UNIDO’s INTEGRATED PROGRAMME FOR COLOMBIA 2002-2003

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UNIDO’s INTEGRATED PROGRAMME FOR COLOMBIA:

Component II, 2002-2003

Improving quality, competitiveness and performance of Colombian Industries in four industrial sectors of four regions in Colombia: Barrancabermeja, Bogotá, Eje-Cafetero, Ibague.

Despite the difficult situation described, the Colombian government remains fully committed to supporting UNIDO’s Integrated Programme (IP), which represents an important support to achieve higher industrial competitiveness and a significant private - public sector cooperation initiative. The evaluation of the IP work carried out so far has received very positive ratings in the Client Feedback Questionnaire which was completed by the Director of Industry in March 2002. The good appraisal was also reiterated by the new Government and the Private sector companies involved.

The IP actual implementation started in September 2000 and given the current level of funding will be completed in 2003. It focuses on three components, namely:

I - Capacity building for Investment and Technology Promotion, coupled to Investment Project promotion;

II - Improvement of Quality, Competitiveness and Performance of Colombian Industries; and

III - Methodologies/ Strategies for the sustainable development of selected SME clusters and supply chains (particularly in conflict areas).

UNIDO has also received a request for a Colombian Technology Foresight Program to be integrated into the IP. The Colombian Government is prepared to provide finance for current and future TF activities. Additionally, matching funds will be mobilized internationally.

IP RESULTS SO FAR AND EXPECTED DEVELOPMENTS IN THE NEAR FUTURE

Component I - A network of 16 CRIITs (investment and technology promotion focal points) has been established in Chambers of Commerce. International capacity building seminars have been implemented for the network and other relevant national institutions. The entire network has been trained in the use of COMFAR and been provided with the software. A UNIDO/Colombia Exchange has been set-up as a dedicated Internet site and over 30 investment project profiles have been prepared, screened and posted in that site. The capacity building, identification and preparation of investment projects are an ongoing process and there are already more than 40 additional profiles being prepared.

The intensive international promotion of Colombian investment opportunities began in Europe with the delegate program organized by our Paris ITPO, started in September 2002 and will last one year. The ITPO Paris will organize the promotion of Colombian projects in other European countries, in connection with other UNIDO ITPOs and focal points. The EUROPALIA/SIAL, which is a major annual agro-food event, was held in Paris 17 – 24 October this year and proved to be a rich opportunity for the promotion of Colombian projects and the identification of European demand which Colombia could respond to. Following this event the delegate will work on the follow-up of the contacts made in the event.

Component II - During the year this component has shown significant progress. It has a full team of national experts covering each region and respective group of pilot enterprises. All national experts have been certified in the use of UNIDO’s PHAROS software during an international seminar in Bogotá.

In each region 10 companies are participating in the program, in accordance with the sectoral approach adopted (Leather and footwear in Bogotá, Textiles and apparel in Ibague; Electronics in Eje Cafetero and Metal Mechanics in Barrancabermeja). All 40 participating companies have been certified in the use of PHAROS, which has been installed in all of them. During the international missions carried-out by UNIDO international experts to assist those companies, the opportunities for continuous improvement were identified in accordance with the performance needs of each company. Companies involved have recently expressed their high satisfaction with UNIDO’s support under this component. At national level, the component results have raised significant interest, with many regions and sectors expressed their interest to participate and benefit from the program. In particular, the National Oil Company ECOPETROL, has requested UNIDO’s assistance to conform its national supply chain and the building-up of that chain’s competitiveness, in view of the results achieved by this component activities in current ECOPERTOL suppliers in Barrancabermeja.

Component III - An identification of minisupply chains in conflict zones was carried-out. Five supply or production mini chains were reviewed and analysed and two supply chains were selected for in depth UNIDO technical intervention, namely, the Achira and La Chamba Mini Chains. UNIDO is providing assistance to support the sustainable development of those two mini production chains (MPC). That assistance includes solving technical bottlenecks, improving product design, productivity and quality, besides reducing ergonomic stress and environmental damage.

Quality	Component II
2.1 Four sectors of production chains identified and selected.	Production sectors confirmed.	Steering committees formed in four regions.
2.2 Surveys to select pilot enterprises concluded.	List of potential participants identified and validated with steering Committee.	Action plan developed
2.3 Seminars for the presentation of result of the survey organized in four regions	Seminars conducted	Most potential pilot enterprises attended the seminars
2.4 Pilot enterprises selected.	Benefits of the improvement programmes focusing on quality understood.	Pilot enterprises agreed to pay their contribution to the revolving fund.
2.5 PHAROS installed	Training conducted.	Pharos applied in 46 organizations in Colombia
2.6 Diagnostic analysis and efficiency improvement plans carried out.	International experts fielded to all regions.	Improvement plans to be implemented.
Minicadenas	Productivas
3.1 Minicadenas for UNIDO intervention short listed	5 priority cadenas selected	2 cooperation agreements made by MinDesarrollo (Achira, Chamba)
3.2 Detailed problem analysis conducted to support 5 MC’s	Analysis carried out by CORPOICA, Artesanías de Colombia, and ACOPI	Coordination committees of stakeholders established for the MC and bottleneck areas addressed.