2. Background There are fundamental differences in approach between the NIPP and CSDP.
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5. A key caveat - price premiums Price premiums could crowd-out investment amongst SOE’s customers while encouraging unsustainable investment amongst SOE suppliers. The objective must be to build the competitiveness (in terms of quality, cost and responsiveness) of local supply industries, not to pursue local content at all costs. Price premiums paid to suppliers for local content Increase in prices charged by SOEs for services Crowding out of investment in customer industries – negates goal of increasing growth and job creation increased costs
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9. SDPs and procurement strategies SDP Procurement Strategies Whole expenditure programme Scope Project / commodity specific Level of detail of supply market and industry analysis Medium High Level of certainty of choice of interventions Low High Purpose Provide long-term view of development of supply industries Provide strategy for sourcing and procuring specific items The SDP provides a long-term vision for the development of the SOE’s local supply base, and an over-arching framework for specific procurement strategies. Nature of process Confidential commercial Public