india 2012                                                                        Edited by the German Embassy New Delhi  ...
FOREWORDFOREWORDDear Readers,India’s economic development in the last two decades        poverty, will not be achieved. Ge...
CONTENT                                                                              30                                   ...
ENVIRONMENTEconomic                                                                                                       ...
Intensifying Partnerships Through                                                                                         ...
UMBRELLA PROGRAMME ON                                                                                    ENVIRONMENTNATURA...
Action plans                                                                                         ENVIRONMENTon climate...
ENERGYPROMOTING5% of the total generation in the country actually comes from green power.                                 ...
SOLAR POWER FULL SPEED AHEAD                                                                                           ENE...
FROM WASTE TO ENERGY                                                                                              ENERGYAd...
INSULATION AGAINST                                                                                                     ENE...
SUSTAINABLE ECONOMIC DEVELOPMENT                                                                                          ...
PEOPLE, PLANET, PROFIT                                                                                           SUSTAINAB...
SMALL LOANS - BIG IMPACT                                                                                          SUSTAINA...
Workforce protection                                                                                             SUSTAINAB...
PARTNERSHIPS WITH PRIVATE SECTORS                                                                                         ...
PARTNERING WITH THE CIVIL SOCIETY                                                                                         ...
FOR A BETTER LIFE                                                                                                         ...
FORGING PARTNERSHIPS                                                                                                      ...
addresses                                                                                                                 ...
Indo german development cooperation-2012
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Indo german development cooperation-2012

  1. 1. india 2012 Edited by the German Embassy New Delhi Principles and projects to tackle shared challenges Development C o o p e r at i o n Indo-GermanEnvirONment balancing ecology and economic growthEnergy promoting renewables, efficiency and conservationSustainable economic development defending the human capital
  2. 2. FOREWORDFOREWORDDear Readers,India’s economic development in the last two decades poverty, will not be achieved. Germany and India wereis beyond doubt a success story. Per capita income has among the 189 countries that committed themselves todoubled in the last ten years and the private sector has these goals at the United Nations Millennium Summitregistered high levels of investment. in 2000.However, there are huge challenges that need to be Secondly, Germany is keenly interested in protectingtackled. Poverty is still a serious issue. In the wake of global goods like climate, the environment and inter-rapid economic growth, the already enormous pres- national stability. It is obvious that in this endeavoursure on the environment, natural resources and infra- India, a subcontinent of more than 1.2 billion people, isstructure has intensified further. increasingly a key global player.Supporting India in overcoming these development ob- What does Indo-German development cooperation ac- Traffic on Madan Street, Kolkata.stacles is the aim of Indo-German development coop- tually mean? In which sectors are we involved? Who areeration. our partners? Answers to these questions are available in the following pages. However, this brochure canWhy is German development cooperation engaged in certainly be no more than a brief overview. For moreIndia? The reason is at least twofold. Firstly, without and detailed information, we recommend a click on the © Martin Roemers / Panosdevelopment percolating to the masses in India, the respective websites that are mentioned alongside. WeMillennium Development Goals, e.g. halving global wish you an interesting and informative read. 3
