[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Notices]
[Pages 40326-40329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16728]


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DEPARTMENT OF COMMERCE

International Trade Administration


Executive-Led Infrastructure Business Development Mission 
Statement November 11-17, 2012, Indonesia and Vietnam

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration (ITA), U.S. and Foreign Commercial Service (US&FCS) is 
organizing an executive-led trade mission to Indonesia and Vietnam. The 
proposed trade mission, scheduled for November 11-17, 2012, will visit 
two of Southeast Asia's most dynamic markets and will help participants 
gain first-hand market knowledge and establish business contacts with 
senior decision makers.
    Southeast Asia offers one of the world's largest and most dynamic 
markets for American exporters. The 10 member states comprising the 
Association of Southeast Asian Nations (ASEAN) represent a market of 
609 million people that received over $76 billion of merchandise 
exports from the United States in 2011. Collectively, these member 
states have, a collective GDP of nearly $2.2 trillion. ASEAN's total 
merchandise trade has skyrocketed, rising from around $400 billion a 
year in 1993 to $2.0 trillion in 2010. This trade mission will also 
serve as a follow-up to Secretary Locke's June 2010 Clean Energy 
mission, which included a stop in Indonesia.
    The purpose of the mission is to inform U.S. firms about 
opportunities in Southeast Asia's rapidly expanding market and to 
position U.S. companies to seize infrastructure-related export 
opportunities in Southeast Asia. The trade mission will be comprised of 
representatives from U.S. companies that provide state-of-the-art 
market services and technology to sectors critical to infrastructure 
development. The mission will visit Hanoi, Ho Chi Minh City (HCMC), and 
Jakarta. In each city, participants will receive market briefings and 
meet with key government decision makers and prospective private sector 
partners during customized, one-on-one meetings.
    Top infrastructure sectors include:

 Energy
 Aviation
 Environmental Technology
 Architecture, Construction and Engineering

Commercial Setting

Indonesia

Indonesia Market Information
Energy--Electrical Power Generation and Transmission; Energy Management 
Services and Products; and Energy Efficiency
    The electric power generation sector in Indonesia has experienced a 
high growth in demand averaging seven to nine percent per annum during 
the last five years. However, due to lack of generating capacity, 
Indonesia still faces a power shortage in many parts of the country 
outside of Java and Bali. The overall electrification rate in Indonesia 
was 70.4% in 2011, one of the lowest rates in the region, affecting an 
estimated 80 million Indonesians.
    As Indonesia develops, the government-owned electricity company, 
PLN, is under significant pressure to build additional power generating 
capacity and to upgrade the current generation and transmission 
infrastructure. Construction of power plants, transmission and 
distribution lines in Indonesia may offer significant commercial 
opportunities for U.S. companies that supply engineering services and 
equipment such as turbines, substations, transmission, transformers and 
distribution equipment. There are also growing opportunities to upgrade 
underperforming installations built in the last decade.
    Demand-side power management concepts are just being introduced 
into Indonesia. There are likely to be growing opportunities for U.S. 
firms to offer energy efficiency solutions to new commercial facilities 
and retrofitting opportunities to some older industrial locations. 
Indonesia has one of the most significant natural endowments of biomass 
resources of any country in the world. Current projects only tap 1% of 
the available resource. Feed-in tariffs for biomass, biogas, and waste-
to-energy encourage small-scale production and create opportunities for 
U.S. companies to invest or to offer a wide range of new technologies. 
The Indonesian government also promotes conversion of biomass to 
biofuels, which may result in opportunities for innovative U.S. 
technologies.
Aviation--Airports, Ground Support and Logistics
    With a population of more than 240 million spread over 17,000 
islands, Indonesia presents an enormous aviation opportunity and one of 
the fastest-growing domestic air traffic markets in the world. 
Nationally, the number of airline passengers is projected to reach 143 
million in 2012 while passenger traffic at Jakarta's Sukarno Hatta 
increased from 43.8 million in 2009 to 58.9 million in 2011, ranking as 
the 12th busiest airport globally. The Directorate General of Civil 
Aviation, Ministry of Transportationannounced that it will complete its 
National Airport Master Plan in the second half of 2012 and that master 
planning projects will move ahead in the first half of 2013. Indonesia 
currently has 25 airport projects planned for upgrade and expansion by 
2014 and two new green field airports as well as expansions and 
upgrades of another 45 smaller DGCA-run airports over the next decade. 
Given the large number of new aircraft coming into the fleets of Lion 
Air and Garuda Indonesia, and that major airports are already operating 
far beyond capacity, airport expansion is a top priority infrastructure 
sector. The Ministry of Transportation estimates project spending needs 
at $3.5 billion over 4 years. Buyers will include the two SOE airport 
operators, Angkasa Pura 1 and 2, DGCA for smaller airports, and new 
joint venture companies building new airport projects.
    Significant opportunities exist along all subsectors, especially in 
the areas of airport planning and design, ground support equipment and 
logistical infrastructure. As a result of surging demand created by an 
emerging middle class and a large population, spread over an 
archipelago the width of the United States, Indonesia's private 
airlines are looking to compete in mid-markets, necessitating 
significant and concurrent development of airport infrastructure in 
many regions.
    Specifically, there are pressing needs for air traffic control 
systems, airport ground support equipment, safety and security 
equipment, IT infrastructure and services, and engineering and 
logistics surrounding the airport supply chain. Indonesia is regarded 
by both industry and the U.S. Government as a market well-positioned to 
accept Next Generation Air Transportation System (NextGen) 
technologies, particularly given the capacity enhancements derived from 
NextGen that would alleviate much the country's air system

