Report (Part 6): Sustainable Development Convention 2002

IECN: Environment Coordination

Time: 31 October 2002, 14:30-15:30 Location: Room B Chair: Eric Gerelle - IBEX International Group Presenters/ Participants: Daniel Wild - Ernst Basler & Partners
Enga Luye - Belair
Permille Budtz SOFI - Swiss Organization for Facilitating Investments
Frederic de Senarlens - IECN Project Leader Reporter: Nancy Troxler (ICVolunteers) Languages: English Key words:

Presented by M. de Senarlens. "The IECN offers innovative support to environmental companies, helping them to overcome barriers to market penetration in developing countries and economies in transition." It is essentially a facilitator and business development service for small and medium sized businesses that seek to expand into transitional economies.

Ms. Budtz detailed the efforts of her office to match up businesses with clients. It was repeatedly stressed that while SOFI and IECN had some overlap of functions, IECN viewed itself as having the ability to go beyond the facilitator role of SOFI and help a business with its development plans - from inception to execution - for a particular project in a particular country.

The remaining panelists described problems and obstacles encountered when operating in transitional economies.

Mr. Luye, without discussing his own company's particular issues, said the greatest challenge for the small business in developing economies was ensuring that the production was 'sustainable'. In other words, that the entire environmentally friendly process, with use of by-products, could be maintained.

Mr. Wild's firm is concerned with civil engineering projects covering a broad range of areas (energy, environment, infrastructure) focused primarily, but not exclusively, in Eastern Europe. He cited several challenges to operating effectively from the donor's, the supplier's and the client's viewpoint.

The Supplier:

1. frequently there is a missing 'know-how' on the part of the end user: you need to educate/teach the consumer the value of the product.

2. The local contribution of labor and infrastructure to support the project may not be delivered as anticipated. A change of government, for example, could alter the authority to build the road that leads to the factory.

The Donor:

1. the bidding process: if the supplier is chosen by the donor, it could run into resistance from the host country who would prefer to see its own suppliers used. If, however, the host country's suppliers are used, the client has no control over the bidding process which could be vulnerable to corruption and which could ultimately affect the quality of materials provided.

2. There are always challenges in coordination of the donor activities in the country. There are frequently many donors and trying to pull together their efforts to avoid repetition is very difficult.

3. Matching the project timing with the financial timing is difficult. Money can run out before the project is finished.