United Nations
Commission on Sustainable Development

Background Paper


       REPORT OF THE ASIA-PACIFIC EXPERT GROUP MEETING ON
         TRANSFER OF ENVIRONMENTALLY SOUND TECHNOLOGIES
               AMONG SMALL AND MEDIUM ENTERPRISES

                     APCTT, New Delhi, India
                       22-24 January 1996


Overview

1.   Substantial evidence has emerged in recent years of the benefits of the
use of ESTs in production processes.  These benefits are, for example, reduced
cost of raw materials and resources as well as waste disposal, less wastage,
reduced risk and future liabilities, improved working conditions, product
quality improvement and securing of present markets and opening up of new
increasingly environment concerned and globalized ones.

2.   There are many barriers, however, hindering the transfer of
environmentally sound technologies (ESTs) to small and medium enterprises
(SMEs).  A major barrier to SME technology transfer is the lack of appropriate
resources to obtain information and to explore the opportunities for
technology cooperation.  Not many SMEs employ highly qualified scientists,
engineers and professionals to address the complex issues involved.  In
addition, SMEs rarely have highly developed management structures and support
mechanisms.  Other barriers for SME technology transfer include the short term
focus on production, restricted cash flow, relative immaturity and high birth
and death rates.  In addition, SMEs are not always fully aware of the value of
technology transfer as a strategic business tool.

3.   The Expert Group Meeting (EGM) on Transfer of ESTs Among SMEs was
organized in New Delhi, India, from 22-24 January 1996, by the Asian and
Pacific Centre for Transfer of Technology (APCTT) in order to study the
mechanisms for ESTs transfer among SMEs in Asia and the Pacific and the
barriers hindering transfer, to analyze the role of different organizations in
this process, and to prepare recommendations for improvement of the
environment for commercial EST transfer in developing countries.  The meeting,
it was planned, would contribute inputs to the fourth session of the
Commission on Sustainable Development (CSD) concerning Chapter 34 on
"Environmentally Sound Technology Transfer, Cooperation and Capacity-
Building".  The meeting was attended by 37 participants representing 16
countries and 9 international organizations.

4.   The EGM was held to coincide with En-Techmart '96 where about 500
business meetings were pre-arranged between technology sellers and potential
buyers from around 20 countries.  The lists of sponsors and participants as
well as the agenda of the meeting, are attached as annexes to this report.

5.   At the global level, only around 15% of environmental technology sales
occur in developing countries.  Typical SMEs do not have the capital to invest
in expensive pollution control equipment or clean production technologies. 
The environmental authorities in developing countries face a serious dilemma
because, while SMEs contribute to a disproportionate amount of pollution, they
provide large scale employment opportunities and are a good source for foreign
exchange earnings, and consequently, too important to be overlooked or closed
down.

6.   The most important impediments inhibiting the application of ESTs in the
developing world would include:

     -    weak or distorted demand for EST due to lack of awareness on the
          part of SMEs and little or no environmental regulation enforcement
          capability;

     -    low technical capability - lack of knowledge, resources and
          linkages - to access ESTs;

     -    very little accessible information about technological
          alternatives;

     -    misallocation of financial resources in favor of larger projects
          or end-of-pipe solutions;

     -    end-of-pipe approaches;

     -    missing connections between potential partners;

     -    technology transfer mindset that technology is equated with
          hardware, seen as a single, point-in-time transaction.

7.   From the other side, EST suppliers face several obstacles and usually
lack both the resources and expertise to surmount them.  The first set of
obstacles include the lack of financial resources and know-how to find and
evaluate prospective business collaborations and opportunities and to navigate
through both local and foreign technical, legal and financial requirements
necessary to develop the transaction or linkage.

8.   The second set of obstacles revolve around the difficulty in securing
funds, authorizations and commitments to adequately demonstrate how and
whether given ESTs function under various operating conditions in foreign
countries.

9.   The EGM discussed innovative schemes of EST transfer developed by
various organizations and explored the opportunities for establishing mutually
beneficial partnerships among them to improve the environment for EST transfer
among SMEs in the region.  The EST transfer process was studied, taking into
consideration its complexity and the necessity for cooperation between various
institutions that are active in different parts of the process.  The topics
discussed by the experts included:

     -    Policy development and awareness creation with regard to ESTs
          transfer among SMEs;

     -    EST Information systems and networks;

     -    Matching of prospective EST transfer partners:  role of technology
          transfer intermediaries and networks;

     -    Financing of EST transfer;

     -    Support services to SMEs;

     -    EST Transfer promotion activities of bilateral and international
          development organizations;

     -    Practical experience in transfer of selected ESTs;

     -    Development of an integrated EST transfer service portfolio for
          industries by intermediaries;

     -    Innovative mechanisms and partnerships in promotion of EST
          transfer among SMEs.

Conclusions and Recommendations

     The Expert Group Meeting adopted the following recommendations in
relation to the perceived need for action.

