[Federal Register Volume 79, Number 18 (Tuesday, January 28, 2014)]
[Notices]
[Pages 4443-4447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01521]


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DEPARTMENT OF COMMERCE

International Trade Administration


Secretarial Energy Business Development Mission to West Africa, 
May 18-23, 2014

AGENCY: International Trade Administration, Commerce.

ACTION: Notice.

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Mission Description

    The United States Secretary of Commerce will lead an Energy 
Business Development Mission to West Africa with stops in Ghana and 
Nigeria from May 18-23, 2014. This business development mission will 
promote U.S. exports to Africa by helping U.S. companies launch or 
increase their business in the energy sector in West Africa. The 
mission will include

[[Page 4444]]

government and business-to-business meetings, market briefings, and 
networking events. In both countries, the governments and private 
sector are investing significant money in developing their energy and 
power sectors. As a result, the mission will focus on export-ready U.S. 
firms in the energy sector, including oil and gas, that can help the 
target countries develop and manage energy resources and systems, build 
out power generation and transmission, and distribution. Mission 
participants will range from fully integrated energy solutions 
companies to equipment, technology and ancillary services providers.
    The President approved the Presidential Policy Directive (PPD) on 
Sub-Saharan Africa on June 14, 2012, which became publicly known as the 
U.S. Strategy Toward Sub-Saharan Africa (``Strategy''). The Strategy 
recognizes that Africa holds the promise to be ``the world's next major 
economic success story.'' This recognition of the significant 
development within Sub-Saharan African economies over the past several 
years also marks a call for the evolution of U.S. Government economic 
and commercial policy toward the region, doing more to focus on the 
two-way nature of trade and investment. This is the first time that 
promoting U.S. trade and investment has been a cornerstone of a PPD on 
Sub-Saharan Africa, and it is this objective that the Department of 
Commerce is working to institutionalize. During his trip to Africa in 
late June/early July, the President announced plans for Secretary 
Pritzker to lead a trade mission to sub-Saharan Africa in 2014.
    The delegation will be composed of 20-25 U.S. energy firms, 
representing the mission's target sub-sectors. Representatives of the 
U.S. Trade and Development Agency (USTDA), the Export-Import Bank of 
the United States (Ex-Im) and the Overseas Private Investment 
Corporation (OPIC) will be invited to participate to provide 
information and counseling regarding their suite of programs and 
services in sub-Saharan Africa. This collaborative interagency approach 
highlights the Doing Business in Africa (DBIA) campaign, which aims to 
harness federal trade promotion and financing capabilities to help the 
U.S. private sector identify and seize upon trade and investment 
opportunities.

Commercial Setting

Overview of Energy Needs in Africa

    With over 600 million people in sub-Saharan Africa lacking access 
to electricity, the development challenge is enormous. More than two-
thirds of the population of sub-Saharan Africa is without electricity, 
including more than 85 percent of those living in rural areas. 
According to the International Energy Agency, sub-Saharan Africa needs 
more than $300 billion in investments to achieve universal electricity 
access by 2030--far beyond the capacity of any traditional development 
program.
    This mission is an opportunity to connect U.S. company products, 
services and expertise to support Africa's enormous power potential, 
including new discoveries of vast reserves of oil and gas.

