[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10550-10553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5275]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


Notice and Call for Applications for the Executive Trade Mission 
to Libya and Algeria for the Period November 4-8, 2009

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice and call for applications for the Executive Trade 
Mission to Libya and Algeria for the period November 4-8, 2009.

-----------------------------------------------------------------------

Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (USFCS) is 
organizing a Trade Mission to Tripoli, Libya and Algiers, Algeria 
November 4-8, 2009, to help U.S. firms find business partners and sell 
equipment and services in these markets. This mission will be led by a 
senior Commerce official. Targeted sectors include, but are not limited 
to, energy, infrastructure projects, information technology, 
environmental technology, and safety and security. The mission's goal 
is to provide U.S. participants with first-hand market information, 
access to government decision makers as appropriate, and one-on-one 
meetings with business contacts, including potential agents, 
distributors and partners, so that they can position themselves to 
enter or expand their presence in these markets.

Commercial Setting

Libya

    Two-way trade between the United States and Libya has surged since 
2004, with the easing of U.S. sanctions on Libya. U.S. merchandise 
exports have grown from US$39 million in 2004 to US$721 million in 
2008, consisting mostly of machinery, vehicles, iron/steel, cereals, 
and electrical machinery.
    Libya's per capita gross domestic product (GDP) is one of the 
highest in

[[Page 10551]]

Africa (US$12,400), and the Libyan government has budgeted over US$80 
billion for infrastructure development, focusing on a number of large 
projects relating to residential housing, highways, railways, 
telecommunications, and irrigation. Libya's government is making 
efforts to diversify the economy and encourage private-sector 
participation in new manufacturing and service activities in the 
country. As Libya moves forward with its transition towards more 
private-sector led growth, the country holds potentially rich trade 
opportunities in almost every sector of the economy, from oil and gas 
to agriculture to telecommunications, medical equipment and services, 
education, and tourism.
    Libya has a business culture where deals are made on the strength 
of personal contacts. This trade mission offers U.S. company 
representatives an excellent introduction to a broad range of Libyan 
officials as well as an opportunity to begin identifying appropriate 
business partners.

Best Prospects

    Energy: The Libyan economy is dominated by the energy sector, which 
accounted for 90 percent of export earnings, about one quarter of GDP 
and 60 percent of public sector wages. The market is highly 
competitive, and more than forty foreign energy sector companies are 
active in Libya. Libya has high oil and gas reserves, and the 
Government has announced its intention to increase current oil 
production of 1.7 million barrels per day to its pre-sanctions rate of 
3 million barrels per day by 2013. Libya's proven gas reserves amount 
to at least 46.4 trillion cubic feet, placing it 14th in the world; 
potential reserves are as high as 70-100 trillion cubic feet. Until 
relatively recently Libya did little with its considerable gas 
reserves, but National Oil Company Chairman Shukri Ghanem has signaled 
Libya's intention to double its production of natural gas over the next 
few years. With the deepening international market for natural gas, 
Libya is seeking both to export more gas and to increase its use to 
satisfy domestic energy needs (thereby freeing up additional oil for 
export).
    Power demand is growing rapidly, by approximately 8-9 percent 
annually, and Libya plans to more than double current installed 
capacity by 2010, at a cost of over US$3.5 billion. About 60 percent of 
current power stations are oil-fired, although the General Electricity 
Company of Libya has announced plans to make a major effort to switch 
to gas-fired turbines.
    Infrastructure: Emerging from two decades of international 
sanctions, Libya has extensive infrastructure development needs in 
almost every sector of the economy and region of the country. In 
November 2007, the government announced plans to spend more than US$123 
billion on public works over five years. Contracting services and 
construction materials will be in great demand in the coming years to 
support major road, large-scale office complex, hotel, and residential 
housing projects.
    Information Technology: Telecommunications infrastructure 
development is the responsibility of the state-owned General Post and 
Telecommunications Company (GPTC), created in 1984. GPTC oversees the 
operation of fixed and mobile lines, as well as Libyan Internet service 
providers (ISPs). GPTC has expanded landline coverage to many parts of 
Libya, although the quality of its infrastructure and service needs 
substantial improvement. In 1996, GPTC spun off mobile phone company 
Al-Madar (``Orbit'') and launched a second, Libyana, in 2004. Libyana, 
which offered service at a fraction of al-Madar's rates, quickly became 
the provider of choice in Libya, now providing an estimated 4 million 
accounts (91 percent of market share). Cell phone penetration is 
estimated at 75 percent. GPTC is continuously upgrading its systems and 
on the lookout for new technology. Additionally, there have been some 
indications that the government may open up the market for additional 
cellular service providers.
    Environment: Water quality in Libya in and around the major 
population centers is known to be extremely poor, leaving opportunity 
for U.S. firms in water treatment technologies. Libya's government has 
expressed increased interest in boosting the country's desalinated 
water output, and several large projects have been announced as part of 
Libya's five-year infrastructure development plan. The Renewable Energy 
and Water Desalination Research Center is currently focusing on 
desalination units for use in Libya's rural communities not currently 
serviced by the Great Man Made River Authority. Over 60 percent of 
medium and large capacity desalination plants currently operating are 
more than 17 years old. Water, wastewater treatment, and desalinization 
contracts valued at several hundred million dollars are expected to be 
awarded over the coming few years. The Great Man Made River project 
itself may offer opportunities for large contracting firms.
    Safety and Security: While U.S. firms need to be aware of U.S. 
Government restrictions on the export of certain security-related 
products to Libya, opportunities for U.S. suppliers are projected to 
increase as Libya steps up efforts to improve border control and 
protection of public and private facilities. There is growing interest 
in systems for access control, identification, facilities monitoring 
and management, computer protection, and visual warning and location, 
among other applications.

