Posted on January 7, 2002

Equal Partnerships Hold Key to Winning World Bank Projects for Toronto Firm

The days when foreign companies implemented IFI-funded projects in developing countries on their own are largely gone. Today's emphasis on building local capacity means that IFI projects are typically based on partnerships with local companies and agencies. In fact, as one medium-sized consulting engineering and technology management firm has discovered, forming partnerships is what makes pursuing the IFI market even viable. Thanks to a team approach, R.V. Anderson Associates Limited of Toronto is currently developing a US$5-million World Bank-funded wastewater master plan for Mumbai (Bombay). Al Perks, Manager, International Business, shares his insights into making partnerships work - and endure.

Created in 1948, and now employing 175 people, R.V. Anderson comprises environmental and infrastructure specialists for technologies related to water, wastewater, transportation, urban development and telecommunications. The firm offers planning and management, design and construction supervision, and operations and optimization services to both the public and private sectors, in Canada and overseas. Its current international involvement dates back to the mid-1990s, when it began to bid on - and win - World Bank (WB) projects in India, its main overseas market.

Development of the wastewater master plan for Bombay, a 32-month project that began in 1999, involves carrying out the planning studies and preliminary designs for the wastewater facilities that will be required to meet the city's needs for the next 25 years.

Partnering creates local presence

For R.V. Anderson, the local presence it had already established in India was crucial to positioning itself to win the contract. " A lot of the IFI work these days is done through the national, state and local agencies in the borrowing country, and technology transfer is a big part of implementing those projects. So you really need to establish yourself locally as a credible firm," explains Perks. " The best way to do that is through appropriate local partnerships. That's the key point we learned."

R.V. Anderson didn't have to go looking for its partner. Six years ago, it was approached by the Bombay firm PHE Consultants.

The decision to team up was based on a combination of factors, including the Indian company's previous experience working with foreign firms and its contacts in market sectors in India of relevance to R.V. Anderson. And now the Canadian company automatically had someone with their ear to the ground in India. " We're not big enough to send someone to live in India for 18 months to scout out possibilities. It's beyond our financial means. But once some work can be obtained and a revenue stream established, then we can put one of our people on the ground for the long haul."

Investment pays off over long term

In the meantime, it was not beyond company means to give 18 months of technical and marketing support to PHE Consultants until work materialized. And the investment paid off. The partners' first joint project was a World Bank-funded study on improving the operation of the existing sewerage network for the Municipal Corporation of Greater Mumbai. Explains Perks: " PHE had previously done work for this client and had gained their confidence."

That confidence, further increased as a result of the initial joint project, no doubt played a role in the partners winning a second (currently ongoing) WB-funded contract - which happens to be for the same client.

Teaming up with a large British consulting engineering firm (which in turn brought in its own local Indian partner) was also key. " Because of the intense international competition and sheer size of the project, we decided that as a smaller Canadian firm we would need to show more resources," says Perks. " Mott MacDonald Ltd. specializes in wastewater and sewerage too, so we were able to double the expertise we could offer."

Key to success lies in respect

Perks's advice for making partnerships succeed extends well beyond the usual recommendations for keeping in close communication and building trust. The key things, he says, are attitude and approach. " You don't go in and impose your own 'superior' way. It doesn't work anymore to go into a country and say 'We know how to do it better than you.'"

In fact, as Perks and his associates at R.V. Anderson have learned, Western solutions are often not even appropriate. " The conditions in a country like India are so much more severe than anything we deal with in Canada. A very telling point is that our project in Bombay is for wastewater facilities that will serve a population that is almost half the size of Canada's!"

Such conditions mean that R.V. Anderson both relies on and values the experience of local companies. " You develop a respect for your partners in that they're dealing with problems so much more severe than yours," says Perks. " In my eyes, a successful firm working overseas would draw that kind of lesson - not that you can impose a solution but that you can work with your partner to find the appropriate solution. The problems can't be solved without their perspective, skills, and experience."

The bottom line is that for R.V. Anderson, successful partnerships are equal partnerships, based on mutual respect for the expertise each company brings to the project.

Appreciation for consular support

Perks acknowledges another partnership that has contributed to his company's success in India - with the Canadian Trade Commissioner Service. " The commercial counsellors at the High Commission in New Delhi and the Consulate in Bombay have been very helpful in keeping their ear to the ground for us. They always invite us to receptions and workshops and make sure we have a prominent role. And they send us word of any upcoming jobs that we don't know about. For a firm our size, that kind of consular support is crucial, because we can't be there all the time. We greatly appreciate their efforts."

For the current WB-funded project, the company asked the commercial officers to make their normal government contacts aware that there was a Canadian company bidding. " It's those kinds of high-level contacts that get the word out that we're there, and that we're being backed by the Canadian government."

The end result, says Perks, is that persistence pays off. " The reason we're in India is because we've been persistent in pursuing our partnerships."

One might argue that R.V. Anderson's success also stems from the respectful attitude it brings to those partnerships.

For more information, contact:

Export Financing Division, DFAIT
Tel: (613) 995-7251
E-mail: ifinet@international.gc.ca

or:

Al Perks, Manager, International Business
Tel: (613) 226-1844
E-mail: perksa@magma.ca