1)   Clarifying the concept and approach to ESTs:

     The life cycle approach should be promoted instead of pollution control
     or prevention alone.  ESTs should be demonstrated to show that they are
     more than mere physical facilities or technologies, but that they
     involve human capabilities, know-hows, documented facts and
     organizational frameworks. Through information and demonstration,
     enhance the understanding of ESTs' economic viability. 

2)   Creation of awareness by SMEs as well as by governments for the value of
     ESTs, potential threats and opportunities created by them, and options
     available:

     Awareness promotion workshops should be held and demonstration projects
     on ESTs should be set up both for SMEs, for policy makers and for
     multiplier agencies including consultants.  Demonstration/model projects
     should be developed and promoted, particularly for identified marketable
     and affordable ESTs.  Involve media and advertising industry in
     awareness creation campaign.

3)   Development of enabling policy framework for encouraging the use of ESTs
     by SMEs;  Promotion of  market-based instruments (MBIs) based on the
     balanced application of command & control regulations, as well as
     incentives:

     Policies should be formulated on the consultative basis among
     stakeholders including industries, technology transfer intermediaries
     and NGOs.  Enforcement and adjustments of regulations are necessary
     through monitoring and assessment of the impacts of policies.  Case
     studies and policy research studies should be conducted on stimulating
     policy mechanisms that have been implemented in different countries.

4)   Technical and managerial capacity-building in SMEs, and among technology
     transfer intermediaries.  Consideration should be given to gaps in needs
     and capabilities between small enterprises and medium enterprises:

     Training of trainers should be provided as well as back-up expert
     support in technical and managerial capacity-building, such as on
     technology assessment or risk assessment. Institution-building might be
     the focus in some cases.  Exchange of visits and study tours should be
     organized. For intermediaries, sharing of experiences and pooling or
     exchanging expertise would be useful.  Large firms could assist SMEs in
     capacity-building efforts.  Case studies on different experiences should
     be conducted.

5)   Information on ESTs and on their sources that is digestible by SMEs, by
     policy makers and by intermediaries:

     Strengthen the role of EST centres with regard to SMEs as information
     broker among other functions.  Identify and strengthen information
     brokers at the national level who have access to regional and
     international information network systems.  Survey should be conducted
     of ESTs and their application in the region.  Technology evaluation
     should be made part of information to be made available on ESTs. 
     Strengthen mechanism for exchange of technology information (METI) and
     international network for transfer of environmentally sound technologies
     (INTET).  Information market/meeting should be organized by APCTT on a
     regular basis.  Common format for information on ESTs should be
     developed to facilitate information exchange and analysis.  Database
     should be developed on waste management and minimization.

6)   Access to financing and other resources:

     Tap big companies to assist as mentors to SMEs.  Finance syndication for
     EST transfer to SMEs should be provided by appropriate financial
     institutions or through investment promotion.  Special financial window
     and mechanism need to be developed for SMEs, including the provision of
     soft loan.  Financial support is also needed for strengthening and
     conducting activities of intermediaries.

7)   Support structures and the role of intermediaries need to be
     strengthened, as well as linkages between them and SMEs:

     Promote innovative partnerships among technology transfer facilitators so
     that they would be complementary.  Partnership between SMEs and
     intermediaries should be strengthened.  More assistance should be given to
     establish or strengthen EST support structures which include technical
     advisory consultancy services, marketing support, legal advice, R&D and
     laboratory facilities and services, assistance in project formulation,
     negotiation, technology sourcing and matchmaking, etc.  These services
     need to be provided in an integrated manner.  A national institution
     should be identified and strengthened with the function to coordinate and
     integrate various support services provided by different intermediaries. 
     Technical consultancy development promotion assistance programme (TCDPAP)
     should be developed and promoted.

8)   Enhance cooperation and networking among SMEs on issues related to ESTs:

     Formulation of consortium and networks among SMEs on a sectoral or issue
     basis to promote communication and cooperation, as well as to facilitate
     receiving funding and support services.

9)   Meeting international standards and requirements in order for SMEs to
     gain international competitiveness (e.g. ISO 9000 and ISO 14000):

     A series of education and re-education activities to change the mindset
     of SME managers and policy makers needed. A transitional period is
     necessary for SMEs to gradually change their production processes.
     Environmental management infrastructure needs to be strengthened to
     support SME efforts.

10)  Cooperation among national and development assistance institutions needs
     to be enhanced in order to avoid overlapping and to optimize resources:

     More focused, goal-oriented and prioritized approaches should be taken
     in investment of resources, in selection of technologies and in pursuing
     project ideas.  Priorities are to be decided among stakeholders.  
     Monitoring should be conducted on a regular basis.


Policy Development and Awareness Creation

10.  A key issue and challenge for small and medium scale enterprises in
developing countries is whether they can adopt the more sophisticated level of
environmental management without going through the end-of-pipe phase of mere
compliance to environmental regulations.  It was stressed that both regulatory
mechanisms and incentives are equally important to get SMEs to adopt ESTs on a
wider scale.  Policy analysis focused on fiscal incentives and environmental
regulations need to be undertaken with an objective to accelerate the use of
appropriate cutting edge technology for environmental protection.

