Joint Annual Conference:
"Invest for Access"
Thursday, April 8, 2004
Sponsor organizations:Sponsor organizations:
TURKEY-EU RELATIONS
Davut Ökütçü
Chairman of the Board
Economic Development Foundation
8 April 2004, TORONTO
IMPLICATIONS ...
3
TURKEY-EU RELATIONSTURKEY-EU RELATIONS
--
MILESTONESMILESTONES
 1963 Accession Partnership Agreement1963 Accession Part...
4
Copenhagen CriteriaCopenhagen Criteria
 Guaranteeing democracy,Guaranteeing democracy,
 The rule of Law,The rule of La...
5
Compliance with the political criteriaCompliance with the political criteria
The precondition for the launching ofThe pr...
6
Precondition of Accession NegotiationsPrecondition of Accession Negotiations
are the Copenhagen Political Criteria.are t...
7
Ec. GrowthEc. Growth & Inflation& Inflation
7,8
5,9
5
0
1
2
3
4
5
6
7
8
2002 2003 2004*
Grow t h
0
10
20
30
40
50
60
70
...
8
Golden Rules of CompetitionGolden Rules of Competition
 Stable and predictable legislative environmentStable and predic...
9
After Customs Union.....After Customs Union.....
 Concepts likeConcepts like
 Productivity
 Total quality management,...
10
Award Winning TurkishAward Winning Turkish
CompaniesCompanies
 EFQM European Quality Awards
 1996 BRISA (Award Winner...
11
Turkish Foreign TradeTurkish Foreign Trade
0
20000
40000
60000
80000
100000
120000
140000 1980
1985
1993
1994
1995
1996...
12
““The real difficulty lies notThe real difficulty lies not
in developing new ideasin developing new ideas
but in escapi...
April 8, 2004April 8, 2004
Presented by: Brenda Hawryluk, Trade Specialist, Asia PacificPresented by: Brenda Hawryluk, Tra...
17
OUR SERVICES:OUR SERVICES:
 Trade developmentTrade development
 Market intelligenceMarket intelligence
 Export finan...
18
Saskatchewan Exports as % of GDPSaskatchewan Exports as % of GDP
Saskatchewan Bureau of Statistics (May 2003)Saskatchew...
19
Top 10 Saskatchewan Exports *Top 10 Saskatchewan Exports *
 Crude Petroleum OilsCrude Petroleum Oils 25.62%25.62%
 Po...
20
 Saskcan Pulse Trading Inc. head office and processingSaskcan Pulse Trading Inc. head office and processing
facility i...
21
 The company has constructed a lentil splittingThe company has constructed a lentil splitting
plant with a 75,000 MT a...
22
THE PARTNERSTHE PARTNERS
 Saskcan has strong financial partners.Saskcan has strong financial partners.
The total proje...
23
CHALLENGESCHALLENGES
 Processing of this type with commodities has never beenProcessing of this type with commodities ...
24
FOR MORE INFORMATION ON TRADE AND INVESTMENT INFOR MORE INFORMATION ON TRADE AND INVESTMENT IN
SASKATCHEWAN, PLEASE CON...
FOREIGN FINANCING OFFOREIGN FINANCING OF
PUBLIC SECTORPUBLIC SECTOR
PROJECTSPROJECTS
byby
Serdar GüzeySerdar Güzey
Underse...
26
Declining inflation rateDeclining inflation rate
5
15
25
35
45
55
65
75
85
95
J02
F
M
A
M
J
J
A
S
O
N
D
J03
F
M
A
M
J
J...
27
A powerful growth performanceA powerful growth performance
6.3%
-9.4%
7.9%
5.9%
5.0%
-15%
-10%
-5%
0%
5%
10%
2000 2001 ...
28
A strong fiscal balanceA strong fiscal balance
-2.0
2.3
5.5
3.9
6.5 6.5
-3.0
-1.0
1.0
3.0
5.0
7.0
1999 2000 2001 2002 2...
29
New investment climateNew investment climate
A Coordination Committe for the Improvement of the Investment
Environment...
