2012
ANNUAL REPORT
SIPU staff 2012
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Contents Two Decades of Public Service Development
2
The SIPU Story
3
Our Business
4
Our Corporate Family
5
Where We Work
6
SIPU Projects 2012 – Ongoing and Finalised
8
Bringing the World to Sweden
10
Strengthening the Voice of Society
12
New Challenges for Urban Planners
14
Building Effective Institutions & Governments
15
Finding out What Works and Why
16
Stewarding Public Resources for Public Good
18
Professional Training for Swedish Civil Servants
20
Managing Sustainability
23
Gender Equality – a Human Right
23
Supporting Inclusive Economic Growth
24
Annual Report for the Period 1 January – 31 December 2012
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SIPU International 1992 – 2012
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12
14
16
20
editorial notes
SIPU International AB Viera Larsson, Ordbildarna AB cover and staff photos Nicholas John Stevens printed at Temo Mailer AB manuscript
graphic design
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contact
SIPU International AB Box 45113, SE-104 30 Stockholm, Sweden Dalagatan 7 website www.sipuinternational.se • e-mail info@sipuinternational.se phone +46 (0)8 698 06 00 • fax +46 (0)8 698 06 10 postal address
visiting address
36 annual report 2012 • SIPU International AB
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Two Decades of Public Service Development
W
e are now reporting on 2012, the 20th year in the life of SIPU International. We are proud of our history and we dedicate a special section in this report to our anniversary in which we try to depict the growth and development of SIPU into what it is today. It is a story about 5 civil servants who became entrepreneurs, overnight and not fully by their own will. By delivering quality services, upholding an ambitious level of corporate growth and applying a sensible recruitment policy, they made the company grow and develop to what it is today. Faint traces of public administration culture can still be spotted, but on the whole the transformation to a contemporary consultancy company is accomplished. What about the next 20 years? SIPU will continue to develop its offer to the public sector, be it in Sweden, Europe or other parts of the world. We will become smarter, sharper and more versatile in our ability to assist our clients, who will be found in a wider spectrum than today. In Sweden, SIPU is mostly known for our professional training of civil servants on central and local levels. We are constantly improving our market position and our offers. We are now the leading Swedish provider of training in such areas as eu-trainings, legal aspects of civil service and public procurement. In the last few years we have strengthened our position on the Swedish market by acquiring framework agreements and assignments for an increasing number of Swedish public agencies. Internationally, we will continue to support reform and facilitate change in the public sector as a contractor to the main donors in development cooperation. But we will also take on new roles. For example, in 2012 we became the only Swedish company and one of few international organisations, accredited to conduct validations for the Extractive Industries Transparency Initiative (eiti).
We are since 2007 part of a Finnish-owned international corporate group, FCG. This brings opportunities to SIPU that we have only just begun to take full advantage of. The next 20 years will witness an increasing number of joint ventures and systematic cooperation between the companies of the group. Together we will develop new products and services and venture into new markets. The most recent effort is the staff surveys SIPU is now launching for Swedish municipalities. It is a service which is exclusively designed for local government and meant to facilitate continuous work with the psycho-social work environment as well as sustainability issues in the workplace. By building up a database with a large majority of Swedish municipalities, the opportunities for benchmarking and analysis will be endless. The service can easily be expanded to Finland and other Nordic countries which will also enrich its usefulness. After 20 years, SIPU International is more dynamic than perhaps ever before. This is accentuated by the fact that we are also in the middle of a generation shift, and all the new staff are bringing new ideas and experience to the table. Small wonder that I am looking forward to the next two decades.
Anders Olin Managing Director, SIPU International AB
photo
annual report 2012 • SIPU International AB
Nicholas John Stevens
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The SIPU Story
SIPU International is Scandinavia’s leading
consultancy and training organisation specialising in public sector development. Our clients include national, regional and local governments, parliaments as well as private companies and nongovernmental organizations. Our assignments and projects are commissioned by donor organisations such as Sida, the European Union, the World Bank, and others. As development consultants we allow for the clients’ experiences, competencies and values to determine our role. Depending on our clients’ needs and priorities, we can be advisors, change managers, hands-on experts, who »get things done«. We adjust our assistance to our clients’ own path to improve knowledge, skills and capacity. Having expertise in-house for our core areas is our warranty for quality. Our training events take place in Sweden with Swedes, or abroad with multinational groups. We are known for our innovative and dynamic approach to training. We recognize that every participant has his or her own knowledge and experience. By working with different participatory techniques for problem solving and training we tap the diversity of personal perspectives and resources to enhance learning and development. SIPU International employs 40 staff in headquarters and another 50 in project offices abroad. We also have an extensive international network of experienced and senior short-term experts and partner organisations in all areas of public sector development and related fields. Currently operating in more than 20 countries, SIPU has lent its expertise to over 90 countries across the globe.
Our History
1979
SIPU is established as the central public agency for training of civil servants
1981
SIPU’s first step on the international arena is taken in Sub-Saharan Africa: Botswana
1990
SIPU starts working in Eastern Europe in a series of projects addressing the transition process in the Baltic countries and Russia
1991
A cooperation between SIPU and The Mongolian Institute of Administration is established as SIPU’s first project in Asia
1992
The public agency SIPU is privatised and SIPU International AB is established
2001
The first project in Latin America is started in El Salvador
2007
SIPU International AB joins FCG Group
2010
SIPU International AB starts providing professional training in Sweden
2012
SIPU proudly looks back at 20 years as a private company
annual report 2012 • SIPU International AB
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Our Business
What we do SIPU International has a wide range of services which are organised into business areas. In 2012, Civil Society Development has dominated in terms of turnover, followed by Good Governance and PAR and Public Finance Management. Market Development and Evaluations both represent a fair share. Up and coming in 2013 and onwards will be Environmental Management and Urban Development. Swedish Professional Training is an important and growing area which we will now split into subdivisions as business areas. SIPU will from now on offer both training and consulting in Public Procurement, eu Project Cycle Management, Planning and Technical Management and Administration & Law.
As % of Turnover 2012
Civil Society Development 26%
Natural Resources & Environmental Management 6%
Local Government & Urban Development 1% Swedish Professional Training 10%
annual report 2012 • SIPU International AB
Public Financial Management 16% Evaluation & Project Cycle Management 12%
As % of Turnover 2012 Global Programmes 21%
Africa 9% Asia & Pacific 6%
Europe EU 11% Near & Middle East 2% Latin & Central America 2%
Europe non–EU 49%
As % of Turnover 2012
Who we work for In our international assignments we are often contracted by an international donor agency to work with a beneficiary organisation in a given country. Often, the contracting client and beneficiary are the same. The chart illustrates the distribution of clients. The beneficiaries for each assignment are listed on page 8 and 9. 57% of our business is with Sida, our oldest and largest client. This share has increased from last year mainly due to the large cso assessment assignment. Also increased from 2012 both in relative and absolute terms are the Swedish public and private organisations. This is in line with SIPU’s strategy for growing both in Sweden and abroad.
Market Development 11%
Gender Equality 3%
Where we work The major trend in our geographic presence over the last few years is a concentration to Europe. Our increased operations in Sweden and the neighbourhood programmes outside the eu are behind this development. Our presence in Africa decreased slightly in 2012 but we see East and Southern Africa, as well as the mena-region, as key growth areas for SIPU in the coming years.
Good Governance & Public Administration Reform 15%
Swedish Public & Private Organisations 11%
Other 7%
Sida 57%
EU 25%
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Our Corporate Family SIPU International is one of seven international subsidiaries of FCG – Finnish Consulting Group; a multi-industry consulting company operating worldwide.
FCG produce services ranging from
decision-making support and operational development to community planning with attention to environmental values. The strategy is to provide services tailored to meet the specific needs and requirements of FCG’s various clients. This is done by combining core project management capabilities with substance expertise, in cooperation with a variety of expert organisations globally. These partnerships include universities and other educational establishments, economic and social research organisations, public sector organisations, private consultancies and other companies, ngos and independent consultants. FCG have been involved in creating well-being in more than 5 000 projects across the world with the experience of implementing complex, large-scale development projects in all our main sectors. The turnover of 2012 was 66,5 million Euros for FCG. The number of FCG Group’s employees is approximately 700. The Managing Director of FCG is Mr. Ari Kolehmainen, M.Sc. (Adm.). FCG’s main owner is the Association of Finnish Local and Regional Authorities with ownership of 94%.
FCG’s subsidiaries operate directly under the parent company. FCG’s international subsidiaries are: • Anzdec Ltd, New Zealand • Oü Invicta, Estonia • Finnish Consulting Group SRL, Romania • SIPU International AB, Sweden • POVVIK AD, Bulgaria. The domestic subsidiaries in Finland are: • FCG Training and Consulting Ltd • FCG Design and Engineering Ltd • FCG Knowledge Management Ltd • FCG International Ltd.
