BOSNIA: FY10 BFIF PROJECT PROPOSALS

UNCLAS SECTION 01 OF 03 SARAJEVO 000059

SIPDIS

STATE FOR EEB/CBA (DENNIS WINSTEAD) AND EUR/SCE
COMMERCE FOR 4232/ITA/MAC/EUR SILVIA SAVICH
ZAGREB FOR PAMELA WARD

E.O. 12958: N/A
TAGS: BEXP KPAO ABUD AMGT BTIO ECON EINV ETRD BK
SUBJECT: BOSNIA: FY10 BFIF PROJECT PROPOSALS

REF: 09 STATE 126674

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1. Post appreciated EEB/CBA's offer of Business Facilitation
Incentive Fund (BFIF) support. Per reftel instructions, we
submit the following proposals in rank priority order. Our
responses are keyed to reftel instructions.

RENEWABLE ENERGY SEMINAR, MAY 2009
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2. a) Bosnia and Herzegovina (BiH) is a country rich in
renewable energy resources, particularly hydro and wind
power. While BiH traditionally has focused on developing the
hydropower sector, which in some areas provides up to 60% of
the energy supply, the country,s wind energy potential has
remained relatively untapped. Last year, however, the
Herzegovina region -- the area richest in wind power -- began
to actively attract foreign direct investment in this sector.
Since August 2009, several municipalities in Herzegovina
have awarded concessions to build wind farms, one of which
was given to an Austrian company. In October, Germany
announced a 46 million KM (USD 30 million) loan to develop a
wind farm in the Podvelezje municipality. Although Europe,
particularly Germany and Austria, already holds a traditional
advantage in BiH,s energy market, there are still
significant investment opportunities in the nascent wind
energy sector for U.S. companies.

b) Embassy Sarajevo proposes a three-to-five day traveling
seminar for interested U.S. companies and an
Embassy-sponsored speaker/moderator. This group will travel
to Sarajevo, Mostar, Livno, and Tomislavgrad to showcase U.S.
technical and competitive advantages in wind power. Our
target audience would include mayors, cantonal and Federation
ministers of spatial planning, energy and science, interested
non-governmental organizations, and local businesses. The
project has the support of the Ambassador and DCM, and other
sections in the Embassy, including USAID.

c) Our planning milestones are as follows. We must identify
an appropriate expert speaker on renewable energy and wind
power. We have several potential candidates, including Steve
Burns, the Senior Energy Advisor for USAID,s Europe and
Eurasia Bureau. Mr. Burns is a well-known expert in the
field and he has already agreed to participate in our
program. We have also reached out to the American Council on
Renewable Energy for suggestions on an appropriate speaker.
Secondly, we hope to hold the event in late May or early
June. The length of the seminar is negotiable and will
reflect the time our speaker and business representatives
have to spend in the region. However, we propose that the
group visit a minimum of three cities in Herzegovina in order
to maximize our exposure. We must also identify three to
five companies that would participate in the seminar. We
have already received positive feedback on this proposal from
General Electric,s London representative. Lastly, we are
seeking partner funding to supplement BFIF funds, which we
hope to use to pay a small honorarium to the speaker or
offset representational costs. Embassy Sarajevo's Office of
Public Affairs has agreed to provide $1,000.00 for the
program, and we also may be able to negotiate a cost-share
agreement with USAID to cover some travel costs if we choose
Mr. Burns as our speaker.

d) Estimated Costs for the speaker/moderator are as follows:
Transportation costs for speaker from U.S.: $1500
Seven days per diem (two half-day travel days): $1400
Total: $2900
(Honorarium: $1000 - Cost-sharing; Representational Fees: TBD
- Cost-sharing)

e) Points of Contact:

Econ/ESTH Officer Shelbie Legg
e-mail: LeggSC@state.gov
tel: 387-33-445-700 ext. 2433
fax: 387-33-659-722

Econ/Commercial Officer Tracey Newell
e-mail: NewellTB@state.gov
tel: 387-33-445-700 ext. 2040
fax: 387-33-659-722

PARTNER POST EXCHANGES - ZAGREB/BIH
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3. a) In light of our continuing efforts to promote

