in return for higher prices, the palm sugar producers will have to cook the sugar longer till it becomes granulate. GERES and EBDU are also currently testing the potential of wood vinegar as a soil enhancer and natural pesticide. A by-product of the smoke released from GERES’s improved kilns, wood vinegar is a potential source of additional income for kiln users. Similarly, EBDU will have GERES collect the wood vinegar so that it can bring - 14 -
  16. 16. the product to the market. At the moment, GERES has already collected 17 tons of wood vinegar which EBDU is now seeking potential costumers for. IV. Moving forward – an integrated approach In many of the rural villages which GERES works in, poor households and entrepreneurs alike are practicing illegal logging to produce cheap charcoal that could also be sold for a profit in the cities. Both GERES and EBDU recognize that income alone from rural products will not be enough to reduce the incentive for illegal logging; therefore, a comprehensive and integrated commercial approach which promotes rural prosperity while delivering sustainable energy to communities and small businesses is needed. Thus, GERES and EBDU are proposing the creation of a forest community which will enable local rural communities to have legal rights to natural resources to access sustainable energy while creating income opportunities. A key component of the initiative will involve the distribution of Vattanak stoves and kilns to assist rural villagers in generating additional income from palm sugar and wood vinegar. Leveraging its technical expertise and experience from different forest planting initiatives, GERES will also draw on the knowledge of several organizations across Cambodia who have created similar forest communities covering some 50,000 hectares. A local forest in Cambodia GERES has identified a potential site in the Chumriey Hill and Wildlife Sanctuary of Phnom Aural area which is the closest forest from Phnom Penh (approximately 50 km away). Home to 12,000 households, the area covers some 1,500 km2 and is an active area of charcoal producers in addition to palm sugar producers. GERES’s primary role will be to act as a facilitator in setting up the project. To encourage local ownership, GERES will initially focus on training rural communities in the project area on sustainable forestry practices to manage and maintain the forest community. Currently, trees are being cut at a speed faster than the re-growth rate. Thus by enabling these communities to have access to sustainable energy, the forest community will substantially reduce incentives for illegal logging for - 15 -
  17. 17. household purposes. To tackle the greater challenge of illegal logging for commercial purposes and to generate income opportunities for the forest community, GERES aims to develop the capacity of communities to become wood suppliers to local charcoal producers who will then convert the wood biomass into charcoal. Currently the natural forest in the project area is classed as degraded deciduous which can be sustainably harvested for fuel wood using the coppice method of only cutting the coppice branches while keeping the tree alive. GERES is also exploring the possibility of harvesting fast- growing species to keep up with the demand for fuel wood and other needs such as wood for housing and construction purposes. In order to buy wood from the forest community, charcoal producers will need to belong to formal charcoal producer groups. GERES plans to work closely with the government to receive approval and certification as renewable charcoal producers. As an incentive to join, GERES will work with EBDU in distributing improved kilns and the Vattanak stoves in order to assist charcoal producers in generating additional income from wood vinegar and palm sugar to reduce incentives for illegal logging. To promote rural entrepreneurship, GERES will also train local entrepreneurs to build and distribute the stoves to diversify rural economics and to ensure the sustainability of the project. Forest Community Model Forest Community Wood vinegar Access to Sell wood Wood vinegar production renewable production energy Additional Households Charcoal income (Personal Producers consumption) (Commercial) Additional Income Palm sugar Sell renewable production charcoal Different industries (restaurants, hotels, city households, construction etc. GERES will work with the local community and government to establish the forest community and the legal process of resource rights. The involvement of local - 16 -
  18. 18. authorities such as the energy department, forestry administration and commune council is critical as they will be involved in monitoring and upholding governance of the entire system (wood suppliers, charcoal process, tax payments etc) as well as training police officers to recognize deliberate mislabelling of charcoal from non- renewable charcoal to avoid informal tax collection. GERES may also explore carbon credit opportunities derived from the forest. Although wood production and carbon appropriation may appear contradictory, in fact, they can enhance sustainability. For example, harvested forest plantations using commercial extraction or thinning done in rotation (only portions of forest are harvested and cut trees are immediately replanted) can yield higher carbon capture than natural forests which eventually reach a point of carbon balance where plant growth and death reach equilibrium. In the long run, GERES and EBDU aim to create a thriving forest community and enterprise which will serve as a model for replication throughout Cambodia and in other countries. In particular, GERES hopes to highlight the successes to the central government to address wood energy opportunities and sectoral reforms. V. Expansion plans To promote sustainable forestry practices, access to renewable energy and income generation opportunities, GERES and EBDU’s short-term focus will be to significantly scale up its numbers of Vattanak stoves and kilns in order to ensure a consistent supply of palm sugar and wood vinegar as well to generate revenue from carbon credits. In particular, EBDU is looking at prospective retailers and markets interested in ‘fairly traded’ products (e.g. products without official organic or fair trade certification). It is also hoping to bypass traditional wholesalers and to target retailers for its wood vinegar and palm sugar products who will market the Eco-Biz brand. A. Palm