30
Key players in foreign financingKey players in foreign financing
State Planning Organisation (SPO)State Planning Organi...
31
Key players in foreign financingKey players in foreign financing
(continued)(continued)
 appropriations for each proje...
32
Key players in foreign financingKey players in foreign financing
(continued)(continued)
 TreasuryTreasury
 General Di...
33
Key players in foreign financingKey players in foreign financing
(continued)(continued)
 LendersLenders
 Internationa...
34
Cycle of a Typical Public ProjectCycle of a Typical Public Project
 Implementing Agency (IA)’s application to theImple...
35
Cycle of a Typical Public ProjectCycle of a Typical Public Project
(continued)(continued)
 Favourable opinion from SPO...
36
Cycle of a Typical Public ProjectCycle of a Typical Public Project
(continued)(continued)
 Treasury negotiates the ter...
37
Phases in the Foreign Financing ofPhases in the Foreign Financing of
Public ProjectsPublic Projects
InternationalIntern...
38
Sources of Foreign FinancingSources of Foreign Financing
Types of FinancingTypes of Financing
Financing
provided by the...
39
Public Investments in 2004Public Investments in 2004
SectorSector
Number ofNumber of
ProjectsProjects
20042004
Investme...
CIDA’s Private Sector DivisionCIDA’s Private Sector Division
INDUSTRIALINDUSTRIAL
COOPERATION PROGRAMCOOPERATION PROGRAM
(...
41
CHANGES in CIDACHANGES in CIDA
 April 2003 – New Private Sector DevelopmentApril 2003 – New Private Sector Development...
42
CHANGES in CIDACHANGES in CIDA
 March 2004 – Launch of the Report by theMarch 2004 – Launch of the Report by the
UN Co...
43
CIDA-INC: MISSIONCIDA-INC: MISSION
 Supports the Canadian Private SectorSupports the Canadian Private Sector
in Intern...
44
THE SUPPORTTHE SUPPORT
MECHANISMSMECHANISMS
Investment
Professional Services
Viability Study
Start-up Support
Feasibili...
45
CIDA-INC: THE INVESTMENTCIDA-INC: THE INVESTMENT
PROJECTPROJECT
Typical supportTypical support
Study
$150,000
Support
$...
46
INC: Financial Contribution toINC: Financial Contribution to
lay the Groundworklay the Groundwork
Environmental
Impact ...
47
CIDA-INC: UNSUITABLE PROJETSCIDA-INC: UNSUITABLE PROJETS
No straight salesNo straight sales, and no…, and no…
Product/s...
48
CIDA-INC: Eligible companiesCIDA-INC: Eligible companies
have…have…
 3 yrs of experience
 Proven track record
 $700,...
49
HOW TO REACH USHOW TO REACH US
 DiAnne Masson-YensenDiAnne Masson-Yensen
 Phone:Phone:
 1-800-230-63491-800-230-6349...
Upcoming SlideShare
Loading in …5
×

Joint Annual Conference: "Invest for Access"

410 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
410
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Three trade development teams allocated geographically, work their markets to develop business opportunities for our exporters. The activities of this group include:
    identifying export market opportunities
    promoting member companies, their products and services to buyers
    organizing trade missions
    providing marketing expertise
    guidance and advice on exporting
    export training initiatives
    A team of six market intelligence specialists work on member market and sector specific requests for information that enables the company to make informed market development strategies. The MI team provides:
    market intelligence and information
    general overviews of target countries
    seminars and workshops on key export topics
    profile on STEP's website
    The export finance team has an extensive network of contacts through the North American banking institutions, the international financial institutions including the World Bank, European Bank for Reconstruction, CIDA, etc. They provide:
    guidance and advice on using export financing
    accessing international financial institution (IFI) project opportunities
    transportation and logistics support
    Our export finance team also represents the Export Development Corporation in Saskatchewan (EDC) for export credit insurance applications
  • Why is this organization so important to Saskatchewan companies and the provincial economy?
