KOSOVO: 2009 BFIF PROPOSALS

UNCLAS PRISTINA 000040 SIPDIS DEPT FOR EEB/CBA (DENNIS WINSTEAD) AND EUR/SCE E.O. 12958: N/A TAGS: ABUD AMGT BEXP BTIO ECON ETRD YI EINV KV SUBJECT: KOSOVO: 2009 BFIF PROPOSALS REF: A. STATE 128559 ¶B. SARAJEVO 75 ¶C. TIRANA 37 ¶1. Post thanks EEB/CBA for the opportunity to submit proposals for the Business Facilitation Incentive Fund (BFIF). Per reftel instructions, USEP is submitting three proposals for consideration. ¶2. International Franchise Expo: There has been a steady increase in inquiries from U.S. companies about business opportunities in Kosovo, including the possibility of establishing franchises. Similarly, Kosovo businesspeople have expressed an interest in bringing U.S. franchises to the country. Franchising would be a terrific way to visibly promote American businesses in Kosovo and encourage other U.S. firms to enter the market. Kosovo has at least one U.S. franchise already operating, Office One Superstore, and Re/Max has expressed interest in establishing a branch as well. Since Kosovo is a relatively small market, U.S. franchise companies might be more willing to consider Kosovo if there were other markets that could be accessed in the region at the same time. In order to better utilize our resources, USEP proposes to combine efforts with Embassy Tirana to send interested Kosovo parties to the 17th annual International Franchise Expo in Washington, DC from March 20-22. The Kosovo and Albanian markets share similar characteristics and goals, including a strong sense of entrepreneurship and an eagerness to bring more U.S. business to the country. A combined delegation would be cost-effective and present interested U.S. companies with at least two potential markets for their products. ¶3. Anticipated Costs: Post would advertise the Franchise Expo opportunity in local newspapers and conduct a Q&A session with Embassy Tirana. A quarter-page advertisement in leading local dailies costs a maximum of $100 per day, per newspaper. We propose placing an advertisement in three leading dailies for five days in mid- to late February (estimated cost: $1,260). In the event that the number of delegation participants requires a second escort, funds are also requested to cover M&IE expenses for Post's Commercial Assistant to travel with the group (estimated cost: $288). Flight expenses and hotel rooms might be partially or completely subsidized by the travel agent depending on the number of participants. ¶4. Workshop "How to do Business with the U.S.": Post also proposes coordinating a one-day workshop on the topic "How to do Business with the U.S." Both USEP and the American Chamber of Commerce (AmCham) Kosovo receive frequent inquiries from local businesses about how to do business with the United States. Questions range from the practical, such as locating an American partner and identifying industry opportunities in the U.S., to technical questions about U.S. export procedures and requirements. In order to expand the local business community's knowledge about accessing the U.S. market, and how to attract more U.S. businesses to enter the Kosovo market, USEP is proposing this one-day workshop in coordination with AmCham Kosovo. Suggested speakers for this event include Pamela Ward, Senior Commercial Officer at the U.S. Embassy Zagreb, a specialist from the Department of Commerce in Washington, DC, and local businesses who have successfully entered into partnerships with U.S. companies or have exported to the United States. In order to better structure the day, AmCham could administer an informal poll of topics that would be of most interest to local businesses. However preliminary topics of discussion could include finding a U.S. partner; what U.S. companies need and want from their local partners; how to import products from the U.S. to Kosovo; and how to export products from Kosovo to the U.S. ¶5. Anticipated Costs: We will propose to AmCham to divide the costs of this event. A suggested division of costs could be to have AmCham pay for the cost of the venue, advertising and a portion of the program materials. USEP could cover travel and per diem for the two USG speakers ($2,750), translation during the workshop ($1,000) and program materials ($500). ¶6. Finally, USEP supports Embassy Sarajevo's suggestion to hold a regional energy conference/workshop focusing on U.S. energy sector products and services, combined with planned FCS-State Post Partnership Training this spring. Similar to other countries in the region, one of Kosovo's top priorities is to ensure a stable supply of electricity to meet domestic needs, with the eventual goal of becoming an energy exporter. While the Government of Kosovo is currently engaged with tendering a new lignite-powered generation facility, Kosovo would benefit from exploring the best uses and applications of all types of energy production and adopting those where Kosovo has a competitive advantage. Improving energy efficiency and environmental standards will also become a higher priority for Kosovo, as the country moves toward meeting the standards of joining the European Union. ¶7. Points of contact for these projects are Economic Officer Valerie Bilgri Holm, email: Bilgri-HolmVK@state.gov; tel: (381)(38) 59 59 3243, and Commercial Assistant Fatmir Morina, email: MorinaFH@state.gov; tel: (381)(38) 59 59 3183. ¶8. USEP appreciates EEB/CBA's consideration of these funding requests, and looks forward to implementing these projects in ¶2009. KAIDANOW