  3. 3. CONTENT 30 PARTNERSHIPS WITH PRIVATE SECTORS06 ENVIRONMENT Bringing public and private partners together 08 Intensifying partnerships through environment management 10 Umbrella programme on natural resource management 12 Action plans on climate change FOREWORD 32 PARTNERING WITH THE CIVIL SOCIETY Working with NGOs, churches, political foundations and more14 03 ENERGY 16 Solar power full speed ahead 18 From waste to energy 20 Insulation against the heat and cold 34 FOR A BETTER LIFE German Missions in India fund small-scale projects addresses IMPRINT22 SUSTAINABLE ECONOMIC DEVELOPMENT 36 24 People, planet, profit 38 39 26 Small loans - big impact FORGING PARTNERSHIPS 28 Workforce protection Bringing multilateral organisations together 5
  4. 4. ENVIRONMENTEconomic Germany and India face shared challenges due to rapid urbanisation and industrialisation. For example, sustain- ing urban water bodies, ensuring better local air quality and sustainable land use. Germany is a world leader in innovative clean technolo-Economic globalisation is going to create an enormous amount of wealth, gies. India and Germany are long-standing partners ing lo b a l i s at i o n this field. The first Memorandum of Understanding (MoU) on co- operation in the field of environmental protection was signed in September 1998. Since then, cooperation hasand we are already beginning to realise that what you do in one country will have an environmental impact expanded to management of waste, water and renewablemust be followed by energies. Germany is supporting India in various areas to developecologicalin another country. And therefore you cannot maintain the earth in harmony by only managing your own country. sustainable solutions that balance economic growth and environment conservation. Indo-German development cooperation specifically fo- cuses on the areas of natural resource management, sustainable consumption and production, urban environ-You have to manage the whole earth. That is what I call ecological globalisation.g lo b a l i s at i o n ment protection, climate change adaptation and mitiga- tion, as well as innovative green technologies. Germany provides about INR 34.45 billion (500 millionAnil Agarwal, environmentalist, April 1999 euro) annually to India as Overseas Development Assis- tance − ODA (soft loans and grants) − in these areas. 7
  5. 5. Intensifying Partnerships Through ENVIRONMENTEnvironment ManagementImproving basic services in citiesThere is long-standing cooperation between Germany’s Gesellschaft für Inter-nationale Zusammenarbeit (GIZ) and India’s Ministry of Environment and Forests(MoEF) in the field of environment management.Focus areas: Strengthen India’s sustainable urban and industrial development efforts Water supply in Vyasarpadi area, Chennai.and intensify partnerships between Indian and German institutions.Support key Indian policy initiatives, such as the National Environment Policy, theNational Action Plan on Climate Change, and the Jawaharlal Nehru National UrbanRenewal Mission.Successes: Introduction of sustainable waste management and development of anumber of city sanitation plans, as well as efficient concepts for drinking water supplyand waste water management in a number of cities. © Sanjit Das / PanosMore achievements: The principles of ecologically sound industrial parks have beenintroduced in 30 sectors; a sanitary landfill site for hazardous waste has been built inKarnataka. 9
  6. 6. UMBRELLA PROGRAMME ON ENVIRONMENTNATURAL RESOURCE MANAGEMENTSupporting ENVIRONMENT-FRIENDLYTECHNOLOGIES and practicesThe Umbrella Programme on Natural Resource Management (UPNRM) waslaunched in 2009 and is jointly implemented by India‘s National Bank for Agricul-ture and Rural Development (NABARD), German government-owned developmentbank KfW and GIZ.The programme provides combined packages of loans and grants to financiallyviable and small initiatives of NGOs, producer companies, corporates andcommunities. Small-scale cattle farming, Rajasthan.UPNRM also promotes environmentally sustainable growth by encouraging privateinvestments that benefit the poor.Successes: The “umbrella programme” encompassed over 75 projects by August2011; ranging from forest-based medicinal plants and eco-tourism, to integrateddairy management in developed watershed areas and other livelihood activities. © Mitchell KanashkevichOver 100,000 participants, of whom approximately 36 per cent are women and 44per cent from scheduled casts and scheduled tribes, are involved in the projects.UPNRM will not only help in scaling up existing approaches (Watershed andAdivasi development), but will also explore other sub-sectors like forestry,farming systems management, agro-processing, natural resource based liveli-hoods and climate change adaptation. 11
  7. 7. Action plans ENVIRONMENTon climate changeTackling effects of climate change inrural areas of IndiaIn 2008, Indian Prime Minister Dr. Manmohan Singh launched the country’s National Mud cracks during drought, Rajasthan.Action Plan on Climate Change.Germany’s GIZ is working in collaboration with United Nations Development Pro-gramme (UNDP), World Bank, Asian Development Bank (ADB) and UK’s Departmentfor International Development (DFID) to provide inputs to India’s MoEF for preparation © A. Ishokon - UNEP/ Still Picturesof a common framework for the action plans at national and state levels.Madhya Pradesh, Rajasthan, Tamil Nadu and West Bengal are the chosen locationsfor the project Climate Change Adaptation in Rural Areas, as they encompass India‘sdiffering agro-climatic zones.GIZ, together with KfW, will also be supporting the implementation of the State ActionPlans on Climate Change in selected Indian states, especially in the North East ofIndia. 13