Ghana

    This West Africa nation of 25 million people is often referred to 
as the `Ireland of Africa,' a testament to the Ghanaian's well-earned 
reputation for being friendly and welcoming to outsiders. It is 
expected that the country will lead the region as an example for 
stability, transparency and steady and diversified economic growth. 
Ghana also holds a special place in the colonial history of the 
continent, having been the first democratic Sub-Saharan African nation 
to gain independence when the Republic of Ghana was established on 
March 6, 1957.
    Ghana's economy has been strengthened by a quarter century of 
relatively sound management, a competitive business environment, and 
sustained reductions in poverty levels. Per-capita GDP (PPP) in Ghana 
now stands at $3,500, significantly higher than most of Sub-Saharan 
Africa and built on a more sustainable and diversified economy. GDP 
growth has averaged 4% to 8% over the last decade, surging to 7.9% in 
2012 (making Ghana the fastest growing economy that year) as new oil 
revenue came on line. Ghana continues to face challenges in 
infrastructure development and a worrying increase it its debt-to-GDP 
ratio has limited financing options. A recent credit downgrade by 
Fitch, rating Ghana's sovereign debt at B-, will make future financing 
options even more limited.
    While services make up an increasingly important role in Ghana's 
economy, natural resources and commodity prices still dominate domestic 
decision making. Ghana is the world's second largest exporter of cocoa 
and one of the largest producers of gold. The nation's resource base 
was diversified in 2007 when moderate amounts of oil and gas reserves 
were discovered offshore in the Gulf of Guinea--enough to spur strong 
economic growth but not enough to destabilize the economy. Offshore 
exploration and production has been managed primarily by foreign firms, 
led by Tullow Oil, and continues to grow with new fields discovered in 
recent years. Manufacturing lags far behind, due to supply chain 
uncertainties, lack of a skilled workforce and inadequate 
infrastructure.
    Oil production at Ghana's offshore Jubilee field began in mid-
December, 2010 and has, as expected, boosted economic growth 
significantly. The field is currently producing 120,000 barrels a day, 
its expected peak level, with reserves estimated at 2 billion barrels. 
Additional fields are currently being explored and developed, with 
additional oil resources expected to come online in the next five 
years. Gas production from the fields continues to be a problem, 
primarily the result of delays in planning and development of required 
infrastructure developments. A Chinese-funded and developed gas 
processing facility originally scheduled for completion in 2012 is 
still months or years away from production.
    A worrying development, impacting particularly the oil and gas 
sector, is Ghana's recent push for local content requirements. In 
November 2013, Parliament approved legislation that limits foreign 
investments in Ghana's petroleum sector due to requirements that local 
partners of foreign investors maintain a significant share of any oil 
and gas projects and that corporate management be predominately local. 
With a petroleum industry that is only four years old, foreign 
investors will be challenged in finding qualified partners, managers 
and employees as Ghana's local content regulations go into force.
    Without doubt one of Ghana's greatest challenges is utilizing its 
petroleum reserves and putting local production to use in the power 
sector. Ghana currently produces 2,000 megawatts of power, half from 
hydropower plants on the Volta River. Ghana's thermal power production 
has been hampered by adequate and reliable sources of gas. The primary 
supplier to Ghana's gas-fired power plants, the West Africa Gas 
Pipeline has been both an unreliable and costly solution. Plans to 
bring greater amounts of gas onshore from Jubilee have yet to 
materialize. The U.S. Government's Power Africa initiative and the 
Millennium Challenge Corporation are putting together programs that 
will help this significant problem facing the country.
    Ghana will continue to be viewed as a success story for West Africa 
and, indeed, for all of Sub Saharan Africa. To truly reach its 
potential, however, decisive leadership making difficult decisions 
needs to lead the nation to the

[[Page 4445]]

next level of development. It will be a difficult task.

