Www.consultingireland.org Opportunities for Irish Consultants in International Markets Séamus McCann, ASTEC Global Consultancy and Chairman ConsultingIreland.

www.consultingireland.org

Opportunities for Irish Consultants in International Markets

Séamus McCann, ASTEC Global Consultancy and Chairman ConsultingIreland


Objective• Provide practical support to companies targeting the

Emerging Markets • Focused primarily on the IFIs e.g. World Bank, EC – ‘In

the developing markets particularly, Public Sector activity is a prelude to Private Sector involvement’

• Find Irish partners for projects – niche areas• Identify international opportunities – Services,

Supplies and Works – multi-facet approach • Practical Seminars and Training – Cork, Belfast etc.• International promotion of the portal and its

members


International Financing International Financing Institutions (IFIs)Institutions (IFIs)

• European CommissionEuropean Commission• EIBEIB• EBRDEBRD• World BankWorld Bank• Asian Development BankAsian Development Bank • African Development Bank African Development Bank • Inter-American Development BankInter-American Development Bank • UNDPUNDP

Bi-Lateral Aid ($126bn per annum) – USAID, DFID, Bi-Lateral Aid ($126bn per annum) – USAID, DFID, SIDA, DANIDA, GIZ, Irish Aid etc.SIDA, DANIDA, GIZ, Irish Aid etc.


EC Funded OpportunitiesEC Funded Opportunities• €975bn available for 2007-2013

• 1. Internal programmes – 1. Community Programmes – FP7, LLL,TEN– 2. Structural and Cohesion Fund - €347bn

• 2. External Assistance Programmes – 2007-2013– IPA - €12bn – Balkans, Turkey– EPNI - €13bn – ME, MEDA, Russia– DCI - €12bn – Asia, Latin America, ‘Stans’– EDF - €24bn - Africa


Other IFIsOther IFIs• EIB (the EU Bank) - Luxembourg

– Approved close to €60bn in 2008

• EBRD – Europe and Central Asia– €8bn pa investments – Invest between €5-230m in a project

• World Bank– IBRD – annual funding $10-15bn pa– IDA - $14bn pa – 50% in Africa

• Asian Development Bank– Loans - $10.5bn pa (Private sector $1.5bn)


Leading IFI Companies - Ireland Company / Organisation Location Total

contracts

1. ASTEC Global Consultancy Ltd. Ireland 1222. Project Management Group Ireland 62

3.GDSI Ltd. (Galway Development Service

International) Ireland 27

4. Lambard Management Consultants (LMC) Ltd. Ireland 16

5. Trade Development Institute (TDI Group) Ireland 136. Institute of Public Administration (IPA) Ireland 117. International Development Ireland Ltd. (IDI) Ireland 11

8.TMS International (Technical and Management

Services International ) Ireland 11

9. ESB International Ireland 1110. Finance Treasury Investment (FTI) Ireland 7


Reasons to target IFI projectsReasons to target IFI projects

• Transferable ‘Relevant Home experience’Transferable ‘Relevant Home experience’

• Use of Short-listings Use of Short-listings

• Advances up to 60% Advances up to 60%

• Payments secure Payments secure

• IFI work – IFI work – ‘Recession-proof’‘Recession-proof’

• Problems in Croatia? – transfer instead to Serbia, Problems in Croatia? – transfer instead to Serbia, Macedonia, Kosovo or another regionMacedonia, Kosovo or another region


Strengths

• Similarities with other Beneficiary countries – e.g. Similarities with other Beneficiary countries – e.g. size, historical eventssize, historical events

• Positive attitude to the Irish – non colonialPositive attitude to the Irish – non colonial

• English Language – English Language – particularly for writing reportsparticularly for writing reports

• Availability of experienced Availability of experienced Irish consultantsIrish consultants

• Structural Funds experienceStructural Funds experience


WeaknessesWeaknesses

• Limited IFI experience – Limited IFI experience – ‘Celtic Tiger’‘Celtic Tiger’• Lack of references – Lack of references – 3 year maximum for EC3 year maximum for EC• High fee rates and costsHigh fee rates and costs• Tracking opportunitiesTracking opportunities• Limited knowledge of local partners, local rates and Limited knowledge of local partners, local rates and

main international competitorsmain international competitors• Resistance to communicate with other Irish firmsResistance to communicate with other Irish firms• Smaller sized companies generallySmaller sized companies generally• Distance to marketDistance to market• Ireland down the ‘pecking order’ in 2010Ireland down the ‘pecking order’ in 2010• Ireland’s recent ‘Bad Press’Ireland’s recent ‘Bad Press’• Too much focus on FP7 – more funds in External AidToo much focus on FP7 – more funds in External Aid


Opportunities

• e-tenders x 140 (+ IFI funding) • IFI Funding (increasing year on year and numerous

available tenders on a daily basis)

• Competing on equal footing

• Less competition – locals generally need International partners for IFI projects