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commercial diplomacy in BiH and to strengthen the partner
post program between the U.S. Department of State and the
U.S. Department of Commerce, Embassy Sarajevo proposes a
joint exchange/training program with our partner post, the
U.S. Commercial Service in Zagreb, Croatia. Embassy Sarajevo
would like to propose sending our LES based in Mostar
(Svjetlana Buhovac) and our LES based in Banja Luka (Spomenko
Guzijan),to train for three days in the U.S. Commercial
Service office in Zagreb. The Senior Commercial Service
Officer and the LES serving in Zagreb have a wealth of
experience that our LES can utilize in half the time and
funds it would take to travel to FSI for the Commercial
Tradecraft course. We feel that on-the-job training would
best serve the two employees. In addition, we would like to
propose three "Doing Business with the USA" mini-seminars in
Mostar, Banja Luka and Sarajevo respectively, to be conducted
by U.S. Commercial Service Zagreb staff. These seminars and
any follow-on meetings are an efficient way to further
utilize the capabilities of our partner post while promoting
the advantages to working with U.S. companies. Post will
look to co-sponsor these programs with the American Chamber
of Commerce or use Commerce trust funds to cover mini-seminar
hospitality costs.

b) The impact for the exchanges would be two-fold: 1) an
increased understanding of the commercial services our staff
in Banja Luka and Mostar can provide and 2) promotion of U.S.
commercial diplomacy activities in BiH. In addition to the
potential export promotion benefits the seminars and the
exchange training would provide, the positive media attention
would further other U.S. policy objectives in the country,
including our desire to focus on strengthening Bosnian
economic development and attracting foreign investment.

c) Planning milestones: Ideally, we would conduct the
training exchanges first, with the mini-seminars to follow
(i.e. Mostar/Zagreb exchange followed by mini-seminar in
Mostar). However, personnel availability is a factor, and it
is possible that the seminars could be completed first.

d) (Note: All five facets of this program (three
mini-seminars and two LES exchanges) are not contingent on
the other parts, thus EEB/CBA could choose to support only a
portion of the program. End note)

Mostar/Zagreb Exchange
Travel - $400
Per diem/MI&E (4 days) - $226 x 4 = $904

Banja Luka/Zagreb Exchange
Travel - $200
Per diem/MI&E (3 days) - $226 x 3 = $678

Mini-Seminar Sarajevo
Travel - $500
Per diem/MI&E (3 days) - $214 x 3 = $642

Mini-Seminar Mostar
Travel - $400
Per diem/MI&E (3 days) - $214 x 3 = $642

Mini-Seminar Banja Luka
Travel - $200
Per diem/MI&E (3 days) - $214 x 3 = $642

Total Approximate Cost = $5208

e) Points of Contact:

Econ/Commercial Officer Tracey Newell
e-mail: NewellTB@state.gov
tel: 387-33-445-700 ext. 2040
fax: 387-33-659-722

Econ/Commercial Specialist Edhem Brankovic
e-mail: BrankovicE@state.gov
tel: 387-33-445-700 ext. 2134
fax: 387-33-659-722

PITTSBURGH COAL AND POWER CLASS
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4. a) As a third project suggestion, understanding EEB/CBA
has just asked for two, post would like to propose sending
our Banja Luka LES, Spomenko Guzijan, to the Department of
Energy/FSI Coal and Power Class, PE137 in Pittsburgh from
July 19-23.

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b) Energy, specifically thermal and hydropower, is the most
promising sector for U.S. exports in Bosnia and Herzegovina.
Guzijan represents the Embassy's branch office in the
Republika Srpska, the entity which has proven to be more
progressive when it comes to advancing its energy objectives
and looking for foreign investment. We believe Guzijan's
participation in this training will help him better represent
potential U.S. commercial interests in the power generation
sector.

c) Our planning milestones are straightforward -- Guzijan
will complete the course in July and follow-up with
interested U.S. exporters on RS investment opportunities in
the energy sector.

d) Travel, per diem, and MI&E for the five-day course will
cost approximately $6000.

e) Points of Contact:

Econ/ Commercial Officer Tracey Newell
e-mail: NewellTB@state.gov
tel: 387-33-445-700 ext. 2040
fax: 387-33-659-722

Banja Luka Branch Chief Heidi-Hakone Jovanovic
e-mail: JovanovicHH@state.gov
tel: 387-51-211-500
fax: 387-51-218-291


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