»FCG – Working for well-being«
annual report 2012 • SIPU International AB
See also www.sipuinternational.se
6 Afghanistan Albania Algeria Angola Armenia Bangladesh Belarus Benin Bhutan Bolivia Bosnia-Hercegovina Botswana Brazil Burkina Faso Cambodia China Colombia Costa Rica Croatia Dem. Rep of Congo Denmark Dominican Republic East Timor Ecuador Egypt El Salvador Estonia Ethiopia Finland Gambia Georgia Ghana Guatemala Guyana Haiti Honduras Hungary India Indonesia Iraq Israel Jamaica Jordan Kenya Kosovo Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Lithuania Macedonia Malawi Mali Mauritius Moldova Mongolia Montenegro Morroco Mozambique Namibia Nepal Nicaragua North Korea Norway Pakistan Palestine Panama Peru Poland Romania Russia Rwanda Senegal Serbia Seychelles Sierra Leone Slovakia Slovenia South Africa Sri Lanka Sudan Sweden Switzerland Syria Tajikistan Tanzania Thailand Tunisia Turkey Uganda Ukraine United States Uruguay West Bank & Gaza Vietnam Zambia Zimbabwe
annual report 2012 • SIPU International AB
Where We Work
Albania: SIPU is supporting the Albanian ombudsman to protect and promote human rights and the rule of law in Albania. See page 15.
Nicaragua: In Nicaragua and two other countries in 2012, SIPU piloted a »reality-check« approach to evaluation, which involves immersion in the communities receiving Swedish support. See page 16–17.
SIPU’s Presence 1992 – 2011 SIPU’s Presence 2012
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Sweden: In 2012 SIPU greatly expanded its popular courses offering to Swedish civil servants. See pages 20–23. Ukraine: In Ukraine SIPU is running a 4 year Budget Reform and Aid Management (BAM) project, together with the Ministry of Finance. See pages 18–19.
Turkey: SIPU is leading the Technical Assistance to Civil Society Organisations (TACSO) project, developed to strengthen the role of civil society in the Western Balkans and Turkey. See pages 12–13.
Kenya: SIPU helped develop a National Urban Development Policy for the Ministry of Local Government. See page 14.
Vietnam: In 2012, 80 public officials from South and East Asia came to Stockholm for training in Local Environmental Management in Urban Areas. See page 23.
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SIPU Projects 2012 – Ongoing and Finalised
EUROPE
ASIA
AFRICA AND MIDDLE EAST
Project title
Country
Client
Financier(s)
Value of contract in EUR
Evaluation FWC: Mid-Term Review of the Malonda Program, July 2010 – June 2013
Mozambique
Sida
Sida (call off)
99 000
PA/Demo, PFM Support in Liberia
Liberia
Sida
Sida (call off)
246 200
Support to the Development of Market & Value Chains in Agriculture in Liberia
Liberia
Sida
Sida
100 000
EDF – Long-Term Technical Assistance to the General Auditing Commission, Liberia
Liberia
General Auditing Commission
EC
800 000
PA/Demo, Support African Union Advisory Board Against Corruption
Ethiopia, Tanzania
Sida
Sida (call off)
50 967
MD-FWC: Consultancy Support to the Ministry of Agriculture to Conduct a Survey on Value Chains for the Agricultural Sector Development Support Programme (ASDSP)
Kenya
The Government of Kenya
Sida (call off)
81 000
Evaluation FWC: Evaluation of Liberia Dujar Association
Liberia
Sida
Sida (call off)
32 859
Evaluation FWC: Review of Two Facilitators – The Swedish Geological Survey (SGS) and the Swedish Trade Council (STC)
South Africa
Sida
Sida (call off)
26 022
MD FWC: ToR Development to the Project Maghreb Regional Project – Public Employment Services in Algeria, Morocco and Tunisia
Regional
Sida
Sida (call off)
3245
NIMES National Integrated Monitoring and Evaluation System
Kenya
The Government of Kenya
Sida
PFM Reform Strategy
Kenya
Sida
Sida
66 752
Support to Audit Services, Sierra Leone
Sierra Leone
Auditor General
Dfid
956 926
Consultancy Support to EDM Mozambique
Mozambique
Sida
Sida
37 085
National Urban Development Policy in Kenya
Kenya
Ministry of Local Government
Sida
115 349
Strengthening IFAPAs Municipal Training
Mozambique
Local government
NUFFIC
ITP – Local Democracy and Self-Governance
Regional/ Africa
ICLD
Sida
2 186 393
ITP – Human Rights Towards Gender Equality, MENA Region
Regional/ MENA
Sida
Sida
1 556 502
Evaluation FWC: Evaluation of Sida’s Support to Bir ZeitUniversity Media Development
Palestine territories
Sida
Sida (call off)
59 900
Strengthening of the State Audit and Administrative Control Bureau
Palestine territories
State Audit and Administrative Control Bureau
EU
66 752
Development of a Master Programme in Public Administration
Vietnam
Uppsala University
Uppsala University
309 412
Implementation of a Master Programme in Public Management
Vietnam
Uppsala University
Uppsala University
793 405
Technical Assistance to Implement One-Stop Shop Public Service Delivery in Bhutan
Bhutan
The Government of Bhutan
Swiss Development Cooperation
177 331
Danish Support to the Albanian Ombudsman
Albania
Albanian Ombudsman
DANIDA
661 186
Support to the Albanian Ministry of Interior (MOI) / Albanian State Police (ASP) on Community Policing
Albania
Albanian State Police
Sida
Lot 11, Support to the Treasury Service of the Ministry of Finance of Georgia
Georgia
Ministry of Finance, Georgia
EC (call off)
89 746
PA/Demo, Sector Support to Education and Forestry in Kosovo
Kosovo
Swedish Embassy, Kosovo
Sida (call off
315 053
EU-Ukraine Advisory Services, (PA/Demo FWC)
Ukraine
Sida
Sida
214 585
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1 055 635
38 745
2 803 793
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GLOBAL LATIN AMERICA
SWEDEN
EUROPE
Project title
Country
Client
Financier(s)
Value of contract in EUR
TACSO – Capacity Building of Civil Society in the IPA Countries (Western Balkans and Turkey) PHASE 2
Regional/ Balkan
EU
EU
Capacity Building of Georgian Leadership
Georgia
Georgian Foundation for Strategic & International Studies
Sida
739 064
State Tax Service of Ukraine
Ukraine
Sida
Sida
513 205
Public Administration Reform
Serbia
Ministry of Local Government
Sida
936 854
Capacity Development of the Entity Associations of Municipalities and Cities
Bosnia & Herzegovina
Sida
Sida
133 000
Budget Reform and Aid Management in Ukraine
Ukraine
Ministry of Finance
Sida
2 450 980
Fostering Interventions for Rapid Market Advancement (FIRMA)
Bosnia & Herzegovina
USAID & Sida
USAID & Sida
3 282 949
Governance Accountability Project (GAP) 2
Bosnia & Herzegovina
Chemonics International
Sida
85 350
ITP – Environmental Governance and Management with EU Focus
Regional/ Balkan
Sida/ Naturvårdsverket
Sida/ Naturvårdsverket
52 073
Training Courses for the Swedish Public Sector
Sweden
Various public sector clients
Various public sector clients
835 557
Customised Education and Training
Sweden
Various public sector clients
Various public sector clients
213 440
Course Administrative and Mentor Support
Sweden
The Swedish Public Employment Service
The Swedish Public Employment Service
183 500
Evaluation FWC: Review of Sida’s Program for Development Research (U-forsk)
Sweden
Sida
Sida (call off)
Organisational Assessments of Civil Society Organisations (CSO) in View of Possible Qualification as Sida’s Framework and/or Strategic Partner Organisation
Sweden
Sida
Sida
MD FWC: M4P (Making Markets Work for the Poor) Training
Sweden
Sida
Sida (call off)
Mid-Term Review of the Swedish Programme Global Development Cooperation in the Area of Chemicals
Sweden
Swedish Chemicals Agency (Kemikalie-inspektionen)
Swedish Chemicals Agency
SCB International Payroll Services
Sweden
SCB
SCB
92 988
ITP – Administration Services National Employment Agency 3
Sweden
Swedish National Employment Agency (Arbetsförmedlingen)
Swedish National Employment Agency
26 679
Evaluation FWC: Evaluation of Support to Political Parties in Bolivia
Bolivia
Sida
Sida (call off)
67 838
Dominican Republic IDOM
Dominican Republic
Government of Dominican Republic
EC
18 487
CSO Reality Check: A Multi-Year Results-Oriented Evaluation of Sida’s Support to Civil Society Actors in Developing Countries via Swedish CSOs
Global
Sida
Sida
MD FWC: Support to PIDG
Sweden
Sida
Sida (call off)
Evaluation of the Danida’s Fellowship Programme (DFP)
Global
DANIDA
DANIDA
ITP – Local Environmental Management in Urban Areas
Global
Sida
Sida
2 813 895
ITP – Human Rights Towards Gender Equality, Global
Global
Sida
Sida
2 903 836
ITP – Private Sector Growth
Regional/ Africa
Sida
Sida
1 993 750
ITP – Strategic Business Management
Regional/ Africa
Sida
Sida
1 984 000
6 908 676
38 521 2 808 989 92 255 112 506
591 716 12 400 190 532
annual report 2012 • SIPU International AB
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Business area: International Training Programmes
Bringing the World to Sweden International Training Programmes (ITPs) are financed by the Swedish International Development Cooperation Agency (Sida), as part of its bilateral development assistance. The programmes are designed for key individuals qualified to participate in important reform processes in their home countries. By organising ITP programmes, SIPU International supports and strengthens the participants’ home institutions in their efforts for change at organisational and sector levels. In all training-related services, we apply a highly participative approach where all participants contribute their respective experience and knowledge.
