Objective
The objective of the PESP is to enhance the chances of Netherlands firms to secure export orders and to promote international cooperation. Dutch companies and consortiums can submit proposals for activities leading up to export transactions.

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When a project which may lead to a broad-based export of capital goods and services from the Netherlands, is envisaged, a proposal could be submitted within the framework of the PESP. The project still has to be in a preliminary phase, however.

PESP provides financial support primarily for feasibility studies, and investment preparation studies. It is also possible to receive a reimbursement for activities in the project identification and foreign expert assessment spheres, provided this is in the preliminary phase of export.

The studies can be conducted in any economic sector. Whether the study concerns a dredging or waste disposal project, a more efficient use of district heating, the expansion of a dairy factory, the introduction of liquid petroleum gas (LPG) or the fitting out of a university, as long as it yields export for a number of Netherlands firms, anything is in principle allowed within PESP. PESP is applicable for projects and not for market research or acquisition activities of individual companies.

PESP projects must be directed towards emerging markets. All countries in Asia (excluding Japan), Middle- and Eastern Europe, Africa, Latin America and the Middle East are regarded as emerging markets. In recent years, most PESP studies took place in Middle- and Eastern Europe and in Asia.

Support
The PESP support can amount to two-thirds of the study costs up to a maximum of around € 137.000. This means that other parties must carry at least a third of the costs. Hence the total cost of the study can amount to around € 210.000. Settlement takes place on the basis of a previously prepared work plan, including a preliminary budget, and a final report and final settlement accompanied by an auditor’s report.

The work plan must be verifiable. This means, that it should specify what activity will be executed where, by whom and for what purpose. A phased plan of action and a detailed budget must also be provided.

Conditions
To qualify for PESP support in the preliminary phase, the study must meet the following conditions:
• PESP-studies should be submitted by a consortium, in which (minimally) two exporting or investing companies will participate, including contributing financially to the study.
• One of the companies will act as spokesman/secretary for the consortium. The consortium can, if so desired, be complemented by a consultancy agency.
• In principle an exporting or investing company can be part of a consortium only twice a year.
• There is a counterpart in the recipient country who wishes to cooperate with the Netherlands consortium on the project (and may be willing to bear some of the study costs).
• A prospect on how the implementation phase will be financed, should the PESP study prove feasible, is available. PESP studies regularly serve as ‘bankable’ reports.
• The project that can be implemented after the PESP study must in any case meet the following conditions:
- The project leads to broad-based direct export of capital goods and/or services from the Netherlands. The value of the intended export should be at least ten times the PESP contribution.
- The project increases awareness of what Netherlands business and industry can offer in the country in question.
- PESP is not intended as an acquisition instrument for firms which simply want to sell their consumer products on a faraway market.

For more information visit:  www.evd.nl/pesp