sugar Thus far, 5 tons of palm sugar have been collected from the 35 Vattanak stoves sold. At present, EBDU has received interest from a domestic wholesale buyer seeking to buy 18 tons of granulated palm sugar. There are currently five established granulate palm producers in the country; of which, only one is marketing their sugar overseas. There are also a number of small exporters who sell their sugar in bulk to international buyers who either sell it to industrial users or who repackage and sell to retailers. In the face of stiff competition for palm sugar in Cambodia, EBDU is setting its sights on the overseas markets in restaurants, hotels and cafes in Australia and Europe where consumers are more health and environmentally conscious. Although there are existing international competitors in countries such as India, Sri Lanka and South Africa, EBDU is hoping to distinguish itself by selling the fact that its sugar qualifies as organic and fairly traded. In the future, EBDU has plans to apply for organic and fair trade certification. B. Wood vinegar EBDU is now testing and marketing its wood vinegar as a soil enhancer and natural pesticide. Under the brand, ‘Cheveth Baiton’ (Green Life), to emphasise the environmentally friendliness of the wood vinegar , EBDU is looking to initially - 17 -
  19. 19. establish a local market, specifically targeting groups of farmers who prefer to grow organic vegetables. However, pricing of wood vinegar for the producers will be a key challenge as each kiln costs USD7000. To overcome this problem, GERES envisions that each kiln will be owned and shared by a community. Currently, GERES is also exploring the possibility of building the kilns in pairs to decrease costs. Through its e-marketing efforts, EBDU has garnered interest from several international buyers in Korea, Malaysia and India who are in the organic fertilizer and oil plantation industry. There is one buyer in Malaysia who has in principle agreed to hold stock and promote wood vinegar in Malaysia after testing a small order of 500 litres of wood vinegar. Upon successful testing and establishment of a local market, EBDU plans to apply for green label certification. Samples of wood vinegar However, costly and lengthy export policies in the country have hindered EBDU’s efforts to export wood vinegar overseas as a fertilizer. Under Cambodian law, it is compulsory for all fertilizer manufacturers to purchase a government license to sell fertilizer. This license is USD10, 000 per product. Therefore, EBDU is considering exploring opportunities of testing wood vinegar for other uses such as animal feed enhancer, edible flavour enhancer, stain remover and toxic remover. C. Carbon credits While the Vattanak stoves hold the potential to generate substantial carbon credits, GERES must considerably scale up its number of stoves to cover the transactional costs of participating in the carbon market. Given the limited demand for the Vattanak stoves (there are only 20,000 palm sugar producers in Cambodia) in the future, GERES may consider exploring the possibility of modifying the Vattanak stoves to suit other industries. EBDU has done some early projections on potential revenue from carbon credits from Vattanak stoves: Number of Emissions Reductions Revenue @ 7.5 Vattanak Year t/CO²e US$/t Stoves Year 1 100 295 2213 Year 2 250 737 5,528 Year 3 500 1,474 11,055 Year 4 1,000 2,948 22,110 Year 5 2,000 5,897 44,228 Year 6 4,000 11,794 88,455 Year 7 8,000 23,587 176,903 Total 46,732 350,490 D. Developing appropriate technologies Leveraging its core competencies in research and development of rural technologies, - 18 -
  20. 20. GERES could explore expanding its line of products by either building on existing products or creating new technology to fit local needs and conditions in Cambodia. For example, the Vattanak stoves have the potential to be readily converted for other industry uses. VI. Expected benefits Forest Community Enable communities and businesses to have access to sustainable energy • thereby alleviating pressure on natural forest by reducing incentives for illegal fuel wood collection Generate additional income opportunities to households and charcoal • producers including carbon credits Provide opportunities for forest management education and improve long- • term capacity of communities to manage natural resources Address the serious energy crisis facing Phnom Penh which may disrupt • economic growth as small and medium size businesses struggle with rising oil costs Provides a platform for GERES to replicate and expand this model to other • communities in Cambodia Vattanak stoves Reduce amount of fuel wood used by 30 to 50 percent compared with • traditional stoves; considerable savings for poor palm sugar producers Encourage palm sugar producers to migrate to a more user friendly process • as the smoke is extracted by the chimney providing a better working environment for its users and the stove’s insulation dramatically decreases the heat loss Ensure consistency and quality of the end product compared with traditional • stoves Increase rural entrepreneurship opportunities as a result of local • entrepreneurs being trained to produce, sell and maintain the stoves Additional revenue generated from carbon credits captured from use of • stoves and avoidance of 30 to 50 percent of fuel wood consumed Adaptability of stove may enable GERES to easily modify stove to target • other farmer and industry groups Palm sugar Generate additional income for palm sugar producers. The activity also does • not interfere with rice production which is the main source of income for many families High quality of palm sugar enables product to be competitive with other • brands, particularly in overseas markets - 19 -