  8. 8. ENERGYPROMOTING5% of the total generation in the country actually comes from green power. Energy is a priority issue for India. About 400 million peo- ple in the country are still without a power connection. Estimates suggest that the total demand for electricity in India will double by 2030.INCREASED USE OF Germany supports an inclusive energy supply that is sustainable not only in economic, but also in ecological terms.India reached 5% level in 2010 and annually The major objective is to decouple energy consumptionGREEN POWER from economic growth. Implementation of reforms in the electricity sector will facilitate an increased use of renewable resources, im- prove energy efficiency and promote energy conservationone percent is going to add up to take it to 10% by 2015.IS FOR OUR OWN at all levels of society and in all sectors of the economy. Germany’s KfW has committed INR 96 billion (1.4 billion euro) in the past five years – an average of INR 19.3 billion (280 million euro) per annum.Dr Pramod Deo, Chairperson, Central Electricity Regulatory Commission, 2011ENERGY SECURITY Additionally, technical cooperation for public and private partners has been increasing steadily in energy efficiency and renewable energy sectors, and amounts to a total of INR 1.7 billion (25 million euro) in the past five years. 15
  9. 9. SOLAR POWER FULL SPEED AHEAD ENERGYPromoting the solar sector Vendors use solar powered lights, Ahmedabad.The Government of India has launched the Jawaharlal Nehru National Solar Missionto tackle the twin problems of power deficits and mounting carbon emissions. It setsan ambitious goal of achieving 20 Gigawatt (GW) of solar capacity by 2022, comparedto 109 Megawatt (MW) at present.In August 2011, Germany’s KfW signed an INR 17.2 billion (250 million euro) loan © Amit Dave / Reutersagreement to support the construction of a 125 MW solar photovoltaic plant in thestate of Maharashtra.The Sakri solar power plant is India’s first large-scale and Asia’s biggest solar photo-voltaic plant. Its total cost is estimated at INR 25.5 billion (370 million euro).The power plant is due to be commissioned in 2012. 17
  10. 10. FROM WASTE TO ENERGY ENERGYAdvancing renewableenergy developers Waste from sugar cane, to be converted into bio CNG.Green Elephant Group is an Indo-German renewable energy company focusing on wasteto energy projects in India.The company has brought a new technology for processing agricultural residues intocompressed gas to India.With the construction of its first biogas plant in India’s sugar belt at Satara District inMaharashtra, Green Elephant set up the largest production capacity of this type in Asia.The plant consumes approximately 200,000 m³ of organic sugarcane waste per annumand generates approximately eight million m³ of gas per annum. © Jack KurtzThe project was set up in the framework of Indo-German financial cooperation and isfinanced by the Indian Renewable Energy Development Agency Limited, through a creditline from KfW. 19
  11. 11. INSULATION AGAINST ENERGYTHE HEAT AND COLDBoosting energy efficiencyin residential buildings Labourers work at a construction site, Chennai.In the light of rapid industrialisation, growing urban population and the detrimental effects ofgreenhouse gas emissions, energy efficiency is a top priority worldwide.Under KfW’s support, India’s The Energy and Resources Institute (TERI) and Germany’sFraunhofer Institute have jointly adapted an assessment tool for calculating, optimizing andcertifying energy efficiency of buildings. © Babu Babu / ReutersThe software received encouraging responses from all stakeholders and is currently beingapplied in the Promotional Programme for New Residential Housing implemented by theNational Housing Bank (NHB).KfW has provided a credit line of INR 3.4 billion (50 million euro) and a grant of INR 137 million(two million euro) to NHB to develop and finance energy efficient measures in residentialbuildings in India. 21
