The Facility for Infrastructure Development - ORIO

In general, it will take around 2,5 to 3 years. Timelines depend on the project's complexity and include, on average:

• 6 months for the signing of the grant arrangement for the development phase;
• 1 year for studies and deliverables of the development phase;
• 6 months for appraisal of the development phase and selection for implementation of the project;
• 2 months for signing of the grant arrangement Implementation and Operations & Maintenance Phase;
• 8 months for the tender process.

The development phase is mandatory. Usually, studies that have already been carried out need to be updated. However, if the project has already been fully developed based on recent data, this phase can be very short. For more information on the development, implementation, operation and maintenance phases, see also the ORIO Manual and chapters 10-13 of the ORIO Policy Rules.

The time frame is about 6 months. The input & output plan and monitoring and evaluation plan must be drafted by the applicant after selection of the project. This will result in the grant arrangement for the development phase which must be signed by the applicant and returned to the Netherlands Enterprise Agency.

The final result of the development phase is the detailed project plan, including all the supporting studies. The complete project plan will be assessed against formal requirements and must score ‘satisfactory’ on each criterion. The assessment will be submitted to ACORIO for advice. After the project plan has been assessed, the applicant will be notified in writing of the outcome. If the project is not eligible for a grant for the implementation and operation & maintenance phases, the applicant will be informed of the reason. 

Once all the agreements and conditions agreed in the grant arrangement for the development phase and the input & output plan have been met, the decision on whether to approve the project has been made and the final report has been submitted, all advance payments will be converted into definitive payments. Final settlement will also take place at this time, based on the final invoice. The final payment of at least 10% of the total grant for the development phase (exclusive of unforeseen expenditure) does not depend on the outcome of the Netherlands Enterprise Agency’s decision on approval.

The time frame is 4-6 months. This depends, amongst others, on the quality of the project plan submitted and the duration of the round (or rounds) of questions.

When a project has been approved for the implementation and operation & maintenance phases it is eligible for a grant for those phases. If the negotiations on the grant arrangement have resulted in a document that is acceptable to both parties, RVO will finalise the grant arrangement. According to the procurement plan, the detailed design and tender documents and tender procedure will be carried out, and after that the tender will be opened by the Central Government. After successful completion of the tender a company/ companies will be awarded a contract and the actual construction and works can start.

The total project costs are not only the costs of construction of infrastructure. The eligible costs are all studies in the development phase; detailed design, tender documents, procurement and construction in the implementation phase; and the operation and maintenance costs of up to 10 years. These total project costs can be no more than EUR 60 million and no less than EUR 2 million.

For more details, please refer to the table Eligibility costs in the Manual.

Yes, in principle a project can consist of several projects as long as the total project costs do not go beyond the maximum total of EUR 60 million.

No, costs that have been incurred for the development before the project has been selected are not reimbursable.

No, only when a project has been approved for the development phase it is eligible for a grant for that phase. Only with the signed grant arrangement for the development phase the costs of the agreed deliverables of the development phase can be paid in accordance with the agreed payment schedule. After the assessment of the project plan of the development phase, the applicant will be notified in writing of the outcome. The development phase has been concluded. When a project has been approved for the implementation and operation & maintenance phases it is eligible for a grant for those phases and payments will be transferred according to the payment schedule.

No, goods, works and services for the project should be purchased in a transparent and efficient manner in accordance with legislation in the applicant’s country and the OECD Good Procurement Practices for Official Development Assistance. When selecting a supplier of goods and services, quality and sustainability will be taken into account. Compliance with CSR guidelines is a requirement. Before a tender procedure  begins, the relevant draft contract must be submitted to the Netherlands Enterprise Agency for a declaration of no objection. For more information about procurement see also paragraph 7.2 of the ORIO Manual.

In applying the OECD's Good Procurement Practices a distinction must be made when procuring goods and services for the project between i) the fact that direct negotiations between the competent authority and the contractor are permitted and ii) the fact that a form of tendering is required to select a contractor. Apart from this distinction, the the Netherlands Enterprise Agency will in all cases see to it that the process is efficient, honest and transparent. In case of direct negotiations, we will ascertain whether the prices are market conform and whether the other terms and conditions are consistent with good commercial practices in the sector in question. Similarly, all project costs and plans will be assessed for usefulness and necessity. See section 13c of the ORIO Policy Rules. For more information on the evaluation criteria see also paragraph 7.2 paragraph of the ORIO Manual.

No, non-Dutch companies can also be involved in ORIO. For more information about procurement see also paragraph 7.2 of the ORIO Manual.

Initially in the application, the applicant must prove that the project is not ‘commercially viable’. When assessing applications, commercial viability will be assessed using the OECD/DAC Ex Ante Guidance for Tied Aid. Applicants must demonstrate that according to the Ex Ante Guidance for Tied Aid the project tends to be commercially non-viable. At this stage it is not necessary to demonstrate commercial non-viability with a detailed cash-flow analysis. However, if projects tend to favour a conclusion of commercial viability, detailed information on this matter must be provided using the cash-flow analysis tool based on provisional figures and indicators.
Later in the project plan of the development phase, the applicant must prove the commercial non-viability with a detailed cash-flow analysis.

Energy projects tend to be commercially viable. For ORIO, an energy project is not allowed to be commercially viable within 12 years (even sustainable energy projects). Some of the factors that commercial viability depends on are whether it concerns a Greenfield energy project or whether it links to an existing system (this could be either the extension of an existing grid and/or an energy generation project with 100% uptake onto an existing grid). The latter is more likely to be commercially viable. It also matters whether the project concerns a rural or an urban project. Also, regarding project definition, we follow OECD guidelines (please see our policy regulations for the definition of a project). In the application it is therefore advisable to, amongst others, add information on the state of the grid (% transmission losses) and to what extent upgrading of the grid is part of the project. If the information is available, it is advisable to include information on the book value of the system in place. In addition, as the pro-poor impact is one of the criteria on which we score the project, it is important to be clear about the beneficiaries (rural/urban, income position). All in all, we need quite some information in order for us to be able to determine the commercial viability and the impact of energy projects. Therefore, if you decide to file an ORIO application, it is advisable to include a solid foundation of the commercial non-viability.

This is decided by the Dutch Ministry of Foreign Affairs. The list is based on the partner countries of Dutch Development Cooperation in combination with some selected Least Developed Countries and emerging markets. The Minister will review this list semi-annually.

The Netherlands Enterprise Agency makes payments exclusively in Euros. Possible exchange rate differences are not reimbursed by RVO.

• ILO Declaration on Fundamental Principles and Rights at Work
• IFC Performance Standards
• OECD Guidelines for Multinational Enterprises
• OECD Arrangement on Officially Supported Export Credits
• OECD Ex Ante Guidance for Tied Aid
• OECD Good Procurement Practices for Official Development Assistance (pdf)
• OECD Principles and Guidelines to Promote Sustainable Lending Practices in the Provision of Official Export Credits to Low Income Countries
• OECD Revised Council Recommendation on Common Approaches on the Environment and Officially Supported Export Credits (pdf)
• Atradius Dutch State Business Country Information

These are the official notices for the Facility for Infrastructure Development (ORIO) and the translated official Dutch policy letter on ORIO and DRIVE:

• 2012
  ORIO Official Publication (Staatcourant 8239 in Dutch)
• 2009
  ORIO Official Publication (Staatscourant 649 in Dutch)
• 2014