    the Saskatchewan economy is heavily reliant on exports
    - we are an exporting province with a wealth of natural resources and commodity based exports
  • Other includes:
    LENTILS
    LINSEED
    SEMI-CHEMICAL WOOD PULP
    LUMBER
    OATS
    UREA
    HERBICIDES
    CHEMICAL WOOD PULP
    CANOLA
    BOND PAPER
    ELECTRIC CONDUCTORS
    LIQUIFIED PETROLEUM
    OPTICAL FIBERS
    MALT
    LINE PIPE
  • <number>
    For preliminary Market Analysis = PEMD
    Speculative Activities = Finding Natural Resources (ie digging for oil or minerals)
  • <number>
  • Joint Annual Conference: "Invest for Access"

    1. 1. Joint Annual Conference: "Invest for Access" Thursday, April 8, 2004 Sponsor organizations:Sponsor organizations:
    2. 2. TURKEY-EU RELATIONS Davut Ökütçü Chairman of the Board Economic Development Foundation 8 April 2004, TORONTO IMPLICATIONS OF ACCESSION NEGOTIATIONS on the INVESTMENT ENVIRONMENT IN TURKEY
    3. 3. 3 TURKEY-EU RELATIONSTURKEY-EU RELATIONS -- MILESTONESMILESTONES  1963 Accession Partnership Agreement1963 Accession Partnership Agreement  Jan.1, 1996 Completion of Customs Union with EUJan.1, 1996 Completion of Customs Union with EU  1997 Luxemburg Summit1997 Luxemburg Summit  1999 Helsinki Summit1999 Helsinki Summit  2002 Copenhagen Summit2002 Copenhagen Summit
    4. 4. 4 Copenhagen CriteriaCopenhagen Criteria  Guaranteeing democracy,Guaranteeing democracy,  The rule of Law,The rule of Law,  Respect for human rights,Respect for human rights,  Protection of minoritiesProtection of minorities  Existence of a functioning market economyExistence of a functioning market economy  Capacity to cope with the competitive pressureCapacity to cope with the competitive pressure from the EUfrom the EU  Full compliance with the European Union acquisFull compliance with the European Union acquis Political Criteria
    5. 5. 5 Compliance with the political criteriaCompliance with the political criteria The precondition for the launching ofThe precondition for the launching of the accession negotiationsthe accession negotiations Since 1999,Since 1999,  Turkey has undertaken various reforms in the political,Turkey has undertaken various reforms in the political, economic and legislative spheres of the integrationeconomic and legislative spheres of the integration process.process.  1/3 of Constitution amended,1/3 of Constitution amended, 77 reform packagesreform packages adoptedadopted  ““Implementation” is now the key word.Implementation” is now the key word.  Structural ReformsStructural Reforms  Reform Monitoring GroupReform Monitoring Group  Human Rights BoardHuman Rights Board  Extensive training of security and judiciary staffExtensive training of security and judiciary staff
    6. 6. 6 Precondition of Accession NegotiationsPrecondition of Accession Negotiations are the Copenhagen Political Criteria.are the Copenhagen Political Criteria. YETYET Economic criteria and harmonizationEconomic criteria and harmonization with the Acquis are the key to fullwith the Acquis are the key to full integration with the EUintegration with the EU.. Turkey has coveredTurkey has covered considerablconsiderable ground ine ground in these areas to shorten the period ofthese areas to shorten the period of negotiations on the path to full membershipnegotiations on the path to full membership
    7. 7. 7 Ec. GrowthEc. Growth & Inflation& Inflation 7,8 5,9 5 0 1 2 3 4 5 6 7 8 2002 2003 2004* Grow t h 0 10 20 30 40 50 60 70 80 2001 2002 2003 2004* I nflat ion
