Explanatory text on success criteria

The success criteria imply that each project must be evaluated on the basis of four general categories under the following headlines:

• Development impact – e.g. job creation and transfer of knowledge.
• Partner mobilisation – includes measuring IFU’s contribution to mobilisation of Danish partners (additionality).
• Sustainability and profitability of projects – where, for example, the viability of the projects is assessed.
• Efficiency and effectiveness of Fund operation.

A system has been developed, which endeavours to quantify each of the four categories making up the success criteria, and make it possible to aggregate them all together into one “success” figure for each project.

Previously, each of the four elements carried identical weight. The change of focus in 2005 implies that the weight of development impact has been increased to 50%, thus reducing the weight of the remaining three elements: partner mobilisation (to 20%), sustainability and profitability of projects (to 20%) and efficiency and effectiveness of Fund operation (to 10%).

The Environmental Investment Ratio, which is a part of the success criteria, is an expression of the percentage of the Fund’s investment in a project which can be considered an investment in improved environment or Occupational Health and Safety (OHS).

For projects in the fields of:

• environmental operations, such as waste-water treatment plants, etc.,
• production of environmental equipment,
• rehabilitation of existing plants with considerable negative environmental/OHS impacts, or
• renewable energy,

the Environmental Investment Ratio is 100%.

For other projects, the range of the Environmental Investment Ratio for a greenfield project fulfilling Danish or relevant international environmental/OHS standards in all essential areas is 15-30%. Rehabilitation of projects to international state-of-the-art standard gives a range for the Environmental Investment Ratio of 20-40%.

Furthermore, projects can obtain increases of 5-15% for environmental/OHS certifications (ISO 14001, EMAS, OHSAS 18001, FSC or similar), voluntary EIA (Environmental Impacts Assessment), or ecological production.

Success Criteria Environmental Investment and Risk Profile