VZCZCXRO8902
PP RUEHTRO
DE RUEHAS #0220/01 0581701
ZNR UUUUU ZZH
P 271701Z FEB 08
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC PRIORITY 5323
INFO RUEHEG/AMEMBASSY CAIRO 1005
RUEHFR/AMEMBASSY PARIS 2571
RUEHMD/AMEMBASSY MADRID 8822
RUEHRB/AMEMBASSY RABAT 2193
RUEHTU/AMEMBASSY TUNIS 7044
RUEHTRO/AMEMBASSY TRIPOLI
RUEHNK/AMEMBASSY NOUAKCHOTT 6242
RUEHNM/AMEMBASSY NIAMEY 1485
RUEHBP/AMEMBASSY BAMAKO 0434
RUEHCL/AMCONSUL CASABLANCA 3276
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 ALGIERS 000220 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB/CBA (WINSTEAD) AND NEA/MAG (FLOWERS) 
COMMERCE FOR NATE MASON 
 
E.O. 12958: N/A 
TAGS: ECON BEXP KIPR ETRD AG
SUBJECT: ALGERIA FY 08 BFIF PROPOSAL 
 
¶1. SUMMARY AND JUSTIFICATION: Embassy Algiers submits the 
following request for FY 08 Business Facilitation Incentive 
Funds (BFIF) in support of commercial outreach outside of 
Algiers.  The U.S.-Algeria commercial relationship has grown 
dramatically over the past 3 years -- from USD 11.5 billion 
in 2005 to approximately USD 20 billion in 2007 -- but 
remains focused on energy sector investments.  There is great 
potential for U.S. business in non-energy sectors and also 
outside of the capital.  In 2008, we would like to make four 
outreach trips: to south-central Algeria (Hassi Messaoud, 
Gassi Touil, In Salah); the east (Skikda, Annaba, El Tarf); 
the central-east (Bejaia, Djijel, Constantine); and the west 
(Mostaganem, Oran, Tlemcen, Sidi Bel Abbes).  We estimate the 
total cost of all four trips will be USD 11,500.  These 
outreach trips will not only allow us to visit American 
companies located outside of Algiers, but also to meet with 
local chambers of commerce, importers' associations, business 
councils, private industrial zones, and public and private 
Algerian companies who could partner with American companies 
and exporters.  Regular (i.e., at least once every two years) 
outreach trips are critical to maintain our network of 
contacts, as well as to develop new contacts.  Additional 
security in the form of Embassy bodyguard support, which will 
be mandated for most of these trips, increases the cost of 
the trips substantially.  This BFIF support will enable us to 
supplement our reduced FY08 travel budget and compensate for 
cuts in the FCS travel budget mandated by the Department of 
Commerce.  END SUMMARY AND JUSTIFICATION. 
 
SOUTH-CENTRAL OUTREACH: HASSI MESSAOUD, GASSI TOUIL, IN SALAH 
--------------------------------------------- ---------------- 
 
¶2. Program Description: Econoff and Commercial Specialist 
would travel to the oil and gas center of Algeria, Hassi 
Messaoud, for commercial outreach.  Hassi is the site of a 
large percentage of U.S. investment in Algeria and the center 
of numerous opportunities in both sectors.  Nearly all 
outbound oil and gas pipelines traverse the city, where 
primary product quantities are measured and secondary 
products are refined.  The passage of hydrocarbons reform 
legislation in spring 2005 has encouraged the GOA to seek 
partners to help Algeria extract resources from the ground 
efficiently and quickly, while energy prices remain high. 
The GOA has explicitly declared its interest in seeking 
additional U.S. service-firm partners to complement the 
approximately 50 U.S. service firms already operating in 
country.  Hassi is home to the offices of most oil and gas 
producer as well as service firms.  Hassi also holds 
potential for U.S. firms in a variety of sectors, including 
oil and gas field services, construction, and corporate 
services (catering, housing, etc.).  FCS has not previously 
conducted outreach to Hassi Messaoud, Gassi Touil, or In 
Salah. 
 