The planning of the programme is very relevant to my professional needs. Participant, Local Environmental Management in Urban Areas
project brief
ITP Local Environmental Management in Urban Areas ● SIPU
International in collaboration with sweco Environment executes an International Training Programme on Local Environmental Management in Urban Areas targeted at Countries in South East Asia. Previously the programme targeted Africa and Eastern Europe. By combining expert lectures on the Swedish experience, environmental management methods and global trends with field trips and group work and discussions, the programme aims at strengthening the participants’ capacity in the field of Local Environmental Management in Urban Areas with a main focus on increasing participants’ ability to prioritise where resources are scarce. The programme supports participating
organisations’ own plans for change by offering participants a Swedish mentor with expert knowledge on change management and environmental management. The programme draws participants from local or regional environment administrations or other local/regional authorities, where environmental management is a key element of the work. The programme also welcomes participants from private sector firms that collaborate with local environmental authorities or ngos working locally. Project countries: China, Cambodia, Bangladesh, India, Indonesia, North Korea and Vietnam. ●
Before I came here I could only see the tip of the iceberg. Participant, Local Environmental Management in Urban Areas
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project brief
ITP Advanced International Training Programmes in Private Sector Development â—? The
world is rapidly changing and business leaders are at the sharp edge of this transformation. New technology, changing consumer preferences and globalization of markets are creating challenges and opportunities for businesses everywhere. SIPU International, in close collaboration with Jarskog Konsult, executes two new International Training Programmes in Private Sector Development: Private Sector Growth and Strategic Business Management. The objective of these programmes is to contribute to the development of a dynamic and sustainable private sector, and to strengthen collaboration between the private and public sectors for better functioning markets and improved integration in world trade. The programmes support individuals and teams in their work to develop plans for change and combine international, regional and Swedish perspectives on how to promote private sector development.
Private Sector Growth targets key officials working with national private sector development and Strategic Business Management is designed for business leaders. The training programmes are interlinked running parallel with common sessions opening up for dialogue between the two groups. Target countries: Africa: Kenya, Tanzania, Uganda, Rwanda, Ethiopia; Europe: Bosnia & Herzegovina, Kosovo, Moldova, Ukraine, Georgia. â—?
The programme gave me knowledge of practical tools and strategies required to affect change in my own organisation. Participant, Private Sector Growth
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Business area: civil society DEVELOPMENT
Strengthening the Voice of Society Civil society has the potential to contribute to development and the further democratisation in many countries. Civil society organisations have reached different levels of development and effectiveness, and they exhibit diversity with regards to type of activity and degree of capacity development. At the same time, they share a number of key challenges to becoming significant actors in the development of their own country, whether as legitimate advocates with and for citizens, as partners of government in policy dialogue or as participants in the wider process of societal reform. SIPU International has during the last ten years acquired substantial experience of assisting and facilitating civil society development, through measures aimed at strengthening the institutional framework for civil society actions as well as through capacity development of individual organisations. On the request of Sida, SIPU International has also developed a methodology for assessment of civil society organisations’ capacity. project brief
Strengthening civil society in Western Balkans and Turkey â—?A
strong Civil Society plays a key role in the European harmonisation process, representing, as it does, a wide range of interests and alternative views in society. Civil Society Organisations (csos) can help transform their societies by promoting basic values of democracy, human rights, good governance and the rule of law. They can drive forward required reforms that will assist the countries concerned in their aspirations to become eu members. The Technical Assistance to Civil Society Organisations (tacso) project is a large scale effort to support civil society in all eight ipa countries. SIPU International, together with four European ngo partners was awarded this ec contract in 2009. Services are provided during annual report 2012 • SIPU International AB
a period of four years until August 2013. Based on the success created by tacso, the European Commission has decided to extend the project through a third phase of cooperation. The project involves over 30 professionals in ten offices all over the region. Coordinated from a hub in Sarajevo, project activities span from institutional framework interventions (policies, legal improvements, funding mechanisms, etc.) to training and advocacy campaigns, covering both regional and national issues and dimensions. Each country programme is firmly based in the local civil society context and is governed by a local advisory board with stakeholder representation including national csos, government bodies and donors. This approach ensures that the programmes are relevant and addresses the actual needs and challenges of the csos in each national setting, and that the results are sustainable. Needs assessments conducted by the project show that currently csos have limited influence in decision-making processes. Concrete action will spur others and create a momentum to develop a sense of common agenda and strengthen cohesion in the third sector. Although there are many strong organisations, insufficient organisational capacity is common, especially among organisations in rural areas. The project has access to both regional and international experts who assist the organisations in the further strengthening of their capacities.
13
The enlargement of the European Union has been pursued as the principal means of ensuring lasting peace and stability. Today, this strategy is focused on assisting the countries of South-East Europe for accession to the EU. The EU has created the Instrument for Pre-accesion (IPA) for this purpose. The instrument finances projects in Albania, Croatia, Bosnia and Herzegovina, Kosovo under UNSCR 1244/99, FYR of Macedonia, Montenegro, Serbia and Turkey.
The project reaches out and provides assistance also to smaller organisations in remote areas. The most advanced csos, based in capitals, and with developed programmes, benefit from regional meetings and trainings together with like-minded organisations from the other ipa countries and eu member states. Another important instrument of learning and informationsharing is the regional web portal with links to eight national web sites. The main expected outcomes of this project are: • Strengthened capacity of csos to further their agenda, and thereby • Increased influence of csos in democratic decision-making processes • Improved capacity of csos in service delivery • Strengthened cooperation and networking among the csos and between external stakeholders and csos • Raised public awareness of civil society and its organisations. The primary means of assistance are capacitybuilding activities such as trainings, e-learning, exchange of experience, advising, coaching, etc. and networking activities such as kick-offs, partnerships and information events both at the national and regional level. The first training topics include Fundraising for csos, Developing and managing eu funds, Advocacy and
lobbying, Civil participation in the decision making process and cso management. Particular attention has been given to the task of designing support schemes which are flexible enough to respond to both the needs of more advanced and the less developed csos. As project implementation has progressed, issues concerning the institutional framework for civil society as well as regional networking have become increasingly important. ● Technical Assistance to Civil Society Organisations Western Balkans and Turkey, European Commission, August 2009 – August 2013 For further information visit www.tacso.org.
During TACSO tenure we have delivered over 200 trainings on various topics. In all our trainings, we applied a participative approach using inclusive methodologies and encouraging dialogue and debates. Palle Westergaard Team Leader TACSO
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Business area: Local government and urban development
New Challenges for Urban Planners Effective and service oriented local government makes a difference for poor people. SIPU supports the development of local government institutional frameworks and governance structures, effective support systems and gives advice regarding the scope and content of service delivery. Strategic urban planning is a tool for the management structure. Such a sustainable plan integrates the spatial development, environmental conditions, social needs and economic development under one accepted vision, based on the specific urban profile. It sets out the principles for decision making. SIPU’s approach to urban development is
that it is an integrated process in which the economic, social, environmental and geographical/ spatial factors are planned. Local government development is usually broader and involves support to the entire governance structure, its administrative support systems as well as support to service delivery areas. Recent services provided by SIPU include: • Integrated municipal development, built on comprehensive urban planning • Township upgrading and community development • Innovative and ecological solutions to low cost housing, including housing support centres • Participatory planning • Environmental urban sustainability • Local area planning • Institutional development and human resources management • Municipal financial management and budgeting • Development of service delivery on local level and coordination of service delivery mandates for other public sectors.
annual report 2012 • SIPU International AB
project brief
National Urban Development Policy for Kenya ● SIPU
has, in collaboration with a Kenyan Consultant, provided support to the Ministry of Local Government to facilitate and backstop a stakeholder-driven process leading to the formulation of a National Urban Development Policy (nudp). The purpose of the policy is to enhance the role and contribution of urban centres to national socio-economic development and to strengthen governance, development planning, urban investments, delivery of infrastructure and related services to contribute to Kenya’s Vision 2030. The Government of Kenya has emphasised the need for a nation-wide consultative process and much of the work has focussed on this ambition. SIPU has taken part in and supported all parts of the process, such as thematic work groups, consultative meetings, dissemination of the preparation process, as well as in the drafting of the entire nudp. We have provided input to the communication strategy and conducted benchmarking visits. This policy has been endorsed by Cabinet and passed by the National Legislature. What remains to be done is the dissemination of the new urban policy, to make it happen. ●
Business area: Good Governance and Public Administration Reform
15
Building Effective Institutions & Governments The state, rule of law and accountability are the basis of political order. A strong state counterbalanced by a strong civil society helps to ensure accountability upwards as well as downwards and creates conditions for democracy to function. Political and economic institutions that are inclusive contribute to making socioeconomic development sustainable and fair and equitable for all citizens. project brief
Community Policing in Albania ● Since
March 2012 SIPU runs a project together with the Albanian State Police (asp) on Community Policing. The project is sponsored by Sida and will go on until 2015. The project aims at improving asp’s ability to provide security and safety with the citizens’ needs in focus. Furthermore it aims at increasing the public trust in asp and willingness to cooperate to reduce crimes.
