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Would the plant be possible without KWS money?

In theory, yes – but there are two important practical aspects. First, the more intensively foreign private and public investors are involved in a project, the easier it is for local financiers to invest. Foreign participation is a kind of umbrella against possible bureaucratic tyranny, which local people apparently still fear. The second point is that sugar beet is largely a forgotten crop in Afghanistan today and needs to be reintroduced. For this purpose, the country needs a professional partner with the requisite agricultural expertise. So our role as a technology partner is probably even more important than our role as a financial backer. What relevance did public sponsorship of the project have for your decision to invest? The Afghan government is important because we need its support. Equally important, though, is the money generously contributed to this significant development project by the German government. Would you have got involved in the project without public participation? Most probably not. When will the factory start operating? In autumn this year. Initially, we’ll be running a small-scale trial operation. When a factory has been idle for 15 years, you never known what kind of problems may occur. We basically face two risks. First: we could have a factory ready for operation by the autumn but no feedstock. The far bigger risk, however, is that we have feedstock but no operational processing plant. That would be an economic disaster – both for the factory and for the farmers. Therefore, we plan to start reintroducing commercial sugar cultivation on a fairly small scale and use the harvested beet to test-run the processing plant this year. Full-scale operation will start with the 2006 harvest. How many jobs will the factory provide in full operation? The factory itself will employ around 125 people. But thousands more jobs will be created in agriculture, transport and services – for example, for skilled labour. What has been the reaction from farmers? Basically, there is keen interest in the reintroduction of commercial sugar-beet farming. The sugar factory offers farmers a chance to grow a new commercial crop under contract on terms that are fixed before the seed goes into the ground. And the beet price is calculated high enough to guarantee a good income – by commercial crop standards – to farmers using the modern farming techniques we recommend. Sugar beet will not be an alternative for opium poppy growers, though. A farmer can earn twelve times more by cultivating opium rather than wheat. No other commercial crop can compete with opium. How are you going to get farmers to grow sugar beet then? This year, we are going to create numerous demonstration fields in the project area to give farmers an idea of the kind of yields they can expect. Lots of older farmers are unfamiliar with modern farming, so they cannot imagine how to achieve the yields we tell them are possible. What is more, we offer farmers credit for agricultural inputs such as seed, fertiliser and pesticides as well as for services such as seed-bed preparation, sowing and field clearance – plus advice on all aspects of production and techniques. There is a learning process ahead, but I am convinced we will get the acreage we need to meet the factory’s feedstock requirements.

ANDS-Private Sector Development Strategy has a paragraph on PPP which states “Public private partnerships (PPPs) are a potentially useful means of addressing infrastructure and other constraints and drawing on the skills resources and efficiency of the private sector …. Currently.Questions by Tillmann Elliesen.” The New Baghlan Sugar Factory was selected as a case study by the research team to demonstrate a successful example of a PPP in Afghanistan. Case Study 3: New Baghlan Sugar Company Publication date: 1 Sep 2009 Organization: Peace Security and Development Network (PSDN) In Afghanistan private sector development is channelled through the Ministry of Commerce and Economy. the Ministry of Finance. Security and Development‟. not all of the shareholders agreed to cooperate with the case study. Peace Security and Development Network 2009 This publication is an outcome of the in 2008 established „Network for Peace. . The Network aims to support and encourage the sharing of expertise and cooperation between the different Dutch sectors and organisations involved in fragile states.that NSBC is probably not a successful example of public and private sectors working together. None of these currently has a strategy for PPP development. however. With this in mind. the NBSC was in a crucial stage of its existence. At the time of the case study. Through intensive research it can be concluded. the factory is not operational and the partnership is falling apart. the Ministry of Mines and Industries and DA Afghanistan Bank.