Nigeria

    Nigeria is Africa's most populous country, accounting for 
approximately one-fifth of the continent's people and 2.4 percent of 
the world's population. It is arguably one of the most culturally 
diverse societies in the world, with approximately 250 ethnic groups 
among its estimated 170 million people. In 1991, Nigeria's capital was 
moved from Lagos to Abuja, tagged as the ``Center of Unity.'' A planned 
city, Abuja is now the political center, or seat of Nigeria's Federal 
Government. International organizations such as the United Nations, the 
Economic Community of West African States (ECOWAS), African Union (AU), 
and Organization of Petroleum Exporting Countries (OPEC) have regional 
headquarters in Abuja. The ``Commercial Hub,'' Lagos is the most 
populous city in Nigeria and one of the fastest growing cities in the 
world. Lagos State is estimated to have a population of more than 17 
million and is modernizing itself to meet the criteria of a ``mega 
city,'' with major infrastructure projects including the construction 
of a metro/light railway.
    Nigeria's annual growth rate averaged over seven percent during the 
past decade. As a result, the country is regarded as one of the 
fastest-growing economies in the world. To sustain this annual growth 
rate, the Government of Nigeria (GON) is privatizing important sectors 
of Nigeria's economy, promoting public-private partnerships, and 
encouraging strategic alliances with foreign firms, especially for 
infrastructure development and technology acquisition in critical 
sectors such as security, power generation, transportation, and 
healthcare.
    Nigeria is the chief driver of international trade in the Economic 
Community of West African States (ECOWAS), which consists of 16 
countries. Market analysts from the National Association of Chambers of 
Commerce, Industry, Mines, and Agriculture (NACCIMA) claim that Nigeria 
accounts for over 40 percent of imports in the sub-region and ranks 
among Africa's largest consumer markets. As a gateway to 15 smaller 
West African countries and a net importer of equipment, Nigeria can be 
a very rewarding market for U.S. companies that take the time and 
effort to understand its complex market conditions and opportunities, 
find the right partners and clients, and take a long-term approach to 
market development.
    Nigeria ranks as Africa's largest oil producer and the twelfth 
largest in the world, producing high-value, low-sulfur content crude 
oil. A five-year-long effort to reform Nigeria's oil and gas legal 
framework has created uncertainty, delaying billions of dollars in 
potential investment in this sector. The Nigerian National Assembly is 
reviewing the most recent version of a Petroleum Industry Bill (PIB), 
which seeks to incorporate and update 16 different laws that regulate 
the sector. However, international oil companies operating in Nigeria 
have expressed concern that this latest version of the PIB would boost 
GON royalty and tax revenues to a level that makes new investment 
unprofitable. In contrast, the GON has argued that the PIB reflects 
current internationally-accepted industry contract standards.
    In April 2010, Nigeria signed into law the Nigerian Oil and Gas 
Industry Content Development Act, which we refer to as the local 
content law. Commerce in collaboration with the USG interagency has 
worked to encourage Nigeria to ensure that it is in compliance with 
their World Trade Organization (WTO) obligations. The law was designed 
to encourage Nigerian participation in the oil and gas industry. The 
Government of Nigeria (GON) estimates that $8 billion is spent annually 
in the country's petroleum industry and approximately five percent is 
retained in Nigeria. The local content law's stated purpose is to 
include more Nigerians in this sector and increase significantly 
economic links to the Nigerian private sector. To accomplish this, the 
local content law includes provisions regarding Nigerian content (goods 
and services), operations and transactions in the petroleum industry 
and the functions of the Nigerian Content Division (NCD), and the 
Nigerian National Petroleum Corporation (NNPC).
    Over the next two to three years, U.S. exporters of power 
generation, transmission and distribution equipment, and services will 
have significant trade opportunities in Nigeria. The GON recently 
announced that Nigeria requires more than $3.5 billion to improve its 
power generation, transmission, and distribution capacity from less 
than 5000 MW to 20,000 MW by 2016. U.S. exporters of electrical 
components and parts have growth opportunities here as well.
    In 2013, the Nigerian government completed the privatization of 11 
electricity distribution and six generation companies, with a total 
value of $2.6 billion. Investment in distribution assets will be 
required to address major issues facing the newly-privatized utilities, 
including reducing technical, commercial, and collection losses from a 
current estimated of 40% down to 10-15%. Near-term opportunities in 
Nigeria's distribution sector exist for providers of basic 
infrastructure equipment, services, and monitoring; metering, billing 
and collection software, systems, and solutions; and utility IT 
systems. Over the medium-term, the distribution utilities are also 
looking to deploy GIS and SCADA systems for the mapping, monitoring and 
control of their networks, as well smart grid technologies and 
applications like Distribution Automation, Demand Side Management, and 
Outage Management Systems.
    Nigeria is also one of the most promising export markets for 
ethanol. Nigeria has a policy of blending 10 percent ethanol with 
gasoline; it is not however a mandate. The Organization for Economic 
and Cooperation Development estimates that consumption of ethanol in 
Nigeria will increase about 25 percent from 2013 to 2015. As Africa's 
largest oil producer, Nigeria is in good position logistically to 
export blended gasoline or even pure ethanol to other countries in 
Africa, many of whom have ethanol blending mandates. Trade data 
indicates that Nigeria exported $4.3 million in ethanol in 2012, 
including a large amount to Ghana. In recent years, Chinese investment 
in the Nigerian biofuels industry (ethanol and biodiesel) has soared.
    According to Nigeria's National Bureau of Statistics (NBS), imports 
from Asia accounted for 41% of Nigeria's imports in 2012, while imports 
from Europe and America accounted for 26.5% and 25.3% respectively. NBS 
reports that imports are dominated by machinery, transport equipment, 
manufactured goods, and commodities.
    Domestic currency commercial lending interest rates remain very 
high (ranging from 20 to 35 percent), despite Government efforts to 
lower them. This is fueling demand for U.S. Ex-Im Bank's financing and 
credit facilities by Nigerian importers. As of December 2012, Ex-Im 
Bank's credit exposure in Nigeria exceeded $178 million.
    The official exchange rate of the Naira to the dollar currently 
fluctuates between 155 and 160 (2012 average exchange rate N156.8:$1).