[[Page 40327]]

constraints. Indonesia also plans to establish its new SOE for flight 
navigation services by the end of 2012.
Environmental Technology--Water Resource Management and Pollution 
Control Equipment/Solid Waste Treatment and Disposal Technologies
    Indonesia faces a constant struggle to provide adequate clean water 
and sanitation for its rapidly growing population. Similarly, demand 
for clean water is steadily increasing due to economic activity in 
urban and rural areas, and the rapid growth of the middle class. While 
access to clean water will reach near 50% in 2012, it is still far 
below Millennium Development Goals (MDGs) for clean-water access.
    The Government of Indonesia (GOI) faces many challenges in 
providing clean-water supply such as scarcity of raw water resources, 
water leakage problems (average of 33% of non-revenue water), and poor 
management of water companies. U.S. firms have significant 
opportunities to advise on the process at multiple levels, and have a 
good reputation for quality and advanced technology in the field of 
water and wastewater treatment. Although the market is price sensitive, 
U.S. products are strong competitors in water filtration, water 
purification equipment and control systems, water treatment chemicals, 
positive displacement pumps, valves and meters. There are also growing 
opportunities in wastewater treatment for industrial facilities, 
especially for large-scale new petrochemical and chemical facilities 
and new power generation plants. There are also significant specialized 
opportunities in water treatment/waste management for major mining 
projects.
    In regard to solid waste, many areas in Indonesia, especially the 
Special Capital District of Jakarta are increasingly facing issues in 
managing solid waste as the urban population continues to rise, and 
property development and urbanization reach to all corners of the 
archipelago. U.S. firms have opportunities in introducing low-cost 
technology and solutions for waste disposal, and Waste-to-Energy (WtE) 
technology.
Architecture, Construction and Engineering--Port Infrastructure and 
Major Projects
    Infrastructure development in Indonesia is guided by the Master 
Plan for the Acceleration and Expansion of Indonesian Economic 
Development (MP3EI), issued by the GOI in May 2011. A total of 367 
infrastructure projects with a projected value of an estimated $440 
billion (if actually constructed) are showcased in the Master Plan, 
with the majority of these projects in transport (i.e., toll roads, 
airports, railway, and ports). The recent approval of the land 
acquisition bill in December 2011 is expected to speed up the 
implementation of these projects, especially roads, toll roads and 
railways. The GOI-owned company Pelindo 2 plans to begin the process 
for bidding on a multi-billion dollar project for Jakarta's Kalibaru 2 
13mn TEU terminal project expansion. The GOI is still targeting port 
development as a priority, as five out of the country's six largest 
container ports are currently over-congested and an estimated 15mn TEUs 
of extra capacity are required by 2020. Currently, the GOI is seeking 
assistance to rapidly construct three new ports in Jakarta, Batam and 
Papua. Opportunities exist for U.S. companies with experience in port 
architecture, construction and engineering, IT systems as well as 
logistics and container management.

