SMEs are the Priority of the P1 Billion Export Support Fund Grant
70-30 Sharing
Export development and promotion projects of small and medium-sized enterprises(SMEs) will receive the bulk or 70 percent of the P1 billion Export SupportFund (ESF) provided by the government to help the sector cope with the impactof the global financial crisis.
Philippine Exporters Confederation Inc. (PHILEXPORT) president SergioOrtiz-Luis Jr. said bigger exporters like business process outsourcing (BPO),semiconductor and electronics, gaming, leisure, tourism and constructioncompanies, will get the remaining 30 percent or P300 million of the exportfund.
Priority projects
The ESF will be released in tranches. We are expecting thefirst tranche of P200 million to be released by the Department of Budget andManagement very soon. So we are preparing initially the priority projects,” hesaid.
Ortiz-Luis said the first projects identified that would likely receive fundingsupport include the MANILA F.A.M.E. International tradeshow, overseas tradefairs and a special promotions project submitted by a group composed of theelectronics, information technology and BPO firms.
This big-ticket project is meant to promote the competitiveness of Filipinoworkers to foreign investors, buyers and partners.
Evaluation and ApprovingCommittee
The export leader also outlined the committees for thisexporters’ fund. Considering the amount of money allocated for the fund,Ortiz-Luis said there will be an ESF approving authority (EAA) composed of ninemembers – five from the export sector and four from the government.
Three technical evaluation and monitoring committees which will functionsimultaneously will also be established. One committee will monitor and examinethe project proposals of the big exporters applying for P300 million, while twoothers for the P700-million grant.
Ortiz-Luis said each committee will have six members - three each from theexport sector and the government.
Moreover, an industry champion will be designated as an ex-officio member ofthe committee for a particular project, he added.
Two Components
Ortiz-Luis said the ESF has two components: export development and exportpromotions.
Export development activities eligible for the grant are capacity building;establishment of common service facilities; product design, development andinnovation; market/competitive intelligence; and benchmarking and enhancementof export competitiveness.
Outbound and business matching, trade fairs and exhibitions, electronicmarketing, export advertising, non-traditional marketing communications andcountry image building and branding projects aimed to market Philippineproducts abroad also qualify, he added.
Ortiz-Luis stressed that project proposals that have been submitted earlier forpurposes of this new fund will have to be re-submitted or re-crafted to fit the70:30 guideline.
“We are starting from scratch here and so proponents have to re-submitproposals,” he advised. “The rule of thumb is that a minimum of 20 percent (ofproject cost) must be counterpart (fund of exporters),” he related. –Danielle Venz, PHILEXPORT News and Features