Mission Goals

    This mission will demonstrate the United States' commitment to a 
sustained economic partnership in West Africa. The mission's purpose is 
to

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support the business development goals of U.S. energy firms as they 
construct a firm foundation for future business in West Africa and 
specifically aims to:
     Assist in identifying potential partners and strategies 
for U.S. companies to gain access to each market for energy and power 
generation products and services.
     Confirm U.S. Government support for the activities of U.S. 
businesses in each market and to provide access to senior decision 
makers in the Ghanaian and Nigerian governments.
     Listen to the needs, suggestions and experience of 
individual participants to help shape appropriate U.S. Government 
positions regarding U.S. business interests in the region.
     Organize private and focused events with local business 
and association leaders capable of becoming partners and clients of 
U.S. firms as they develop their business in the region.
     Assist development of competitive strategies and market 
access with high level information gathering from private and public-
sector leaders.

Mission Scenario

    The mission will stop in Accra, Ghana and Lagos and Abuja, Nigeria. 
In each country, participants will meet with pre-screened potential 
agents, distributors, and representatives, as well as other business 
partners and government officials. They will also attend market 
briefings by U.S. Embassy officials, as well as networking events 
offering further opportunities to speak with local business and 
industry decision-makers.

Proposed Time Table

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Sunday, May 18..........................  Accra, Ghana...............  Business development mission Orientation.
                                                                       U.S. Government Trade Finance Briefing.
                                                                       Commercial Opportunity Overview.
                                                                       Country Team Briefing.
                                                                       Welcome Dinner.
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Monday, May 19..........................  Accra, Ghana...............  Industry Briefings/Roundtable
                                                                        Discussions.
                                                                       One-on-One Business Appointments.
                                                                       Public Speech.
                                                                       Networking Reception.
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Tuesday, May 20.........................  Accra, Ghana...............  Industry Briefings/Roundtable
                                                                        Discussions.
                                                                       One-on-One Business Appointments.
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Wednesday, May 21.......................  Lagos, Nigeria.............  Travel to Lagos, Nigeria.
                                                                       Commercial Opportunity Overview.
                                                                       Country Team Briefing.
                                                                       Government Meetings.
                                                                       One-on-One Business Appointments.
                                                                       Networking Reception.
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Thursday, May 22........................  Lagos, Nigeria.............  Government Meetings.
                                                                       One-on-One Business Appointments.
                                                                       Public Speech.
                                          Abuja, Nigeria.............  Travel to Abuja, Nigeria.
                                                                       Networking Reception.
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Friday, May 23..........................  Abuja, Nigeria.............  Government Meetings.
                                                                       One-on-One Business Appointments.
                                                                       Public Speech.
                                                                       Wrap-up Discussion.
                                                                       Closing Dinner.
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Participation Requirements

