8 have been successful under ECF





Pacific Islands business projects are demonstrating that they can strongly compete against those from larger Asian economies for Australian Government development funding.
Eight projects have been awarded nearly $4 million under the Australian Government’s Enterprise Challenge Fund (ECF) for South East Asia and the Pacific.
The $20.5 million pilot programme aims to strengthen the private sector, encourage economic growth and reduce poverty in the Asia-Pacific region.
Funding is provided to commercially sustainable projects that directly benefit the poor through improved incomes, access to vital goods and services or new jobs.
Pacific Islands projects have received almost 60 percent of the total value of the grants over two bidding rounds. This includes seven of the ten grants awarded under the recently-completed second round, and one of two grants from the first round last year.
The successful Pacific Islands business projects are:
• Carnival Australia—Vanuatu
• C-Corp—Solomon Islands
• Fresh Change/Volcanic Earth—Vanuatu
• Future Forests—Fiji
• Mainland Holdings—Papua New Guinea
• Marine Consultancy Services—Vanuatu
• Nature’s Way—Fiji
• Puritau/Paradise Spices—Papua New Guinea
“These results are a credit to the private sectors in the Pacific countries in which the Enterprise Challenge Fund operates—Fiji, Papua New Guinea, Solomon Islands and Vanuatu,” ECF Director, John Hardin said.
“Competitive bids are assessed by independent panels to ensure the projects satisfy the ECF criteria in terms of commercial sustainability and the pro-poor benefits.
“There are no country quotas and the successful bidders should be proud of their achievements.”
The Enterprise Challenge Fund delivers grants of between A$100,000 and A$1.5 million to businesses that are prepared to at least match the grant.
The fund operates in nine countries including Cambodia, Laos, East Timor, southern Philippines, Papua New Guinea, selected provinces in Indonesia, Fiji, Solomon Islands and Vanuatu.
Hardin said the Enterprise Challenge Fund is a new approach to aid delivery and that AusAID should be congratulated for their initiative in trialling the programme.
“I believe we have demonstrated the demand for this type of risk-sharing support for socially beneficial commercial projects, particularly in the Pacific Islands.”
Hardin has been working on business development projects in the Pacific Islands for more than 25 years and knows from practical experience that one of the best ways to help small businesses is to provide them with access to a reliable market.
“Once this has been secured, other technical and financial services, including microfinance can be provided with the maximum impact,” says Hardin.
While the fund is not targeted at smaller businesses, most ECF-supported business projects will provide real benefits to micro and small businesses by providing a fair and reliable market for their output.
“Many projects also help to improve the overall conditions for doing business in the region and this will have positive outcomes for small businesses,” said Hardin.
“When I see ECF projects providing this access to markets and stimulating other business support services, I feel confident about the ongoing benefits to the involved communities.”
Hardin says an important step in the process is to monitor the impact of the business projects.
“We will assess the practical outcomes and have comprehensive monitoring and evaluation processes to capture the benefits to communities, the private sector and national economies”.
“The calibre of the grant bids has improved with each bidding round. It is not easy to secure an ECF grant and bidders need to compete, just like they have to compete for business in the market”.
ECF assessment panels have considered concept notes on projects for bidding round three.
Bidders that are invited to the next stage of round three must submit applications containing detailed business case, financial projections and clear evidence of the direct and indirect benefits of the project to communities and the overall business environment.
“A number of Pacific business projects appear to be quite strong contenders for a grant, but it is ultimately up to the assessment panels and we will know the outcomes of the applications by mid-year,” says Hardin.
The third bidding round will be the last for the pilot programme, as all funds remaining from the initial grant pool of $A14.5 million are expected to be allocated.
As a pilot programme, a mid-term review, scheduled for late 2009 will evaluate the efficiency and effectiveness of the model and the future of ECF.
The Enterprise Challenge Fund is managed by Coffey International Development.