11.  Developing or disseminating technology alone is not the answer.  SMEs
often do not know what kinds of technologies they need.  There is a need for
awareness creation to change the way of thinking towards environmentally sound
approaches and thus create a market for ESTs.  The awareness campaigns on
advantages of ESTs should be designed, keeping in view the basic needs for
SMEs such as cost reduction, export promotion, and access to financing. 
Public agencies, NGOs, consultants, EST transfer intermediaries and media
should paly an important role in this area.

12.  It was agreed that illustrators on success stories of SMEs adopting ESTs
and failures of polluters should be developed and widely disseminated among
industries.  The experts also stressed that many more demonstration projects
including changes in the industrial process to induce resource efficiency
improvement and development of commercially viable prototypes are required in
the region so that entrepreneurs could see the advantages of cleaner
production in reality.


EST Information Systems and Networks

13.  The main functions of information systems and networks on ESTs include: 
identification and sourcing of technologies; information on how to develop
technology as well as on technology assessment; provision of bargaining tips;
and sometimes assistance in problem-solving.  The benefits of networking
consists of creating closer interactions between different members of a
network for exchange of information, and providing easier access to
territories served by other network members.

14.  There are different types of EST information:  new processes,
statistics, regulations, and technology/business opportunities.  Similarly,
there are different types of users of EST information:  government, R&D
sector, NGOs, consultants and entrepreneurs.

15.  The experts agreed that information sources targeting SMEs should
contain digestible, reliable and business oriented information tailored to the
needs of individual SMEs.  Specialist intermediaries and consultants, with
technology transfer being their daily business, can usually process and
package more sophisticated information for their SME clientele.

16.  Stronger links should be established between EST information centres and
SMEs through technology transfer intermediaries and business consultants who
could provide a multiplier effect to these information services.  At the same
time, as these intermediaries are mostly private and profit oriented ones,
they would be interested in reliable updated information which could give them
business, directly or indirectly.


Matching of Prospective Technology Partners:  Role of Intermediaries and
Technology Transfer Networks

17.  For SMEs, the intermediaries play an important role in providing support
services to facilitate technology accession, transfer and adoption.  Unlike
large corporations, SMEs often lack in-house capacity for research,
information collection and analysis, technical and managerial know-how,
financing and marketing.

18.  The need for EST intermediaries is justified by the following reasons:

     -    lack of transparency in the technology transfer market: 
          potential suppliers are not readily identifiable because
          they are not active sellers;

     -    national differences in language, business culture and legal
          provisions;

     -    negotiating and drafting sound agreements, pricing and
          evaluating technologies is difficult for SMEs.


19.  Intermediaries can provide solutions to the above problems as
they are skilled in identifying potential partners, whether technology
buyers or sellers, and negotiating with them on behalf of their
clients.  An important part of their stock-in-trade is wide-ranging
contact in research and industry, generally accumulated over many
years of professional experience.  This allows them to search out
potential partners quickly and efficiently.  Intermediaries can also
facilitate negotiations and provide necessary support services to
their clients.

20.  Two main types of technology transfer intermediaries are
commercial technology brokers and development organizations with
different competence, skill and motivation.  Commercial technology
brokers are particularly equipped to help firms in the crucial stages
of partner identification/evaluation and in negotiating the
cooperation deal.  Development organizations, for their part, can play
a distinct role in mobilizing and sensitizing SMEs to the advantages
of EST transfer.  This is something that only publicly funded players
can do in a systematic way because of the high and generally
irrecoverable cost involved.

21.  Fees for the services paid by SMEs to intermediaries reflect
demand for and value of such services.  Both upfront and success fees
may be charged at different stages of technology transfer (preparation
of a feasibility/market study, introduction of potential partners,
signing a contract, commissioning and royalties).  Intermediaries
often form partnerships to access new territories.  In this case, they
usually cooperate on a success fee sharing basis.

22.  Capacities and range of services that can be provided by
intermediaries vary.  Some are specifically targeted to SMEs while
others have a broader clientele.  Some provide a comprehensive package
of services but the services of others may be focused to selective
kinds.  In case of the latter, the horizontal networking among
different intermediaries becomes important in developing innovative
partnerships to complement the services that are provided to SMEs, to
launch joint ventures or to exchange information and experiences.

23.  The number of EST transfer intermediaries that exist in the
region is too small for the demand or the requirement for the kinds of
services they can provide to SMEs.  There is, thus, a need to identify
additional institutions, particularly at the local and national
levels, that could become intermediaries and develop necessary
capacities.