The project has three goals: 1. The implementation of an evidence-based Performance Management System. This will allow the asp to track their performance and be able to strategically deploy suitable resources to support activities in an effective and efficient manner. 2. The police are able to solve and prevent more crimes with the assistance and cooperation of the public. Increased trust and level of cooperation between the asp, local government, central government, ngos and communities. 3. Stakeholders dealing with domestic violence, including the asp, are better able to deliver services to reduce incidents of domestic violence. Improved coordination between the asp and other actors to ensure adequate treatment of domestic violence cases The project is coordinated by a Project Management Team (pmt) with a staff of six. In addition to pmt’s own capacity a number of project activities is being implemented by local partners that
Albanian Ombudsman Mr Igli Totozani (in the middle)
are contracted to the project. Project activities entail a number of studies, awareness campaigns, trainings, seminars and also the establishment of a small grant scheme for strengthening relations between the police and the public. ● project brief
Support to the Albanian Ombudsman ● SIPU
and Danish Institute for Human Rights (dihr) has been awarded a Danida funded project in support for the Albanian Ombudsman. The project will run for four year and includes cooperation in the fields of strategic planning, cooperation with media and civil society, prison monitoring and the ombudsman presence at the local government level. ● annual report 2012 • SIPU International AB
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Business area: Evaluation and Project Cycle Management
Finding Out What Works and Why Evaluation has a central role to play in today’s international development cooperation. It is promoted and advanced as a key tool for ensuring development effectiveness, transparency and accountability in policy-making, social and organisational learning. When SIPU International carries out evalu-
ations, professionalism is our guiding value. To us, this means that: • High quality evaluations should be based on well-grounded methodologies and carried out by professionals. We only work with qualified evaluation consultants with proven track records in carrying out evaluations. • High quality evaluations should be useful. Understanding the information needs of our clients/commissioners is therefore a primary focus when designing and carrying out evaluation assignments. Through a close dialogue with the commissioner, and by involving main stakeholders throughout the evaluation process, we ensure utility of our evaluations.
Evaluation has become a core competence for SIPU International and is today one of our fastest growing business areas. In 2012, we established an Evaluation Unit with three full-time staff committed to constantly improving our evaluation work, expanding our services across clients, thematic areas and methodologies. The unit brings a comprehensive expertise in this business area guaranteeing quality design, implementation and qa of evaluation projects. With close connections and contacts with leading experts and research centres within the global evaluation community, the Evaluation Unit staff have extensive experience of both managing and conducting all from rapid assessments to largescale, complex evaluations.
project brief
Evaluating Danida’s Support to Capacity Development in Developing Countries ● In
spring 2012, SIPU International – in collaboration with Oxford Policy Management – carried out an evaluation of Danida’s Fellowship Programme (dfp). The objective of the dfp is to support capacity development in developing countries through the organisation of a wide variety of different types of training activities, including both short
annual report 2012 • SIPU International AB
courses and longer-term postgraduate study. The purpose of the evaluation was to document and assess the activities supported by Danida, and related results, with an aim to contribute to both accountability and learning. To this end, the evaluation assessed the different achievements of the programme, as well as the framework and processes for achieving the results. ●
17
Members of a household in Chinandega, Nicaragua during the pilot phase of the Reality Check Evaluation. project brief
A Multi-Year Evaluation Based on Poor People’s Perspectives ● In
June 2012, SIPU International – in collaboration with the Institute of Development Studies (ids) and iod parc – was contracted by Sida to carry out a multi-year results-orientated evaluation of Sida’s support, via Swedish Civil Society Organisations (csos), to civil society actors in developing countries. The main purpose of the evaluation is to explore how and why (or why not) this support contributes to the overall objectives of Swedish support – that is, to create conditions to enable poor and discriminated people to improve their living conditions and quality of life.
This innovative evaluation is using a bottom-up perspective (a so-called Reality Check) where the voices of poor and discriminated people are at the very centre. To collect these voices, the evaluation team uses immersions (i.e. overnight stays in people’s homes or nearby), participant observation and listening. Transparency in the method, the process and the results is integral. The evaluation started in August 2012 with a pilot study in Nicaragua, Pakistan and Uganda and will continue with two follow-ups in 2013 and in 2014, in order to observe changes. ●
project brief
Civil Society Organisations’ Qualification as Sida’s Framework Organisations ● Swedish
popular movements have been key players since the emergence of the Swedish Government’s bilateral development cooperation work. Support via csos has represented approximately ten per cent of Sida’s total funds since he 1980s. The system of framework agreements was established in order to grant these organisations greater freedom, to support long-term approaches to the planning and implementation of activities, as well as to allow for continuous dialogue with Sida concerning policy and methodological work.
Starting in the summer 2012, SIPU International carried out organisational assessments of 17 csos seeking to qualify for framework agreements with Sida. The assessments will be used as support in Sida’s upcoming decisions concerning the possible qualification of these organisations as framework organisations. As of 2012, csos are assessed against a number of qualification criteria. As part of the assignment, these criteria were operationalised by SIPU International in order to be applied in the organisational assessments. ●
annual report 2012 • SIPU International AB
18
Business area: public finance management
Stewarding Public Resources for Public Good Public Finance Management (PFM) is about ensuring that public resources are used effectively. It entails the development of systems, organisations and frameworks which should enable effective, efficient and transparent management of public finances. It is not an end in itself but a means to enhance the benefits and development of other areas such as social service delivery, natural resource management, effective governance and democracy, accountability and transparency.
SIPU International adopts an integrated
approach to Public Financial Management. With an integrated approach we are able to combine strengthened public finance management in systems and organisations with a sector perspective and its objectives. SIPU International has a clear understanding of the relationships between political and institutional processes and policy reform, not least the links between policies, budget and expenditure management and institutional and organisational change. Assessing these links is a key aspect to a successful implementation of any reform process, especially within public financial management. SIPU International has a strong track record in all sub areas of pfm such as budget formulation and mtefs, performance budgeting, audit and internal control and revenue management. Effective Public Financial Management has a strong potential to contribute to poverty reduction by among other things improving the allocative efficiency of the state budget. annual report 2012 • SIPU International AB
project brief
Supporting Budget Reform and Aid Management in Ukraine ● In
Ukraine SIPU runs the Budget Reform and Aid Management (bam) project, together with the Ministry of Finance. The four year project, ending 2013, has two components: aid management and budget reform. The first aims at enhancing the Ministry’s capacity to manage external resources. This has been done by introducing a new programming cycle for donor coordination (including external monitoring systems, donor coordination procedures and a procedures manual) and various capacity building activities. The support for reforming the budget process includes introduction of a comprehensive macroeconomic and budgetary forecasting model (adapted to Ukrainian conditions), improved strategic planning by elaboration of new forms and instructions for budget requests, plans of activities, annual work plans and budget instructions (described in a methodological booklet), revision of the annual budget calendar (to include Medium Term Expenditure Framework, mtef ) and capacity building (by delivering a series of seminars and workshops). The bam project is financed by Sida and is implemented by a team of six permanent staff and more than ten temporarily engaged experts. ●
19
project brief
A Sector Wide Approach to Education in Kosovo ● Improvements
in Public Financial Management is also a means to enhance aid effectiveness as well as external control and accountability for donor funded projects. SIPU international assist donor agencies in assessing and managing fiduciary risks as well as setting up more effective donor coordinated mechanisms with joint frameworks for expenditure management, risk assessments, results frameworks and monitoring and evaluation. In Kosovo SIPU International has assisted the Ministry for Education, Science and Technology (mest) in adopting a Sector Wide Approach (swap) for its entire operation. First the support was directed to enhance the capacity in planning and budgeting though a road map for the education sector. Thereafter the capacity building and education reform project aimed at designing a programme based approach and to assist and support the Ministry in elaborating essential building blocks and mechanisms for a swap to education. An important result of this support was the elaboration and adoption of a Kosovo Education Strategic Plan for the Education Sector 2011–2016 – the kesp. In the Strategic Plan the Government states that the objective is to channel
all significant funding to the education sector towards supporting the government priorities and interventions. With a Strategic Plan in place ongoing and future external support to the Ministry is aligned to the plan. This has helped to achieve better coordination of efforts and enhance the quality and effectiveness of the education system. Every year a sector progress report is developed reporting on progress made and challenges ahead. A Joint Annual Review was organised for the first time in 2012. The review was a two day conference, which SIPU International helped organise. It gathered most of the important stakeholders of the sector from government, development partners and civil society organisations. These stakeholders jointly reviewed progress made and identified main priorities for the coming year and beyond. This joint approach has led to increased coordination of sector activities, strengthened ownership on behalf of the government and further alignment of donor support to national priorities. The Education Sector is among the first Sector Wide Approach in Kosovo and has served as an example also for other sectors in adopting similar approaches. ●
project brief
Increasing Transparency in Extractive Industries ●A
country’s ability to generate revenues is an important aspect of public financial management and a key element towards ensuring government accountability, service delivery and sustained growth. SIPU International has longstanding experience working within revenue management, in particular through supporting organisational development of tax agencies. Work has primarily been focused on organisation change, capacity building and the development of it systems. Revenue management related to extractive indus-
tries is an area of growing importance in many developing countries. The Extractive Industries Transparency Initiative (eiti) is a global standard for revenues from natural resources which aims to strengthen governance by improving transparency and accountability in the extractives sector. In 2012, SIPU International became the only Swedish Consultancy firm accredited to carry out validations at country level within the Extractive Industries Transparency Initiative. ●
annual report 2012 • SIPU International AB
20
Business area: Swedish Professional Training
Professional Training for Swedish Civil Servants An efficient public administration requires continuous training and capacity development of its staff. National and local administrations need to stay up-to-date on administrative rules and regulations, but also in inter-related areas such as project and personnel management, public procurement and office administration. SIPU offers a comprehensive selection of professional courses focused on improving and sustaining an efficient public administration. Clients may send personnel to our open courses or contract us for tailor made training in their own premises. This provides the clients an opportunity to receive training tuned to their own needs. business area: ● eu
EU Project Cycle Management
funding offers opportunities to implement development projects that may not otherwise have been possible in public administration offices or municipalities. eu projects boost professional network building, create transnational collaboration opportunities and add significant value to participating organisations. Managing an eu financed project, however, is very demanding; rules and regulations are numerous and financial controls stringent. SIPU offers eu courses that help applicants and project managers avoid the most common traps and to develop realistic projects with achievable goals, while complying with audit requirements. Participating in our eu courses is relevant for project managers as well as project team members, financial officers and administrators. In May 2012 we started a new major training programme, comprising of 40 full days of tailor made eu training delivered to officials in municipalities, universities, county councils
and regional authorities in South Sweden. This training reaches 260 participants in 8 different training programmes, between September 2012 and June 2013. Examples of open eu courses offered by SIPU in 2012 • Applying for eu funding – from idea to successful grants application • Planning an eu project – reach goals through strategic project and communications planning • Managing an eu project – from start to final reporting • Financial management of eu projects – from budgets to audit • Archiving an eu project – documentation and secure archiving • eu funds – how to find the right funding for your project. ●
Exceeded expectations. It made me want to go on more SIPU courses. Or even to work there! Participant, SIPU’s Public Administration & Law course
annual report 2012 • SIPU International AB
21
business area:
Public Administration and Law
● SIPU
is a well-known provider of training in public administration and law for officials in public administration and government offices in Sweden. The Administration and Law courses offer expert presentations combined with opportunities for individual questions and case discussions. They target a broad spectrum of professionals, whether employed as officers, managers, legal advisors/solicitors, assistants or registrars, regardless of the number of years in a specific position. There is a steady demand for training in this area, partly because of personnel changeover, but also because legislation and practice is continuously changing. Officials need to keep up-to-date in order to possess proficiency in the handling of cases, especially having good knowledge of the complicated legislation related to open access to public documents and rights to privacy, confidentiality and secrecy.