• English Language


ThreatsThreats• Increased competition – Polish (ICT/Telecoms), Czechs Increased competition – Polish (ICT/Telecoms), Czechs

(Customs), Romanians (Education)(Customs), Romanians (Education)

• Competitive rates from locals as well as ‘old member Competitive rates from locals as well as ‘old member states’ e.g. UK, Italy, Greecestates’ e.g. UK, Italy, Greece

• Use of FrameworksUse of Frameworks (restricted tenders)(restricted tenders) by EC, EIB – by EC, EIB – limiting open tenderslimiting open tenders

• Lack of Irish Aid – DANIDA, SIDA, USAID, DFIDLack of Irish Aid – DANIDA, SIDA, USAID, DFID

• Other country governments/agencies very proactiveOther country governments/agencies very proactive


Monitoring OpportunitiesMonitoring Opportunities

• IFI web-sites – IFI web-sites – free but cumbersomefree but cumbersome• Tender services – e.g. TendersInfo, EuropeAid tenders Tender services – e.g. TendersInfo, EuropeAid tenders

focus on different regions and IFIsfocus on different regions and IFIs• Country websites – local partner can translateCountry websites – local partner can translate• Local Partners – Local Partners – particularly those with ‘contacts’particularly those with ‘contacts’• International Partners – International Partners – different sector partnersdifferent sector partners• Country visitsCountry visits• Visit IFI HQ and regional offices - Visit IFI HQ and regional offices - Brussels, Washington,

London, Luxembourg, Manila• In-country Ministries – probably best optionIn-country Ministries – probably best option• Consulting Ireland portal/database


Market ApproachMarket Approach

• Target region / country – Balkans, Turkey – Target region / country – Balkans, Turkey – ‘follow ‘follow the money’the money’

• Target sector – e.g. ICT, Border Management, Target sector – e.g. ICT, Border Management, Finance, AgricultureFinance, Agriculture

• Determine opportunities – Which IFIDetermine opportunities – Which IFI

• Visit target country – Beneficiary, Funding Agency Visit target country – Beneficiary, Funding Agency and / or In-country IFIsand / or In-country IFIs

• Establish local partnerEstablish local partner

• Co-operate with other expert firmsCo-operate with other expert firms

• Bid to show interestBid to show interest


Consortium approach – helps Consortium approach – helps create Scalecreate Scale• Size of ProjectSize of Project

• Tender requirements – expertise, sectors, local Tender requirements – expertise, sectors, local inputinput

• Reference value – often minimum value of Reference value – often minimum value of reference – reference – EC does not help SMEs qualifyEC does not help SMEs qualify

• Country experienceCountry experience

• IFI experience – may need partner for thisIFI experience – may need partner for this

• Competitor strengthCompetitor strength


Partners - BenefitsPartners - Benefits

• Partner Companies Partner Companies cover niche subjectscover niche subjects

• Use of this network for business development Use of this network for business development

• Provides better customer care throughProvides better customer care through

– wide range of expertise,wide range of expertise,

– geographic coverage andgeographic coverage and

– specialised attentionspecialised attention

• Public Sector contacts – local company and large Public Sector contacts – local company and large

multinationalmultinational


Way ForwardWay Forward

• Develop Business Plan – Policy and StrategyDevelop Business Plan – Policy and Strategy

• Obtain Board/Director level supportObtain Board/Director level support

• Long term strategy - need to show commitmentLong term strategy - need to show commitment

• Determine region and availability of FundsDetermine region and availability of Funds

• Visit relevant IFIs and Clients to get better Visit relevant IFIs and Clients to get better understanding - understanding - our strategy was never to bid unless our strategy was never to bid unless first visited the clientfirst visited the client

• Visit country / region – discuss potential tenders and Visit country / region – discuss potential tenders and opportunitiesopportunities


Way Forward (2)Way Forward (2)

• Develop References – first question you will be Develop References – first question you will be asked by a potential Partner.asked by a potential Partner.

• Look for Local and International partnersLook for Local and International partners

• Engage with other firms/consultantsEngage with other firms/consultants

• Junior consortia member initiallyJunior consortia member initially

• Submit a number of EOIs and Tenders – to show Submit a number of EOIs and Tenders – to show commitmentcommitment

• Do not give up - Do not give up - Review reasons for lossesReview reasons for losses


Contact Details

ASTECASTEC Global ConsultancyGlobal Consultancy25 Merrion Square25 Merrion SquareDublin 2Dublin 2Republic of Ireland Republic of Ireland

Telephone: +353 1 6618950Telephone: +353 1 6618950Fax: +353 1 6619112Fax: +353 1 6619112Web site: www.astecglobal.com Web site: www.astecglobal.com E-mail:E-mail: [email protected]

Thank You

Www.consultingireland.org Opportunities for Irish Consultants in International Markets Séamus McCann, ASTEC Global Consultancy and Chairman ConsultingIreland.

Documents

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bn asia

bn africa slide

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bn pa investments

bn pa private sector