Vietnam

Ho Chi Minh City and Hanoi
Energy--Power Generation, Efficiency Grid Transmission and Distribution 
Modernization
    Electricity of Vietnam (EVN) forecasts 12% annual electricity 
demand growth over the next 15 years. Significant demand exists for 
design engineering services; project management; engineering, 
procurement, and construction (EPC); and hardware for power generation 
projects. Low efficiency in energy transmission and usage due to high 
wastage means great opportunities for providers of grid modernization 
technology. Mission participants will also have the opportunity attend 
a regional ASEAN Smart Grid and Power Workshop in Hanoi, organized by 
the U.S. Trade and Development Agency.
Aviation--Airports, Ground Support and Logistics
    The Civil Aviation Authority of Vietnam estimates that Vietnam 
would require about $15 billion in investment to achieve its 
development plan for the aviation sector by 2020, of which $8 billion 
will be for aircraft fleet expansion, $5 billion for constructing and 
upgrading airports and $2 billion for airport operation and air traffic 
management. According to the International Air Transport Association 
(IATA), by 2014, Vietnam will become the world's third fastest-growing 
market for international passengers and freight, and the second-fastest 
in the number of domestic passengers.
    At present, the government budget can only meet about 20 percent of 
the total investment required for airport development. Raising 
sufficient funds for this development is an immense challenge for 
Vietnam now and in the future. The plan for the period 2010-2015 calls 
for investment of more than US$1.3 billion in airport modernization and 
expansion and rehabilitation in order to accomplish an efficient 
network of 20 airports in operation. In particular, Long Thanh 
International Airport (LTIA), which is planned to be Vietnam's largest 
international airport, is scheduled to be constructed in 2015 and 
become operational by 2020. With an estimated investment of more than 
US$10 billion and covering more than 5,000ha, LTIA is expected to serve 
100 million passengers and 5 million tons of cargo per year at its full 
capacity. Funding for the airport construction is expected to come from 
Government bonds, Official Development Assistance (ODA) and private 
sources.
    In keeping with Vietnam's growing aviation market and air system 
modernization plans, vendors of NextGen technologies and services can 
offer the state-of-the-art solutions that increase efficiency, improve 
safety, and reduce overall costs.
Environmental Technology--Water Resource Management and Pollution/
Disposal Technologies
    The lack of clean water is one of Vietnam's most pressing 
environmental concerns. At present, it is estimated that only about 70 
percent of the Vietnamese population has access to potable water. A 
high rate of water loss, 32 percent, further aggravates the problem. In 
addition to water supply, one of the most pressing environmental 
concerns is drainage and sewage. Due to rapid and ongoing urbanization 
and industrialization, improved municipal and industrial wastewater 
treatment has emerged as a critical need. Funding for water supply and 
wastewater projects comes from various sources within the state budget, 
as well as ODA loans and grants and from the World Bank and Asian 
Development Bank (ADB).
    In 2011, ADB has approved Multi-tranche Financing Facility (MFF) in 
water supply and sanitation sector with total amount of one billion USD 
within the next ten years. This investment program will help water 
supply companies in Viet Nam to improve their performance. It will 
support capital investment in water companies and co-finance the 
National Nonrevenue Water (NRW) Program. The program will utilize an 
MFF to provide longer-term support for institutional reform in the

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Viet Nam water sector until 2020. The MFF will be used as seed money to 
leverage parallel co-financing and, importantly, gain access to 
commercial finance and increased private sector participation. Four 
pilot cities--Da Nang, Hai Phong, Ho Chi Minh City (HCMC), and Hue--
were identified for project preparation in 2008. The first periodic 
financing request (PFR) will cover HCMC. Subsequent tranches will 
finance part of the National NRW Program and investment subprograms 
consisting of water supply infrastructure for provincial water 
companies, duplicating the model established with HCMC in PFR1. Several 
cities have initiated discussions with the government to finance future 
tranches totaling over $300 million for water production plants, 
transmission and distribution networks.

Architecture, Construction and Engineering

    While Vietnam's real estate market has slowed in the last year, 
long-term prospects for architecture, construction and engineering 
services continue as Vietnam develops its built environment and invests 
in much-need infrastructure throughout the country. Architecture 
services, concept design, construction management, project management, 
and new building technologies represent the best opportunities for U.S. 
firms. Specific prospects include high-end hotels and resorts, retail 
and mixed-use projects, many of which are foreign invested and require 
high-quality design and construction. Awareness of sustainable and 
``green'' buildings is just beginning to emerge, but is expected to 
grow. Other prospects include: landscape architecture, water features 
and swimming pools, hotel and restaurant interiors, town planning/
master planning, green design/building materials (energy efficient, 
HVAC, lighting and building controls), airport design, healthcare 
design, and use of high-end architectural interior products and 
designs.

Mission Goals

    The goal of the mission is to provide U.S. participants with first-
hand market information, access to Indonesian and Vietnamese government 
decision makers and one-on-one meetings with business contacts, 
including potential agents, distributors, and partners, so that they 
can position themselves to enter the Vietnamese or Indonesian market or 
expand their business presence in Southeast Asia. Thus, the mission 
seeks to:

 Improve U.S. companies' understanding of commercial 
opportunities in Indonesia and Vietnam
 Facilitate business meetings between U.S. and host country 
businesses to promote the development of U.S. commercial opportunities 
in Indonesia and Vietnam
 Introduce U.S. industry representatives to the Southeast Asian 
business community and government leaders
 Provide policymakers with U.S. industry feedback on the 
direction of its commercial reforms

Mission Scenario

    The business development mission will take place in Indonesia and 
Vietnam. Participants will meet with leaders in the public and private 
sector, learn about the market by participating in Embassy briefings, 
and explore additional opportunities at networking receptions. 
Activities will include one-on-one meetings with pre-screened business 
prospects

Proposed Timetable

    Travel time--Hanoi (Nov 9 & 10)--Travel Time--(approx 32 hours).