24.  As technology transfer is a very long and complicated process
where partners should match by many parameters, technology transfer
intermediation is a very risky business and requires high level of
qualification of the intermediaries.  Besides, as most intermediaries
work on a success fee basis which is time consuming since the
negotiation process often takes between 18 and 36 months,
intermediaries require some startup funds to establish themselves on
the market and continue their services to SMEs on a long term basis. 
Governments and development organizations should support such
intermediaries by enhancing their professional skills and providing
financial incentives to facilitate networking and partnerships among
them.


Financing of EST Transfer

25.  Finance syndication for EST transfer for SMEs is quite a
difficult task, especially in developing countries.  Most SMEs have
too small a profit margin to finance their own investment to any great
extent.  While many financial institutions provide some incentives for
environmentally sound projects, SMEs are often not aware of them. 
Besides, SMEs usually cannot prepare a high quality investment
proposal for investors by themselves, and are often reluctant to pay
to professional consultants for this service.

26.  Some SMEs may have funds available to invest in cleaner
production techniques giving fast returns but they need to be
convinced of the value of ESTs and to be encouraged to do so.  SMEs
especially those in least developing countries are often reluctant to
take the risk of investing in unproven technologies, without seeing
the demonstrated benefits of ESTs, including economic viability.

27.  While cleaner technologies usually provide economically
attractive solutions, especially in the long run, SMEs often complain
that the banks attach too much importance to guarantees instead of
granting loans on the basis of business potential and profitability of
the projects.  Besides, banks in many countries do not offer SMEs long
term financing on attractive terms.

28.  Banks remain the preferred financial partners for SMEs.  Many
development/commercial banks and finance corporations have schemes for
providing loans for environmentally sound projects to SMEs on
preferential terms.  Despite this, SMEs face several problems in their
access to bank loans.  Commercial banks usually prefer to finance
large projects due to the high cost of funds transfer as well as lower
risk of dealing with large enterprises and higher level of investment
proposals prepared by them.  From the banks' point of view, their
relations with SMEs involve greater risk, their dossiers cost more to
administer, and they have to make proper use of the savings their
customers entrust to them.  The banks claim that the macro-economic
policies of governments and conditions on the financial market
restrict what they can do for SMEs, particularly when it comes to
long-term loans.  There is a shortage of valid and transparent
investment schemes for SMEs.

29.  Many governments and development organizations offer financial
incentives for EST transfer among SMEs.  Syndication of such
incentives from various sources for a project is often possible, but
has to be done by specialist intermediaries due to the lack of
transparency.  These financial intermediaries on their part usually
prefer to work for large projects, however, as they charge their fees
as a percentage on the investment arranged as a compensation for their
efforts and would also like to reduce risks.

30.  Many positive changes were seen in EST transfer financing
recently.  Many governments and development banks have introduced new
incentives for environmentally sound projects which could be
considered by them.  Venture capital, mutual funds and other financing
schemes are playing increasingly an important role in the region. 
Innovative intermediaries specializing in finance syndication for
environmentally sound and energy efficient projects in developing
countries are being established.

31.  The experts indicated that the quest for solutions to key
problems which have been identified must involve all the players
concerned.  the main responsibility lies with financial institutions
and the SMEs themselves, who have to strive for more efficient
partnerships.  National authorities and international organizations,
and all those offering services to the business community, must also
be involved in working towards this aim, so that they can help in
mobilizing forces and complement the efforts made.

32.  The communication between banks and SMEs should be improved. 
SMEs should undertake to ensure greater transparency to banks, both as
regards trends in their financial situation and other areas such as
company management, activities and business prospects.  They must also
be better informed about what the banks expect and offer.  Training
for businessmen in financial matters would improve their managerial
skills.  The banks could also offer training, combined with
information on banking products for their SME clients.

33.  Training of the banking staff would also improve communication
between SMEs and the banks.  Managerial staff is often inadequately
informed about the realities of SMEs and it would clearly be useful to
conduct practical courses in the firms for young managerial and
professional staff from the banking sector.  Better understanding of
the realities of SMEs should also enable the banks to adapt their
financial products (factoring, credit insurance, leasing, mutual
guarantees, etc.) to the practical needs of the firms and offer them
better advice.  In particular, SMEs have to be encouraged to
concentrate on long-term investment financing which is required for
EST transfer.  It is also in the banks' interest to offer tailor-made
financial products, since it can help reduce both their costs and
risks.

34.  As SMEs and banks often "speak in different languages", financial
intermediaries play an important role in facilitating communication
between them as well as in finance syndication for SMEs from different
sources.  Taking into consideration the importance of such
intermediaries, countries could also promote financial instruments
such as factoring and credit insurance by, for example, making soft
loans to financial intermediaries and setting up a guarantee fund to
bring down the cost and risk of such services to SMEs.


Support Services to SMEs

35.  The experts stressed that technology transfer is a complex
process where SMEs require various support services which could be
provided by both private consultants and public business development
organizations.  Support services required by SMEs in EST transfer
include identification of technological needs of SMEs, identification
of a suitable technology and technology supplier, evaluation of the
technology, adaptation of a technology which would cover social,
political, economic and cultural needs, preparation of a market study,
business plan, feasibility study, environmental impact assessment and
impact management plan formulation.