  12. 12. SUSTAINABLE ECONOMIC DEVELOPMENT Despite India’s remarkable economic achievements over the past 20 years, massive social and regional disparitiesPEOPLE remain. Germany supports India’s reform policies geared to- wards inclusive, and regionally and socially balanced growth. Indo-German cooperation for sustainable development is organised around three pillars in this priority area: financial systems development, private sector develop- ment and social protection.Development is thus about expanding the choices peopleARE THE REAL In financial systems development, Indo-German cooper- ation targets the provision of adequate demand-oriented financial services in India. The programmes support financial inclusion, especially for below poverty line fam-WEALTH OFhave to lead lives that they value. And it is thus about much more than economic growth, ilies. In private sector development, Germany’s cooperation with India addresses responsible business behaviour and competitiveness. The programme also promotes prop- erly functioning markets and institutions. Additionally, itNATIONS encourages an intensive public-private dialogue.which is only a means - if a very important one - of enlarging people‘s choices As sustainable and inclusive growth is strongly inter- linked to social security, Germany and India work to- gether to provide social protection to unorganised work- ers and below poverty line families. This includes health, life and accident insurance, and old age pensions, among others.Human Development Report, UNDP @, 2012 The support for the priority area of Sustainable Economic Development has grown steadily. The total commitments over the past five years exceed INR 17 billion (250 million euro). 23
  13. 13. PEOPLE, PLANET, PROFIT SUSTAINABLE ECONOMIC DEVELOPMENTEncouraging socially, environmentally andcommercially responsible practicesThe Indo-German Corporate Social Responsibility initiative seeks to encourage com-panies, both large and small, to integrate environmentally and socially responsiblepractices in their core businesses.This initiative has been formulated by the Indian Ministry of Corporate Affairs withthe support of GIZ. It aims to help Indian businesses achieve the triple bottom Safety at work in a steel fabrication yard,line − ‘People, profits, planet’.This project enables a multi-stakeholder dialogue process, involving a wide array ofpublic, non-governmental and private-sector actors. Various studies and surveys are New Delhi. © Zackary Canepari / Panosalso conducted.Pilot schemes: The initiative is currently working with three clusters consisting ofbusiness member organisations representing 100 energy-intensive steel foundries.A range of simple measures, such as energy efficiency and safe and hygienic workingconditions are being implemented. The number of clusters is now set to rise to18, involving 25 business member organisations.Another success: The Corporate Social Responsibility Voluntary Guidelines 2009 laydown the fundamental principles of responsible business behaviour and competitive-ness. These guidelines are applicable to all businesses, irrespective of size, sector orlocation. 25
  14. 14. SMALL LOANS - BIG IMPACT SUSTAINABLE ECONOMIC DEVELOPMENTEnhancing financial inclusion ofthe poor and excludedThrough the Cashpor Micro Credit programme, Germany’s KfW seeks to improveaccess to finance by the poor and financially excluded households. Sustainable income generation, Chandigarh.This will contribute to household asset creation, sustainable income generation,poverty reduction and growth.Cashpor Micro Credit exclusively targets below poverty line households and works inthe villages of Uttar Pradesh, where no other microfinance institution is present.Through an INR 5.8 billion (85 million euro) credit line from KfW to the Small Indus-tries Development Bank of India (SIDBI), refinancing support is being extended for © Ajay Verma / Reuterssub-loans to microfinance institutions in order to scale up microfinance activities.Cashpor is one of the many microfinance institutions supported under this pro-gramme.Additionally, INR 116 million (1.7 million euro) has been provided to further enhanceSIDBI’s capacities, to develop rating, appraisal and risk assessment tools and to trainselected partner microfinance institutions. 27
  15. 15. Workforce protection SUSTAINABLE ECONOMIC DEVELOPMENTSecuring the human capitalThe Indo-German Social Security Programme (IGSSP) provides technical advice to theIndian Ministry of Labour and Employment for the implementation of the UnorganisedSector Workers’ Social Security Act, and to help improve the social security system for Medical care to new born babies, Raxaul.workers in the unorganised sector and their families.Salient points of IGSSP: health insurance, old age pensions, life and accident insurance,promoting coherence between different social security systems and supporting an Indo-German social policy dialogue.Support for India’s Rashtriya Swasthya Bima Yojana (RSBY) is one of four components ofthe IGSSP. © Sanjit Das/PanosGermany’s GIZ has been directly involved in the design and implementation of RSBY since2008. RSBY is an extremely innovative approach to health insurance—a whole family getshealth insurance coverage, cashless and paperless, made possible by a smart card.In the years to come, this RSBY smart card could also include a variety of additional ben-efits and services, e.g. motherhood benefits or food subsidies. 29