business area:
In 2012 SIPU’s Public Administration and Law courses were more popular than ever before. Examples of courses in Public Administration and Law provided in 2012: • Administrative law for managers in the public sector • Managing and processing administrative cases • Processing and presenting administrative cases • Public access and secrecy for legal practitioners • News and cases in public access and secrecy for legal practitioners • Public access and secrecy for registrars • Advanced course on public access and secrecy for registrars • Systematic prevention in public administration of corruption, bribery and other irregularities. ●
Public Procurement
● SIPU
is one of Sweden’s largest training providers in public procurement and offers open courses as well as tailored training from basic to advanced levels. SIPU has run training courses on procurement since the Public Procurement Act (lou) came into force in 1992. Even before that, SIPU as a statutory organisation ran procurement training. Public procurement is an expanding area today. The requirement that public authorities follow lou exactly is increasingly enforced. No authority wants to be held responsible for impermissible procurement, or for the use of tax revenues in a careless manner. Currently there is a significant generational shift that leads to newly recruited staff with great training needs. We believe that there will continue to be a major demand for training in this sector. Examples of courses within the public procurement business area are: • Basic and continuation course in public procurement • Clear specifications and effective requirements definition • Procurement of consultants and services
• • • •
Competitive dialogue Public procurement of building contractors Practical contract law Procure, measure and evaluate quality in health and social care service procurement under LOU • Strategic procurement for purchasing authorities • Contract administration in practice. ● annual report 2012 • SIPU International AB
22
business area:
Urban Development and Technical Management ● SIPU
has offered courses in urban development and technical management since 2010. Today SIPU has a broad range of high quality courses in this area. Since 2010, almost 500 people have been through SIPU’s highly regarded courses in urban development and technical management. The business area continues to see great demand and today we have some of Sweden’s leading authorities in their respective areas as course leaders. Some examples of our most popular courses • Land development agreements • Coastline protection • Strategic local resource planning for flexible and functional school premises • Exterior property management and client management • Estimating and price-setting of contracts and in-house contract work • Efficient winter maintenance and qualityassured urban and street cleaning • Strategic local resource planning for high quality housing for the elderly. ●
staff surveys for swedish municipalities
The Workplace of the Future – Development and Learning in Municipalities SIPU has worked with personnel and organisational development at national and local government levels since the 1970s, and has wide experience from Sweden as well as from our international work. The year 2012 saw the launching of a new initiative in the form of staff surveys for municipalities. Through a combination of the company’s long experience and a new specially designed survey instrument we can now offer municipalities a unique support tool for both personnel and work environment development. The staff survey is specifically designed with municipalities’ reality in mind. The survey’s accurate and relevant results create the conditions for successful improvement programmes.
annual report 2012 • SIPU International AB
SIPU collects and collates all the information in a database. As municipalities join the system, the database grows and provides an increasingly valuable statistical base for comparative and trend analyses. Municipalities will be able to compare one another against common benchmarks and learn from one another’s best practices. The instrument has been developed during 2012 and will be provided as an established service during 2013, available to all Swedish municipalities. Our vision is to provide municipalities throughout the country the possibility of developing knowledge collectively, and make available to them practical examples, research findings and information.
Business area: Natural Resource & Environmental Management • GENDER equality
23
Managing Sustainability The year saw continuing evidence of the impacts of climate change and challenges in raw material supplies. Continued rapid urban growth is testing the capacities of local governments to respond satisfactorily to residents’ expectations for safe and healthy living conditions, and for secure income. SIPU International provides services in both urban and rural settings in response to these challenges. Our natural resource and environmental management activities appear in a number of guises, such as urban sustainability reviews and domestic and international training in this sphere. SIPU has conducted three international programmes in Local Environment Management in Urban Areas with specific focus on Asia. Coastline Protection in Municipal Planning is an example of a course targeting the Swedish market.
Gender Equality – a Human Right Gender equality and women’s empowerment are essential for meeting the aspirations of inclusive and sustainable development. Gender equality means that all human beings have equal rights, responsibilities and opportunities in life and enjoy equality in law, regardless of whether they are born male or female. SIPU seeks to incorporate gender-approaches and methodology into all our projects, whilst also carrying out projects with gender equality as the main objective. At SIPU, we believe that the core of all gender equality work is change management. Changing social structures and norm systems is not an easy task, and calls for cross-cutting actions to be carried out by highly-skilled practitioners in partnership with our stakeholders and target groups. We believe that bringing genderperspectives and tools into all our development work helps obtain far better results.
project brief
International Training Programme in Human Rights towards Gender Equality ● Gender
equality is fundamentally a human rights issue. It is both an objective in itself as well as a necessity for long-term sustainable development. During 2012 SIPU International completed one of its largest International Training Programs: Human Rights towards Gender Equality. From 2007 the program has trained and strengthened over 200 change agents in decision making roles in institutions and organisations in the field of human rights and gender equality. Each of these change agents has implemented at least one change project in order to effect and change social and institutional structures that lead to increased gender equality. Over 200 change projects have been implemented in eleven countries. ● annual report 2012 • SIPU International AB
24
Business area: Market Development
Supporting Inclusive Economic Growth Economic growth is an important contributor to development, leading not only to increased incomes and access to markets for individuals but also to increased resources for the governments for spending on institutional reform, infrastructure, education and health care.
The private sector and public institutions both play important roles in bringing
about economic development for all – inclusive economic development is only possible with effective and transparent institutions that are responsive to citizen’s needs. SIPU has a long tradition of working in projects for public reform and institutional capacity building, areas of importance in creating an enabling business environment as well as promoting a more dynamic, innovative, diverse and fair private sector. SIPU’s approach lies in applying these core competencies in engaging a diverse range of actors ranging from business enabling institutions and entrepreneurs, regulatory bodies and civil society organisations. Constantly building upon its strengths whilst developing innovative and forward-thinking initiatives, SIPU is a strong partner in market development – an area that is increasingly viewed as a key component of the global development agenda.
FIRMA supported furniture suppliers exhibiting at the international furniture fair in Cologne. annual report 2012 • SIPU International AB
project brief
Continuous Support to Sida’s work With Market Development ● SIPU
International is the lead firm in a consortium providing Sida with on-going strategic and policy guidance as well as undertaking specialist technical assistance assignments. Support provided by SIPU has been diverse in nature, ranging from providing training in the m4p approach for Sida staff, advising on new public-private co-financing initiatives to developing terms of reference for technical assistance projects and carrying out evaluations and studies. ●
project brief
Fostering Interventions for Rapid Market Advancement ● SIPU,
in consortium with Cardno Emerging Markets Group, is involved in the Fostering Interventions for Rapid Market Advancement (firma) project. This 5 year project is jointly funded by Sida and usaid and aims at developing and establishing international competitiveness within three selected sectors in Bosnia and Herzegovina (wood, metals and tourism) as well as to strengthen the capacity of business sector membership organisations. The overall objective of the project is to put Bosnia and Herzegovina on the road to eu accession by helping to develop a more competitive and robust private sector. Gender equality has been a central focus throughout the project, through activities that promote female entrepreneurship, increase opportunities for women in the labour market and raise awareness of gender equality issues at work. ●
25
The Board of Directors and Managing Director of SIPU International AB Corporate Identity Number 556448-4771 hereby present the
Annual Report for the Period 1 January – 31 December 2012
contents
Administration Report
26
Income Statement
27
Balance Sheet
28
Cash Flow Statement
29
Notes, with accounting principles
30
annual report 2012 • SIPU International AB
26
Annual report SIPU International AB • Corporate identity number 556448-4771
Administration Report Operations SIPU International AB was founded in 1992 and since that time has undertaken international consulting and training for the development of, primarily, the public sector in developing and transition countries. Our largest clients are Sida and the EU. In Sweden, the Company has just over 40 employees; world-wide there was an average of 62 employees during the year. We also contract a large number of sub-consultants in order to execute short or long-term assignments. In many of the assignments, we cooperate with other Swedish, international and local consulting organisations. 2012 was a good year. We started the year with a strong backlog of orders and succeeded in maintaining a good level of profitability in the international operations. The training course operations have also developed well, with a stable inflow of clients during the entire year and with several new products on the market.