  21. 21. Wood vinegar Generate additional income for communities and charcoal producers • Additional income an incentive to use energy-efficient kiln which will reduce • consumption of fuel wood VII. Key challenges Commercial forest Potential external threats such as sabotage or illegal logging from outsiders • Internal standards and compliance needed to ensure that the forest • community properly harvests trees Low knowledge and inexperience of local communities in running a forest • community and enterprise Governance issues about how the forest community would be structured to • ensure benefits reach communities Market uncertainty and demand given that it takes time for wood to mature • (5-6 years) before it is ready to harvest and by that time, businesses may have moved to an alternative energy source Vattanak stoves Limited market demand for stoves given smaller number of palm sugar • producers in Cambodia; demand is not likely to rise. Affordability an issue as higher cost of stove may be a constraint for • households resulting in less then maximum output as households may have to share stoves Resources needed to train rural entrepreneurs and users for production and • maintenance of the stoves Impact of current financial crisis on price of carbon credits and how this may • potentially impact GERES’s business Palm sugar Stiff local and international competition. EBDU’s decision to focus initially • on selling to end-users (hotels, restaurants, cafes) rather than large sugar wholesalers will require more marketing efforts and resources. Initial volume will be small and is reliant on more Vattanak stoves being built • to produce palm sugar High costs and difficulties associated with obtaining fair trade or organic • certification Finding alternative markets for retailers interested in fairly traded products • (products without official fair trade or organic labels) Wood vinegar High costs of kiln may impede production and expansion of wood vinegar • Strict Cambodian laws on exporting of fertilisers may reduce opportunities • - 20 -
  22. 22. for product to reach overseas markets Uncertain markets for wood vinegar; limited resources available to explore • market potential for other usages of wood vinegar High costs and difficulties associated with obtaining fair trade or organic • certification Finding alternative markets for retailers interested in fairly traded products • (products without official fair trade or organic labels) VIII. Financing GERES will initially use its own resources and funding to support the start up of EBDU’s Eco-Biz (Cambodia) ltd. To create a viable enterprise, EBDU is seeking an initial investment of USD219, 100 to cover running costs for 2009-10 A brief breakdown of cost: Item Cost Operational cost 120,700.00 Human Resource 70,473.00 Equipment & general set-up of new 9 350.00 office Project implementation, survey and 1,050.00 studies Overhead costs rentals 11,040.00 etc Admin & 6,487.00 Contingences TOTAL 219,100.00 - 21 -
  23. 23. 4. The YLP Business Planning Framework I. Module Two Main Tasks During the week-long field work with GERES and EBDU, participants will undertake the following tasks in order to develop a business plan for EBDU: 1. Develop a firm understanding of the business model, governance and stakeholder issues involving the forest community; 2. Assess the business opportunities and analyse the markets for village products; 3. Identify the key factors (structure and market) that will promote or hinder EBDU’s business; 4. Examine the potential environmental and social benefits and impacts of EBDU’s business in the region; and 5. Develop financial projections for the expansion initiatives of the business model. Main Task Key Issues 1. Develop a firm What is the basis for the forest community business model? • understanding of the Who are the key stakeholders and how do they interact? • forestry community What are the key supply chain issues? • model, governance and How will the governance structure work? • stakeholder issues What are some key socio-economic and environmental issues • and how does GERES and EBDU anticipate in dealing with these risks? Are there possible opportunities to generate carbon credits • from the project? 2. Develop a firm What is the basis for EBDU’s business model? • understanding of Who are the stakeholders? • EBDU’s business Who are the suppliers and clients? • model, governance and How will the governance structure work? • stakeholder issues How will GERES as a stakeholder be able to integrate the • ownership shares into the EBDU business model and structure? 3. Assess the business What are key trends for village products in Cambodia and • opportunities and outside? analyse the markets for What are the rates of affordability? • village products Who are the competitors to EBDU? How are competitors’ • products priced? What are the alternative markets for fairly traded products, • both at the domestic and international level? How will this project be replicated elsewhere by EBDU? • 4. Identify the key What are the challenges and what technical expertise are • factors (structure and required to provide key services? market) that will How can GERES networks be leveraged? • promote or hinder EBDU’s business 5. Examine the What are the key social and environmental impacts brought • environmental and about by EBDU’s business model? social benefits of What is the role of village committees? • EBDU’s business in the What is the nature of the relationship between EBDU and the • area - 22 -
  24. 24. village committees? How is value captured and distributed between different players? Which grant-making foundations does EBDU have close ties • with and how can these ties be leveraged for furthering social benefits in the area? 6. Develop financial Develop financial projections of the EBDU business model projections for EBDU’s company over the next three years. model Items to include: Key operational cost items • Projected product unit sales prices and quantities • Costs of goods sold • Hidden costs of doing business (if relevant) • Profit, sales and/or value-added taxes • Start-up and subsequent investment required • Working capital needs • Potential sources of financing • And use the above to project: Profit and Loss • Cash flow • Payback period • Return on Investment • Breakeven points • Internal Rates of Return • The pros and cons of various financing options (e.g. debt, • equity, public-private-partnership) II. Business Planning Framework Having obtained information from undertaking the above tasks, participants will have the essential information they need to prepare a draft business plan. The plan will outline how EBDU will set up and implement its business model to market and sell village products while generating wealth and entrepreneurship for the rural communities. The plan will be put together by participants with help from GIFT facilitators. A business plan template is presented below for reference. I. Objectives Mission statement — one or two brief sentences describing the core objectives of the • business opportunity; why undertake this new venture? Measures of success — briefly outline what you want to achieve in one-year and • three-year time horizons. Include both financial and non-financial measures. Also, incorporate changes to the community that will occur through successful implementation of this new business. II. Business Model How will you add value for the target markets? • Primary products — what will this business generate in terms of products or • services? What are the competitive advantages of these products? Production and Technology — are current methods of production and technology • appropriate? How do they need to be improved? What are the investment needs? - 23 -