36.  Further, setting up a project based on an imported technology is
not a complete job by itself.  It requires continuous upgrading,
modification or augmentation.  These functions can be implemented most
effectively by a support service organization which takes into
consideration various socio-economic, political and technological
factors.

37.  At the same time, experts noted that some support services, such
as environmental impact assessment, are often too expensive to be done
for an SME.  In this regard, such studies could be done for clusters
of industries operating in the same region or industrial sector. 
Preparation and implementation of such large scale studies benefitting
hundreds of SMEs would require coordination of activities of various
government, financial, industrial and business organizations. 
Examples of such studies should be promoted in the region to introduce
this innovative approach in new areas.

38.  Innovative mechanisms should also be developed for provision of
some support services such as preparation of business plans, market
studies and feasibility studies at a lesser cost to SMEs.  While
public business development organizations could subsidize some part of
the cost of such studies, computer aided methods of their preparation
should be widely promoted to reduce the cost of this work.


EST Transfer Promotion Activities of Bilateral and International
Development Organizations

39.  The experts stressed that bilateral and international development
organizations keep playing an important role in promoting EST transfer
in developing countries by introducing innovative mechanisms in this
area.  Examples of such activities implemented by the U.S. Agency for
International Development (USAID) and the UN/ESCAP Asian and Pacific
Centre for Transfer of Technology (APCTT) are listed below:


USAID Trade in Environmental Services and Technologies (TEST)
Programme

40.  The objectives of the TEST programme are to improve environmental
protection and productivity of the Indian industry on a sustainable
basis, through linkages between Indian and US firms in selected
priority areas.  The TEST programme supports projects involving
concept evaluation, pre-offer feasibility studies and specifically,
commercialization.  The TEST programme provides concessional finance
in the form of loans, conditional grants and technical assistance. 
The programme encourages joint ventures between Indian and US firms in
the manufacturing and service sectors and is also open for joint
financing with other institutions/banks.

41.  The TEST programme was launched by USAID in cooperation with the
Industrial Credit and Investment Corporation of India Limited (ICICI)
in 1994.  ICICI is the coordinating agency for implementation of the
programme in India.  USAID has provided a grant of US$25 million to
the Government of India to finance the activities under the TEST
programme.

42.  In the past 18 months, the project has directly contributed to
the successful conclusion of more than a dozen environmental business
deals between the U.S. and Indian firms, including joint ventures for
industrial air filter and air pollution control equipment
manufacturing, technical licensing agreements for fluidized bed
boilers and vapor recovery technology, and distribution agreements for
biological treatment products and wastewater treatment equipment. 
TEST is currently working on an active pipeline of about 20 other
potential deals.


Services and Networks by APCTT:  International Network for Transfer of
ESTs (INTET) and the Asia-Pacific Mechanism for Exchange of Technology
Information

43.  One of the objectives of APCTT is to promote transfer of ESTs
among SMEs in Asia and the Pacific.  To achieve this objective, APCTT
develops and tests self-sustainable models and service portfolio and
promotes these models in other countries in the region through
strengthening national capabilities and integrating them into the
regional network.

44.  At present, APCTT facilitates more than 250 EST transfer
negotiations among SMEs every month, making it one of the most active
international agencies operating in this field internationally.  These
services by APCTT are financed by SMEs themselves.  At the same time,
taking into consideration the large number of SMEs in the region,
APCTT is implementing various projects aimed at strengthening EST
transfer intermediaries in the region to achieve a multiplier effect
in getting a large number of SMEs to adopt ESTs.

45.  In 1994, APCTT established a self-sustainable International
Network for Transfer of ESTs (INTET) among SMEs.  Members of INTET are
innovative SMEs and EST transfer intermediaries, both public and
private.  The targeted number of INTET members is currently 100 which
will be gradually expanded to 300 within the next two years.  INTET is
a prime mechanism of APCTT for EST transfer among SMEs.  A number of
transactions have already been successfully concluded through INTET,
while many others are in the pipeline.

46.  International practice shows that smaller technology transfer
networks are more efficient than larger ones.  The reason being is
that technology transfer is a very complex and long process.  In this
regard, good personal communication among network members is critical
for effectiveness.  In this regard, APCTT does not plan to expand
INTET to reach all technology-based SMEs in the region.  Instead, the
Centre is assisting its member countries in Asia and the Pacific in
establishing similar self-sustainable networks and to interlink them
under the project entitled Mechanism for Exchange of Technology
Information (METI) which is funded by UNDP and implemented by APCTT. 
The countries participating in the METI project include Bangladesh,
China, India, Indonesia, Kazakstan, Malaysia, Nepal, Pakistan, the
Philippines, Republic of Korea, Russian Federation, Sri Lanka,
Thailand and Vietnam.

