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



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BFIF Project One -- Investment Opportunities Road Show
Partnership with the Ministry of Economic Development

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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.





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Ongoing Dialogue and Interest Created

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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.



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Next Steps

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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

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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