  25. 25. Target markets — who are the primary customers for this product or service? Why • will they make this purchase over other competitive products? For example, consider price, location, appropriateness of technology, etc. Supply chain —how will the products be procured and delivered to the target • customers? Are there any special risks or issues associated with this distribution approach? Maintenance — how will products and services be maintained to ensure effectiveness • and longevity? Are there any special risks or issues associated with this maintenance approach? III. Business Organisation and Governance Organisational structure — briefly describe how this business is organised. How • does it interact with the local community? Leadership — who will lead this business? Include information on the chief • executive and chief operating officer equivalents as well as financial and operational leadership. Governance — how will this business deal with regulatory compliance as well as • social and environmental impact issues? How do you plan to independently review the business? How will you go about putting this governance into place? How will the community be involved? What are the benefits to the community? How will income generation improve • livelihoods for the various stakeholder groups? IV. Marketing & Sales Plan Marketing — how will you inform potential customers about your products or services? How will you build a “brand” reputation? Sales — what methods will you use to sell the products? Are any third parties involved? How will they be compensated? V. Physical and Human Resource Requirements Physical resource needed — are current physical resources adequate (transportation vehicles, servicing equipment etc)? What investments are needed? Human Resources — are current human resources adequate? What additional investments are needed (training, more staff etc)? VI. Financial Resource Requirements How will you obtain the funds to launch and operate this business for the first three years? How will the business be funded? Debt or equity? Start-up capital — how much will you need to launch the business? How much working capital will you need? Lines of credit — what do you anticipate needing for a business line of credit for the first, second and third years of operation? Banking arrangements — do you have any preliminary thoughts on how to find and confirm both equity and debt? Who might be likely investors? Please provide a list. What are the benefits to investors? VII. Profits How much do you plan for the business to return during the first three years and how will the profits be distributed? What is the ROI over this period? What is the IRR? Profits by year — what do you expect the business to generate during the first, - 24 -
  26. 26. second and third years? Profit distribution — how do you expect to retain and/or distribute the profits? How will the community get involved? VIII. Implementation Issues What are the key implementation issues faced by the business? Which areas should a detailed feasibility study focus on? Who will lead the business in its initial start-up phase? What is the scalability of the business in the future? Can the investment opportunity be bundled or unbundled to attract different investors? IX. Leverage of Business to Other Communities Can this business be leveraged outside the originating community? If so, what are your plans to undertake this effort? By when? How? What are the overall benefits back to the wider community? X. Risks What are the primary risks to the success of this business? Risks to — supply chain, technology, marketing and sales, people, quality, financing, and compliance issues etc Globalisation risks – what will be the impacts of globalisation on the village community (e.g. culture, structure, influence of outside markets) III. Appendix – Additional Reading Materials The following are optional reading materials: 1. Country background Key indicators from Asian Development Bank • df CIA World Factbook • factbook/geos/cb.html “Sustaining rapid growth in a challenging environment: Cambodia country • economic memorandum”, January 2009, World Bank “Sharing growth: equity and development in Cambodia”, June 2007, World • Bank “Cambodia: Cambodia Business Initiative in Rural Development (C-Bird) To • Connect Businesses and Rural Communities”, July 2006, Asian Development Bank (ADB) 2. Forestry Management “Reducing greenhouse gas emissions from deforestation in developing • countries: considerations for monitoring and measuring”, August 2006, Global Observation of Forest and Land Cover Dynamics - 25 -
  27. 27. “Better forestry, less poverty: A practitioner’s guide”, 2006, Food and • Agriculture Organization (FAO), “Independent forest review: forest sector in Cambodia”, April 2004, Joint • Coordinating Committee 3. Climate change and energy crisis • “Soil under strain”, 17 July 2008, Financial Times • “Trouble in store”, 5 March 2009, Economist “Changing science”, 7 December 2005, Economist • “Energy supply and demand: trends and prospects”, Food and Agriculture • Organization (FAO) “Cambodia-Energy sector strategy review: issues paper”, April 2006, World • Bank 4. Carbon credits “Cooking up carbon credits”, 12 August 2008, CNN • “World carbon trading value doubles”, 8 May 2008, Financial Times, 8 May • 2008 “New products and players in carbon credit market”, 27 April 2008, Financial • Times “States and Trends of the Carbon Market 2008”, 2008, World Bank • 5. Project background Summary of Eco-Biz’s current status and expansion plans • Financial projections on Eco-Biz’s palm sugar and wood vinegar production • and sales Description of Vattanak stoves • GERES organizational chart • chart_GERES - 26 -