    8. 8. 8 Golden Rules of CompetitionGolden Rules of Competition  Stable and predictable legislative environmentStable and predictable legislative environment  Flexible and resilient economic structureFlexible and resilient economic structure  Traditional and technological infrastructureTraditional and technological infrastructure  Private savings and domestic investmentPrivate savings and domestic investment  Quality, speed and transparency in governmentQuality, speed and transparency in government  ProductivityProductivity  Investment in education and life-long trainingInvestment in education and life-long training  Preservation of the value systems of the citizensPreservation of the value systems of the citizens Source: IMD
    9. 9. 9 After Customs Union.....After Customs Union.....  Concepts likeConcepts like  Productivity  Total quality management,  Customer satisfaction,  Standardisation,  Continuous improvement,  Strategic thinking,  Institutionalisation,  Value-added,  Human resources management  Innovation took their place on the agendatook their place on the agenda
    10. 10. 10 Award Winning TurkishAward Winning Turkish CompaniesCompanies  EFQM European Quality Awards  1996 BRISA (Award Winner), NETAS - Northern Electric Telekomunikasyon  1997 Beksa (Award Winner)  1998 NETAS - Northern Electric Telekomunikasyon  1998 Beko Ticaret (Award Winner)  2000 Arçelik, Eczacibasi Vitra  2002 Bosch Sanayi ve Ticaret (Bursa / Turkey )  2003 Kocaeli Chamber of Industry (Prize winner)  European Energy+ Award  2004 Arcelik
    11. 11. 11 Turkish Foreign TradeTurkish Foreign Trade 0 20000 40000 60000 80000 100000 120000 140000 1980 1985 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 millionUSD Exports I mports Total t rade volume Source: UFT, SIS Customs Union
    12. 12. 12 ““The real difficulty lies notThe real difficulty lies not in developing new ideasin developing new ideas but in escaping from the oldbut in escaping from the old ones”ones” J.M. KeynesJ.M. Keynes Turkey is now full of determination on a clearTurkey is now full of determination on a clear path to EU.path to EU. We invite you to share and benefit from ourWe invite you to share and benefit from our aspirationaspiration
    13. 13. April 8, 2004April 8, 2004 Presented by: Brenda Hawryluk, Trade Specialist, Asia PacificPresented by: Brenda Hawryluk, Trade Specialist, Asia Pacific A UNIQUE PARTNERSHIP FOR TRADE AND BUSINESS DEVELOPMENT
    14. 14. 17 OUR SERVICES:OUR SERVICES:  Trade developmentTrade development  Market intelligenceMarket intelligence  Export financing advice and guidanceExport financing advice and guidance WHAT IS STEP?WHAT IS STEP? A non-profit, membership-basedA non-profit, membership-based organization designed to promote theorganization designed to promote the growth of Saskatchewan’s exportgrowth of Saskatchewan’s export industry.industry.
    15. 15. 18 Saskatchewan Exports as % of GDPSaskatchewan Exports as % of GDP Saskatchewan Bureau of Statistics (May 2003)Saskatchewan Bureau of Statistics (May 2003) Millions of dollarsMillions of dollars 20012001 20022002 Export of goods & servicesExport of goods & services 22,96022,960 23,09323,093  Exports to other countriesExports to other countries 14,33214,332 14,67714,677  Exports to other provincesExports to other provinces 8,6288,628 8,4168,416 Gross Domestic Product (GDP)Gross Domestic Product (GDP) 33,59333,593 34,70334,703 Total Exports as % of GDPTotal Exports as % of GDP 68.3%68.3% 66.5%66.5% Exports to other countriesExports to other countries 42.7%42.7% 42.3%42.3% Exports to other provincesExports to other provinces 25.7%25.7% 24.3%24.3%