Day One--Hanoi (Sunday Nov 11)

Arrive Hanoi
Delegation welcome/embassy briefing

Day Two--Hanoi (Monday Nov 12)

Government meetings
Luncheon event
One-on-one business appointments
Prime Minister meeting
Ambassador reception

Day Three--Hanoi (Tuesday, Nov 13)

One-on-one business appointments
TDA Smart Grid Conference (if applicable) (Smart grid companies would 
not go to HCM)
Travel to HCMC--afternoon
Consulate briefing
Consulate reception

Day Four--HCMC (Wednesday, Nov 14)

One-on-one business appointments
Industry sector briefing
Luncheon
Travel to Singapore--overnight only

Day Five--Singapore-Jakarta (Thursday, Nov 15)

Arrive in Jakarta--late morning
Embassy briefing
Government meetings
Ambassador reception

Day Six--Jakarta (Friday, Nov 16)

Breakfast event
One-on-one meetings
No-host conclusion dinner--mission completed

Day Seven--Jakarta (Saturday, Nov 17)

Travel to U.S.

Participation Requirements

    This business development mission is designed for a maximum of 15 
qualified companies and can accommodate a maximum of 25 participants 
from the companies accepted. All parties interested in participating in 
this business development mission to Indonesia and Vietnam, must submit 
a completed application package for consideration by the U.S. 
Department of Commerce. All applicants will be evaluated on their 
ability to meet certain conditions and to best satisfy the selection 
criteria as outlined below. U.S. companies already doing business in 
the target sectors as well as U.S. companies seeking to enter this 
market for the first time are encouraged to apply.

Fees and Expenses

    After a company has been selected to participate in the mission, a 
payment to the U.S. Department of Commerce in the form of a 
participation fee is required. The participation fee is $6,208 for a 
single participant for a small- or medium-sized enterprise (SME) \1\ 
and $8,700 for a single participant for a large firm. Participants per 
company will be limited due to space constraints. The fee for each 
additional participant is $1,000. Applicants are encouraged to provide 
a clear business purpose and clarification of role of any additional 
participants proposed to participate in the mission.
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    \1\ 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/contractingopportunities/owners/basics/whatismallbusiness/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. See http://www.export.gov/newsletter/march2008/initiatives.html.
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    Interpretation services for official activities are included in the 
fee. Expenses for travel, lodging, meals, and incidentals will be the 
responsibility of each mission participant.

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including 
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 application.

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     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 fifty-one percent U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:

 Suitability of the company's products or services to the 
mission goals.
 Applicant's potential for business in Indonesia and Vietnam.
 Consistency of the applicant's goals and objectives with the 
stated scope of the mission.

(Additional factors, such as diversity of company, size, type and 
location, may be considered during the selection process.)
    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 will 
not be 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://export.gov/trademissions/--and other Internet Web 
sites, publication in domestic trade publications and association 
newsletters, direct outreach to the Department's clients and 
distribution lists, publication 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 31, 2012, by the close of business. Applications 
received after August 31, 2012, will be considered only if space and 
scheduling constraints permit. Applications will be vetted on a rolling 
basis starting July 5, 2012.

Disclaimer, Security, and Transportation

    Business development mission members participate in the 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. The U.S. Government does not make any 
representations or guarantees as to the safety or security of 
participants.

For More Information and an Application Packet Contact

U.S. Commercial Service Domestic Contact

    Ms. Jessica Arnold, International Trade Specialist, U.S. Commercial 
Service, Washington, DC, Tel: 202-482-2026, [email protected].

Contact CS Jakarta

    Mr. Jesse Lapierre, Deputy Senior Commercial Officer, Jakarta, U.S. 
Commercial Center, Tel: 62-21 526-2850, [email protected].

Contact CS Hanoi

    Ms. Sarah Kemp, Senior Commercial Officer--Hanoi, U.S. Embassy 
Hanoi, Tel: 84-4-3850-5000, Ext. 5070S, [email protected].

Contact CS HCMC

    Mr. Frank Joseph, Commercial Officer--Ho Chi Minh City, 
[email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-16728 Filed 7-6-12; 8:45 am]
BILLING CODE 3510-FP-P