  28. 28. IV. Itinerary for Module Two Date Time 2 May 10:30am Arrive in Phnom Penh; coach transfer to the hotel (Flight KA206) (Saturday) 11:00am Coach transfer to forestry project site visit (2.5 hour drive). A separate bus to transport luggage to hotel 12:30pm Lunch 1:30-4:00pm YLP teams to visit forestry project as well as to view wood vinegar and charcoal kiln project. Opportunity for teams to meet with forest administrators and local community. 4:30pm Head back to hotel 7:00pm Dinner 7:30pm Participants start developing the business plan – facilitated by GIFT 3 May 8:00am Breakfast (Sunday) 8:30am Coach transfer to Menauk Field Station (2.5 hour drive) 11:00am YLP teams visit the sites to view the palm sugar project, interview households and palm sugar production centre to understand the business model as well as the environmental and social benefits to the local community 12:30pm Lunch 2:00-3:30pm YLP teams continue field visit and interview various local community members 3:30pm Transfer back to hotel in city 6:00pm Dinner 8:00pm Participants summarise findings from the field – facilitated by GIFT 4 May 8:00am Breakfast (Monday) 9:00am YLP teams to conduct various meetings and market research in the city (potential local buyers, hotels, restaurants etc) 12:00noon Lunch 2:00-5:00pm Teams continue to develop business plan (GERES management available on-site to answer questions) 6:00pm Dinner 8:00 Teams summarise findings from market visit and interviews – facilitated by GIFT 5 May 8:00am Breakfast (Tuesday) 8:30am Continue developing business plan (GERES management available on-site to answer questions) – facilitated by GIFT 12:00noon Lunch 2:00pm Continue developing business plan – facilitated by GIFT 6:00pm Dinner 8:00- Continue developing business plan – facilitated by GIFT - 27 -
  29. 29. 10:00pm 6 May 8:00am Breakfast (Wednesday) 8:30am Participants continue finalizing business plan 12:00noon Lunch 2:00-5:00pm Participants continue finalizing business plan 6:00pm Dinner 7 May 8:30am Breakfast (Thursday) 9:00am to Finalise business plan and prepare summary slides 12:30pm 12:30pm Lunch 3:00- Participants present the business plan to GERES management and potential investors - representatives 5:00pm from aid agencies, chambers of commerce, private firms and other organisations 8 May (Friday) 9:00am Breakfast 9:30am- YLP debrief – YLP reflections and evaluations, any last minute revisions on business plan etc. 12:00pm 12:00-3:00 Free time 3:00pm Check out of hotel 3:30pm Coach transfer to airport for check-in 6:00pm Depart for Hong Kong by flight KA207 (1800-2150) – (if travelling with group) 9:50pm Arrive in Hong Kong - 28 -
  30. 30. 5. Frequently Asked Questions TRAVEL, HOTEL, ELECTRICITY Do I need to arrange my own insurance? Participants are expected to possess the necessary insurance that covers medical, travel and personal liability for the duration of their GIFT experience. It is their responsibility to understand what their respective package covers. What travel document is required? Where can I get my visa for Cambodia? Visitors can enter Hong Kong for up to 90 days using their passports without the need for a visa. A tourist visa is required for Cambodia, and this can be obtained in participants’ home countries. It is strongly recommended that you obtain your Cambodia visa before arriving in Hong Kong. What is the time difference between Hong Kong and Cambodia? Hong Kong (GMT +8) is one hour ahead of Cambodia (GMT +7). What will the weather be like? The wet season in Cambodia begins in May with temperatures ranging from 25-35ºC. Mornings are generally clear and dry followed by 2 to 3 hours of rain in the afternoon. Temperatures in Hong Kong range between 24-28ºC in May. Participants are recommended to bring a light windproof jacket as many meetings will be held in air-conditioned spaces. What kind of food will be available? Should I bring my own food? Local Khmer food (fried rice and noodles) will be available, and there are many restaurants in Phnom Penh serving a variety of western as well as vegetarian dishes. In rural areas, food varieties are limited, and their way of cooking may differ from what we normally have. If you have special dietary needs, you may want to bring along your own food that requires minimal preparation. Food is generally prepared hygienically, as long as one stays away from street vendors. What are the facilities available in the hotels? In both Hong Kong and Phnom Penh, standard facilities and amenities are available in the hotel. The hotel in Phnom Penh will also have a swimming pool and sauna available and free for guests to use. Hotel rooms will have 24-hour wired broadband internet access for a charge. What kind of electrical adaptor should I bring? Electricity in Hong Kong and Cambodia is 220V, 50 cycles, AC. Hong Kong uses the British squared three pin sockets, while Cambodia accepts two-pin sockets. In Phnom Penh, the hotel will have a socket for shavers and hairdryers in the bathroom for both 110V and 220V. TRAVEL HEALTH Are there any health risks for travelers? The World Health Organisation suggests travellers to be aware of the risks of Malaria: Malaria risk—predominantly due to P. falciparum—exists throughout the year in the whole country except in Phnom Penh and close around Tonle Sap. P. falciparum resistant to chloroquine and sulfadoxine–pyrimethamine reported. Resistance to mefloquine reported in western provinces near the Thai border. However, the chance of coming into contact with malaria is limited, as YLP - 29 -
  31. 31. participants will stay in Phnom Penh most of the time, and make day trips to the rural communities outside of the city. Will I need to have any inoculations? As per WHO recommendations, no vaccination is presently required. However, travellers should avoid buying food or drink from street vendors, and take precautions to avoid insect bites. The risk of avian influenza is present in the region so close contact with birds should be avoided. A yellow fever vaccination certificate is required from travellers coming from areas with risk of yellow fever transmission. Is the water safe to drink? Bottled water is safe to drink. Do not eat food purchased from street vendors, peeled fruits that have been exposed or food that is not well cooked to reduce risk of infection (i.e., hepatitis A and typhoid fever). Beverages with ice should also be avoided. MONEY AND CURRENCY How much local currency should I take? Domestic travel, accommodation and food are included in the YLP package. You only need to bring cash for personal expenses and hotel extras (internet charges, laundry, and phone