    16. 16. 19 Top 10 Saskatchewan Exports *Top 10 Saskatchewan Exports *  Crude Petroleum OilsCrude Petroleum Oils 25.62%25.62%  Potassium ChloridePotassium Chloride 19.16%19.16%  Meslin and WheatMeslin and Wheat 7.44%7.44%  Durum WheatDurum Wheat 6.93%6.93%  Rape or Colza SeedsRape or Colza Seeds 3.26%3.26%  Natural UraniumNatural Uranium 1.90%1.90%  Peas – Dried and ShelledPeas – Dried and Shelled 1.65%1.65%  LinseedLinseed 1.58%1.58%  BarleyBarley 0.92%0.92%  Particle Boards of WoodParticle Boards of Wood 0.68%0.68%  OtherOther 30.86%30.86% Source of data: Statistics Canada Report Date: 20-Jan-2004* In the last 24 months
    17. 17. 20  Saskcan Pulse Trading Inc. head office and processingSaskcan Pulse Trading Inc. head office and processing facility is located in Regina, Saskatchewanfacility is located in Regina, Saskatchewan  Through an extensive network of cleaning plants andThrough an extensive network of cleaning plants and producers and its state of the art lentil splitting factory,producers and its state of the art lentil splitting factory, Saskcan will supply its global client base with premiumSaskcan will supply its global client base with premium quality Canadian pulses.quality Canadian pulses. Saskcan Pulse Trading: A Saskatchewan Success Story
    18. 18. 21  The company has constructed a lentil splittingThe company has constructed a lentil splitting plant with a 75,000 MT annual capacityplant with a 75,000 MT annual capacity  Products include a full line of:Products include a full line of:  Red Split LentilsRed Split Lentils  Futball Red LentilsFutball Red Lentils  Whole LentilsWhole Lentils  Chickpeas, andChickpeas, and  PeasPeas Saskcan Pulse Trading
    19. 19. 22 THE PARTNERSTHE PARTNERS  Saskcan has strong financial partners.Saskcan has strong financial partners. The total project, including operatingThe total project, including operating financing, was about $12 million.financing, was about $12 million.  Lenders include Farm Credit Canada andLenders include Farm Credit Canada and the Business Development Bank ofthe Business Development Bank of Canada, CIBC, Scotiabank, CrownCanada, CIBC, Scotiabank, Crown Ventures Fund (a labour-sponsoredVentures Fund (a labour-sponsored venture capital corporation) and SGGFventure capital corporation) and SGGF (the Saskachewan Government’s(the Saskachewan Government’s immigrant investment fund).immigrant investment fund).  SGGF and Crown Ventures are minoritySGGF and Crown Ventures are minority equity partners.equity partners.
    20. 20. 23 CHALLENGESCHALLENGES  Processing of this type with commodities has never beenProcessing of this type with commodities has never been done in this climate.done in this climate.  The furthest North this type of processing has been done isThe furthest North this type of processing has been done is in Turkey.in Turkey.  Weather is a huge issue when you are splitting eachWeather is a huge issue when you are splitting each individual kernel for an average of 300,000 kg per day in –40individual kernel for an average of 300,000 kg per day in –40 degree Celsius.degree Celsius.  The technical expertise and knowledge of the processingThe technical expertise and knowledge of the processing and systems was only resident in Turkey and they hadand systems was only resident in Turkey and they had difficulties with immigration which took years to resolve.difficulties with immigration which took years to resolve.  This company is in a landlocked jurisdiction and the worldThis company is in a landlocked jurisdiction and the world markets for these products are used to buying from a port-markets for these products are used to buying from a port- serviced source of supply.serviced source of supply.
