CAPACITY BUILDING

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• CAPACITY BUILDING

A CONTRIBUTION OF CIVIL ENGINEERING CONSULTANCY
FIRMS TO DEVELOPMENT AID
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AN APPROACH TO CAPACITY BUILDING
CAPACITY BUILDING IN DEVELOPING COUNTRIES HAS
BEEN PURSUED FOR SOME TIME BY THE MULTILATERAL
AGENCIES.
BUT, WITHIN THE WORLDS COMPETITIVE CONTEXT, THE
INSTINCT FOR SURVIVAL (OR PROFIT MOTIVE) OF THE
COMPANIES IS AN OBSTACLE TO AN EFFECTIVE TRANSFER
OF KNOW-HOW TO PERSONS AND ORGANIZATIONS WHICH
ARE EXTERNAL TO THE INTERNATIONAL COMPANIES.
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TO PROMOTE LOCAL PRIVATE CONSULTANCY FIRMS
BASED ON THE DEVELOPED COUNTRY MODEL
TO PROVIDE KNOWLEDGE DRIVEN SERVICES
LOCAL PRIVATE FIRMS
WHICH GENERATE ECONOMIC ACTIVITY DRIVEN BY THEIR
INSTINCT FOR SURVIVAL
INTELLECTUAL WORK TO OPTIMISE THE PROJECT
LFECYCLE INVESTMENT. PROVIDING PROFESSIONALISM,
TRANSPARENCY, EFFICIENCY, RESPONSIBILITY
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INDEX

• DEVELOPMENT BASED ON PRIVATE SECTOR
• POVERTY AT THE ROOTS OF UNDER-DEVELOPMENT
• OBJECTIVES OF DEVELOPMENT AID WITHIN THE CIVIL
  ENGINEERING SECTOR
• KNOWLEDGE-DRIVEN SERVICE PROVIDING COMPANIES
  (K-DSPCs)
• K-DSPC AND DEVELOPMENT AID
• THE ESTABLISHMENT OF A PERUVIAN K-DSPC WITHIN
  TYPSA GROUP
• CAPACITY BUILDING THROUGH THE ESTABLISHMENT OF
  LOCAL COMPANIES A SUSTAINABLE SYSTEM
• HOW CAN FINANCING AGENCIES FACILITATE THE
  DEVELOPMENT OF K-DSPCs?
• CONCLUSION

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1. DEVELOPMENT BASED ON PRIVATE SECTOR
Beyond humanitarian aid, development aid should
contribute to the establishment of an
entrepreneurial network

• with its own dynamics towards generating
  employment
• which will contribute in a sustainable manner, to
  create wealth
• driven, like in developed countries, by the
  instinct for survival

The developing countries also need private
industry as an agent to introduce dynamism into
the local economy. Sustainable development will
not be feasible unless a suitable entrepreneurial
structure will be established.
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2. POVERTY AT THE ROOTS OF UNDER-DEVELOPMENT
F.A.O. (1995)
at present we shall recognize that the
impossibility to finish with poverty is the main
reason why malnutrition still exists
WORLD WATER COUNCIL (2000)
the main problem is the lack of access to
drinking water and to sewage water treatment, as
a consequence of a lack of enough investment in
infrastructures.
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3. OBJECTIVES OF DEVELOPMENT AID WITHIN THE CIVIL
ENGINEERING SECTOR

• To propose, define, execute, manage and maintain
  the infrastructures.
• To increment the capacities of the local people
  and of the local firms to take care of the
  infrastructures.
• To establish an entrepreneurial network which
  will contribute, with the input of its own
  dynamics, to the development of the country.

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4. KNOWLEDGE-DRIVEN SERVICE PROVIDING COMPANIES
(K-DSPCs)
Civil engineering consultants are expanding
services to offer their clients comprehensive
solutions
K-DSPC's provide intellectual work to optimize
global investments along their whole life-cycle.
K-DPSC's are an important element of a country's
economy and prosperity which is growing and
evolving in developed and developing countries.
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5. K-DSPCs AND DEVELOPMENT AID

• K-DSPC's are ideal to manage Development Aid
• Professionalism, Transparency, Efficiency,
  Responsibility
• Value-added Solutions
• Technology, Experience, Resources.

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6. THE ESTABLISHMENT OF A PERUVIAN K-DSPC WITHIN
TYPSA GROUP (1 of 3)

• STAGE ONE

On 1974 TYPSA started its business in Peru, in
association with local firms, which used to
provide most of the human resources

• It was difficult for TYPSA to manage the
  satisfactory fulfillment of its contracts
• It was hard to assure the provision of high
  quality services
• The local business was limited to multilaterally
  financed projects
• Too much risk for too little benefit

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6. THE ESTABLISHMENT OF A PERUVIAN K-DSPC WITHIN
TYPSA GROUP (2 of 3)

• STAGE TWO

TYPSA registered in Peru as a local branch office.
This allowed TYPSA to hire local professionals,
but TYPSAs position within the local market
(with penalties on local proposals of 20)
remained disadvantageous.
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6. THE ESTABLISHMENT OF A PERUVIAN K-DSPC WITHIN
TYPSA GROUP (3 of 3)

• STAGE THREE

TEGEPSA (2002), A LOCAL COMPANY WITHIN TYPSA
GROUP

• Working in Peru with Peruvian professionals,
  trained in TYPSAs procedures within TYPSAs
  Quality Assurance System.
• A modern company, with updated technical
  capacities which will remain in Peru creating
  sustainable capacities.
• Adding resources to TYPSAs capacities

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7. CAPACITY BUILDING THROUGH THE ESTABLISHMENT OF
LOCAL COMPANIES A SUSTAINABLE SYSTEM

• Driven by their purpose to generate profit.
• Constituted by local professionals, trained by
  the international company and integrated within
  it.
• Generating employment.
• Generating knowledge and management capacity
  within the country, facilitating the solution of
  its problems and pushing, from inside the
  country, towards its development.

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8. HOW CAN FINANCING AGENCIES FACILITATE THE
DEVELOPMENT OF K-DSPCs?

(1 of 2)

• Assuring a reasonably stable service demand at
  the country.
• Prioritizing professionals who belong to the
  companies above free-lancers.
• Establishing fair and transparent
  results-oriented proposal evaluation criteria.
• Contracting with a sole company, or with a sole
  group of companies, complete services, rather
  than contracting partial services to different
  companies or groups of companies.
• Requiring the application of quality assurance
  systems on all assignments.

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8. HOW CAN FINANCING AGENCIES FACILITATE THE
DEVELOPMENT OF K-DSPCs?

(2 of 2)

• Avoiding price competition between private
  companies and NGOs, universities and other
  organizations which receive financial support not
  related to payment for their services.

• Prioritizing assignments to companies above
  assignments to individuals.

• Giving priority to professionalism, experience
  with similar assignments, know-how and
  technological resources.

• Prioritizing the characteristics of the companies
  above the ones of the individuals.

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9. CONCLUSION
Civil Engineering Consultancy firms - wich are
transforming themselves into Knowledge-Driven
Services-Providing Companies - are the best
agents to collaborate with governments and with
multilateral agencies in an efficient manner to
make a sustainable development feasible. Developm
ent Aid should promote the conception, execution,
operation and management of infrastructures and
the establishment of entrepreneurial networks,
which will reinforce the private sector and which
will promote sustainable development.
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• José R. González Pachón
• jpachon_at_typsa.com
• www.typsa.com