Download CORPEI: A Public Private Partnership that works

CORPEI
A successful public-private
partnership for a sustainable
management of International
Cooperation projects”
November 7, 2006
Structure of presentation
1) Background
2) Most relevant provisions of the Law for CORPEI
3) Redeemable Contributions
4) International Cooperation’
5) How we manage International Cooperation projects
6) Effective donor hunting
7) Final comments
Background 1/3
• Since 1992 the public and private sector started a
negotiation to create a Trade and Investment Law that
would help insert Ecuador in a Globalized Economy.
• To implement that: a World Bank project with the Trade
Ministry contracted TDI as consultants. They
considered best practices of TPO’s and IPA’s
worldwide
Background 2/3
• In 1997 the “Trade and Investment Law” (LEXI) of
Ecuador was sanctioned by the President. It created
CORPEI
• There was no previous experience on those fields of
expertise in Ecuador: we are 8 ½ years young (first
Board meeting – 21 Nov 97, but operations really started
in May 98)
Background 3/3
• With the creation of CORPEI, its first and most
important cooperation project was implemented as part
of this new public – private partnership:
– A WB soft loan of 11.5 mm usd to implement a 3 year
Matching Grants project, managed by CORPEI (Through a
bidding process we contracted expertise of TDI)
– TDI transferred the know-how on how to manage Matching
Grants to CORPEI (now applied in Expoecuador)
– Since then, CORPEI positioned itself as a reliable partner
and operator of cooperation projects
Most relevant provisions of the
LEXI for CORPEI 1/5
• Private Non-for-Profit Organization
• Official Exports and Investment Promotion
Organization of Ecuador
–
–
–
–
Increase and Diversify Exports
Attract FDI to all exporting sectors
Promote Ecuador’s Image worldwide
Advocate for Competitiveness in Ecuador
• 35 (1998) to 90 people (2006) – due to needs of private
sector
Most relevant provisions of the
LEXI for CORPEI 2/5
• Governing Bodies: General Assembly and Board of
Directors
• Both of them are made of a minority of public (4) and a
majority of private (9) sector representatives with vote.
Plus, a representative of each of the most important
exporting sectors (9) with voice.
– (So far decisions have been made via consensus)
Most relevant provisions of the
LEXI for CORPEI 4/5
• Transparency and Accountability to our General
Assembly, Board of Directors, and all international and
local partners
– External Auditors - KPMG
– Internal Auditor – PWC
– Accounting – Hansen Holm a firm associated with the
“Morison International Group”
Most relevant provisions of the
LEXI for CORPEI 5/5
• Stability and professionalism in the institution:
– Executive President - 4 year term - renewable
indefinitely, and dependent only on efficiency and
performance. No “pressure” from either sector
(beginning of my 3rd term – 4 Presidents and 8 to13
Ministers)
• Resources that finance CORPEI:
– A different and Innovative scheme (Redeemable
Contributions)
– Non reimbursable contributions of International
Organizations or friendly Governments
Redeemable Contributions 1/3
• 1.50 per 1000 FOB Private Exports (57%)
• 0.50 per 1000 FOB Petroleum Exports (24%)
• 0.25 per 1000 FOB Imports (19%)
• A positive incentive to increase exports
• Collected through Customs and transferred
daily to our accounts (does not go through
the national budget)
Redeemable Contributions 2/3
• 91% private sector
• 9% public sector
• Certificates redeemable in USD in 10 years (at no
interest)
• In a Non-Dollarized economy (like when CORPEI was
created) scheme is more convenient for those who pay
these contributions (specially with high inflation rates and
currency devaluation)
Redeemable Contributions 3/3
• To guarantee the reimbursement of the Redeemable
Contribution in 10 years, we created a Special Fund
that has grown, from 33% in 1999 to 43% in 2006, of all
of our income (21mm usd by end 2006)
• Yearly income has grown from 4,8 in 1999 to 10,5 mm
usd in 2006
• 6 mm usd for operations in 2006 (insufficient resources
to fulfill our mandate!)
International Cooperation
Projects 1/2
• Because of the need to fulfill our mandate, since 1998
we have searched for and managed, successfully,
many cooperation projects
Resources allocated to date
CORPEI
Private sector
Public sector
International Cooperation
Total
CORPEI’s resources
Multiplying factor
8,101,388
13,687,282
1,063,667
26,500,354
49,352,690
14.69%
6.81
International Cooperation
Projects 2/2
• Since 1999 we have duplicated the yearly budget of
CORPEI thanks to the cooperation projects we manage.
• We have many partners. Some of our main ones are:
CBI / SNV / GTZ / CAF / UNIDO / UNCTAD / ITC / OAS
/ Dutch Embassy / IICA / WB
• We see IADB as the most important Strategic Partner in
our future.
• Non of that is by accident. We have worked hard for it
How we manage International
Cooperation Projects 1/3
• We allocate the needed resources (cash and kind)
• Depending on size, project is assigned to a member of
our staff or to a special unit
– WB project (special unit - 22 mm usd)
– European Union project (special unit - 18 mm usd)
– IADB projects (special unit / staff members)
• We involve in each project as many partners as we can
(local and international / public and private)
How we manage International
Cooperation Projects 2/3
• The basis for a multi-partner project is that each one
must add value to the process and that we all share
costs, objectives and institutional values.
• We try to acts as coordinators in all projects with more
than one donor
• We do not allow political influences or private sector
pressures in the institution. We are recognized as a non
political and professional institution
• We document all procedures for future replication
(CORPEI is ISO 9001-2000 certified since 2003)
How we manage International
Cooperation Projects 3/3
• We open individual accounts for each project
• We are permanently monitoring the project and acting
on deviations
• All projects are “demand driven” by private sector
needs
• We have full Ownership of projects
Effective Donor hunting 1/4
• Look for probable donors directly (in country or
internationally) using Ministries and Embassies (yours
and theirs)
• Find and meet the donors criteria. Each donor is
different
• Your new partner’s prestige is be very important for
your future partners.
• Look for a way to “open a door” with donors and work
hard to stay in
• Participate in international forums – networking
Effective Donor hunting 2/4
• Guarantee the sustainability of project after program is
finished
• Propose integrated programs, with a medium or long
term span, instead of individual short term activities.
• State a clear and reachable goal for a result oriented
program
• Focalize and Prioritize. Normally you can’t do all the
things you want in an efficient way
• Do not exceed your capacities
Effective Donor hunting 3/4
• Be prepared to allocate resources (cost sharing and
infrastructure needed)
• Demonstrate you have management quality aside from
needed human resources
• Show Transparency in financial procedures
• Be accountable for all your actions
• Transfer of Know-How must be a priority for you
Effective Donor hunting 4/4
• Desirable to create a good public-private partnership
(if possible)
• Demonstrate Institutionalism
• Allocate resources for donor hunting
• Be patient but be persistent (nothing good comes easy)
• Build your institutions prestige by doing a better job
each time you manage a cooperation project
Final Comments
• CORPEI's example is a replicable one. You only need to
create a good national public – private partnership and
have the will to replicate it (they say “when there is a
will…….”)
• We’ll be glad to share our experiences with any
institution that needs it, specially if you are working with
IDB
• If we have done it, so can you, therefore It’s up to you
to make it happen. Act as NIKE suggests…. JUST DO
IT