    21. 21. 24 FOR MORE INFORMATION ON TRADE AND INVESTMENT INFOR MORE INFORMATION ON TRADE AND INVESTMENT IN SASKATCHEWAN, PLEASE CONTACT:SASKATCHEWAN, PLEASE CONTACT: Ms. Brenda Hawryluk, Trade Specialist, Asia PacificMs. Brenda Hawryluk, Trade Specialist, Asia Pacific Saskatchewan Trade & Export PartnershipSaskatchewan Trade & Export Partnership P.O. Box 1787P.O. Box 1787 Regina, SaskatchewanRegina, Saskatchewan S4P 2C6 CanadaS4P 2C6 Canada Phone: 306-787-9335; Fax: 306-787-6666Phone: 306-787-9335; Fax: 306-787-6666 e-mail: bhawryluk@sasktrade.sk.cae-mail: bhawryluk@sasktrade.sk.ca website: www.sasktrade.sk.cawebsite: www.sasktrade.sk.ca
    22. 22. FOREIGN FINANCING OFFOREIGN FINANCING OF PUBLIC SECTORPUBLIC SECTOR PROJECTSPROJECTS byby Serdar GüzeySerdar Güzey Undersecretariat of TreasuryUndersecretariat of Treasury Republic of TurkeyRepublic of Turkey April 8, 2004April 8, 2004
    23. 23. 26 Declining inflation rateDeclining inflation rate 5 15 25 35 45 55 65 75 85 95 J02 F M A M J J A S O N D J03 F M A M J J A S O N D J04 F M (%) CPI WPI
    24. 24. 27 A powerful growth performanceA powerful growth performance 6.3% -9.4% 7.9% 5.9% 5.0% -15% -10% -5% 0% 5% 10% 2000 2001 2002 2003 2004P GNP Change
    25. 25. 28 A strong fiscal balanceA strong fiscal balance -2.0 2.3 5.5 3.9 6.5 6.5 -3.0 -1.0 1.0 3.0 5.0 7.0 1999 2000 2001 2002 2003E 2004P Public Sector Primary Surplus (% of GNP)
    26. 26. 29 New investment climateNew investment climate A Coordination Committe for the Improvement of the Investment Environment (CCIIE) No Approval Requirement No Minimum Capital Requirement National Treatment Guarantee to Transfer Proceeds Key Expatriate Personnel Protection Against Expropriation Access to Real Estate International Dispute Settlement After the new Foreign Direct Investment LawAfter the new Foreign Direct Investment Law
    27. 27. 30 Key players in foreign financingKey players in foreign financing State Planning Organisation (SPO)State Planning Organisation (SPO)  Five Year Development PlanFive Year Development Plan  Annual Investment ProgramAnnual Investment Program  prepared by SPOprepared by SPO  covers all public sector institutionscovers all public sector institutions  In line with Five Year Development PlanIn line with Five Year Development Plan  total project costtotal project cost  duration of the projectduration of the project
    28. 28. 31 Key players in foreign financingKey players in foreign financing (continued)(continued)  appropriations for each projectappropriations for each project  foreign componentforeign component  local componentlocal component  sufficient appropriation to start a projectsufficient appropriation to start a project  currently 10% of the total project costcurrently 10% of the total project cost  Implementing AgenciesImplementing Agencies  Consolidated Budget InstitutionsConsolidated Budget Institutions  Ministries, KGM, DSI, Public UniversitiesMinistries, KGM, DSI, Public Universities  OthersOthers  MunicipalitiesMunicipalities  State Economic Enterprises (SEE)State Economic Enterprises (SEE)
    29. 29. 32 Key players in foreign financingKey players in foreign financing (continued)(continued)  TreasuryTreasury  General Directorate of Foreign Economic RelationsGeneral Directorate of Foreign Economic Relations  Foreign borrowing authorisationForeign borrowing authorisation  for all public institutionsfor all public institutions  Treasury borrowingTreasury borrowing  for all consolidated budget institutionsfor all consolidated budget institutions  Treasury guaranteeTreasury guarantee  for non-consolidated budget institutionsfor non-consolidated budget institutions  Treasury on-lendingTreasury on-lending  for non-consolidated budget institutionsfor non-consolidated budget institutions