calls etc.). Hotels in both Hong Kong and Phnom Penh will accept VISA and Mastercard payments. Will I be able to change money there? Are credit cards accepted? You can change your money into Hong Kong dollars and the Riel (the local currency in Cambodia) at banks in Hong Kong and Cambodia, but it is advised that you do so in your home country. The US currency is widely accepted in Cambodia. Having some small denomination notes is highly recommended. Credit cards are not commonly used in rural areas in Cambodia. Many local establishments in Hong Kong and Phnom Penh accept international credit cards. ATM machines are available in both places, but Cirrus and PLUS cards are not always accepted. FIELD WORK What should I wear? T-shirts should suffice, but wear a light-coloured, long-sleeved shirt and a hat to protect you from the sun and repel insects, especially when outdoors. Light trousers and good walking or running shoes are recommended. Avoid wearing shorts. Will I be able to use my laptop computer there? Is it required? A computer is not mandatory for the field trip, but each group should have at least one laptop to use while preparing the business plan. There is 24-hour broadband internet connection in the rooms of both hotels. It is advised that you bring your LAN cable. What essential items should I bring for field work? Insect repellent containing DEET, long-sleeved shirt and long pants • recommended for outdoor activities Sunblock, sunglasses and hat • Medication for personal use • Umbrella or raincoat • Notepad and pen • A small water container that can hold boiled water • Will there be interpreters? Yes, we will have Khmer-speaking staff from GIFT’s NGO partner joining the trip. There will also be interpreters that can speak local dialects. - 30 -
  32. 32. Will we be out of communication during the field work? How will we be able to contact people or be contacted if necessary? Certain rural areas do not have mobile phone reception. Other than that, you can use mobile phones in most areas. Stored value SIM cards can be purchased in Hong Kong and Phnom Penh. HOTEL INFORMATION Hong Kong (April 26 – May 1) GIFT has arranged hotel accommodation for participants from outside Hong Kong. The hotel details are as follow: Cosmopolitan Hotel 387-397 Queens’ Road East Wan Chai, Hong Kong Tel: (852) 3552 1111 Fax: (852) 3552 1122 The most convenient way to get to the hotel from the airport is: 1. Take the Airport Express train at the arrival hall of the airport to Hong Kong Station. One-way ticket costs HK$100, and takes around 25 minutes. 2. Take a taxi from the Hong Kong Station to the hotel, cost at around HK$30. The hotel is within walking distance to the classroom (at the Football Club) where YLP sessions will be held. On April 27, a GIFT representative will escort you from the hotel to Module One venue. Participants should gather in the hotel lobby at 8:30am. - 31 -
  33. 33. Phnom Penh, Cambodia (May 2 – 8) Imperial Garden Villa & Hotel, Phnom Penh 315, Sisowath Quay, Phnom Penh, Kingdom of Cambodia Tel: (855) 23-219-991 Fax: (855) 23-219-992 Website: Imperial Garden Villa & Hotel is located in the city centre of Phnom Penh. Transport from the airport to the hotel takes 40 minutes. Flight Schedule Itinerary between Hong Kong and Phnom Penh Departure Arrival Date Flight Itinerary (local time) (local time) May 2 (Sat) KA 206 Hong Kong Phnom Penh 8:55 10:30 May 8 (Fri) KA 207 Phnom Penh Hong Kong 18:00 21:50 (The above itinerary may be different for individual participants.) All local transport in Cambodia will be arranged by GIFT. - 32 -
  34. 34. Annex A. Introducing the 2009 CAMBODIA YLP Participants: Ms. Corina ABADI Corina is currently on a student exchange programme at HKU. She was brought up in Colombia and Mexico where she studied and co- founded a non-profit business to assist Tarahumara Indians in northern Mexico. Corina has also previously interned at different financial institutions in New York.        ‘Having lived in two developing countries in Latin America throughout my childhood and through my studies at Tufts University, I have become increasingly interested in entrepreneurship as a means of social change. I believe that this program would be a wonderful asset that will teach me real world examples about social entrepreneurship and leadership.’ The University of Hong Kong (HKU)/TUFTS Mr. John ANDERSON John is a Director with Meinhardt (Thailand) Ltd. He has 19 years experience working as a Professional Engineer and has a specialist expertise in the design of high-rise buildings, steel structures and in earthquake design.           “The YLP may be a potentially life changing experience. Chance to help out others who are less fortunate than myself and at the same time learn new skills that can help me out in my career.” Meinhardt (Thailand)   Ltd. Ms. Amy BIRCHALL Currently based in London, Amy is acting as a Freelance Strategic Marketing Consultant. She has 9 years agency experience in marketing and communications across developed & emerging markets in North America, Europe and APAC regions in a variety of industries including: fast-moving consumer packaged goods, sports & entertainment.   ‘My strong desire to make a positive difference in people’s lives is one of the reasons why I am refocusing my brand/marketing efforts into areas where sustainability, social development & globalization issues exist. I believe the YLP will deliver a one-of-a-kind learning experience by providing participants with the opportunity to work with a developing market along with skilled individuals from various business disciplines in creating sustainable solutions that will deliver a real benefit to local communities & key stakeholders in the public and private sectors.’ - 33 -
