EMBASSY PODGORICA'S BFIF PROJECTS -- PROJECT ONE OUTCOMES

UNCLAS SECTION 01 OF 02 PODGORICA 000158 SIPDIS FOR EEB/CBA WINSTEAD E.O. 12958: N/A TAGS: EINV ECON MW SUBJECT: EMBASSY PODGORICA'S BFIF PROJECTS -- PROJECT ONE OUTCOMES REF: A) PODGORICA 14; B) STATE 23949; C) STATE 43098 ¶1. Summary: The Minister of Economic Development, a team of experts from the Ministry, and the U.S. Embassy Podgorica Economic Officer traveled to the U.S. during the first week of May 2008 to present upcoming investment opportunities in Montenegro to U.S. businesses in four key cities -- Washington DC, Baltimore, MD, Houston TX, and New York, NY. The trip was a resounding success with a number of follow up trips and conferences planned. END SUMMARY -------------- -------------- BFIF Project One -- Investment Opportunities Road Show Partnership with the Ministry of Economic Development -------------- -------------- ¶2. While much interest exists in building a strong commercial partnership between the U.S. and Montenegro, very little tangible has been done to mobilize the enthusiasm on the ground. The Government of Montenegro (GoM) (and particularly the Minister of Economic Development) is keen to encourage U.S. investment in Montenegro -- a goal which Post strongly shares -- and has developed a plan to present their top tenders for 2008 in the key sectors of tourism and energy to U.S. companies. The Minister led a group of experts to the United States in early May to drum up interest in these projects. With Post's help, specific industries and companies were targeted. Post's objective was to use the strong Embassy involvement, including the participation of our Economic Officer, to demonstrate to the U.S. business community that both the GoM and the USG are serious about facilitating U.S. investment and commercial activity in Montenegro. -------------- Ongoing Dialogue and Interest Created -------------- ¶3. As stated in REF A, we set a benchmark of increased interest from U.S. companies in the targeted sectors as a successful project outcome, with our ultimate goal being a successful bid by an American firm on one of the large tenders. Most tenders are currently in the "expression of interest" phase, but we have seen a number of U.S. companies purchasing tender documentation, and asking Post to provide information when the actual tender is released. Additionally, a number of companies that the delegation met with in Washington, Baltimore, and New York have been continuing dialogue with the GoM through the Montenegrin Ambassador in Washington. Some of these companies also plan to come out to Montenegro this summer to investigate the investment opportunities further. -------------- Next Steps -------------- ¶4. The Minister, with other members of the GoM, is enthusiastic about the Vienna Regional Economic Conference in October being planned by CBA and EEB. We will continue to work with the GoM and the private sector in Montenegro to ensure good attendance and productive meetings in Vienna. Further, the GoM is planning an earlier conference as a follow up to the Minister's U.S. trip; this conference will be held in Montenegro in July and will focus solely on energy sector investment opportunities. Post has already been in contact with interested U.S. firms -- including some of those we met with in the U.S. -- about attendance at this conference. ¶5. Post's Economic/Commercial team is maintaining regular contact with business and local government contacts made through the U.S. trip. Additionally, the Ambassador will send letters to PODGORICA 00000158 002 OF 002 the representatives whom the delegation met, expressing Post's pleasure at the increased interest in commercial opportunities here and confirming that the Embassy stands ready to assist them as they explore potential investments in Montenegro. MOORE