Results and financial position
2012
2011
2010
2009
2008
128,111
134,906
130,690
95,256
94,398
3,466
2,453
5,667
2,710
3,295
102,306
91,699
82,562
72,513
48,709
Equity/assets ratio (%)
18
19
22
24
36
Return on assets (%)
19
14
31
16
19
Return on equity after tax (%)
14
10
22
10
13
Change in sales (%)
-5
3
37
1
-24
Average number of employees
62
55
55
35
32
Operating income Profit after financial items Balance sheet total
Proposed appropriation of profits Retained earnings
9,660,725
Net profit for the year
1,953,626
Total
11,614,351
The Board of Directors proposes that profits brought forward be appropriated as follows To be distributed to the shareholders To be carried forward Total
5,800,000 5,814,351 11,614,351
Board’s statement on the proposed dividend The proposed dividend will reduce the company’s equity ratio to 13%. The equity ratio is set in light of the company’s continued profitability. The liquidity of the company is expected to be maintained at a satisfactory level. The Board believes that the proposed dividend will not prevent the company from fulfilling its obligations in the short and long term, nor that the necessary investments will be affected. The proposed dividend can be justified with reference to what is stated in Chapter 17, section 3 § 2–3. (prudential rules).
annual report 2012 • SIPU International AB
27
Annual report SIPU International AB • Corporate identity number 556448-4771
Income Statement Amounts in TSEK
Note
1 Jan 2012 – 31 Dec 2012
1 Jan 2011 – 31 Dec 2011
126,944
128,506
Operating income
Net sales
1, 2
Other operating income
1,167
6,400
128,111
134,906
Operating expenses
Direct project costs
-76,463
-82,802
Other external expenses
2, 3
-11,836
-10,817
Personnel costs
4, 5, 6, 7
-33,790
-35,937
Depreciation/amortisation
8
Other operating expenses
Operating profit
Interest income Interest expenses Profit after financial items
Appropriations Tax Net profit for the year
9
-644
-527
-1,104
-2,081
-123,837
-132,164
4,274
2,742
23
30
-831
-319
3,466
2,453
-650
-237
-863
-641
1,953
1,575
annual report 2012 • SIPU International AB
28
Annual report SIPU International AB • Corporate identity number 556448-4771
Balance Sheet Amounts in TSEK
Note
31 Dec 2012
31 Dec 2011
8
1,574
525
8
683
893
Participations in Group companies
15
238
224
Investments held as fixed assets
16
3
3
2,498
1,645
23,019
16,797
1,277
285
716
400
Fixed assets Intangible fixed assets Goodwill Tangible fixed assets Equipment Financial non-current assets
Total fixed assets Current assets Current receivables Accounts receivable – trade Current income taxes recoverable Other receivables Accrued, non-invoiced income
10
48,605
53,108
Other interim receivables
11
1,536
939
75,153
71,529
Cash and bank balances
18
24,655
18,525
Total current assets
99,808
90,054
102,306
91,699
1,200
1,200
266
266
Retained earnings
9,661
9,086
Net profit for the year
1,953
1,575
13,080
12,127
7,619
6,969
Accounts payable – trade
8,583
5,473
Liabilities to Group companies
1,147
3,050
55,169
51,732
7,505
2,839
Total assets Equity
12
Restricted equity Share capital (12,000 shares with a quotient value of SEK 100) Statutory reserve Non-restricted equity
Total equity Untaxed reserves
13
Current liabilities
Advance payments from customers Other current liabilities Other interim liabilities
14
Total current liabilities Total equity and liabilities
9,203
9,509
81,607
72,603
102,306
91,699
27,991
45,387
None
None
Memorandum items Pledged assets Contingent liabilities
annual report 2012 • SIPU International AB
17
29
Annual report SIPU International AB • Corporate identity number 556448-4771
Cash Flow Statement Amounts in TSEK
1 Jan 2012 –31 Dec 2012
1 Jan 2011 –31 Dec 2011
Operating activities Operating profit before financial items Depreciation/amortisation Other non-cash items
Interest received Interest paid Income tax paid
4,274
2,742
644
527
4
0
4,922
3,269
21
30
-204
-319
-1,855
-831
4,503
-4,338
Changes in working capital Increase/decrease in work in progress
-6,222
10,157
Increase/decrease in other current receivables
Increase/decrease in accounts receivable – trade
-913
523
Increase/decrease in accounts payable – trade
3,207
671
Increase/decrease in other current operating liabilities
5,797
9,440
Cash flow from operating activities
9,256
18,602
Investing activities Investments in intangible fixed assets Investments in tangible fixed assets Sales of tangible fixed assets Investments in other financial non-current assets Disposals of other financial non-current assets Cash flow from investing activities
-1,309
0
-178
-50
0
0
-14
-13
2
0
-1 499
-63
-627
0
Financing activities Repayment of debt
0
-2,941
Dividend paid
Increase/decrease in current financial liabilities
-1,000
0
Cash flow from financing activities
-1,627
-2,941
6,130
15,598
Cash flow for the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at year-end
18,525
2,927
24,655
18,525
annual report 2012 • SIPU International AB
30
Annual report SIPU International AB • Corporate identity number 556448-4771
Notes and Comments Amounts in TSEK
Accounting principles
Intangible assets
The annual report has been prepared in accordance with the Swedish Annual Accounts Act and the general advice and guidelines of the Swedish Accounting Standards Board, with the exception of BFNAR 2008:1, Annual reports in small limited liability companies (the K2 rules). The accounting principles remain unchanged compared with the previous year. Assets and liabilities have been valued at acquisition cost, unless otherwise stated. SIPU International AB does not prepare consolidated accounts, as the Company and all of its subsidiaries are included in the consolidated accounts prepared by the superior Parent Company.
Goodwill is comprised of the amount by which the acquisition cost exceeds the fair value of the acquired company’s net assets on the acquisition date. Intangible fixed assets are amortised on a straight-line basis over the asset’s estimated useful life. An amortisation period of 5 years is applied for goodwill.
Income The Company renders fixed price service assignments for which income is recognised in pace with the execution of the assignment in accordance with the percentage of completion method. Depending on the customer, the percentage of completion is determined either on the basis of the number of worked and invoiced hours/days or on the basis of delivered products (milestones). Of these two determination methods, the former is the most common. Net sales includes invoiced out-of-pocket costs.
Income tax Reported income tax includes tax which is to be paid or received, regarding the current year, and adjustments concerning the previous years’ current taxes and changes in deferred tax. All income tax liabilities and assets are valued at their nominal amount according to the tax regulations and tax rates that have been decided or that have been announced and are likely to be adopted. In the case of items reported in the income statement, related tax effects are also reported in the income statement. The tax effects of items that are accounted for directly against equity are also reported directly against equity. Deferred tax is calculated according to the balance sheet method on all temporary differences arising between the reported value and the tax value of the assets and liabilities. Due to tax regulations, the Parent Company reports deferred tax liabilities on untaxed reserves as untaxed reserves.
Translation of receivables and liabilities in foreign currency Receivables and liabilities in foreign currency are reported at the closing rate of exchange, with the exception of advance payments from customers are translated reported at the historical rate of exchange. Exchange rate gains and losses on receivables and liabilities relating to operations are reported under ‘Other operating income’ or ‘Other operating expenses’.
annual report 2012 • SIPU International AB
Tangible fixed assets Tangible fixed assets are reported at acquisition cost less depreciation. The depreciation period for depreciation according to plan is 3 years for computer equipment and 5 years for office equipment. In terms of tax treatment, the Company applies the supplementary rule.
Financial non-current assets Financial assets which are intended to be held over a long period of time are reported at acquisition cost. If, on balance sheet date, a financial fixed asset has a lower value than its book value, the asset is written-down to the lower amount if the decrease in value can be considered permanent.
Accounts receivable – trade Provisions for doubtful debts have been determined on the basis of individual assessment.
Definitions of key ratios Equity/assets ratio Adjusted equity as a percentage of the balance sheet total. Return on capital employed Profit after net financial items plus financial expenses as a percentage of average capital employed. Capital employed consists of the balance sheet total less non-interest-bearing liabilities including deferred tax in untaxed reserves. Return on equity after tax Profit after net financial items less tax payable for the year incl. deferred tax on appropriations as a percentage of adjusted equity. Change in sales Change to operating income in comparison to the previous year.
Other In the following notes and descriptions, information in brackets refers to the previous year.