47.  Many other bilateral and international development organizations
carry out specific activities to facilitate EST transfer among SMEs in
the region.  Coordination of activities between these projects is
often possible though quite difficult due to various considerations. 
Selection of partners and working out of cooperation principles and
mechanisms in this area should be done very carefully, always taking
into consideration objectives and limitations of individual
organizations.  When such cooperation is established, it often allows
to achieve a synergic effect for all partners and their target
beneficiaries.  Better transparency of EST transfer activities carried
out by various development organizations as well as interest to
cooperate with other organizations would facilitate such partnerships.


Development of an Integrated EST Transfer Service Portfolio for
Industries by Intermediaries

48.  The experts stressed that as SMEs are managed in an
entrepreneurial way and usually do not have developed support
structures, they would prefer to receive an integrated EST transfer
services from an intermediary which would include needs evaluation,
search for technology partner, support services, finance syndication
and marketing assistance.  However, development of such a complete
package is quite a difficult task, however, as it requires
establishment of consortiums of intermediaries providing different
types of services listed above and often located in different
geographical areas.  However, when such an integrated EST transfer
service is offered to SMEs, they are ready to take up new ESTs offered
by such consortiums and to pay to the intermediaries substantial
amounts to make these services self-sustainable and even profitable.

49.  The experts noted that though some examples of such consortiums
exist in the region, e.g. services offered under the TEST programme
and by APCTT described above, the demand for such services in the
region far exceeds the offer.  The experts emphasized that
establishment of such self-sustainable EST transfer service centres
and their networking would boost the adoption of ESTs by SMEs in the
region.  The low investment self-sustainable model developed by APCTT
was proposed for further promotion in Asia and the Pacific beyond the
boundaries of the current METI project.

50.  The experts recommended that governments and development
organizations should provide seed capital to assist establishment of
such EST transfer one-stop-shops for SMEs.  Partnerships between
public and private agencies providing these services should be
encouraged.


Development of Innovative Partnerships for EST Transfer

51.  The experts noted that various public and private agencies
provide EST transfer related services to SMEs in Asia and the Pacific,
which would include match-making, training, financing, export
promotion, etc.  At the same time, governments and development
organizations provide various incentives for environmentally sound
projects such as tax exemption, soft loans, grants, free or subsidized
services.

52.  There are also many examples of cooperation between various
agencies offering the same type of services, i.e. among banks,
information centres, and technology brokers.  At the same type,
cooperation between organizations offering complimentary services
should be widely promoted.

53.  The Technology Bureau for Small Enterprises (TBSE), a joint
venture between the Asian and Pacific Centre for Transfer of
Technology (APCTT) and the Small Industries Development Bank of India
(SIDBI) is an example of such an innovative partnership between an
organization offering match-making and support services on the one
side and a bank financing technology transfer projects on the other. 
TBSE promotes transborder technology cooperation of Indian small-scale
industries.  It is planned to promote this model to other countries in
the region.

54.  At the policy level, consultations between government, financial
institutions and industrial associations in developing environmental
law should be encouraged.  Existing examples of such cooperation
should be widely promoted in the region.

55.  At the implementation level, innovative partnerships between
development organizations, financial organizations, industrial
associations and chambers of commerce, training institutions, public
and private technology brokers and consultants and trade organizations
should be encouraged to achieve the following objectives:

-    create better awareness among SMEs of the short-medium- and long-
     term economic advantages of ESTs,

-    to improve the quality, reduce the cost and speed up the
     technology partner matching process,

-    provide more cost-effective support services,

-    develop most cost effective solutions for SMEs in EST transfer by
     improving access to finance and syndication of financial
     incentives available from different sources.

56.  Finally, it was recommended by the experts attending the EGM that
the CSD should support efforts to promote more widely successful
models existing in the region and encourage development of more
advanced ones.  This process should involve consultations with all the
stakeholders concerned.


                                                         Annex II

          ASIA-PACIFIC EXPERT GROUP MEETING ON TRANSFER
          OF ENVIRONMENTALLY SOUND TECHNOLOGIES (ESTs)
                           AMONG SMEs

           22-24 January 1996, APCTT, New Delhi, India

                      List of Participants


Mr. S. P. Agarwal, Officer-on-Special Duty, Consultancy Development
Centre, India Habitat Centre, Zone IV, East Court, 2nd Floor, Lodhi
Road, New Delhi 110 013, India
(Tel: 91-11-4602602)

Mr. Salahuddin Ahmad, Senior Program Manager, Technology and Business
Information (TBI) of Bangladesh, Advisory Services Center, House 91,
Road 12A Dhanmondi, Dhaka 1209, Bangladesh
(Tel: 880-2-812467, 810693; Fax: 880-2-813305)

Mr. Utpal Bajpai, Chief, Technology Bureau for Small Enterprises
(TBSE), APCTT Building, Adj. Technology Bhavan, PO Box 4575, New Delhi
110 016, India
(Tel: 91-11-6864501, 6856276; Fax: 91-11-6856274)