  16. 16. PARTNERSHIPS WITH PRIVATE SECTORS PARTNERSHIPS WITH PRIVATE SECTORSBringing public and private partners togetherPartnerships between the private sector and the state For example, through KfW, Germany is supporting Indiaare pivotal to fostering sustainable development. in developing a National PPP Capacity Development Programme. A grant of INR 48 million (Euro 700,000)With its Public-Private Partnership (PPP) strategy, the will assist India’s Ministry of Finance in improving theFederal Ministry for Economic Cooperation and De- knowledge and skills of up to 4,000 public officialsvelopment (BMZ) intends to strengthen the concerted throughout India.action of official development cooperation and privatebusiness activity. India and Germany’s KfW are establishing a national urban infrastructure scheme that focuses on promoting right © Jayanta Shaw/ Reuters left © Carles Platiau / ReutersGermany’s programme combines the PPP infrastructure projects in urban areas. It providesstrengths of public and private partners: development long-term financing for investments in environmentalpartnerships are planned, financed and implemented infrastructure, such as water supply, sewerage andjointly. waste water, and solid waste management.The aim of is to mobilise additional contri-butions from the private sector, utilize private manage-ment know-how with a view to more efficient servicedelivery, and promote private-sector investment as agrowth engine for India’s development process. 31
  17. 17. PARTNERING WITH THE CIVIL SOCIETY PARTNERING WITH THE CIVIL SOCIETYWorking with NGOs, churches,political foundations and moreIndia is Germany‘s biggest partner in NGO cooperation. Example: EED supports an NGO, UNM-M, in Manipur Political foundations represented in India: FriedrichAmong the most important German NGOs, in terms of that works to reduce the impacts of ethnic conflict, Ebert Foundation (FES), Konrad Adenauer Foundationfinancial engagement, are Karl Kübel Foundation, especially on women and children. Misereor supports (KAS), Friedrich Naumann Foundation (FNSt), HannsJugend dritte Welt, Ärzte dritte Welt and Andheri Hilfe. Butterflies, a voluntary organisation working with street Seidel Foundation (HSS), Heinrich Böll Foundation children since 1989. (HBS) and Rosa Luxemburg Foundation (RLS).Fields of work: Rural development, poverty reduction,establishment of social and institutional structures, BMZ promotes the activities of seven agencies that are Key aim: Fostering sustainable development andfood aid, emergency and refugee aid, education, voca- engaged in social structure assistance in India-Arbei- strengthening partnerships, e.g. in a dialogue with po-tional training, health and engagement in the area of terwohlfahrt, Education Centre of the Confederation litical parties, organisations, and sustainable promotionenvironment. of German Trade Unions, Bremen Overseas Research or establishment of democracy and civil society. and Development Agency (BORDA), Deutscher Caritas-Example: In cooperation with the Indian NGO Unnati, the verband, German Cooperative and Raiffeisen Confed- Example: Training programme for small and mediumMalteser International runs a project of strengthening eration, Institute for International Cooperation of the enterprises by KAS. Assisting the continuation of eco-community resilience and social inclusion of marginal- German Adult Education Association, and Social and nomic reforms at the state level, especially in the areas left top © EED left bottom © Misereor right © Carmen Wolf / Malteser Internationalised Dalit and tribal communities in western Rajasthan. Development Aid of the Kolping Society. of investments, state finance and good governance with a mid-term multifaceted consultancy and workshopThe Church Development Service (EED) and Fields of work: Establishing and strengthening self-help project.Misereor support programmes and projects in organisations, especially cooperatives, adult educationIndia. and sector-specific development projects and pro- The BMZ-funded Weltwärts-programme is a volunteers’ grammes. service plan created in 2008. It aims to promote inter-Fields of work: inte­ ra­ ed rural development, promotion g t cultural understanding. By mid 2010, 322 young Germanof sustainable agricultural practices, improvement of Example: BORDA is promoting a project for decentral- volunteers were placed in India for about one year,livelihood opportunities, education, health, and initia- ised watershed systems in India. The project supports mainly in NGOs dealing with health and environment-tives in community develop­ ent. m small and medium sized enterprises, institutions and related issues. communities in planning, designing and constructing effective, reliable, cost-efficient and custom-made waste- water treatment systems. 33