31
Annual report SIPU International AB • Corporate identity number 556448-4771
Notes and Comments Amounts in TSEK
Note 1 • Distribution of net sales per market Region
2012
2011
57,589
58,175
2,668
1,968
Africa
11,727
13,721
MENA
1,867
44
Eastern Europe and NIS Latin America
Asia EU TOTAL
297
4,643
52,796
49,955
126,944
128,506
Field of activity
2012
2011
Development Consulting
93,465
90,947
International Training Programs
21,123
27,052
Training (Sweden)
11,356
10,507
126,944
128,506
TOTAL
The Company has included overhead expenses for SCB’s personnel administration for foreign-based personnel under sales for 2012. These expenses amount to TSEK 7,814 and have been reported under EU. The corresponding amount for 2011 was TSEK 11,240.
Note 2 • Purchases and sales between Group companies 2012
2011
884
616
-
-
2012
2011
Audit engagement, PwC
150
108
Other services, PwC
128
60
TOTAL
278
168
Purchases from Group companies Sales to Group companies
Note 3 • Remuneration to auditors
Note 4 • Average number of employees The average number of FTEs for 2012 was 62 (55), distributed by land/region as follows 2012 Land Sweden Eastern Europe and NIS
Men
2011 Women
Men
Women
16
19
17
18
6
15
3
14
Africa
3
2
3
0
Latin America
1
0
-
-
26
36
23
32
TOTAL
annual report 2012 • SIPU International AB
32
Annual report SIPU International AB • Corporate identity number 556448-4771
Note 5 • Absence due to illness (%) 2012
2011
0
1
Total absence due to illness Absence due to illness, men
0
1
Absence due to illness, women
0
2
Absence due to illness, 29 years of age or younger
0
2
Absence due to illness, 30-49 years of age
0
1
Absence due to illness, 50 years of age or older
0
1
Proportion of absence due to illness referring to absence for a period of 60 or more consecutive days
0
0
This information refers to personnel in Sweden.
Note 6 • Gender distribution among senior executives 2012
2011
Men
Women
Men
Women
Board of Directors, incl. MD
3
2
4
1
Management, incl. MD
2
2
3
1
Note • 7 Personnel costs 2012
2011
Salaries and remuneration
MD
Other
MD
Other
Sweden
782
14,967
852
15,348
Other EU
-
3,291
Eastern Europe and NIS
4,304
5,935
Latin America
1,288
-
Africa
2,602
1,259
MENA
843
10
-
199
North America TOTAL Social security contributions Pension costs Other social security contributions TOTAL
782
24,004
852
2,201
167
2012 164
26,042
2011 1,873
308
5,092
331
5,076
472
7,293
498
6,949
1,254
31,297
1,350
32,991
Salaries and other remuneration to the Managing Director and Board of Directors
Salaries and other remuneration to the MD and Board of Directors during 2012 amounted to TSEK 782 (852), of which bonus TSEK 0 (0). Pensions and similar benefits to the Managing Director and Board of Directors
Pensions to the MD and Board of Directors during 2012 amounted to TSEK 164 (167). Agreed severance pay
The MD has a term of notice of 6 months.
annual report 2012 • SIPU International AB
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Annual report SIPU International AB • Corporate identity number 556448-4771
Note 8 • Intangible and tangible fixed assets Goodwill
31 Dec 2012
31 Dec 2011
750
750
1,309
-
Acquisition cost Opening value Purchases
-
1
2,059
750
Opening value
-225
-75
Amortisation for the year
-260
-150
-
-
-485
-225
1,574
525
31 Dec 2012
31 Dec 2011
2,521
2,471
178
209
Sales/disposals Closing value Amortisation
Sales/disposals Closing value Closing residual value Inventories Acquisition cost Opening value Purchases Sales/disposals
-446
-159
Closing value
2,253
2,521
-1,628
-1,406
-384
-381
Depreciation Opening value Depreciation for the year
442
159
-1,570
-1,628
683
893
Sales/disposals Closing value Closing residual value
Note 9 • Appropriations 2012
2011
Reversal of tax allocation reserve
482
576
Transfer to tax allocation reserve
-1,090
-813
-42
-
-650
-237
Change in accelerated depreciation/amortisation TOTAL
Note 10 • Accrued, non-invoiced income Accrued, non-invoiced income TOTAL
2012
2011
48,605
53,108
48,605
53,108
Note 11 • Prepaid expenses and accrued income 2012
2011
Prepaid insurance expenses
207
149
Prepaid rental
514
508
Internal projects in progress
529
-
Other prepaid expenses and accrued income
286
282
annual report 2012 • SIPU International AB
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Annual report SIPU International AB • Corporate identity number 556448-4771
Note 12 • Change in equity Share capital
Statutory reserve
Retained earnings
1,200
266
Opening balance Adjustment of previous year’s net profit Dividend according to resolution of annual general meeting
Net profit for the year
Total
9,086
1,575
12,127
1,575
-1,575
0
-1,000
-1,000
Net profit for the year Amount at year-end
1,200
266
9,661
1,953
1,953
1,953
13,080
Note 13 • Untaxed reserves 2012
2011
Tax allocation reserve, tax assessment year 2007
-
482
Tax allocation reserve, tax assessment year 2008
1,749
1,749
Tax allocation reserve, tax assessment year 2009
1,011
1,011
Tax allocation reserve, tax assessment year 2010
918
918
Tax allocation reserve, tax assessment year 2011
1,995
1,995
Tax allocation reserve, tax assessment year 2012
814
814
Tax allocation reserve, tax assessment year 2013
1,090
-
42
-
7,619
6,969
1,676
1,833
Accumulated excess depreciation Deferred tax
The tax rate for 2012 and 2011 was 26.3%. As of 2013, the tax rate will be 22%.
Note 14 • Accrued expenses and deferred income Accrued project expenses
2012
2011
6,484
6,976
Other accrued liabilities
653
196
Holiday pay liability
947
1,093
Social security contributions
709
726
Special employer’s contribution on pensions
410
518
9,203
9,509
TOTAL
Note 15 • Participations in Group companies Name/Corporate Identity Number SIPU AB, 556446-3577
Participation
Nominal value
Book value
60 %
62
238
Note 16 • Investments held as fixed assets Name/Corporate Identity Number
Participation
Nominal value
Book value
10 %
4
3
FCG Ukraine LLC, 343428424, Ukraine
Note 17 • Pledged assets Assets pledged for guarantees (Tacso I and II) Floating charges TOTAL
2012
2011
19,491
36,887
8,500
8,500
27,991
45,387
Note 18 • Bank overdraft facilities Unused bank overdraft facilities amounting to 7 MSEK.
annual report 2012 • SIPU International AB
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Annual report SIPU International AB • Corporate identity number 556448-4771
Stockholm, 6 March 2013
Anders Olin MD
Ari Kolehmainen Anette Vaini-Antila Chairman
Our audit report was presented on 9 April 2013 Öhrlings PricewaterhouseCoopers AB
Katrina Harjuhahto-Madetoja
Birgitta Bjelkberg Authorised Public Accountant
annual report 2012 • SIPU International AB
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SIPU International 1992 – 2012
We Work with People for People! Partners from the beginning
Thus far you have seen examples of what SIPU does, in Sweden and worldwide; and sometimes how we do it. But it’s a well-known fact that things don’t get done by themselves. A wide range of people have been involved in SIPU’s activities over the last 20 years. This section will switch focus, and not only look at the things SIPU has done; but also highlight some of the people that through their hard work made them happen. We can but give you a few snapshots, but we wish anyway to present some of the individuals that have helped to make SIPU what it is today.
We had the pleasure of becoming a partner to SIPU International in a series of development programmes and projects starting way back in 1988. And we are still partnering. We have in fact served under all SIPU International’s managing directors, – which has been a great learning experience. It is easy for us to team up with SIPU because we believe we share the same values and guiding principles for sustainable development. We provide complementing services in the fields of capacity development for continuous learning. This includes a range of training and editorial work for effective communication, knowledge sharing and bridging the knowing-doing gaps in organisations. Most of our assignments involve human resources and organisational development including leadership and management training. Bengt-Göran Carlsson, OrdBildarna, a Swedish consultancy company
SIPU’s MDs over the years Göran Andersson managing director 1992 – 1994 I became Managing Director when we formed the company back in May 1992. The biggest uncertainty was whether we were going to be allowed to take over the contracts we had with Sida. Interestingly enough during this period of privatisation – the government, annual report 2012 • SIPU International AB
through the Ministry of Finance, was completely uninterested in what happened to the organisation. We managed to negotiate good terms with Sida and could take over the contracts that we had at the time. The major projects we had then were in Botswana, Zimbabwe and Tanzania. Projects
in the Baltics and Asia were on the way. Our contract partners had no objections to us becoming a private company. The transition went so smoothly probably because we knew the business well, we were well prepared both mentally and competence-wise. When I look back at the successful develop-
ment since its inception, I believe that part of this success is due to the fact that we came at a time when management development and »good governance« rose up as key areas of international development cooperation. It suited our profile perfectly.
