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