Mr. Brendan Barrett, Programme Officer, United Nations Environment
Programme/International Environmental Technology Centre, 1091
Oroshima-cho, Kusatsu City, Shiga Prefecture 525, Japan
(Tel: 81-775-684585; Fax: 81-775-684587)

Mr. Manab Chakraborty, Assistant Resident Representative (Energy and
Environment) 55 Lodhi Estate, New Delhi 110 003, India
(Tel: 91-11-4628877; Fax: 91-11-4627612)

Mr. S. P. Chandak, Director, National Cleaner Production Centre, c/o
National Productivity Council, 5-6 Institutional Area, Lodi Road, New
Delhi 110 003, India
(Tel: 91-11-4611243; Fax: 91-11-4615002)

Mrs. Corazon PB. Claudio, President, Philippine Environmental Industry
Association, Inc., No. 30 Macapuno Street, Valle Verde I, Pasig City,
Philippines
(Tel: 632-6713266, 6715846, 6713217, 6713189; Fax: 632-6717055)

Mr. Adrian Court, Delphi International Ltd., 36 Great Queen Street,
London WC2B 5AA, United Kingdom
(Tel: 44-171-4042963; Fax: 44-171-4040326)

Mrs. Rukasih Dardjat, Head, Technology Information Service Division,
Indonesian Institute of Sciences (LIPI), JI, Cisitu/Sangkuriang,
Bandung 40135, Indonesia
(Tel: 62-22-2502832, 2504265; Fax: 62-22-2504755)

Dr. John F. Elliott, Director, Industry and Technology Division,
Economic and Social Commission for Asia and the Pacific (ESCAP), No.
1, Rajadamnern Avenue, The UN Building, Bangkok 10200, Thailand
(Tel: 662-2881234; Fax: 662-2800814)

Mr. Ahmad Farobi, PT. Parama Aneka Cipta, Industrial Development
Center (IDC), JI. Tubogus Ismail XII, No. 8, Bandung, Indonesia
(Tel: 62-22-2502833; Fax: 62-22-2502833, 2501768)

Mr. Gopal K. Handa, Industrial Specialist, Advisor Engineering,
International Finance Corporation (IFC), No. 1 Panchsheel Marg,
Chanakyapuri, New Delhi 110 021, India
(Tel: 91-11-3011306; Fax: 91-11-3011281, 3011278)

Mr. Peter Handke, EMF Feldstr 3, 31582 Nienburg/Weser, Germany
(Tel: 49-5021-60280; Fax: 49-5021-16236)

Mr. S. K. Husain, Asian and Pacific Centre for Transfer of Technology,
P.O. Box 4575, Adj. Technology Bhawan, Off. New Mehrauli Road, New
Delhi, 110 067, India
(Tel: 91-11-6856276; Fax: 91-11-6856274)

Mr. Jorg Janischewski, Associate Expert, Asian and Pacific Centre for
Transfer of Technology, P.O. Box 4575, Adj. Technology Bhawan, Off.
New Mehrauli Road, New Delhi 110 067, India
(Tel: 91-11-6856276; Fax: 91-11-6856274)

Mrs. Lu Jiahui, Secretary General, Technology Market Association of
China, A-15, Fuxing Road, P.O. Box 199-9, Beijing, China
(Tel: 86-10-8515015, 8575511; Fax: 86-10-8515015)

Mr. Jae-Bok Kim, Director, Technology Transaction Information Center,
Korea Institute of Industry and Technology Information, P.O. Box 205,
Cheongryang, Seoul, Republic of Korea
(Tel: 82-22-9626211/8; Fax: 82-22-9627198, 9624702)

Dr. Vadim Y. Kotelnikov, Adviser, Technology Information, Asian and
Pacific Centre for Transfer of Technology, P.O. Box 4575, Adj.
Technology Bhawan, Off. New Mehrauli Road, New Delhi 110 067, India
(Tel: 91-11-6856276; Fax: 91-11-6856274)

Mr. Arun Kumar, SPAO, HUDCO, Hudco Bhawan, India Habitat Centre, Lodhi
Road, New Delhi 110 003, India
(Tel: 91-11-4617696, 4615343; Fax: 91-11-4620216)

Dr. B. P. Lamba, Chanakya Consultants Ltd., D-10G, DDA Rockview
Appts., Munirka, New Delhi 110 067, India
(Tel: 91-11-6850412, 6866199; Fax: 91-11-6862358)

Mr. Valentin Makarov, Centre for Entrepreneurship Development, Per.
Antonenko, 6A, 190 003 St. Petersburg, Russia
(Tel: 7-812-2722547, 3106485)

Mr. L. A. Mandalia, Programme Specialist in Water Sciences, UNESCO, 8
Poorvi Marg, Vasant Vihar, New Delhi 110 067, India
(Tel. 91-11-677310, 676308, 676285; Fax: 91-11-6873351)

