VZCZCXRO8414
PP RUEHBW
DE RUEHIT #0263/01 1410746
ZNR UUUUU ZZH
P 200746Z MAY 08 ZDS
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8168
INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 7688
RUEHTH/AMEMBASSY ATHENS PRIORITY 0861
RUEHKB/AMEMBASSY BAKU PRIORITY 0029
RUEHBW/AMEMBASSY BELGRADE PRIORITY 0002
RUEHBM/AMEMBASSY BUCHAREST PRIORITY 0156
RUEHCH/AMEMBASSY CHISINAU PRIORITY 0058
RUEHKV/AMEMBASSY KYIV PRIORITY 0018
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0394
RUEHSF/AMEMBASSY SOFIA PRIORITY 0321
RUEHSI/AMEMBASSY TBILISI PRIORITY 0153
RUEHTI/AMEMBASSY TIRANA PRIORITY 0081
RUEHYE/AMEMBASSY YEREVAN PRIORITY 0093
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS SECTION 01 OF 02 ISTANBUL 000263 
 
C O R R E C T E D COPY - ADDING SENSITIVE CAPTION 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECIN PREL TU
SUBJECT: UNDP SEEKS U.S. SUPPORT FOR BSEC PROJECTS 
 
REF: A. ISTANBUL 105 
     ¶B. 07 ISTANBUL 892 
     ¶C. 07 ISTANBUL 854 
 
ISTANBUL 00000263  001.2 OF 002 
 
 
¶1. (SBU) Summary.  UNDP Business Development Advisor Lovita 
Ramguttee is seeking USG support for UNDP's on-going business 
development work with the organization for Black Sea Economic 
Cooperation (BSEC) as well as for possible future 
initiatives.  She provided background information on UNDP's 
on-going work with BSEC as well as new initiatives. 
Ramguttee, who is based in BSEC headquarters, stressed the 
particular need to engage in capacity building efforts with 
the BSEC Permanent International Staff (PERMIS) as a 
foundation for engaging in projects with the institution 
itself.   She also proposed cooperating on a renewable energy 
symposium similar to the environmental protection symposium 
the USG and BSEC organized in 2007.  End Summary 
 
UNDP-BSEC Agreement on Cooperation 
---------------------------------- 
 
¶2. (U)  Istanbul-based UNDP Black Sea Trade and Investment 
Promotion Program Liaison Officer Lovita Ramguttee explained 
the formal BSEC-UNDP relationship began in 2007 when UNDP 
Administrator Kemal Dervis and the BSEC Secretary General 
signed an Agreement on Cooperation between UNDP and BSEC. 
Although Ramguttee described the content and focus of the 
agreement as "very general," she noted certain areas were 
highlighted in the agreement as areas of particular interest 
for potential projects to be promoted and implemented jointly 
within the Agreement framework.  The areas include:  poverty 
reduction, regional integration, capacity building, good 
governance, gender equality, crisis prevention and recovery, 
information & communication technology for development, 
energy and environment as well as the catchall category other 
areas of mutual interest.  According to Ramguttee, UNDP is 
present in all 12 BSEC member states and is currently 
exploring with BSEC further opportunities for regional 
projects in the thematic 
 areas cited above.  She highlighted UNDP Assistant 
Administrator Kori Udovicki's statement during the April 
Council of Foreign Ministers meeting in Kyiv describing the 
six priority areas in UNDP's strategy for the Black Sea 
region:  private sector development, environment, institution 
strengthening, trade integration, forging partnerships and 
cultural heritage. 
 
Black Sea Trade and Investment Promotion Program (BSTIP) 
--------------------------------------------- ---------- 
 
¶3.  (U)  The Black Sea Trade and Investment Promotion Program 
(BSTIP) is a joint initiative co-financed by the Governments 
of Turkey and Greece, BSEC and UNDP Ramguttee explained.  The 
BSTIP program is funded for three years (2007 - 2009) with a 
total budget of 1,250,000 euros and covers all 12 BSEC member 
states.  UNDP has a BSTIP program management office in Athens 
as well as a liaison unit located at the BSEC headquarters in 
Istanbul.  The program aims to expand intra-regional trade 
and build investment links in the region.  The target 
beneficiaries are small and medium enterprises (SMEs), with a 
focus on those run by women and your entrepreneurs.  The 
program is also designed to provide capacity building for 
sub-regional/national business support organizations which 
are essential partners in the implementation of the program. 
 
¶4.  (U) The BSTIP program includes a series of trade and 
investment partnership fora focusing on products and services 
for which there is potential intra-regional trade and 
attractive investment opportunities.  The first partnership 
forum, focusing on the packaging sector (Black Sea Pack), 
will be hosted in Istanbul by the Istanbul Chamber of 
Commerce on June 18-19.   This event will bring together SMEs 
from the packaging sector from all 12 BSEC member states. 
Future seminars on topics including WTO implications and 
requirements to access EU markets for specific products are 
in the planning stages. 
 
¶5. (SBU)  According to Ramguttee UNDP would be delighted if 
the United States could financially assist the BSTIP program 
enabling UNDP to expand the scope of the activities (i.e. to 
 
ISTANBUL 00000263  002 OF 002 
 
 
additional product categories) as well as increasing the 
number of SMEs from the region able to participate. 
 
Future Initiatives / Proposals 
----------------------------- 
 
¶6.  (SBU) Ramguttee is currently working on two proposals she 
hopes outside donors such as the USG would be able to 
support.  The first is a project that would strengthen the 
BSEC project development fund (PDF) mechanism; the second is 
a project on renewable energy. 
 
¶7.  (SBU) As noted in previous reporting, the BSEC PDF is 
woefully underfunded and not terribly effective (see ref A 
for details.)  The project Ramguttee envisions would include 
a training seminar on project management, technical 
assistance for the management and operations of the PDF, 
promotion of the PDF through a donor meeting, 
professionalizing the PDF website, etc and training on 
resource mobilization.  Resource mobilization training could 
be particularly useful as BSEC is now eligible for official 
development assistance from OECD DAC members (ref B). 
 
¶8.  (SBU) The renewable energy project appears to be similar 
in audience and scope to the symposium on environmental 
protection for economic development jointly carried out by 
the USG and BSEC in 2007 (ref C).  The goal of this project 
would be to raise awareness of alternative sources of energy 
in BSEC countries as well as to provide a forum for the 
sharing of best practices on renewable energy. 
 
Action Request 
------------- 
 
¶9. (SBU) Throughout our conversation with Ramguttee we 
underscored our inability to make any sort of commitment on 
behalf of the USG.  Ramguttee was well aware of these 
constraints but asked that we refer her suggestions to 
Washington for comment and consideration.  Istanbul requests 
guidance on how to respond to UNDP's overture regarding 
cooperation with the existing BSTIP program.  If Washington 
is interested Istanbul could attend all or part of the June 
18-19 Black Sea Pack forum and report observations regarding 
the seminar itself as well as the experience of the Istanbul 
Chamber of Commerce with which we have a close working 
relationship.  We also request guidance concerning possible 
future cooperation with on the two projects briefly outlined 
in paras 7 and 8. 
OUDKIRK