Main sites to be visited would include: 
 
-- Hassi Messaoud 
-- Hassi Berkine (various company base camps) 
-- Gassi Touil 
-- In Salah 
 
Duration: 3 to 4 days 
Estimated Budget: USD 2,000 
 
EASTERN OUTREACH: SKIKDA, ANNABA, EL TARF 
---------------------------------------- 
 
¶3. Project Description: Econoff and Commercial Specialist 
would travel to Skikda, Annaba and El Tarf, areas which have 
not been visited in two years.  Skikda is the site of a major 
oil refinery currently being built by Kellogg, Brown and Root 
(KBR).  Annaba and El Tarf are major centers for heavy 
industry, particularly by state-owned companies.  As the GOA 
begins to privatize these state-owned industrial companies, 
there is great potential for U.S. companies to invest. 
Annaba and El Tarf also represent a potential destination for 
U.S. exports. 
 
Main sites to be visited include: 
 
ALGIERS 00000220  002 OF 002 
 
 
 
-- Port of Skikda and the petroleum industrial zone 
-- Annaba Chamber of Commerce and industrial zone 
-- El Tarf Chamber of Commerce and industrial zone 
 
Duration: 3 to 4 days 
Estimated Budget: USD 3,000 
 
CENTRAL EASTERN OUTREACH: BEJAIA, DJIJEL, CONSTANTINE 
--------------------------------------------- ------ 
 
¶4. Project Description: Econoff and Commercial Specialist 
would travel to the cities of Bejaia, Jijel and Constantine 
in north-central and northeastern Algeria.  Bejaia is the 
center of agribusiness in the country.  The region holds 
potential for U.S. investment and exports in plastics and 
light industrial manufacturing equipment.  Bejaia is also 
home to Algeria's most dynamic Chamber of Commerce and the 
third-largest port in the country in terms of container 
traffic volume.  Djijel has promise for the tourism industry 
and houses a well-known industrial zone in the port of 
Djendjen.  This port was originally designed as a free trade 
zone, but after Algeria began working towards WTO accession, 
the GOA declared Djendjen to be an industrial zone. 
Constantine has promise in the construction, public works and 
healthcare sectors, as well as in equipment and educational 
supplies. 
 
Main sites to be visited include: 
 
-- Port of Bejaia and the industrial zone of Akbou 
-- Cevital, Danone Djordjura, Ifri, Candia, and Soummam 
agribusiness industries (potential partners, consumers and 
distributors of U.S. products) 
-- Bejaia Chamber of Commerce 
-- Soummam Chamber of Commerce 
-- Port of Djendjen and the industrial zone 
-- Constantine Chamber of Commerce and industrial zone 
 
Duration: 3 to 4 days 
Estimated Budget: USD 3,000 
 
WESTERN OUTREACH: MOSTAGANEM, ORAN, TLEMCEN, SIDI BEL ABBES 
--------------------------------------------- -------------- 
 
¶5. Project Description: Econoff and Commercial Specialist 
would travel to the western cities of Mostaganem, Oran, 
Tlemcen, and Sidi Bel Abbes.  The region is a major hub for 
Algerian private companies, which continue to be primarily 
oriented towards Europe.  Several of these companies have 
told FCS that they are interested in developing ties with the 
U.S.  This trip presents an opportunity to explore best 
prospects for U.S. business.  Potential sectors for U.S. 
business include tourism, agribusiness, construction, 
healthcare/medical equipment and ICT. 
 
Main sites to be visited include: 
 
-- Port of Mostaganem and industrial zone 
-- Port of Oran, New Hospital of Oran, industrial zone of 
Oran, Tapis d'Or (major private Algerian company), Forum des 
Chefs d'Entreprises (FCE), Telecom Institute, Hyproc 
(Sonatrach tanker company) 
-- Energy Port of Arzew 
-- Port of Ghazaouet 
-- Tlemcen Chamber of Commerce and Le Rouet (private Algerian 
textile company) 
-- Sidi Belabbes Chamber of Commerce and Djillali Liabes 
University 
 
Duration:3 to 4 days 
Estimated Budget: USD 3,500 
 
¶6. Embassy Points of Contact are Economic and Commercial 
Officer Jeff Mazur (E-mail: MazurJ@state.gov, Office: 
213-0770-082-209) and Commercial Specialist Faiza Gamoura 
(E-mail: GamouraF@state.gov, Office: 213-0770-082-274). 
FORD