SIPU International 1992 – 2012
When I worked in Kosovo in the mid-2000s, the government had recently decided to introduce a property tax. The tax was important because it would provide a framework for municipal self-funding. However, it was very difficult to pay the tax and it was unclear how much to pay. It was also quite easy to avoid paying. Each municipality had the responsibility to gather the tax as well, which also complicated matters. Politically speaking, this property tax was highly sensitive because property ownership was strongly associated with the ethnic tensions stemming from the conflict a few years earlier. SIPU’s consultant Finn Hedvall came down and did a study which was quite thick and complicated, but it managed to pinpoint exactly how to go about designing Sida support. The Swedish Tax Agency then took this study to build a project around. After only 1 – 2 years revenues from property taxes began to increase rapidly in Kosovo. This income was directed towards roads, playgrounds and other municipal services and infrastructure. SIPU did a great job as a »pioneer« in this difficult area. Robert Backlund was Sida’s Country Coordinator in Kosovo
I have many very fond memories from SIPU. I was
given the opportunity to travel quite a bit with senior consultants which was a great learning experience. Finn Hedvall was one of them. Finn worked extremely hard but he had one rule: he would always have one day off in a week and if it was possible he would go and see some of the surroundings. Another great memory is all the trainings and meetings we had with development partners about pfm and aid efficiency. We helped the participants to see the broader picture; like the importance of institutions and how aid, in worst cases if not implemented carefully, could bypass and even undermine a country’s institutions such as the budget cycle and accountability mechanisms.
37
The Number One Project In the mountains of Sri Lanka there are many Tea Plantation communities. The workers are mostly Tamil people. Between 1980 and 1990, Sida facilitated the building of 520 schools in socially disadvantaged communities. But with no funds allocated by the Singales central government the buildings started to deteriorate. So Sida facilitated a soft loan of 50 million sek to repair the school facilities. SIPU was asked to coordinate and secure the proper use of the granted loan. SIPU sent me and consultant Karl Heli to take on the challenge. At the time Sri Lanka was involved in a civil war and travelling in the rural areas was not safe. In local terms Karl was considered the Enormous Swede and I was the small South-American Swede. First we had to secure the full participation of officials, teachers and community members by an integrated and participative approach concerning school maintenance. And that Tamil schools would have a yearly budget allocation for maintenance works. The combination of Karl’s technical and administrative expertise and my experience in education and construction paid off. The project was soon named The project Number One by the people working at the Swedish Embassy. The impact was big in the Provincial Administrations and also at School level. The Tea Plantation communities started to show signs of housing improvements. Tamil children obtained better school results and for the first time some of them qualified for school bursaries. The Sri Lanka schools project followed the SIPU motto »We work with people for people«. Gabriel Marin Castro Senior Consultant at SIPU
Kristin Sinclair, Swedish Ministry of Finance Kirstin worked for SIPU International from 2006 to 2009 as pfm consultant
Bo Synnerholm managing director 1994 – 2003 A lot of political development took place in the 1990s, the Soviet Union was abolished, South Africa got its first democratic government and a number of new nations were born. This coincided with SIPU International expanding into new countries, areas and issues. We had been working in Mongolia but not in many other Asian countries. An
assignment at the Prime Minister’s office in Thailand was followed by many others for the Thai government and in many other Asian countries. A large project on hrm in Vietnam started in 1997 and continued into the mid 2000’s. Our successful cooperation with Mongolia lasted for 20 years. SIPU was also entrusted to assist the new government in South Africa 1994. Sweden with
its credentials as supporter to the anti-apartheid movement was well received. But it was not until 1995, when Sweden became member of the European Union that SIPU got its first eu consultancy by assisting the Ministry of Finance in Slovenia with rules and regulations on procurement. SIPUs first project in Latin America was the development of a
revolving fund »Frama« for coffee farmers in Nicaragua after the devastating hurricane »Mitch« in 1998. The same year SIPU developed a Peace Centre for the Municipality of Bethlehem adding the Middle East as an active region. This was also years when profit allowed the company to recruit and develop new staff, try new ideas and methods.
annual report 2012 • SIPU International AB
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SIPU International 1992 – 2012
annual report 2012 • SIPU International AB
SIPU International 1992 – 2012
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annual report 2012 • SIPU International AB
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SIPU International 1992 – 2012
I joined SIPU in January 2010. My first mission was
Sonta Kauti
W
hen Sonta Kauti attended the 2009 run of SIPU and Sidas International Training programme, Local Environmental Management in Urban Areas; he was working as a solid waste management officer. Being employed by Coppoerbelt Solid Waste Management Co. (HK Kitwe) in Luanshya, Zambia. One of the problems he encountered on a daily basis was the enormous heaps of wood waste that was accumulated by the forest industry in the region. Adding to this was
– making a difference
another local problem; the villagers where using coal fuelled stoves to cook food indoors, which was not only health hazardous but also a serious environmental problem for the region. Sonta thought these two problems through, and came up with an idea. He was convinced it was possible to convert the wood waste into pellets. And then use the pellets as fuel for new and cleaner stoves. When the programme was finished he contacted the Swedish Embassy and was eventually able to present his idea to the Swedish company Vagga till vagga AB.
They liked it so much they wanted to invest in the pellet production. Today Sonta is running a successful pellet producing business and thereby alleviating the municipality of the waste as well as providing the local community with clean fuel. – Sonta Kautis project effectively combined two existing problems into one sustainable solution. It is a perfect illustration of how a successful project of change really can make a difference, says Cecilia Norgren, Project manager at SIPU.
an evaluation commissioned by Sida, where we went for field visits in Egypt, Jordan and Morocco. I think this was a very good introduction to the consultancy world for me – despite the fact that we were working under some very tight deadlines there was enough knowledge, enthusiasm and commitment in the team to allow us to deliver the evaluation in time and in line with expectations. This did, however, require that we were working throughout breakfasts, lunches and dinners during the whole field visit. I still cannot remember this as negative or burdensome, but rather as a very interesting project and fun collaboration … Having worked at SIPU for more than three years now, I can conclude that this means working in a constantly moving environment where things are happening fast. It means working with clients and collaborators to meet jointly agreed objectives. It means meeting deadlines and it means ensuring good quality deliverables. In all, it is challenging yet very motivating. Viktoria Hildenwall Business Area Coordinator – Evaluations, at SIPU since 2010
Björn Bengtson managing director 2003 – 2008 Taking over as managing director meant taking over a large and consistent project portfolio. Sida projects dominated, but were in terms of volume gradually replaced by eu and World Bank financed projects. annual report 2012 • SIPU International AB
Sida changed its focus in terms of projects developed and managed from Head Quarters to projects steered from the different Embassies and Sida being more of a co-financier of multilateral projects. During my time as md SIPU adapted to these new scenarios. Putting
emphasis on a professionalised tender organisation whilst keeping a strong base of key SIPU consultants. The owners of SIPU – 12 partners – decided in 2007 that SIPU needed a strong external owner. FCG International became the final choice. My last
year was focussed on steering SIPU International through this process of adapting to financial and administrative procedures applied to all companies within the FCG sphere, to identify and develop commonalities and synergies and finding new business opportunities.
SIPU International 1992 – 2012
Leif Wisén & Good Governance – A colleague to remember When Leif Wisén – one of the founders of SIPU International – passed away in 2008 we lost our foremost ideological partner, a person with a very personal involvement in applying SIPU principles in projects to meet development challenges. Good Governance includes hard and soft elements. The hard elements like RBM, steering for results, systems development – such aspects are the focus of the skilled technocrats. For them, »good« is qualifying if instruments and systems are of good/ high quality. For Leif, the focus was on making good and being good. Such an approach touches on values, ethics, and standards for service delivery that improve the lives of the poor. Hence, what is the meaning of »Good« and
what are the means to improve goodness, what does it mean in various projects and for different people? Leif was people oriented and he was our main proponent for working with people, through people – a leading principle for SIPU and for Leif when he took on his different projects. To work with people it is essential to be interested and engaged in people. This came natural to him. To define what is good in the specific project sense requires that all involved share a vision of where to go and what to change – and what it takes to change. Leif had a basket of methodologies
and approaches to drive such a change process. His SIPU room was stacked with books and pamphlets. But methodologies are not enough if the change teams do not believe that the engagement is sincere; this was perhaps Leif’s most important contribution. People believed in his sincere engagement to strive for what is better than today and to engage people in the projects to make change happen. Change for the better needs true commitment. One must be a good person to be recognised to sincerely work for the good. Leif was a good person and this is his heritage and contribution to the SIPU values. Björn Bengtson
SIPU has carried out more than 500 projects and assignments in over 100 countries since 1992.
Anders Olin managing director 2008 – today Two seemingly contradicting developments have characterised my watch as Managing Director. On the one hand, SIPU International has become more international than ever before by becoming part of an international company
group, and also less dependent on Sida as a client as we have successfully offered our services to other donors. During the same time period, we have become more Swedish, or at least more visible in Sweden than we have ever been before, with the acquisition of the Swedish
training business in 2010 and a conscious effort to win contracts for Swedish public agencies. I am very happy with this development and we will continue to use our Swedish experience strengthen our international business and vice versa. As it happens, I have now
the opportunity to have both the first and the last word in this year’s annual report. I hope that you as a reader has enjoyed it and learnt something new about SIPU. I look forward to hear from you, if you have any questions or comments on the contents, or just to have a chat.
SIPU International AB postal adress Box 45113 SE-104 30 Stockholm, Sweden visitng adress Dalagatan 7 e-mail info@sipuinternational.se phone +46 (0)8 698 06 00 fax +46 (0)8 698 06 10
www.sipuinternational.se