Mr. Felipe P. Manteiga, US Agency for International Development
(USAID), B-28 Institutional Area, Qutab Hotel Road, New Delhi 110 016,
India
(Tel: 91-11-6865301; Fax: 91-11-6868594)

Mr. Gilbert J. Marrou, Engineering Advisor, South Asia Regional
Mission, International Finance Corporation, No. 1 Panchsheel Marg,
Chanakyapuri, New Delhi 110 021, India
(Tel: 91-11-3011306; Fax: 91-11-3011278, 3011281)

Dr. N. B. Mazumdar, Deputy Chief (Waste Management), HUDCO, Hudco
Bhawan, India Habitat Centre, Lodhi Road, New Delhi 110 003, India
(Tel: 91-11-4617696, 4615343; Fax: 91-11-4620216)

Dr. Christoph Menke, Indo-German Industrial Energy Efficiency
Improvement Project for Karnataka, Tata Energy Research Institute
(TERI), Post Box 154, 50/7 Palace Road, Bangalore 560 052, India
(Tel: 91-80-2268296; Fax: 91-80-2255760)

Ms. Hiroko Morita-Lou, Sustainable Development Officer, United Nations
Department for Policy Coordination and Sustainable Development, Room
DC2-2242, New York, NY 10017, USA
(Tel: 1-212-9638792; Fax: 1-212-9631267)

Mr. Wilfred S. Nanayakkara, Country Director, United Nations
Industrial Development Organization, 55 Lodi Estate, Post Box No.
3059, New Delhi 110 003, India
(Tel. 91-11-4628877; Fax: 91-11-4620913)

Dr. Tatyana Pilat, President, EIKOS Company, 16 Vyborgskaya str.,
125212 Moscow, Russia
(Tel: 7-095-1509925; Fax: 7-095-1509705)

Dr. David Owen, Senior Consultant, Delphi International, 36 Great
Queen Street, London WC2B 5AA, United Kingdom
(Tel: 44-171-4042963; Fax: 44-171-4040326)

Dr. P. S. Rana, Executive Director, HUDCO, HUDCO Block, India Habitat
Centre, Lodhi Road, New Delhi 110 003, India
(Tel: 91-11-4617696, 4615343; Fax: 91-11-4620216)

Mr. Vijit Ratnarajah, ITMIN, Ceylinco House, Ground Floor, 69
Janadhipathi Mawatha, Colombo 1, Sri Lanka
(Fax: 94-1-683945)

Mr. Manoj K. Sharma, Small Industries Development Bank of India
(SIDBI), 10/10 Madan Mohan Malviya Marg, Lucknow 226 001, India
(Tel: 91-522-274094, 274517-22; Fax:  91-522-274512-14)

Mr. N. K. Sharma, Managing Director, National Research Development
Corporation of India (NRDC), 20-22 Zamroodpur Community Centre,
Kailash Colony Extension, New Delhi 110 048, India
(Tel. 91-11-6419945, 6432121; Fax: 91-11-6460506, 6449401)

Mr. Rajesh Kazi Shrestha, Hony. Secretary General, Nepal Chamber of
Commerce (NCC), Chamber Bhawan, Kanti Path, P.O. Box 198, Kathmandu,
Nepal
(Tel: 911-1-222890, 229998; Fax: 977-1-229998)

Mr. R. Srinivasan, Counsellor, Environment Management Division,
Confederation of Indian Industry (CII), India Habitat Centre, 4th
Floor, Zone IV, Lodi Road, New Delhi 110 003, India
(Tel: 91-11-4691151, 4642388; Fax: 91-11-4602524, 4645223)

Mr. N. Srinivasan, Editorial Assistant, Asian and Pacific Centre for
Transfer of Technology, P.O. Box 4575, Adj. Technology Bhawan, Off.
New Merauli Road, New Delhi 110 067, India
(Tel: 91-11-6856276; Fax: 91-11-6856274)

Mr. P. R. Srivastava, Assistant Chief (Projects), UIFN, HUDCO Block,
India Habitat Centre, Lodhi Road, New Delhi 110 003, India
(Tel: 91-11-4617696, 4615343; Fax: 91-11-4620216)

Mr. Edward Someus, Director, Product Control Ltd., H-1046, Budapest,
Mikszath 81, Hungary
(Fax: 36-1-1691939)

Mr. Kanit Tiravanit, Senior Scientist, Technology Transfer Centre,
Ministry of Science, Technology and Environment (MOSTE), Rama VI Road,
Bangkok 10400, Thailand
(Tel: 622-2460064; Fax: 622-2468106)

Mr. Jan Verboomen, B-3200 Aarschot, Belgium

Mr. Abdulla Zawawi Ali, Head, Technology Transfer Division, Standards
and Industrial Research, Institute of Malaysia (SIRIM), Persiaran Dato
Mentari, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia
(Tel: 603-5592601/5591630; Fax: 603-5508095)

 


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Date last posted: 3 December 1999 10:27:35
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