Purpose of Report

Prepared for Industry Canada
By: Experco Ltd
With the participation of: Rosenberg International Inc.,
Kilmo International Inc., and Gateway Media Productions Inc.
Updated with assistance of Crystalus Strategic Documents Inc.

It is well known that Canada is an exporting country. Our exporting strength is recognized throughout the world. Traditionally we have done business with the United States and European countries and to some extent with emerging countries in Latin America and the Pacific Rim.

The export climate is in a state of evolution and, because of this, so are existing and on-coming Canadian exporters who are becoming aware of new opportunities and are adapting to profound new changes. In fact, movements like the disappearance of numerous dictatorships in the world replaced by democracies, the fall of protectionist barriers (the opening of markets), the propulsion of privatization schemes, the globalization of markets and the desire of developing countries to work in partnership (multi-disciplinary teams) with the private sector, are opening up the world to trade and to new business opportunities for Canadian industry (services, equipment manufacturers, builders, financiers).

However a problem exists. Canadian exporters are not necessarily well prepared to meet these new challenges for different reasons : They do not really know how to work within a multi-disciplinary team; they have little experience in structuring capital infrastructure projects within models like Building-Own-Transfer (BOT), Building-Own-Operate-Transfer (BOOT) or multi-disciplinary teams, etc.; they have limited financial engineering experience and are usually unaware of or inexperienced in funding sources like IFIs or in the technical assistance that is offered by Canadian and/or provincial agencies to help them in understanding how to develop these new international markets.

But the markets are there. In Latin America, South East Asia, China and in Eastern Europe, the need for capital infrastructure projects is staggering. Billions of US dollars will be spent/invested in the next few years in basic infrastructure projects such as potable water, environment, energy (hydroelectricity, gas and oil), transportation (ports, airports, highways and railroads) and agriculture. These markets will be open for bids on the world market particularly to those countries where technology is developed and who have had good diplomatic and humanitarian relations with the host country. Canada is privileged in the sense that it is recognized all over the world as a very developed country where technology is first-class and with whom most countries have excellent diplomatic relations.

While here in Canada we are working in a mature economy where business opportunities are becoming more and more difficult to find and where there are more regulatory constraints, increasing business opportunities are opening up in other parts of the world in sectors where we have capabilities. We must wake up to this new world order; get involved; change our basic traditions by adapting them to the different needs, cultures and requirements of foreign clients by structuring ourselves accordingly; by rolling up our sleeves and facing, with energy if not desperation, these challenges of the next century which is the development of infrastructure in emerging countries.

The Concept

The "roadmap" is not actually based on a road but on another great form of Canadian transportation, the train. So, it is a "railmap". The guide is easy to use and provides a clear and linear decision-making tool. In order to understand the premise of the guide one must be able to distinguish the different types of capital projects. There are three types of international capital projects: 

• projects bought by governments or their government-owned corporations and which typically enjoy some degree of sovereign guarantee
• projects bought by a private sector company
• projects of privatized infrastructure; in such cases, the rights of ownership are constrained by the terms of the Concession Agreement (e.g.: stipulated social objectives, stipulated terms of transfer of project to government, rate caps, etc.)

If your project is one of the first two types, you should get on another train, although some stations may be of interest. If your project is of the third type, sit down and hold on!

The train is travelling from station to station where passengers embark. A passenger represents "a possible step to follow". Every station has a specific number of passengers. When arriving at a next station, other passengers, specific to that other station, embark.

While the train is travelling from one station to another, it might shunt to secondary tracks for the reader to get more specific information (what are called secondary road maps). There are two types of secondary tracks : 

A- Export Assistance available to meet the requirements/needs of a passenger
B- Financial Institutions that can be sources of information and financing

In addition to this information, there are "links" to other information sources that may be of use and may provide additional information to the reader. These links are identified in the text through hypertext linking. These links are underlined.

Along the long trip from the Identification Station to the Construction and Operation Station, a caboose accompanies the train. The caboose has the necessary "tools" for the train to move efficiently providing examples and definitions.

To embark on this train, one must have the fundamentals required in developing the international market, these include: 

1- Corporate commitment to develop international markets
2- A clear marketing strategy;
- countries
- sectors of activity
3- Adequate marketing documentation

Now that you are ready to board the train we welcome you aboard and wish you a successful trip.

Info Export - Department of Foreign Affairs and Trade
http://www.dfait-maeci.gc.ca/english/trade/assist.htm