  35. 35. Mr. Yihui CAO Yihui is currently studying her MBA at the Tsinghua University SEM & MIT Sloan IMBA Program. Previously, she worked for five years in different Chinese government ministries dealing with various environmental protection issues such as climate change, biodiversity and management of international waters. ‘I’m especially interested in the YLP because of my passion and background in environmental protection. I would like to apply what I have learnt in the MBA programme to real work and I believe the YLP is a wonderful opportunity to do so.’ Tsinghua University (MBA) Ms. Crystal HO Crystal is a design management engineer and her primary responsibilities include managing teams to modify existing transport stations and re-provision of operational facilities in addition to working with other department within MTR to develop initiatives which are beneficial to the community at large. ‘I believe the YLP will provide me with a great opportunity to enhance my leadership and business talent skills as well as enable me to better understand the complexities of doing business in Asia. Through working with other YLP participants from various cultures and disciplines, I can learn from their experiences and share with them my view and thinking. I also look forward to participating in a real project to help a Cambodian NGO to set up a for-profit enterprise to protect valuable forest resources.’ MTR Corporation Ms. Natalie HUI   As a solicitor, I act for clients in areas such as takeovers, M&A, convertible bonds, joint ventures etc.  My role varies but we work in small  teams and I will usually have a client facing, advisory and negotiating role.’        ‘I have been participating in legal pro bono and volunteer activities for many years and have increasingly wanted to make a more sustained  difference.  I believe the YLP can help me do so by pairing my skills and enthusiasm, along with those of professionals with non‐profit, social  development, business, finance and consulting backgrounds.’  Skadden, Arps, Slate, Meagher & Flom - 34 -
  36. 36. Mr. Yongki IKHTIYANTO Yongki is the Chain-of-Custody Coordinator, Asia Pacific, for the Rainforest Alliance which is an international, non-profit environmental and sustainable development organization that works to conserve biodiversity and ensure sustainable livelihoods by transforming land use practices, business practices and consumer behavior. He is responsible for providing chain of custody certification services and to support the sales and development of the market for SmartWood CoC certification services to clients.     ‘Through the YLP, I want to network with other young leader, expand my business development skills and produce an output after the two weeks program.’ Rainforest Alliance Ms. Lindsay KLUMP ‘Currently, I am serving as a lead consultant on Hewitt’s Best Employers in Asia/China 2009 Study, a one-year study conducted by Hewitt globally to analyze how companies are able to align human capital and business strategies while driving employee engagement.’ ‘YLP is a stepping stone for me personally to leverage the consulting skills and business acumen I have developed over the last 3 years and apply it in a new context with a social perspective. As CSR is in its infancy in China, I want to better understand how for-profit enterprises and non-profit enterprises can come together and co-exist as one.’ Hewitt Associates Ms. Alexis LAI ‘Coming from a liberal arts background, I hope to be able to provide a different perspective than the typical corporate participant. I hope to effectively apply the critical and analytical thinking skills I have honed in my education and career and perhaps contribute some insights from my academic studies on cultural identity politics. ‘I am keen on gaining business experience and sharpening my business sense. I have been learning about social enterprise and CSR, and believe that a better appreciation of these arenas is necessary for conscious and responsible citizenship and leadership, regardless of chosen profession. The YLP would also provide me with business and leadership skills training while taking global exigencies into account.’ - 35 -
  37. 37. Mr. Alex LEE   ‘I work for the Actuarial Services department and my main role is to design and price protection products.  I also manage the reinsurance  function of the company.’          ‘Most of my past work experience was with the regulatory agency which has huge leverage over regulated entities. Therefore, I feel that I have not had a chance to develop my negotiation and entrepreneurial skills; the YLP offers such an opportunity. In addition, the YLP would also expose me to a brand new industry outside of the financial services industry.’   Prudential Assurance Company Singapore (Pte) Ltd Ms. Waty   LILAONITKUL Waty previously worked for a major investment bank in their sales and trading division in addition to having volunteered in several charity organizations.   ‘I am a firm believer in the concept of having a for-profit business model for the various charitable organizations in order to create long-term sustainability with more control over the organization’s cash flow profile. I was excited to learn about the various projects YLP has taken on. I was also impressed with the program objective and commitment to facilitate and help the NGO make the business plan a reality.’   Ms. Chin LOH Chin is currently working as the Projects Development Officer for GERES. Previously, she was responsible for managing, designing and implementing the supply chain for GERES and EBDU. Before joining GERES in August 2007, Chin worked for TNT as Premier Support Executive where she took care of time-sensitive drugs or blood samples for the vertical Pharmaceutical market ‘The various aims of the YLP are aligned with my personal goals when I left the corporate world for an NGO one. Even so, there are many gaps to fill and leadership is integral especially when job fulfillment is beyond monetary rewards. The YLP is also an excellent learning opportunity to be part of the melting pot where ideas from talented professionals are challenged and considered within the context of social responsibilities, business approaches and global issues.’ GERES - 36 -