  18. 18. FOR A BETTER LIFE FOR A BETTER LIFEGerman Missions in Indiafund small-scale projects left top © Manpreet Romana right top © Arko Datta / ReutersThrough their grants, the German Diplomatic and Some of the projects include drinking water tubewellsConsular Missions in India provide direct financial as- for poor rural/tribal communities, electrification of ruralsistance to Indian NGOs and religious institutions for community buildings with solar energy panels, pur-implementation of small-scale projects for the benefit chase of medical equipment for orphan centre/hospitalof disadvantaged groups of society. for the poor, equipment for setting up a bakery as vo- cational training for street children, special typewritingThis programme is funded by the German Federal Min- machines for the blind, and furniture for rural schools.istry of Foreign Affairs. bottom © Ralf Hirschberger / dpa For application guidelines, log on to www.india.diplo.dePreference is given to projects in the sectors of povertyreduction, public health & sanitation improvement,income generation and basic education.The gender equality policy of the project is of particularimportance. For example, providing equal access to re-sources such as education, information, income, energy,drinking water and infrastructure, as well as tangiblyimproving women’s lives in the project area. 35
  19. 19. FORGING PARTNERSHIPS FORGING PARTNERSHIPSBRINGING multilateralorganisations togetherGermany works with the European Union, ADB, the World In terms of volumes, the World Bank (WB) is the mostBank, and UNDP in the field of development cooperation. important partner of India, with a total proposed lending of INR 698 billion ($14 billion) for 2009-2012.Multilateral efforts are an important pillar of Indo-Ger- left © Babu Babu / Reuters right top © picture alliance / Photoshotman development cooperation. WB funds focus on helping India fast-track the develop- ment of its much-needed infrastructure.Since 1976, the European Commission (EC) has been ex-tending assistance to India and is currently focussed on United Nations Development Programme (UNDP) hasthe areas of environment, public health and education. been India’s partner in development since 1951.Between 2007-10, a grant of INR 18 billion (260 million UNDP assists India through sustainable human develop-euro) was committed. For 2011-13, an amount of INR ment with priority on poverty alleviation, gender equity,14.5 billion is foreseen. women’s empowerment and environmental protection. right left © Parth Sanyal / ReutersAnother important partner: India and Germany are found- UNDP support to the Government of India for the perioding members of the Asian Development Bank (ADB). 2008-2010 has been INR 2.5 billion ($51.5 million). Most of this was spent in the area of democratic governance.From 1986 to 2009, ADB provided more than INR 998 bil-lion ($20 billion), mostly committed to the area of infra- UNDP’s focus states: Bihar, Chhattisgarh, Jharkhand,structure. It also covers coastal protection, management Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh.investment and the promotion of clean and renewableenergy. In 2011, ADB extended an INR 369 billion ($7.4billion) loan for sustainable growth. 37
  20. 20. addresses IMPRINT addresses / IMPRINT The German Ministry for Economic Cooperation and Development (BMZ) Published by: develops the guidelines and the fundamental concepts on which German development policy is based. It lays down the long term strategies for cooperation with the various Embassy of the Federal Republic of Germany actors involved and defines the rules by which these are translated into practice. 6/50G Shantipath, Chanakyapuri New Delhi 110 021, India © January, 2012 The KfW Development Bank is responsible for financial cooperation (FC). FC supports KFW Office New Delhi Phone: +91 11 44199 153 partner countries in the financing of innovative solutions important for development. Mr Oskar von Maltzan, Director email: 21, Jor Bagh, New Delhi 110003, India Editors: Bernd Dunnzlaff, Jens Urban e mail: Managing Editor: Yvonne Krause Text: Sakshi Arora Circulation: 8500 The Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DEG Office New Delhi a subsidiary of the KfW Group, provides long term finance and advice to German and Mr Armin Albert, Office Director Printed at: international private enterprises from partner countries with a view to invest in places 21, Jor Bagh, New Delhi 110003, India HT Media Ltd where no such services are available in the local market. It offers equity capital, B-2,Sector 63 mezzanine finance, loans and guarantees. e mail: Noida 201 307 U.P, India The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GIZ Office India Design: is responsible for technical cooperation (TC). It provides technical, economical and Mr Stefan Helming, Country Director organisational knowledge and skills to strengthen the capacity of individuals and 21, Jor Bagh, New Delhi 110003, India organisations. In addition to its work for the German Government, GIZ is active on Groupe Dejour, Berlin, Germany behalf of international clients (partner countries, EU Commission) trough GIZ e mail: International Service. 39