CIDA Project in Dominica Opens IFI Doors for Quebec Engineering Firm
There's no question that carrying out a project for the Canadian International Development Agency (CIDA) can give a Canadian company the experience and exposure it needs to go on to succeed in the IFI market. That was certainly the case for Quebec engineering firm Dessau-Soprin Inc. when it first got into international work in the early 1970s. But the company's current and ongoing involvement in a long-term CIDA bilateral project in Dominica has itself given Dessau-Soprin direct contact, and opportunities, with two international financial institutions - the Caribbean Development Bank and the Kuwait Fund for Arab Economic Development - both of which are contributing a portion of the $41-million water and wastewater project.
Established in 1957, Dessau-Soprin specializes in the fields of transportation, building engineering, water, wastewater, electrical energy, environment, materials and quality assurance, and urban development. Constantly mindful of the economic, social and cultural settings in which it offers its consulting services, the 1,000-employee firm is active in 30 countries around the world, particularly in Latin America, Asia, Africa and the Caribbean. Dessau-Soprin has carried out projects funded by the World Bank, Asian Development Bank, African Development Bank, and Caribbean Development Bank - as well as CIDA.
CIDA provides leg up
In fact, as Joseph Redhead, Vice-president for the Caribbean Region, explains, it was CIDA-funded projects carried out in Africa that gave the company its leg up into the international market. " I would say that we got a good international start from having carried out CIDA projects in Africa," says Redhead. " I would recommend that other companies get that first CIDA project under their belt. It can help them develop an understanding of the market and reduce the risks associated with marketing services outside Canada. And the agency's officials are a source of sound knowledge and advice, especially on important social and environmental issues, which can serve Canadian firms well, not only on CIDA projects but on other IFI-supported initiatives as well."
The company has continued to undertake CIDA projects, including the one in Dominica, which began in 1988 and is being carried out in association with fellow Quebec engineering company Groupe Conseil Saguenay. Now in the third stage of a program to improve water supply and sanitation services on the island, the joint venture won the first of several multi-million-dollar contracts when it was engaged by CIDA to assist the Government of the Commonwealth of Dominica to privatize the then-publicly-owned water company and to train Dominicans to take over the management of the new company.
Once the training and privatization had been accomplished (in 1990), Dessau-Soprin and its partner continued in an advisory role, providing engineering, technical, management, and contract administration expertise to the new Dominica Water and Sewerage Company Limited (DOWASCO) as it expanded water supply systems in several communities. " We were awarded this work as an extension of our previous contract because we met criteria for satisfactory performance on several fronts," explains Redhead.
The latest phase of the CIDA contract, which is now valued at just over $7 million for services, training and procurement of necessary equipment and goods, is for the rehabilitation of the over-70-year-old sewerage infrastructure of the capital city, Roseau. Construction work now underway on sewers, wastewater treatment plant and pumping stations is scheduled to be completed in October 2002.
Direct exposure to IFIs
It was at the beginning of this phase that the joint venture assisted DOWASCO to apply for funding, for capital works, to the Caribbean Development Bank (CDB) and the Kuwait Fund for Arab Economic Development, as well as other funding agencies. (Kuwait, Redhead explains, had developed a relationship with the island and had funding available.) The joint venture is now assisting the water company to oversee contributions from these IFIs and other sources totalling over $20 million. " This CIDA project gave us direct exposure to these two banks, and helped us to earn their confidence. It also gave us vital experience in working in the infrastructural development sector of small island states," says Redhead.
The experience gained by Dessau-Soprin in Dominica paved the way for the company to be short-listed for, and win, a CDB-financed transportation project in Grenada in 1996, which was followed by other contracts in that country. Additionally, the firm has been able to secure opportunites to bid on and win other projects supported by the Kuwait Fund.
Redhead believes that these opportunities have come about because of the confidence Dessau-Soprin has built with representatives at these financial institutions, as well as with the decision makers in the countries that these IFIs are supporting. " They've become aware of the quality of services we provide, as well as our commitment to 'putting the country's interests first' when undertaking a project. It's confidence that you're trying to build - you earn that by doing good work. In almost all cases, CIDA projects open doors for those who perform well."
Take time to understand culture
Redhead has other advice for securing IFI-funded work: " Visit your prospective clients, and make sure you have a good understanding of their business and their needs. Take the time to appreciate the culture; you have to understand how the people and the communities think and how the society works. Then you can understand why and how decisions are made, and your working relationship will be stronger."
When it comes to understanding the Caribbean culture, Dessau-Soprin had a natural advantage: Redhead is himself from the Caribbean and has been able to coach the staff working with him.
Redhead's final piece of advice reflects his experience and grasp of international work: " You have to understand that technology transfer is a two-way street. If you believe that Canada has the all answers with the technology it offers and that you have nothing to learn, you do yourself a disservice. You do better if you're open to the prospect of learning from others."
Dessau-Soprin has obviously followed its own advice.
For more information, contact:
Export Financing Division, DFAIT
Tel: (613) 995-7251
E-mail: ifinet@international.gc.ca
or:
Joseph Redhead, Vice-president for the Caribbean Region
Dessau-Soprin Inc.
Tel.: (514) 281-1010
E-mail: joseph.redhead@dessausoprin.com
Internet: www.dessausoprin.com
Publication date: 2002/02/05
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