Algeria

    Algeria is the second largest country in Africa in terms of land 
mass and has the second largest population in the North Africa/Middle 
East region. Algeria's market of 35 million inhabitants, energy wealth, 
and growing demands for modern infrastructure have generated interest 
from governments and private companies around the world. Large oil and 
natural gas resources and an economy growing at 3-5 percent per year 
(2008 estimate) have generated almost US$200 billion in foreign 
exchange reserves--more than any country in the region including the 
Gulf. In 2008, U.S. exports to Algeria totaled more than US$1.1 
billion, and the United States ranks as Algeria's largest bilateral 
trading partner in the world.
    The placement of the first American Commercial Counselor at the 
U.S. Embassy in 15 years has allowed the USFCS to better support U.S. 
companies trying to take advantage of commercial opportunities in 
Algeria. The trade mission offers an opportunity for U.S. business 
representatives to meet key Algerian business leaders and government 
decision makers who are hungry for a stronger American private sector 
role in this country's development, diversification, and economic 
expansion. U.S. exporters considering this region are advised to gain a 
foothold in this promising market.
    High-level Algerian government officials and business leaders have 
publicly expressed their desire for greater U.S. business collaboration 
and involvement in major projects in a variety of sectors.

Best Prospects

    Energy: As one of the top ten producers of oil and natural gas in 
the world and a member of Organization of Petroleum Exporting Countries 
(OPEC), Algeria's economy is founded on hydrocarbons. Existing upstream 
and

[[Page 10552]]

midstream infrastructure is aging and inadequate to meet Algeria's 
near-term production goals. Two new gas pipelines to Europe will be 
constructed beginning in 2009. The Government of Algeria recently 
expressed specific interest in involving more U.S. firms in electric 
power generation projects, renewable energy projects including wind and 
solar, and modernizing/ expansion of mining operations in Algeria. 
Sonelgaz, Algeria's power generation parastatal, will invest nearly 
US$30 billion to expand and upgrade power generation and distribution 
capacity. Of the total investment, US$5 billion will be allocated to 
generation, US$8 billion to transmission, US$3 billion to gas shipping 
and more than US$6 billion to distribution. The Government-owned 
Sonatrach company--also a leading oil consortium--approved a US$45 
billion investment plan for 2009-12. The lion's share--US$20 billion--
is aimed at developing the Algerian petrochemical industry. The other 
major areas of investment include US$10 billion for upstream 
exploration and development, US$6 billion for hydrocarbons 
transportation facilities programs, and US$1.8 billion for hygiene, 
safety and environmental protection.
    Infrastructure Projects: Algeria is now focusing on the development 
of asphalt bitumen, civil engineering techniques, and technology to 
construct roads in arid and desert climates. The latter is particularly 
sought after for the upcoming high plateau East-West Highway project, 
which includes 23 connector roads. The Ministry has budgeted US$66 
billion for these projects expected to be completed through 2013.
    Environmental: The Algerian Government will spend US$2 billion per 
year on water and environmental infrastructure for the next five years 
for five new dams, ten desalination plants, a number of water treatment 
and reclamation plants, remote sensing and safety systems for Algerian 
dams, high-profile water transfer projects, and rural irrigation.
    Safety and Security: The Government is very interested in procuring 
border surveillance and protection solutions, and critical site 
security systems for government ministries and the country's 
hydrocarbon infrastructure. In addition, closed circuit television, 
tire wreckers, and night vision capabilities are in demand, as are ID 
card solutions incorporating biometrics.
    Information Technology: Algerians are increasingly tech-savvy and 
interested in acquiring expertise in the information and communications 
technology sector. Government ministries are interested in 
modernization and digitization of record-keeping. Internet usage, 
through businesses and Internet cafes, is estimated at over 40 percent. 
Mobile phones are commonplace, and Algeria is looking toward fourth-
generation technology. Mobile phones, accessories, and add-on services, 
business-to-business information management and strategies, internet 
connectivity and backbone equipment and services, and global 
positioning systems technology and services also represent good 
opportunities for U.S. exporters.

