ASUNCION PROPOSAL FOR BIOTECHNOLOGY SPEAKER ON

UNCLAS ASUNCION 000054

SIPDIS

SECSTATE FOR EEB/TPP/MTAA/ABT MSZYMANSKI AND JBOBO, WHA/BSC
MDASCHBACH, WHA/PDA CPETERSON, WHA/ESPC FCORNEILLE

E.O. 12958: N/A
TAGS: SENV TBIO ENRG EAGR ECON PGOV KPAO ETRD UR
SUBJECT: ASUNCION PROPOSAL FOR BIOTECHNOLOGY SPEAKER ON
BIOFUELS

REF: 1) STATE 129940; 2) MONTEVIDEO 000032


1. Summary: Post wishes to join Montevideo (REFTEL 2) in the
organization of a biofuels speaker program to take place in July

2009. Given Paraguay's interest in energy diversification and a
pending bilateral renewable energy and biofuels MOU, post believes
this funding possibility could spur development of Paraguay's
biofuels sector and serve to strengthen our burgeoning scientific
ties. End Summary.

PROPOSAL
--------------


2. Embassy Asuncion requests funds to sponsor a Spanish-speaking
expert on biofuels to conduct outreach and a series of specific
technical meetings with participants from Paraguay's energy,
commerce, and agriculture sectors. The proposed program will focus
discussion on issues relevant to Paraguay and the region at large,
such as energy efficiency and policy-making. The Embassy will
leverage media, government, academia, NGO, and private sector
contacts to maximize the impact of this event.

BACKGROUND
--------------


3. Paraguay imports all the oil it uses. Since 1999, gasoline has
been mixed with ethanol at different blending levels. However, 80
percent of fuel consumption is diesel. With biofuels legislation
passed in October 2005, the Paraguayan government (GOP) has set
forth the following objectives: 1) to diversify the supply of
renewable energy; 2) to diminish the dependence on imported fossil
fuel; 3) to substitute fossil fuel with renewable fuels; 4) improve
environmental quality; 5) develop the farm sector (focused primarily
on small producers); and 6) to export ethanol and biodiesel. The
USG and GOP are very close to signing an MOU on renewable energy and
biofuels. Given Paraguay's good weather and rich soils, there is a
significant amount of interest in developing a biofuel market.


PROPOSED PROGRAM
--------------


4. The three-day program will bring together a U.S. biofuels expert
with journalists as well as with policy makers and producers from
Paraguay's energy, commerce, and agricultural sectors. It will
include workshops and discussions at key government ministries,
media interviews, appearances at universities and research
institutions, and a visit to the interior of the county to speak to
the actors in current production efforts. It will also consist of a
series of consultations aimed at expanding the Paraguayan biofuels
capacity and feasibility.


5. Program specifics with budget breakdown follow:

Participation of 1 US expert for 3 days

Airfare (one-way from Montevideo) $530
Hotel $393 (3 nights * $131/night)
M&IE $195 (3 days * $65/day)

TOTAL $1,118



6. Target audiences: Ministry of Industry and Commerce, Vice
Ministry of Energy (belongs to the Ministry of Public Works and
Communications),Industrial Association of Paraguay, Biofuels and
Ethanol Producers Association of Paraguay, and Ministry of
Agriculture.


7. Purpose and impact: This program will reinforce the single
country project IVLP on biofuels, scheduled for May 2009, in which
post has arranged for key Paraguayan players to participate. In
addition, the USG and GOP have a pending MOU that will advance
cooperation on renewable energy and energy efficiency by
facilitating scientific, technological, academic, and business
cooperation.


8. Proposed length of program: July 13-15, 2009; 3 days (2 days in
Asuncion, 1 day in the interior)


9. Name of responsible officer and contact information:
APAO Sean McIntosh, who can be reached at McIntoshSJ@state.gov or
Tel: (595 21) 213 715 x2086 or Mobile: (595 97) 122-2168.

FITZPATRICK