Danish Ambassador to Bangladesh Niels Severin Munk formally unveiled the cover of the report at a function organised by the BEI in Dhaka. BEI President Farooq Sobhan chaired the function.

The BEI has conducted the review during the period from July 1 to December 31 of 2005 following a proposal of the PSD Programme authority in Bangladesh to review the performance of the programme and identify the problems and bottlenecks in implementation.

The review was based on a thorough survey among the 44 Bangladeshi and 30 Danish companies as well as meeting with the PSD stakeholders.

In its executive summary, the review said the PSD Programme has enough scope for improvement and high potential for making significant contribution to the economy of Bangladesh.

"The strengths of the PSD Programme far exceeded its weaknesses. Moreover, most of the projects supported by the PSD Programme are yet to go into actual production. Once the majority of the projects start yielding results, the economy of Bangladesh in general and the private sector in particular will highly be benefited," the review noted.

For formulation of a future strategy for greater effectiveness and enhanced productivity of the Danida Programme, the review report made a number of recommendations analysing the weaknesses of the programme. The recommendations include, among others, wide circulation of information, simplifying guidelines for preparation and submission of projects, and judicious selection of partners.

The review report also recommended strengthening of monitoring system of Danida, withdrawal of restriction on joint ventures with more than one company, introduction of venture capital/equity support and shifting of Danida office from the Danish Embassy to a separate location.

The report said the strengths of the PSD are the programme's contribution to economic growth and social development of Bangladesh, increase of foreign investment, creation of new markets, modernisation of business and management practices, capacity development and improvement of internal and external environment.

Speaking at the function, Farooq Sobhan said the Danida PSD Programme can be an example to other donor agencies and they should look at it.

He also said the country needs to offer a healthy climate for more investment and such programme here.

Danida commenced its PSD programme in Bangladesh in 1999 for socio-economic development of the country through technology transfer and promotion of sustainable, business-to-business partnership between private companies in Bangladesh and Denmark.

The major activities supported by the programme include grants for partner identification, study visit, feasibility studies, training, consultancy services, technology adaptation, export promotion, improvement of working condition, combating HIV/AIDS and promotion of human rights.