  38. 38. Mr. Sajith MADAPATU Saji previously worked as an advisor for FedEx where he was responsible for setting up the Portfolio Management office by mapping organization strategies and balance score card of $5B FedEx Freight corporation to its IT & Non IT projects & programs throughout the organization. ‘I look forward to the opportunity of giving back to the community where my heart and roots are. By learning from organizations such as GIFT, I hope to one day be able to set up my own think tank.’ Ms. Ekta MEHRA ‘I am a part of the Regional Head Office (RHO) HR team which manages and governs HR practices across the region. My role is of an independent “Project Manager” reporting directly to the Chief Officer, HR, Asia. As a project manager, I essentially perform the role of an internal consultant to the HR team and provide support in developing and driving various HR initiatives across Asia as required. ‘A program like YLP would give me a unique opportunity to understand my core strengths and developmental needs by stepping away from my daily work environment and comfort zone, at the same time retaining the merits of experiential learning. In addition the biggest value I see in this for myself is to be able to add value and contribute in some way to the society and in that process learn and grow both as a profession and as a person.’ Prudential Corporation Asia Mr. Andres NAIM ‘I was born in Caracas, Venezuela and grew up moving between Caracas and Washington DC. I am currently a junior at Tufts University double majoring in economics and philosophy. ‘Teaching Hurricane-Katrina afflicted youth in New Orleans taught me the personal rewards of helping troubled communities but also highlighted the inefficiency of many NGOs. It is because of my frustration with many classic NGO models that I am interested in the YLP. I hope to learn how to create sustainable social businesses that can have a long-term impact in their communities with little to no outside volunteer or NGO involvement necessary.’ The University of Hong Kong (HKU) /TUFTS - 37 -
  39. 39. Mr. Channy OR   Or is a joint founder and foundation member of CRDT which was formed in 2001 to assist in the development of rural Cambodia through sustainable rural development in support of environmental conservation.   Cambodia Rural Development Team (CRDT) Ms. Alexandra   PRIBILOVICS Alexandra is currently the Asia Communications Manager for Honeywell based in their Shanghai office.  Previously she worked as the PR &  Marketing Director for the Centre for International Business Ethics in Beijing on various CSR initiatives.      ‘My goal in participating in YLP is to improve my leadership skills so that I am not only focusing on the three areas of ethics, education and energy but am moving towards becoming a leader in the field.’  Honeywell Specialty Materials Ms. Sally QU Sally is currently working for a new set-up which was founded by a group of women in Beijing. Previously she worked at a Chinese foundation and local university in conducting research work related to environmental protection through legal aid. ‘Through the YLP, I hope to enhance my knowledge regarding business and social entrepreneurialism. I think that the field visit we will be doing enable us to learn and to practice this knowledge. I am also looking forward to the chance to share ideas with the people attending the programme.’ Women Environment and Health Work Group - 38 -
  40. 40. Mr. Mathieu RAFFESTIN As the CFO for Sonepar Asia, Mathieu is responsible for the electronic company’s financial matters including working with suppliers and potential customers. ‘From the YLP, I hope to meet and share experiences with people from different backgrounds as well as learning new leadership skills.’ Sonepar Asia Mr. Johnny REYES Johnny is a Project Director for Meinhardt in their Philippines office where he is responsible for design, implementation and consultancy of multi-disciplinary engineering services on projects such as industrial, commercial and institutional buildings. ‘From the YLP, I hope to enhance and build communication skills to improve team processes, meet with other professionals from diversified backgrounds, gain exposure to diverse cultures with social and economic challenges for sustainable development as well as meet the challenges of developing a business plan.’ Meinhardt (Philippines) Ltd. Ms. Elham TORABI Elham is currently studying Industries Engineering and Industrial Technology at the Isfahan University of Technology in Iran. ‘I’d like to have a chance to share ideas and learn to think with an open mind and develop my creativity. I want to use this opportunity to expand my relations with young leaders from other parts of Asia because this is important for us to better understand each other in order to Isfahan University of work together in the future.’ Technology - 39 -
  41. 41. Mr. Hui YANG As the Finance Director for Hite Electric Technology, Hui is responsible for controlling cash flow and ensuring the liquidity of the company in addition to other financial matters related to the company’s business of distributing industrial electronic products in the region. ‘In joining the YLP, I would like to develop my personal leadership skills as well as to learn and share my management experience with people from the programme.’ Hite Electric Technology Co. Mr. Chien Chin YONG ‘I am working as a consultant responsible for the delivery of customized enterprise software and SAP solutions. My project duties involve defining requirements, testing, documenting and presenting solutions to the client. Recently, I have been working on bid and proposal works with our sales team focusing on medium to large SAP implementation opportunities.’ ‘Coming from an Asian heritage, I have strong interest to contribute to the sustainable development in the region. By taking part in the programme, I can be part of the solution to address issues on sustainability and the environment therefore making a difference to the livelihood of rural communities. The experience will help me to become a better leader in managing complex situations and leading a diverse group of people. More importantly, this is a unique opportunity to learn from others and to take lead in fulfilling my social responsibility for the wider community and the less privilege.’ IBM Ms. Betty YUAN Betty is currently studying her MBA at the Tsinghua University SEM & MIT Sloan IMBA Program. Previously, she worked as the Marketing and Operational Director at one of Korea’s largest companies in the gardening sector. ‘In joining the YLP, I hope to better understand key issues in Asia and to improve on my leadership skills. I would also like to learn how an NGO operates and to assist them in improving the welfare of communities in developing countries. Using my agricultural knowledge, I also Tsinghua University hope I can help the local Cambodian people to protect their forests and conserve energy.’ (MBA) - 40 -
  42. 42. Annex B. The GIFT Team Mr. Chandran Nair Dr. Thomas Tang Mr. Eric Stryson Founder & CEO Executive Director Programme Manager GIFT Contact Details Hong Kong – Global Institute For Tomorrow GIFT office Tel: 852 – 3571 8103 Fax: 852 – 3585 3910 For programme details: Anita YANG Office: 852 – 3571 8210 Mobile: 852 – 9011 3941 E-mail: For travel and other logistics: Amanda CHIU Office: 852 – 3571 8134 Mobile: 852 – 6099 1679 E-mail: - 41 -