Mission Goals

    The goal of the trade mission is to provide U.S. participants with 
first-hand market information, access to government decision makers as 
appropriate and one-on-one meetings with business contacts, including 
potential agents, distributors and partners, so they can position 
themselves to enter or expand their presence in the Libyan and Algerian 
markets.

Mission Scenario

    The Trade Mission will include two stops: Tripoli, Libya and 
Algiers, Algeria. In each city, participants will meet with new 
business contacts, learn about the markets by participating in Embassy 
briefings, and explore additional opportunities at networking 
receptions. Activities will include one-on-one meetings with pre-
screened business prospects in both countries. (Note that Saturday and 
Sunday are part of the regular work week in Algeria.)

                           Proposed Timetable
------------------------------------------------------------------------
                      '>                                   '>
------------------------------------------------------------------------
Tuesday, November 3..........................  Arrive in Libya--optional
                                                no-host dinner.
Wednesday, November 4........................  Orientation and market
                                                briefing. Meetings with
                                                government and industry
                                                officials.
Thursday, November 5.........................  One-on-one business
                                                appointments. U.S.
                                                Embassy reception.
Friday, November 6...........................  Travel from Tripoli to
                                                Algiers.
Saturday, November 7.........................  Orientation and market
                                                briefing. Meetings with
                                                government and industry
                                                officials. U.S. Embassy
                                                reception.
Sunday, November 8...........................  One-on-one business
                                                appointments--end of
                                                mission.
------------------------------------------------------------------------

Participation Requirements

    All parties interested in participating in the Trade Mission to 
Libya and Algeria must complete and submit an application package for 
consideration by the U.S. Department of Commerce. All applicants will 
be evaluated on their ability to meet certain conditions and best 
satisfy the selection criteria as outlined below. A minimum of 8 and a 
maximum of 20 companies will be selected to participate in the mission 
from the applicant pool. U.S. companies already doing business in the 
target markets as well as U.S. companies seeking to enter these markets 
for the first time are encouraged to apply.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the U.S. Department of Commerce in the form of a 
participation fee is required. The participation fee will be $5,850 for 
a small or medium-sized enterprise (SME) * and $6,900 for large firms. 
The fee for each additional firm representative (SME or large firm) is 
$600, with a limit of two representatives per firm. Interpreters are 
included in the fee. Expenses for travel, lodging, some meals, and 
incidentals will be the responsibility of each mission participant. 
Delegation members will be

[[Page 10553]]

able to take advantage of Embassy rates for hotel rooms.
---------------------------------------------------------------------------

    * An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (for additional information see 
http://www.export.gov/newsletter/march2008/initiatives.html).
---------------------------------------------------------------------------

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the U.S. Department of 
Commerce receives an incomplete application, the Department may reject 
the application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least 51 percent U.S. content of the value of the finished 
product or service.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's products or services to the 
Libyan and Algerian markets.
     Applicant's potential for business in Libya and Algeria, 
including likelihood of exports resulting from the mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.

Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including posting on the U.S. Department of Commerce trade missions 
calendar--http://www.ita.doc.gov/doctm/tmcal.html--and other Internet 
Web sites, publication in domestic trade publications and association 
newsletters, direct outreach to the Department's clients and 
distribution lists, posting in the Federal Register, and announcements 
at industry meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than August 1, 2009. Applications received after August 1, 2009, 
will be considered only if space and scheduling constraints permit.

Disclaimer, Security, and Transportation

    Trade mission members participate in the trade mission and 
undertake related travel at their own risk and are advised to obtain 
insurance accordingly. Any question regarding insurance coverage must 
be resolved by the participant and its insurer of choice. The U.S. 
Government does not make any representations or guarantees as to the 
safety or security of participants. Companies should consult the State 
Department's travel warning for Algeria: http://travel.state.gov/travel/cis_pa_tw/cis/cis_1087.html. ITA will coordinate with the 
U.S. Embassy in Algiers to arrange for transportation of the mission 
participants to and from the airport and hotel. The hotel that will be 
the primary venue for the mission is a luxury hotel and does have 
strong security measures in place. Security will be furnished by the 
U.S. Embassy in Algiers and private hotel security.
    The U.S. Government does not make any representations or guarantees 
as to the commercial success of businesses which participate in this 
trade mission.

For More Information and an Application Packet Contact

    Lisa Huot, U.S. Commercial Service, Department of Commerce, Tel: 
202-482-2796, Fax: 202-482-9000, e-mail: 
[email protected].

    Dated: March 3, 2009.
Lisa Huot,
CS Trade Mission Program, U.S. Department of Commerce.
[FR Doc. E9-5275 Filed 3-10-09; 8:45 am]
BILLING CODE 3510-DS-P