    30. 30. 33 Key players in foreign financingKey players in foreign financing (continued)(continued)  LendersLenders  International Financial Institutions (WorldInternational Financial Institutions (World Bank, EIB etc.Bank, EIB etc.  Exceptionally their rules applyExceptionally their rules apply  Other GovernmentsOther Governments  Export Guarantee Agencies (ECA)Export Guarantee Agencies (ECA)  Commercial BanksCommercial Banks
    31. 31. 34 Cycle of a Typical Public ProjectCycle of a Typical Public Project  Implementing Agency (IA)’s application to theImplementing Agency (IA)’s application to the TreasuryTreasury  international competitive bidding (ICB)international competitive bidding (ICB) authorisationauthorisation  Treasury is the borrowerTreasury is the borrower  IA is the borrower under Treasury’s guaranteeIA is the borrower under Treasury’s guarantee  IA is the borrower but no Treasury guaranteeIA is the borrower but no Treasury guarantee  Treasury asks for the SPO’s opinion, whetherTreasury asks for the SPO’s opinion, whether  the project is in the Annual Investment Programthe project is in the Annual Investment Program  there is sufficient appropriationthere is sufficient appropriation
    32. 32. 35 Cycle of a Typical Public ProjectCycle of a Typical Public Project (continued)(continued)  Favourable opinion from SPOFavourable opinion from SPO  Treasury makes its own decisionTreasury makes its own decision  Treasury issues its ICB authorisationTreasury issues its ICB authorisation  Implementing Agency declares the biddingImplementing Agency declares the bidding  Implementing Agency sends the TreasuryImplementing Agency sends the Treasury commercial contract and the financial offercommercial contract and the financial offer
    33. 33. 36 Cycle of a Typical Public ProjectCycle of a Typical Public Project (continued)(continued)  Treasury negotiates the terms andTreasury negotiates the terms and conditions of the offer and the loanconditions of the offer and the loan agreementagreement  Treasury signs the loan agreementTreasury signs the loan agreement  Council of Ministers ratifies the loanCouncil of Ministers ratifies the loan agreementagreement  Loan agreement comes into forceLoan agreement comes into force  Disbursement startsDisbursement starts
    34. 34. 37 Phases in the Foreign Financing ofPhases in the Foreign Financing of Public ProjectsPublic Projects InternationalInternational CompetitiveCompetitive Bidding RequestBidding Request Due DiligenceDue Diligence FinancialFinancial AnalysisAnalysis TechnicalTechnical AnalysisAnalysis (SPO)(SPO) InternationalInternational CompetitiveCompetitive Bidding AuthorisationBidding Authorisation Bidding ProcessBidding Process completedcompleted Financial OffersFinancial Offers Submitted toSubmitted to TreasuryTreasury NegotiationNegotiation ProcessProcess EstablishmentEstablishment of Debt Serviceof Debt Service AccountAccount Signing ofSigning of AgreementsAgreements (for Muni’s and SEEs)(for Muni’s and SEEs) (for Muni’s)(for Muni’s)Signing ofSigning of Guarantee Protocol/Guarantee Protocol/ Onlending AgreementOnlending Agreement (for Muni’s and SEEs)(for Muni’s and SEEs) 11 22 33 44 55 66 66 77 88 99 1010
    35. 35. 38 Sources of Foreign FinancingSources of Foreign Financing Types of FinancingTypes of Financing Financing provided by the International Competitive Bidding Multinational Financial Institutions Intergovernmental Protocols EIB World Bank Germany KfW Japan JBICCommercial Banks ECAs Treasury is eitherTreasury is either guarantor orguarantor or borrowerborrower Treasury is either guarantor or borrower Treasury is the sole borrower Others Others
