DHI: Export support through Feasibility study
The subsidy program DHI (Demonstration projects, Feasibility study, Investment preparation study) is aims at supporting Dutch companies in realizing the international ambitions. These ambitions can be export or investments in foreign markets; developing countries, emerging markets and developed countries. For developing countries a positive impact on sustainable developments is a condition.
The DHI program comprises 3 modules, 1 focused on investments and 2 focused on export support:
- Investment preparation study; focused on the preparation of investments by Dutch SME in foreign markets, stand-alone or in joint venture.
- Feasibility study; focused on the support of export of a Dutch SME by supporting the potential client in executing a feasibility study related to the potential export;
- Demonstration project; focused on support of export of a Dutch SME by demonstrating a for the target country new technology.
The general characteristics of the DHI program, applicable for all modules, can be found in "DHI: Demonstration project- Feasibility study - Investment preparation study". Among others the following information can be found:
- DHI is a tender program;
- Only Dutch SME's can apply;
- The maximum subsidy;
- For which countries can be applied;
- Which conditions need to be fulfilled;
- How an application can be submitted;
The specific information of modules focusing on export support are summarized hereafter.
Feasibility study (2)
A potential client in one of the DHI countries submits an Letter of Intent that he intents to invest in the Dutch technology, capital goods or services of a Dutch exporting company. The potential client first wants to investigate whether the investment is feasible from technical and financial point of view.
A feasibility study answers this question, making available a business plan or project plan for the investment. Based on this the potential client can decide on the investment. With the feasibility study the possibility for exporting is increased and the potential client is informed about the technical and financial feasibility and has a plan for implementation.
Technical and financial feasibility
- In case of a financial feasibility study, the questions are answered whether the client can earn back the investment within the desired term en whether the investment can be financed.
- In case of a technical feasibility study, the questions are answered how the project should be implemented, which specifications, which project design fits best in the local circumstances and whether the Dutch technology can be applied.
The final result is a project plan or a business plan.
No market research
The feasibility study is focused on a concrete project in one of the DHI countries. At the start of the feasibility study, the information about the market is available. Additionally the general set up of the project, the location, the exploitation, financing and local impact of the investment is clear at the start of the project. The DHI feasibility is therefor limited to technical feasibility and/or financial feasibility.
Difference between feasibility study and Investment preparation study?
In case of a feasibility study, the potential client for technology, capital goods or services the potential client in one of the DHI countries takes decision to invest or not. In case of an investment preparation study, the Dutch SME takes the decision whether to invest in one of the DHI countries. In case of an investment in a developing country, the project needs to contribute to sustainable local developments.
Duration of the project
The maximum duration of the project is 2 years. Depending on the complexity of the project, in general the duration of such a feasibility study is not more than 6 months.
The maximum subsidy is € 100.000, 50% of the eligible project costs. The potential export should be realized within 3 years and should be minimum 10 times the subsidy amount. Only proven technologies, capital goods and services can be subject of the feasibility study.
In case you have a concrete plan for a feasibility study complying with criteria , than you can apply during one of the tenders. You start with the elaboration and submission of an Quick scan which is send to RVO. .
Agriment has extensive experience in preparing successfull applications for subsidy for similar programs. Additionally, Agriment has extensive experience in execution feasibility studies and preparing business plans. With our contribution in terms of project coordination and management, we ensure that the granted subsidy is received based on the real time spent and costs made during the project.
In case you have doubts whether your project could apply successfully for subsidy, or you want support in formulating the Quick scan and application and/or execution of the project, please contact us.