    All parties interested in participating in the Secretarial Energy 
Business Development Mission to West Africa must complete and submit an 
application package for consideration by the Department of Commerce. 
All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. 
Approximately 20-25 companies will be selected to participate in the 
mission from the applicant pool. U.S. companies doing business in Ghana 
and Nigeria, as well as U.S. companies seeking to enter these markets 
for the first time may apply.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The fee schedule for each mission is below:
     $11,000 for large firms
     $9,000 for a small or medium-sized enterprises (SMEs) \1\
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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/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 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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     $2,750 each additional firm representative (large firm or 
SME)
    Expenses for travel, lodging, most meals, and incidentals will be 
the responsibility of each mission participant.

Conditions of 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 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

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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% U.S. content. In 
cases where the U.S. content does not exceed 50%, especially where the 
applicant intends to pursue investment and major project opportunities, 
the following factors, may be considered in determining whether the 
applicant's participation in the business development mission is in the 
U.S. national interest:
    [cir] U.S. materials and equipment content;
    [cir] U.S. labor content;
    [cir] Repatriation of profits to the U.S. economy;
    [cir] Potential for follow-on business that would benefit the U.S. 
economy;
     Certify that the export of the products and services that 
it wishes to export through the mission would be in compliance with 
U.S. export controls and regulations;
     Certify that it has identified to the Department of 
Commerce for its evaluation any business pending before the Department 
of Commerce that may present the appearance of a conflict of interest;
     Certify that it has identified any pending litigation 
(including any administrative proceedings) to which it is a party that 
involves the Department of Commerce; and
     Sign and submit an agreement that it and its affiliates 
(1) have not and will not engage in the bribery of foreign officials in 
connection with a company's/participant's involvement in this mission, 
and (2) maintain and enforce a policy that prohibits the bribery of 
foreign officials.

Selection Criteria for Participation

    Selection will be based on the following criteria, listed in 
decreasing order of importance:
     Suitability of a company's products or services to the 
target markets and the likelihood of a participating company's 
increased exports or business interests in the target markets as a 
result of this mission;
     Consistency of company's products or services with the 
scope and desired outcome of the mission's goals;
     Demonstrated export experience in the target markets and/
or other foreign markets;
     Current or pending major project participation; and
     Rank/seniority of the designated company representative.
    Additional factors, such as diversity of company size, type, 
location, and demographics, may also be considered during the review 
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 not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register (http://www.gpoaccess.gov/fr), posting on ITA's business development mission 
calendar (http://export.gov/trademissions) and other Internet Web 
sites, press releases to general and trade media, direct mail, 
broadcast fax, notices by industry trade associations and other 
multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows.
    Recruitment will begin immediately and conclude no later than March 
14, 2014. Applications can be completed on-line at the Africa Energy 
Mission Web site at http://www.export.gov/AfricaEnergyMission2014 or 
can be obtained by contacting the U.S. Department of Commerce Office of 
Business Liaison (202-482-1360 or [email protected]).
    The application deadline is Friday, March 14, 2014. Completed 
applications should be submitted to the Office of Business Liaison. 
Applications received after Friday, March 14, 2014, will be considered 
only if space and scheduling constraints permit.

How To Apply

    Applications can be downloaded from the business development 
mission Web site (http://export.gov/AfricaEnergyMission2014) or can be 
obtained by contacting the Office of Business Liaison (see below). 
Completed applications should be submitted to the Office of Business 
Liaison at (email: [email protected] or fax: 202-482-4054).

Contacts

    General Information and Applications: The Office of Business 
Liaison, 1401 Constitution Avenue NW., Room 5062, Washington, DC 20230, 
Tel: 202-482-1360, Fax: 202-482-4054, Email: [email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2014-01521 Filed 1-27-14; 8:45 am]
BILLING CODE 3510-DR-P