    36. 36. 39 Public Investments in 2004Public Investments in 2004 SectorSector Number ofNumber of ProjectsProjects 20042004 InvestmentInvestment ForeignForeign SpendiSpendinngg (000 US$)(000 US$) 20042004 InvestmentInvestment TotalTotal SpendingSpending (000 US$)(000 US$) AgricultureAgriculture 350350 179.987179.987 727.837727.837 MiningMining 6969 31.79631.796 238.170238.170 ManufacturingManufacturing 135135 23.69323.693 237.277237.277 EnergyEnergy 9191 432.681432.681 1.267.1291.267.129 TransportationTransportation 345345 810.266810.266 1.924.2811.924.281 TelecommunicationTelecommunication 2020 00 29.30229.302 TourismTourism 6161 00 53.54853.548 HousingHousing 1919 00 12.21912.219 EducationEducation 12821282 76.14776.147 1.212.1601.212.160 HealthHealth 394394 39.04539.045 610.156610.156 Other Public ServicesOther Public Services 789789 121.809121.809 1.155.2171.155.217
    37. 37. CIDA’s Private Sector DivisionCIDA’s Private Sector Division INDUSTRIALINDUSTRIAL COOPERATION PROGRAMCOOPERATION PROGRAM (“CIDA-INC”)(“CIDA-INC”) Presentation to the Canadian-Presentation to the Canadian- Turkish Business Council’sTurkish Business Council’s Annual Conference, TorontoAnnual Conference, Toronto April 8, 2004April 8, 2004
    38. 38. 41 CHANGES in CIDACHANGES in CIDA  April 2003 – New Private Sector DevelopmentApril 2003 – New Private Sector Development Policy - New Private Sector Division (PSD)Policy - New Private Sector Division (PSD)  Fall 2003 – Transfer of REE Program to PSD-Fall 2003 – Transfer of REE Program to PSD- New Eastern Europe and Central Asia (EECA)New Eastern Europe and Central Asia (EECA) Bureau in the PSDBureau in the PSD  April 2004 – Turkey Program has a New HomeApril 2004 – Turkey Program has a New Home with the EECA Bureau- Merged with the Asiawith the EECA Bureau- Merged with the Asia BureauBureau
    39. 39. 42 CHANGES in CIDACHANGES in CIDA  March 2004 – Launch of the Report by theMarch 2004 – Launch of the Report by the UN Commission on the Private Sector –UN Commission on the Private Sector – co-lead by PM Martinco-lead by PM Martin  April 2004 – Announcement of new PSDApril 2004 – Announcement of new PSD Mechanism -Mechanism - The Local EnterpriseThe Local Enterprise Investment Centre PInvestment Centre Pilot in Bangladeshilot in Bangladesh
    40. 40. 43 CIDA-INC: MISSIONCIDA-INC: MISSION  Supports the Canadian Private SectorSupports the Canadian Private Sector in International Venturesin International Ventures  Promotes Economically sound PrivatePromotes Economically sound Private Sector-led ProjectsSector-led Projects  Ensures Developmental Benefits for theEnsures Developmental Benefits for the Host-CountryHost-Country
    41. 41. 44 THE SUPPORTTHE SUPPORT MECHANISMSMECHANISMS Investment Professional Services Viability Study Start-up Support Feasibility Study Implementation Support
    42. 42. 45 CIDA-INC: THE INVESTMENTCIDA-INC: THE INVESTMENT PROJECTPROJECT Typical supportTypical support Study $150,000 Support $250,000 enables improves CIDA-INC Your project $1M +
    43. 43. 46 INC: Financial Contribution toINC: Financial Contribution to lay the Groundworklay the Groundwork Environmental Impact Assessment Study Corporate Social Responsibility (Gender) Mngt and tech Training Assessment Agreement Negotiations Cost Analysis Regulatory Framework Market Study/ Project Engineering Technical Feasibility Start-up/ Implementation
    44. 44. 47 CIDA-INC: UNSUITABLE PROJETSCIDA-INC: UNSUITABLE PROJETS No straight salesNo straight sales, and no…, and no… Product/service demo General Mgmt plans Straight sales/exports Business Agency ServicesPreliminary Market Analysis Speculative Activities Military Activities Nuclear Projects
    45. 45. 48 CIDA-INC: Eligible companiesCIDA-INC: Eligible companies have…have…  3 yrs of experience  Proven track record  $700,000 in sales for 2 yrs  Financially sound  Own technology to transfer  Human & Technical resources  Access downstream financing
    46. 46. 49 HOW TO REACH USHOW TO REACH US  DiAnne Masson-YensenDiAnne Masson-Yensen  Phone:Phone:  1-800-230-63491-800-230-6349  1-819-994-05381-819-994-0538  Email :dianne_massonyensen@acdi-Email :dianne_massonyensen@acdi- cida.gc.cacida.gc.ca  Web:Web: wwwwww..acdiacdi--cidacida..gcgc..caca//incinc  FAX : 819-953-5024FAX : 819-953-5024

    ×